Grand Terrace City Council
May 13, 2025

ARTICLE 9. MISCELLANEOUS PROVISIONS

9. 1 Notices.

Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer ( with her/ his name and City title), City of Grand Terrace, 22795 Barton Rd, Grand Terrace, CA 92313, and in the case of the Consultant, to the person( s) at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

9. 2 Interpretation.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

9. 3 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall, constitute one and the same instrument.

9. 4 Integration; Amendment.

This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Consultant and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

9. 5 Severability.

In the event that any one or more ofthe phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent ofthe parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 01247. 0001/ 635149. 3
17-
ted.7.9 Attorney'sFees. If either party to
this Agreement is required to
initiate or defend or made aparty toany action or proceeding in any way connected with this Agreement, the prevailing party insuch action or proceeding, inaddition toany other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney' s fees. Attorney' sfees shall include attorney'sfees on any appeal, and in addition aparty entitled to attorney' s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs 01247.0001/635149.315-tend tosuch use, reuse or assignment. Consultant may
retain copies of such documents for its
own use. Consultant 01247. 0001/ 635149. 3 12-nce provided to the additional insured to the additional insured still is
excess
over valid shall be limited to the
limits of liability required and collectible other insurance, whether primary, by that "written contract requiring insurance". excess, contingent oron any other basis, that is This endorsement does not increase the
available tothe additional insured when that limits of insurance

9. 6 Warranty & Representation of Non- Collusion.

No official, officer, or employee ofCity has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which ( s) he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which ( s) he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of financial interest" shall be consistent with State law and shall not include interests found to be remote" or" noninterests" pursuant to Government Code Sections 1091 or 1091. 5.

Nor shall any such officer or employee participate in any decision relating to the Agreement which affects her/ his financial interest or the financial interest of any corporation, partnership or association in which ( s) he is, directly or indirectly, interested, in violation of any State statute or regulation, including but not limited to the Political Reform Act( Government Code Sections 81000, et seq.)
Consultant warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Consultant further warrants and represents that ( s) he/ it has not engaged in any act( s), omission( s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Consultant is aware of and understands that any such act( s), omission( s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.

Consultant' s Authorized Initials I

9. 7 Corporate Authority.

The persons executing this Agreement on behalf of the parties hereto warrant that( i) such party is duly organized and existing, ( ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, ( iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and ( iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties.

SIGNATURES ON FOLLOWING PAGE]
01247. 0001/ 635149. 3
18-
17-ted.7.9 Attorney's
Fees. If either party to
this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, theprevailing party insuch action or proceeding, inaddition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney'sfees. Attorney'sfees shall include attorney' sfees onany appeal, and in addition a party entitled toattorney' sfees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs 01247. 0001/635149.3 15-tend tosuch
use,
reuse or assignment. Consultant may retain copies
of such documents for its own use. Consultant 01247. 0001/635149. 3 12-nce provided to the additional insured to
the
additional insured still is excess over valid
shall be limited to the limits of liability required and collectible other insurance, whether primary, by that " written contract requiring insurance". excess, contingent or on any other basis, that isThis
endorsement does not increase the available tothe additional insured

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.

CITY:

City of Grand Terrace, a municipal
corporation
Dark e, Mayor
A ST:
e ra Thomas, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYN , LLP
Adrian R. Guerra, City Attorney
CONSULTANT:

HdL Com allies., a California corporation
By:

Name: Andrew Nickerson
Title: President/ CEO
HdL Co ies., a California corporation
By:

Name: Richard Park
Title: Chief Financial Officer
Address: 120 S. State College Blvd., Ste 200
Brea, CA 92821
Phone: 714- 879- 5000
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT' S SIGNATURES

SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS

MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT' S BUSINESS ENTITY. 01247. 0001/ 635149. 3 19
official,
officer, or employee,
any money, consideration, or
other thing
of value as a
result or
consequence
of obtaining
or being
awarded any agreement. Consultant further
warrants
and represents that (
s)he/
ithas not engaged inany act( s),omission( s), or other
conduct or collusion that would result in
the payment of any
money, consideration,
or
other thing of
value to any third
party
including, but not limited to, any City
official, officer,
or employee, asa result of

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

STATE OF CALIFORNIA

COUNTY OF
On 2020 before me, personally appeared proved to me on the basis of satisfactory evidence to be the person( s) whose names( s) is/ are subs rued to the within instrument and acknowledged to me that he/ she/they executed the same in his/ her/ their . uthorized capacity( ies), and that by his/ her/ their signature( s) on the instrument the person( s), or the entity . son behalf of which the person( s) acted, executed the instrument.

I
certify under PENALTY OF PERJURY under the la th : ate of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: 44

OPTIONAL
Though the data below is not r, quired by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattach •- nt of this form.

CAPACITY ' LAMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CO ORATE OFFICER

TITLE OR TYPE OF DOCUMENT

TITLE( S)

PARTNER( S) LIMITED

GENERAL NUMBER OF PAGES

ATTORNEY- IN- FACT

TRUSTEE( S)

GUARDIAN/ CONSERVATOR

OTHER DATE OF DOCUMENT
SIGNER IS REPRESENTING:

NAME OF PERSON( S) OR ENTITY( IES)) SIGNER( S) OTHER THAN NAMED ABOVE 01247. 0001/ 635149. 3
n
the
payment of any money, consideration, or
other thing
of value
to any third party

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

State of Capmia
County of / ra
On rZo before me, M• - POOVC/
inse name and title of th officer)
personally appeared nieviwNuaystyL.,
who proved to me on the basis of satisfactory evidence to be the perso hose nam is is ar subscri•- d to the within instrume and acknowledged to,,,,•- that he/sh= r executed the same in his/ he +0: authorized capacity ' es , and that by his/ he iiDr ignatur- s)on the instrument the perso Iv or the entity upon beha of which the person*. cted, executed the instrument.

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

WITNESS my hand and official seal. Aak <; M. R. SHAW
COMM.# 2151169
NOTARY PUBLIC• CAUFORNIA 1 r•olrJ• ORANGE COUs n1f
My Comm. BOOS May 78, 2020
Signatur Seal)

INDIVIDUAL CO

ORATE OFFICER TITLE OR TYPE OF DOCUMENT TITLE(
S)

PARTNER( S) LIMITED
GENERAL NUMBER OF PAGES ATTORNEYIN-FACT

TRUSTEE( S) GUARDIAN/

CONSERVATOR OTHER DATE OF

DOCUMENT SIGNER IS
REPRESENTING: NAME

OF PERSON(

S) OR ENTITY( IES))

SIGNER( S)OTHER
THAN NAMED ABOVE 01247. 0001/ 635149. 3
n the payment of any money,
consideration, or other thing
of
value
to any third party including, but
not limited
to, any
City official, officer, or

EXHIBIT " A"

SCOPE OF SERVICES
I. Objectives and Methods:

The Services performed by Consultant shall include the following:

A. Tax Administration. Consultant will provide the City with a complete turn- key Tax Administration program related to the City' s business license processing, renewals, collections, and on-going monitoring and administration of the business license tax pursuant the Grand Terrace Municipal Code . The service will be performed utilizing Consultant' s internal programs and processes for compliance and revenue collection.

Consultant will transfer the City' s existing databases as they relate to business license tax into Consultant' s internal administration tools. Consultant will maintain the data and provide access to or copies of data or reports at the City's request. While access to online systems will be available for the City to use at its discretion, the City will not be required to use or maintain any software in house for managing the business license registry.

The following are processes and procedures that Consultant will perform for the City on a turn- key Tax Administration approach:

1. On-line Application: Consultant will provide a link for the City' s website that will enable all businesses to apply for, or renewing, a business license and pay such businesses' business tax on- line through Consultant' s software application.

2. Renewal Processing: Consultant will send active business license accounts a renewal notice within 45 days of the renewal period ending. Consultant will send individualized tax forms to all known active business license accounts. Consultant will ensure that all active business license accounts receive all applicable forms necessary to complete the renewal process. Consultant will process any renewal applications and forms submitted by active business license accounts in a timely fashion.

3. New Account Processing: Consultant will process any new business license applications and complete the new account registration process in a timely fashion.

Consultant will also facilitate intra-city departmental approvals such as zoning, code compliance, fire inspection, and other regulatory related functions.

4. Delinquent Account Processing: Consultant will endeavor to collect delinquent accounts through a series of City approved processing methods. This will include a minimum of two follow up delinquent notices and up to two telephone calls.

Delinquent accounts will be collected with full penalties as allowed by the Grand Terrace Municipal Code or through current City practices. Accounts that remain delinquent will be processed through the City approved processes established in Consultant' s collections component of the Compliance Management Program. 01247 0001/ 635149. 3
o initiate or defend or
made aparty to any action or proceeding inany way connected with this Agreement, the prevailing party in such action or proceeding, inaddition toany other relief which maybe granted,
whether legal or equitable,
shall
beentitled to reasonable attorney's
fees. Attorney' sfees shall
include attorney'sfees on any appeal, and in addition a party entitled to attorney' sfees shall beentitled toall other reasonable costs forinvestigating such action, taking depositions and discovery and all other necessary costs 01247. 0001/ 635149. 315-tend to such use,reuse or assignment.

Consultant may retain copies ofsuch documents for its own use. Consultant 01247.0001/635149. 312-nce provided to the additional insured to the additional insured still is excess over valid shall be limited to the limitsofliability required and collectible other insurance, whether primary, by that "written contract requiring insurance". excess,
contingent
oron any other basis, that is
This endorsement does not increase the available to the additional insured when that limits of insurance described in Section III —
person
or organization is an additional insured Limits
Of Insurance. under any other insurance. CG D3 81 09 15 2015 The Travelers Indemnity Company All rights reserved. Page 1of2 Includes the copyrighted material of Insurance Services Office,
Inc.,with its permission ACCORDANCE WITH THE POLICY PROVISIONS. Grand

5. On- line Filing & Payment Processing: Consultant will register a City approved internet domain name which will serve as the starting point for all on- line Services under this Agreement. This City specific site will be designed to look and feel like the City' s own web pages and ensures a level of continuity between the business community, the City, and Consultant. Taxpayer businesses can choose to file their new business registration as well as renew their license and make payments via Consultant' s on- line filing portal. In addition to filing and paying for taxes, businesses can obtain copies of applications, general support and FAQs, schedule appointments and request copies of their tax registration.

6. Payment Posting/ Processing: Consultant will process all payments received in an expedited manner. Taxpayer business accounts are posted with payment information captured in the Consultant' s revenue system. Additional information such as net sales, deductions, credit sales, measure of tax, name change, and address change are captured and added to payment data and taxpayer business master file (as determined necessary by Consultant). Late payments are invoiced at penalty amounts as required by City' s ordinances. Under- payments are invoiced for remaining tax due plus any required penalties.

License accounts will be updated daily with payment information and revenues to be disbursed to the City net applicable fees for the tax administration services at an interval to be agreed to during the project planning phase. Disbursements typically occur monthly but can be remitted as often as weekly depending on volumes and City needs. Consultant's payment acceptance process will accept the following payment types:
a. Check I Money Order/ Cashier's Check
b. E- Check
c. Debit Cards
d. Credit Cards ( Visa, Mastercard, Discover, & American Express) e. Check by Phone

7. Customer Service/ Business Support Center: Consultant will provide taxpayer businesses with multiple support options for registering, applying, renewing, making payments and for general inquiries. A toll-free number will be provided to taxpayer businesses in order to access Consultant' s license specialists Monday-Friday 8: 00am to 5: 00pm Pacific Standard Time. Taxpayer businesses will have access to support via, e- mail, fax, and via the Business Support Center On- Line. Consultant will continuously monitor quality control points to ensure courteous customer service, minimal hold times under 2 minutes, and the return of voice messages the same business day.

B. Compliance Management.

1. Establish Enriched Data Portfolio/Lead Identification: Utilizing data provided by the City, as well as the Consultant Enriched Data Portfolio ( EDP), Consultant will build an enhanced listing of entities subjected to licensure or taxation pursuant to the Grand 01247. 0001/ 635149. 3
gram.01247 0001/ 635149.3 o
initiate or defend or
made a party to
any
action or proceeding in any way
connected with this Agreement, the
prevailing party in such action or proceeding, inaddition toany other relief which may be granted, whether legal or equitable,shall be entitled toreasonable attorney'sfees. Attorney'sfees shall include attorney' sfees on any appeal, and inaddition a party entitled toattorney' s fees shall be entitled to allother reasonable costs forinvestigating such action, taking depositions and discovery and all other necessary costs 01247. 0001/ 635149.315- tend to such use, reuse or assignment. Consultant may retain copies of such documents for itsown use. Consultant 01247. 0001/ 635149.312- nce provided tothe
additional
insured tothe additional insured still is
excess over valid shall be limited to the limits ofliability required and collectible other insurance, whether primary, bythat "
written
contract requiring insurance". excess, contingent oron
any other basis, that is This endorsement does not increase the available to the additional insured when that limits of insurance described in Section III — person or organization is an additional
insured Limits Of Insurance. under any other insurance. CG D3

Terrace Municipal Code, including, but not limited to, those businesses physically located in the City, itinerant businesses, and entities participating in the sharing economy such as short- term rentals ( STRs), drive sharing services and others. These entities are electronically matched to the existing files ofthe City using advanced data matching algorithms, allowing Consultant staff to identify which entities are compliant and which entities require follow up.

2. Field Surveys: Consultants' field crews, equipped with the most advanced tools available ( mobile mapping/ GPS systems, tablet computers pre-loaded with various City and statewide databases, etc.) will canvass commercial areas of the City to develop and enhance the leads identified in the EDP. These Field Surveys will provide additional inventories of active businesses as well as to provide on- site verifications of data culled from other sources.

3. Exception Resolution: Consultant' s staff will review the City' s business license records and filter out records that may lead to erroneous contacts. This will allow for the discovery of additional revenues not otherwise identifiable through electronic means and assists in reducing potential complaints levied at City staff from pursuit of false positives.

4. Compliance Communication and Outreach: Upon exception resolution, Consultant staff will initiate contact with taxpayer businesses subject to Title 7 of the Grand Terrace Municipal Code through a series of City approved communication methods.

Consultant will make every effort to simplify the process for taxpayer businesses and utilizes a variety of mediums for communication including mail, telephone, email and web- site access. Potential non- compliant taxpayer businesses will be notified of their options to comply or dispute their non-compliant status. Initial notification packets will include what is needed to become compliant with multiple methods ofresolving their accounts.

5. Business Support Center: Consultant will provide a business support and service center where the business community can access Consultants' specialists during normal business hours. Businesses calling will experience minimal hold times under 2 minutes along with access to a variety of options which include filing support, payment options, resolution of specific tax issues and other services designed to reduce the burden of registering and filing taxes.

6. Business Support Center-Online: Businesses will have access to and be encouraged to take advantage of the range of services available on- line, 24 hours a day, seven days a week. Consultant' s on- line Business Support Center will enable businesses to choose to file their new business registration as well as make payments via Consultant' s on-line filing portal. In addition to filing and paying for taxes, businesses can obtain copies of applications, general support and FAQs, schedule appointments and request copies of their tax registration.

7. Document Submission/ Processing: Whether the taxpayer business chooses to respond by mail, email or our online filing website, Consultant will review each application submission for completion and accuracy prior to processing. Consultant 01247 0001/ 635149. 3
nd discovery and
all other necessary costs 01247. 0001/635149.315-tend to suchuse,reuse or assignment.

Consultant may retain copies of such documents for its own use. Consultant 01247. 0001/ 635149.3 12-nce provided to theadditional insured to the additional insured still isexcess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary, by that " written contract requiring insurance". excess, contingent or on any other basis, that is This endorsement does not increase the available to
the
additional insured when that limits of insurance
described in Section III — person or organization is an additional insured Limits Of Insurance. under any other insurance. CGD3
81 09 15 2015 The Travelers Indemnity Company
All rights reserved. Page 1 of 2 Includes the copyrighted material of Insurance Services Office, Inc.,with its permission ACCORDANCE WITH THE POLICY PROVISIONS. Grand Terrace, CA 92313 AUTHORIZED REPRRE4SgE NTATIVE
I41 ACORD 25(2016/ 03) 1988-2015 ACORD CORPORATION.

will request from the taxpayer business any additional documentation needed to complete the approval of a an application, such as a home occupation permit, or will forward an application to other City departments either as a pre-requisite or as a courtesy to the business. All submissions are filed and stored electronically and made available to the City via standard reporting processes or upon request.

8. Invoicing: Once an application is approved, Consultant will forward invoices to the taxpayer business business indicating detailed tax calculations and balances owed.

Taxpayer business businesses are provided the opportunity to pay their balances via mail, online, or over the phone services. Taxpayer business businesses will also have continued access to Consultant' s Business Support Center for any questions or disputes arising from the invoice process.

9. Registry Update: Upon collection of all requirements which may include payments, application and/ or other documentation, Consultant will prepare a Registry Update package to include payment as well as copies of all taxpayer business correspondence and other relevant information. Data in the City registry file stored in the Consultant Prime Software Suite is updated daily with packages from the Compliance Management Services. Once completed, the business will be processed through the standard processes approved through the Consultant Operations Management Component.

C. Audits.

1. Analysis & Selection: Audit candidates are selected using a variety of selection methodologies developed by Consultants' audit team. Preliminary analysis reports on each taxpayer business selected are shared with the City prior to moving through the audit phases.

2. Audit Notification & Scheduling: Taxpayer businesses selected by Consultant and approved by the City will be sent a letter notifying them of a scheduled Compliance Analysis Audit. Every effort is made to promote a positive experience for the taxpayer business. Consultant will provide a detailed description of the requirements and relevant documentation required for the audit to the taxpayer business at least two 2) weeks in advance of the proposed audit date. If the taxpayer business is unable meet the audit date selected by the City, Consultant will take all efforts to reschedule the audit to a more accommodating date. Taxpayer businesses are also afforded the opportunity to schedule flexible appointment times by contacting the Business Support Center or visiting Consultants' online support center.

3. Compliance Analysis & Audit: The Consultant audit team will audit the financial records of the taxpayer business to determine compliance with business tax regulations under the Grand Terrace Municipal Code. Consultant will validate taxing variables such as gross receipts and other relevant information for determining compliance. In addition to identifying underreporting issues, the Consultant Audit Program will also focus on other compliance related issues such as assuring correct 01247. 0001/ 635149. 3
support and FAQs, schedule appointments and request
copies of their tax registration. 7. Document Submission/ Processing: Whether the taxpayer business chooses torespond by mail, email or our online filing
website, Consultant will review
each application submission
for completion andaccuracy prior to processing. Consultant 01247 0001/635149.3nd discovery and all other necessary costs 01247. 0001/ 635149. 315-tend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247. 0001/635149. 3 12-nce provided to the additional insured to the additional insured still is excess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary, by that "written contract requiring insurance". excess, contingent or
on any other basis, that is This
endorsement does not increase the available to the additional insured when that limits of insurance described inSection III — person
or
organization is an additional insured Limits Of
Insurance. under any other insurance. CG D3 81 09 15 2015 The Travelers Indemnity Company All rights reserved. Page 1of 2 Includes the copyrighted material of Insurance Services Office,Inc.,
with its permission ACCORDANCE WITH THE POLICY PROVISIONS. Grand Terrace,

classifications, multiple location allocation, apportionment issues, and identifying business to business relationships that may create tax liability for 3rd parties.

4. Audit& Compliance Report: Upon completion of the audit and analysis, and prior to additional actions, Consultant will generate a compliance report and provide the report to the City. The report will indicate specific results of the review and recommended future actions. Documentation that substantiates the findings in the report will be included with the report to assist the City and Consultant in determining next step of the process.

5. Deficiency and Commendation Notification: Upon final review of the audit and analysis report, taxpayer businesses that are found to have deficiencies will be notified of the findings as well as the payment and appeal processes. Consultant will also work with taxpayer businesses found to be deficient to explain the current findings and educate taxpayer businesses on proper future filing procedures so as to prevent future errors and deficiencies. Consultant will send taxpayer businesses found to be in compliance a commendation letter thanking them for their compliance.

6. Invoicing & Collections: Consultant will invoice a taxpayer business found to be underreporting through the standard City approved collections process. Balances will be collected and remitted along with supporting documentation to the City through the approved remittance processes.

D. Network Uptime.

1. All on-line Services provided by Consultant shall have an uptime of at least 99%.

Consultant shall notify the City in writing of any network outage affecting Consultant' s ability to provide on-line Services within 24 hours of any such outage.

2. Consultant shall work to promptly restore any Services affected by a network outage and shall provide City with regular updates on the status of such restoration and as may be requested by City.

3. Consultant shall cooperate with City during network outages to ensure that members of the public are informed of such outage.

II. Deliverables
A. Consultant shall provide the City with audit progress reports to include the following:

1. Status of work in progress, including copies of reports provided to taxpayer businesses/ intermediaries addressing each reporting error/ omission individually, including where applicable the business name, address, telephone number, account identification number, individuals contacted, date( s) of contact, nature of business, reason( s) for error/ omission and recommended corrective procedure;

2. Actual revenue produced for the City by Consultant' s service on a monthly and 01247. 0001/ 635149. 3
other relevant information for determining compliance. In addition to identifying underreporting issues, the Consultant Audit Program will also focus on other compliance related issues such as assuring correct 01247. 0001/ 635149.3 support and FAQs, schedule appointments and request copies of their tax registration. 7. Document Submission/
Processing: Whether the taxpayer business chooses to
respond by mail, email or our online filing website, Consultant will review each application submission for completion and accuracy prior to processing. Consultant 01247 0001/ 635149. 3
nd discovery and
all other necessary costs 01247. 0001/635149.315-tend to suchuse,reuse or assignment.

