Grand Terrace City Council
May 12, 2026

Tuesday, May 12, 2026 1

CITY OF GRAND TERRACE
City Council
AGENDA ● May 12, 2026
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road

COMMENTS FROM THE PUBLIC
The public is encouraged to address the City Council on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council, please complete a Request to Speak card located at the front entrance and provide it to the City Clerk. Speakers will be called upon by the Mayor at the appropriate time and each person is allowed three (3) minutes speaking time.

Members of the public who wish to participate in the meeting and speak on an agenda item may do so via Zoom or by telephone. Access the meeting using the Zoom link or dial the telephone number listed below. Participants will be placed in a virtual waiting room and remain muted until it is their turn to speak.

Meeting ID: 882 7448 2875
Passcode: 979689
+16699009128
Council Member Jeff Allen will be participating remotely from:

The Citizen Hotel Autograph Collection 926 J St, Sacramento, CA 95814 Public Lounge Area on Second Floor Above Lobby Area
The City wants you to know that you can also submit your comments by email to [email protected]. To give the City Clerk adequate time to print out your comments for consideration at the meeting, please submit your written comments prior to 5:00 p.m.; or if you are unable to email, please call the City Clerk’s Office at (909) 954-5207 by 5:00 p.m.

If you wish to have your comments read to the City Council during the appropriate Public Comment period, please indicate in the Subject Line “FOR PUBLIC COMMENT” and list the item number you wish to comment on. Comments that you want read to the City Council will be subject to the three (3) minute time limitation (approximately 350 words). Written public comments are available at the City Clerk's office.

Pursuant to the provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future City Council meeting.

PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 1st Floor Lobby Area and 2nd Floor Reception Area during regular business hours and on the City’s website www.grandterraceca.gov. For further information regarding agenda items, please contact the office of the City Clerk at (909) 954-5207, or via e-mail at [email protected].

Tuesday, May 12, 2026 2
Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall located at 22795 Barton Road during normal business hours. In addition, such documents will be posted on the City’s website at www.grandterrace-ca.gov.

AMERICANS WITH DISABILITIES ACT
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office, (909) 954-5207 at least 48 hours prior to the advertised starting time of the meeting. This will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Later requests will be accommodated to the extent feasible [28 CFR 34.102.104 ADA Title II].

CALL TO ORDER

INVOCATION

PLEDGE OF ALLEGIANCE
AB 2449 DISCLOSURES
Remote participation by a member of the legislative body for just cause or emergency circumstances.

ROLL CALL
A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA B. PUBLIC COMMENT
This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda, but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting.

C. SPECIAL PRESENTATIONS
Certificate of Recognition - Elysia Fernandez
Housing & Community Development Presentation — Jose Armando Jauregui, Section Chief for the Planning Grants and Incentives
D. CLOSED SESSION

1. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant Exposure to Litigation
[Pursuant to Government Code sections 54954.5(c), 54956.9 (d)(3), (e)(1)] Based on existing facts and circumstances, this closed session is only to decide whether a closed session is authorized pursuant to Government Code section 54956.9(d)(2), which provides: “A point has been reached where, in the opinion of the legislative body of the local

Tuesday, May 12, 2026 3
agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency.” Reference No. 2026-003.

Number of cases: 1
E. CONSENT CALENDAR
The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion.
1) Waive Full Reading of, and Direct the City Attorney to Read by Title only for, Ordinances on the Agenda
2) Approval of Minutes - Regular Meeting - March 24, 2026 Approval of Minutes - Special Meeting Joint Workshop - March 26, 2026 Approval of Minutes - Regular Meeting - April 14, 2026
Approval of Minutes - Special Meeting - April 14, 2026
DEPARTMENT: City Clerk
3) Renewal of Memorandum of Understanding with Institute for Public Strategies and California Health Collaborative
RECOMMENDATION: THAT THE CITY COUNCIL APPROVE THE RENEWAL OF THE

MEMORANDUM OF UNDERSTANDING (MOU) AMONG THE INSTITUTE FOR PUBLIC

STRATEGIES (IPS), THE CALIFORNIA HEALTH COLLABORATIVE (CHC), AND THE

CITY OF GRAND TERRACE TO CONTINUE PROVIDING SUBSTANCE USE

PREVENTION EDUCATION, OUTREACH, AND TECHNICAL ASSISTANCE TO THE GRAND TERRACE COMMUNITY; AND AUTHORIZE THE CITY MANAGER TO

EXECUTE THE RENEWED MOU AND TAKE ALL ACTIONS NECESSARY TO

IMPLEMENT THE PARTNERSHIP
DEPARTMENT: City Manager
4) Approve Additional Appropriations for Legal Services with Fennemore LLP in Connection with The Anthony Petta and Angeline Petta Family Trust Litigation RECOMMENDATION: APPROVE ADDITIONAL APPROPRIATIONS OF $25,000.00

FOR LEGAL SERVICES WITH FENNEMORE LLP IN CONNECTION WITH THE ANTHONY PETTA AND ANGELINE PETTA FAMILY TRUST LITIGATION.

