Agenda packet, regular meeting — Grand Terrace City Council, May 12, 2026 (part 2 of 4)

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 14 (d) Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
(e) Builder’s Risk Insurance. Contractor shall maintain Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the Project and no coinsurance penalty provisions or provisional limit provisions. The policy must include: (1) coverage for any ensuing loss from faulty workmanship, nonconforming work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sub-limits sufficient to insure the full replacement value of any key equipment item; (6) ocean marine cargo coverage insuring any Project materials or supplies, if applicable; and (7) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Project site or any staging area. (f) Pollution Liability Insurance. Contractor shall maintain Environmental Impairment Liability insurance, written on a Contractor’s Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental, and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. All activities contemplated in this Agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the Project site to the final disposal location, including non-owned disposal sites. (g) Subcontractors. Contractor 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. (h) Additional Insurance. Policies of such other insurance, as may be required in the Contractor Modifications in Exhibit “B”.

5.2 General Insurance Requirements.
(a) Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(b) Duration of Coverage. Contractor shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the services hereunder by Contractor, its agents, representatives, employees or subcontractors. (c) Primary/noncontributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 15 to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(d) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. (e) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
(f) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors.
(g) Enforcement of Contract Provisions (non-estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(h) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any Party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(i) Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(j) Additional Insured Status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 16 be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(k) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (l) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass Through Clause. Contractor agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. (n) City’s Right to Revise Specifications. The City reserves the right at any time during the term of this Contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation.
(o) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(p) Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(q) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

5.3 Indemnification.

To the full extent permitted by law, Contractor 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, injuries or death of any person (including workers and the public), 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 provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 17 (“indemnitors”), or arising from Contractor’s or indemnitors’ reckless or willful misconduct, or arising from Contractor’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities (with legal counsel approved by City) and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith; (b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom; (c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor 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 Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees.

In addition, Contractor agrees to indemnify, defend and hold harmless the Indemnified Parties from, any and all claims and liabilities for any infringement of patent rights, copyrights or trademark on any person or persons in consequence of the use by the Indemnified Parties of articles to be supplied by Contractor under this Agreement, and of which the Contractor is not the patentee or assignee or has not the lawful right to sell the same.

Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contractor 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 Contractor in the performance of professional services and work 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 Contractor and shall survive termination of this Agreement.

Contractor’s obligations under this Section shall apply regardless of whether or not such claims or liabilities were caused in part or contributed to by the City or any Indemnified Parties. In instances where City or its Indemnified Parties is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of the City.

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 18

5.4 Notification of Third-Party Claims.

City shall timely notify Contractor of the receipt of any third-party claim relating to the work under this Agreement. City shall be entitled to recover from Contractor its reasonable costs incurred in providing such notification.

5.5 Performance and Labor Bonds.

Concurrently with execution of this Agreement, Contractor shall deliver to the City, the following:
(a) A performance bond in the amount of the Contract Sum of this Agreement, in the form provided by the City Clerk, which secures the faithful performance of this Agreement (“Performance Bond”).
(b) A labor and materials bond in the amount of the Contract Sum of this Agreement, in the form provided by the City Clerk, which secures the payment of all persons furnishing labor and/or materials in connection with the work under this Agreement (“Payment Bond”).

Both the Performance Bond and Payment Bond required under this Section 5.5 shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his/her power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement. .

5.6 Sufficiency of Insurer or Surety.

Insurance and bonds 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’s 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 the City (“Risk Manager”) due to unique circumstances. In addition, the insurance carrier must be currently authorized by the Insurance Commissioner to transact business of insurance or be on the List of Approved Surplus Line Insurers issued by the State of California. If this Agreement continues for more than 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 the City, the Contractor agrees that the minimum limits of the insurance policies and the bonds required by Section 5.5 may be changed accordingly upon receipt of written notice from the Risk Manager.

5.7 Substitution of Securities.

Pursuant to Public Contract Code Section 22300, substitution of eligible equivalent securities for any funds withheld to ensure performance under this Agreement may be permitted at the request and sole expense of the Contractor. Alternatively, the Contractor may, pursuant to an escrow agreement in a form prescribed by Public Contract Code Section 22300, request payment of retentions funds earned directly to the escrow agent at the sole expense of the Contractor.

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 19

5.8 Release of Securities.

City shall release the Performance and Payment Bonds when the following have occurred:
(a) Contractor has made a written request for release and provided evidence of satisfaction of all other requirements under Article 5 of this Agreement; (b) the work for the Project has been finally accepted by the City; and (c) after passage of the time within which lien claims are required to be made pursuant to applicable laws; if lien claims have been timely filed, City shall hold the Payment Bond until such claims have been resolved, Contractor has provided statutory bond, or otherwise as required by applicable law.

ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records.

Contractor shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies, certified and accurate copies of payroll records in compliance with all applicable laws, 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 3 years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the books and records may be given to City, and access shall be provided by Contractor’s successor in interest. Notwithstanding the above, the Contractor shall fully cooperate with the 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.

Contractor 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. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor 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 Contractor is providing design services, the cost of the Project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the Project being designed.

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 20

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”) prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor 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 the Contractor will be at the City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documents for its own use.

Contractor shall have an unrestricted right to 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 Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, Contractor 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 the City.

6.4 Confidentiality and Release of Information.
(a) information gained or work product produced by Contractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor 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) Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the 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 Contractor gives City notice of such court order or subpoena. (c) If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Contractor’s conduct. (d) Contractor shall promptly notify City should Contractor, 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 Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 21 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 Contractor 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 Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California.

7.2 Disputes.
(a) Default; Cure. In the event that Contractor is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, the City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant, in the sole and absolute discretion of the Project Manager. During the period of time that Contractor is in default, the City shall hold all invoices and shall proceed with payment on such invoices only when the default is cured to the satisfaction of the City. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Contractor’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement. (b) Dispute Resolution. This Agreement is subject to the provisions of Article 1.5 (commencing at Section 20104) of Division 2, Part 3 of the California Public Contract Code regarding the resolution of public works claims of less than $375,000. Additionally, Section 9204 of the California Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. Article 1.5 mandates certain procedures for the filing of claims and supporting documentation by the Contractor, for the response to such claims by the City, for a mandatory meet and confer conference upon the request of the Contractor, for mandatory non-binding mediation in the event litigation is commenced, and for mandatory judicial arbitration upon the failure to resolve the dispute through mediation. This Agreement hereby incorporates the provisions of Article 1.5 as though fully set forth herein and the intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code with respect to any such claims by Contractor. This Section shall be construed to be consistent with said statutes.

For purposes of these procedures, the term “claim(s)” means a separate demand by the Contractor, after the City has denied Contractor’s timely and duly made request for payment for extra work and/or a time extension, for (A) a time extension, (B) payment of money or damages arising from work done by or on behalf of the Contractor pursuant to this Agreement and payment of which is not otherwise expressly provided for or the Contractor is not otherwise entitled to, or (C) an amount the payment of which is disputed by the City.

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 22

7.3 Retention of Funds.

Contractor hereby authorizes City to deduct from any amount payable to Contractor (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 Contractor’s acts or omissions in performing or failing to perform Contractor’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 Contractor, 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 the Contractor to insure, indemnify, and protect City as elsewhere provided herein.

7.4 Waiver.

Acceptance by City of any work or services by Contractor 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 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, Contractor shall file a 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 Liquidated Damages.

Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Contractor and its sureties shall be liable for and shall pay to the City the sum of One Thousand Dollars and Zero Cents ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the services required hereunder, as specified in the Schedule of Performance (Exhibit “D”). The City may withhold from any monies payable on account of

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 23 services performed by the Contractor any accrued liquidated damages. Pursuant to Government Code Section 4215, Contractor shall not be assessed liquidated damages for delay in completion of the Project when such delay was caused by the failure of the public agency or owner of the utility to provide for removal or relocation of utility facilities.

7.8 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. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Contractor, except that where termination is due to the fault of the Contractor, the period of notice may be such shorter time as may be determined by the Contract Officer. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor 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 the Contractor has initiated termination, the Contractor 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.

7.9 Termination for Default of Contractor.

If termination is due to the failure of the Contractor 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 the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated.

7.10 Attorneys’ 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 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.

7.11 Unfair Business Practices Claims.

In entering into this Agreement, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700)

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 24 of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials related to this Agreement. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment by the Parties.

ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees.

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

8.2 Conflict of Interest.

Contractor 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 Contractor’s performance of services under this Agreement. Contractor 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. Contractor 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.

No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his / her financial interest or the financial interest of any corporation, partnership or association in which he/her is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination.

Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, 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. Contractor 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.

Contractor 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 Contractor 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,

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 25 Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.

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, California 92313, and in the case of the Contractor, to the person 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. All correspondence relating to this Agreement shall be serialized consecutively.

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 in accordance with California Code of Regulations Title 2 Section 22003 (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 paper-based 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 (and the documents incorporated herein) 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 Contractor and by the City Council. The Parties agree that this

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 26 requirement for written modifications cannot be waived and that any attempted waiver shall be void. Each and every provision of law and clause required by law to be inserted in this Agreement shall be deemed to be inserted herein, and this Agreement shall be read and enforced as though it were included herein. If through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon application of either Party, this Agreement shall forthwith be amended to make such insertion or correction/

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.

Contractor 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. Contractor 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.

Contractor’s Authorized Initials ___________________
Ronald Moore
President

9.7 Corporate Authority.

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 27 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 APPEAR ON THE FOLLOWING PAGE]

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PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 28 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
By:
___________________________________
Konrad Bolowich
City Manager
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
By:
___________________________________
Adrian R. Guerra
City Attorney
ATTEST:

By:
___________________________________
Daysi Alcocer
City Clerk
CONTRACTOR:

F.E.C. ELECTRIC, INC., a California corporation
By:
___________________________________
Name: Ronald Moore
Title: President
Email: [email protected]
By:
___________________________________
Name: (Insert Name)
Title: (Insert Title)
Email: Email Address
Address: ____________
Two corporate officer signatures required when Contractor 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. CONTRACTOR’S SIGNATURES SHALL BE DULY NOTARIZED UNLESS EXECUTED UTILIZING DIGITAL SIGNATURE IN ACCORDANCE WITH CALIFORNIA CODE OF REGULATIONS TITLE 2 SECTION 22003. IN

ADDITION, THE APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.

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01247.0001 2121128.2 4/28/2026 A-1
EXHIBIT “A”

SCOPE OF WORK
I. Contractor shall perform all of the work and comply with all of the specifications and requirements in Attachment 1 (Scope of Services) and Attachment 2 (Special Provisions) (collectively, the “Project Documents”) for the Project, including any documents or exhibits referenced therein.

II. Brief description of the work to be performed:

Contractor shall provide a complete turnkey retrofit of the existing sports field lighting systems at Veterans Freedom Park, located at 21950 Pico Street, Grand Terrace, California, with new LED sports lighting equipment, as identified in Attachment 1 (Scope of Services).

The purpose of this Project is to improve lighting performance, reduce energy consumption, and modernize the lighting control system for the sports fields. The Contractor shall furnish all labor, materials, equipment, supervision, transportation, and incidentals necessary to complete the work in accordance with the Project Documents.

Contractor shall comply with all special provisions describing the technical requirements for the LED Sports Field Lighting Retrofit, as identified in Attachment 2 (Special Provisions).

III. In addition to the requirements of Section 6.2, during performance of the work, Contractor 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.

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

V. Contractor shall provide safe and continuous passage for pedestrian and vehicular traffic in accordance with the Work Area Traffic Control Handbook (WATCH), latest edition; and shall observe and perform all traffic control safe protocols while working in the public right of way and upon any City facilities.

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01247.0001 2121128.2 4/28/2026 B-1
EXHIBIT “B”

CONTRACT MODIFICATIONS
(Superseding Contract Boilerplate)
Added text is indicated in bold italics, deleted text is indicated in strikethrough.

None.

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01247.0001 2121128.2 4/28/2026 C-1
EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. Contractor shall perform all work at the rates set forth in the Project Documents submitted as part of Contractor’s Proposal, and listed below:

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01247.0001 2121128.2 4/28/2026 C-2
II. A retention of five percent (5%) shall be held from each payment as a contract retention to be paid as part of the final payment upon satisfactory completion of services.

III. Within the budgeted amounts for each item in the Project Documents, and with the approval of the Contract Officer, funds may be shifted from one item’s subbudget to another so long as the Contract Sum is not exceeded per Section 2.1.

IV. The City will compensate Contractor 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 the Contract Sum, as provided in Section 2.1 of this Agreement. The Contract Sum consists of the total base bid of One Hundred Eighty-Three Thousand Seven Hundred Thirty-Three Dollars ($183,733.00), plus a ten percent (10%) contingency of Eighteen Thousand Three Hundred Seventy-Three Dollars ($18,373.00), for a total not-to-exceed amount of Two Hundred Two Thousand One Hundred Six Dollars ($202,106.00).

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01247.0001 2121128.2 4/28/2026 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”.

II. 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. All contracted work must be completed no later than [May 12, 2027].

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

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01247.0001 2121128.2 4/28/2026 D-1

PERFORMANCE BOND
WHEREAS, the CITY OF GRAND TERRACE, (“City”), has awarded to F.E.C.

ELECTRIC, INC., as Contractor (“Principal”), a Contract for the work entitled and described as follows:__________________________________________________; WHEREAS, the Contractor is required under the terms of said Contract to furnish a bond for the faithful performance of the Contract;
NOW, THEREFORE, we the undersigned Contractor and Surety, are held and firmly bound unto the City in the sum of Two Hundred Two Thousand One Hundred Six Dollars and Zero Cents ($202,106.00), this amount being not less than one hundred percent (100%) of the total Contract price, lawful money of the United States of America, for payment of which sum well and truly be made we bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. In case suit is brought upon this bond, the Surety will pay a reasonable attorney’s fee to the City in an amount to be fixed by the court.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bound Contractor, or its heirs, executors, administrators, successors, or assigns, shall in all things stand and abide by, well and truly keep and perform all undertakings, terms, covenants, conditions, and agreements in the said Contract and any alteration thereof, made as therein provided, all within the time and in the manner designated and in all respects according to their true intent and meaning, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

FURTHER, the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the Contract Documents or of the work to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of such change, extension of time, alteration, or modification of the Contract Documents or of the work to be performed thereunder.

Executed on , 2026.

PRINCIPAL
(Seal if Corporation) By
Title
(Attach Acknowledgment of Authorized Representative of Principal)

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01247.0001 2121128.2 4/28/2026 D-2
Any claims under this bond may be addressed to:
(name and address of Surety)
(name and address of Surety's agent for service
of
process in California, if different from above)
(telephone number of Surety's agent in
California)
(Attach Acknowledgment)
SURETY
By
(Attorney-in-Fact)
APPROVED:
(Attorney for CITY)
NOTICE:

No substitution or revision to this bond form will be accepted. Sureties must be authorized to do business in and have an agent for service of process in California. Certified copy of Power of Attorney must be attached.

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01247.0001 2121128.2 4/28/2026

PAYMENT BOND
(Labor and Material Bond)
WHEREAS, the CITY OF GRAND TERRACE, (“City”), has awarded to F.E.C.

ELECTRIC, INC., as Contractor (“Principal”), a Contract for the work entitled and described as follows:__________________________________________________; WHEREAS, said Contractor is required to furnish a bond in conjunction with said Contract, to secure the payment of claims of laborers, mechanics, material men, and other persons as provided by law;
NOW, THEREFORE, we the undersigned Contractor and Surety, are held and firmly bound unto the City in the sum of Two Hundred Two Thousand One Hundred Six Dollars and Zero Cents ($202,106.00) this amount being not less than one hundred percent (100%) of the total Contract price, lawful money of the United States of America, for payment of which sum well and truly be made we bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. In case suit is brought upon this bond, the Surety will pay a reasonable attorney’s fee to the City in an amount to be fixed by the court.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if said Contractor, its heirs, executors, administrators, successors, assigns, or subcontractor fails to pay: (1) for any work, materials, services, provisions, provender, or other supplies, or for the use of implements of machinery, used in, upon, for, or about the performance of the work to be done, or for any work or labor thereon of any kind; (2) for work performed by any of the persons named in Civil Code Section 9100; (3) for any amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract; and/or (4) for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Contractor and/or its subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, then the Surety herein will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void.

This bond shall inure to the benefit of any of the persons named in Civil Code Section 9100 so as to give a right of action to such persons or their assigns in any suit brought upon the bond. Moreover, if the City or any entity or person entitled to file stop payment notices is required to engage the services of an attorney in connection with the enforcement of this bond, each shall be liable for the reasonable attorney's fees incurred, with or without suit, in addition to the above sum.

Said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the Contract Documents or of the work to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of such change, extension of time, alteration, or modification of the Contract Documents or of the work to be performed thereunder.

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01247.0001 2121128.2 4/28/2026
Executed on , 2026.

PRINCIPAL
(Seal if Corporation) By
Title
(Attach Acknowledgment of Authorized Representative of Principal) Any claims under this bond may be addressed to:
(name and address of Surety)
(name and address of Surety's agent for service
of process in California, if different from above)
(telephone number of Surety's agent in
California)
(Attach Acknowledgment)
SURETY
By
(Attorney-in-Fact)
APPROVED:
(Attorney for CITY)
NOTICE:

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01247.0001 2121128.2 4/28/2026

WORKERS COMPENSATION INSURANCE CERTIFICATE
Description of Contract: City of Grand Terrace
Project: _____________________________________________
Type of Insurance: Workers' Compensation and
Employers' Liability Insurance
THIS IS TO CERTIFY that the following policy has been issued by the below-stated company in conformance with the requirements of Article 5 of the Contract and is in force at this time, and is in a form approved by the Insurance Commissioner.

The Company will give at least 30 days' written notice to the City and Engineer/Architect prior to any cancellation of said policy.

POLICY NUMBER EXPIRATION DATE LIMITS OF LIABILITY
Workers' Compensation:

Statutory Limits Under the Laws
of the State of California
Employers' Liability:
$_________________ Each Accident
$_________________ Disease - Policy Limit
$_________________ Disease - Each Employee
Named Insured (Contractor) Insurance Company
Street Number Street Number
City and State City and State
By
(Company Representative)
(SEE NOTICE ON NEXT PAGE)

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01247.0001 2121128.2 4/28/2026
Insurance Company Agent for Service
of Process in California:

Name
Agency
Street Number
City and State
Telephone Number
This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not amend, extend, or alter the coverage afforded by the policy listed herein.