Consultant may retain copies of such documents for its own use. Consultant 01247. 0001/ 635149.3 12-nce provided to theadditional insured to the additional insured still isexcess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary, by that " written contract requiring insurance". excess, contingent or on any other basis, that is This endorsement does not increase the available to
the
additional insured when that limits of insurance
described in Section III — person or organization is an additional insured Limits Of Insurance. under any other insurance. CGD3
81 09 15 2015 The Travelers Indemnity Company
All rights reserved. Page 1 of 2 Includes the copyrighted material of Insurance Services Office, Inc.,with its permission ACCORDANCE WITH THE POLICY PROVISIONS. Grand Terrace, CA 92313 AUTHORIZED REPRRE4SgE NTATIVE
I41 ACORD 25(2016/ 03) 1988-2015 ACORD CORPORATION.

cumulative basis;

3. Projected revenue forthcoming to the City as a result of Consultant' s audit service, specified according to source, timing, and one- time versus ongoing; and

4. Alphabetical listing of all errors/ omissions detected for the City by Consultant, including the account number, correction status, payment amount received by the City, period to which payment is related and payment type ( e. g., reallocation, deficiency assessment) for each one.

5. Another reports that the City may request from time to time.

B. Commencement of Services.

Consultant will commence project planning within 10 days of full execution of this Agreement. After the work plan is developed Consultant will begin providing the Discovery, Audit and Tax Administration services described above. Consultant' s obligation to provide services is contingent on the City providing the necessary information and cooperation.
01247. 0001/ 635149. 3
current findings and educate taxpayer
businesses on proper future filing
procedures so as to prevent future errors
and deficiencies. Consultant
will send
businesses found totaxpayer
be in compliance acommendation
letter thanking them for their compliance.

6. Invoicing &
Collections: Consultant
will invoice a taxpayer business found to be
underreporting
through the standard
City approved collections process. Balances
will be
collected and remitted
along with supporting documentation
to the City
through the
approved remittance
processes. D. Network Uptime.

1. Allonline Services provided by Consultant shall have an uptime ofat least 99%.

Consultant shall notify the
City
in
writing of any network outage affecting
Consultant' s
ability to
provide on- line Services

III. City Obligations
The City agrees to:

1. Provide an electronic copy of the City' s License Registration File and License Payment History file to Consultant, together with any other information available to the City for Consultant to compute Consultant' s billing for services, in electronic format, to Consultant during the term of the Agreement and thereafter for so long as Consultant' s right to invoice for services rendered continues;

2. Use reasonable and diligent efforts to collect, or to assist Consultant in the collection of, deficiencies identified by Consultant pursuant to this Agreement. For accounts that remain uncollected after Consultant has exhausted its efforts to collect through the standard process, Consultant and the City may mutually agree to special procedures that will make further attempts to collect amounts still outstanding. Typically, these processes will be implemented by Consultant; and

3. Notify Consultant within 10 days following receipt by the City of payments, if there is any, resulting from deficiencies identified by Consultant. Because Consultant' s Audit Services may result in collection of deficiencies after termination of the Agreement, the City' s obligation to collect fees and notify Consultant, and Consultant' s right to continue to receive contingency fees, shall survive termination of the Agreement for any reason.
01247. 0001/ 635149. 3 A- 1
the approved remittance processes.

D. Network Uptime.

1. All on-line Services provided by Consultant shall have an uptime of at least 99%. Consultant
shall
notify
the City in writing of any
network outage
affecting Consultant' sability to provide

EXHIBIT " B"

SPECIAL REQUIREMENTS
Superseding Contract Boilerplate)
I. Section 1. 10 is added to the Agreement as follows:

1. 10 Intellectual Property.
a. Consultant represents and warrants that it owns, maintains, and has obtained the rights to all intellectually property rights necessary for Consultant to provide Services under this Agreement. In the event that any party alleges that Consultant' s Services infringe upon such party' s intellectual property, Consultant shall indemnify, defend, and hold harmless the City, its officers, employees and agents Indemnified Parties") against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened ( herein claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with any allegation of intellectual property infringement.
b. Further, in the event that any party alleges that Consultant' s Services under this Agreement have infringed upon any intellectual property, the City may take any of the following actions: ( i) require Consultant, at its sole cost, to obtain the necessary intellectual property rights in order to provide Services under this Agreement; ( ii) require Consultant, at its sole cost, to provide City with the Services using an alternative intellectual property that is unaffected by the claim of intellectual property infringement; ( iii) obtain the Services from another consultant/ contractor and, in such event, require Consultant to pay for any increased costs; or ( iv) terminate this Agreement. The obligations imposed by this Section shall survive any expiration or termination of this Agreement and are in addition to any other obligation under this Agreement to indemnify, defend, hold harmless, or release from liability the City.

II. Section 4. 6 is added to the Agreement as follows:

4. 6 Cooperative Purchasing.
a. The parties intend that any other public agency shall have an option to procure identical services as set forth in this Agreement. As used in this Section, " public agency" means any city, county, district, public authority, public agency, municipality, or other political subdivision of the State of California located in the State of California. Consultant may offer this Agreement as a template for cooperative or piggybacking purchasing agreements with other public agencies.

The City shall have no responsibility, liability, or obligations, financial or otherwise, in connection with orders for services issued by any other public agency 01247. 0001/ 635149. 3 B- 1
ing compliance. In addition to identifying
underreporting issues, the Consultant Audit Program will also focus on other compliance related issues such as assuring correct 01247. 0001/ 635149. 3support and FAQs, schedule appointments
and request copies of their tax registration.

7. Document Submission/ Processing: Whether the taxpayer business chooses torespond by mail, emailor our online filing website, Consultant will review each application submission for completion
and accuracy prior
toprocessing. Consultant 01247 0001/635149.3nddiscovery and all other necessary costs 01247.0001/ 635149.315- tend to such use,reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247. 0001/ 635149. 3 12-nce provided tothe additional insured to the additional insured still is excess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary, by that "written contract requiring insurance". excess, contingent or on any other basis,
that
isThis endorsement does not increase the
available to the additional insured when that limits of insurance described in Section III — person or organization isanadditional
insured
Limits Of Insurance. under any other insurance.

CG D3 81 09 15 2015 The Travelers Indemnity Company All rights reserved. Page 1 of 2 Includes the copyrighted material of Insurance Services Office, Inc., with its permission

ACCORDANCE WITH
THE POLICY PROVISIONS. Grand Terrace, CA 92313 AUTHORIZED REPRRE4SgE NTATIVE

pursuant to this Section. Consultant shall be fully responsible to provide such services to such public agency. The participating public agency shall accept responsibility for securing services or making payments to the vendor. b. To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents against, and will hold and save them and each ofthem harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened( herein" claims or liabilities") that may be asserted or claimed by any person, public agency, firm or entity arising out of or in connection with this Section. The indemnification, defense, and hold harmless obligations imposed by this Section shall survive any expiration or termination of this Agreement and are in addition to any other obligation under this Agreement to indemnify, defend, and hold harmless the City.

III. Section 6. 5 is added to the Agreement as follows:

6. 5 Proprietary Information of Consultant.
a. As used in this Section, the term" proprietary information" means any information that relates to Consultant' s computer or data processing programs; data processing applications, routines, subroutines, techniques or systems; or business processes.

City shall hold in confidence and shall not disclose to any other party any of Consultant' s proprietary information in connection with this Agreement, or otherwise learned or obtained by City in connection with this Agreement, unless disclosure is required under federal or state law, including without limitation the Freedom of Information Act or the Public Records Request Act (" Disclosure Laws").
b. To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (" Indemnified Parties") against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened ( herein " claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with any disclosure by the City pursuant to the Disclosure Laws. Further, Consultant hereby releases the City from any liability to Consultant for any disclosures made by City pursuant to the Disclosure Laws and hereby waives any claims that Consultant may have against City relating to any disclosures made by City pursuant to the Disclosure Laws.
c. Consultant shall retain ownership and rights to all proprietary information. The obligations imposed by this Section shall survive any expiration or termination of this Agreement and are in addition to any other obligation under this Agreement to indemnify, defend, hold harmless, or release from liability the City. 01247. 0001/ 635149. 3 B- 2
ration.7. Document Submission/ Processing:

Whether the taxpayer business
chooses to respond
by mail, email or our online filing website, Consultant will review eachapplication submission for completion and accuracy prior toprocessing. Consultant 01247 0001/635149. 3 nd discovery and all other necessary costs 01247. 0001/635149.315-tend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247. 0001/ 635149. 3 12-nce provided to the additional insured to the additional insured still is excess over valid shall be limited tothe limits of liability required
and
collectible other insurance, whether primary, by that " written contract requiring insurance". excess, contingent or on any other basis, that is This endorsement does not increase theavailable
to
the additional insured when that limitsof
insurance described in Section III — person or organization isan additional insured Limits Of Insurance. under any other insurance. CG D3 81 09 15 2015 The Travelers Indemnity Company All rights
reserved. Page 1 of2 Includes the copyrighted material of

EXHIBIT " C"

SCHEDULE OF COMPENSATION
I. Tax Administration
Consultant' s compensation for providing the Tax Administration Services shall be:

A $15. 00 per license payment processed.

Included in the above compensation for Tax Administration Services are:

1. Printing and Mailing costs ( for notifications, license issuance, etc.);

2. Ongoing database management and back-up (taxpayer business information);

3. Forms processing and funds disbursement; and

4. Development and support of an on-line business license filing and payment application.

Cost for sending the original license/application to the City:

Consultant archives all original licenses/ applications. If the City requests a copy of the original license/ application, Consultant will send the copy to the City via e- mail.

II. Discovery Services
Consultant' s compensation for providing Discovery Services shall be a contingency fee of 35% of the recovered revenue received by the City from the services. The service must be concurrent and as part of the business license administration services. The 35% shall apply to the current tax year, all eligible prior period revenues received and any applicable penalties, interest and late charges. The contingency fee only applies to revenue actually received by the City. The term " current tax year" shall mean the most recent tax year for which local taxes are due and payable to the City, and in which Consultant has identified deficiencies.

III. Audit Services
Consultant' s compensation for the Audit Service shall be a contingency fee of 35% of the revenue received by the City as a result of deficiencies identified in the review and shall include any eligible prior period revenues together with all applicable penalties, interest and late charges. The City agrees to use reasonable and diligent efforts to collect deficiencies identified by Consultant except when the cost of recovery exceeds the deficiency in the sole discretion of the City.

IV. Consultant' s annual compensation under this Agreement shall not exceed $ 15, 000 and Consultant' s total compensation under this Agreement shall not exceed $ 75, 000 as provided in Section 2. 1.
01247. 0001/ 635149. 3 C- 1
rors, omissions or liabilities whether actual or
threatened (herein " claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with any disclosure by the City pursuant to the Disclosure Laws. Further, Consultant hereby releases the City from any liability to Consultant for any disclosures made by City pursuant tothe Disclosure Laws and hereby waives any claims that Consultant may have against City relating to any disclosures
made by City pursuant tothe Disclosure Laws. c.Consultant shall retain ownership and rights to all proprietary information. The obligations imposed by this Section shall survive any expiration ortermination of this Agreement and are inaddition toany other obligation under this Agreement toindemnify, defend, hold harmless, or release from liability
the City.01247. 0001/635149.
3B-2 ration.

7. Document Submission/
Processing: Whether thetaxpayer business chooses torespond bymail, emailorour online filing website, Consultant will review each application submission for completion and accuracy prior to processing. Consultant 01247 0001/ 635149. 3 nddiscovery and all other necessary costs 01247. 0001/ 635149.315-tend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247. 0001/ 635149. 312-nce provided to the additional insured tothe additional insured still is excess over valid shall
be
limited tothe limits ofliability required
and collectible other insurance, whether primary, by that "written contract requiring insurance". excess, contingent or on any other basis, that
is
This endorsement does not increase the available
to the additional insured when that limits ofinsurance described in Section III — person or organization is an additional insured Limits Of Insurance. under any other insurance. CG D3 81 09
15 2015 The Travelers Indemnity Company All rights reserved. Page

f
EXHIBIT " D"

SCHEDULE OF PERFORMANCE
I. Consultant shall commence the Services, as described in Exhibit " A," within 7 days of the City' s issuance of a notice to proceed, provided that the notice of proceed shall not be issued until the City has received a evidence of Consultant' s City business license, certificates of insurance evidencing insurance required by this Agreement, and any other documentation required by the City prior to commencement of the Services under this Agreement. Consultant shall perform all Services timely in accordance with the schedule to be developed by Consultant and subject to the written approval of the Contract Officer.

II. Consultant shall complete all Services under this Agreement by April 1, 2025.

III. The Contract Officer may approve extensions for performance of the services in accordance with Section 3. 2.
01247. 0001/ 635149. 3 D- 1
fee of 35% of the recovered revenue received by the City from the services. The service must be concurrent and as part ofthe business license administration services. The 35% shall apply to the current tax year,all eligible prior period revenues received and any applicable penalties, interest and late charges. The contingency fee only applies to revenue actually received by the City. The term "current
tax year" shall mean the most
recent tax year for
which local taxes
are due and payable to the City, and in which Consultant has identified deficiencies. III. Audit Services
Consultant' s
compensation for the Audit Service shall
be a
contingency fee
of35% of the

01247.0001 2002725.2
AMENDMENT NO. 1

TO AGREEMENT FOR CONTRACT SERVICES

BETWEEN THE CITY OF GRAND TERRACE AND

HDL COMPANIES
This AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES BETWEEN THE CITY OF GRAND TERRACE AND HDL COMPANIES (“Amendment No. 1”) by and between the City of Grand Terrace, a California municipal corporation (“City”), and HdL Companies, a California corporation (“Consultant”) is effective as of the 13th day of May 2025.

RECITALS
A. On April 22, 2020, the City and Consultant entered into an Agreement for Contract Services (“Agreement”) for Consultant to provide tax administration services to the City, as more specified in Exhibit “A” to the Agreement, for a term of five (5) years and a total contract sum not to exceed $75,000.00. The Agreement allows for extensions for the time of performance by the Contract Officer, subject to certain limitations.

B. By this Amendment No. 1, the parties now desire to amend the existing Agreement to extend the term of the Agreement an additional one (1) year, account for a change in cost to services, and increase the total contract sum by $15,000.00 for the term extension to a total contract sum not to exceed $90,000.00.

C. Except as amended hereby, this amendment is subject to the same terms and conditions as provided in the Agreement.

TERMS

1. Contract Amendments. The Agreement is amended as provided herein:

1.1 Section 2.1 (Contract Sum) is hereby amended in its entirety and shall now read as follows:

Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Ninety Thousand Dollars and Zero Cents ($90,000.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8.

1.2 Section 3.4 (Term) is hereby amended in its entirety and shall now read as follows:

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services and shall expire on June 30, 2026 from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”).

01247.0001 2002725.2

1.3 Exhibit “C” (Schedule of Compensation) is hereby amended and replaced in its entirety with Exhibit “C”, attached hereto.

1.4 Section II of Exhibit “D” (Schedule of Performance”) is hereby amended in its entirety and shall now read as follows:
“Consultant shall complete all Services under this Agreement by June 30, 2026.”

2. Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all provisions of the Agreement, as amended by Amendment No. 1, shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment No. 1.

3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation.

Consultant represents and warrants to City that, as of the date of this Amendment No. 1, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

City represents and warrants to Consultant that, as of the date of this Amendment No. 1, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

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

5. Authority. The persons executing this Amendment No. 1 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of the Agreement, as amended and (iv) the entering into this Amendment No. 1 does not violate any provision of any other agreement to which said party is bound.
[SIGNATURES ON FOLLOWING PAGE]

01247.0001 2002725.2
IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 on the date and year first-above written.

CITY:

City of Grand Terrace, a municipal
corporation
___________________________
Bill Hussey, Mayor
ATTEST:
___________________________
Daysi Alcocer, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
Adrian R. Guerra, City Attorney
CONSULTANT:

HdL Companies, a California corporation
By:

Name: Andrew Nickerson
Title: President/CEO
By:

Name: Richard Park
Title: Chief Financial Officer
Two corporate officer signatures required when Consultant is a corporation, with one signature from each of the following groups: 1) Chairman of the Board, president or any Vice President; and 2) Secretary. Any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT SIGNATURES SHALL BE DULY NOTORIZED,

AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE

REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY. ___________________________

01247.0001 2002725.2

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO
On __________, 2025 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature: _____________________________________

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED

DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

GUARDIAN/CONSERVATOR
OTHER_________________________
________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
______________________________________
______________________________________
___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED
ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

01247.0001 2002725.2

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO
On __________, 2025 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature: _____________________________________

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED

DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

GUARDIAN/CONSERVATOR
OTHER_________________________
________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
______________________________________
______________________________________
___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED
ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

01247.0001 2002725.2
EXHIBIT “C”

SCHEDULE OF COMPENSATION
Tax Administration
Consultant’s compensation for providing the Tax Administration Services shall be:

A $18.00 per license payment processed.

Included in the above compensation for Tax Administration Services are:

Printing and Mailing costs (for notifications, license issuance, etc.); Ongoing database management and back-up (taxpayer business information); Forms processing and funds disbursement; and
Development and support of an online business license filing and payment application.

Cost for sending the original license/application to the City:

Consultant archives all original licenses/applications. If the City requests a copy of the original license/application, Consultant will send the copy to the City via e-mail.

Discovery Services
Consultant' s compensation for providing Discovery Services shall be a contingency fee of 35% of the recovered revenue received by the City from the services. The service must be concurrent and as part of the business license administration services. The 35% shall apply to the current tax year, all eligible prior period revenues received and any applicable penalties, interest and late charges. The contingency fee only applies to revenue actually received by the City. The term "current tax year" shall mean the most recent tax year for which local taxes are due and payable to the City, and in which Consultant has identified deficiencies.

Audit Services
Consultant's compensation for the Audit Service shall be a contingency fee of 35% of the revenue received by the City as a result of deficiencies identified in the review and shall include any eligible prior period revenues together with all applicable penalties, interest and late charges. The City agrees to use reasonable and diligent efforts to collect deficiencies identified by Consultant except when the cost of recovery exceeds the deficiency in the sole discretion of the City.

Consultant’s annual compensation under this Agreement shall not exceed $15,000.00 per fiscal year.

AGENDA REPORT
MEETING DATE: May 13, 2025
TITLE: Amendment No. 2 to Agreement with EZ Sunnyday for Citywide Landscape Services
PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION:

1. Receive and file this report regarding the planned $2,250 contract adjustment for additional maintenance along the second half of the Mirado Drain, which will be processed in FY 2024–25 under the City Manager’s existing $25,000 contingency authority as approved on August 13, 2024.

2. Approve Amendment No. 2 to the agreement with EZ Sunnyday Landscape, effective July 1, 2025, to permanently include the Mirado Drain services in the scope of work and to remove field mowing services at Richard Rollins Park, resulting in a revised annual contract amount of $80,170.
2030 VISION STATEMENT:

This staff report supports Goal #2: “Maintain Public Safety” by ensuring the upkeep of City-maintained landscaping, including weed abatement and stormwater system readiness.

BACKGROUND:

On March 14, 2017, the City Council approved an agreement with EZ Sunnyday Landscape for citywide landscape maintenance. In June 2022, the City issued a bid for these services; only one proposal was received—from EZ Sunnyday Landscape. The contractor currently maintains Cityowned parkways, open spaces, and provides weed abatement and storm drain maintenance.

Previously approved services were expanded to include routine maintenance at several City properties and drainage areas. Some locations have since been removed from the service schedule due to changes in City responsibility. On August 13, 2024, the City Council approved an annual notto-exceed amount of $81,420, with a $25,000 contingency for adjustments.

DISCUSSION:

Under the City Manager’s previously authorized contingency authority, staff intends to process a $2,250 change order in FY 2024–25 for maintenance of the second half of the Mirado Drain, which was not part of the original scope. This change does not require Council approval but is being disclosed for transparency.

Staff is also preparing for a longer-term contract update. Amendment No. 2 will formally take effect on July 1, 2025 and will:
• Permanently include the Mirado Drain maintenance in the contractor’s scope of work, and • Remove field mowing services at Richard Rollins Park, resulting in a net contract reduction.

Additionally, during preparation of this report, staff identified a discrepancy in the previously reported contract total. While the agreement was stated as $81,420, a review of the line-item budget confirmed the correct annual amount is $81,520. Because the $100 difference falls well within the City Manager’s $25,000 contingency authority, no formal amendment is required for the current fiscal year. The corrected amount will be reflected in the contract record and included going forward in Amendment No. 2, which will adjust the new contract total to $80,170 effective July 1, 2025.

ENVIRONMENTAL IMPACT:

The proposed action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Existing Facilities) of the CEQA Guidelines. The contract involves maintenance of existing public landscaping and drainage facilities with no expansion of use or significant environmental impact.

FISCAL IMPACT:

The planned $2,250 adjustment for additional maintenance along the full length of the Mirado Drain will be processed in FY 2024–25 using the existing $25,000 contingency previously authorized under the City Manager’s purchasing authority. No additional appropriation is required.

There is no immediate fiscal impact related to the planned adjustment to remove field mowing services at Richard Rollins Park, which will take effect on July 1, 2025, and reduce the contract amount from $10,800 to $7,200 annually.

Upon the effective date of Amendment No. 2 on July 1, 2025, the revised annual contract value will be $80,170, a net decrease from the current not-to-exceed amount of $81,520.

Fund Name Account Account Description Amount
General Fund (10) 10-175-244-000 Parkway Maintenance $6,860 General Fund (10) 10-195-245-000 Facilities Maintenance $5,100 General Fund (10) 10-450-245-000 Parks Maintenance $44,120 General Fund (10) 10-631-255-000 Storm Drain Maintenance $10,330 Lndscp & Lgtg
Assessment (26)
26-600-255-000 Zone 1 - Canal $1,800
Lndscp & Lgtg
Assessment (26)
26-601-255-000 Zone 3 - Pico & Oriole $960
Lndscp & Lgtg
Assessment (26)
26-604-255-000 Zone 5 - Palomino $200
Lndscp & Lgtg
Assessment (26)
26-605-255-000 Zone 6 - Jaden $10,800
TOTAL $80,170

01247.0001/1003173.J
01247.0001 2000935.1
AMENDMENT NO. 2

TO AGREEMENT FOR PUBLIC WORKS SERVICES

BETWEEN THE CITY OF GRAND TERRACE AND EZ SUNNYDAY LANDSCAPE This AMENDMENT NO. 2 TO THE AGREEMENT FOR PUBLIC WORKS SERVICES BY

AND BETWEEN THE CITY OF GRAND TERRACE AND EZ SUNNYDAY LANDSCAPE ("Amendment NO. 2") by and between the CITY OF GRAND TERRACE ("City") and EZ SUNNYDAY LANDSCAPE, a California limited liability company ("Contractor") is effective as of the 1st day of July 2025.