DEPARTMENT: Finance
5) Amendment No. 1 to the Regional Partnership Agreement for Animal Shelter Services with the City of San Bernardino
RECOMMENDATION: THAT THE CITY COUNCIL ADOPT A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE REGIONAL PARTNERSHIP AGREEMENT

FOR ANIMAL SHELTER SERVICES WITH THE CITY OF SAN BERNARDINO,

AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDED AGREEMENT,

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WHICH UPDATES THE COST OF SERVICE ALLOCATION
DEPARTMENT: City Manager
6) 2025 Annual Progress Report for the City’s 2021–2029 Housing Element RECOMMENDATION: RECEIVE AND FILE THE CITY OF GRAND TERRACE 2025 ANNUAL PROGRESS REPORT FOR THE 2021–2029 HOUSING ELEMENT; AND

AUTHORIZE STAFF TO SUBMIT THE ANNUAL PROGRESS REPORT TO THE

CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) AND THE GOVERNOR’S OFFICE OF LAND USE AND CLIMATE INNOVATION DEPARTMENT: Planning & Development Services
7) Approval of Amendment No. 2 to the Agreement for Contract Services with Revenue & Cost Specialists for Development Impact Fee Implementation Services, Including a Storm Drainage Fee Nexus Study, Fee Program Revisions, and Staff Training RECOMMENDATION: APPROVE AMENDMENT NO. 2 TO THE AGREEMENT FOR

CONTRACT SERVICES WITH REVENUE & COST SPECIALISTS TO EXTEND THE AGREEMENT TERM THROUGH AUGUST 31, 2026, EXPAND THE SCOPE OF

SERVICES TO INCLUDE A STORM DRAINAGE FEE NEXUS STUDY, DEVELOPMENT

IMPACT FEE PROGRAM REVISIONS, AND A DEVELOPMENT IMPACT FEE

ADMINISTRATION WORKSHOP, AND INCREASE THE CONTRACT AMOUNT BY $8,000, FOR A REVISED NOT-TO-EXCEED TOTAL OF $50,600; AND AUTHORIZE THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2, SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM; AND
APPROVE AN APPROPRIATION IN THE AMOUNT OF $8,000 TO FUND THE ADDITIONAL CONSULTANT SERVICES; AND

DETERMINE THAT THE PROPOSED ACTION IS EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15306 – INFORMATION COLLECTION (CLASS 6 CATEGORICAL EXEMPTION).

DEPARTMENT: Planning & Development Services
8) 2026-27 Landscape & Lighting Assessment District 89-1 Public Hearing Intent RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GRAND TERRACE, CALIFORNIA, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, INITIATING PROCEEDINGS TO LEVY ANNUAL ASSESSMENTS FOR THE 2026-27 FISCAL YEAR FOR THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1 AND

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

Tuesday, May 12, 2026 5

ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

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

AND THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2026-27; AND

ADOPT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GRAND TERRACE, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JUNE 19, 2026, ON LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR 2026-27
DEPARTMENT: Public Works
9) Award LED Sports Field Lighting Retrofit to F.E.C. Electric Inc. for $202,106 RECOMMENDATION: APPROVE A CONTRACT WITH F.E.C. ELECTRIC INC. IN THE AMOUNT OF $183,733 FOR THE BALLFIELD LIGHTING RETROFIT PROJECT AND APPROVE A 10% CONTINGENCY OF $18,373 FOR UNFORESEEN COSTS, FOR A TOTAL PROJECT AMOUNT OF $202,106; AND

AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT SUBJECT TO

CITY ATTORNEY APPROVAL AS TO FORM
DEPARTMENT: Public Works
10) Amendment No. 3 to Willdan Group Agreement for On-Call Engineering and Building & Safety Plan Check Services
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 NOTTO-EXCEED AMOUNT TO $340,000 DEPARTMENT: Public Works
11) Award of Agreement for St. Francis Electric for Traffic Signal Maintenance and On-Call Emergency Services
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
DEPARTMENT: Public Works

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F. PUBLIC HEARINGS
12) 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 RECOMMENDATION: FIRST READING AND INTRODUCTION OF AN ORDINANCE APPROVING ZONING CODE AMENDMENT (ZCA) 26-02, ZONE CHANGE (ZC) 26-01, AND ENVIRONMENTAL REVIEW (E) 26-03, ADOPT A 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
DEPARTMENT: Planning & Development Services
13) First Reading & Introduction of an Ordinance – Zoning Code Amendment (ZCA) 26-01 – Agricultural Employee Housing (Housing Element Program 12) RECOMMENDATION: FIRST READING & INTRODUCTION OF AN ORDINANCE APPROVING ZONING CODE AMENDMENT (ZCA) 26-01 AND ENVIRONMENTAL REVIEW (E) 26-05;

AND DIRECT STAFF TO RETURN WITH THE ORDINANCE FOR SECOND READING AND ADOPTION; THEREBY AMENDING TITLE 18 (ZONING) OF THE GRAND TERRACE MUNICIPAL CODE, INCLUDING CHAPTERS 18.53 (AG-1 AGRICULTURAL OVERLAY DISTRICT), 18.56 (AG-2 AGRICULTURAL OVERLAY DISTRICT); AND ADDING CHAPTER 18.58 (AGRICULTURAL EMPLOYEE HOUSING), TO IMPLEMENT PROGRAM 12 (EMPLOYEE HOUSING) OF THE CITY’S 2021–2029

HOUSING ELEMENT AND ENSURE CONSISTENCY WITH THE CALIFORNIA EMPLOYEE HOUSING ACT (HEALTH AND SAFETY CODE SECTIONS 17021.5 AND 17021.6)
DEPARTMENT: Planning & Development Services
G. UNFINISHED BUSINESS - NONE

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H. NEW BUSINESS
14) Informational Report on the J.C. Wallace Residential Care Facility RECOMMENDATION: THAT THE CITY COUNCIL RECEIVE AND FILE THIS REPORT

FOR INFORMATIONAL PURPOSES ONLY
DEPARTMENT: City Manager
15) Selection of a Site for New Pickleball Courts
RECOMMENDATION: THAT THE CITY COUNCIL SELECT A LOCATION FOR NEW

PICKLEBALL COURTS AND PROVIDE DIRECTION TO STAFF TO PROCEED WITH DESIGN AND IMPLEMENTATION.