This is to certify that the policy has been issued to the named insured for the policy period indicated, notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate may be issued or may pertain, the insurance afforded by the policy described herein is subject to all the terms, exclusions, and conditions of such policy.

NOTICE:

No substitution or revision to the above certificate form will be accepted. If the insurance called for is provided by more than one insurance company, a separate certificate in the exact above form shall be provided for each insurance company.

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01247.0001 2121128.2 4/28/2026

ADDITIONAL INSURED ENDORSEMENT

COMPREHENSIVE GENERAL LIABILITY
Name and address of named insured (“Named Insured”)
Name and address of Insurance Company (“Company”)
General description of agreement(s), permit(s), license(s), and/or activity(ies) insured Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The
(“Public Agency”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured.

The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy.

3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability.

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) days prior to the effective date thereof. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds.

8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

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01247.0001 2121128.2 4/28/2026

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

City Manager, City of Grand Terrace, 22795 Barton Rd., Grand Terrace, California 92313.

10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.

TYPE OF COVERAGES TO WHICH POLICY PERIOD LIMITS OF

THIS ENDORSEMENT ATTACHES FROM/TO LIABILITY

11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes:
□ Contractual Liability □ Explosion Hazard
□ Owners/Landlords/Tenants □ Collapse Hazard
□ Manufacturers/Contractors □ Underground Property Damage □ Products/Completed Operations □ Pollution Liability
□ Broad Form Property Damage □ Liquor Liability
□ Extended Bodily Injury □
□ Broad Form Comprehensive □
General Liability Endorsement □

12. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except:
(if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).

13. This is an □ occurrence or □ claims made policy (check one).

14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number .
(signatures on following page)
I, (print name), hereby declare under
penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20

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01247.0001 2121128.2 4/28/2026
Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)

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01247.0001 2121128.2 4/28/2026

ADDITIONAL INSURED ENDORSEMENT

AUTOMOBILE LIABILITY
Name and address of named insured (“Named Insured”)
Name and address of Insurance Company (“Company”)
General description of agreement(s), permit(s), license(s), and/or activity(ies) insured Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) days prior to the effective date thereto. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

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01247.0001 2121128.2 4/28/2026

8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

City Manager
City of Grand Terrace
22795 Barton Rd.

Grand Terrace, California 92313

TYPE OF COVERAGES TO WHICH POLICY PERIOD LIMITS OF

THIS ENDORSEMENT ATTACHES FROM/TO LIABILITY

11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes:
□ Any Automobiles □ Truckers Coverage
□ All Owned Automobiles □ Motor Carrier Act
□ Non-owned Automobiles □ Bus Regulatory Reform Act
□ Hired Automobiles □ Public Livery Coverage
□ Scheduled Automobiles □
□ Garage Coverage □

12. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except: (if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).

13. This is an □ occurrence or □ claims made policy (check one).

14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number . (signatures on following page)
I, (print name), hereby declare under
penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 2026.

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01247.0001 2121128.2 4/28/2026
Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)

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01247.0001 2121128.2 4/28/2026

ADDITIONAL INSURED ENDORSEMENT

EXCESS LIABILITY
Name and address of named insured (“Named Insured”)
Name and address of Insurance Company (“Company”)
General description of agreement(s), permit(s), license(s), and/or activity(ies) insured Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought, except with respect to the limits of the Company's liability.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) days prior to the effective date thereto. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

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01247.0001 2121128.2 4/28/2026
City Manager
City of Grand Terrace
22795 Barton Rd.

Grand Terrace, California 92313

TYPE OF COVERAGES TO WHICH POLICY PERIOD LIMITS OF

THIS ENDORSEMENT ATTACHES FROM/TO LIABILITY
□ Following Form
□ Umbrella Liability
□

11. Applicable underlying coverages:

INSURANCE COMPANY POLICY NO. AMOUNT

12. The following inclusions, exclusions, extensions or specific provisions relate to the above coverages:

13. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except:
(if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).

14. This is an □ occurrence or □ claims made policy (check one).

15. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number . (signatures on following page)
I, (print name), hereby declare under
penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 2026.

Signature of Authorized Representative

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01247.0001 2121128.2 4/28/2026
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)

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01247.0001 2121128.2 4/28/2026
ATTACHMENT 1

LED SPORTS FIELD LIGHTING RETROFIT

SCOPE OF SERVICES
Veterans Freedom Park – 21950 Pico Street, Grand Terrace, California

PROJECT OVERVIEW
The City of Grand Terrace is seeking qualified contractors to provide a complete turnkey retrofit of the existing sports field lighting systems at Veterans Freedom Park with new LED sports lighting equipment.

The purpose of this project is to improve lighting performance, reduce energy consumption, and modernize the lighting control system for the sports fields.

The Contractor shall furnish all labor, materials, equipment, supervision, transportation, and incidentals necessary to complete the work in accordance with the Contract Documents.

PROJECT LOCATION
Veterans Freedom Park
21950 Pico Street
Grand Terrace, California

PROJECT DESCRIPTION
The project consists of retrofitting eight (8) existing sports lighting poles with new LED sports lighting systems including:
• Six (6) poles serving Baseball Field #1
• Two (2) poles serving the T-Ball / Little League Field (D2 and D3) The retrofit shall include LED luminaires, mounting hardware, electrical components, wiring harnesses, lighting controls, commissioning, and all related electrical work necessary to provide a fully operational sports lighting system.

CONTRACTOR RESPONSIBILITIES
The Contractor shall provide all work required to complete the retrofit including, but not limited to:
• Removal of existing sports lighting fixtures as required • Installation of LED sports lighting luminaires
• Installation of pole top retrofit assemblies and mounting hardware • Installation of electrical component enclosures
• Installation of pole wiring harnesses
• Installation of lighting control systems
• Reuse of existing conduit where acceptable
• Electrical testing and commissioning

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01247.0001 2121128.2 4/28/2026
• Final aiming and adjustment of luminaires

ELECTRICAL AND SITE WORK
The Contractor shall perform all electrical work required to complete the retrofit including:
• Verification of electrical service capacity - If electrical service upgrades are required to support the proposed lighting system, the Contractor shall notify the City immediately and provide a cost proposal for review prior to performing additional work.
• Verification of grounding systems
• Installation of ground rods where required
• Installation of bonding conductors where required
• Cleaning of existing pull boxes
• Replacement of damaged pull box covers if necessary
• Compliance with the California Electrical Code

TESTING AND COMMISSIONING
Upon completion of installation the Contractor shall perform the following:
• Electrical testing of circuits and equipment
• Verification of lighting control functionality
• Final aiming and adjustment of luminaires
• Demonstration of system operation to the City

WARRANTY REQUIREMENTS
The Contractor shall provide a minimum:
10-year parts warranty
10-year labor warranty
The warranty shall cover luminaires, drivers, controls, mounting hardware, and lighting performance levels.

Contractor will not perform any extraordinary maintenance without approval of the Director of Public Works or his designee. If Contractor encounters a situation wherein extraordinary maintenance is needed, Contractor will supply the City with a description of the work required as well as a proposed estimate for approval

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01247.0001 2121128.2 4/28/2026

SYSTEM STARTUP, COMMISSIONING, AND WARRANTY MAINTENANCE PROGRAM

1. System Commissioning
• Verification of electrical connections
• Verification of grounding and bonding
• Testing of lighting circuits
• Verification of lighting control operation
• Final aiming of luminaires

2. Lighting Aiming
Contractor shall verify light distribution across the field and adjust luminaires to achieve required lighting levels and spill light limits.

3. Lighting Performance Verification
Contractor shall verify installed lighting meets required footcandle levels and ratios. Adjustments shall be made at no cost to the City if requirements are not met.

4. Lighting Control System Testing
Verify independent control of Baseball and T-Ball field lighting and confirm startup/shutdown functionality.

5. Electrical System Testing
Verify service connections, grounding system, circuit protection devices, and inspect pull boxes and conduits.

6. Training
Provide training to City staff on lighting controls, system startup/shutdown procedures, and basic troubleshooting.

7. Warranty Maintenance
Contractor shall repair or replace defective components during warranty period including luminaires, drivers, lighting controls, mounting hardware, and electrical components.

8. Warranty Period
Minimum 10-year parts warranty and 10-year labor warranty covering the complete lighting system.

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01247.0001 2121128.2 4/28/2026
ATTACHMENT 2

SPECIAL PROVISIONS

LED SPORTS FIELD LIGHTING RETROFIT
SP-1 GENERAL
These Special Provisions describe the technical requirements for the LED Sports Field Lighting Retrofit at Veterans Freedom Park 21950 Pico Street, Grand Terrace, California.

All work shall comply with applicable federal, state, and local regulations, including the California Electrical Code and California Building Code.

SP-2 EXISTING LIGHT POLES
The retrofit shall occur on the following existing poles.

Pole ID Height
Existing poles shall remain in place unless otherwise directed by the City.

The Contractor shall provide a structural analysis prepared and stamped by a California licensed Structural Engineer verifying that the existing poles are capable of supporting the proposed LED luminaires and mounting assemblies prior to installation.

SP-3 LED LIGHTING EQUIPMENT
The Contractor shall provide LED sports lighting equipment including:
• LED sports luminaires
• Pole top retrofit assemblies with cross-arms
• Electrical component enclosures
• Pole wiring harnesses
• Mounting hardware
• Lighting control systems
All luminaires shall be factory assembled and factory aimed in accordance with the approved lighting design.

The Contractor shall provide a photometric lighting design demonstrating compliance with the illumination levels and spill light limitations specified in this document. The lighting design shall include fixture locations, aiming angles, and calculated illumination levels across the playing surface.

SP-4 LIGHTING PERFORMANCE REQUIREMENTS
A4 70 ft
A5 70 ft
B4 80 ft
B5 80 ft
C5 70 ft
C6 70 ft
D2 70 ft
D3 70 ft

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01247.0001 2121128.2 4/28/2026
Baseball Field #1
Infield Lighting
Minimum Average Illumination:
50 footcandles
Maximum Average-to-Minimum Ratio:

1.30 Outfield Lighting
Minimum Average Illumination:
30 footcandles
Maximum Average-to-Minimum Ratio:

1.70 SP-5 SPILL LIGHT CONTROL
Lighting shall be designed to minimize spill light onto adjacent properties.

Maximum allowable spill light levels:

Average illumination at property line
≤ 0.25 footcandles
Maximum vertical illumination at 5 ft above grade
≤ 1.5 footcandles
SP-6 FIXTURE REQUIREMENTS
LED fixtures shall meet the following minimum requirements:

Color Temperature:
5000K – 5700K
Color Rendering Index (CRI):
≥ 70
Lumen Maintenance:

L90 ≥ 100,000 hours
Power Factor:
≥ 0.90
Fixtures shall utilize precision sports optics designed for baseball field applications.

SP-7 ELECTRICAL REQUIREMENTS

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01247.0001 2121128.2 4/28/2026
The Contractor shall verify all electrical connections and ensure compliance with the California Electrical Code.

Work shall include:
• Verification of electrical grounding
• Installation of additional ground rods where required • Installation of bonding conductors where required
• Electrical testing prior to commissioning
Total connected load shall not exceed 23.5 kW unless approved by the City SP-8 LIGHTING CONTROL SYSTEM
The Contractor shall provide a lighting control system capable of:
• Independent lighting zones for Baseball Field and T-Ball Field • Integration with existing electrical contactors
• Control wiring to electrical room
• Full commissioning and testing
SP-9 TESTING AND COMMISSIONING
Upon completion of installation the Contractor shall:
• Perform electrical testing
• Verify lighting control operation
• Perform megger testing of feeders
• Perform final aiming of luminaires
The Contractor shall demonstrate proper system operation to the City prior to project acceptance.

SP-10 UNDERGROUND SERVICE ALERT (DIG ALERT)
Prior to performing any excavation, trenching, or ground disturbance, the Contractor shall comply with the requirements of California Government Code Section 4216 et seq. regarding Underground Service Alert (USA).

The Contractor shall notify Underground Service Alert (Dig Alert) at least two (2) working days prior to excavation to identify the location of underground utilities.

The Contractor shall be responsible for protecting all underground utilities encountered during construction.

Any damage to underground utilities caused by the Contractor’s operations shall be repaired at the Contractor’s expense.

Compliance with Dig Alert requirements shall be considered incidental to the work, and no separate payment will be made.

SP-11 Substitutions / “Or Equal” Equipment

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01247.0001 2121128.2 4/28/2026
The equipment identified in the Contract Documents represents the minimum standard of quality required for the project. Contractors may propose equivalent equipment provided the proposed equipment meets or exceeds all performance requirements specified in the Contract Documents.

Substitution requests shall be submitted in writing and must include:
• Manufacturer specifications
• Photometric data
• Electrical requirements
• Mounting details
The City shall be the sole judge of whether proposed equipment is considered equal.

SP-12 PAYMENT
Payment for the LED Sports Field Lighting Retrofit shall be included in the lump sum bid price.

The bid price shall include all labor, materials, equipment, testing, commissioning, permits, and incidentals necessary to complete the work.

No additional compensation will be allowed unless authorized by the City through a written change order.

SP-13 AS-BUILT DOCUMENTATION
Upon completion of the project and prior to final acceptance, the Contractor shall provide the City with complete as-built documentation for the installed lighting system.

The documentation shall include, but not be limited to, the following:
• Manufacturer product specifications for all installed equipment • Electrical wiring diagrams and connection details
• Lighting control system operating instructions
• Final luminaire aiming information
• Equipment inventory list including manufacturer, model number, and serial number where applicable
• Warranty documentation for all lighting system components All documentation shall be provided to the City in electronic PDF format unless otherwise requested.

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AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: Amendment No. 3 to Willdan Group Agreement for On-Call Engineering and Building & Safety Plan Check Services
PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: APPROVE AMENDMENT NO. 3 TO THE AGREEMENT WITH WILLDAN GROUP, INC. FOR ON-CALL ENGINEERING AND BUILDING & SAFETY PLAN CHECK SERVICES (DATED JUNE 11, 2024), INCREASING THE TOTAL NOT-TO-EXCEED AMOUNT TO $340,000
2030 VISION STATEMENT:

This staff report supports Goal #2 Maintain Public Safety.

BACKGROUND:

On June 11, 2024, the City entered into an agreement with Willdan Group, Inc. for on-call engineering services in an amount not to exceed $20,000 for a one-year term. Amendment No. 1 extended the term through June 30, 2027, with two optional one-year extensions, and increased the total not-toexceed amount to $165,000. Amendment No. 2 expanded the scope of services to include Building and Safety services and revised the extension provision to a single two-year option.

DISCUSSION:

As a result of the expanded scope, the agreement has experienced increased utilization. While Building and Safety services were incorporated through Amendment No. 2, the contract amount was not adjusted to reflect the additional workload.

Over the past several years, the City has experienced increased development activity. While some costs are recovered from developers, the City remains responsible for certain plan check and inspection services, which has contributed to higher ongoing service demands under this Agreement.

From June 2024 through February 2026, total expenditures have reached approximately $130,000, including approximately $84,000 for engineering services. Building and Safety services, which were incorporated later into the Agreement, have accounted for approximately $46,000 in expenditures over approximately five months of service, reflecting a higher level of ongoing demand.

The Agreement is nearing its authorized limit, and recent invoices have been incurred but not yet processed.

The proposed amendment increases the not-to-exceed amount from $165,000 to $340,000. The increase is based on past usage, current demand, and projected needs through June 30, 2027, and includes a contingency for rate adjustments and workload changes. This action aligns the contract with actual service needs and ensures services can continue without interruption.

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ENVIRONMENTAL IMPACT:

No environmental impact is associated with this action.

FISCAL IMPACT:

The proposed amendment increases the total not-to-exceed amount of the agreement by $175,000, for a revised total of $340,000.

Sufficient funding is included in the proposed FY 2026–27 budget. Based on current expenditure trends, the proposed contract amount is expected to support service needs through June 30, 2027; however, available contract capacity is limited, and future adjustments may be required if service demand exceeds current projections.

Funding for Building and Safety services will be appropriated to General Fund account 10-172-250- 100-000. Funding for engineering services will be appropriated to General Fund account 10-175-250- 020-000.

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01247.0001 2124646.1
- 1 -
AMENDMENT NO. 3

TO CONTRACT SERVICES AGREEMENT
This AMENDMENT NO. 3 TO THE CONTRACT SERVICES AGREEMENT (“Amendment”) is made by and between the CITY OF GRAND TERRACE, a California municipal corporation (“City”), and WILLDAN ENGINEERING, a California corporation (“Consultant”), is effective as of the 12th day of May, 2026. City and Consultant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as “Parties”.

RECITALS
A. City and Consultant entered into that certain Agreement for Contract Services By and Between the City of Grand Terrace and Willdan Engineering for On-Call Engineering Services, dated June 11, 2024 (“Agreement”) whereby Consultant agreed to provide Professional Engineering Services with a total compensation (“Contract Sum”) of Twenty Thousand Dollars ($20,000) and for a term of one (1) year.

B. City and Consultant amended the Agreement (“Amendment No. 1”) to extend the term to June 30, 2027, with the option to extend by two additional one-year terms, and increase the Contract Sum from Twenty Thousand Dollars ($20,000) per year to One Hundred Sixty Five Thousand Dollars ($165,000) over the three-year period.

C. City and Consultant further amended the Agreement (“Amendment No. 2”) to revise the Scope of Services to include certain Building and Safety Services and to replace the extension provision with a single two-year extension option.

D. City and Consultant now desire to further amend the Agreement (“Amendment No. 3”) to increase the total not-to-exceed amount by One Hundred Seventy-Five Thousand Dollars ($175,000) from One Hundred Sixty Five Thousand Dollars ($165,000) to Three Hundred Forty Thousand Dollars ($340,000). As of February 2026, One Hundred Twenty-Nine Thousand Six Hundred Eighty-Eight Dollars and Ninety-Three Cents ($129,688.93) has been expended under the Agreement based on processed invoices, consisting of Eighty-Three Thousand Seven Hundred Seventeen Dollars and Seventy-Six Cents ($83,717.76) for Engineering and Public Works services and Forty-Five Thousand Nine Hundred Seventy-One Dollars And Seventeen Cents ($45,971.17) for Building and Safety services.