RECITALS
A. The City and Contractor entered into that certain Agreement for Public Works Services By and Between the City of Grand Terrace and EZ Sunnyday Landscape for landscaping services, dated August 9, 2022, with a total compensation of $66,520, and for a term of five (5) years.

B. Pursuant to section 1.10(a) of the Agreement, the City requested additional services from Contractor to include quarterly landscape maintenance at various areas of the City.

C. By Amendment NO. 1, dated August 13, 2024, the City and Contractor amended the existing Agreement to increase the total compensation by $14,900.00, from $66,520.00 to $81,420.00.

D. The City acknowledges that the previously stated contract sum of $81,420.00 was incorrect, and the accurate annual contract sum is $81,520.00 based on the itemized account allocations approved on August 13, 2025.

E. By this Amendment NO. 2, dated May 13, 2025, the City and Contractor desire to amend the existing Agreement to add Mirado Drain maintenance services in the amount of $2,250.00 annually and to remove field mowing services at Richard Rollins Park, resulting in a net reduction of $1,350.00 and a new annual contract sum of $80,170.00, effective July 1, 2025.

F. Except as amended hereby, this amendment is subject to the same terms and conditions as provided in the Agreement.

TERMS

1. Contract Amendments. The Agreement is amended as provided herein:

1.1 Section 2.1 (Contract Sum) is hereby amended as follows (strikethrough represents deleted language while bold italics represents added language):
"Subject to any limitation set forth in this Agreement, City agrees to pay Consultant the amounts specified in the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Seventy-Five Thousand Six

01247.0001/1003173.J
01247.0001 2000935.1
Hundred Ninety Dollars and Zero Cents ($75,690.00) Eighty Thousand One Hundred Seventy Dollars and Zero Cents ($80,170.00) (the "Contract Sum"), unless additional compensation is approved pursuant to Section 1.8."

1.2 Section V of Exhibit "C" (Schedule of Compensation) is hereby amended in its entirety and shall now read as follows (strikethrough represents deleted language while bold italics represents added language):
"The total compensation for the Services shall not exceed Seventy-Five Thousand Six Hundred Ninety Dollars and Zero Cents ($75,690.00) Eighty Thousand One Hundred Seventy Dollars and Zero Cents ($80,170.00) per year as provided in Section 2.1 of this Agreement."

1.3 Exhibit "A-1" (Bid Specifications and Documents) is hereby replaced in its entirety as follows:

01247.0001/1003173.J
01247.0001 2000935.1

01247.0001/1003173.I
01247.0001 2000935.1

01247.000I/I003173.)
01247.0001 2000935.1

01247.000I/I003173.)
01247.0001 2000935.1

2. Continuing Effect of Agreement. Except as amended by this Amendment NO. 2, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement, as amended by Amendment NO. 2.

3. Affirmation of Agreement; Warranty Re Absence of Defaults. City. and Contractor each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation.

Contractor represents and warrants to City that, as of the date of this Amendment NO. 2, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

City represents and warrants to Contractor that, as of the date of this Amendment NO. 2, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment NO. 2.

5. Authority. The persons executing this Amendment NO. 2 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment NO. 2 on behalf of said party, (iii) by so executing this Amendment NO. 2, such party is formally bound to the provisions of the Agreement, as amended and (iv) the entering into this Amendment NO. 2 does not violate any provision of any other agreement to which said party is bound.

01247.000I/I003173.)
01247.0001 2000935.1
[SIGNATURES ON FOLLOWING PAGE]

01247.0001/1003 I 73.1
01247.0001 2000935.1
IN WITNESS WHEREOF, the parties hereto have executed this Amendment NO. 2 on the date and year first-above written.

CITY:

City of Grand Terrace, a municipal corporation
_____________________________________
Konrad Bolowich, City Manager
ATTEST:
____________________________________
Daysi Alcocer, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
_____________________________________
Adrian R. Guerra, City Attorney
CONSULTANT:

EZ SUNNYDAY LANDSCAPE, a California
limited liability company
_____________________________________
By: __________________________________
Name: Isai Zencena
Title: Owner
Address: P.O BOX 878,
Rialto, CA 92377
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S

SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE

INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.

01247.0001/1003173.I
01247.0001 2000935.1

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

AGENDA REPORT
MEETING DATE: May 13, 2025
TITLE: Amendment No. 1 to Superior Building Maintenance Contract for Facility Janitorial Services
PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION:
• Approve Amendment No. 1 to the agreement with Superior Building Maintenance, LLC, effective July 1, 2025, to reflect the following service adjustments:
o Increase janitorial service at the Annex Building from once per week to five days per week, at an annual cost of $5,916. o Add one additional cleaning day per week at the Senior Center, increasing the annual service cost for that location to $20,496, an increase of $11,088.
o Add janitorial service on four City-designated holidays to clean the City Hall lobby restrooms, which remain open for public access through the San Bernardino County Library, at a total annual cost of $192.
• Approve a revision to the contract term, increasing the agreement duration from three years to five years, with the option for up to two additional three-year extensions, subject to mutual agreement and City Council approval.
• Authorize the City Manager to execute Amendment No. 1 and make any necessary, non-substantive changes to implement the intent of this amendment.
2030 VISION STATEMENT:

This action supports Goal #1, Strategy 1.4 by exploring creative and cost-effective means to provide essential janitorial services that maintain operational continuity and public access to City facilities.

BACKGROUND:

On May 28, 2024, the City Council approved a contract for citywide janitorial services with Superior Building Maintenance, LLC (SBM). Since then, SBM has consistently delivered quality service across City facilities. As facility use and public access have increased at multiple locations, additional janitorial support is now necessary to maintain cleanliness and ensure a safe, functional environment.

DISCUSSION:

Over the past year, the Annex Building has transitioned from a file storage space to an active workspace now used by the San Bernardino County Sheriff's Department. Although the building is currently serviced once a week (on Mondays), daily use by Sheriff’s personnel has increased significantly. Staff recommends expanding janitorial services to five days a week, at an added cost of $493 per month (or $5,916 annually).

Additionally, due to the City Hall lobby restrooms being connected to the San Bernardino County Library, the restrooms remain in public use even when City Hall is closed for holidays. Currently, there is no janitorial service provided on those closure days. Staff recommends adding restroom cleaning on four designated holidays, at a total annual cost of $192.

The Senior Center has also experienced increased reservation activity, particularly over weekends.

To ensure cleanliness and readiness for weekday programming, staff recommends adding one additional cleaning day (Monday) each week. This service would cost $924 per month, or $11,088 annually.

These service adjustments are proposed as part of Amendment No. 1 to the existing agreement with Superior Building Maintenance, LLC (SBM) and would become effective July 1, 2025, resulting in a new total annual contract cost of $84,261.

In addition to the scope and cost updates, staff recommends modifying the original agreement to extend the contract term from three years to five years, with the option to renew for up to two additional three-year terms, subject to mutual agreement and City Council approval. This change would provide long-term cost stability and reduce the administrative burden of frequent re-bidding.

ENVIRONMENTAL IMPACT:

This action is not a project under the California Environmental Quality Act (CEQA) and is therefore exempt from environmental review, pursuant to CEQA Guidelines Section 15301 – Existing Facilities, as it involves maintenance of existing public facilities with no expansion of use.

FISCAL IMPACT:

The total fiscal impact of the additional services is $17,196 annually, broken down as follows:
• Annex Building (additional service days): $5,916/year • Senior Center (additional weekly cleaning): $11,088/year • City Hall lobby restrooms (holiday service): $192/year The Annex Building and holiday restroom services will be charged to Account 10-195-245-000 (Facilities Maintenance), and the Senior Center services will be charged to Account 10-805-245-000 (Senior Center Maintenance). The revised total annual contract value will be $84,261. No additional appropriation is required as this will be included in the budget each fiscal year.

01247.0001/1003173.J
01247.0001 2001758.1
AMENDMENT NO. 1

TO AGREEMENT FOR PUBLIC WORKS SERVICES

BETWEEN THE CITY OF GRAND TERRACE AND SUPERIOR BUILDING

MAINTENANCE, LLC
This AMENDMENT NO. 1 TO THE AGREEMENT FOR PUBLIC WORKS

SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND SUPERIOR BUILDING MAINTENANCE, LLC ("Amendment NO. 1") by and between the City of Grand Terrace, a California municipal corporation ("City"), Superior Building Maintenance, LLC, a California Limited Liability Company ("Contractor") is effective as of the 1st day of July 2025.

RECITALS
A. The City and Contractor entered into that certain Agreement for Public Works Services By and Between the City of Grand Terrace and Superior Building Maintenance, LLC for janitorial services, dated May 28, 2024, with a total compensation of $57,684 and for a term of three (3) years.

B. Pursuant to section 1.11(a) of the Agreement, the City is requesting additional services from Contractor to include daily and biweekly janitorial maintenance at various areas of the City.

C. By this Amendment NO. 1, dated July 1, 2025, the City and Contractor desire to amend the existing Agreement to increase the contract sum from $57,684 to $84,261. This increase reflects the addition of four (4) additional days of janitorial services at the annex building for the Sheriff’s Office, which increases the cost by $5,916, bringing the new annual compensation total for that location to $7,392; the addition of one (1) additional day of janitorial services at the Senior Center for $11,088 annually, bringing the total annual cost for that location to $20,496; and the addition of janitorial services on four (4) holidays when the City is closed, but the library lobby restrooms remain open, at a cost of $192 annually. These changes result in a new annual contract total of $84,261, effective July 1, 2025.

D. By this Amendment NO. 1, the City and Contractor further desire to amend the term of the Agreement, increasing the initial term from three (3) years to five (5) years.

E. Except as amended hereby, this amendment is subject to the same terms and conditions as provided in the Agreement.

TERMS

1. Contract Amendments. The Agreement is amended as provided herein:

1.1 Section 2.1 (Contract Sum) is hereby amended as follows (strikethrough represents deleted language while bold italics represents added language):
"Subject to any limitation set forth in this Agreement, City agrees to pay Contractor the amounts specified in the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Fifty-Seven Thousand Six Hundred Eighty Four Dollars and No Cents

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01247.0001 2001758.1
($57,684.00) Eighty-Four Thousand Two Hundred Sixty-One Dollars and Zero Cents ($84,261.00) (the "Contract Sum"), unless additional compensation is approved pursuant to Section 1.11."

1.2 Section 3.5 (Term) is hereby amended as follows (strikethrough represents deleted language while bold italics represents added language):
“Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding three (3) five (5) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”).”

1.3 Section V of Exhibit "C" (Schedule of Compensation) is hereby replaced in its entirety and shall now read as follows:
"The total compensation for Services shall not exceed Eighty-Four Thousand Two Hundred Sixty-One Dollars and Zero Cents ($84,261.00) per year as provided in Section 2.1 of this Agreement."
Item
No. Description of Items Estimated Quantity Unit Unit Price in Words Unit Price Total
Annual
Cost
1 Clean City Hall five days a week,
Monday through Friday night. 1 Month Two thousand seven hundred sixty-two dollars $2,762.00 $33,144.00 2 Clean the City Hall Annex Building
daily, Monday through Friday.
*The building remains open on Citydesignated holidays. 1 Month Seven thousand ninety-two dollars $616.00 $7,392.00 3 Provide access at 7:00 a.m. and
cleaning services twice a day (at 7:00
a.m. and at 1:00 p.m.) on Saturday,
Sunday, & Holidays at Richard
Rollins Park.
1 Month Three hundred eighty-four dollars and
forty cents $384.40 $4,612.80
4 Provide access at 7:00 a.m. and
cleaning services twice a day (at 7:00
a.m. and at 1:00 p.m.) on Saturdays,
Sundays, and holidays at Veterans
Freedom Park.
1 Month Three hundred eighty-four dollars and
forty cents $384.40 $4,612.80
5 Provide access at 7:00 a.m. and
cleaning services twice a day (at 7:00
a.m. and at 1:00 p.m.) on Saturdays,
Sundays, and holidays at GT Fitness
Park.
1 Month Three hundred eighty-four dollars and
forty cents $384.40 $4,612.80
6 Provide access at 7:00 a.m. and
cleaning services twice a day (at 7:00
a.m. on Saturdays, Sundays, and
holidays) at Grand Terrace Dog Park.
1 Month Three hundred eighty-four dollars and
forty cents $384.40 $4,612.80
7 Empty trash and dog waste bins at TJ
Austyn and Griffin Park on Saturdays
and holidays.
1 Month Three hundred eighty-four dollars and
forty cents $384.40 $4,612.80
8 Clean the Senior Center twice a week
on Monday and Thursday. 1 Month One thousand seven hundred and twentytwo dollars and seventy-five cents $1,722.75 $20,469.00 9 Clean City Hall lobby restrooms on
(4) holidays when City Hall is closed. 1 One-time One hundred ninety-two dollars $192.00 $192.00 TOTAL FEE: $84,261.00 per year

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01247.0001 2001758.1

1.4 Section IV of Exhibit “D” (Schedule of Performance) is hereby amended as follows (strikethrough represents deleted language while bold italics represents added language):
"The City in its sole discretion may extend the term of this Agreement in writing by two (2) terms of one (1) year each upon mutual agreement of the parties for up to two (2) additional terms of three (3) years each, subject to approval by the City Council.”

01247.000I/I003173.)
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2. Continuing Effect of Agreement. Except as amended by this Amendment NO. 1, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term "Agreement" appears in the Agreement, it shall mean the Agreement, as amended by Amendment NO. 1.

3. Affirmation of Agreement; Warranty Re Absence of Defaults. City. and Contractor each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation.

Contractor represents and warrants to City that, as of the date of this Amendment NO. I, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

City represents and warrants to Contractor that, as of the date of this Amendment NO. 1, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.

4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment NO. 1.

5. Authority, The persons executing this Amendment NO. 1 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment NO. 1 on behalf of said party, (iii) by so executing this Amendment NO. 1, such party is formally bound to the provisions of the Agreement, as amended and (iv) the entering into this Amendment NO. 1 does not violate any provision of any other agreement to which said party is bound.
[SIGNATURES ON FOLLOWING PAGE]

01247.0001/1003 I 73.1
01247.0001 2001758.1
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.

CITY:

City of Grand Terrace, a municipal corporation
_____________________________________
Konrad Bolowich, City Manager
ATTEST:
_____________________________________
Daysi Alcocer, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
____________________________________
Adrian R. Guerra, City Attorney
CONTRACTOR:

SUPERIOR BUILDING MAINTENANCE,
LLC
_____________________________________
By: __________________________________
Name: Jennifer Nieves
Title: CEO
Address: 1727 Via Encantadoras,
San Ysidro, Ca 92173
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S

SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE

INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.

01247.0001/1003173.I
01247.0001 2001758.1

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

AGENDA REPORT
MEETING DATE: May 13, 2025
TITLE: Award Contract to Athletic Field Specialist for Richard Rollins Field Maintenance
PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: Award the contract for turf maintenance services at Richard Rollins Park to Athletic Field Specialist for a five-year term, with an annual amount of $28,800, and authorize the City Manager to execute the agreement, subject to approval as to form by the City Attorney.
2030 VISION STATEMENT:

This report supports Goal #2: Maintain Public Safety by investing in critical infrastructure improvements, and Goal #3: Promote Economic Development by securing partnerships and funding for vital community projects.

BACKGROUND:

Through an agreement with Lewis Developers, Richard Rollins Park field was expected to be upgraded with higher-quality grass. Southern California Landscape Inc. was subcontracted through Lewis to begin services on 2/27/25. While Southern California Landscape was initially scheduled to conclude services in May, the City opted to have them continue providing services through June for continuity until a new bid process for maintenance services was completed.

DISCUSSION:

The City already had an existing landscaper for mowing services, but the City sought a company capable of providing reel mower services, which are compatible with the type of grass installed. Reel mowing uses a set of rotating blades to cut grass cleanly, providing a healthier cut that helps promote grass growth and improves the overall appearance of the turf.

Since Southern California Landscape was already performing work, the City requested a proposal for continued services and then conducted an open bid from April 1 to April 11 to ensure at least three quotes were obtained. The City received two bids: one from Southern California Landscape for $37,300 and another from Athletic Field Specialist for $28,200. Both bids included services such as weekly mowing, aeration, overseeding, fertilization, and weed control. The contract would be for a five-year term.

Athletic Field Specialist was recommended as the lowest responsive bid, and the contract will be for five years at an annual cost of $28,200. Southern California Landscape will continue performing maintenance until June 30, 2025, after which Athletic Field Specialist will assume responsibility starting with the new fiscal year.

ENVIRONMENTAL IMPACT:

The recommended turf maintenance services will ensure the continued health and sustainability of the grass at Richard Rollins Park, contributing to the local environment by maintaining high-quality landscaping that promotes healthier outdoor spaces and reduces water waste through appropriate mowing techniques.

FISCAL IMPACT:

The annual cost of the contract, $28,200, will be budgeted each year starting in the 2025-26 fiscal year and charged to account 10-450-245-000, which is our parks account. The total value of the contract over the five-year term is $141,000.

City of Grand Terrace
Bid Results – Turf Maintenance Services
Richard Rollins Community Park
Bid Closing Date: Apr 11, 2025 12:00:00 PM PDT
Platform: Public Purchase
The following bid results summarize proposals received for turf maintenance services at Richard Rollins Community Park. While the bid was advertised through the City’s online bidding platform, Public Purchase, no electronic submissions were received through the system. Instead, two proposals were submitted in response to the solicitation.

Bid Results Summary
Vendor Base Bid – Mowing
Optional –
Aeration
Optional –
Overseeding
Additional
Services
Total Monthly Cost
(Mowing Only)
Service
Frequency
Details
Southern
California
Landscape Inc.
$28,800 annually $1,000
(twice/year)
$7,500
(twice/year)
N/A $2,400/month
Aeration:
2x/year
Overseeding:
2x/year
Athletic Field
Specialist
$350/week
($1,516.67/month)
Included in
$10,000 lump
sum
Included in
$10,000 lump
sum
$10,000
lump sum
$1,516.67/month
Fertilization:
min. 4x/year
Weed Control:
3–4x/year
Aeration: min.
2x/year

Summary Table
Vendor Annual Cost (Base Only) Annual Cost (With Optional/Additional Services) Southern California Landscape Inc. $28,800 $37,300
Athletic Field Specialist $18,200 $28,200
Additional Notes
• The contract term for this service is five years.
• Final contract award is pending City Council approval, anticipated at the May 13, 2025, Council Meeting at 6:00 PM. • No other proposals were received for this solicitation.

For questions or clarifications, please contact:

Shanita Tillman
Senior Management Analyst
City of Grand Terrace – Public Works Department
[email protected] | 909-954-5191

01247.0001 2004195.1 5/6/2025

AGREEMENT FOR CONTRACT SERVICES
By and Between

CITY OF GRAND TERRACE
and
ATHLETIC FIELD SPECIALISTS INC.

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AGREEMENT FOR CONTRACT SERVICES

BY AND BETWEEN THE CITY OF GRAND TERRACE AND

ATHLETIC FIELD SPECIALISTS INC
This “AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND ATHLETIC FIELD SPECIALISTS INC” (herein “Agreement”) is made and entered into this 13th day of May, 2025 by and between the City of Grand Terrace, a California municipal corporation (“City”) and Athletic Field Specialists Inc., a California corporation (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.”

RECITALS
A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the performance of the services defined and described particularly in Article 1 of this Agreement.

B. Consultant, following submission of a proposal or bid for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by City to perform those services.

C. Pursuant to the City of Grand Terrace Municipal Code, City has authority to enter into and execute this Agreement.

D. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services.

In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder.

As a material inducement to City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Consultant covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase “highest

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professional standards” shall mean those standards of practice recognized by one or more firstclass firms performing similar work under similar circumstances.

1.2 Consultant’s Proposal.

The Scope of Service shall include Consultant’s scope of work or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern.

1.3 Compliance with Law.

Consultant shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered.

1.4 Licenses, Permits, Fees and Assessments.

Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.5 Familiarity with Work.

By executing this Agreement, Consultant warrants that Consultant (i) has thoroughly investigated and considered the scope of services to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Consultant warrants that Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should Consultant discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Consultant shall immediately inform City of such fact and shall not proceed except at Consultant’s risk until written instructions are received from the Contract Officer.

1.6 Care of Work.

Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City’s own negligence.

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1.7 Further Responsibilities of Parties.

Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither Party shall be responsible for the service of the other.

1.8 Additional Services.

City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to Consultant, incorporating therein any adjustment in (i) the Contract Sum for the actual costs of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Consultant. Any increase in compensation of up to ten percent (10%) of the Contract Sum or $25,000, whichever is less; or, in the time to perform of up to one hundred eighty (180) days, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other consultants. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.

1.9 Special Requirements.

Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed One-Hundred Forty One Thousand U.S. Dollars and zero Cents ($141,000) (the “Contract Sum”), and shall not exceed shall not exceed Twenty-Eight Thousand Two Hundred Dollars ($28,200) per year, unless additional compensation is approved pursuant to Section 1.8.

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2.2 Method of Compensation.

The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services, less contract retention; (iii) payment for time and materials based upon Consultant’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained, and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation.

2.3 Reimbursable Expenses.

Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City.

Coordination of the performance of the work with City is a critical component of the services. If Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending said meetings.

2.4 Invoices.

Each month Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance.

By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of the Agreement. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Consultant shall not invoice City for any duplicate services performed by more than one person.