DEPARTMENT: Public Works
16) First Reading and Introduction of an Ordinance Formalizing Public Works Standard Plans and Streetlight Design Standards
RECOMMENDATION: FIRST READING AND INTRODUCTION OF AN ORDINANCE OF

THE CITY OF GRAND TERRACE ADOPTING PUBLIC WORKS STANDARD PLANS

AND SPECIFICATIONS AND STREETLIGHT DESIGN STANDARDS
DEPARTMENT: Public Works
17) Community Benefit Fund Grant Award to the Grand Terrace High School Titan Wrestling Booster Club
RECOMMENDATION: APPROVE THE COMMUNITY BENEFIT FUND GRANT

APPLICATION FROM THE GRAND TERRACE HIGH SCHOOL TITAN WRESTLING BOOSTER CLUB IN THE AMOUNT OF $2,000.00 AND TRANSFER OF FUNDS FROM ACCOUNT 61-461-200-000-000 TO 61-461-100-000-000
DEPARTMENT: Finance
18) Policy Governing Remote Participation and Enhancement of Public Participation in City Council and Commission Meetings to implement Senate Bill No. 707 RECOMMENDATION: ADOPT THE ATTACHED RESOLUTION TO ADOPT A POLICY ENTITLED “POLICY GOVERNING REMOTE PARTICIPATION AND ENHANCEMENT OF PUBLIC PARTICIPATION IN CITY COUNCIL AND COMMISSION MEETINGS” TO IMPLEMENT SENATE BILL NO. 707
DEPARTMENT: City Attorney
I. FUTURE AGENDA ITEMS
At this time, the City Council may propose items for discussion and/or action at a future duly agendized City Council meeting. A consensus of a majority of the quorum is required to place an item on a future agenda.

Tuesday, May 12, 2026 8
J. CITY COUNCIL COMMUNICATIONS
Council Member Matt Brown
Council Member Jeff Allen
Council Member Doug Wilson
Mayor Pro Tem Michelle Sabino
Mayor Bill Hussey
K. COMMUNICATIONS FROM THE CITY MANAGER, SHERIFFS' DEPARTMENT, AND FIRE

DEPARTMENT
City Manager Konrad Bolowich
Lieutenant Kevin Fries
Assistant Fire Chief Gary Jager
L. ADJOURN
The next Regular City Council Meeting will be held on May 26, 2026, at 6:00 PM. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office.

CITY OF GRAND TERRACE
City Council
MINUTES ● March 24, 2026
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road

CALL TO ORDER
Mayor Bill Hussey convened the Regular Meeting of the City Council on Tuesday, March 24, 2026, at 6:00 PM.

INVOCATION
The Invocation was given by Pastor Esequiel Gallegos III from Living Word Inland Empire Church.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Jeff Allen.

AB 2449 DISCLOSURES
None.

ROLL CALL

Present: Mayor Bill Hussey
Mayor Pro Tem Michelle Sabino
Council Member Doug Wilson
Council Member Jeff Allen
Council Member Matt Brown

Absent:

A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA
Konrad Bolowich, City Manager, removed Items No. 6 and 7 from the Consent Calendar, to be brought back at a future meeting.

B. PUBLIC COMMENT
Daysi Alcocer, City Clerk read out an email public comment submitted by resident Jeremy Briggs.

Johan Gallo, resident, addressed the sales tax discussion from the March 10, 2026, City Council meeting and concerns related to criminal activity in the city.

Jason Greeley, resident & Vice-Chair of the Historical & Cultural Activities Committee, announced the upcoming 42nd Annual Art Show that will be taking place from May 2– 3.

Toni Rosales, Representative from the Office of Assemblywoman Leticia Castillo, shared that Elysia Fernandez, Grand Terrace Chamber of Commerce President & Resident, was selected for her service to a nonprofit organization. Ms. Rosales also provided a legislative update, noting that Assembly Bill 1382 and Assembly Bill 1597, both authored by Assemblywoman Castillo, have passed the Assembly and are currently proceeding through the Senate committee process.

Finally, Ms. Rosales advised that the Assemblywoman’s office will be on spring recess from March 27 through April 5. She encouraged residents to direct any questions or concerns regarding state agency matters to the Assemblywoman’s office during that time.

C. SPECIAL PRESENTATIONS - NONE
D. CONSENT CALENDAR
Mayor Hussey inadvertently proceeded to the Consent Calendar prior to Public Comment. After the Consent Calendar was discussed and voted on, the Council returned to Public Comment.

Following Public Comment, Mayor Hussey verbally disclosed a conflict of interest and recused himself from Consent Calendar Item No. 5.

NO PUBLIC COMMENT
Council Member Allen motioned to approve Consent Items No. 1–5 & 8, followed by a second by Council Member Brown.

Prior to the vote, Adrian Guerra, City Attorney, read the title of the ordinance into the record.

RESULT: APPROVED - UNANIMOUS
MOVER: Council Member Allen
SECONDER: Council Member Brown
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
1) Waive Full Reading of, and Direct the City Attorney to Read by Title only for, Ordinances on the Agenda
2) Approval of Minutes - Regular Meeting - March 10, 2026 3) Second Reading & Adoption of an Ordinance adding Chapter 9.37 (Aggressive Solicitation)

4) Approval of the February-2026 Check Register in the Amount of $929,384.93 5) Approve Check #83329 to Mayor Hussey in the amount of $419.20 from February 2026 Check Register
6) AB 1600 Annual Report for Fiscal Year 2023–24 and Five-Year Findings for FY 2019–20 through FY 2023–24
E. PUBLIC HEARINGS
7) Adoption of the 2026–27 Development Impact Fee Nexus Study, Updated Development Impact Fees, and Introduction of an Ordinance Amending Section 4.80.010 of the Grand Terrace Municipal Code
Greg Brown, Vice President with Revenue & Cost Specialists, provided the PowerPoint presentation on this item.

Mayor Hussey opened the public hearing at 6:27pm.

NO PUBLIC COMMENT
Mayor Hussey closed the public hearing at 6:27pm.

Council Member Brown motioned to approve the staff recommendation adopting the Nexus fees at the maximum level, followed by a second from Council Member Allen.