TERMS

1. Contract Changes. The Agreement is amended as provided herein. Deleted text is indicated in strikethrough and added text in bold italics. a. Section 2.1 (Contract Sum) is hereby amended 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

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01247.0001 2124646.1
- 2 -
compensation, including reimbursement for actual expenses, shall not exceed Three Hundred and Forty Thousand Dollars ($340,000) One Hundred Sixty-Five Thousand Dollars ($165,000) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8.”

2. Continuing Effect of Agreement. Except as amended by this Amendment, the 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 this Amendment to the Agreement.

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, 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, 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.

5. 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 Amendment on behalf of said party, (iii) by so executing this Amendment, such party is formally bound to the provisions of this Amendment, and (iv) the entering into this Amendment does not violate any provision of any other Agreement to which said party is bound.

6. 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 in accordance with California Code of Regulations Title 2 Section 22003 (including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation,

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01247.0001 2124646.1
- 3 -
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 paper-based 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.
[SIGNATURES APPEAR ON THE FOLLOWING PAGE]

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01247.0001 2124646.1
- 4 -
IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the date and year first-above written.

CITY:

CITY OF GRAND TERRACE, a municipal corporation
By:
______________________________________________
Konrad Bolowich
City Manager
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
By:
_____________________________________
Adrian Guerra
City Attorney
ATTEST:

By:
_____________________________________
Daysi Alcocer
City Clerk
CONSULTANT:

WILLDAN ENGINEERING, a California corporation
By:
______________________________________________
Name: Patrick Johnson, PE
Title: Director of Building & Safety
Email Address: [email protected]
By:
______________________________________________
Name:

Title:

Email Address:

Address: 2401 E. Katella Ave., Suite 300
Anaheim, CA 92806
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 UNLESS EXECUTED UTILIZING DIGITAL SIGNATURE IN ACCORDANCE WITH CALIFORNIA CODE OF REGULATIONS TITLE 2 SECTION 22003.

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AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: Award of Agreement for St. Francis Electric for Traffic Signal Maintenance and On-Call Emergency Services
PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: AWARD AND APPROVE A CONTRACTOR AGREEMENT TO ST.

FRANCIS ELECTRIC, LLC FOR TRAFFIC SIGNAL MAINTENANCE AND

ON-CALL EMERGENCY SERVICES FOR AN AMOUNT NOT TO EXCEED
$177,500 FOR AN INITIAL TERM OF FIVE (5) YEARS, WITH THE OPTION TO EXTEND FOR ONE ADDITIONAL TWO (2) YEAR TERM; AND

AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT,

SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM
2030 VISION STATEMENT:

This staff report supports Goal #2, "Maintain Public Safety," by supporting the ongoing maintenance and reliability of critical traffic signal infrastructure.

BACKGROUND:

On May 24, 2022, the City entered into an agreement with the current traffic signal maintenance contractor, St. Francis Electric, LLC, which is set to expire June 30, 2026.

DISCUSSION:

The City conducted a formal bidding process for traffic signal maintenance and on-call emergency services via the Public Purchase online platform from March 24 through April 14, 2026. St. Francis Electric, LLC, the City’s current service provider, submitted a responsive bid and continues to demonstrate the experience and qualifications necessary to perform the required services.

The contract is structured to include a fixed annual cost for routine maintenance services and variable costs for on-call and emergency response services, which are performed on an as-needed basis.

Beginning in Fiscal Year 2026-27, upon completion of construction, the City will maintain eleven (11) signalized intersections, including new signals at Mt. Vernon Avenue and Pico Street and Mt. Vernon Avenue and Van Buren Street. These additional signals will expand the City’s traffic signal system and require ongoing maintenance and operational support.

On-call and emergency services remain a critical component of the contract to ensure timely response to signal malfunctions, power outages, and other issues affecting traffic signal operations and public safety. The proposed agreement provides continuity of services, supports system expansion, and maintains reliable traffic signal operations throughout the City.

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ENVIRONMENTAL IMPACT:

The work performed under this agreement is categorically exempt under CEQA Guidelines Section 15301 (Existing Facilities).

FISCAL IMPACT:

The annual cost for routine traffic signal maintenance is $8,253 based on the expanded system of eleven (11) intersections. While actual annual expenditures may be lower, the proposed contract amount provides sufficient capacity to accommodate variable on-call service needs, emergency repairs, and potential cost fluctuations over the term of the agreement.

The proposed contract amount of $177,500 over five years represents an average annual capacity of $35,500. Actual expenditures will be based on services performed and are anticipated to be less than the annual average.

Sufficient funds are included in the FY 2026-27 budget to support this contract. The designated account number is 16-510-255-000.

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01247.0001 2124656.1 4/29/2026

CONTRACT SERVICES AGREEMENT
By and Between

CITY OF GRAND TERRACE
and
ST. FRANCIS ELECTRIC, LLC

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 1

AGREEMENT FOR CONTRACT SERVICES

BETWEEN THE CITY OF GRAND TERRACE AND
ST. FRANCIS ELECTRIC, LLC
This AGREEMENT FOR CONTRACT SERVICES (herein “Agreement”) is made and entered into this 12th day of May, 2026 (“Effective Date”) by and between the CITY OF GRAND TERRACE, a California municipal corporation (“City”) and ST. FRANCIS ELECTRIC, LLC, a California limited liability company (“Contractor”). City and Contractor may be referred to, individually or collectively, as “Party” or “Parties.”

RECITALS
A. The City desires to contract with a Contractor to provide services on an on-call basis as more further set forth herein.

B. The City circulated a Request for Quotes or Proposals for the above-described services.

C. Contractor submitted a quote or proposal to City to provide the above-described services.

D. City Staff has reviewed all the proposals and after considering the demonstrated competence of Contractor, the qualifications of Contractor, and the fairness and reasonableness of Contractor’s proposed cost, staff has determined that an agreement to provide the required services should be awarded to Contractor.

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 CONTRACTOR

1.1 Scope of Services.

In compliance with all terms and conditions of this Agreement, Contractor 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, Contractor represents and warrants: a) it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement b) all services set forth in the Scope of Services will be performed in a competent and satisfactory manner; c) all materials used for services will be both of good quality as well as fit for the purpose intended; and, d) Contractor shall follow the highest standards and practices in performing the services required hereunder. Individual tasks under the Scope of Services shall be established on a per project basis. Upon request by City, the Contractor shall provide a detailed task proposal including pricing consistent with those hourly rates as provided in Article II, below. Contractor shall not commence work until an Task Order is issued by the City authorizing the Contractor to perform such work.

1.2 Contractor’s Proposal.

The Scope of Services shall include the scope of services or work included in Contractor’s proposal or bid, which shall be incorporated herein by this reference as though fully set forth herein. In the event of

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 2 any inconsistency between the terms of such proposal or bid, and this Agreement, the terms of this Agreement shall govern. No other terms and conditions from Contractor’s proposal or bid, other than description of scope of services or work, shall apply to this Agreement, unless specifically agreed to by City in writing.

1.3 Compliance with Law.

All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of City and any federal, State or local governmental agency having jurisdiction in effect at the time services are rendered. City, and its officers, employees and agents, shall not be liable at law or in equity for failure of Contractor to comply with this Section.

1.4 California Labor Law.

If the Scope of Services includes any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, Section 16000 et seq., and if the total compensation is $1,000 or more, Contractor shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws, including the following requirements:
(a) Public Work. The Parties acknowledge that some or all of the work to be performed under this Agreement is a “public work” as defined in Labor Code Section 1720 and that this Agreement is therefore subject to the requirements of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works contracts and the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. The work performed under this Agreement is subject to compliance monitoring and enforcement by the DIR. Contractor shall post job site notices, as prescribed by regulation.
(b) Prevailing Wages. Contractor shall pay prevailing wages to the extent required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested party on request. By initiating any work under this Agreement, Contractor acknowledges receipt of a copy of the Department of Industrial Relations (“DIR”) determination of the prevailing rate of per diem wages, and Contractor shall post a copy of the same at each job site where work is performed under this Agreement. (c) Penalty for Failure to Pay Prevailing Wages. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. Contractor shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Contractor or by any subcontractor. (d) Payroll Records. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Contractor and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform the City of the location of the records.
(e) Apprentices. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, Section 200 et seq.

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 3 concerning the employment of apprentices on public works projects. Contractor shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) days after concluding work pursuant to this Agreement, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement. (f) Eight-Hour Work Day. Contractor acknowledges that eight (8) hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810. (g) Penalties for Excess Hours. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Contractor in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay.
(h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake selfinsurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.” Contractor’s Authorized Initials ___________________
Guy Smith, President

(i) Contractor’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Contractor shall be responsible for such subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Agreement.

Contractor shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Contractor shall diligently take corrective action to halt or rectify any such failure by any subcontractor.

1.5 Licenses, Permits, Fees and Assessments.

Contractor 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. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 4 be imposed by law and arise from or are necessary for Contractor’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.6 Familiarity with Work.

By executing this Agreement, Contractor represents and warrants Contractor: a) has thoroughly investigated and considered services to be performed, b) has carefully considered how services should be performed, and c) fully understands the facilities, difficulties and restrictions attending performance of services under this Agreement. If the services involve work upon any site, Contractr warrants that Contractor 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 the Contractor discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Contractor shall immediately inform the City of such fact and shall not proceed except at Contractor’s risk until written instructions are received from the Contract Officer.

1.7 Software and Computer Services.

If the Scope of Services includes the provision and/or installation of any software, computer system, or other computer technology, Contractor represents and warrants that it is familiar with and/or has inspected City’s current infrastructure, equipment, computer system and software and that the software, computer system, or other computer technology provided and/or installed by Contractor under this Agreement is compatible, and shall be fully functional, with such infrastructure, equipment, computer system and software of City. Contractor acknowledges that City is relying on this representation by Contractor as a material consideration in entering into this Agreement.

1.8 Care of Work.

Contractor shall adopt reasonable methods during the life of this 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.

1.9 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.

1.10 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 (as defined below) to the Contractor, incorporating therein any adjustment in (i) the Contract Sum (or a portion of the compensation due to Contractor) 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 the Contractor. Any increase in compensation of up to ten percent (10%) of the Contract

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 5 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 Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Contractor 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 Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors / 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.

1.11 Contract Modifications.

Additional terms and conditions of this Agreement, if any, or any modifications or revisions to the standard terms and conditions herein are made a part hereof as set forth in the “Contract Modifications” 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.

1.12 Campaign Contributions
This Agreement is subject to Government Code section 84308 (commonly known as the Levine Act), as amended by Senate Bill 1439 (2022), Senate Bill 1181 (2024), and Senate Bill 1243 (2024); unless the contract is (1) competitively bid; (2) under $50,000; (3) amendments valued at more than 10 percent of the value of the contract or fifty thousand dollars ($50,000), whichever is less; and (4) labor contracts, in which case this provision does not apply. Contractor shall disclose any contribution to an elected or appointed City official’s campaign or committee in an amount of more than five hundred dollars ($500) made within 12 months preceding the Commencement Date, by Contractor, its, her, or his agent, or another party affiliated with Contractor. Contractor shall provide a signed copy of the attached Campaign Contribution Disclosure Form to City prior to, or concurrent with, Contractor's execution of this Agreement and no later than the Commencement Date.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the flat fee and/or rates specified in Exhibit “C”, Schedule of Compensation and/or within any Task Order. The total compensation for all work, including reimbursement for actual expenses, shall not exceed One Hundred Seventy-Seven Thousand Five Hundred Dollars and Zero Cents ($177,500.00) for the duration of the Term of this Agreement (the “Contract Sum”), unless additional compensation is approved pursuant to Section

1.9. Compensation may include reimbursement, for actual and necessary expenditures, if both are specified in the any quote or Task Order, as well as approved by City in advance.

2.2 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 Contractor at all project meetings reasonably deemed necessary by the City. Coordination of the performance of the work with City

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 6 is a critical component of the services. If Contractor is required to attend additional meetings to facilitate such coordination, Contractor shall not be entitled to any additional compensation for attending said meetings.

2.3 Invoices.

In any month in which Contractor wishes to receive payment, no later than the first business day of such month, Contractor shall submit to City, in a form approved by City’s Finance Director, an invoice for services rendered prior to the date of the invoice. By submitting an invoice for payment under this Agreement, Contractor is certifying compliance with all provisions of this Agreement. Except as provided in Sections 7.3, 7.4 and 7.5, City shall pay Contractor for all expenses stated thereon which are approved by City pursuant to this Agreement generally within thirty (30) days, and City will use its best efforts to make payment no later than forty-five (45) days, from the submission of an invoice in an approved form.

In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission. Review and payment by City for any invoice provided by Contractor shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

Each invoice is to include (unless otherwise specified by City): 1) line items for all personnel describing the work performed, the number of hours worked, and the hourly rate; 2) line items for all materials and equipment properly charged to the Services; 3) line items for all other approved reimbursable expenses claimed, with supporting documentation; and 4) line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.

2.4 Waiver.

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

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

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

3.2 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 five (5) years from the date hereof (“Term”), except as otherwise provided in the Schedule of Performance (as shown on Exhibit “D” attached hereto). The City Manager may extend the Term up to one additional two (2) year term.

3.3 Schedule of Performance.

Contractor 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 Task Order and “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Contractor, 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.

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3.4 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 the Contractor, 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 the City, if the Contractor 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 Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of the Term of this Agreement pursuant to this Section.

ARTICLE 4. COORDINATION OF WORK

4.1 Representatives and Personnel of Contractor.

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

Guy Smith, President
Andy Amador, Vice President
The Contractor Representative is authorized to act on Contractor’s behalf with respect to the work or services specified herein and to make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducement for City to enter into this Agreement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.

4.2 Status of Contractor.

Contractor 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. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Contractor, nor any of Contractor’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. Contractor expressly waives any claim Contractor may have to any such rights.

4.3 Contract Officer.

The Contract Officer shall be Shanita Tillman or such person as may be designated by the City Manager. For any project awarded by a Task Order under this Agreement, City will designate a project manager who shall oversee Contractor’s performance of the awarded services. It shall be the Contractor’s

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 8 responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor 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 the City required hereunder to carry out the terms of this Agreement.

4.4 Independent Contractor.

Neither City, nor any of its officers, employees or agents, shall have any control over the manner or means by which Contractor, or its officers, employees, agents or subcontractors, perform the services required herein, except as otherwise set forth herein. Contractor shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it, or any of its officers, employees, agents or subcontractors, are officers, employees or agents of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor. Contractor shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Contractor represents and warrants that the personnel used to provide services to City pursuant to this Agreement shall at all times be under Contractor’s exclusive control and direction. No City employee benefits shall be available to Contractor, its officers, employees, agents or subcontractors, in connection with the performance of this Agreement. City shall not be liable for compensation or indemnification to Contractor, its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder.

4.5 Prohibition Against Subcontracting or Assignment.

The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for City to enter into this Agreement. Therefore, without express written approval of City, Contractor shall not contract with any other entity to perform in whole or in part services required hereunder without express written approval of City, and neither this Agreement nor any interest herein may be transferred or assigned. No approved transfer shall release Contractor, or any surety or insured of Contractor, of any liability hereunder without express written consent of City.

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages.

Prior to commencement of any services under this Agreement, and without limiting Contractor’s indemnification obligation to City, Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, for the duration of the Agreement, primary policies of insurance of the type and amounts set forth in the “Insurance Requirements” attached hereto as Exhibit “E” and incorporated herein by this reference.

5.2 Indemnification.
(a) General Obligations. Contractor agrees, to the full extent permitted by law, to indemnify, defend and hold harmless City and its elected and appointed officers, employees and agents (each an “Indemnitee” and collectively, “Indemnitees”) against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 9 “Claims or Liabilities”) that may be asserted or claimed by any person, firm or agency arising out of or in connection with the performance of the work, operations or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or City for which Contractor is legally liable (each an “Indemnitor” and collectively, “Indemnitors”), and in connection therewith: 1) Contractor will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Contractor will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom.

Further Provisions. The indemnity obligation herein shall be binding on successors, assigns and heirs of Contractor and shall survive termination of this Agreement. Contractor shall incorporate similar indemnity agreements as provided herein with its subcontractors, and if Contractor fails to do so Contractor shall be fully responsible to indemnify City hereunder therefor. Failure of City and/or City Parties (collectively “City” for solely this Section 5.2(b)) to monitor compliance with any of the indemnification provisions herein shall not be a waiver hereof. Payment of invoices by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between Contractor and City, as to whether liability arises from the sole negligence or willful misconduct of City, Contractor will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct.

Contractor will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation.

ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records.

Contractor 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 (“books and records”) as shall be necessary to perform the services required by this Agreement and enable City to evaluate the performance of such services. Any and all such books and records shall be maintained in accordance with generally accepted accounting principles, shall be complete and detailed, and shall be readily accessible. City 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. Such books and records shall be maintained for a period of three (3) years following completion of the services hereunder. City shall have access to such books and records in the event any audit is required. Contractor shall fully cooperate with City in providing access to any and all Contractor records and documents 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.

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 10 work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor 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 (“documents and materials”) prepared by Contractor, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and Contractor 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. Contractor may retain copies of such documents and materials for its own use.

Contractor shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents and materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, with respect to any Contractor 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 Contractor in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from City. (b) Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from City or unless requested by the 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 Contractor immediately gives City notice of such court order or subpoena. (c) If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Contractor’s conduct. (d) As concerning, regarding or related to, in any way, this Agreement and the work performed thereunder: i) Contractor shall immediately notify City should Contractor, 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; ii) City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding; and, iii) Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor, 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

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 11

7.1 California Law.

7.2 Suspension, or Termination, Prior to Expiration of Term.

This Section shall govern any termination of this Agreement except as specifically provided in Section 7.4 for termination for cause. City reserves the right to terminate or suspend this Agreement, or any portion hereof, at any time, for any reason, with or without cause, upon ten (10) days’ notice to Contractor, except that where termination or suspension is due to the fault of Contractor, the period of notice may be such shorter time as determined by City. Upon receipt of any notice of termination or suspension, Contractor shall immediately cease all services hereunder, unless the notice provides otherwise, or except such as specifically approved by City. Upon submittal of an invoice consistent with Section 2.2, Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City thereafter in accordance with the any Task Order, or such as may be approved by City, except as provided in Section 7.5. In event of termination, or suspension, without cause pursuant to this Section, there is no need to provide opportunity to cure pursuant to Section 7.3.