City shall independently review each invoice submitted by Consultant to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Consultant which are disputed by City, or as provided in Section 7.3, City will use its best efforts to cause Consultant to be paid within forty-five (45) days of receipt of Consultant’s correct and undisputed invoice; however, Consultant acknowledges and agrees that due to City warrant run procedures, City cannot guarantee that payment will occur within this time period. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

2.5 Waiver.

Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.

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ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

Time is of the essence in the performance of this Agreement.

3.2 Schedule of Performance.

Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively.

3.3 Force Majeure.

The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of the Agreement pursuant to this Section.

3.4 Term.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) year from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”).

ARTICLE 4. COORDINATION OF WORK

4.1 Representatives and Personnel of Consultant.

The following principals of Consultant (“Principals”) are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:

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Allen Aragon Owner
(Name) (Title)
(Name) (Title)
(Name) (Title)
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement.

Therefore, the foregoing Principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of Principals. For purposes of this Agreement, the foregoing Principals may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City. Additionally, Consultant shall utilize only competent personnel to perform services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Consultant shall notify City of any changes in Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance.

4.2 Status of Consultant.

Consultant shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Consultant, nor any of Consultant’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Consultant expressly waives any claim Consultant may have to any such rights.

4.3 Contract Officer.

The Contract Officer shall be Konrad Bolowich, City Manager, [or such person as may be designated by the City Manager]. It shall be Consultant’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer.

The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of City required hereunder to carry out the terms of this Agreement.

4.4 Independent Contractor.

Neither City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or

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control of Consultant’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant.

4.5 Prohibition Against Subcontracting or Assignment.

The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release Consultant or any surety of Consultant of any liability hereunder without the express consent of City.

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages.

Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees and agents of City:
(a) General Liability Insurance (Occurrence Form CG0001 or equivalent). A policy of comprehensive general liability insurance written on a per occurrence basis for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than $1,000,000.00 per occurrence or if a general aggregate limit is used, then the general aggregate limit shall be twice the occurrence limit.
(b) Worker’s Compensation Insurance. A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for Consultant against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by Consultant in the course of carrying out the work or services contemplated in this Agreement.
(c) Automotive Insurance (Form CA 0001 (Ed 1/87) including “any auto” and endorsement CA 0025 or equivalent). A policy of comprehensive automobile liability insurance

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written on a per occurrence for bodily injury and property damage in an amount not less than $1,000,000.00. Said policy shall include coverage for owned, non-owned, leased, hired cars and any automobile.
(d) Professional Liability. Professional liability insurance appropriate to Consultant’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of Consultant’s services or the termination of this Agreement. During this additional five (5) year period, Consultant shall annually and upon request of City submit written evidence of this continuous coverage. (e) Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein. (f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”.

5.2 General Insurance Requirements.

All of the above policies of insurance shall be primary insurance and shall name City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its officers, employees or agents may apply in excess of, and not contribute with Consultant’s insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against City, its officers, employees and agents and their respective insurers. Moreover, the insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self-insured retention.

All of said policies of insurance shall provide that said insurance may not be amended or cancelled by the insurer or any Party hereto without providing thirty (30) days prior written notice by certified mail return receipt requested to City. In the event any of said policies of insurance are cancelled, Consultant shall, prior to the cancellation date, submit new evidence of insurance in conformance with Section 5.1 to the Contract Officer.

No work or services under this Agreement shall commence until Consultant has provided City with Certificates of Insurance, additional insured endorsement forms or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by City. City reserves the right to inspect complete, certified copies of and endorsements to all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City.

All certificates shall name City as additional insured (providing the appropriate endorsement) and shall conform to the following “cancellation” notice:

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CANCELLATION:

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE

CANCELLED BEFORE THE EXPIRATION DATED THEREOF,
THE ISSUING COMPANY SHALL MAIL THIRTY (30)-DAY

ADVANCE WRITTEN NOTICE TO CERTIFICATE HOLDER
NAMED HEREIN.
[to be initialed] ______________
Consultant’s Initials
City, its respective elected and appointed officers, directors, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities Consultant performs; products and completed operations of Consultant; premises owned, occupied or used by Consultant; or any automobiles owned, leased, hired or borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded to City, and their respective elected and appointed officers, officials, employees or volunteers. Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City or its respective elected or appointed officers, officials, employees and volunteers or Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. Consultant agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which Consultant may be held responsible for the payment of damages to any persons or property resulting from Consultant’s activities or the activities of any person or persons for which Consultant is otherwise responsible nor shall it limit Consultant’s indemnification liabilities as provided in Section 5.3.

In the event Consultant subcontracts any portion of the work in compliance with Section

4.5 of this Agreement, the contract between Consultant and such subcontractor shall require the subcontractor to maintain the same policies of insurance that Consultant is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City.

5.3 Indemnification.

To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable (“Indemnitors”), or arising from Consultant’s or Indemnitors’

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reckless or willful misconduct, or arising from Consultant’s or Indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Consultant will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorney’s fees incurred in connection therewith;
(b) Consultant will promptly pay any judgment rendered against City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Consultant hereunder; and Consultant agrees to save and hold City, its officers, agents, and employees harmless therefrom;
(c) In the event City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Consultant for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Consultant hereunder, Consultant agrees to pay to City, its officers, agents or employees, any and all costs and expenses incurred by City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorney’s fees.

Consultant shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Consultant shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Consultant in the performance of professional services hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Consultant and shall survive termination of this Agreement.

5.4 Sufficiency of Insurer.

Insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of City (“Risk Manager”) due to unique circumstances. If this Agreement continues for more than three (3) years duration, or in the event the Risk Manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to City, Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the Risk Manager.

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ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records.

Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and City shall have access to such records in the event any audit is required. In the event of dissolution of Consultant’s business, custody of the books and records may be given to City, and access shall be provided by Consultant’s successor in interest. Notwithstanding the above, Consultant shall fully cooperate with City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.

6.2 Reports.

Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed.

6.3 Ownership of Documents.

All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”), including any electronic documents and materials, prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City in a format of City’s choice upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by Consultant will be at City’s sole risk and without liability to Consultant, and Consultant’s guarantee and warranties shall not extend to such use, reuse or assignment.

Consultant may retain copies of such documents for its own use. Consultant shall have the right to

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use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, Consultant with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for City.

6.4 Confidentiality and Release of Information.
(a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer.
(b) Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement.

Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives City notice of such court order or subpoena.
(c) If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. (d) Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law.

This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District

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Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California.

7.2 Disputes; Default.

In the event that Consultant is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Consultant is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default, City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of City to give notice of Consultant’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.

7.3 Retention of Funds.

Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.

7.4 Waiver.

Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement.

Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver.

Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

7.5 Rights and Remedies are Cumulative.

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party

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of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

7.6 Legal Action.

In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.

7.7 Termination Prior to Expiration of Term.

This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. City reserves the right to terminate this Contract at any time, with or without cause, upon written notice to Consultant. In addition, Consultant may terminate this Contract for cause, upon sixty (60) days’ advance written notice to City. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where Consultant has initiated termination, Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event Consultant has initiated termination, Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating Party need not provide the non-terminating Party with the opportunity to cure pursuant to Section 7.2.

7.8 Termination for Default of Consultant.

If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amounts owed City as previously stated.

7.9 Attorney’s Fees.

If either Party to this Agreement is required to initiate or defend or made a Party to any action or proceeding in any way connected with this Agreement, the prevailing Party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a Party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs

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the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees.

No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

8.2 Conflict of Interest.

Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Contract Officer. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

8.3 Covenant Against Discrimination.

Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.

8.4 Unauthorized Aliens.

Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorney’s fees, incurred by City.

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ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices.

Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Grand Terrace, 22795 Barton Rd, Grand Terrace, CA 92313, and in the case of Consultant, to the person(s) at the address designated on the execution page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

9.2 Interpretation.

The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

9.3 Counterparts and Electronic Signatures.

This Agreement may be executed in two or more counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. The words “execution,” “signed,” “signature,” and words of like import in this Agreement or in any other certificate, agreement or document related to this Agreement, shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures (including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paperbased record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the California Uniform Electronic Transactions Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.

9.4 Integration; Amendment.

This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties. It is understood that there are no oral agreements between the Parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the Parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Consultant and by the City Council. The Parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

01247.0001 2004195.1 5/6/2025
-18-

9.5 Severability.

In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties hereunder unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

9.6 Warranty & Representation of Non-Collusion.

No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5.

Nor shall any such officer or employee participate in any decision relating to the Agreement which affects her/his financial interest or the financial interest of any corporation, partnership or association in which (s)he is, directly or indirectly, interested, in violation of any State statute or regulation, including but not limited to the Political Reform Act (Government Code Sections 81000, et seq.)
Consultant warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Consultant further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Consultant is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.

Consultant’s Authorized Initials _______

9.7 Corporate Authority.

The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.

01247.0001 2004195.1 5/6/2025 19
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

CITY:

City of Grand Terrace, a municipal corporation
_____________________________________
Konrad Bolowich, City Manager
ATTEST:
___________________________________
Daysi Alcocer, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
___________________________________
Adrian R. Guerra, City Attorney
CONSULTANT:
______________________________________
______________________________________
By:
___________________________________
Name: Allen Aragon
Title: Owner
By:
___________________________________
Name:

Title:

Address: 3094 East Shauna Drive
Highland, CA 92346
______________________________
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S SIGNATURES

SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS

MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.

01247.0001 2004195.1 5/6/2025

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO
On __________, 2025 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature: _____________________________________

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

01247.0001 2004195.1 5/6/2025

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO
On __________, 2025 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature: _____________________________________

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.

01247.0006/808013.1 A-1
EXHIBIT “A”

SCOPE OF SERVICES
I. Consultant shall perform all of the work and comply with all of the specifications and requirements in the “General Provisions” and “Special Provisions” included in the bid documents for the project entitled the “Turf Maintenance Services – Richard Rollins Park Field” including any documents or exhibits referenced therein. The bid documents shall include, but not be limited to, those bid specifications and documents provided in Exhibit “A-1”.

II. In addition to the requirements of Section 6.2, during performance of the work, Consultant will keep the City apprised of the status of performance by delivering status reports as may be required by the City from time to time.

III. All work is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City.

IV. Consultant shall provide safe and continuous passage for pedestrian and vehicular traffic in accordance with the Work Area Traffic Control Handbook (WATCH), latest edition.

01247.0001 2004195.1 5/6/2025 B-1
EXHIBIT “A-1”

BID SPECIFICATIONS AND DOCUMENTS

01247.0001 2004195.1 5/6/2025 B-2
EXHIBIT “B”

SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)
Section 3.4 (“Term”) is hereby amended and shall read in its entirety as follows:

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding five (5) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”).

01247.0001 2004195.1 5/6/2025 C-1
EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. Consultant shall perform all work at the rates on the Bid Schedule submitted as part of Consultant’s Proposal, which is attached hereto as Exhibit “C-1”. The City does not expressly or by implication agree that the actual amount of work will correspond with quantities given in Exhibit “C-1”, but reserves the right to increase or decrease the amount of any class or portion as deemed necessary or advisable by the Contract Officer. Payment will be based upon the actual quantities installed or constructed, unless otherwise specified.

III. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task subbudget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 1.8.

IV. City will compensate Consultant for the Services performed upon submission of a valid invoice. Each invoice is to include:

A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate.

B. Line items for all materials and equipment properly charged to the Services.

C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.

D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.

V. The total compensation for the Services shall not exceed $28,200 as provided in Section 2.1 of this Agreement.

01247.0001 2004195.1 5/6/2025 D-1
EXHIBIT “D”

SCHEDULE OF PERFORMANCE
I. Contractor shall perform all work timely and in accordance with plans and specifications as provided in Exhibit “A”. Further, Contractor shall perform all work timely and in accordance with a Project Schedule to be developed by Contractor and the Contract Officer and subject to written approval by the Contract Officer.

II. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2.

AGENDA REPORT
MEETING DATE: May 13, 2025
TITLE: 2025-2026 Landscape & Lighting Assessment District 89-1 Public Hearing Intent
PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: 1. Adopt RESOLUTION NO. 2025-___, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, INITIATING PROCEEDINGS TO LEVY ANNUAL ASSESSMENTS FOR THE 2025-2026

FISCAL YEAR FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 AND ORDERING THE

ENGINEER TO PREPARE AND FILE A REPORT IN ACCORDANCE WITH ARTICLE IV OF CHAPTER 1 OF SAID ACT; and

2. Adopt RESOLUTION NO. 2025-___, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, GIVING

PRELIMINARY APPROVAL OF THE ENGINEERS REPORT FOR
LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND

THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED
THERETO FOR FISCAL YEAR 2025-2026; and

3. Adopt RESOLUTION NO. 2025-___, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA,

DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON
JUNE 10, 2025, ON LANDSCAPING AND LIGHTING ASSESSMENT
DISTRICT NO. 89-1, AND TO LEVY AND COLLECT ANNUAL
ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2025-2026
2030 VISION STATEMENT:

This staff report supports Goal #1 to “Ensure our Fiscal Viability by ensuring appropriate cost recovery for services."
BACKGROUND:

In 1989, the City Council established Assessment District 89-1 to maintain landscaping and lighting for Tract 13364 (Zone 1), as required by the development’s conditions of approval. Since then, the District has expanded through a series of annexations, resulting in a total of seven zones, each corresponding to a specific tract:
• Zone 1: Tract 13364 (Original District)
• Zone 2: Tract 14264

• Zone 3: Tract 14471
• Zone 4: Tract 17766 – Greenbriar on Mt. Vernon
• Zone 5: Tract 18793 – Aegis Builders on Pico Street
• Zone 6: Tract 18071 – Kargar Development on Jaden Court • Zone 7: Tract 18604 – Aegis-Van Buren on Tesoro Court/Van Buren Together, these seven zones make up the current Assessment District 89-1, with each zone assessed independently based on the landscaping and lighting improvements within its boundaries.

DISCUSSION:

Each year, an Engineer’s Report is prepared and reviewed by the City Council to determine annual assessment amounts for the City's Landscaping and Lighting Assessment District, in accordance with the Landscaping and Lighting Act of 1972. The report evaluates prior year expenditures and projects maintenance and operational costs for the upcoming fiscal year, with those costs allocated to benefiting properties through property tax bills.

For Fiscal Year 2025–2026, staff has reviewed expenditures and, based on the Engineer’s estimate, determined that overall maintenance costs will decrease. As a result, assessment amounts for the District will also be reduced compared to the previous year.

ENVIRONMENTAL IMPACT:

The proposed assessments have no significant environmental impact and are exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines, as they involve the continued maintenance of existing landscaping and lighting facilities.

FISCAL IMPACT:

The projected cost to maintain the Assessment District for FY 2025–2026 is $41,505.00, which will largely be reimbursed through property tax collections administered by San Bernardino County.

RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, PURSUANT TO THE LANDSCAPING AND
LIGHTING ACT OF 1972, INITIATING PROCEEDINGS TO LEVY
ANNUAL ASSESSMENTS FOR THE 2025-2026 FISCAL YEAR FOR THE

CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT NO. 89-1 AND ORDERING THE ENGINEER

TO PREPARE AND FILE A REPORT IN ACCORDANCE WITH ARTICLE IV OF CHAPTER 1 OF SAID ACT
WHEREAS, the City Council has, by previous Resolutions, formed the City of Grand Terrace LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 (hereafter referred to as “District”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code of California, beginning with Section 22500 (hereafter referred to as the “Act”), in which annual assessments have been levied and collected in past fiscal years; and
WHEREAS, said Act requires that proceedings for the levy of assessments shall be initiated by resolution describing any proposed new improvements or any substantial changes in existing improvements in accordance with Chapter 3 (commencing with Section 22620) of Part 2 of Division 15 of the Streets and Highway Code of the State of California, and ordering the engineer to prepare and file a report in accordance with Article 4 of Chapter 1 of said Act.

WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, desires to initiate proceedings for the annual levy of assessments for the District pursuant to the terms and provisions of the "Landscaping and Street Lighting Act of 1972," being Division 15, Part 2 of the Streets and Highways Code of the State of California.

WHEREAS, the proceedings for the annual levy of assessments shall relate to the fiscal year commencing July 1, 2025, and ending June 30, 2026; and, WHEREAS, the provisions of said Division 15, Part 2 require a written "Report," consisting of the following:

1. Plans and specifications of the area of the works of improvement to be maintained;

2. An estimate of the costs for maintaining the improvements for the above referenced fiscal year;

3. A diagram of the area proposed to be assessed;

4. An assessment of the estimated costs for maintenance work for said fiscal year.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grand Terrace does hereby resolve, determine and order as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. That the proposed maintenance work within the area proposed to be assessed shall be for certain street lighting and landscaping improvements, as said maintenance work is set forth in the "Report" to be presented to this City Council for consideration.

SECTION 3. That Shanita Tillman, Management Analyst, or her designee, is hereby ordered to prepare and file with this City Council, a "Report" relating to said annual assessment and levy in accordance with the provisions of Article IV, commencing with Section 22565 of Chapter 1 of the Streets and Highways Code of the State of California.

SECTION 4. That upon completion, said "Report" shall be filed with the City Clerk, who shall then submit the same to this City Council for its consideration pursuant to Sections 22623 and 22624 of said Streets and Highways Code.

PASSED, APPROVED AND ADOPTED this 13th day of May, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:
__________________________ __________________________
Daysi Alcocer Bill Hussey
City Clerk, City of Grand Terrace Mayor, City of Grand Terrace

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF GRAND TERRACE )
I, __________________, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2025- ________ was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 13th day of May 2025, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

EXECUTED this 13th day of May 2025, at Grand Terrace, California.

_________________________________
Daysi Alcocer
City Clerk for the City of Grand Terrace
[SEAL]

RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, GIVING PRELIMINARY APPROVAL OF THE

ENGINEERS REPORT FOR LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT NO. 89-1, AND THE LEVY AND COLLECTION

OF ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR
2025/2026
WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, (hereinafter referred to as the “City”) pursuant to the provisions of Division 15, Part 2 of the Streets and Highways Code of the State of California, did, by previous Resolution, order the preparation of an Engineer's Report (hereinafter referred to as the “Report”) for the annual levy of assessments, consisting of plans and specifications, an estimate of the cost, a diagram of the district, and an assessment relating to what is now known and designated as:

CITY OF GRAND TERRACE
LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1
(hereinafter referred to as the "District"); and,
WHEREAS, there has now been presented to this City Council the Report as required by Article 4 of Chapter 1 of Part 2 of Division 15 of the Streets and Highways Code, and as previously directed by Resolution; and,
WHEREAS, this City Council has now carefully examined and reviewed the Report as presented, and is satisfied with each and all of the items and documents as set forth therein, and is satisfied that the proposed assessments, on a preliminary basis, have been spread in accordance with the benefits received from the maintenance to be performed, as set forth in said Report.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City does hereby resolve, determine and order as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. That the Report as presented, consisting of the following:

A. Plans and specifications;
B. Method of Apportionment;
C. Estimate of cost;
D. Assessment Diagram of the District;
E. Assessment of the estimated cost;

is hereby approved on a preliminary basis, and is ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection.

SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Report.

PASSED, APPROVED AND ADOPTED this day of 13th May 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:
__________________________ __________________________
Daysi Alcocer Bill Hussey
City Clerk Mayor, City of Grand Terrace

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF GRAND TERRACE )
I, Daysi Alcocer, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2025- ______ was duly passed, approved, and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 13th day of May 2025, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Executed this 13th day of May 2025, at Grand Terrace, California. _________________________________
Daysi Alcocer
City Clerk for the City of Grand Terrace

[SEAL]

RESOLUTION NO. 2025- ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JUNE 10TH, 2025, ON LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND TO LEVY AND

COLLECT ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL
YEAR 2025-2026

WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, (hereafter referred to as the “City Council”) desires to levy assessments within LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 (hereafter referred to as the “District”) pursuant to the terms and provisions of the "Landscaping and Street Lighting Act of 1972", being Division 15, Part 2 of the Streets and Highways Code of the State of California (hereafter referred to as the “Act”); and, WHEREAS, at this time, this City Council is desirous to provide for an annual levy of assessments for the territory within the District for the next ensuing fiscal year, to provide for the costs and expenses necessary for continual maintenance of improvements within said District; and,
WHEREAS, at this time there has been presented and approved by this City Council, the Engineer's Report (hereafter referred to as the “Report”) as required by law, and this City Council is desirous of proceeding with the proceedings for said annual levy.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grand Terrace does hereby resolve, determine and order as follows:

SECTION 1. That the above recitals are all true and correct.

PUBLIC INTEREST
SECTION 2. Pursuant to the Act (specifically, Streets and Highways Code Section 22624), the City Council hereby finds and declares that the public interest and necessity require the maintenance and servicing of landscaping and public lighting facilities in the District, and contingent upon compliance with, as applicable, the requirements of the Act, Article XIIID of the California Constitution (commonly known as “Proposition 218”) and the Proposition 218 Omnibus Implementation Act (set forth at Government Code Sections 53750-53758), the City Council hereby declares its intention to levy and collect proposed assessments within the District for the continual maintenance of certain improvements, all to serve and benefit said District that is comprised of zones located throughout the City of Grand Terrace and said area is shown and delineated on a map as previously approved by this City Council and on file in the Office of the City

Clerk, open to public inspection, and herein so referenced and made a part hereof, and proposed changes thereto are set forth in the Report of the Engineer, incorporated herein as a part hereof.

REPORT
SECTION 3. That the Report of the Engineer regarding the annual levy for said District, which "Report" is for maintenance for the Fiscal Year 2025-2026 is hereby approved and is directed to be filed in the Office of the City Clerk.

ASSESSMENT
SECTION 4. That the public interest and convenience requires, and it is the intention of this City Council to order the annual assessment levy for the District as set forth and described in said Engineer's "Report," and further it is determined to be in the best public interest and convenience to levy and collect the annual assessments to pay the costs and expense of said maintenance and improvement as estimated in said "Report. There is an assessment increase for the Fiscal Year 2025-2026 levy for Zone 4, Zone 5, Zone 6 and Zone 7.