Upon clarification from Adrian Guerra, City Attorney stated for the record that the motion shall include adoption of the resolution along with the initial first reading of the ordinance as presented in the Staff Report, along with the revised EXHIBIT A for the development Impact Fees Schedule as presented on the dais and displayed during the meeting.

Prior to the vote, Adrian Guerra, City Attorney, read the title of the ordinance into the record.

RESULT: APPROVED - UNANIMOUS
MOVER: Council Member Brown
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
F. UNFINISHED BUSINESS - NONE

G. NEW BUSINESS
8) Purchase of Additional Video Surveillance Cameras in the Public Right-OfWay Christine Clayton presented the PowerPoint presentation for this item.

PUBLIC COMMENT
Johan Gallo, Resident, commented on this item.

RESULT: APPROVED - UNANIMOUS
MOVER: Mayor Pro Tem Sabino
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
9) Mayor to Appoint a Council Member to Attend the 2026 Annual Meeting of Shareholders of Riverside Highland Water Company
Konrad Bolowich, City Manager, provided the Staff Report for this item.

NO PUBLIC COMMENT
Mayor Pro Tem Sabino motioned to appoint Council Member Wilson to attend the 2026 Annual Meeting of Shareholders of Riverside Highland Water Company, seconded by Mayor Hussey.

RESULT: APPROVED - UNANIMOUS
MOVER: Mayor Pro Tem Sabino
SECONDER: Mayor Hussey
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None

H. FUTURE AGENDA ITEMS
Council Member Allen requested consideration of a future City Council discussion regarding a Vacancy Tax for commercial properties; the request was seconded by Mayor Hussey.

Mayor Hussey requested consideration of a future City Council discussion regarding a Special Tax for law enforcement; the request was seconded by Council Member Allen.

RESULT: APPROVED 4 TO 0
MOVER: Council Member Allen
SECONDER: Mayor Hussey
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen
ABSTAIN: Council Member Matt Brown
NAYS: None
RESULT: APPROVED 3 TO 2
MOVER: Mayor Hussey
SECONDER: Council Member Allen
AYES: Mayor Hussey, Council Member Wilson, Council Member Allen ABSTAIN: None
NAYS: Mayor Pro Tem Sabino, Council Member Brown
I. CITY COUNCIL COMMUNICATIONS
Council Member Matt Brown reported on the following:
• Attended the Grand Terrace Chamber of Commerce Meeting on March 11, 2026 & announced that the Grand Terrace Toastmasters Club meet every Friday at 7 am in the Cottage Room at Azure Hills Church
• Attended the Cars & Coffee monthly meeting on March 21, 2026 • Announced on the record a clarification of a statement made at a previous City Council meeting regarding a survey from the San Bernardino Community College District, not the Colton Joint Unified School District, and its relation to a potential future bond measure that could affect local property owners Council Member Jeff Allen reported on the following:
• Attended the Grand Terrace Chamber of Commerce Meeting on March 11, 2026 • Attended the 2026 Civic Well Policymakers Conference in Yosemite on March 12–15, 2026

• Attended the League of California Cities Regional Division meeting on March 19, 2026, in Yucaipa
• Attended the San Bernardino County Veterans Advisory Committee Meeting on March 23, 2026
• Communicated with Senator Ochoa Bogh and Senator Reyes on advancing a firearms training bill with the addition of other safety trainings that would be beneficial to the public
Council Member Doug Wilson reported on the following:
• Attended the League of California Cities Regional Division meeting on March 19, 2026, in Yucaipa
• Attended the Annual Expanded Learning & STEAM Symposium at Grand Terrace High School on March 20, 2026
Mayor Pro Tem Michelle Sabino reported on the following:
• Community engagement efforts in collaboration with San Bernardino County Sheriff Lieutenant Fries and City Staff to address residents' concerns Mayor Bill Hussey reported on the following:
• Will be attending the Annual Easter Eggstravaganza at Cal State San Bernardino on March 28, 2026, from 11am to 2pm hosted by the Heart Matters Foster Family Agency
• Attended the DonkeyLand Town Hall meeting at Sandals Church Hunter Park in Riverside on March 23, 2026
J. CITY MANAGER COMMUNICATIONS
Konrad Bolowich, City Manager, announced the following:
• National Orange Show Event for Beyond Wonderland on March 27–28 from 3pm-2am. The city will be posting the noise complaint phone number on the City Website.

SHERIFF DEPARTMENT COMMUNICATIONS
Lieutenant Fries reported on the following:
• Addressed Mayor Hussey & Council Member Allen's questions regarding flock cameras

FIRE DEPARTMENT COMMUNICATIONS
None.

K. CLOSED SESSION - NONE
L. ADJOURN
Mayor Hussey adjourned the Regular Meeting of the City Council at 7:06 p.m. The next Regular City Council Meeting will be held on Tuesday, April 14, 2026, at 6:00 p.m. _______________________________ _______________________________ Bill Hussey, Mayor Daysi Alcocer, City Clerk

CITY OF GRAND TERRACE
City Council/Planning Commission
Special Meeting Workshop
MINUTES ● March 26, 2026
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road

CALL TO ORDER
Mayor Bill Hussey convened the Special Meeting Workshop of the City Council & Planning Commission Site & Architectural Review Board for Thursday, March 26, 2026, at 6:00 PM.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Mayor Hussey.

ROLL CALL

Present: Mayor Bill Hussey
Mayor Pro Tem Michelle Sabino
Council Member Doug Wilson
Council Member Jeff Allen
Council Member Matt Brown
Chair Edward Giroux (Joined via Zoom at 6:53pm)
Vice-Chair Tara Ceseña
Commissioner David Alaniz
Commissioner Aron Burian
Commissioner Scot Mathis

Absent:

A. PUBLIC COMMENT

NO PUBLIC COMMENT
B. NEW BUSINESS
1) Joint City Council & Planning Commission/Site & Architectural Review Board Workshop for Objective Design Standards
Gabriel Arguelles, Assistant Planner, provided a brief description of the item to be presented by Michael Baker International consultants.