7.3 Default of Contractor and Opportunity to Cure.

In the event that Contractor is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively ten (10) days, but may be extended, or reduced, if circumstances warrant, as determined by City. During the period of time that Contractor is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices, without liability for interest. 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 Contractor does not cure the default by conclusion of noticed timeframe, City may immediately both terminate this Agreement with notice to Contractor as well as pursue the remedy in Section 7.4, without prejudice to any other remedy to which City may be entitled at law, in equity or under this Agreement. Any failure on the part of City to give notice of Contractor’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.

7.4 Termination for Default of Contractor.

If termination is due to the failure of Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.3, take over the work and prosecute the same to completion by contract or otherwise, and Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 12 that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contractor for the purpose of set-off or partial payment of the amounts owed City therefor.

7.5 Retention of Funds.

Contractor hereby authorizes City to deduct from any amount payable to Contractor (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 Contractor’s acts or omissions in performing or failing to perform Contractor’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 Contractor, 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 Contractor to insure, indemnify, and protect City as elsewhere provided herein.

7.6 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 Contractor 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.

Contractor acknowledges and agrees that any actual or alleged failure on the part of City to inform Contractor of non-compliance with any requirement of this Agreement imposes no additional obligations on City nor does it waive any rights hereunder. Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.

7.7 Rights and Remedies are Cumulative.

7.8 Legal Action.

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 13 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.

7.9 Attorneys’ 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 attorneys’ fees. Attorneys’ fees shall include attorneys’ fees on any appeal, and a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, Contractors’ fees, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. Such fees and costs 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 Contractor, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

8.2 Conflict of Interest.

Contractor 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.

No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this 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. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination.

Contractor 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. Contractor 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.

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 14 Contractor 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 Contractor 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, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City.

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, California 92313, and in the case of the Contractor, 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.

9.3 Counterparts and Electronic Signatures.

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

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 15 used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Contractor 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.

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. Contractor 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. Contractor 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. Contractor 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.

Contractor’s Authorized Initials ___________________
Guy Smith, President

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) that 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]

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 16 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
By:
_______________________________________________
Konrad Bolowich
City Manager
APPROVED AS TO FORM:

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

By:
_____________________________________
Daysi Alcocer
City Clerk
CONTRACTOR:

St. Francis Electric, LLC, a California limited liability company
By:
_____________________________________
Name: Guy Smith
Title: President
Email: (Insert Email Address)
Address: 975 Carden St, San Leandro, CA 94577
By:
_______________________________________________
Name: Andy Amador
Title: Vice President
Email: (Insert Email Address)
Address: 975 Carden St, San Leandro, CA 94577
Two corporate officer signatures required when Contractor 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. CONTRACTOR’S

SIGNATURES SHALL BE DULY NOTARIZED UNLESS EXECUTED UTILIZING DIGITAL SIGNATURE IN ACCORDANCE WITH CALIFORNIA CODE OF REGULATIONS TITLE 2 SECTION 22003. IN ADDITION, THE APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 17

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO
On __________, 2026 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.

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 18

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

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)

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – Vendor Name (Project Name) Council Date A-1 EXHIBIT “A”

SCOPE OF SERVICES
I. Contractor will perform the following Services on an On-Call basis:

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – Vendor Name (Project Name) Council Date A-2

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – Vendor Name (Project Name) Council Date A-3 II. Contractor must perform all on-call Services in compliance with the following requirements:

A. Each task shall be indicated by a written request (“Task Order”) produced by the Department Contact with a description of the work to be performed, and the time desired for completion. All tasks shall be carried out in conformity with all provisions of this Agreement. The Task Order may take the form or title of a “Purchase Order.” In the event of a conflict between the provision of any Task Order and any term of this Agreement, the provisions of this Agreement shall prevail.

B. Contractor must prepare a written description of the requested tasks including all components and subtasks; the costs to perform the task (“Task Budget”), using the itemized fees as set forth in Exhibit “C”; explain how the cost was determined; and, a schedule for completion of the task (“Task Completion Date”); which shall all collectively be referred to as the “Task Proposal”.

C. Department Contact shall in writing approve, modify or reject the Task Proposal, and may issue a Task Order.

D. The task shall be performed at a cost not to exceeding the Task Budget.

E. Contractor shall complete the task and deliver all deliverables to Department Contact by the Task Completion Date.

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – Vendor Name (Project Name) Council Date A-4 III. All work product is subject to review and acceptance by the City, and must be revised by the Contractor without additional charge to the City until found satisfactory and accepted by City.

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – Vendor Name (Project Name) Council Date B-1 EXHIBIT “B”

CONTRACT MODIFICATIONS
(Superseding Contract Boilerplate)
Added text is indicated in bold italics, deleted text is indicated in strikethrough.

None.

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – Vendor Name (Project Name) Council Date C-1 EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. The Scope of Work set forth herein shall be compensated for in the following manner:
☒ Multiple flat rates for different specified services as set forth in Exhibit “A.” ☐ An hourly rate for some or all of the proposed services as set forth in Exhibit “A.” II. The total compensation for all Services shall not exceed the Contract Sum as provided in Section 2.1 of this Agreement.

III. Contractor’s billing rates for any hourly Services are set forth in Exhibit “A.” In connection with the services provided pursuant to the terms of this Agreement, City will pay Contractor upon City’s receipt of a written invoice provided by Contractor no more than monthly. City will pay Contractor for work completed, billed in increments of six minutes (0.1 hours), not to exceed the Contract Sum. The City will reimburse the Contractor for reasonable out-of-pocket expenses related to performing services set forth in Exhibit “A” that are approved in advance in writing by the City such as mileage, copies, binding costs, postage, parking, travel, and lodging expenses as part of the not to exceed Contract Sum. To receive reimbursements, the Contractor must provide the City with a receipt and a description of the expense incurred along with the invoice. No mark up on expenses may be added.

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – Vendor Name (Project Name) Council Date C-2 EXHIBIT “C-1”

CONTRACTOR BILLING RATES

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – Vendor Name (Project Name) Council Date C-3 EXHIBIT “D”

SCHEDULE OF PERFORMANCE
I. Contractor shall perform the services on an on-call basis as set forth in Exhibit “A”.

II. Contractor shall deliver the following tangible work products to the City by the dates identified in any Task Order.

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

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 E-1

EXHIBIT E

INSURANCE REQUIREMENTS
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, or employees.

MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence.

If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (Not required if Contractor provides written verification it has no employees)

5. Cyber: Vendor/Contractor shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, or damages to property (including computer equipment) which may arise from or in connection with the performance of the work hereunder by the Vendor, its agents, representatives, or employees.

Vendor shall procure and maintain for the duration of the contract insurance claims arising out of their services and including, but not limited to loss, damage, theft or other misuse of data, infringement of intellectual property, invasion of privacy and breach of data.

Cyber Liability Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 E-2 by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations.

General liability coverage can be provided in the form of an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary and noncontributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.

Umbrella or Excess Policy
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self-Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.

Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or City. The CGL and any policies, including Excess liability policies, may not be subject to a selfinsured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City. Any and all

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01247.0001 2124656.1 4/29/2026 On-Call Agreement – St. Francis Electric, LLC, May 12, 2026 E-3 deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible.

City reserves the right to obtain a copy of any policies and endorsements for verification.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.

Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: First Reading & Introduction of an Ordinance approving Zone Code Amendment (ZCA) 26-02, Zone Change (ZC) 26-
01, and Environmental Review (E) 26-03 and adopting a
Resolution approving General Plan Amendment (GPA) 26-01 PRESENTED BY: Hannah Kreitman AICP Planner, Daniel Wery Principal Community Planner & Gabriel Arguelles, Assistant Planner RECOMMENDATION: FIRST READING & INTRODUCTION OF AN ORDINANCE APPROVING ZONING CODE AMENDMENT (ZCA) 26-02,
ZONE CHANGE (ZC) 26-01, AND ENVIRONMENTAL
REVIEW (E) 26-03, ADOPT THE RESOLUTION
APPROVING GENERAL PLAN AMENDMENT (GPA) 26-01;
AND

DIRECT STAFF TO RETURN WITH THE ORDINANCE FOR
SECOND READING AND ADOPTION; THEREBY

AMENDING THE GENERAL PLAN LAND USE ELEMENT

AND LAND USE MAP, THE CITY ZONING MAP, AND TITLE
18 (ZONING) OF THE GRAND TERRACE MUNICIPAL
CODE TO ESTABLISH THE R3-40 HIGH DENSITY

MULTIPLE FAMILY RESIDENTIAL DISTRICT, ALLOW
RESIDENTIAL DEVELOPMENT AT A DENSITY OF 20 TO
40 DWELLING UNITS PER ACRE, AND REZONE
APPROXIMATELY 97.1 ACRES OF PROPERTY LOCATED
THROUGHOUT THE CITY TO THE R3-40 DESIGNATION,
CONSISTENT WITH PROGRAM 1 (ADEQUATE SITES) OF
THE CITY’S 2021–2029 HOUSING ELEMENT
2030 VISION STATEMENT:

This staff report supports the City Council’s 2030 Vision, including Goal #3, “Promote Economic Development,” and Goal #5, “Engage in Proactive Communication,” by updating the City’s General Plan, Zoning Map, and Municipal Code to implement the Housing Element and provide clear, consistent development standards. The proposed rezoning establishes a framework for future housing opportunities, supports reinvestment in underutilized properties, and ensures the City remains compliant with State housing requirements while maintaining transparency and responsiveness to community input.

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SUMMARY:

City staff is recommending approval of Zoning Code Amendment (ZCA) 26-02, General Plan Amendment (GPA) 26-01, Zone Change (ZC) 26-01, and Environmental Review (E) 26-03 to implement Program 1 of the City’s 2021–2029 Housing Element. The proposed amendments establish the R3-40 High Density Multiple Family Residential District and rezone a total of approximately 97 acres throughout the City to allow residential development at a density of 20 to 40 dwelling units per acre.

The proposed amendments are required to address a shortfall in available housing sites and to demonstrate that the City has adequate capacity to accommodate its Regional Housing Needs Allocation (RHNA). The rezone ensures consistency with State Housing Element law by providing sufficient sites at appropriate densities, including sites that allow for by-right residential development when affordability requirements are met.

In addition to meeting State requirements, the proposed rezoning increases overall housing capacity beyond the City’s RHNA, providing a buffer to maintain compliance throughout the planning period and better position the City for the upcoming 7th Cycle Housing Element. This also includes updates to the Zoning Code to address nonconforming uses and structures and ensure compatibility with existing residential development.

The City Council Ordinance for Zoning Code Amendment (ZCA) 26-02, Zone Change (ZC) 26-01, and Environmental Review (E) 26-03 are included as Attachment 1, along with the proposed Zoning Map (Exhibit A), Notice of Exemption (Exhibit B), and SB 131 Statutory Exemption Report (Exhibit C).

The City Council Resolution for General Plan Amendment (GPA) 26-01 is included as Attachment 2, along with the proposed Land Use Element (Exhibit D) and Land Use Map (Exhibit E).

The RHNA Sites Inventory Map is included as Attachment 3.

BACKGROUND:

The Housing Element is one of eight mandatory elements of the General Plan and, under California State law, must be updated every eight years. The City of Grand Terrace is currently within the 6th Cycle Housing Element planning period (2021–2029), which was adopted on March 25, 2025. The City is now approximately five years into the eight-year cycle and must complete required implementation programs while also preparing for the upcoming 7th Cycle Housing Element.

As part of the 6th Cycle, the City was assigned a Regional Housing Needs Allocation (RHNA) of 630 units, consisting of 189 very low-income units, 92 low-income units, 106 moderate-income units, and 243 above moderate-income units. To remain in compliance

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with State law, the City must demonstrate that it has adequate sites, at appropriate densities, to accommodate this housing need.

Program 1 of the adopted Housing Element, Adequate Sites to Accommodate Regional Housing Needs, requires the City to address a shortfall of available housing sites through rezoning. This includes rezoning approximately 97 acres throughout the City to allow higher-density residential development under a new R3-40 High Density Multiple Family Residential District, permitting 20 to 40 dwelling units per acre. A portion of these sites, approximately 24.2 acres across 20 parcels, has been specifically identified to meet the City’s RHNA requirements.

Currently, the City’s residential development is predominantly composed of low-density, single-family neighborhoods, with limited opportunities for higher-density multifamily housing. The introduction of the R3-40 zone is intended to expand housing opportunities by allowing a broader mix of housing types, including multifamily and mixed-income developments, in appropriate locations.

The proposed rezoning increases the City’s overall housing capacity beyond the minimum RHNA requirement. By planning for additional capacity, the City is creating flexibility and helping ensure compliance throughout the remainder of the Housing Element cycle. This approach is intentional, as the City is addressing current 6th Cycle requirements while also positioning itself for the upcoming 7th Cycle by reducing the likelihood that additional rezonings will be needed to address future net losses or RHNA allocations.

State law requires that sites that are rezoned to meet the RHNA allow for by-right residential development when at least 20 percent of the units are affordable to lowerincome households. This includes 24 acres of the 97.1 acre rezoned, as denoted in the Housing Element. These sites must also have a minimum density of at least 20 units per acre and development standards that ensure the sites can realistically accommodate housing.

Following adoption of the Housing Element, the California Department of Housing and Community Development (HCD) issued a letter of conditional compliance on May 22, 2025, indicating that full compliance is contingent upon completion of the rezoning identified in Program 1. On December 17, 2025, the City and consultants from Michael Baker International met with HCD to discuss the rezoning schedule and compliance timeline. HCD indicated that failure to complete the required rezoning by the end of April 2026 would likely result in consequences, which may consist of possible disqualification from state funding, carryover and combination of 6th Cycle and 7th Cycle RHNA pursuant to Government Code §65584.09, fines or penalties, litigation, court receivership, loss of local permitting authority, and the inability to deny new projects inconsistent with the General Plan or zoning, also known as “Builder’s Remedy.” The Housing Element will be deemed substantially compliant once the rezonings are completed.

To support implementation efforts, the City has secured funding through the Southern California Association of Governments (SCAG) Regional Early Action Planning (REAP

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2.0) Grant, which must be utilized in 2026. All costs associated with this rezoning effort are fully funded through the REAP 2.0 Grant, including preparation of the zoning amendments, updates to the City’s Objective Design Standards, and the development of preapproved Accessory Dwelling Unit (ADU) plans.

The following key milestones have occurred to date:

March 25, 2025: Adoption of the 2021–2029 Housing Element May 22, 2025: HCD Conditional Compliance Letter Issued
December 17, 2025: HCD Compliance and Enforcement Meeting January 27, 2026: Joint Planning Commission / City Council Study Session February 5, 2026: Property Owner / Community Study Session April 2, 2026: Planning Commission Recommendation
Yield Calculation
For the purposes of determining the number of units likely to be built on each site identified in the Housing Element, a percent yield of the maximum potential density on each site is estimated, as development at the full maximum density is less likely. A percent yield is determined based on factors such as site-specific constraints, environmental constraints, regional development trends, and existing uses on the site. Based on regional trends, Grand Terrace assumed a 70 percent yield on sites designated to meet the RHNA. This yield calculation may vary on the additionally rezoned sites depending on site specific characteristics.

A realistic rate of development (the annual rate of construction and household occupancy), based on the Southern California Association of Government’s (SCAG) estimate of 5,700 households in Grand Terrace by the year 2050 and the 4,900 current households in the City, is 800 units that would be absorbed over 25 years at an average rate of 32 units per year.

NO NET LOSS
State law requires the City to maintain adequate housing capacity throughout the planning period, commonly referred to as “No Net Loss.” If a site is developed at a lower density or intensity, or for different incomes than were projected in the housing element, the City must make up any “lost” capacity below the City’s RHNA allocation of 630 units within 6 months. For example, if a site is projected in the Housing Element for 100 units and a project is developed for 70 units, there would be a “net loss” of 30 units of capacity. The City must either rezone or identify a new site for the “net loss” of 30 units within 6 months.

Alternatively, if a site is projected in the housing element for 100 lower income units, and

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a project is developed for 100 market rate units, there would be a “net loss” of 100 lower income units. While the City will continue to monitor development activity and remaining capacity, the proposed rezoning provides sufficient capacity to meet the RHNA and reduces the likelihood that additional rezonings will be necessary. A mid-cycle review in 2026 will evaluate the City’s progress toward meeting its housing goals.

If a proposed market-rate project were to lead to a loss of lower income capacity, the City would identify an appropriate site to replace the capacity. The City is including sufficient rezoning to address potential net losses. Upon approval of a market-rate project that results in a net loss, the City would include a finding identifying the rezoned sites as replacements. This availability of additional rezoned sites prevents the City from having to complete a rezoning within 180 days, potentially multiple times over depending on the number and type of projects the City receives. This will be tracked in the Annual Progress Report (APR).

ANALYSIS:

This section provides a discussion of the proposed Ordinances amending Title 18 (Zoning) of the Grand Terrace Municipal Code, along with associated amendments to the General Plan Land Use Element and Land Use Map, and the City Zoning Map, to establish the R3-40 High Density Multiple Family Residential District and implement the City’s 2021–2029 Housing Element.

The proposed legislative action is required to maintain compliance with State Housing Element law and to ensure the City has adequate sites at appropriate densities to accommodate its Regional Housing Needs Allocation (RHNA). The amendments do not approve any specific development, and property owners are not required to redevelop their properties.

Affected Location – Development Not Required
The parcels which will be rezoned to the R3-40 zone at 20 to 40 dwelling units per acre are mapped in Figure 1 below. There are 195 parcels that will be rezoned, totaling 97.1 acres.

Listing or mapping a property as a rezone site to implement the Housing Element does not require the City or property owner to develop the property. The primary role of the Housing Element is to demonstrate capacity for housing development in the City.

Rezoning a property to increase density does not require a property owner to develop, and all current uses may remain. If new development is to occur on one of the rezoned sites, that is when the new standards must be followed. As required by the State of California, projects on sites rezoned to meet the RHNA that include at least 20 percent of units as affordable are eligible for by-right approval, streamlining the development process for developers and property owners. This includes 24 acres of the 97.1 acre rezoned, as denoted in the Housing Element.