SECTION 5. In accordance with Streets and Highways Code Section 22660(a), the City Council has determined that the estimated cost of certain proposed improvements, described in Section 22525, subdivisions (a) through (d), are greater than can conveniently be raised from a single assessment, and, as a result, shall be collected in installments and held in a reserve account, as noted in the Engineer’s Report.

DESCRIPTION OF MAINTENANCE
SECTION 6. The assessments levied and collected shall be for the maintenance of certain landscaping and street lighting improvements including but not limited to:
planting, shrubbery and tree maintenance, light poles, light fixtures and appurtenant facilities as required to provide lighting in public right-of-ways and easements, as set forth in the Engineer's "Report," referenced and so incorporated herein.

COUNTY AUDITOR
SECTION 8. The County Auditor shall enter on the County Assessment Roll the amount of the assessments, and shall collect said assessments at the time and in the same manner as County taxes are collected. After collection by the County, the net amount of the assessments, after the deduction of any compensation due to the County for collection, shall be paid to the Treasurer for purposes of paying for the costs and expenses of said District.

SPECIAL FUND
SECTION 9. That all monies collected shall be deposited in a special fund known as
"SPECIAL FUND”, CITY OF GRAND TERRACE
LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1
Payment shall be made out of said fund only for the purpose provided for in this Resolution, and in order to expedite the making of this maintenance and improvement, the City Council may transfer into said funds as it may deem necessary to expedite the proceedings. Any funds shall be repaid out of the proceeds of the assessments provided for in this Resolution.

BOUNDARIES OF DISTRICT
SECTION 10. Said contemplated maintenance work is, in the opinion of this City Council, of direct benefit to the properties within the boundaries of the District, and this City Council makes the costs and expenses of said maintenance chargeable upon a district, which district said City Council hereby declares to be the district benefited by said improvement and maintenance, and to be further assessed to pay the costs and expenses thereof. Said District shall include each and every parcel of land within the boundaries of said District, as said District is shown on a map as approved by this City Council and on file in the Office of the City Clerk, and so designated by the name of the District.

NOTICE OF PUBLIC HEARING
SECTION 11. NOTICE IS HEREBY GIVEN THAT TUESDAY, JUNE 10TH, 2025, AT THE HOUR OF 6:00 O'CLOCK P.M., IN THE CITY COUNCIL CHAMBERS LOCATED AT 22795 BARTON ROAD, GRAND TERRACE, CALIFORNIA, IS THE TIME AND

PLACE FIXED BY THIS CITY COUNCIL FOR THE HEARING OF PROTESTS OR

OBJECTIONS IN REFERENCE TO THE ANNUAL LEVY OF ASSESSMENTS, TO THE

EXTENT OF THE MAINTENANCE, AND ANY OTHER MATTERS CONTAINED IN THIS RESOLUTION BY THOSE PROPERTY OWNERS AFFECTED HEREBY. ANY

PERSONS WHO WISH TO OBJECT TO THE PROCEEDINGS SHOULD FILE A

WRITTEN PROTEST WITH THE CITY CLERK PRIOR TO THE TIME SET AND SCHEDULED FOR SAID PUBLIC HEARING.

SECTION 12. The City Clerk is directed to publish this Resolution of Intention pursuant to Government Code Section 6061, said publication to be completed no later than ten (10) days prior to the date set for the Public Hearing.

EFFECTIVE DATE
SECTION 13. That this Resolution shall take effect immediately upon its adoption.

PROCEEDINGS INQUIRIES
SECTION 14. For any and all information relating to the proceedings, protest procedure, any documentation and/or information of a procedural or technical nature, your attention is directed to the below listed person at the local agency or department so designated:

Shanita Tillman, Management Analyst

CITY OF GRAND TERRACE
22795 Barton Road
Grand Terrace, California 92313
PASSED, APPROVED AND ADOPTED this 13th day of May, 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Bill Hussey
Mayor for the City of Grand Terrace
ATTEST:
_________________________________
Daysi Alcoler
City Clerk for the City of Grand Terrace

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF GRAND TERRACE )
I, Daysi Alcoler, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2025- _______ was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 13th day of May 2025, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

EXECUTED this 13th day of May 2025, at Grand Terrace, California. _________________________________
Daysi Alcoler
City Clerk for the City of Grand Terrace

[SEAL]

City of Grand Terrace
Landscaping and Lighting
Assessment District No. 89-1
2025/2026 ENGINEER’S REPORT
Intent Meeting: May 13, 2025
Public Hearing: June 10, 2025

27368 Via Industria
Suite 200
Temecula, CA 92590
T 951.587.3500 | 800.755.6864
F 951.587.3510
www.willdan.com

ENGINEER'S REPORT AFFIDAVIT
Establishment of Annual Assessments for the:

Landscaping and Lighting Assessment District No. 89-1
City of Grand Terrace,
County of San Bernardino, State of California
This Report describes the improvements, budgets, parcels and assessments to be levied for Fiscal Year 2025/2026. Reference is hereby made to the San Bernardino County Assessor’s maps for a detailed description of the lines and dimensions of the parcels within the District.

The undersigned respectfully submits the enclosed Report as directed by the City Council.

Dated this ____________ day of ______________, 2025.

Willdan Financial Services
Assessment Engineer
On Behalf of the City of Grand Terrace
By: ________________________________
Chonney Gano, Project Manager
District Administration Services
By: ________________________________
Tyrone Peter
P. E. # C 81888

TABLE OF CONTENTS
INTRODUCTION............................................................................................................. 1 Section I. PLANS AND SPECIFICATIONS................................................................. 3 Improvements Authorized by the 1972 Act.............................................................. 3 District Plans and Specifications.............................................................................. 4 Section II. METHOD OF APPORTIONMENT............................................................... 8 Proposition 218 Benefit Analysis ............................................................................. 9 Benefit Analysis ......................................................................................................... 9 Assessment Methodology....................................................................................... 11 Assessment Range Formula ................................................................................... 11 Section III. ESTIMATE OF IMPROVEMENT COSTS.................................................. 13 Section IV. ASSESSMENT DIAGRAMS ..................................................................... 21 Section V. ASSESSMENT ROLL ............................................................................... 28

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 1

INTRODUCTION
The City Council of the City of Grand Terrace (the “City”) adopted its General Plan with various elements to provide guidelines for orderly development within the community.

The City Council further adopted ordinances and regulations governing the development of land providing for the installation and construction of certain landscaping, lighting and appurtenant facilities to enhance the quality of life and to benefit the value of property.

The requirement for the construction and installation of landscaping, lighting and appurtenant facilities is a condition of approval for development and is a requirement of issuance of a permit for the construction of any residential, commercial, industrial and planned unit development. The installation of landscaping and lighting systems and the construction of the necessary appurtenant facilities is the responsibility of the property owner/applicant, as conditions of approval of a development application. The City may cause the installation by property owners directly or accept financial arrangements for installation of these facilities. The cost of servicing, operation, maintenance, repair and replacement of the landscaping, lighting and appurtenant facilities in turn becomes the responsibility of the benefiting properties.

The owners/applicants petitioned for formation of the Landscaping Lighting Assessment District and/or annexation. These have been completed and will increase the City’s obligation for maintenance and servicing.

The City is administering a lighting system for the benefit of all parcels of land within the City. The lighting benefit is directly related to public safety and property protection. These benefits have been studied widely, locally, regionally and nationally.

The City formed Landscaping and Lighting Assessment District 89-1 (the “District”) in 1989 and subsequently annexed other parcels as Annexation No. 1, Annexation No. 2 Annexation No. 3, Annexation No. 4, and Annexation No. 5 to said District to ensure a fair and equitable levying of the necessary costs of servicing and maintenance of the respective facilities, which in turn will enhance the value of each parcel in the District directly and collectively.

The boundaries of the District, which include Annexations 1, 2, 3, 4, and 5 are the boundaries of Zone 1 - Tract 13364 filed in Map Book 203, Pages 89 through 92, Records of San Bernardino County (the “County”). The boundaries of Zone 2 - Tract 14264 and Zone 3 – Tract 14471 filed in Map Book 242, Pages 17 and 18, Zone 4 – Tract 17766 filed in Map Book 237, Pages 41 and 42, and Zone 5 – Tract 18793 filed in Map Book 115, Pages 81-82. The boundaries of Zone 6 – Tract 18071 and Zone 7 –18604 filed in Map Book 1178 Page 18 and Map Book 1167 Page 34, respectively, of the County.

Servicing and administration of the City’s landscape maintenance program shall be according to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the Streets and Highways Code of the State of California (the “1972 Act”).

Payment for the assessment for each parcel will be made in the same manner and at the

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 2
same time as payments are made for property taxes for each property.

The proceedings will be conducted under the 1972 Act Sections 22500 through 22679.

This Engineer’s Report (the “Report”) is presented for the purpose of levy of annual assessment to the above-described properties for the purpose of maintaining the lighting and landscaping during the Fiscal Year 2025/2026.

This Report contains the necessary data required to conduct the proceedings and is submitted to the Clerk of the City for filing.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (“APN”) by the San Bernardino County (the “County”) Assessor’s Office. The County Auditor/Controller uses Assessor’s Parcel Numbers and a dedicated fund number established for the District to identify properties to be assessed on the tax roll and the allocation of the funds collected.

This Report consists of the following sections:

Section I
Plans and Specifications: Description of the District's improvements are filed herewith and made a part hereof. Said plans and specifications are on file in the Office of the City Clerk.

Section II
Method of Apportionment: A discussion of the general and special benefits associated with the overall landscaping street lighting improvements provided within the District (Proposition 218 Benefit Analysis). This section also includes a determination of the proportional costs of the special benefits and a separation of costs considered to be of general benefit (and therefore not assessed). This section of the Report also outlines the method of calculating each property’s proportional special benefit.

Section III
Estimate of Improvement Costs: An estimate of the cost of the proposed improvements, including incidental costs and expenses in connection therewith, is as set forth on the lists thereof, attached hereto, and are on file in the Office of the City Clerk.

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 3
Section IV
Assessment Diagrams: A diagram showing the boundaries of the District is provided in this Report and includes all parcels that receive special benefits from the improvements.

Parcel identification, the lines and dimensions of each lot, parcel and subdivision of land within the District, are inclusive of all parcels as shown on the County Assessor's Parcel Maps as they existed at the time this Report was prepared and shall include all subsequent subdivisions, lot-line adjustments or parcel changes therein. Reference is hereby made to the County Assessor’s maps for a detailed description of the lines and dimensions of each lot and parcel of land within the District.

Section V
Assessment Roll: A listing of the proposed assessment amount for each parcel within the District. The proposed assessment amount for each parcel is based on the parcel’s calculated proportional special benefit as outlined in the method of apportionment and proposed assessment rate established in the District Budget. These assessment amounts represent the assessments proposed to be levied and collected on the County Tax Rolls for Fiscal Year 2025/2026.

Section I. PLANS AND SPECIFICATIONS
Improvements Authorized by the 1972 Act
As applicable or may be applicable to this District, the 1972 Act defines improvements to mean one or any combination of the following:
• The installation or planting of landscaping.
• The installation or construction of statuary, fountains, and other ornamental structures and facilities.
• The installation or construction of public lighting facilities. • The installation or construction of any facilities which are appurtenant to any of the foregoing, or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities. • The maintenance or servicing, or both, of any of the foregoing. • The acquisition of any existing improvement otherwise authorized pursuant to this section.

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 4
Incidental expenses associated with the improvements including, but not limited to:
• The cost of preparation of the Report, including plans, specifications, estimates, diagram, and assessment;
• The costs of printing, advertising, and the publishing, posting, and mailing of notices;
• Compensation payable to the County for collection of assessments; • Compensation of any engineer or attorney employed to render services; • Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
• Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.
• Costs associated with any elections held for the approval of a new or increased assessment.

The 1972 Act defines "maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:
• Repair, removal, or replacement of all or any part of any improvement. • Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury.
• The removal of trimmings, rubbish, debris, and other solid waste. • The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

District Plans and Specifications
The District provides the necessary funding source for the annual maintenance, operation and servicing of the improvements that have been constructed and installed for the benefit of properties within the District.

Landscaping and appurtenant facilities generally include trees, shrubs, plants, turf, irrigation systems, and necessary appurtenances including curbs, hardscape, monumentations, fencing located in public right-of-ways, medians, parkways, and/or easements adjacent to public right-of-ways, in and along public thoroughfares and certain designated primary and secondary arterials.

Lighting and appurtenant facilities includes poles, lighting fixtures, conduits, and the necessary equipment to maintain, operate and replace a lighting system at designated

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 5
intersections, in medians, parkways and adjacent to certain public facilities in and along certain streets, right-of-ways and designated lots.

The installation of planting, landscaping, irrigation systems, lighting and the construction of appurtenant facilities to be operated, serviced and maintained, is more specifically described herein whereas, the landscaping and lighting facilities have been or will be provided by developers as a condition of subdivision of land, on part of the Conditional Use review and approval process.

A. ZONES OF BENEFIT
In an effort to ensure an appropriate allocation of the estimated annual cost to provide the District improvements based on proportional special benefits, this District is established with benefit zones (“Zones”) as authorized pursuant to Chapter 1 Article 4, Section 22574 of the 1972 Act:
“The diagram and assessment may classify various areas within an assessment district into different zones where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of benefit from the improvements. A zone shall consist of all territory which will receive substantially the same degree of benefit from the improvements.” The parcels, lots, subdivisions and developments within the District are identified and grouped into one of seven (7) Zones. Each Zone reflects the landscape improvements associated with the development of properties in that Zone, to fairly and equitably apportion the net cost of providing those improvements to the properties that receive special benefits from the service and activities associated with those improvements. All of the parcels in the District are identified as single-family residential properties within three residential developments. These residential developments have been grouped into seven different Zones that reflect each specific budget and improvements for that particular Zone. By establishing and utilizing a Zone structure, similar properties with similar types of improvements will be assessed a proportional amount for the services and activities provided by the District within each respective Zone.

The improvements are the operation, maintenance and servicing of landscaping, lighting and appurtenant facilities described as follows:

Zone 1 - Tract 13364
(a) Landscaping
Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District.

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 6
(b) Lighting
Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District.

A total of 5 streetlights are included in the boundaries of this development.

Zone 2 - Tract 14264
(a) Lighting
Poles, fixtures, bulbs, conduits, equipment, posts, pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District.

A total of 7 streetlights are included in the boundaries of this development.

Zone 3 - Tract 14471
(a) Landscaping
Landscaping, planting shrubbery, trees, and vines with Lot “A” of said Tract 14471, along with irrigation system for the improvements within Lot “A”. (b) Lighting
Poles, fixtures, conduits, equipment, posts, pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-ofways and easements within the boundaries of the District. A total of 6 streetlights are maintained within the boundaries of this development.

Zone 4 – Tract 17766
(a) Landscaping
Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District. (b) Lighting
Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District.

A total of 1 streetlight is included in the boundaries of this development.

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 7
Zone 5 – Tract 18793
(a) Landscaping
Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District. (b) Lighting
Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District.

A total of 5 streetlights are included in the boundaries of this development.

Zone 6 – Tract 18071
(a) Landscaping
Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District.

Additionally, the District will include the maintenance of a water quality basin, designed for storm water runoff purposes.
(b) Lighting
Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District.

A total of 4 streetlights are included in the boundaries of this development.

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 8
Zone 7 – Tract 18604
(a) Landscaping
Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District.

Additionally, the District will include graffiti removal on the block wall along the east side of the Gage Canal within the western boundary of the tract, streetlights, and street trees along Tesoro Court and Van Buren Street. Lot “B” of said tract is designated as a retention basin and will be maintained as a dual-purpose basin, for retaining water and for a small playground. (b) Lighting
Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District.

A total of 3 streetlights are included in the boundaries of this development.

Section II. METHOD OF APPORTIONMENT
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements, including the acquisition, construction, installation, and servicing of street lighting improvements and related facilities. The 1972 Act requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
The formulas used for calculating assessments reflect the composition of parcels within the District (which are all residential properties) and the improvements and activities to be provided and have been designed to fairly apportion costs based on a determination of the proportional special benefits to each parcel within each Zone, consistent with the requirements of the 1972 Act and the provisions of Proposition 218 and Article XIII D of the California Constitution (“Article XIID”). For each Zone within the District, each parcel represents one (1) Equivalent Benefit Unit (“EBU”).

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 9
The following formula is used to arrive at the levy amount for each parcel within each Zone:

Levy per EBU (rate) x Parcel’s EBU = Parcel Levy Amount Proposition 218 Benefit Analysis
The costs of the proposed improvements for Fiscal Year 2025/2026 have been identified and allocated to properties within the District based on special benefit. The improvements provided by this District and for which properties are assessed are public street lighting and landscaping improvements. These improvements generally were installed in connection with the development of the properties within the District. Article XIIID Section 2(d) defines District as follows:
“District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service”; Article XIIID Section 2(i) defines Special benefit as follows:
“Special benefit” means a particular and distinct benefit over, and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.” Article XIIID Section 4(a) defines proportional special benefit assessments as follows:
“An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Benefit Analysis
Special Benefit
The special benefits properties within the District will receive from the proposed improvements include, but are not limited to:
• Improved aesthetic appeal of nearby properties providing a positive representation of the area and properties.
• Enhanced adaptation of adequate green space, trees, and amenities within the urban environment.

Total Balance to Levy = Levy per EBU
Total EBU

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 10 • Increased sense of pride in ownership of properties within the District resulting from their association with well-maintained improvements. • Enhanced quality of life and working environment within the area that is promoted by well-maintained landscaped areas and amenities. • Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities within public areas.
• Increased social opportunities and leisure activities for customer’s residents and families, provided by a well-maintained neighborhood destination place for relaxation, socializing, and entertainment that is within easy walking distance.
• Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise.

The preceding special benefits contribute to the overall aesthetic value and desirability of each of the assessed parcels within the District and thereby provide a special enhancement to these properties. Furthermore, it has been determined that the lack of funding to properly service and maintain the improvements would ultimately result in the deterioration of the improvements and facilities, which in turn could negatively impact the properties within the District. As such, the annual costs of ensuring the ongoing maintenance and operation of these improvements are considered a distinct and special benefit to the properties within the District and are therefore considered the financial obligation of those properties. The cost of any improvement or portion thereof that is considered to be of general benefit shall not be included as part of the special benefit assessments allocated to properties within the District.

General Benefit
In the absence of a special funding District, the City would typically provide only weed abatement and erosion control services for landscaped areas. The cost to provide this baseline level of service is approximately $0.01 per square foot for landscape areas that require maintenance. Zone 1 – Tract 13364 has approximately 29,100 square feet of landscape space, Zone 2 – Tract 14264 has no landscaping area that the City maintains and Zone 3 – Tract 14471 has approximately 9,045 square feet of landscape space, Zone 4 – Tract 17766 has approximately 3,856 square feet of landscaped space, Zone 5 – Tract 18793 has approximately 4,668 square feet of landscaped space, Zone 6 – Tract 18071 has approximately 61,750 square feet of landscaped space, Zone 7 – Tract 18604 has approximately 3,239 square feet of landscaped space. The proposed budgets for Fiscal Year 2025/2026 show the general benefit amount which will be deducted from the cost of maintenance to arrive at a net special benefit assessment rate.

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 11 Assessment Methodology
This District was formed to establish and provide for the improvements that enhance the presentation of the surrounding properties and developments. These improvements will directly benefit the parcels to be assessed within the District. The assessments and method of apportionment is based on the premise that the assessments will be used to construct and install landscape and lighting improvements within the existing District as well as provide for the annual maintenance of those improvements, and the assessment revenues generated by District will be used solely for such purposes.

The costs of the proposed improvements have been identified and allocated to properties within the District based on special benefit. The improvements to be provided by this District and for which properties will be assessed have been identified as an essential component and local amenity that provides a direct reflection and extension of the properties within the District which the property owners and residents have expressed a high level of support.

The method of apportionment (method of assessment) set forth in the Report is based on the premise that each assessed property receives special benefits from the landscape and lighting improvements within the District, and the assessment obligation for each parcel reflects that parcel’s proportional special benefits as compared to other properties that receive special benefits.

To identify and determine the proportional special benefit to each parcel within the District, it is necessary to consider the entire scope of the improvements provided as well as the properties that benefit from those improvements. The improvements and the associated costs described in this Report, have been carefully reviewed and have been identified and allocated based on a benefit rationale and calculations that proportionally allocate the net cost of only those improvements determined to be of special benefit to properties within the District.

Assessment Range Formula
Any new or increased assessment requires certain noticing and meeting requirements by law. Prior to the passage of Proposition 218 (California Constitution Articles XIIIC and XIIID), legislative changes in the Brown Act defined a "new or increased assessment" to exclude certain conditions. These conditions included "any assessment that does not exceed an assessment formula or range of assessments previously adopted by the agency or approved by the voters in the area where the assessment is imposed." This definition and conditions were later confirmed through Senate Bill 919 (the Proposition 218 implementing legislation).

The purpose of establishing an assessment range formula is to provide for reasonable increases and inflationary adjustment to annual assessments without requiring costly noticing and mailing procedures, which could add to the District costs and assessments.

As part of the District formation, balloting of property owners is required pursuant to the Article XIIID Section 4. The property owner ballots include an Assessment to be

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 12 approved, as well as the approval of an assessment range formula.

The assessment range formula for District assessments may be applied to future assessments within the District commencing with Fiscal Year 2018/2019 for Zone 4 – Tract 17766 and Zone 5 – Tract 18793, Fiscal Year 2019/2020 for Zone 6 – Tract 18071 and Fiscal Year 2020/2021 for Zone 7. Zone 1 – Tract 13364, Zone 2 – Tract 14264 and Zone 3 – Tract 14471 do not have an increase in assessments. The following describes the assessment range formula:

The Maximum Assessment is equal to the initial Assessment approved by property owners adjusted annually by the percentage increase of the Local Consumer Price Index (“CPI”) plus two percent (2%). As of January 2018, the Bureau of Labor Statistics (the “BLS”) split the Los Angeles-Riverside-Orange County Area for all Urban Consumers to Los Angeles-Long Beach-Anaheim area and Riverside-San Bernardino-Ontario Area.