Hanna Kreitman, Housing Element Rezoning Project Manager & Cameron, Project Manager with Michael Baker International provided the PowerPoint presentation on this item.

Chair Giroux joined the Special Workshop via Zoom at 6:53pm. Adrian Guerra, City Attorney, stated for the record that while the Chair can attend the meeting, the Chair

cannot participate in any discussion due to him being out of the country on vacation, which does not qualify as an AB 2449 just cause.

NO PUBLIC COMMENT

NO ACTION REQUIRED AT THIS TIME
C. ADJOURN
Mayor Hussey adjourned the Special Meeting Workshop of the City Council & Planning Commission Site & Architectural Review Board at 7:26 p.m. The next Regular City Council Meeting will be held on Tuesday, April 14, 2026, at 6:00 p.m. _______________________________ _______________________________ Bill Hussey, Mayor Daysi Alcocer, City Clerk

CITY OF GRAND TERRACE
City Council
MINUTES ● April 14, 2026
Council Chambers Regular Meeting 6:00 PM
Grand Terrace Civic Center ● 22795 Barton Road

CALL TO ORDER
Mayor Bill Hussey convened the Regular Meeting of the City Council for Tuesday, April 14, 2026 at 6:00 PM.

INVOCATION
The Invocation was given by Mayor Hussey.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Boy Scouts of America Troop 40.

AB 2449 DISCLOSURES
None.

ROLL CALL

Present: Mayor Bill Hussey
Mayor Pro Tem Michelle Sabino
Council Member Doug Wilson
Council Member Jeff Allen
Council Member Matt Brown

Absent:

A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA
Konrad Bolowich, City Manager, pulled Consent Item No. 9 for discussion and removed Item No. 14 from the agenda and requested to have this come back at a future meeting.

Council Member Allen noted a discrepancy in his copy of the agenda, Council Member Allen and the Council agreed to proceed with the items listed on the agenda that was properly noticed and posted on the City website.

B. PUBLIC COMMENT
Daysi Alcocer, City Clerk, read out an email comment submitted by resident Bobbie Forbes to the Clerk’s Office.

Daysi Alcocer, City Clerk, read out an email comment submitted by resident Juanita Odenbaugh to the Clerk’s Office.

Johan Gallo, Resident, provided his comments regarding development projects and school traffic within the City.

George Candray, Resident, provided comments regarding paving near his home and requested paving on a small portion of Mt Vernon street.

C. SPECIAL PRESENTATIONS
Proclamation — Child Abuse Prevention Month
Hillary Steenson-Ray, Associate Network Officer with Children's Network was to be presented with a Child Abuse Prevention Month Proclamation but could not attend the meeting.

Mayor Hussey read out the Proclamation for the record and directed staff to provide the proclamation to their organization at a later time.

D. CONSENT CALENDAR

NO PUBLIC COMMENT
Mayor Hussey recused himself from Consent Calendar Item No. 5.

Council Member Brown provided comments on Consent Calendar Items No. 2 and 3.

Council Member Brown motioned to approve Calendar Consent Items No. 1-8, 10 and 11 followed by a second from Council Member Wilson.

Prior to the vote, Adrian Guerra, City Attorney, read the title of the ordinance associated with Consent Calendar Item No. 11 into the record for adoption.

RESULT: APPROVED - UNANIMOUS
MOVER: Council Member Brown
SECONDER: Council Member Wilson
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
1) Waive Full Reading of, and Direct the City Attorney to Read by Title only for, Ordinances on the Agenda
2) Treasurer's Report as of September 30, 2025
3) Treasurer's Report as of December 31, 2025
4) Approval of the March-2026 Check Register in the Amount of $571,008.15.

5) Approve Check #83461 to Mayor Hussey in the amount of $419.20 from the March 2026 Check Register
6) Authorization to Advertise the Planning Commission Member Term Expirations
7) Authorization to Advertise the Historical & Cultural Activities Committee Member Term Expirations
8) Approval of an Annual Subscription Agreement with Gladwell Governmental Services, Inc. for Records Retention Schedule Maintenance and Updates 9) Award Concrete Rehabilitation at Various Locations (2) to Carter Enterprises Group, Inc.

Konrad Bolowich provided a brief overview of the Pavement Rehabilitation Program related to Consent Calendar Item No. 9.

It was noted that Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, and Council Member Brown each have a real property conflict of interest due to the proximity of properties they own being within 500 to 1,000 feet of the proposed pavement projects throughout the City.

Adrian Guerra, City Attorney, recommended that the identified Council Members recuse themselves from the discussion due to conflicts of interest. The City Attorney further advised that, in order for the Council to take action on the item, straws be drawn to determine which of the four affected members could remain for discussion and voting. It was determined that two of the four Council Members would be permitted to participate.

Daysi Alcocer, City Clerk, provided straws for the drawing. Council Members who selected straws with black-colored tips were permitted to remain for discussion and voting, while those who selected white straws were required to recuse themselves. As a result, Mayor Hussey and Mayor Pro Tem Sabino recused themselves from the discussion, and Council Member Wilson and Council Member Brown remained.

Konrad Bolowich, City Manager, then presented the staff report for Consent Calendar Item No. 9.

Adrian Guerra, City Attorney, noted for the record that Mayor Hussey and Mayor Pro Tem Sabino had recused themselves and stepped down from the dais.

Council Member Allen moved to approve Consent Calendar Item No. 9, with a second by Council Member Brown.