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Figure 1: Parcels to be Rezoned to R3-40 at 20-40 du/ac Planning Commission Recommendation Procedure
Two of the five City of Grand Terrace Planning Commissioners own property within 500 feet of the rezone area. Commissioners are not allowed to discuss or vote on rezonings affecting their property. In order to maximize participation and avoid any conflicts, the discussion and Planning Commission vote on the zoning and general plan amendments was split into two parts (A and B), with each commissioner voting only on the recommendation that does not affect their property. The same zone standards applied to both halves of the split, and sites were divided based on location on which the standards would apply. Both halves of the vote recommended adoption with the same 2 clerical revisions, totaling the entire rezone map above.

Both halves of the Planning Commission vote recommended approval of the proposed amendments with two revisions to the draft ordinance.

First, the Planning Commission directed staff to revise Table 18.10.030 (Residential Land Use Regulations) to separate the currently combined land use category titled “SinglePage 339 of 594 Family (Attached) (Duplexes, Triplexes, and Fourplexes)” into separate land use classifications for clarity and consistency with current housing terminology and State law.

Second, the Planning Commission directed staff to revise Section 18.76.040(B) and (C) of the Municipal Code to further clarify the City’s regulations related to legal nonconforming buildings and structures, ensuring that existing residential properties within the rezoned areas may continue to be maintained, repaired, altered, and expanded in a clear and administratively workable manner.

These revisions have been incorporated into the draft ordinance presented to the City Council and do not alter the overall intent, density, or implementation of Housing Element Program 1.

There are no City Council members who own property within 500 feet of the rezone area.

Therefore, for City Council, the two halves of the map will be recombined.

Table 1 shows the number of parcels and acreage of the current zones which will be rezoned to R3-40.

Table 1: Current Zoning and Acreage of Parcels being Rezoned to R3-40 Current Zone Number of Parcels Acreage
R1-20 1 2.2
R1-10 2 2.3
R1-7.2 133 53.2
R2-10 51 31.5
R3-12 1 2.8
R3-24 1 2.0
BRSP 2 1.0
CM 4 2.0
TOTAL 195 97.1
General Plan Amendments (GPA) 26-01
The proposed General Plan Amendment updates the Land Use Element and Land Use Map to establish a new designation that supports higher-density residential development consistent with the Housing Element. These updates ensure consistency between the Housing Element and the General Plan and provide a clear policy framework for accommodating multifamily housing at densities necessary to meet State requirements.

The updated Land Use Element and Land Use Map are included as Exhibits D and E of Attachment 2.

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The Land Use Element text is also revised to reflect the introduction of the R3-40 designation, clarify permitted residential densities, and support a broader range of housing types. Overall, these updates are administrative in nature and are necessary to align the City’s long-range planning documents with State housing law.

Zone Change (ZC) 26-01
The proposed Zone Change updates the City Zoning Map to apply the R3-40 designation to approximately 97 acres across 195 parcels located throughout the City. The proposed Zoning Map is provided as Exhibit A.

The selection of these sites reflects an evaluation by City staff, in coordination with Michael Baker International, using both State-mandated criteria and local planning considerations. Sites were identified based on existing land use and zoning, overall suitability for higher-density residential development, and the likelihood that they could reasonably develop within the remaining Housing Element planning period. In particular, staff prioritized sites capable of achieving densities of at least 20 dwelling units per acre, as required to meet RHNA obligations, recognizing that higher-density zoning is necessary to demonstrate adequate housing capacity.

Additional factors considered included whether properties were vacant or underutilized, as well as whether any environmental constraints, access limitations, easements, or other physical conditions could limit or prevent development. Given that a large portion of the City is already developed with single-family neighborhoods, staff focused on properties that present opportunities for reinvestment over time. This includes older residential and commercial properties where future redevelopment or incremental change is more likely to occur, rather than sites that are fully built-out or constrained.

The City also considered long-term land use patterns and compatibility. A deliberate buffering approach was applied, generally transitioning from lower-density single-family neighborhoods to higher-density residential uses, and then to commercial areas. This strategy helps create a more gradual transition in scale and intensity, while also identifying locations where higher-density housing is more appropriate. In some cases, areas with properties with redevelopment potential were included to allow for gradual evolution of the built environment, rather than abrupt or incompatible changes.

Overall, the selected sites represent a balanced approach that meets State requirements while reflecting local conditions, development potential, and community context.

Zoning Code Amendment (ZCA) 26-02 (Title 18)
The proposed Zoning Code Amendment establishes the R3-40 High Density Multiple Family Residential District, allowing residential development at densities of 20 to 40 dwelling units per acre. The new zone is intended to provide the development capacity necessary to meet State housing requirements while ensuring that future development

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remains compatible with the City’s existing character. The draft ordinance is included as Attachment 1. The proposed Zoning Map is included as Exhibit A of Attachment 1.

The amendment introduces objective development standards related to building height, setbacks, site design, and overall project layout. These standards are coordinated with the City’s ongoing Objective Design Standards update to ensure consistency, clarity, and high-quality design outcomes.

Overall, the Zoning Code Amendment establishes a clear and implementable framework for higher-density residential development while responding to community input and maintaining compatibility with existing development patterns.

Public Outreach
Public outreach for these amendments was conducted in coordination with Michael Baker International and included two public meetings: a Joint Planning Commission and City Council Study Session, and a Property Owner and Community Study Session. The purpose of these meetings was to present the proposed rezoning and development standards, explain the requirements of the Housing Element, and solicit feedback from residents, property owners, and decision-makers.

More than 50 residents participated in the community study session, and over half of the participants provided comments. In addition, the City Council provided feedback during the joint study session. City staff and the consultant team actively listened to and documented the concerns and topics raised throughout the outreach process.

Several residents provided public comment during the Planning Commission hearing for the rezone, noting concerns regarding the full buildout potential should all 97 acres develop at 40 du/ac. Rather than assuming all sites will develop at maximum density, a percentage yield is utilized. The yield is created based on factors such as site-specific constraints, environmental constraints, regional development trends, and existing uses on the site. A realistic rate of development given these trends is that 800 units would be developed over 25 years at an average rate of 32 units per year. This is further described by the yield calculation.

Key issues identified included concerns related to legal nonconforming uses and structures, building height, setbacks, sightlines, density, and the ability to construct additions and Accessory Dwelling Units (ADUs). Additional concerns were raised regarding building heights in relation to Fire Department access and emergency response capabilities, as well as the ability of utility providers to accommodate higher-density development. Questions were also raised regarding stormwater runoff and infrastructure capacity associated with future development.

In response to this feedback, the proposed zoning amendments were refined to address community concerns while maintaining compliance with State law. Most notably, the maximum building height was reduced to 45 feet from earlier concepts ranging between

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50 and 55 feet. Additionally, a stepback requirement was added to the development standards which require portions of multifamily buildings over a certain height to be further set back from adjacent single family uses. Updates to Chapter 18.76 were also incorporated to ensure that owners of legal nonconforming uses and structures, such as single-family homes in the new zone will be permitted to construct additions, including the construction of ADUs and JADUs, without triggering the development requirements of the new zone. Additionally, the ordinance clarifies that any future development will be required to comply with applicable building, fire, utility, water, sewer, and stormwater regulations, ensuring that infrastructure and service considerations are adequately addressed.

Overall, the public outreach process helped shape the proposed ordinance by incorporating community input into the development standards, while balancing local concerns with the City’s obligation to comply with State housing requirements.

Public Hearing Notification
Public hearing notification for these amendments was conducted in accordance with the City of Grand Terrace’s Public Hearing and Project Noticing Policy and applicable State law requirements, including Government Code Sections 65090, 65091, and 65854.

As a legislative zoning action affecting permitted uses, public notice was provided at least 20 days prior to the public hearing, consistent with State law requirements. A public notification study was prepared to identify all properties within the required noticing radius.

Based on the project size, a 1,500-foot radius was applied, resulting in the identification of 2,595 parcel ownerships and approximately 2,337 unique mailing addresses. Mailed notice was provided to property owners and occupants within the notice area using the most current available assessor records. In addition, identified stakeholders were properly notified.

In addition to mailed notice, a public hearing notice was published in a newspaper of general circulation in accordance with City policy and State law. Public notices were also posted at designated locations, including City Hall and other public areas, to ensure broad visibility. These efforts were undertaken to provide clear, timely, and accessible information to the community.

All noticing materials, including the radius map, mailing affidavit, mailing labels, and proof of publication, have been prepared and retained in the project file in accordance with City requirements. The noticing process was completed in compliance with all applicable legal and procedural standards to ensure transparency and provide meaningful opportunities for public participation. Supporting documentation is included as Attachment 4 (Public Notification Materials).

Environmental Review
A Notice of Exemption (NOE) was prepared in accordance with the California

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Environmental Quality Act (CEQA). The proposed amendments carry out Program 1 of the City’s adopted 2021–2029 Housing Element through updates to the General Plan, Zoning Map, and Zoning Code.

This type of rezoning is exempt from CEQA under Senate Bill 131 (SB 131), codified in Public Resources Code Section 21080.085, which applies to rezonings that implement an approved Housing Element. The amendment does not approve any specific development but instead establishes the framework for future residential development.

The NOE and supporting exemption documentation are included as Attachment 1 Exhibits B and C and will be filed following approval and adoption of the proposed zone.

Based on this determination, no further environmental review is required.

Fiscal Resources
This year, the Southern California Association of Governments (SCAG) made available a Regional Early Action Planning (REAP 2.0) funding grant that must be used by December 2026. The City was proactive in coordinating with the San Bernardino County Transportation Authority (SBCTA) and San Bernardino Council of Governments (SBCOG) to utilize this opportunity to fund the rezoning efforts, objective design standards update, and development of preapproved ADU plans, all of which will be completed this year under the REAP grant. Most of the costs for this project are covered through the REAP Grant, which helps offset the bulk of the work associated with the rezoning and related updates.

City staff time for managing the project, including coordination and public hearings, will be handled through the City’s existing budget.

Overall, the grant funding, along with the use of a CEQA exemption, makes this a costeffective effort for the City to complete a required Housing Element program while keeping direct costs relatively low.

Fiscal Impact Analysis
A Fiscal Impact Analysis (FIA) was conducted to estimate the net revenue or cost to the City’s General Fund from the construction and occupancy of the potential additional dwelling units that would be allowed under the rezoning.

An annual rate of construction and household occupancy suggested by the Southern California Association of Government’s (SCAG) estimate of 5,700 households in Grand Terrace by the year 2050 was used to estimate the development potential of the new zone. Overall, the additional units are estimated to generate a cumulative fiscal surplus to the City over the next 25 years of development.

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CONCLUSION
The proposed amendments implement Program 1 of the City’s adopted 2021–2029 Housing Element by establishing the R3-40 High Density Multiple Family Residential District and rezoning approximately 97 acres to allow for higher-density residential development. These actions are necessary to address the City’s housing site shortfall and maintain compliance with State Housing Element law.

The proposed amendments provide a clear and consistent framework for future housing development while incorporating refinements based on public input and City Council feedback. The amendment balances State requirements with local considerations by introducing objective development standards, protecting existing residential uses, and ensuring compatibility with surrounding neighborhoods.

Based on the analysis provided in this report, staff recommend that the City Council adopt the resolutions to approve ZCA 26-02, GPA 26-01, ZC 26-01, along with Environmental Review 26-03.

FINDINGS:

All necessary findings for approval of the proposed amendments are included in the respective City Council resolutions provided as Attachments 1 through 5.

ATTACHMENTS:

Attachment 1 – Draft Ordinance (ZCA 26-02, ZC 26-01, and E 26-03) Attachment 1 – Exhibit A – Zoning Map
Attachment 1 – Exhibit B – Notice of Exemption (NOE)
Attachment 1 – Exhibit C – SB 131 Statutory Exemption Report Attachment 2 – City Council Resolution (GPA 26-01)
Attachment 2 – Exhibit D – Land Use Element
Attachment 2 – Exhibit E – Land Use Map
Attachment 3 – RHNA Sites Inventory Map

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Grand Terrace, California, Municipal Code
Title 18 ZONING
Grand Terrace, California, Municipal Code Created: 2025-08-06 12:43:13 [EST] (Supp. No. 15)

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ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, APPROVING ZONING CODE AMENDMENT (ZCA) 26-02, ZONE CHANGE (ZC) 26-01, AND ENVIRONMENTAL REVIEW (E) 26-03, AMENDING THE CITY ZONING MAP AND TITLE 18 (ZONING) OF THE GRAND TERRACE MUNICIPAL CODE; TO ESTABLISH THE R3-40 HIGH DENSITY MULTIPLE FAMILY RESIDENTIAL DISTRICT; TO ALLOW RESIDENTIAL DEVELOPMENT AT A DENSITY OF 20 TO 40 DWELLING UNITS PER ACRE; AND TO REZONE APPROXIMATELY 97.1 ACRES OF PROPERTY LOCATED THROUGHOUT THE CITY TO THE R3-40 DESIGNATION, CONSISTENT WITH HOUSING ELEMENT PROGRAM NO. 1 OF THE CITY’S 2021–2029 HOUSING ELEMENT.

WHEREAS, the City of Grand Terrace (“City”) has adopted a Zoning Code set forth in Title 18 of the Grand Terrace Municipal Code (“GTMC”), which regulates land use and development within the City; and
WHEREAS, Government Code Section 65580 et seq. requires cities to adopt and maintain a Housing Element that identifies and plans for the housing needs of all economic segments of the community; and
WHEREAS, on March 25, 2025, the City Council adopted the 2021–2029 Housing Element (General Plan Amendment 25-01), which identifies policies and programs to accommodate the City’s Regional Housing Needs Allocation (“RHNA”); and WHEREAS, the City’s RHNA for the 6th Cycle (2021–2029) is 630 housing units across all income levels, as determined by the Southern California Association of Governments (SCAG); and
WHEREAS, the adopted Housing Element identified a shortfall of adequate sites to accommodate the RHNA and includes Program 1 (Adequate Sites), which requires the City to rezone land to allow higher-density residential development; and WHEREAS, Program 1 requires the City to rezone approximately 97 acres throughout the City to allow residential development at densities of 20 to 40 dwelling units per acre under a new R3-40 High Density Multiple Family Residential District; and WHEREAS, on November 13, 2024, the California Department of Housing and Community Development (“HCD”) issued a letter finding that the City’s Housing Element will be in substantial compliance with State Housing Element Law upon adoption of the Housing Element and completion of the required rezoning; and
WHEREAS, State Housing Element law requires that sites identified to accommodate lower-income housing be zoned at a minimum density of at least 20 dwelling units per acre and allow for by-right residential development when affordability requirements are met; and

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Grand Terrace, California, Municipal Code
Title 18 ZONING
Grand Terrace, California, Municipal Code Created: 2025-08-06 12:43:13 [EST] (Supp. No. 15)

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WHEREAS, Zoning Code Amendment (ZCA) 26-02 establishes the R3-40 High Density Multiple Family Residential District and includes objective development standards to facilitate higher-density residential development consistent with State law; and WHEREAS, Zone Change (ZC) 26-01 amends the City Zoning Map to apply the R3-40 designation to approximately 97 acres across 195 parcels located throughout the City, as shown in Exhibit A, attached hereto and incorporated herein by reference; and WHEREAS, these actions increase housing capacity, facilitate reinvestment in underutilized properties, and ensure continued compliance with State Housing Element law; and WHEREAS, these actions do not approve any specific development project and do not require property owners to develop their property; and
WHEREAS, public outreach for these actions included a Joint Planning Commission and City Council Study Session held on January 27, 2026, and a Property Owner and Community Study Session held on February 5, 2026; and
WHEREAS, due to potential conflicts of interest involving Planning Commissioners, the Planning Commission considered these actions in two separate actions (ZCA 26-02-A / ZC 26- 01-A and ZCA 26-02-B / ZC 26-01-B); and
WHEREAS, the Planning Commission’s separate actions collectively constitute a single recommendation to the City Council; and
WHEREAS, in making its recommendation, the Planning Commission directed two revisions to the draft ordinance, including updates to Table 18.10.030 (Residential Land Use Regulations) to clarify residential land use classifications, and revisions to Section 18.76.040(B) and (C) to clarify the regulations applicable to legal nonconforming buildings and structures; and WHEREAS, the Planning Commission adopted separate resolutions recommending approval of these actions to the City Council; and
WHEREAS, the Planning Commission conducted duly noticed public hearings on April 2, 2026, in accordance with Government Code Sections 65090, 65091, and 65854; and WHEREAS, public notice for these actions was provided in accordance with State law and the Grand Terrace Municipal Code, and is included in the administrative record; and WHEREAS, the City Council conducted a duly noticed public hearing on May 12, 2026, and considered all testimony and evidence; and
WHEREAS, Zoning Code Amendment 26-02 and Zone Change 26-01 implement Program 1 (Adequate Sites) of the City’s adopted Housing Element; and

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Grand Terrace, California, Municipal Code
Title 18 ZONING
Grand Terrace, California, Municipal Code Created: 2025-08-06 12:43:13 [EST] (Supp. No. 15)

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WHEREAS, Environmental Review (E) 26-03, including the Notice of Exemption (Exhibit B) and SB 131 Statutory Exemption Report (Exhibit C), documents that these actions are exempt from CEQA pursuant to Public Resources Code Section 21080.085; and WHEREAS, the staff report and all attachments and exhibits referenced herein are incorporated into the administrative record; and
WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

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

SECTION 1. The City Council hereby specifically finds that all the facts set forth in the above Recitals are true and correct and incorporated herein by this reference.

SECTION 2. Environmental Determination (CEQA).

The City Council finds that this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080.085, as documented in Environmental Review (E) 26-03, including the Notice of Exemption (Exhibit B) and SB 131 Statutory Exemption Report (Exhibit C).

SECTION 3. Based upon the foregoing and all oral and written testimony by members of the public and City staff, the City Council hereby finds that the findings for Zoning Code Amendment (ZCA) 26-02 pursuant to Grand Terrace Municipal Code Section 18.90.040 can be made as follows:
1) Finding: The proposed amendment will not be detrimental to the health, safety, morals, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City.

Facts in Support of Finding: Zoning Code Amendment (ZCA) 26-02 establishes the R3- 40 High Density Multiple Family Residential District to implement Housing Element Program 1 and comply with State housing law.

The amendment establishes objective development standards and does not approve any specific development project. Future development will be required to comply with applicable zoning, building, and objective design standards.

The establishment of consistent zoning standards to accommodate housing consistent with State law supports orderly development and will not be detrimental to the community. 2) Finding: The proposed amendment will not be: Injurious to property or improvements in the neighborhood or within the City.