Each fiscal year, the Maximum Assessment will be recalculated, and a new Maximum Assessment established. Currently, the District uses the Annual Riverside-San Bernardino-Ontario CPI index to compute the CPI difference each year. For Fiscal Year 2025/2026, the percentage difference is 2.614%. Therefore, the Maximum Assessment will increase by 4.614%.

The Maximum Assessment is adjusted annually and is calculated independent of the annual budgets and proposed assessments established for each Zone of the District. Any proposed annual assessment (rate per EBU) less than or equal to this Maximum Assessment (for each Zone) is not considered an increased assessment, even if the proposed assessment is much greater than the assessment applied in the prior fiscal year.

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 13 Section III. ESTIMATE OF IMPROVEMENT COSTS
In accordance with Streets and Highways Code Section 22660(a), the City Council has determined that the estimated cost of certain proposed improvements, described in Section 22525, subdivisions (a) through (d), are greater than can conveniently be raised from a single assessment, and, as a result, shall be collected in installments and held in a reserve account. In particular, Zone 1, Zone 3, Zone 4, Zone 5, Zone 6, and Zone 7 requires trimming and pruning landscaping services that are proposed to be performed every five years. The proposed assessment includes a budgeted amount for trimming and pruning to collect for these services.

The following outlines the budget to fund the District improvements based on the improvements to be maintained and the associated incidental expenses for Fiscal Year 2025/2026, resulting in the proportional assessments calculated for each parcel that will be applied to the County Tax Rolls for Fiscal Year 2025/2026. The cost of maintaining improvements for Fiscal Year 2025/2026 are summarized as follows:

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 14 Zone 1 Tract 13364 – Canal
Budget Item Fiscal Year 2025/26
Current Assessment
Energy Costs – Street Lighting $920.00
Water Supply 13,000.00
Professional Services 680.00
Contract Maintenance 1,800.00
Engineering 500.00
Annual Costs Total $16,900.00
General Benefit - Collection/(Contribution) (291.00)
General Fund - Collection/(Contribution) (10,962.40)
Balance to Levy $5,646.60
Fiscal Year 2025/26 Assessment per Parcel $282.33
Fiscal Year 2025/26 Max Assessment per Parcel $282.3300 Fiscal Year 2024/25 Max Assessment per Parcel $282.3300 Number of Parcels (EBU) 20

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 15 Zone 2 Tract 14264 – Forrest City Phase II
Budget Item Fiscal Year 2025/26
Current Assessment
Energy Costs – Street Lighting $1,100.00
Professional Services 670.00
Engineering 500.00
Annual Costs Total $2,270.00
General Benefit - Collection/(Contribution)* 0.00
General Fund - Collection/(Contribution) (854.36)
Balance to Levy $1,415.64
Fiscal Year 2025/26 Assessment per Parcel $1,415.64
Fiscal Year 2025/26 Max Assessment per Parcel $1,415.6400 Fiscal Year 2024/25 Max Assessment per Parcel $1,415.6400 Number of Parcels (EBU) 1
*Parcels under zone 2 receive no General Benefit, because there is no landscaping.

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 16 Zone 3 Tract 14471 – Oriole
Budget Item Fiscal Year 2025/26
Current Assessment
Energy Costs – Street Lighting $780.00
Water Supply 1,200.00
Contractual Services 960.00
Engineering 500.00
Annual Costs Total $3,440.00
General Benefit - Collection/(Contribution)* (90.45)
Reserve Fund - Collection/(Contribution) 0.00
General Fund - Collection/(Contribution) 0.00
Balance to Levy $3,349.55
Fiscal Year 2025/26 Assessment per Parcel $197.03
Fiscal Year 2025/26 Max Assessment per Parcel $309.9500 Fiscal Year 2024/25 Max Assessment per Parcel $309.9500 Number of Parcels (EBU) 17

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 17 Zone 4 Tract 17766 – Greenbriar
Budget Item Fiscal Year 2025/26
Current Assessment
Energy Costs – Street Lighting $195.00
Professional Services 500.00
Engineering 500.00
Annual Costs Total $1,195.00
General Benefit - Collection/(Contribution) (38.56)
HOA - Collection/(Contribution) 0.00
Reserve Fund - Collection/(Contribution) 0.00
General Fund - Collection/(Contribution) 0.00
Balance to Levy $1,156.44
Fiscal Year 2025/26 Assessment per Parcel $33.04
Fiscal Year 2025/26 Max Assessment per Parcel $230.4285 Fiscal Year 2024/25 Max Assessment per Parcel $220.2643 Number of Parcels (EBU) 35

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 18 Zone 5 Tract 18793 – Palomino
Budget Item Fiscal Year 2025/26
Current Assessment
Energy Costs – Street Lighting $840.00
Professional Services 0.00
Contractual Services 200.00
Engineering 500.00
Annual Costs Total $1,540.00
General Benefit - Collection/(Contribution) (46.68)
Reserve Fund - Collection/(Contribution) 0.00
General Fund - Collection/(Contribution) 0.00
Balance to Levy $1,493.32
Fiscal Year 2025/26 Assessment per Parcel $124.44
Fiscal Year 2025/26 Max Assessment per Parcel $722.7466 Fiscal Year 2024/25 Max Assessment per Parcel $690.8663 Number of Parcels (EBU) 12

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 19 Zone 6 Tract 18071 – Jaden
Budget Item Fiscal Year 2025/26
Current Assessment
Energy Costs - Street Lighting $2,500.00
Contractual Services 12,660.00
Engineering 500.00
Annual Costs Total $15,660.00
General Benefit - Collection/(Contribution) (617.50)
Reserve Fund - Collection/(Contribution) 0.00
General Fund - Collection/(Contribution) 0.00
Balance to Levy $15,042.50
Fiscal Year 2025/26 Assessment per Parcel $884.85
Fiscal Year 2025/26 Max Assessment per Parcel $2,078.6312 Fiscal Year 2024/25 Max Assessment per Parcel $1,986.9430 Number of Parcels (EBU) 17

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 20 Zone 7 Tract 18604 – Tesoro/Van Buren
Budget Item Fiscal Year 2025/26
Current Assessment
Contractual Services $0.00
Engineering 500.00
Annual Costs Total $500.00
General Benefit - Collection/(Contribution) (32.39)
Reserve Fund - Collection/(Contribution) 0.00
General Fund - Collection/(Contribution) 0.00
Balance to Levy $467.61
Fiscal Year 2025/26 Assessment per Parcel $27.51
Fiscal Year 2025/26 Max Assessment per Parcel $459.5458 Fiscal Year 2024/25 Max Assessment per Parcel $439.2752 Number of Parcels (EBU) 17
The total approved assessment for Fiscal Year 2025/2026 is $28,571.55.

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 21 Section IV. ASSESSMENT DIAGRAMS
An Assessment Diagram for the District has been submitted to the Clerk of the City in the format required under the provision of the Act. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of San Bernardino, for the year when this Report was prepared, and are incorporated by reference herein and made part of this Report. The following pages show the boundaries of each of the Zones in the District.

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 22

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 23

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 24

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
ZONE 4

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 25

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
ZONE 5

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 26

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
Zone 6

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 27

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
ZONE 7

2025/2026 City of Grand Terrace L&L AD No. 89-1 Page 28 Section V. ASSESSMENT ROLL
The description of each lot or parcel is part of the records of the Assessor of the County of San Bernardino and these records are, by reference, made part of this Report. The proposed assessment and the amount of assessment for Fiscal Year 2025/2026 apportioned to each lot or parcel is shown below.

AGENDA REPORT
MEETING DATE: May 13, 2025
TITLE: 2025-2026 Trash and Sewer Special Assessments: Intent to Levy and Schedule Public Hearing
PRESENTED BY:

RECOMMENDATION: 1. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GRAND TERRACE, CALIFORNIA, DECLARING ITS INTENTION TO
CONDUCT A PUBLIC HEARING ON JULY 8, 2025, TO LEVY AND

COLLECT SPECIAL ASSESSMENTS FOR DELINQUENT TRASH AND
SEWER BILLS FOR FISCAL YEAR 2025-2026, AND TO PLACE THESE ASSESSMENTS ON THE TAX ROLL.

2. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GRAND TERRACE, CALIFORNIA, INITIATING PROCEEDINGS TO LEVY

SPECIAL ASSESSMENTS FOR DELINQUENT TRASH AND SEWER BILLS FOR THE 2025-2026 FISCAL YEAR AND ORDERING THE CITY

MANAGER TO PREPARE AND FILE A REPORT IN ACCORDANCE WITH THE RELEVANT PROCEDURES FOR PLACEMENT ON THE TAX ROLL.
2030 VISION STATEMENT:

This report supports the 2030 Vision Statement by ensuring fiscal responsibility through the collection of delinquent trash and sewer bills, while maintaining equitable access to public services and adhering to legal and procedural standards.

BACKGROUND:

In 1981, the City Council enacted Ordinance No. 51, which established rules for sewer user charges, requiring anyone using the city’s sewer system to pay a fee.

In 1996, the City Council adopted Ordinance No. 162, which created Municipal Code Chapter 5.42 (Integrated Waste Management). This code was designed to regulate waste management services and prevent illegal dumping. It also mandated that the franchise hauler, Burrtec Waste Industries, Inc. (Burrtec), collect trash and make efforts to ensure the collection of fees for the service.

DISCUSSION:

Municipal Code Sections 5.42.120 and 13.08.130 outline property owners' responsibilities for paying refuse and sewer fees, as well as the consequences of non-payment. When property owners fail to pay these fees, the City utilizes legal remedies to recover the amounts owed. Burrtec reports unpaid residential trash and sewer fees, while the City of Colton reports unpaid commercial sewer fees.

These outstanding amounts are then included in property tax assessments and collected along with property taxes. A public hearing is scheduled for July 8, 2025, to address delinquent accounts.

ENVIRONMENTAL IMPACT:

There is no environmental impact.

FISCAL IMPACT:

Setting the public hearing has no fiscal impact.

01247.0006 2004225.1
RESOLUTION NO. 2025- ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON [DATE], TO LEVY AND COLLECT SPECIAL

ASSESSMENTS FOR DELINQUENT TRASH AND SEWER BILLS FOR
FISCAL YEAR 2025-2026, AND TO PLACE THESE ASSESSMENTS ON THE TAX ROLL.

WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, (hereafter referred to as the “City Council”) desires to levy assessments to collect delinquent trash and sewer bills for the 2025-2026 fiscal year pursuant to the relevant legal authority, and place these assessments on the tax roll; and, WHEREAS, the City Council intends to provide notice of its intention to conduct a public hearing regarding the proposed levy of special assessments to recover unpaid trash and sewer charges from property owners within the City, and, WHEREAS, this assessment process is being conducted in accordance with Chapter 4.72 of the Grand Terrace Municipal Code, Health and Safety Code section 5471, Government Code sections 38790.1, 25830, 25831, and 5471,and Public Resources Code Section 40059, and the provisions set forth in Articles XIII C and XIII D of the California Constitution, commonly known as Proposition 218, which require that any property-related fees or charges, including assessments for delinquent trash and sewer bills, be subject to certain procedures, including notice, a public hearing, and the opportunity for property owners to file protests.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grand Terrace does hereby resolve, determine and order as follows:

SECTION 1. That the above recitals are all true and correct.

PUBLIC INTEREST
SECTION 2. The City Council hereby finds and declares that the public interest and necessity require the collection of delinquent trash and sewer bills through special assessments, which will be placed on the tax roll. This process will allow for the recovery of outstanding charges associated with unpaid trash and sewer bills for fiscal year 2025- 2026 in compliance with Chapter 4.72 of the Grand Terrace Municipal Code, Health and Safety Code section 5471, Government Code sections 38790.1, 25830, 25831, and 5471,and Public Resources Code Section 40059, and Article XIII D of the California Constitution (Proposition 218).

01247.0006 2004225.1

ASSESSMENT AND COLLECTION
SECTION 3. The City Council declares its intention to levy and collect the special assessments for delinquent trash and sewer bills, and that these assessments will be placed on the tax roll, as authorized by Chapter 4.72 of the Grand Terrace Municipal Code, Health and Safety Code section 5471, Government Code sections 38790.1, 25830, 25831, and 5471,and Public Resources Code Section 40059, and Article XIII C and Article XIII D of the California Constitution.

NOTICE OF PUBLIC HEARING
SECTION 4. NOTICE IS HEREBY GIVEN that on July 8, 2025, at the hour of 6:00 P.M., in the City Council Chambers located at 22795 Barton Road, Grand Terrace, California, a public hearing will be held to receive protests or objections from property owners concerning the proposed special assessments for delinquent trash and sewer charges for fiscal year 2025-2026. Any person wishing to object to the proposed assessments must file a written protest with the City Clerk prior to the scheduled public hearing.

SECTION 5. The City Clerk is directed to publish this Resolution of Intention pursuant to Government Code Section 6061, with publication to be completed no later than ten (10) days prior to the date set for the public hearing. Staff is directed to mail notice of the hearing to all property owners or users listed on the report for the proposed special assessments related to delinquent trash and sewer bills not less than 45 days prior to the date of the hearing.

EFFECTIVE DATE
SECTION 6. This Resolution shall take effect immediately upon its adoption.

PROCEEDINGS INQUIRIES
SECTION 7. For any and all information relating to the proceedings, protest procedure, any documentation and/or information of a procedural or technical nature, your attention is directed to the below listed person at the local agency or department so designated:

Shanita Tillman, Management Analyst

CITY OF GRAND TERRACE
22795 Barton Road
Grand Terrace, California 92313

01247.0006 2004225.1
PASSED, APPROVED AND ADOPTED this 13th day of May, 2025 by the following vote:

01247.0006 2004225.1
AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Bill Hussey
Mayor for the City of Grand Terrace
ATTEST:
_________________________________
Daysi Alcoler
City Clerk for the City of Grand Terrace

01247.0006 2004225.1

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF GRAND TERRACE )
I, Daysi Alcoler, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, do hereby certify that the foregoing Resolution, being Resolution No. 2025- ______, was duly passed, approved, and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 13th day of May 2025, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

EXECUTED this 13th day of May 2025, at Grand Terrace, California. _________________________________
Daysi Alcocer
City Clerk for the City of Grand Terrace

[SEAL]

RESOLUTION NO. 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, INITIATING PROCEEDINGS TO LEVY

SPECIAL ASSESSMENTS FOR DELINQUENT TRASH AND SEWER
BILLS FOR THE 2025-2026 FISCAL YEAR AND ORDERING THE CITY

MANAGER TO PREPARE AND FILE A REPORT IN ACCORDANCE

WITH THE RELEVANT PROCEDURES FOR PLACEMENT ON THE TAX
ROLL.

WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, (hereafter referred to as the “City Council”) desires to initiate proceedings to levy special assessments for delinquent trash and sewer bills for the 2025-2026 fiscal year and place these assessments on the tax roll; and,
WHEREAS, the City Council intends to provide notice of its intention to levy special assessments for the collection of delinquent trash and sewer bills from property owners within the City, and place those assessments on the tax roll for fiscal year 2025-2026; and,
WHEREAS, the proceedings for the levy of special assessments are being conducted in accordance with Chapter 4.72 of the Grand Terrace Municipal Code, Health and Safety Code section 5471, Government Code sections 38790.1, 25830, 25831, and 5471,and Public Resources Code Section 40059, and the provisions of Articles XIII C and XIII D of the California Constitution (Proposition 218), which govern the process for collecting delinquent property-related charges, including the public hearing and notification requirements; and,
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Grand Terrace does hereby resolve, determine and order as follows:

SECTION 1. That the above recitals are all true and correct.

SECTION 2. That the City Council hereby initiates proceedings to levy special assessments for delinquent trash and sewer bills for the 2025-2026 fiscal year and to place these assessments on the tax roll.

SECTION 3. That the City Manager, or their designee, is hereby ordered to prepare and file a report for the proposed special assessments related to delinquent trash and sewer bills in accordance with the relevant provisions of Chapter 4.72 of the Grand Terrace Municipal Code, Health and Safety Code section 5471, Government Code sections 38790.1, 25830, 25831, and 5471,and Public Resources Code Section 40059 Proposition 218 (Articles XIII C and XIII D of the California Constitution).

SECTION 4. That upon completion, the report shall be filed with the City Clerk, who will submit it to the City Council for review and consideration prior to the public hearing on the proposed assessments.

PASSED, APPROVED AND ADOPTED this 13th day of May, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:
__________________________ __________________________
Daysi Alcocer Bill Hussey
City Clerk, City of Grand Terrace Mayor, City of Grand Terrace

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF GRAND TERRACE )
I, __________________, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2025- ________, was duly passed, approved, and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 13th day of May 2025, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

EXECUTED this 13th day of May 2025, at Grand Terrace, California.

_________________________________
Daysi Alcocer
City Clerk for the City of Grand Terrace
[SEAL]

AGENDA REPORT
MEETING DATE: May 13, 2025
TITLE: Intent to Update Facility Use Fees
PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: Approve the intent to hold a public hearing on the revised Facility Use Agreement, which includes clarifying applicant responsibilities, implementing a setup and breakdown fee, and restricting rentals to individuals or organizations listed on the original agreement. The public hearing is scheduled for May 27, 2025.
2030 VISION STATEMENT:

This staff report supports Goal #4: 'Develop and Implement Successful Partnerships.' BACKGROUND:

In 1994 and 2002, the City Council adopted park policies and fee structures, with the 2002 update clarifying the Facility Use Agreement and introducing a temporary discounted rate for ballfield lighting.

In 2012, staff developed a comprehensive Facility Use Policy to improve facility management. In 2017, the City entered into a 10-year licensing agreement with CJUSD for shared use of Terrace Hills Middle School’s pool and soccer fields.

Staff has revised the Facility Use Agreement multiple times to clarify applicant responsibilities for using City fields, facilities, and park shelters. These revisions ensure proper maintenance and accessible use of facilities like the Senior Center and Community Room. The most recent fee structure balances affordability for non-profits with cost recovery, including registration, cleaning, and staff call-out fees. The last update to these fees occurred on November 12, 2024.

DISCUSSION:

The revised Facility Use Agreement clarifies applicant responsibilities for using City facilities. Priority scheduling will continue for the Grand Terrace Community Soccer Club, Grand Terrace Titans, and Grand Terrace Little League, who will have 30 days after their season ends to schedule the following season. After this period, dates will be made available to the public.

To better manage the increased workload on our five-person Public Works maintenance staff, who are often pulled from other critical tasks for facility setup and breakdowns, staff recommends implementing a $50 fee for setup and a $50 fee for breakdown, which includes returning the room to its standard layout. This fee can be waived if the applicant sets up and returns the room to its standard layout themselves. This fee will apply to all nonprofits and community-based groups per event. This will help ensure that staff can focus on their essential duties while maintaining the quality of the facilities.

Additionally, the revised agreement specifies that shelters and fields cannot be rented out to

individuals or organizations not listed on the original agreement. If this occurs, the agreement will be terminated, and both rental and deposit funds will be forfeited by the individual or organization that granted access. Future reservation privileges may also be terminated at the discretion of the City Manager.

Lastly, the City Manager retains the authority to grant exceptions to any rules or fees in the Facility Use Agreement should specific circumstances or community needs warrant such a decision.

This revised Facility Use Agreement will be discussed at a public hearing scheduled for May 27, 2025.

ENVIRONMENTAL IMPACT:

No environmental impact.

FISCAL IMPACT:

The revised Facility Use Agreement is anticipated to generate additional revenue through the implementation of various facility usage fees, which will support the maintenance and operational costs of City facilities. Additionally, the structured fee schedule for sports leagues and community organizations will promote equitable access while ensuring cost recovery for the City’s resources.

If you answered yes to any of the above questions, please explain:

Event Date(s):

Expected Attendance:

Event Details:

P Event End Time: ark & Shelter(s):

Facility: Event Start Time:
am/pm
am/pm
Applicant’s Name:

Street Address:

Phone Number:

E-Mail:

Initials:

City: Zip:

Non-Profit Tax ID 501 (c)(3)#:

Organization:

Will there be food
vendors?*
Will vendors be
accepting money?**
Will there be live
entertainment (DJ/Band)?**
Will food and
beverages be served?
W Yes No ill there be music?
Yes No
Yes No
Yes No
Yes No
*Proof of liability insurance
may be required
**Vendors must provide County
Healthy Permit and/or City Business
License

FACILITY USE APPLICATION
Welcome to the City of Grand Terrace! This reservation request is not an approved contract for facility rental. Please submit the Field and Facility Use Application at least 60 days before events or within 14 days for park shelter reservations to allow for adequate approval time. Park shelters require a minimum reservation time of 2 hours. The registration fee is nonrefundable. Staff review, security services, and liability insurance may be necessary. Please refrain from advertising your event until approval is issued. Please initial here to acknowledge that you have read, understood, and agree to this information.

STAFF USE ONLY
Non-Profit or Community Based Organization Fee Structure A $10 registration fee is required per fiscal year, and organizations have the flexibility to schedule events in the Community Room and Senior Center throughout the fiscal year. Please be aware that events organized by these groups may be subject to cancellation with notice to accommodate the City's needs.

Non-Refundable Registration Fee:
$10
Rental Fee: Deposit: Staffing Fee: Cleaning Fee: Amount Due:

Health Permit
501(c)(3)Letter of Determination
Insurance
Equipment Rental Form
Other:

Facility Use Application Received Date:

Received By:

Approved By:

Enter into GovPilot: / /
Reference#:

Five Business Days Prior to Event:

I acknowledge that I am a nonprofit or community based organization, as outlined in the FUA definitions.

I acknowledge that the permit expires on June 30th.

I acknowledge that my organization can schedule events Monday through Thursday from 7 AM to 10 PM, with the Senior Center available after 3 PM. Events scheduled on Fridays after 5 PM, as well as on Saturdays and Sundays, will be charged at the Grand Terrace resident rate.