NO PUBLIC COMMENT

RESULT: APPROVED 3 TO 0
MOVER: Council Member Allen
SECONDER: Council Member Brown
AYES: Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None
10) Additional Appropriations for Diesel Generator using Equipment Replacement Fund
11) Second Reading and Adoption of an Ordinance Amending Section 4.80.010 of the Grand Terrace Municipal Code to update the City’s development impact fee program, remove obsolete fee amounts, and provide that development impact fees shall be established by City Council resolution consistent with the Mitigation Fee Act and Assembly Bill 602 (AB-602)
E. PUBLIC HEARINGS - NONE
F. UNFINISHED BUSINESS - NONE
G. NEW BUSINESS
12) Event Location Approval for Trunk or Treat 2026
Judith Garcia, Management Analyst, provided the staff report and PowerPoint Presentation for this item.

PUBLIC COMMENT
Shad Boal, Resident, provided a comment in support of this item.

Mayor Hussey moved to relocate the Trunk or Treat event to Richard Rollins Park, with a second by Council Member Allen. Council Member Brown recommended that the event hours be changed from 3:00 p.m.–6:00 p.m. to 5:00 p.m.–8:00 p.m.

Mayor Hussey amended his motion to include Council Member Brown’s recommendation, and Council Member Allen agreed and seconded the amended motion.

RESULT: APPROVED - UNANIMOUS
MOVER: Mayor Hussey
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None

13) First Reading and Introduction of an Ordinance Formalizing Public Works Standard Plans and Streetlight Design Standards
14) Community Benefit Fund Grant Award to the Grand Terrace High School Titan Wrestling Booster Club
H. FUTURE AGENDA ITEMS
Council Member Brown requested consideration of a future City Council discussion regarding operations at JC Wallace and directed the City Attorney to provide a report responsive to the initial agenda item request formally submitted at the February 10, 2026, City Council meeting; the request was seconded by Mayor Hussey.

Council Member Brown requested consideration of a future City Council discussion regarding the potential conversion of the existing tennis court at Grand Terrace Fitness Park into four Pickleball Courts; the request was seconded by Mayor Hussey.

RESULT: APPROVED - UNANIMOUS
MOVER: Council Member Brown
SECONDER: Mayor Hussey
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
RESULT: APPROVED 4 TO 1
MOVER: Council Member Brown
SECONDER: Mayor Hussey
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Brown
ABSTAIN: None
NAYS: Council Member Allen

Council Member Wilson requested consideration of a future City Council discussion regarding billboard businesses with no credible operations within the City; the request was seconded by Council Member Allen.

RESULT: APPROVED - UNANIMOUS
MOVER: Council Member Wilson
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: None
I. CITY COUNCIL COMMUNICATIONS
Council Member Matt Brown reported on the following:
• Attended the Grand Terrace Chamber of Commerce Meeting on April 8, 2026 • Attended the City Staff Easter Potluck on April 2, 2026 • Attended Feeding America Riverside — San Bernardino County on April 9, 2026 • Attended the State of the Fire District with Assistant Fire Chief Jager on April 9, 2026
Council Member Jeff Allen reported on the following:
• Attended the Annual Shareholder meeting for the Riverside Highland Water Company on March 26, 2026
• Attended the Relay for Life Kick-off meeting on March 28, 2026 • the Grand Terrace Chamber of Commerce Meeting on April 8, 2026 • Attended the Prop 4 Climate Bond Workshop hosted by Senator Eloise Reyes' office on April 8, 2026
• Attended the Loma Linda Chamber of Commerce meeting
• Attended the San Bernardino County Homeless Partnership Central Region Committee on April 8, 2026
• Attended the State of the Fire District with Assistant Fire Chief Jager on April 9, 2026
Council Member Doug Wilson reported on the following:
• Advised residents who have noticed an increased volume of flights going over their homes or disturbances related to aircraft noise, to direct their concerns to the San Bernardino County Airport Authority website

Mayor Pro Tem Michelle Sabino reported on the following:
• Addressed resident concerns that were raised on social media regarding the condition of city streets and public safety issues within the community by coordinating with Lieutenant Fries to hold a business safety meeting during a Grand Terrace Chamber of Commerce Meeting held on April 8, 2026. The San Bernardino County Sheriff Non-Emergency Number was provided as well: 909- 387-8313
Mayor Bill Hussey reported on the following:
• Advised residents to report noise complaints to the San Bernardino County Airport Authority website
• Attended the Southern California Association of Governments Joint Policy Committee meeting on April 9, 2026
• Attended the Omnitrans 50-Year Anniversary Celebration on April 1, 2026 J. CITY MANAGER COMMUNICATIONS
Konrad Bolowich, City Manager, announced the following:
• Confirmed that Family Services Agency will continue to provide senior lunch services for the upcoming Fiscal Year 2026-27
• Requested that the public respect landscaping and amenities within city parks, noting that park landscapes have sustained damage due to activities not compatible with landscape preservation. It was further stated that future incidents of landscape damage will be treated as acts of vandalism

SHERIFF DEPARTMENT COMMUNICATIONS
Lieutenant Fries reported on the following:
• Encouraged the public to be proactive and report concerns in a timely manner in order to assist the Sheriff's Department in proving as effectively as possible, was thankful to have been a part of the business safety meeting held in coordination with the Grand Terrace Chamber of Commerce Meeting and explained how ongoing assistance and information will continue to be made available

FIRE DEPARTMENT COMMUNICATIONS
Assistant Fire Chief Jager reported on the following:
• The roof at the Fire Station has been completed
• Attended the State of the Fire District on April 9, 2026

Adrian Guerra, City Attorney, recommended to the Council to read into the record the closed session items prior to recessing the Regular City Council Meeting in order to convene the Special City Council Meeting, scheduled to begin promptly at 7:30 pm.

Upon adjournment of the Special Meeting, the City Council would then reconvene the Regular City Council Meeting and proceed with the Closed Session Items.

NO PUBLIC COMMENT FOR CLOSED SESSION
The Regular City Council Meeting temporarily adjourned at 7:30 pm.