Facts in Support of Finding: The amendment modifies the City’s Zoning Code to allow higher-density residential development consistent with the Housing Element and State

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Grand Terrace, California, Municipal Code
Title 18 ZONING
Grand Terrace, California, Municipal Code Created: 2025-08-06 12:43:13 [EST] (Supp. No. 15)

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law.

All future development will be subject to applicable zoning regulations, building codes, and inspection requirements.

Because the amendment establishes regulatory standards rather than approving a specific development, it will not result in direct impacts to property or improvements and ensures that future development is compatible and appropriately regulated. 3) Finding: The proposed amendment will be consistent with the latest adopted general plan.

Facts in Support of Finding: Zoning Code Amendment (ZCA) 26-02 implements Program 1 (Adequate Sites) of the City’s adopted 2021–2029 Housing Element.

The amendment establishes the R3-40 zoning district to accommodate higher-density residential development consistent with the goals, policies, and programs of the Housing Element and Land Use Element.

The amendment ensures that the City maintains compliance with State Housing Element law and accommodates its Regional Housing Needs Allocation (RHNA), and is therefore consistent with the General Plan.

SECTION 4. Title 18 (Zoning) of the Grand Terrace Municipal Code is hereby amended to incorporate the R3-40 High Density Multiple Family Residential District and related updates, and is hereby revised in its entirety to read as follows:

Deletions as strikethroughs; additions as bold italics.

Title 18
ZONING
Chapters:

Chapter 18.03 GENERAL PROVISIONS

18.03.010 Adoption of zoning plan.

There is an adopted a zoning plan for the City. The zoning plan is a districting plan, as provided by State law. (Ord. 126 § 2, Exh. A(part), 1990)

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18.03.020 Purpose.

The purpose of this Title is to promote the growth of the City in an orderly manner and to promote and protect the public health, safety, comfort and general welfare. (Ord. 126 § 2, Exh. A(part), 1990)

18.03.030 Scope.

The zoning or districting plan effectuated by this Title is a part of the master plan and consists of the establishment of various districts, including all the territory within the boundaries of the City, within which the use of land and buildings, the space of buildings, and the height and bulk of buildings are regulated. (Ord. 126 § 2, Exh. A(part), 1990)

18.03.040 Conformance.

No buildings or structures shall be erected, reconstructed or structurally altered in any manner, nor shall any building or land be used for any purpose other than as permitted and in conformance with this Title and all other ordinances, laws and maps referred to in this Title.
(Ord. 126 § 2, Exh. A(part), 1990)

18.03.050 Interpretation.

When interpreting and applying the provisions of this Title, they shall be held to be the minimum requirements adopted for the promotion of the public health, safety, comfort, convenience and general welfare. Except as specifically provided in this Title, it is not intended by the adoption of the ordinance codified in this Title to repeal, abrogate, annul or in any way to impair or interfere with any existing provisions of laws or ordinances, or any rules, regulations or permits previously adopted or issued, or which are adopted or issued pursuant to laws relating to the erection, construction, establishment, moving, alteration or enlargement of any building or improvement. It is not intended by this Title to interfere with or abrogate or annul any easement, covenant or other agreement between parties. However, in cases in which this Title imposes a greater restriction upon the erection, construction, establishing, moving, alteration or enlargement of buildings, or the use of any building or premises in any district or districts that is imposed or required by such existing provisions of law or ordinance, or by such rules, regulations or permits, or by such easements, covenants or agreements, then in such case the provisions of this Ttitle shall control. (Ord. 126 § 2, Exh. A(part), 1990)

18.03.060 State law applicability.

Except as otherwise provided in this Title or other Cchapters of the Municipal Code, the provisions of the Government Code pertaining to zoning and planning shall be applicable to all matters as if set forth in full in this Title.
(Ord. 126 § 2, Exh. A(part), 1990)

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18.03.070 Public hearing notice.

Whenever a public hearing is held pursuant to this Title, notice of hearing shall be in accordance with California Government Code Section 65090 and Section 65091. The notice of hearing shall also comply with the following requirements:

Lot Size of the Project Site Mailing
Notification
Radius
Publications in
Local Newspaper
Less than 5 acres 500 feet Legal advertisement
5 to 9.99 acres 1,000 feet 1/8 page box advertisement
10 acres or more 1,500 feet 1/8 page box advertisement
(Ord. No. 327, § 4(Exh. 2), 10-22-2019)

18.03.080 Conditions requiring ministerial review.

Notwithstanding any other provision of this Title, the following shall not require a permit, conditional use permit, or other discretionary review or approval that would constitute a "project" for the purposes of Division 13 (commencing with Section 21000) of the California Public Resources Code:

A. Multiple family housing developments in which at least twenty percent (20%) of the total number of units, exclusive of density bonus units, are affordable to lower-income households where identified as a lower-income site to meet the Regional Housing Needs Allocation in the current Housing Element in compliance with Government Code Section 65583.2(c), and that were either:

1. Rezoned to meet the lower-income household Regional Housing Needs Allocation;

2. Non-vacant sites identified in one Housing Element prior to the current Housing Element planning period (e.g., identified in the 5th cycle before the 6th cycle); or

3. Vacant sites identified in two or more consecutive Housing Elements prior to the current Housing Element planning period (e.g., the 4th and 5th cycles before the 6th cycle).

B. Supportive housing developments in zones where multiple family and mixed-use developments are permitted, including nonresidential zones permitting multiple family use, in conformance with California Government Code Section 65651 and all objective standards applicable to multiple family residential uses.

C. Any other use or project for which State law requires the City to utilize a ministerial review process.

Chapter 18.06 DEFINITIONS

18.06.172 Common open space.
"Common open space" means a court, landscape, recreation building/facility or other outdoor area which is used for landscape and/or recreation and that has common access from more than one dwelling unit. Common open space may also include the water area of a pool and common recreation facilities or gardens located on top of a building or parking structure. Open space does not include off-street parking and loading areas or driveways.

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18.06.607 Private open space.
"Private open space" means any private balcony, porch, deck, patio, court, ground level yard or roof deck that is accessible from only one unit. Open space does not include off-street parking and loading areas or driveways.

Chapter 18.09 RESIDENTIAL DISTRICTS AND ZONING MAP

18.09.010 Purpose.

The purpose of this Chapter is to establish the various residential zoning districts within the City. (Ord. No. 357, § 4, 8-13-2024; Ord. 126 § 2, Exh. A(part), 1990)

18.09.020 Districts established.

The following residential zoning districts are established:

RH Hillside Single Family Residential District
R1-20 Very Low Density Single Family Residential District R1-10 Low Density Single Family Residential District
R1-7.2 Single Family Residential District
R2-10 Low Medium Density Multiple Family Residential District R3-12 Medium Density Multiple Family Residential District R3-S Multiple Family Senior Citizen
R3-20 Medium High Density Multiple Family Residential District R3-4024 High Density Multiple Family Residential District BRSP Barton Road Specific Plan District
AP Administrative Professional Office District
C2 General Business District
CM Commercial Manufacturing District
MR Restricted Manufacturing District
M2 Industrial District
PUB Public Facilities District
FP Floodplain Overlay District
AG Agricultural Overlay District
R3-24 High Density Residential Overlay District
GSP The Gateway at Grand Terrace Specific Plan
(Ord. No. 357, § 4, 8-13-2024; Ord. No. 298, § 7, 10-11-2016; Ord. No. 264, § 10, 6-12-2012; Ord. 126 § 2, Exh. A(part), 1990)

18.09.021 Overlays established.

AG-1 Agricultural Overlay No. 1

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AG-2 Agricultural Overlay No. 2
FP Floodplain Overlay
O-40 High Density Multiple Family Residential Overlay

18.09.022 Specific Plans established.

BMSP The Blue Mountain Specific Plan
BMSVSP The Blue Mountain Senior Villas Specific Plan
BRSP The Barton Road Specific Plan
GBSP The Greenbriar Specific Plan
GSP The Gateway at Grand Terrace Specific Plan

18.09.030 Designation on map and adoption of map.

The designations, locations and boundaries of the districts established are delineated upon the official zoning map on file with the Planning Department. This map and all notations and information thereon, which may be amended from time to time, are made a part of this Title by reference. (Ord. No. 357, § 4, 8-13-2024; Ord. 126 § 2, Exh. A(part), 1990)

18.09.040 Applicability of regulations.

The uses described in this Title will be allowed and the regulations set out in this Title shall apply in the districts established in this Chapter.
(Ord. No. 357, § 4, 8-13-2024; Ord. 126 § 2, Exh. A(part), 1990)

18.09.050 Boundary uncertainties.

Where uncertainty exists as to the boundaries of any districts shown on the zoning map, the following rules shall apply:

A. Where such boundaries are indicated as approximately following street and alley lines, such lines shall be construed to be such boundaries.

B. Where an uncertainty exists, the Planning Commission shall determine the location of boundaries.

C. Where a public street or alley is officially vacated or abandoned, the regulations applicable to the parcel to which it reverts shall apply to such vacated or abandoned street or alley. (Ord. No. 357, § 4, 8-13-2024; Ord. 126 § 2, Exh. A(part), 1990)

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Title 18 - ZONING
Chapter 18.10 RESIDENTIAL DISTRICTS
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Chapter 18.10 RESIDENTIAL DISTRICTS1

18.10.010 Purpose.

The residential zones contained in this Chapter are intended to carry out the goals and objectives of the community's Ggeneral Pplan, Housing Element, and Sstate Hhousing Llaw with respect to residential land uses and residential development. These goals and objectives are to be achieved through the following purposes established for the residential zones:

A. To provide for development in accordance with the Ggeneral Pplan; B. To promote the most appropriate and efficient use of the land while providing a variety of housing opportunities to the community;
C. To promote a compatible relationship between residential, commercial and other types of land uses located in the community;
D. To promote the public health, safety and welfare through encouraging the appropriate type and size of development for the community;
E. To manage development with respect to its type, size and location in order to prevent harmful encroachment of disruptive development into the community's residential neighborhoods. (Ord. 146 § 1(part), 1993: Ord. 126 § 2, Exh. A(part), 1990) 1Ord. No. 264, § 11, adopted June 12, 2012, changed the title of Chapter 18.10 from "RH, R1, R2, R3 and R3-S Residential districts" to "Residential districts."

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The provisions of Section 18.03.080 shall apply in determining projects that shall not require a permit, conditional use permit, or other discretionary review or approval.

18.10.020 Residential districts.

The following districts are designed to implement the goals and objectives of the Ggeneral Pplan. Each district contains specific land use regulations and density ranges for development.

A. RH, Hillside Single Family Residential District. This district is intended for very low density single-family residential development with a maximum retention of open space. It is located in the portions of the City identified in the Ggeneral Pplan's master environmental analysis as having severe development limitations related to topography and soil conditions. The maximum density allowed in this district is one (1) dwelling unit per gross acre.

B. R1-20, Very Low Single Family Residential District. This district is intended for very low density single-family residential use. The minimum lot size is 20,000 square feet with a maximum density of two (2) dwelling units per gross acre. Deviations from the above minimum lot size and maximum density can occur in compliance with the following

1. Small Lot Subdivisions established by the “Starter Home Revitalization” Act of 2021, which is codified in state law under Government Code Section 65852.28, Section 65913.4.5, and Section 66499.41, and the City Municipal Code Title 17 and Title 18.

2. Urban Lot Splits established by the Housing Opportunity and More Efficiency “HOME” Act of 2021, which is codified in state law under Government Code Section 66452.6, Section 65852.21, and Section 66411.7, and the City Municipal Code Title 17 and Title 18.

C. R1-10, Low Density Single Family Residential District. This district is intended for low density single-family residential use. The minimum lot size is 10,000 square feet with a maximum density of four (4) dwelling units per gross acre. Deviations from the above minimum lot size and maximum density can occur in compliance with the following:

D. R1-7.2, Single Family Residential District. This district is intended for single-family residential use. The minimum lot size is 7,200 square feet with a maximum density of five (5) dwelling units per gross acre.

Deviations from the above minimum lot size and maximum density can occur in compliance with the following:

E. R2-10, Low Medium Density Multiple Family Residential District. This district is intended for single-family residential use and low density multiple family development. The minimum lot size is 10,000 square feet

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with a maximum density of nine (9) dwelling units per gross acre. Deviations from the above minimum lot size and maximum density can occur in compliance with the following:

F. R3-12, Medium Density Multiple Family Residential District. This district is intended for medium density multiple family development. The minimum lot size is 12,000 square feet with a maximum density of twelve (12) dwelling units per gross acre. Deviations from the above minimum lot size and maximum density can occur in compliance with the following:

G. R3-S, Medium Family, Senior Citizen. This district is intended for the development of senior citizen housing.

The maximum density shall not exceed 20 units per acre. The development standards shall be established through specific plan process.

GH. R3-20, Medium High Density Multiple Family Residential District. This district is intended for medium highhigher density multiple family development, which may include affordable housing. The minimum lot size is 12,000 square feet with a maximum density of twenty (20) units per acre. Deviations from the above minimum lot size and maximum density can occur in compliance with the following:

I. R3-24, High Density Residential District. This district is intended for high density multiple family development, which may include affordable housing. The minimum lot size is 12,000 square feet with a minimum density of 20 units per acre and a maximum density of 24 units per acre.

H. R3-40, High Density Multiple Family Residential District. This district is intended for high density multiple family development, which may include affordable housing. The minimum lot size is 5,500 square feet with a minimum density of twenty (20) units per acre and a maximum density of forty (40) units per acre.

Example project types may include garden-style apartments, courtyard buildings, townhomes, multiplexes, and other multiple family housing types. Single-family residential development or any residential development at a density less than twenty (20) dwelling units per acre is prohibited. (Ord. No. 298, § 8, 10-11-2016; Ord. No. 264, §§ 12, 13, 6-12-2012; Ord. No. 231, § 1(Exh. D), 9-11-2007; Ord. 126 § 2, Exh. A(part), 1990)

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18.10.021 Small lot subdivisions.

Deviations from the noted minimum lot size in all residential districts may occur in compliance with the following:

A. Small lot subdivisions established by the Starter Home Revitalization Act of 2021, which is codified in State law under Government Code Section 65852.28, Section 65913.4.5, and Section 66499.41, and the City Municipal Code Title 17 and Title 18.

B. Urban lot splits established by the Housing Opportunity and More Efficiency “HOME” Act of 2021, which is codified in State law under Government Code Section 66452.6, Section 65852.21, and Section 66411.7, and the City Municipal Code Title 17 and Title 18.

Deviations from the minimum density standards may also occur pursuant to Chapter 17.29 of the zoning ordinance, Small Lot Subdivisions "Starter Home Revitalization Act.” This includes a requirement that small lot subdivisions on parcels identified in the Housing Element for the current planning period must result in at least as many units as projected for the parcel in the Housing Element. For small lot subdivisions on parcels not identified in the Housing Element for the current planning period, the development must result in sixty-six percent (66%) of the maximum allowable residential density specified in the zoning district in which the parcel is located, or sixtysix percent (66%) of the applicable residential density specified in Government Code Section 65583.2(c)(3)(B), whichever is greater. If the zoning district in which the parcel is located does not specify a maximum allowable density, then the development must result in sixty-six percent (66%) of the applicable residential density specified in Government Code Section 65583.2(c)(3)(B).

18.10.030 Use regulations.

Uses listed in Table 18.10.030 shall be allowed in one or more of the residential districts as indicated in the columns below each district heading. Permitted uses are indicated by the letter "P" while the letter "C" indicates uses which require a conditional use permit. A dash (“-“) indicates the use is not permitted in the specified zone.

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TABLE 18.10.030

RESIDENTIAL LAND USE REGULATIONS
Permitted Uses RH R1-20 R1-10 R1-7.2 R2-10 R3-12 R3-S
R3-20
/R3-24 R3-40
A. Residential Uses
Single-Family (Detached),
Full Sized

P P P P P
a Pb
- - -
Second Units (Subject to
Chapter 17.30 and 18.65)
P
g Pg Pg Pg
- - - - -
Two-Unit Developments
(Subject to Chapter 17.30
and 18.65)
P
g Pg Pg Pg
- - - - -
Single-Family (Attached)
(Duplexes, Triplexes, and
Fourplexes)
- - - - P P - P -
Duplexes, Triplexes, and
Fourplexes

P P P P
Multiple Family Units - - - - P P - P P
Manufactured Housing (As
Permitted Per Chapter

18.66)

P P P P P P P P
Mobile Home Park - - - - C C C C
Senior Citizen Housing - - - - - - P
d P P
Small Lot Subdivision
"Starter Home Revitalization
Act" (Subject to Chapters

17.29 and 18.10)
P P P P P P P P PUrban Lot Splits “Housing
Opportunity and More
Efficiency” (HOME) Act of
2021 (Subject to Chapters

17.29 and 18.65)
- P P P - - - - -
Planned Residential
Development (As Permitted
Per Section 18.10.090)
- - - - P P P P P
B. Residential Accessory Structures

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Permitted Uses RH R1-20 R1-10 R1-7.2 R2-10 R3-12 R3-S
R3-20
/R3-24 R3-40
Accessory Structure P P P P P P P
d P P
Accessory Dwelling Unit
(Subject to Chapter

17.30 and 18.69)

P P P P P P P P P
Junior Accessory Dwelling
Unit
(Subject to Chapter 17.30
and 18.69)

P P P P P P P P
Guest House C C C C C C - - -
Private Garage P P P P P P - P P
Private Swimming Pool P P P P P P P
d P P
Home Occupation (As
Permitted Per Chapter 5.06)

P P P P P P P
d P P
Keeping of Cats and Dogs
(Maximum of Two Each)

P P P P P P P
d P P
Other Accessory Uses (As
Approved by the Planning
and Community
Development Director)

P P P P P P P
d P P
C. Other Uses
Churches (Minimum ThreeAcre Parcel)eC C C C C C - C- C d
Electric Vehicle Charging
Stations (accessory use)i

P P P P P P P P P
Schools (Private and
Parochial)e

C C C C C C - C- C
d
Public Park and Playgrounde P P P P P P - P- P
d
Public Facilities (aAnd QuasiPublic)eC C C C C C - - - Family Day Care Small (Eight
or Less Children)e

P P P P P P - P P
Family Day Care Large (Nine
or More Children)e

P P P P P - - P P

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Permitted Uses RH R1-20 R1-10 R1-7.2 R2-10 R3-12 R3-S
R3-20
/R3-24 R3-40
Residential Care Facility (Six
or Less Persons)