Facilities Rental Fees
Any person, group, or organization wishing to use City facilities must pay the rates set forth below. Fees will be periodically reviewed and may be recommended for revision by the City Council if necessary. Fees may be waived at the discretion of the City Manager.

COMMUNITY ROOM OR SENIOR CENTER
Maximum Occupancy:
(50) Community Room
(120) Senior Center
Grand Terrace Residents $30.00 per hour
Non-Grand Terrace Residents $50.00 per hour
Non-Profits or Community Based Groups No Charge
All event and room reservations require the following:
$10.00 Registration Fee (Non-Refundable)
$200.00 Refundable Deposit – Refunded after a post-event inspection confirms no damages. This does not apply to non-profits or community-based groups
Field lighting fees will automatically apply to scheduled usage after dusk OUTDOOR PARK SHELTERS Maximum Occupancy: 50
Grand Terrace Residents $10.00 per hour, minimum 2-hour rental Non-Grand Terrace Residents $15.00 per hour, minimum 2-hour rental All park reservations require the following:
$10.00 Registration Fee (Non-Refundable)
$50.00 Refundable Deposit – Refund issued upon confirmation of no damages, decorations, or trash left behind

COURT AND FIELD RENTAL
GTCSC, GTLL, GTT: $5 per player during league term Due at the end of the first month of the term Teams, Private Use, or Team Practices (including league teams)
Hourly Rate: $50.00 per hour
Flat Rate: $800.00 for 32 hours of use per fiscal year
Basketball Teams: $3 per player per agreement term Due at the end of the first month of the agreement term $10.00 Registration Fee (Non-Refundable)
$200.00 Refundable Deposit (Excluding designated leagues, subject to no damages to the field or buildings during reservation) STAFF CALL-OUT & FOOD AND BEVERAGE CLEANUP FEE – AS REQUIRED $50.00 per hour, (2-hour minimum) - Staff Call-Out
$32.00 per hour (2-hour minimum) - Food and Beverage Fee required when served in Senior Center or Community Room

FIELD LIGHTING FOR LITTLE LEAGUE, SOCCER, AND FOOTBALL
$20.00 per hour Due at the end of the agreement term

BASKETBALL COURT LIGHTING
$2.00 per hour Due at the end of agreement term

AGENDA REPORT
MEETING DATE: May 13, 2025
TITLE: Approval of a Public Convenience or Necessity for an Off-Sale General (Type 21) Alcoholic Beverage Retail License issued by the California Department of Alcoholic Beverage Control (ABC) for the Applicant, Mr. Ghatas Roumah, for their business the Grand Terrace Market located at 12490 Michigan Avenue, Grand Terrace, CA 92313 (APN 116718111)
PRESENTED BY: Gabriel Arguelles, Assistant Planner
RECOMMENDATION:
2030 VISION STATEMENT:

BACKGROUND:

DISCUSSION:

ENVIRONMENTAL IMPACT:

FISCAL IMPACT:

01247.0005 2004707.1

AGENDA REPORT
MEETING DATE: May 13, 2025
TO: CITY COUNCIL
FROM: Gabriel Arguelles, Assistant Planner
Scott Hutter, Planning Director
TITLE: Approval of a Public Convenience or Necessity for an Off-Sale General (Type 21) Alcoholic Beverage Retail License issued by the California Department of Alcoholic Beverage Control (ABC) for the Applicant, Mr. Ghatas Roumah, for their business the Grand Terrace Market located at 12490 Michigan Avenue, Grand Terrace, CA 92313 (APN 116718111)
RECOMMENDATION:

It is recommended that the City Council take the following actions:
1) Approve a Resolution (Attachment 1) making a positive finding for Public Convenience or Necessity for issuance of an Off-Sale General Liquor License for the Grand Terrace Market; and
2) Determine that the positive finding for Public Convenience or Necessity is exempt from CEQA pursuant to CEQA Guidelines Section 15061 (B)(3) – Common Sense Exemption; and
3) Direct Planning Staff to transmit the attached Public Convenience or Necessity letter (Attachment 1 EXHIBIT A) to the State Department of Alcoholic beverage Control (ABC) in support of the Type 21 liquor license at the Grand Terrace Market. 2030 VISION STATEMENT:

This project supports the City’s vision of a vibrant and diverse local economy. It promotes reinvestment into existing properties and businesses with the remodel and reopening of the Grand Terrace Market. The Grand Terrace Market is a long-time staple of the community that has provided decades of convenient groceries to the community in a smalltown neighborhood setting.

SUMMARY:

The Grand Terrace Market is undergoing renovations and is poised to reopen soon. The ownership of the market has made an application (Attachment 2) to the State Department of Alcoholic Beverage Control (“ABC”) for a Type 21 license. The ABC informed the applicant that they must submit a letter from the city in support of the requested license, referred to as a Letter of Public Convenience or Necessity (“PCN”). The ownership of the Grand Terrace Market has made an application with the City Planning Department requesting that the City please process their request and issue the PCN letter. The location of the market has made it convenient for employees of local businesses and residents to shop lite grocery items without having to leave

01247.0005 2004707.1
the neighborhood to shop on Barton Road or other nearby commercial corridors. A public convenience would be served by the Grand Terrace Market reopening and having a Type 21 license.

BACKGROUND:

The existing Grand Terrace Market has been vacant for several years. State online records query revealed that all previous operators of the market, from 1991 to present, had operated the market in good standing with Type 20 and Type 21 liquor licenses, issued by the Department of Alcoholic Beverage Control (“ABC”). Type 20 liquor licenses allow for the sale of beer and wine for offsite consumption. Type 21 licenses allow the sale of beer, wine and distilled spirits for offsite consumption. A chronology of the past liquor licenses at the Grand Terrace Market are listed in Table 1.

Table 1: Historical Liquor Licenses at Grand Terrace Market Type Description Issue
Date
Expiration
Date
Number Census Tract
20 Off-Sale Beer &
Wine
1991 2005 255864 0071.06
21 Off-Sale
General
2004 2006 411948 0071.06
20 Off-Sale Beer &
Wine
2005 2007 429469 0071.06
20 Off-Sale Beer &
Wine
2006 2010 444561 0071.06
20 Off-Sale Beer &
Wine
2009 2019 483971 0071.06
20 Off-Sale Beer &
Wine
2019 Withdrawn 605361 0071.06
21 Off-Sale
General
2025 Pending 662946 0071.06
Data source:
https://www.abc.ca.gov/licensing/license-lookup/singlelicense/?RPTTYPE=13&ADDRESS=12490&CITY=GRAND+TERRACE ANALYSIS:

A determination of public convenience or necessity (PCN) is required when the ABC determines that there is an “over concentration” of off-sale licenses (Type 20 and 21) within a census tract.

The Grand Terrace Market is in census tract 71.06, which encompasses the entire southwest portion of the City. This census tract includes the entire commercial corridor on the south side of Barton Road between Mount Vernon Avenue and Interstate 215.

To determine the number of off-sale licenses that should be issued in a census tract, the ABC uses a simple ratio of one license per 1,409 persons in the census tract for off-sale. For census tract 71.06, which has a population of 4,254 persons, there should be a maximum of three (3) offsale licenses and there are currently 8 (see table 2 below), meaning that there is an overPage 606 of 742 01247.0005 2004707.1
concentration of licenses within the census tract. However, as this is a premise that has operated historically over the last 35 years, within census tract 71.06 in good standing with an ABC license, there is no new significant impact. Over-concentration does not mean that negative or adverse impacts have occurred within the census tract; just that based on the ratio used, there are more licenses existing than mathematically permitted. Also, to provide perspective, it should be noted that the census tract contains the large Barton Road Specific Plan commercial corridor, made up of many retail and convenience stores, and service stations, where concentration of ABC licenses are more likely to occur.

Table 2: Active Off-Sale Licenses Census Tract 71.06
Type Description Number Address Business
21 Off-Sale General 315652 22087 Barton Rd Qwik Stop at Arco 20 Off-Sale Beer & Wine 378934 22045 Barton Rd Kero Mina Marketplace Inc (Circle K at Mobil)
20 Off-Sale Beer & Wine 393287 22483 Barton Rd G & M Oil 105 (Extra Mile at Chevron)
21 Off-Sale General 477744 12071 Mt Vernon
Ave
CVS Pharmacy Store 4151
21 Off-Sale General 508325 22201 Barton Rd Stater Bros Market 20 Off-Sale Beer & Wine 518329 1631 Baines, Ave.

Sacramento CA
Alma De La Vina
(Internet Sales Only)
21 Off-Sale General 621361 22441 Barton Rd Grocery Outlet 21 Off-Sale General 664684 22493 Barton Rd Grand Terrace Liquor Grand Terrace is not identified on the ABCs Moratorium Cities – Section 23817.5 B.P. Code – list, effective as of January 1, 2023, and in effect until recalculated in approximately five years, in accordance with Section 23817.9.

The subject site is zoned Commercial Manufacturing District (“CM”) which encourages the development of combined commercial and light manufacturing uses and allows the sales of alcoholic beverages “liquor stores” which are “P” permitted “use by right” and are not subject to a Conditional Use Permit (CUP).

Census Tract 71.06; San Bernardino County; California is a Census Tract located in San Bernardino County, California and is outlined in blue in the map below on the following page.

01247.0005 2004707.1
Map source:
https://data.census.gov/profile/Census_Tract_71.06;_San_Bernardino_County;_California?g=14 00000US06071007106
ENVIRONMENTAL REVIEW:

The request for Determination of Public Convenience or Necessity, hereinafter (“project”) is exempt from California Environmental Quality Act (CEQA) review under §15061(b)(3) of the CEQA Guidelines because a Determination of Public Convenience or Necessity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the Public Convenience or Necessity in question may have a significant effect on the environment, therefore the Public Convenience or Necessity determination is not subject to CEQA. A Notice of Exemption will be filed for this project (Attachment 3).

FINDING:

Grand Terrace Market is a small neighborhood market providing grocery items and beverages for its customers. Like other grocery and convenience stores, Grand Terrace Market provides beer, wine and distilled spirits sales for the convenience of their customers, thereby providing a fullservice shopping trip and reducing vehicle miles traveled.

Main Street
Barton Road
Mount Vernon Avenue
215

01247.0005 2004707.1
The location of the Grand Terrace Market on the northwest corner of Michigan Avenue and Van Buren Street is in an ideal location to conveniently serve employees of the City’s largest employer (Wilden Pump & Engineering/Dover Pump Solutions Group) and the residents of surrounding residential neighborhoods.

A public convenience would be served by the Type-21 off-sale general license authorizing the sale of beer, wine and distilled spirits for off-premises consumption in conjunction with the operation of the Grand Terrace Market located at 12490 Michigan Ave in the CM Zone.

An article in the local City News Group Paper titles “A Beloved Community Gem Returns” by Ruby Stephenson, Community Writer, highlights the importance of the Grand Terrace Market beyond just its convenience factor, but also speaks to its importance to the fabric of the community “where friendships flourish, traditions continue, and local flavors abound.” The full article by Ruby Stephenson can be found online in the hyperlink below and is also provided as Attachment 4 for reference.
https://www.citynewsgroup.com/articles/a-beloved-community-gem-returns CONCLUSION:

Staff recommend that the City Council approve a resolution (Attachment 1) making a positive finding of Public Convenience or Necessity for the Type 21 Liquor License at the Grand Terrace Market and authorize staff to forward the resolution via a letter to the ABC (EXHIBIT A to Attachment 1).

FISCAL IMPACT:

The continued use and operation of the property as the Grand Terrace Market will assist in the generation of additional sales and use tax revenues to the City, as well as assist in the creation and maintenance of additional jobs and economic opportunities for the residents of the City, and therefore the City desires the business reopen after being closed for the past several years. The applicant will pay annual business license fees.

ATTACHMENTS:
1) Resolution
2) State ABC Application
3) CEQA NOE
4) Newspaper Article

ATTACHMENT 1

01247.0005 2004706.1
RESOLUTION NO. 2025-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE,

CALIFORNIA, FINDING AND DETERMINING THAT THE PUBLIC

CONVENIENCE OR NECESSITY WOULD BE SERVED BY THE ISSUANCE OF AN OFF-SALE GENERAL (TYPE-21 ALCOHOLIC BEVERAGE CONTROL LICENSE) FOR THE PREMISES LOCATED AT 12490 MICHIGAN STREET, GRAND TERRACE, CA 92313 (GRAND TERRACE MARKET) APN 116718111,

AND FINDING THAT THE DETERMINATION OF PUBLIC CONVENIENCE OR

NECESSITY IS EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3) - COMMON SENSE EXEMPTION.

WHEREAS, pursuant to applicable provisions of the Business and Professions Code of the State of California, the Department of Alcoholic Beverage Control (hereinafter the “ABC”) is charged with the responsibility of reviewing applications and issuance of licenses (“license”) for the sale and/or manufacture of alcoholic beverages in the State of California; and WHEREAS, Section 23958 of the Business and Professions Code provides that the ABC shall deny an application for a license if issuance of that license would tend to create a law enforcement problem, or if issuance would result in or add to an undue concentration of licenses, except as provided in Section 23958.4 of said Business and Professions Code; and WHEREAS, Section 23958.4 of the Business and Professions Code provides that, notwithstanding the limitations of Section 23958, the ABC shall issue a license if the applicant shows that public convenience or necessity would be served by the issuance of such license; and WHEREAS, pursuant to Section 23958.4 of the Business and Professions Code, the local governing body in this case, the “City Council,” has the discretion to determine when public convenience or necessity would be served by allowing an alcohol license in an area where there is an over concentration of licenses or where there is high crime; and WHEREAS, Toumah Ghatas of Grand Terrace Market (“Applicant”) located at 12490 Michigan Ave has petitioned the ABC for Off-Sale General (Type 21) License to augment their primary operations as a neighborhood convenience store known as the Grand Terrace Market; and WHEREAS, a Type-21 General is a license that is issued to retail stores and it authorizes the sale of beer, wine and distilled spirits for consumption off the premises where sold, and WHEREAS, under state law Section 23790 of the Business and Professions Code, the ABC may not issue a liquor license if it violates an existing local zoning ordinance; and WHEREAS, the subject site is zoned Commercial Manufacturing District (“CM”) which encourages the development of combined commercial and light manufacturing uses and allows the sales of alcoholic beverages “liquor stores” which are “P” permitted “use by right” and are not subject to a Conditional Use Permit (CUP); and
WHEREAS, the subject business (Grand Terrace Market) is in Census Tract 71.06 with population such that the ABC may permit up to three (3) off-sale licenses before an undue concentration would exist, and there is currently eight (8) off-sale Type 20 and 21 licenses in Census Tract 71.06 resulting in an over concentration of licenses; and

01247.0005 2004706.1
WHEREAS, the subject business (Grand Terrace Market) is in Census Tract 71.06 Grand Terrace Market is not located in an excess crime-reporting district as defined by Business and Professions Code Section 23958.4; and
WHEREAS, the subject business (Grand Terrace Market) is in Census Tract 71.06 and was reviewed by the Sheriff’s Office of the County of San Bernardino which serves as the local police force for the City, and the Sheriff’s Office had no objections to the Type 21 license at the Grand Terraced Market; and
WHEREAS, the request for Determination of Public Convenience or Necessity, hereinafter (“project”) is exempt from California Environmental Quality Act (CEQA) review under §15061(b)(3) of the CEQA Guidelines because a Determination of Public Convenience or Necessity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the Public Convenience or Necessity in question may have a significant effect on the environment, therefore the Public Convenience or Necessity determination is not subject to CEQA; and
WHEREAS, the City of Grand Terrace has prepared a Letter of Public Convenience or Necessity for transmittal to the State Department of Alcoholic Beverage Contril which is provided as “EXHIBIT A” attached hereto; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The foregoing recitals set forth above are true and correct and incorporated herein by this reference and made a part hereof.

SECTION 2. The City Council does find and determine that the continued use and operation of the property as the Grand Terrace Market will assist in the generation of additional sales and use tax revenues to City, as well as, assist in the creation and maintenance of additional jobs and economic opportunities for the residents of the City, and therefore the City desires to the business reopen after being closed for the past several years.

SECTION 3. The City Council does further find and determines that the location of the Grand Terrace Market on the northwest corner of Michigan Avenue and Van Buren Street is in an ideal location to conveniently serve employees of the City’s largest employer (Wilden Pump & Engineering/Dover Pump Solutions Group) and the residents of surrounding residential neighborhoods. The location of the market has made it convenient for employees of local businesses and residents to shop lite grocery items without having to leave the neighborhood to shop on Barton Road or other nearby commercial corridors. A public convenience would be served by the Grand Terrace Market reopening and having a Type 21 license.

SECTION 4. That the public convenience would be served by the Type-21 off-sale general license authorizing the sale of beer, wine and distilled spirits for off-premises consumption in conjunction with the operation of the Grand Terrace Market located at 12490 Michigan Ave in the CM Zone.

01247.0005 2004706.1
SECTION 5. Pursuant to §15061(b)(3) of the CEQA Guidelines, an activity is covered by the general rule that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA review. Making a Determination of Public Convenience or Necessity will not bring about any physical change to the environment. Therefore, in light of the whole record, it can be seen with certainty that the project has no potential to cause a significant effect on the environment. As such, the City finds that the project is exempt from the provisions of CEQA pursuant to CEQA Guidelines Section 15061(b)(3) ("general rule exemption").

SECTION 6. The request for Public Convenience or Necessity Determination is hereby approved.

SECTION 7. The Planning Director or their designee is hereby authorized and directed to file a Notice of Exemption (NOE) with respect to the adoption of this Resolution.

SECTION 8. The Planning Director or their designee are authorized to transmit “EXHIBIT A” to the ABC and take any other necessary actions, sign any other documents or instruments, as may be necessary, to implement, and affect this Resolution on behalf of the City.

APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a Regular Meeting held on the 13th day of May 2025.

ATTEST:
__________________________ __________________________
Daysi Alcocer Bill Hussey
City Clerk Mayor

01247.0005 2004706.1

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) SS.

CITY OF GRAND TERRACE )
I Daysi Alcocer, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2025-__, was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, at the regular meeting of said City Council held on the 13th day of May 2025, and that and that it was adopted by the called vote as follows:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:

Executed this 13th day of May 2025, at Grand Terrace, California. ___________________________
Daysi Alcocer
City Clerk

EXHIBIT A

01247.0005 2004706.1
May 14, 2025
Christian Thomas
Licensing Program Representative II
Department of Alcoholic Beverage Control Board
3737 Main Street, Suite 900
Riverside, CA 92501-3337
SUBJECT: DECLARATION AND STATEMENT OF “PUBLIC CONVENIENCE OR NECESSITY” FOR THE TYPE 21, OFF-SALE GENERAL LICENSE FOR THE GRAND TERRACE MARKET, LOCATED AT 12490 MICHIGAN AVENUE, GRAND TERRACE, CA 92313
Dear Mr. Thomas:

This letter is to inform you that the Grand Terrace City Council made a positive finding of Public Convenience or Necessity for a Type 21 - Off-Sale General License for the Grand Terrace Market during their regular meeting held on May 13, 2025.

The City Council approved a resolution making a positive finding of “public convenience or necessity” and authorized staff to write a transmittal letter which would allow the business owner(s) and operators of the Grand Terrace Market to sell alcohol beverages including beer, wine and distilled spirits under a Type 21 off-sale general license. The location of the Grand Terrace Market is convenient for nearby businesses and their employees, local residents in surrounding neighborhoods, and those motorists and pedestrians that frequent Michigan Avenue. The historical record shows that the Grand Terrace Market has conveniently served the local community for decades with Type 20 and Type 21 licenses, and there is no record of issues or concerns on file with the City.

This public convenience or necessity request was also reviewed by the Sheriff’s Office of the County of San Bernardino which serves as the local police force for the City. The Sheriff’s Office had no objections to the Type 21 license at the Grand Terraced Market. The Type 21 license will not be a detriment to the surrounding neighborhood and public. The Grand Terrace Market is not located in an excess crime-reporting district as defined by Business and Professions Code Section 23958.4.

A copy of the City Council Resolution is attached to this letter. Should you have any questions, please feel free to contact Grand Terrace Planning & Development Services at (909) 954-5176.

Respectfully submitted,
Gabriel Arguelles
Assistant Planner
Enclosure: CC Resolution

22795 Barton Road, Grand Terrace, California, 92313-5295 909/824-6621

CITY OF GRAND TERRACE

NOTICE OF EXEMPTION
TO: Clerk of the Board of Supervisors FROM: Planning and Development County of San Bernardino Services Department
385 N. Arrowhead Avenue, 2nd Floor City of Grand Terrace San Bernardino, CA 92415-0130 22795 Barton Road
Grand Terrace, CA 92313
Project Title: Approval of a Public Convenience or Necessity for an Off-Sale General (Type 21) Alcoholic Beverage Retail License issued by the California Department of Alcoholic Beverage Control (ABC) for the Applicant, Mr. Ghatas Roumah, for their business the Grand Terrace Market located at 12490 Michigan Avenue, Grand Terrace, CA 92313 (APN 116718111) Project Location – Specific: 12490 Michigan Street, Grand Terrace, CA 923213 (APN 116718111) Description of Project: Positive finding and determination that the public convenience or necessity would be served by the issuance of an off-sale general (Typle-21 Alcoholic Beverage Control License) for the premises of the Grand Terrace Market.

Name of Public Agency Approving Project: Grand Terrace City Council Name of Person or Agency Carrying out Project: City of Grand Terrace Planning Department Exempt Status: Environmental Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines.