K. CLOSED SESSION
The Regular City Council Meeting reconvened at 8:11 pm for closed session.

1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
[Pursuant to California Government Code Section 54957]
Title of Position: City Manager

2. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant Exposure to Litigation
[Pursuant to Government Code sections 54954.5(c), 54956.9 (d)(3), (e)(1)] Based on existing facts and circumstances, this closed session is only to decide whether a closed session is authorized pursuant to Government Code section 54956.9(d)(2), which provides: “A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency.” Reference Nos. 2026-001 and 2026-002.

Number of cases: 2

RECONVENE TO OPEN SESSION
Mayor Hussey reconvened the Regular Meeting of the City Council from closed session at 9:12 p.m.

REPORT OUT OF CLOSED SESSION
Adrian Guerra, City Attorney, announced that there were two (2) closed session items.

An update was provided by the City Attorney; direction was provided to the City Attorney. However, there was no reportable action.

L. ADJOURN
Mayor Hussey adjourned the Regular Meeting of the City Council at 9:13 p.m. The next Regular City Council Meeting will be held on Tuesday, May 12, 2026, at 6:00 p.m. _______________________________ _______________________________ Bill Hussey, Mayor Daysi Alcocer, City Clerk

CITY OF GRAND TERRACE
City Council
MINUTES ● April 14, 2026
Council Chambers Special Meeting 7:30 PM
Grand Terrace Civic Center ● 22795 Barton Road

CALL TO ORDER
Mayor Bill Hussey convened the Special Meeting of the City Council for Tuesday, April 14, 2026, at 7:32 PM.

ROLL CALL
Adrian Guerra, City Attorney, stated for the record that all City Council members were present for this item.

Present: Mayor Bill Hussey
Mayor Pro Tem Michelle Sabino
Council Member Doug Wilson
Council Member Jeff Allen
Council Member Matt Brown

Absent:

A. PUBLIC COMMENT
None.

B. NEW BUSINESS
1) Measure I 3.0 Draft Expenditure Plan
Otis Greer, Deputy Executive Director with the San Bernardino County Transportation Authority, presented the PowerPoint presentation for this item.

PUBLIC COMMENT
Johan Gallo, Resident, provided a comment on this item.

RESULT: APPROVED 3 TO 1
MOVER: Council Member Allen
SECONDER: Mayor Hussey
AYES: Mayor Hussey, Council Member Wilson, Council Member Allen ABSTAIN: Mayor Pro Tem Michelle Sabino
NAYS: Council Member Brown

C. ADJOURN
Mayor Hussey adjourned the Special Meeting of the City Council at 8:10 p.m. to reconvene the Regular City Council Meeting. The next Regular City Council Meeting will be held on Tuesday, May 12, 2026, at 6:00 p.m.
_______________________________ _______________________________ Bill Hussey, Mayor Daysi Alcocer, City Clerk

AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: Renewal of Memorandum of Understanding with Institute for Public Strategies and California Health Collaborative
PRESENTED BY: Konrad Bolowich, City Manager
RECOMMENDATION: THAT THE CITY COUNCIL APPROVE THE RENEWAL OF THE

MEMORANDUM OF UNDERSTANDING (MOU) AMONG THE INSTITUTE

FOR PUBLIC STRATEGIES (IPS), THE CALIFORNIA HEALTH

COLLABORATIVE (CHC), AND THE CITY OF GRAND TERRACE TO

CONTINUE PROVIDING SUBSTANCE USE PREVENTION EDUCATION,

OUTREACH, AND TECHNICAL ASSISTANCE TO THE GRAND TERRACE COMMUNITY; AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE

RENEWED MOU AND TAKE ALL ACTIONS NECESSARY TO

IMPLEMENT THE PARTNERSHIP
2030 VISION STATEMENT:

This staff report supports Goal #4, Develop and Implement Successful Partnerships and Goal #5, Develop and implement Cost Effective Proactive Communication Program BACKGROUND:

The Institute for Public Strategies (operating under Public Strategies: Partners in Change) has served as a valued partner to the City of Grand Terrace by providing substance use prevention education, technical assistance, outreach, and public awareness efforts tailored to community needs.

IPS Central Valley, in collaboration with the California Health Collaborative, works with local jurisdictions to provide population-level prevention services designed to reduce substance use disorders and related harms. Their work focuses on education, harm reduction, youth and adult prevention strategies, and community engagement.

The City of Grand Terrace has participated in this partnership through prior MOUs, allowing IPS and CHC to conduct presentations, outreach, data collection, and event promotion within the community.

Staff reports that this collaboration has supported the City’s public health goals by increasing access to prevention resources and promoting healthier, safer environments for residents.

The current MOU is set to expire on June 30, 2026. The proposed agreement extends the MOU through June 30, 2027.

DISCUSSION:

The MOU formalizes collaboration between the City and its prevention partners to deliver coordinated education, outreach, and resource distribution throughout Grand Terrace.

Institute for Public Strategies (IPS):
• Provide substance use prevention education to Grand Terrace schools, as needed and as staffing permits.
• Disseminate prevention information and resources to residents. • Offer technical assistance to local businesses, residents, schools, and City Council members as capacity allows.
• Conduct outreach and tabling at community and school events. • Support event promotion through media advisories and distribution of materials. • Collect County-approved anonymous surveys related to alcohol, drugs, and youth perceptions.

California Health Collaborative (CHC):
• Provide tobacco prevention education, resources, and outreach materials. • Participate in community and school events as staffing permits.

City of Grand Terrace:
• Provide access to community spaces (such as the Senior Center or City Hall meeting rooms) for presentations and trainings.
• Supply available equipment and materials for events.
• Promote prevention activities using City communication channels. • Allow the distribution and posting of approved educational materials in compliance with the Grand Terrace Municipal Code.
• Permit anonymous County-approved survey collection during activities.

Coordination:

Project coordination will be led by Diana Villanueva-Tafolla, Program Manager with the Institute for Public Strategies.