P P P P P P P P P
Residential Care Facility
(Seven or More Persons)f
- - - - C C - P P
State Licensed Congregate
Living Health Facility (CLHF)h
- - - - C C C C C
Single Room Occupancy - - - - C C - - -
Utility or Service Facilitye C C C C C C - - -
Outdoor Recreation Facilitye C C C C C C - - -
D. Temporary Uuses
Temporary Uses (As
Aapproved by Planning and
Community Development
Director)

P P P P P P P
d P P
Temporary Trailers (As
Approved by Planning and
Community Development
Director)

P P P P P P P
d P P
Footnotes:
a. A second single-family detached unit (full-sized single-family detached dwelling) shall be permitted in the R2-10 zone provided that the lot or parcel in question meets the minimum area requirement for the R2-10 zone and that said lot or parcel is developed with no more than one single-family detached dwelling. A Land Use Permit review application for the second-family detached unit in accordance with Chapter 18.63 of the Zoning Code shall be ministerially approved prior to the issuance of building permits. In addition, all development standards of the underlying R2-10 zone must be adhered to; and any division in ownership among the structures on the lot or parcel in question shall conform to the subdivision laws of the Sstate and Ccity. b. A second-family detached unit (full sized single-family detached dwelling) shall be permitted in the R3-12 zone provided that the lot or parcel in question meets the minimum area requirements for the R3-12 zone and that said lot or parcel is developed with no more than one single-family detached dwelling. A Land Use Permit review application for the second- family detached unit in accordance with Chapter 18.63 of the Zoning Code shall be required to be approved prior to the issuance of building permits. All development standards of the underlying R3-12 zone must be

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adhered to; and any division in ownership among the structures on the lot or parcel in question shall conform to the subdivision laws of the Sstate and Ccity. c. "P" stands for "Permitted Use" where the use is permitted by right; and "C" stands for "Conditional Use" where the use requires a conditional use permit.
d. Churches, schools (private and parochial), public parks, and playgrounds shall be permitted in the R3-40 zone for projects where at least fifty percent (50%) of the gross floor area is multiple family residential use. Senior citizen housing is allowed in the R3-S up to a maximum density of twenty (20) unit/acre. A specific plan will be required for all senior citizen housing projects in this zone. e. Notwithstanding anything indicating otherwise in this Table, this use is prohibited on a parcel that was created by an urban lot split, pursuant to Subsection 17.30.050(A). f. Subject to administrative conditional use permit.
g. Notwithstanding anything indicating otherwise in this Table, this use shall be prohibited if the finding of a specific, adverse impact is made in accordance with Subsection 18.65.020(C). h. CLHFs are required to comply with the City's Objective Design Standards (ODS) and a State license is required to operate as a Congregate Living Health Facility (CLHF) in California. A CLHF means a residential home with a capacity of no more than 18 beds (except a facility operated by a city and county for purposes of delivering services may have a capacity of 59 beds; or, a facility not operated by a city and county servicing persons who are terminally ill, persons who have been diagnosed with a life-threatening illness, or both, that is located in a county with a population of 500,000 or more persons, or located in a county of the 16th class pursuant to Section 28020 of the Government Code, may have not more than 25 beds for the purpose of serving persons who are terminally ill) that provides inpatient care, including the following basic services: medical supervision, 24-hour skilled nursing and supportive care, pharmacy, dietary, social, recreational, and at least one type of the following service:
(A) Services for people who are mentally alert, people with physical disabilities, who may be ventilator dependent.
(B) Services for people who have a diagnosis of terminal illness, a diagnosis of a lifethreatening illness, or both. Terminal illness means the individual has a life expectancy of six months or less as stated in writing by his or her attending physician and surgeon. A "life-threatening illness" means the individual has an illness that can lead to a possibility of a termination of life within five years or less as stated in writing by his or her attending physician and surgeon.
(C) Services for persons who are catastrophically and severely disabled. A person who is catastrophically and severely disabled means a person whose origin of disability was acquired through trauma or nondegenerative neurologic illness, for whom it has been determined that active rehabilitation would be beneficial and to whom these services are being provided. Services offered by a congregate living health facility to a person who is catastrophically disabled shall include, but not be limited to, speech, physical and occupational therapy.

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i. Residential Electric Vehicle Charging Stations shall be processed by the City in compliance with AB 970 (McCarty, 2021) subject to the specific binding timelines for the expedited, streamlined, ministerial review and approval of Electric Vehicle Charging Station (EVCS) permit applications per Assembly Bill 1236 (Chiu, 2015). The review periods for Electric Vehicle Charging Stations are determined based on the size of the proposed project.

Application Completeness
• 1-25 Electric Vehicle Charging Stations at a single site: 5 business days • 26 or more stations at a single site: 10 business days Application Approval
• 1-25 Electric Vehicle Charging Stations at a single site: 20 business days • 26 or more stations at a single site: 40 business days Conditions of Approval for Expedited Review
• A completed Submittal Requirements Checklist.
• All proposed Electric Vehicle Charging Stations and equipment shall conform with the City of Grand Terrace Objective Design Standards (ODS)
• Electric Vehicle Charging Station equipment including transformers, generating stations, energy storage units, and any other electric vehicle charging station related equipment must be adequately screened from visible view to the satisfaction of the City by one or combination of the following:
• Permanent masonry enclosure with decorative block wall and metal roof covering.

Access gates/doors to be lockable and secure.
• Shrink wrap material acceptable to the City's Oobjective Ddesign Sstandards k. State Law SB 234 known as the “California Child Day Care Facilities Act” of 2021 designates small and large family daycare homes as a residential use of property. SB234 prohibits a local jurisdiction from imposing a business license, fee, or tax for the privilege of operating a small family daycare home and large family daycare home.
(Ord. No. 359, § 6, 8-13-2024; Ord. No. 338, § 13, 5-24-2022; Ord. No. 336-U, § 16, 1-25-2022; Ord. No. 298, § 9, 10-11-2016; Ord. No. 264, §§ 14, 15, 6-12-2012; Ord. No. 231, § 1(Exh. D), 9-11-2007; Ord. 199 §§ 4, 5, 2002; Ord. 126 § 2, Exh. A(part), 1990)

18.10.040 Site development standards.

The site development standards established for each residential district are as shown in Table 18.10.040.

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TABLE 18.10.040

RESIDENTIAL BUILDING SITE DEVELOPMENT STANDARDS
Development Feature Zone RH R1-20 R1-10 R1-7.2 R2-10 R3-12 R3-S R3-20 R3-40h
R3-24
Lot Area1 _
a 20,000 10,000 7,200 10,000 12,000 _g 12,000 5,500
12,000
Lot Area (Small Lot
Subdivision)1
_
a 1,200 1,200 1,200 600 600 _g 600 600
Lot Width2 _
a 100 60 60 60 60 60 5060
Lot Depth2 _
a 150 100 100 100 100 _g 100 90100
Front Yard Setback2 _
a 25b 25b 25b 25b 25b
- 25b 15b
25b
Rear Yard Setback2 _
a 35b 35b 20b 20b 20b
- 20b 15b
20b
Side Yard
- Interior Lot _
g
With Garage _
a 10b 10b 10b 10b 10b
- 10b 10b
Without Garage _
a 5b 5b 5b 5b 10b
- 10b 10b
- Corner Lot
Street sSide Yard
Setback2
_
a _b15b _b15b _b15b _b15b _b15b
- _
b15b _b15b
Setback from Single Family
Zone for Portion of Multiple
Family Building over 25 Feet
in Height2
_
a
- - - - - - 20b
No Street side _
a 5 5 5 5 10 - 10 10
Density3 _
a 1-2 1-4 1-5 1-9 1-12c Max.
20 13-20c 20-40
24c
Density3 (Small Lot
Subdivision)
_
a
- - - - - - - -
Living Area (Minimum square feet)

* Single Family _a 1,350d 1,350d 1,350d 1,350d 1,350d
- - -

* Duplex, Triplex, Fourplex and Multiple Family
_
a
- - - - - _
g _g
-_
g
- One (1) Bedroom _
a
- - - 800d 800d- - -
- Two (2) Bedroom _
a
- - - 1,000d 1,000d- - -

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Development Feature Zone RH R1-20 R1-10 R1-7.2 R2-10 R3-12 R3-S R3-20 R3-40h
R3-24
Height4 _
a 35e 35e 35e 35e 35e _g 35e 4535e
Lot Coverage (Maximum
percent)
_
a 40 50 50 60f 60 _g 60 7560
Distance Between Buildings2 _
a 5 5 5 2010 2010 _g 2010 2010
Private Open Space1 _
i _i _i _i _i _i _i 50
sf/du
for not
less
than
twenty
-five
percen
t (25%)
of
total
units i
Common Open Space _
i _i _i _i _i _i _i 50
sf/du i
Footnotes:
1 Minimum Square Feet
2 Minimum Linear Feet
3 Residential Dwelling Units pPer Gross Acre not counting any density bonus 4 Maximum Linear Feet
a. A specific plan shall be required for all proposed projects (including tentative parcel or tract maps) which include any property located within this district, except that a specific plan shall not be required for existing parcels that are one acre or less in size, are readily served by existing infrastructure, have public access, and fire services can be readily provided. Such specific plan shall establish site development standards on a project by project basis in consideration of the existing topography and other physical constraints.

The specific plan shall not create a density greater than one (1) dwelling unit per gross acre and shall be consistent with the Ccity's Ggeneral Pplan. The specific plan may consider a clustered development concept in order to preserve large areas of open space and minimize the project's impact on the physical environment.

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b. The following exceptions apply to front, rear and side yard requirements as noted:

1. The minimum side and rear yard setback for a patio cover shall be five (5) feet.

2. The minimum rear yard setback for an accessory structure shall be ten (10) feet.

13. Slopes exceeding five percent (5%) shall be permitted no closer to a residential structure than a distance equal to the required side and rear yard setbacks. In the R1-10 district and the R1-20 district, the thirty-five (35) foot rear yard setback may include ten (10) feet of slope that is greater than five percent (5%).

24. In the case of a parcel or tract map, the twenty-five (25) foot front yard setback requirement may range from twenty-two (22) feet to twenty-eight (28) feet, with an average of twenty-five (25) feet for all proposed lots.

35. In the case where an existing legal nonconforming structure is located within a required setback area, the legal nonconforming structure may be enlarged within the required setback area subject to the following conditions:
a. The proposed addition does not further reduce the depth of the existing setback area; and
b. The proposed addition is located no closer than five (5) feet from any property line.

4. For the R1-20, R1-10, and R1-7.2 zones, the minimum total side yard setback of all side yards combined shall be no less than fifteen (15) feet, with a minimum side yard setback of five (5) feet on any one side, or ten (10) feet on the driveway or garage side.

5. For all R2 and R3 zones, the minimum total side yard setback of all side yards combined shall be no less than twenty (20) feet, with a minimum side yard setback of five (5) feet on any one side.

6. No portion of any multiple family building over 25 feet in height shall be closer than 20 feet to a property line abutting a single family zone. c. A density bonus shall be permitted in accordance with the California Government Code and this Title.
d. For the purposes of this Cchapter, the following terms shall be defined as follows:
"Living area" means the enclosed area of a residential dwelling unit, excluding porches, patios, carports, garages, storage areas or auxiliary rooms. "Multiple-family" means one- or two-bedroom units only. e. Accessory structures shall not exceed twenty feet in height, with exceptions as listed in Section 18.73.090 of this title.
f. Not more than the permitted percent of the total parcel may be devoted to main and accessory structures, parking areas, driveways and covered patios. The remaining percent

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of the total parcel shall be devoted to open areas such as landscaping, lawn, outdoor recreational facilities, incidental to residential development, including swimming pools, tennis courts, putting greens, uncovered patios and walkways. Said open areas shall consist of not less than two hundred (200) square feet of open space per dwelling unit. g. Senior citizen housing's development standards will be established through the specific plan process. All senior citizens housing projects in the R3-S zone will require specific plan process; however, in no circumstance shall the density exceed twenty (20) unit/acre. h. Development is prohibited within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Government Code Section 51178, or within the State responsibility area, as defined in Section 4102. This does not apply to sites that have adopted fire hazard mitigation measures pursuant to existing building standards or State fire mitigation measures applicable to the development, including but not limited to standards established under all of the following provisions or their successor:
(1) Section 4291 of Section 51182 of the Government Code, as applicable. (2) Section 4290.
(3) Chapter 7A (commencing with Section 701A.1) of Part 2 of Title 24 of the California Code of Regulations.
i. Refer to the Objective Design Standards for multiple family residential development and mixed-use development for regulation of open space requirements. (Ord. No. 325, § 4(Exh. 1), 5-28-2019; Ord. No. 298, § 10, 10-11-2016; Ord. No. 264, §§ 16, 17, 6-12-2012; Ord. No. 231, § 1(Exh. D), 9-11-2007; Ord. 146 § 1(part), 1993; Ord. 126 § 2, Exh. A(part), 1990)

18.10.041 Residential supplemental development standards.

A. Accessory uses and structures.

1. Required setbacks.

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Table 18.10.041
Required Setbacks For Accessory Structures
Accessory Structure Type of Setback
Minimum Required
Setback
(Single Family)
Minimum
Required Setback
(Multiple Family)
Interior side yarda,b 5 feet -
Street side yard 5 feet -
Rear yard 5 feet -
Patio covers,
gazebos, storage
shedsd, e, stationary
barbecues, gas
fireplaces, gas fire
pits, canopies and
similar structures
Between structures
over 120 square feet
of area
6 feet -
Interior side yard 5 feet 5 feet
Street side yard 5 feet 5 feet
Rear yard 15 feet 15 feet
Enclosed patios
Rear yard when
backing up to an
arterial roadway,
railroad right-of-way,
Southern California
Edison right-of-way,
County flood control
channel, or
nonresidential zoned
property
10 feet 10 feet
Interior side yard 5 feet 5 feet
Street side yard 5 feet 5 feet
Workshops
Rear yard 10 feet 10 feet
Front setback – above
yard area
15 feet 15 feet
Front setback – front
entry garagec
23 feet 23 feet
Interior side yard 10 feet 10 feet
Balconies
Street side yard 5 feet 5 feet

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Rear yard 15 feet 15 feet
Rear yard when
backing up to a street,
railroad right-of-way,
Southern California
Edison right-of-way,
County flood control
channel, or
nonresidential zoned
property
10 feet 10 feet
Interior side yard 5 feet 5 feet
Street side yard 10 feet 10 feet
Rear yard 5 feet 5 feet
Swimming pool
Front yard 15 feet 15 feet
Notes:
a. On lots with only one side yard, the minimum required side setback for patio covers shall be three (3) feet.
b. Condominiums and townhouses shall have a minimum side yard setback of three (3) feet for patio covers.
c. For side entry garages, setback to be determined by City Council at the time of Site and Architectural Review or amendment to Site and Architectural approval. d. Storage sheds requiring building permit per California Building Code Section 105.1 must adhere to zoning setbacks. Storage sheds exempt from building permits per the California Building Code Section 105.2 are exempt from zoning setback requirements.
e. The total number of exempt storage sheds allowed on a single-family district lot shall not exceed four hundred eighty (480) square feet of total aggregate area.

2. Maximum height for an accessory structure.

Table 18.10.050-2
Maximum Height For Accessory Structures
Accessory Structure Maximum Height

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Patio covers and gazebos 12 feet
Storage sheds and similar structures 8 feet
Workshops 12 feet
Stationary barbecue, gas fireplaces, and gas fire pits 8 feet Canopies 10 feet

3. Specific accessory structure development standards.
a. Balconies or decks for single-family structures.
i. Outside stairway. There shall be no outside stairway in single-family districts.
ii. Screen or guardrail. A minimum thirty-six (36) inch high screen or guardrail shall be constructed of materials compatible with the design of the structure.
iii. Screen wall. A screen wall, a minimum of six (6) feet in height, shall be constructed on both sides (ends) of the balcony or deck for the full depth of the balcony or deck or as required by the conditions of approval. This requirement may be waived by the Planning and Community Development Director where it is clear that the balcony will not negatively impact adjacent residential properties.
iv. Maximum size. The maximum size of a balcony or deck shall be one hundred twenty (120) feet square feet.
v. Doors. There shall be no outside doors above the first story except when allowed with an approved balcony or deck.
vi. Enclosure. Balconies or decks shall not be enclosed except by the adjoining residential unit and any required screen walls. b. Patio covers. Patio covers shall not cover more than fifty percent (50%) of the required rear yard area.
c. Storage sheds. Storage sheds shall not exceed one hundred twenty (120) square feet in area. Permanent electrical service shall not be allowed within storage sheds.
d. Workshops.
i. Minimum/maximum. Workshops shall have a minimum area of one hundred twenty (120) square feet and not exceed a maximum area of four hundred (400) square feet.
ii. Habitable area. Workshops shall not contain any habitable areas and shall not be used for habitation of humans.

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iii. Enclosure. Workshops shall be fully enclosed and shall contain at least one (1) door not less than thirty-two (32) inches in width and may contain no interior walls. If greater than two hundred (200) square feet, workshops shall contain a window with a minimum dimension of twentyfour (24) inches by thirty-six (36) inches. iv. Permit. Building permits are required for workshops. v. Separation. Workshops shall be located at least ten (10) feet from any portion of a residential structure.
e. Canopies.
i. Location. Canopies are not to be permitted in the front yard area or visible from the public-right-of-way.
ii. Maintenance. Canopies shall be maintained and remain in good condition at all times.
iii. Temporary permitted use. Canopies may be located in a front yard area or be visible from the public right-of-way for up to seventy-two (72) hours, with a temporary use permit.

18.10.060 Mechanical Equipment
A. Mechanical equipment.

1. Location. Mechanical equipment (e.g., HVAC units) may be located in the rear yard, side yard, or on the roof. Such equipment may only be located in an interior side yard if it is not feasible to locate it in the rear yard. All equipment in the side yard shall be located at the farthest possible location away from windows on the adjacent property but in no case shall the equipment be less than ten (10) feet from any window on the adjacent property. Pool equipment is only permitted in the rear yard area.

2. Visibility. All reasonable efforts shall be taken to ensure that mechanical equipment is not visible from public streets and is screened from view of adjacent residential properties in a manner approved by the Planning and Community Development Director.