Reasons Why Project is Exempt: The request for Determination of Public Convenience or Necessity, hereinafter (“project”) is exempt from California Environmental Quality Act (CEQA) review under §15061(b)(3) of the CEQA Guidelines because a Determination of Public Convenience or Necessity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the Public Convenience or Necessity in question may have a significant effect on the environment, therefore the Public Convenience or Necessity determination is not subject to CEQA
Lead Agency or Contact Person: Telephone/Email:
(909) 954-5177 office
[email protected]
______________________________ _________________
Scott Hutter Date
Planning Director
City of Grand Terrace
ATTACHMENT 3

AGENDA REPORT
MEETING DATE: May 13, 2025
TO: CITY COUNCIL
FROM: Scott Hutter, Planning & Development Services Director AGENDA TITLE: Zoning Code Amendment (ZCA) 24-04: Second Reading and Adoption of an Ordinance Amending the Grand Terrace Municipal Code Chapter 5.06 (Home Occupation Permits); Chapter 5.40 (Garage Sales); Chapter 5.42 (Integrated Waste Management); Chapter 5.48 (Massage Parlors and Massage Technicians); Chapter 8.108 (Noise); Chapter 8.112 (Fireworks); Chapter 9.05 (Vending on City Sidewalks); Chapter 10.16 (Storage of Vehicles – Intersection Obstruction); Chapter 12.32 (Conduct on Public Property – Parks); Chapter 12.56 (Wireless Telecommunications Facilities in the Public Right-Of-Way); Chapter 15.56 (Water Efficient Landscape); Chapter 18.10 (Residential Districts); Chapter

18.53 (AG Agricultural Overlay District); Chapter 18.56 (AG-2 Agricultural 2 Overlay District); Chapter 18.64 (Objective Design Standards); Chapter 18.80 (Signs); and Chapter 18.82 (Standards for Specified Land Uses and Activities), and a Determination That ZCA 24-04 is Exempt From CEQA Pursuant to CEQA Guidelines Section §15061(b)(3) – Common Sense Exemption.)
RECOMMENDATION:

It is recommended that the City Council conduct the second reading and direct the City Attorney to read the ordinance by title only, waive reading of, and adopt, “AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING CITY MUNICIPAL CODE CHAPTER 5.06 (HOME OCCUPATION PERMITS); CHAPTER 5.40 (GARAGE SALES); CHAPTER 5.42 (INTEGRATED WASTE MANAGEMENT); CHAPTER 5.48 (MASSAGE PARLORS AND MASSAGE TECHNICIANS); CHAPTER 8.108 (NOISE); CHAPTER 8.112 (FIREWORKS); CHAPTER 9.05 (VENDING ON CITY SIDEWALKS); CHAPTER 10.16 (STORAGE OF VEHICLES – INTERSECTION OBSTRUCTION); CHAPTER 12.32 (CONDUCT ON PUBLIC PROPERTY – PARKS); CHAPTER 12.56 (WIRELESS TELECOMMUNICATIONS FACILITIES IN THE PUBLIC RIGHT-OF-WAY); CHAPTER 15.56 (WATER EFFICIENT LANDSCAPE); CHAPTER 18.10 (RESIDENTIAL DISTRICTS); CHAPTER 18.53 (AG AGRICULTURAL OVERLAY DISTRICT); CHAPTER 18.56 (AG-2 AGRICULTURAL 2 OVERLAY DISTRICT); CHAPTER 18.64 (OBJECTIVE DESIGN STANDARDS); CHAPTER

18.80 (SIGNS); AND CHAPTER 18.82 (STANDARDS FOR SPECIFIED LAND USES AND ACTIVITIES); AND DETERMINE THAT ZCA 24-04 ENVIRONMENTALLY EXEMPT PURSUANT TO SECTION 15061(B)(3) OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES.”

SUMMARY:

The City Council conducted a duly noticed Public Hearing on April 8, 2025, for the aforementioned Ordinance which is provided as Attachment 1 to this agenda staff report. For this Ordinance to become effective, the City Council needs to conduct the second reading of the Ordinance to adopt it. Once the Ordinance is adopted it will become effective in thirty (30) days.

BACKGROUND:

At their April 8, 2025, meeting, the City Council acted to approve Zone Change Amendment (ZCA) 24-04 to make changes to its Municipal Code by introduction of this Ordinance. This Ordinance approving ZCA 24-04 represents Planning Staffs proposed edits, the Planning Commission/Site and Architectural Review Boards recommendations, and the City Councils recommendations.

ANALYSIS:

The Zoning Code Amendment (ZCA) 24-04 amends the City’s Municipal Code and a summary of the text edits to the Municipal Code in ZCA 24-04 are listed below in chronological order:

1. Amend Section 5.06.050 (Evaluation and Notice) of Chapter 5.06 (Home Occupation Permits).

2. Amend Section 5.06.060 (Decision to Approve of Deny) of Chapter 5.06 (Home Occupation Permits).

3. Amend Section 5.40.050 (Length – Frequency - Hours) of Chapter 5.40 (Garage Sales).

4. Amend Section 5.42.160 (Frequency of Removal) of Chapter 5.42 (Integrated Waste Management).

5. Amend Section 5.48.110 (Hours of Operation – Food or Beverages) of Chapter 5.48 (Massage Clinics and Massage Technicians).

6. Amended Section 8.108.010 (Intent) of Chapter 8.108 (Noise).

7. Add new Section 8.108.020.020 (Definitions) of Chapter 8.108 (Noise).

8. Amend Section 8.108.030 (Loud, annoying, excessive and unnecessary noises prohibited) of Chapter 8.108 (Noise).

9. Amend Section 8.108.040 (Exemptions).

10. Amend Section 8.108.050 (Special Activities) of Chapter 8.108 (Noise).

11. Add Section 8.108.060 (Construction Activities) of Chapter 8.108 (Noise).

12. Amend Section 8.108.070 (Prohibited Noise) of Chapter 8.108 (Noise).

13. Add new Section 8.108.080 (Noise Performance Standards) of Chapter 8.108 (Noise).

14. Add new Section 8.108.090 (Mixed use development) of Chapter 8.108 (Noise).

15. Add new Section 8.108.100 (Infill single-family residential development) of Chapter 8.108 (Noise).

16. Add new Section 8.108.110 (Noise level measurement criteria) of Chapter 8.108 (Noise).

17. Added new Section 8.108.120 (Penalty for violation) of Chapter 8.108 (Noise).

18. Added new Section 8.108.130 (Penalty for public nuisance) of Chapter 8.108 (Noise).

19. Amend Section 8.112.010 (Dates and Hours of Sale and Discharge) of Chapter 8.112 (Fireworks).

20. Amend Section 9.05.010 (Definitions) of Chapter 9.05 (Vending on City Sidewalks).

21. Amend Section 9.05.020 (Selling Food or Merchandise – Operational Requirements) of Chapter 9.05 (Vending on City Sidewalks).

22. Amend Section 10.16.021 (Restriction of Commercial Vehicles in Front Yards, Paved Driveways and Side Yards of Residential Areas) of Chapter 10.16 (Storage of Vehicles – Intersection Obstruction).

23. Amend Section 12.32.140 (Park Hours) of Chapter 12.32 (Conduct on Public Property - Parks).

24. Amend Section 12.56.070 (Design and Development Standards) of Chapter 12.56 (Wireless Telecommunications Facilities in the Public Right-Of-Way).

25. Amend Section 15.56.130 (Irrigation Scheduling) of Chapter 15.56 (Water Efficient Landscape).

26. Amend Section 18.10.040 (Site Development Standards) of Chapter 18.10 (Residential Districts).

27. Amend Section 18.53.020 (Agricultural overlay standards) of Chapter 18.53 (AG Agricultural Overlay District).

28. Amend Section 18.56.030 (Conditional permitted uses) of Chapter 18.56 (AG-2 Agricultural 2 Overlay District).

29. Amend Section 18.64.040 (Sustainable Design) of Chapter 18.64 (Objective Design Standards).

30. Amend Section 18.80.050 (Signs on Public Property) of Chapter 18.80 (Signs).

31. Amend Section 18.80.130 (General Provisions) of Chapter 18.80 (Signs).

32. Amend Section 18.82.010 (Residential Care Facilities) of Chapter 18.82 (Standards for Specified Land Uses and Activities).

ENVIRONMENTAL REVIEW:

The Ordinance approving ZCA 24-04 is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) – Common Sense Exemption. The text amendments cleaning up the Municipal Code to improve consistency and streamline processes. Regular text edits to the Municipal Code is an activity that is covered by the commonsense exemption. CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the ZCA 24-04 activity will have a significant effect on the environment, the ZCA 24-04 activity is not subject to CEQA. The project will not have a significant effect on the environment because the text amendments to the Municipal Code are regulatory in nature. A Notice of Exemption (NOE) is provided as Attachment 2 to this agenda report and will be filed with the County and State after second reading.

CONCLUSION:

This Ordinance approving ZCA 24-04 is consistent with the spirit and intent of the Implementation Plan Goals 2.1 and 2.3 in that is the City conducting a periodical review of the Zoning Code and Municipal Code standards to assure effective regulation of land uses and noise. ZCA 24-04 will streamline and clarify existing regulations and establish new noise standards. There is no foreseeable detriment to the people working or living within the City resulting from the proposed ZCA 24-04.

ATTACHMENTS:
1) Ordinance for ZCA 24-04
2) Notice of Exemption (NOE)

Ordinance No. 366

ORDINANCE NO. 366

AN ORDINACE OF THE CITY COUNCIL OF GRAND TERRACE, CALIFORNIA, APPROVING ZONING CODE AMENDMENT (ZCA) 24-04, AMENDING THE GRAND TERRACE MUNICIPAL CODE CHAPTER 5.06 (HOME OCCUPATION PERMITS); CHAPTER 5.40 (GARAGE SALES); CHAPTER 5.42 (INTEGRATED WASTE MANAGEMENT); CHAPTER 5.48 (MASSAGE PARLORS AND
MASSAGE TECHNICIANS); CHAPTER 8.108 (NOISE); CHAPTER 8.112 (FIREWORKS); CHAPTER 9.05 (VENDING ON CITY SIDEWALKS); CHAPTER

10.16 (STORAGE OF VEHICLES – INTERSECTION OBSTRUCTION); CHAPTER 12.32 (CONDUCT ON PUBLIC PROPERTY – PARKS); CHAPTER

12.56 (WIRELESS TELECOMMUNICATIONS FACILITIES IN THE PUBLIC RIGHT-OF-WAY); CHAPTER 15.56 (WATER EFFICIENT LANDSCAPE); CHAPTER 18.10 (RESIDENTIAL DISTRICTS); CHAPTER 18.53 (AG AGRICULTURAL OVERLAY DISTRICT); CHAPTER 18.56 (AG-2
AGRICULTURAL 2 OVERLAY DISTRICT); CHAPTER 18.64 (OBJECTIVE DESIGN STANDARDS); CHAPTER 18.80 (SIGNS); AND CHAPTER 18.82 (STANDARDS FOR SPECIFIED LAND USES AND ACTIVITIES), AND A DETERMINATION THAT ZCA 24-04 IS EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINES SECTION 15061(B)(3) - COMMON SENSE EXEMPTION.

WHEREAS, the City of Grand Terrace (“City”) adopted a Zoning Code as set forth in Title 18 of the Grand Terrace Municipal Code, which has been amended from time to time; and WHEREAS, the City wishes to protect and preserve the quality of life throughout the City through effective land use and planning; and
WHEREAS, the Municipal Code and its Zoning are local law that regulates various aspects of how land can be used and what is acceptable and unacceptable with respect to noise; and
WHEREAS, Chapter 5.06 (Home Occupation Permits) establishes a process and criteria to regulate “commercial uses” associated with a residence where the business will clearly not alter the character of the residential environment, and WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 5.06.050 (Evaluation and Notice) of Chapter 5.06 (Home Occupation Permits) establishing timelines and a notification process for all owners of contiguous property to be used if the “home occupation” permit application is not compliant one or more of the required criteria; and WHEREAS, Chapter 5.40 (Garage Sales) establishes a process and criteria to regulate “garage sales” associated with a residentially zoned or occupied property, and WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 5.40.050 (Length – Frequency - Hours) of Chapter 5.40 (Garage Sales) specifying the hours when the garage sale can occur; and
WHEREAS, Chapter 5.42 (Integrated Waste Management) establishes a process and criteria to regulate “waste management services” within the City, and ATTACHMENT 1

Ordinance No. 366

WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 5.42.160 (Frequency of Removal) of Chapter 5.42 (Integrated Waste Management) relating to when the hours when waste collection can occur and whom at the City may modify said hours; and WHEREAS, Chapter 5.48 (Massage Parlors and Massage Technicians) establishes a process and criteria to regulate “massage” within the City, and WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 5.48.110 (Hours of Operation – Food or Beverages) of Chapter 5.48 (Massage Parlors and Massage Technicians) relating to when the hours when a massage establishment can occur; and WHEREAS, Chapter 8.108 (Noise) establishes a process and criteria to regulate “noise” within the City, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 8.108.010 (Intent), add Section 8.108.020 (Definitions), amend Section 8.108.030 (Loud, Annoying, Excessive and Unnecessary Noises Prohibits), amend Section 8.108.040 (Exemptions), amend Section 8.108.050 (Special Activities), add Section 8.108.060 (Construction Activities), amend Section 8.108.070 (Prohibited Noise), add Section 8.108.080 (Noise Performance Standards), add Section 8.108.090 (Mixed Use Development), add Section 8.108.100 (Infill Single-Family Residential Development), add Section 8.108.110 (Noise Level Measurement Criteria), amend Section 8.108.120 (Penalty For Violation), and add Section 8.108.130 (Penalty for Public Nuisance) to establish noise level limits and measurement criteria as a part of a comprehensive update to the noise standards; and
WHEREAS, Chapter 8.112 (Fireworks) establishes a process and criteria to regulate “safe and sane fireworks” within the City, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 8.112.010 (Dates and Hours of Sale and Discharge) of Chapter 8.112 (Fireworks) relating to when the hours when safe and sane fireworks can be discharged on the 4th of July; and WHEREAS, Chapter 9.05 (Vending on City Sidewalks) establishes a process and criteria to regulate “sidewalk vendors” within the City, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 9.05.010 (Definitions), and amend Section 9.05.020 (Selling Food or Merchandise – Operational Requirements) of Chapter 9.05 (Vending on City Sidewalks) relating to when the hours when vending can occur and incorporating a security camera requirement; and WHEREAS, Chapter 10.16 (Storage of Vehicles – Intersection Obstruction) establishes a process and criteria to regulate “commercial vehicles” within residentially zoned properties, and WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 10.16.021 (Restriction of Commercial Vehicles in Front Yards, Paved Driveways and Side Yards of Residential Areas) of Chapter 10.16 (Storage of Vehicles – Intersection Obstruction) relating to removal of recreational vehicles form the prohibited vehicles graphic as they are already regulated by a more recent Ordinance found in Section 18.60.030 (Parking Regulations of Chapter 18.60 (Off-Street Parking); and
WHEREAS, Chapter 12.32 (Conduct on Public Property - Parks) establishes a process

Ordinance No. 366

and criteria to regulate “Public Property” within the City, and WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 12.32.140 (Park Hours) of Chapter 12.32 (Conduct on Public Property - Parks) relating to when the hours when a City park can be open and whom at the City may modify said hours; and WHEREAS, Chapter 12.56 (Wireless Telecommunications Facilities in the Public RightOf-Way) establishes a process and criteria to regulate permitting, development, siting, installation, design, operation and maintenance of “wireless telecommunications facilities” in the City's public right-of-way, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 12.56.070 (Design and Development Standards) of Chapter 12.56 (Wireless Telecommunications Facilities in the Public Right-Of-Way) relating to when the hours when noise associated with a backup generator can occur; and
WHEREAS, Chapter 15.56 (Water Efficient Landscape) establishes a process and criteria to regulate “landscape irrigation” for water conservation purposes pursuant to State law within the City, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 15.56.130 (Irrigation Scheduling) of Chapter 15.56 (Water Efficient Landscape) to define overhead irrigation of residential and commercial landscape, so it is not confused with agricultural irrigation; and WHEREAS, Chapter 18.10 (Residential Districts) establishes a process and criteria to regulate “residential zones” within the City, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 18.10.040 (Site Development Standards) of Chapter 18.10 (Residential Districts) relating to the number or multiple family bedrooms and the minimum square feet for one, two, three, and four plus bedroom duplex, triplex, and multiple family construction; and
WHEREAS, Chapter 18.53 (AG Agricultural Overlay District) establishes the standards for the AG Overlay within the City, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 18.53.020 (Agricultural Overlay Standards) of Chapter 18.53 (AG Agricultural Overlay District) relating to the addition of a Conditional Use Permit (CUP) requirement for the “overhead irrigation” of orchards, groves, and other crops, and
WHEREAS, Chapter 18.56 (AG-2 Agricultural 2 Overlay District) establishes the standards for the AG-2 Overlay within the City, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 18.56.030 (Conditionally Permitted Uses) of Chapter 18.56 (AG-2 Agricultural 2 Overlay District) relating to the addition of a Conditional Use Permit (CUP) requirement for the “overhead irrigation” of orchards, groves, and other crops; and
WHEREAS, Chapter 18.64 (Objective Design Standards) establishes a process and design standards that are “objective” for multifamily residential development and mixed-use development with a residential component to ensure that such development is attractively

Ordinance No. 366

designed, maintains positive aesthetic characteristics, and to provide property owners and developers with predictable design approval standards for such development and establishes conditions and procedures for processing streamlined housing projects consistent with Government Code Section 65913.4 within the City, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 18.64.040 (Sustainable Design) of Chapter 18.64 (Objective Design Standards) relating to minimum Leadership in Energy and Environmental Design (LEED) certification requirement for an Objective Design Standards (ODS) development application within the City; and WHEREAS, Chapter 18.80 (Signs) establishes a process and criteria to regulate “signage” within the City, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 18.80.050 (Signs on Public Property) and Section 18.80.130 (General Provisions) of Chapter 18.80 (Signs) relating to hours when temporary signs displayed in the public right-of-way can occur and the prohibition of illuminated signs that face a residential use; and WHEREAS, Chapter 18.82 (Standards for Specified Land Uses and Activities) contains standards for unique land uses within the City, and
WHEREAS, Zoning Code Amendment 24-04 proposes to amend Section 18.82.010 (Residential Care Facilities) of Chapter 18.82 (Standards for Specified Land Uses and Activities) relating to when the hours when noise associated with outdoor activities at a residential care facility can occur; and
WHEREAS, state law requires that the City’s Zoning Code (Title 18 of the Grand Terrace Municipal Code) conform with the General Plan’s goals and policies, and WHEREAS, pursuant to Sections 65800 and 65850 of the California Government Code, the City may adopt ordinances to establish requirements for the regulation of land uses, in compliance with the California Government Code, and
WHEREAS, notice of the City Council Public Hearing concerning this Ordinance was duly published in a local newspaper at least ten (10) days prior to the Public Hearing and posted by the City Clerk in compliance with the City’s Zoning Code and City Council Resolution No. 2019- 24, Expanded Public Noticing and Outreach Policy for Public Hearings and Public Workshops; and
WHEREAS, Ordinance No. 366 approving Zoning Code Amendment (ZCA) 24-04 is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) – Common Sense Exemption in that the activity is covered by the general rule that CEQA applies only to projects, which have the potential for causing a significant effect on the environment and the Zoning Code update to establish noise standards, streamline Home Occupation Permits, and correct miscellaneous inconsistencies within the Municipal Code will not have a significant effect on the environment; and
WHEREAS, on November 21, 2024, the Planning Commission/Site and Architectural Review Board of the City of Grand Terrace conducted a duly noticed Public Hearing on Zoning Code Amendment (ZCA) 24-04 and considered testimony and evidence presented by the public, city staff, and other interested parties, at the Public Hearing held within respect thereto asking

Ordinance No. 366

staff incorporate the following changes:
1) Revise Chapter 5.40 GARAGE SALES to start at 7:00a.m. and to end at sunset and to use “sunset” uniformly throughout ZCA 24-04 in place of dusk; 2) Revise Chapter 5.42 INTEGRATED WASTE MANAGEMENT to use “or their designee” uniformly throughout ZCA 24-04;
3) Revise Chapter 8.108 NOISE to incorporate standards that address commercial and residential areas and ensure automotive repair ends at sunset; 4) Revise Chapter 9.05 VENDING ON CITY SIDEWALKS to require “sidewalk vending security camera” for all sidewalk vendors;
5) Revise Chapter 15.56 WATER EFFICIENT LANDSCAPE to address residential versus agricultural overhead irrigation and to check with the water purveyor; and WHEREAS, on January 16, 2025, the Planning Commission/Site and Architectural Review Board of the City of Grand Terrace reopened the duly noticed Public Hearing on Zoning Code Amendment (ZCA) 24-04 and at staffs request continued the public hearing to February 27, 2025, due to delays in agenda preparation arising from citywide storm power outages; and WHEREAS, on February 27, 2025, the Planning Commission/Site and Architectural Review Board of the City of Grand Terrace reopened the duly noticed Public Hearing on Zoning Code Amendment (ZCA) 24-04 and considered testimony and evidence presented by the public, city staff, and other interested parties, at the Public Hearing held within respect thereto; and WHEREAS, on February 27, 2025, the Planning Commission/Site and Architectural Review Board of the City of Grand Terrace concluded the Public Hearing with adoption of Planning Commission / Site and Architectural Review board Resolution recommending City Council approval of Zoning Code Amendment (ZCA) 24-04 along with the Commissions asking staff to incorporate the additional changes:
1) Revise Chapter 8.108 NOISE to add a new section under 8.108.030 EXEMPTIONS to address railroad and locomotive noise. The new section will exempt sounds and noise generated by railroad operations, including train whistles, horns, and warning signals, in compliance with applicable federal, state, or local regulations; 2) Revise Chapter 8.108 NOISE to add the phrase "approved by the City" to Section

8.108.030 F for clarity;
3) Revise Chapter 8.108 NOISE to eliminate Section 8.108.040 C and create a new section under 8.108.050 titled "Construction Activities"; 4) Revise Chapter 8.108 NOISE to specify the end of maintenance of real property at sunset and to consistently use the term "sunset" throughout ZCA 24-04, replacing "dusk";
5) Revise Chapter 8.108.050 PROHIBITED NOISE E. Jaime Needs to give us guidance on the language about legal recommendations about regulating locomotives;

Ordinance No. 366