3. Chimney structures.
a. Chimney structures that are incorporated within or affixed to the exterior of a residential structure shall be enclosed within a chassis and finished with brick, rock, stucco, or wood/metal siding. All materials, except for brick and rock, used for the chimney are required to be painted with colors that are compatible with the residence and any other chimney structure on the residence.

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b. Round metal pipes, clay pipes, guy wires, and straps for chimneys shall be fully enclosed within the chassis and shall not be visible from the property line. c. Gas vent pipes and other mechanical ducts that are less than six (6) inches in diameter when leaving the interior of the structure are exempted from these requirements.

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( Ord. No. 352, § 2, 3-26-2024; Ord. No. 260, § 5(Exh. 1), 1-24-2012) Chapter 18.76 NONCONFORMING USES AND BUILDINGS
Sections:

18.76.010 Purpose.

The purpose of this Chapter is to establish the permitted use, expansion and maintenance of nonconforming uses and buildings located within the Ccity.
(Ord. 151 § l(part), 1994: Ord. 126 § 2, Exh. A(part), 1990)

18.76.020 Nonconforming use of land.

The lawful use of land existing at the time of the adoption of the ordinance codified in this Ttitle, although such use does not conform to the regulations, specified in this Ttitle for the district in which such land is located, may be continued; provided, that no such use shall be enlarged or increased, nor be extended to occupy a greater area than that occupied by such use at the time of the adoption of the ordinance codified in this Ttitle, and when any such use ceases the subsequent use of such land shall be in conformity to the regulations specified by this Ttitle for the district in which such land is located.
(Ord. 151 § 1(part), 1994: Ord. 126 § 2, Exh. A(part), 1990)

18.76.030 Nonconforming use of buildings.

A. The lawful use of a building existing at the time of the adoption of the ordinance codified in this Ttitle may be continued, although such use does not conform to the regulations specified for the district in which the building is located.

B. The nonconforming use of a portion of a building may be extended throughout the building; provided, that in each case a use permit shall first be obtained.

C. The nonconforming use of a building may be changed to a use of the same or more restricted nature; provided, that in each case a use permit shall first be obtained.

D. If the nonconforming use of a building and/or operations within a building ceases for a continuous period of six (6) months, it shall be considered terminated and the building shall thereafter be used only in accordance with the regulations for the district in which it is located. In no case shall a residential use that was lawfully established according to the standards at the time of development in a residential zone be required to be terminated or removed.
(Ord. 151 § 1(part), 1994: Ord. 126 § 2, Exh. A(part), 1990)

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18.76.031 Termination—Discontinuance of use.

A. Such discontinuance of the active and continuous operation of such nonconforming use, or part or portion thereof, for such periods, is construed and considered to be an abandonment of such nonconforming uses, regardless of any reservation of an intent not to abandon same or of an intent to resume active operations.

B. If actual abandonment in fact is evidenced by the removal of buildings, structures, machinery, equipment and other evidences of such nonconforming use of the land and premises, the abandonment shall be construed and considered to be completed within a period of six (6) months and all rights to reestablish or continue such nonconforming use shall thereupon terminate.
(Ord. 151 § 1(part), 1994)

18.76.032 Termination—Violation of laws.

Any of the following violations of the municipal code shall immediately terminate the right to operate a nonconforming use except as otherwise provided:

A. Changing a nonconforming use to a use not permitted in the zone; B. Increasing or enlarging the area, space or volume occupied by or devoted to such nonconforming use; C. Addition to a nonconforming use of another use not permitted in the zone. (Ord. 151 § 1(part), 1994)

18.76.033 Termination—Operation of use.

The following nonconforming uses and structures shall be discontinued and structures removed from their sites within the time periods specified in this section, commencing with January 27, 1994, except when extended or revoked as otherwise provided:

A. Where the property is unimproved, one (1) year;
B. Where the property is unimproved except for structures of a type for which the Ccity building code does not require a building permit, three (3) years;
C. Where the property is unimproved except for structures which contain less than one hundred (100) square feet of gross floor area, three (3) years;
D. Signs, three (3) years;
E. A nonconforming use conducted in a structure designed to serve a use permitted in the zone, five (5) years; F. In other cases twenty (20) years from January 27, 1994, or amendment thereto establishing nonconforming status, and for such longer time so that the total life of the structure from the date of construction, based on the type of construction as defined by the building code, will be as follows:

1. Type IV and Type V buildings (light incombustible frame and wood frame) used as:
a. One-family dwellings, two-family dwellings, three-family dwellings, apartment houses and other buildings used for residential occupancy, twenty-five (25) years, b. Stores and factories, twenty-five (25) years,
c. Any other building not herein enumerated, twenty-five (25) years;

2. Type III buildings (heavy timber construction and ordinary masonry) used as:

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(Supp. No. 15)

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a. One-family dwellings, two-family dwellings, three-family dwellings, apartment houses, offices and hotels, thirty (30) years,
b. Structures with stores below and residences, offices or a hotel above, thirty (30) years, c. Warehouses, stores and garages, thirty (30) years,
d. Factories and industrial buildings, thirty (30) years;

3. Type I and Type II buildings (fire-resistive) used as:
a. One-family dwellings, two-family dwellings, three-family dwellings, apartment houses, offices and hotels, thirty (30) years,
b. Theaters, warehouses, stores and garages, thirty (30) years, c. Factories and industrial buildings, thirty (30) years. (Ord. 151 § 1(part), 1994)

18.76.034 Termination—Abatement as a public nuisance.

Whenever a nonconforming use or structure becomes obsolete, dilapidated, substandard, unsafe, or exists in a state of general disrepair, the Pplanning Ccommission may hold a public hearing to evaluate and make declaration of nuisance.
(Ord. 151 § 1(part), 1994)

18.76.040 Nonconforming buildings.

A. No use permit is required for the following:

1. Ordinary maintenance and repairs may be made to any nonconforming building; provided, that no structural alterations and/or additions are made; provided further, that such maintenance and repairs do not exceed twenty-five percent (25%) of the assessed value of the building in any one (1) -year period;

2. Any repairs necessary to bring a nonconforming building into compliance with Ccity codes regardless of whether such repairs exceed twenty-five percent (25%) of the assessed value of the building in any one (1) -year period; provided, that the total floor area in the building shall not be increased.

3. Accessory dwelling units (ADU) and junior accessory dwelling units (JADU) shall be allowed subject to the standards in Chapter 18.69 without further restriction by this section.

B. A conditional use permit is required for the following:

1. Ordinary maintenance and repairs to any nonconforming building which exceed twenty-five percent (25%) of the assessed value of the building in any one (1)- year period;

2. Any structural alterations and/or additions; provided, that the total floor area of the building shall not be increased by more than twenty percent (20%) or one hundred twenty (120) square feet, whichever is greater;
a. In no case shall an ADU or JADU be counted as a structural alteration or addition as part of the limited increase in floor area of a nonconforming building.

3. Exception is in the case of damaged buildings/structures due to fire, earthquake, or natural disasters, refer to subsection D of this section.

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(Supp. No. 15)

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C. As a condition to any conditional use permit granted pursuant to subsection B of this section, the portions altered or repaired shall be brought into conformity with applicable Ccity codes including the zoning code.

CD. Repair of Damaged or Partially Damaged Structures Due to Fire, Explosion, Earthquake, or Other Natural Disasters. Any nonconforming structure or conforming structure containing a nonconforming use which is damaged or destroyed by fire, explosion, act of God, collapse or any other casualty or calamity may be reconstructed to the condition in which it existed immediately prior to the occurrence of such damage or destruction; provided, that:

1. The total cost of the reconstruction of the structure shall not exceed seventy-five percent of the value of the structure prior to the damage or destruction. The value of the structure may be computed by any of the following methods:
a. The current assessed valuation of the structure as shown on the latest county of San Bernardino equalized assessment role;
b. An appraisal of the damage or destroyed structure made by a state of California licensed appraiser to determine predamage or destruction value of the structure; c. The value to construct the original structure as shown on the building department's official records, based upon the current building construction costs upon which building permit valuations are computed.

In determining the reconstruction cost of any nonconforming structure, there shall not be included therein the cost of the land or any factors other than those concerning the nonconforming structure itself. a. All such construction or repairs shall be started within one (1) year from the date of damage or destruction and shall be pursued diligently to completion within one (1) year of the start of construction. Otherwise, the right to rebuild pursuant to this section is terminated, which means within one more year. Each of these one (1) year periods may be extended in intervals of six (6) months upon demonstration of practical difficulty or hardship.
2b. In the case of the buildings/structures being reconstructed in a different condition than what originally existed prior to the damages (fire, earthquake or natural disaster), then the project shall be evaluated in accordance to site and architectural review criteria, Chapter 18.63. (Ord. 157 (part), 1995: Ord. 151 § 1(part), 1994: Ord. 126 § 2, Exh. A(part), 1990)

18.76.050 Buildings under construction.

Nothing contained in this Ttitle shall be deemed to require any change in plans, construction or designated use of any building for which a building permit has properly been issued, in accordance with the provisions of ordinances then effective and upon which actual construction has been started prior to the effective date of the ordinance codified in this Ttitle; provided, that in all such cases actual construction shall be diligently carried on until completion of the building.
(Ord. 151 § 1(part), 1994: Ord. 126 § 2, Exh. A(part), 1990)

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SECTION 5. Authority.

The City Zoning Map is hereby amended to apply the R3-40 High Density Multiple Family Residential District to the properties identified in Zone Change (ZC) 26-01, as shown in Exhibit A.

SECTION 6. Serverability.

The City Council enacts this Ordinance under the authority granted by Article XI, Section 7 of the California Constitution and Government Code Sections 65850 et seq.

SECTION 7. Effective Date.

This Ordinance shall take effect thirty (30) days after its adoption.

SECTION 8. Adoption.

This Ordinance was introduced at a regular meeting of the City Council held on the 12th day of May, 2026, and adopted at a regular meeting held on the ___ day of __________, 2026.

SECTION 9. Certification.

The Mayor shall sign, and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect thirty (30) days after its final passage.

Signatures on the following pages

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PASSED, APPROVED, AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the ___ day of ____ 2026.
_______________________
Bill Hussey
Mayor
ATTEST:
____________________________
Daysi Alcocer
City Clerk
APPROVED AS TO FORM:
____________________________
Adrian R. Guerra
City Attorney

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°
Proposed City of Grand Terrace Zoning Map
0 0.5 1
Miles
Legend
RH - Hillside Single Family
Residential
R1-20 - Very Low Density
Single Family Residential
District
R1-10 - Low Density Single
Family Residential District
R1-7.2 - Single Family
Residential District
R2-10 - Low Density Multiple
Family Residential District
R3-12 - Medium Density
Multiple Family Residential
District
R3-20 - Medium High
Density Multiple Family
Residential District
R3-40 - High Density
Multiple Family Residential
District
AP - Administrative
Professional Office District
C2 - General Business District
CM - Commercial
Manufacturing District
MR - Restricted
Manufacturing District
M2 - Industrial District
PUB - Public Facilities District
BMSP - Blue Mountain
Specific Plan
BMSVSP - Blue Mountain
Senior Villas Specific Plan
BRSP - Barton Road Specific
Plan
GBSP - Greenbriar Specific
Plan
GSP - Gateway at Grand
Terrace Specific Plan
AG: Agricultural Overlay
District
FP: Floodplain Overlay
District

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March 11, 2026
°
Proposed City of Grand Terrace Zoning Map
0 0.5 1
Miles
Legend
RH - Hillside Single Family
Residential
R1-20 - Very Low Density
Single Family Residential
District
R1-10 - Low Density Single
Family Residential District
R1-7.2 - Single Family
Residential District
R2-10 - Low Density Multiple
Family Residential District
R3-12 - Medium Density
Multiple Family Residential
District
R3-20 - Medium High
Density Multiple Family
Residential District
R3-40 - High Density
Multiple Family Residential
District
AP - Administrative
Professional Office District
C2 - General Business District
CM - Commercial
Manufacturing District
MR - Restricted
Manufacturing District
M2 - Industrial District
PUB - Public Facilities District
BMSP - Blue Mountain
Specific Plan
BMSVSP - Blue Mountain
Senior Villas Specific Plan
BRSP - Barton Road Specific
Plan
GBSP - Greenbriar Specific
Plan
GSP - Gateway at Grand
Terrace Specific Plan
AG: Agricultural Overlay
District
FP: Floodplain Overlay
District

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March 11, 2026

Statutory Exemptions. State code number:

_______________________________________________
Print Form
Notice of Exemption Appendix E
To: Office of Planning and Research From: (Public Agency): ____________________________ P.O. Box 3044, Room 113 _______________________________________________ Sacramento, CA 95812-3044 County Clerk
(Address)
___________________________
___________________________
County of: __________________
Project Title: ____________________________________________________________________________ Project Applicant: ________________________________________________________________________ Project Location - Specific:

Project Location - City: ______________________ Project Location - County:

Description of Nature, Purpose and Beneficiaries of Project:
_____________________
Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: (check one):

Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Reasons why project is exempt:

Lead Agency
Contact Person: ____________________________ Area Code/Telephone/Extension: _______________ If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project? Yes No Signature: ____________________________ Date:

Signed by Lead Agency Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR:

Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. _______________
Categorical Exemption. State type and section number: ____________________________________ ______________________________________________
______________ Title: _______________________
Revised 2011

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CITY OF GRAND TERRACE
City of Grand Terrace Multifamily Rezoning to Implement the 2021-2029 Housing Element Project
SB 131
Statutory Exemption Report
Lead Agency:

City of Grand Terrace
22795 Barton Road
Grand Terrace, CA 92313
Contact: Scott Hutter
Phone: (909) 954-5176
Prepared by:

Michael Baker International
40810 County Center Dr #200
Temecula, CA 92591
Contact: Alicia Gonzalez
[email protected]
Phone: (909) 974-4933
March 2026

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City of Grand Terrace
Multifamily Rezoning to Implement the 2021-2029 Housing Element Project SB 131 Exemption Report
Final | March 2026 ii City of Grand Terrace

TABLE OF CONTENTS
I. Introduction ...................................................................................................................1 II. Project Location and Setting .........................................................................................5 III. Project Description ......................................................................................................10 IV. Construction of Oil and Gas Infrastructure or a Distribution Center Analysis ..........15 V. Natural and Protected Lands Analysis ........................................................................17 Criterion (a).........................................................................................................................................17 Criterion (b).........................................................................................................................................17 Criterion (c).........................................................................................................................................17 Criterion (d).........................................................................................................................................17 Criterion (e).........................................................................................................................................17 Criterion (f) .........................................................................................................................................18 Criterion (g).........................................................................................................................................18 Criterion (h).........................................................................................................................................18 Criterion (i)..........................................................................................................................................18 Criterion (j)..........................................................................................................................................19 Criterion (k).........................................................................................................................................22 Criterion (l)..........................................................................................................................................22 Criterion (m) .......................................................................................................................................26 Criterion (n).........................................................................................................................................26 Criterion (o).........................................................................................................................................26 Criterion (p).........................................................................................................................................30 V. Conclusion ................................................................................................................... 33 VI. References .................................................................................................................... 35

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City of Grand Terrace
Multifamily Rezoning to Implement the 2021-2029 Housing Element Project SB 131 Exemption Report
Final | March 2026 iii City of Grand Terrace
List of Exhibits
Exhibit 1: Regional Vicinity..............................................................................................................................6 Exhibit 2: Local Vicinity ...................................................................................................................................8 Exhibit 3: Existing Zoning .............................................................................................................................11 Exhibit 4: Proposed Zoning...........................................................................................................................13 Exhibit 5: Grand Terrace Special Flood Hazard Area ...............................................................................20 Exhibit 6: USFWS National Wetlands Inventory Map ..............................................................................23 Exhibit 7: Fire Hazard Severity Zones .........................................................................................................27 Exhibit 8: Grand Terrace Important Farmland Map .................................................................................30 List of Attachments
Attachment A Grand Terrace Rezone Sites
Attachment B NRCS Soils Data

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City of Grand Terrace
Multifamily Rezoning to Implement the 2021-2029 Housing Element Project SB 131 Exemption Report
Final | March 2026 1 City of Grand Terrace
SB 131 STATUTORY EXEMPTION REPORT
This report serves as the environmental determination for the proposed Multifamily Rezoning to Implement the 2021-2029 Housing Element Project (project) for the City of Grand Terrace. The intent of the analysis is to document the project’s eligibility as statutorily exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Senate Bill (SB) 131. The report includes an introduction, project description, and evaluation of the project’s consistency with the requirements to qualify for the SB 131 statutory exemption.

I. INTRODUCTION
SB 131 was signed into law on June 30, 2025, and adds new Section 21080.085 to the Public Resources Code to exempt rezoning actions that implement the schedule of actions contained in an approved housing element pursuant to subdivision (c) of Section 65583 of the Government Code. The exemption does not apply to:
• Rezoning actions allowing the construction of oil and gas infrastructure or a distribution center, as defined by Public Resources Code Sections 21064.8 and 21060.4, respectively. • Rezoning actions allowing construction within any natural and protected lands, as defined by Public Resources Code Section 21067.5.

Public Resources Code Section 21064.8 defines “oil and gas infrastructure” as a facility used for the production, processing, transmission, storage, or distribution of petroleum or natural gas. Public Resources Code Section 21060.4 defines “distribution center” as a warehouse distribution center, as defined in Section 2100 of the Labor Code, that is 50,000 square feet or larger. Section IV of this report evaluates the project against the Public Resources Code Sections 21064.8 and 21060.4 definitions of oil and gas infrastructure and distribution center.

Public Resources Code Section 21067.5 defines “natural and protected lands” as follows:
(a) The state park system, as described in Article 1 (commencing with Section 5001) of Chapter 1 of Division 5. (b) A wilderness area, as defined in Section 5093.32.
(c) A marine protected area, as defined in Section 2852 of the Fish and Game Code. (d) The national park system, as defined in Section 100102 of Title 54 of the United States Code. (e) A national recreation area.
(f) A national monument.
(g) The national wild and scenic rivers system, as defined in Section 1273 of Title 16 of the United States Code. (h) Any ecological reserve or wildlife management area acquired and managed by the Department of Fish and Wildlife pursuant to Article 2 (commencing with Section 1525) or Article 4 (commencing with Section 1580) of Chapter 5 of Division 2 of the Fish and Game Code.

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Grand Terrace City CouncilMay 12, 2026

Grand Terrace City Council
May 12, 2026