ENVIRONMENTAL IMPACT:

This action does not meet the threshold of a project under CEQA and is exempt.

FISCAL IMPACT:

There is no direct fiscal impact to the City’s General Fund. City contributions are in-kind (facility use, communication support, and minimal staff coordination). Services are funded through the San Bernardino County Department of Behavioral Health.

Partners in Change
Administrative Office: 8885 Rio San Diego Drive, Ste 117  San Diego, CA 92108 Phone: 619-476-9100  Fax: 619-476-9104
www.publicstrategies.org
facebook.com/vibranthealthysafecommunities/
01247.0001 2057784.1
Memorandum of Understanding
between
Institute for Public Strategies, California Health Collaborative, AND the City of Grand Terrace
This Memorandum of Understanding (MOU), made and executed on April 30, 2026, is between the Institute for Public Strategies (IPS), California Health Collaborative (CHC), and the City of Grand Terrace (Grand Terrace). IPS, CHC, and Grand Terrace are sometimes individually referred to herein as “Party” and collectively as “Parties”.

PURPOSE
This MOU is entered into for the purpose of providing substance use prevention services, activities, and event promotion for the residents of Grand Terrace based on community needs. IPS Central Valley, funded by the San Bernardino County Department of Behavioral Health, to provide population-level prevention services and technical assistance that reduce substance use disorders and related harms, will lead this project. The initiative aims to provide services and education in communities, equipping individuals with harm reduction and life-saving resources to promote safe and healthy environments where youth and adults can thrive. This initiative will include crosscollaboration between IPS Central Valley, which focuses on prevention related to cannabis (other focus areas upon request), CHC, which provides tobacco education and resources, and the City of Grand Terrace.

Diana Villanueva-Tafolla ([email protected]), Program Manager with the Institute for Public Strategies, will coordinate and oversee this collaboration.

RESPONSIBILITIES AND EXPECTATIONS
IPS will be responsible for the following:
• Provide substance use prevention education to local Grand Terrace schools, based on need and staff capacity.
• Disseminate information and resources to Grand Terrace residents as needed and as staff capacity allows.

01247.0001 2057784.1
• Offer technical assistance to local businesses, residents, and schools on a need basis and within staff capacity.
• Provide annual technical assistance to Grand Terrace City Council members, based on staff availability.
• Participate in community and school events through outreach and tabling opportunities to distribute prevention resources, as staffing permits. • Create media advisories to be published by local radio stations and the city's website. • Distribute promotional materials for events to local businesses, schools, City Council members, and Grand Terrace residents.
• Collect San Bernardino County-approved anonymous alcohol and other drug surveys and youth perception surveys during presentations, events, and related activities.

CHC will be responsible for the following:
• Based on need and staff availability, provide the City of Grand Terrace with information and resources regarding the dangers of tobacco use.
• Participate in community and school outreach events through tabling opportunities to distribute tobacco prevention resources, as staffing allows.

Grand Terrace will be responsible for the following:
• Provide access to community spaces for hosting presentations and trainings, including but not limited to the Senior Center and the community room at City Hall. • Supply available equipment and materials—such as tables, chairs, projectors, and trash cans—to support the facilitation of presentations and events, as city resources allow. • Promote substance use prevention events through the city’s communication channels, including social media platforms, the city website, and local newspapers. • Permit the distribution and posting of flyers and educational resources throughout the City of Grand Terrace, provided that such distribution and posting complies with the City of Grand Terrace’s Municipal Code (GTMC) and any applicable sign or posting requirements, including but not limited to GTMC Chapter 12.40 “Advertising Circulation and Posting,” and Chapter 18.80 “Signs”. The Parties shall obtain such approvals as needed and ensure compliance with all applicable requirements, including any express authorization required by the City through a no-cost sign permit pursuant to GTMC Section 18.80.060 “Permit Required”.
• Allow the continued collection of San Bernardino County-approved alcohol and anonymous surveys during presentations, events, and related activities.

TIME PERIOD

01247.0001 2057784.1
This memorandum of understanding will be in effect from the date it is signed by all parties and will be renewed or terminated on June 30, 2027.

TERMINATION
This agreement may be terminated, in whole or in part, by either party without cause. If terminated, written notice of termination shall be given to the other party.

California Health Collaborative
Signature: _____________________
Name: ________________________
Title: _________________________
Date: _________________________
Institute for Public Strategies
Signature: _____________________
Brenda Simmons
CEO/President
Date: _________________________
Grand Terrace
Signature: _____________________
Name: ________________________
Title: _________________________
Date: _________________________

AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: Approve Additional Appropriations for Legal Services with Fennemore LLP in Connection with The Anthony Petta and Angeline Petta Family Trust Litigation
PRESENTED BY: Christine Clayton, Finance Director
RECOMMENDATION: APPROVE ADDITIONAL APPROPRIATIONS OF $25,000.00 FOR LEGAL

SERVICES WITH FENNEMORE LLP IN CONNECTION WITH THE
ANTHONY PETTA AND ANGELINE PETTA FAMILY TRUST LITIGATION. 2030 VISION STATEMENT:

This staff report supports our Mission to preserve and protect our community, City Council Goal #1, “Ensure Our Fiscal Viability.”
BACKGROUND:

City resident, Ms. Angeline Petta, passed away in January 2025. Prior to her passing, she had recorded a trust along with her husband in 2021, known as the Petta Family Trust. The Petta Family Trust was amended in December 2024, a month prior to Ms. Petta’s passing.

There is now a dispute within the Petta family as to who the proper trustees are to administer the trust. Specifically, as part of the 2024 Amendment, Ms. Petta’s nieces were named co-trustees of the Petta Family Trust. They allege that the original trustees, John Petta and Angie Hisler, were too “elderly and physically and/or cognitively incapable of serving” as trustees. As a result, Ms. Petta’s nieces have initiated a lawsuit to effectively have the December 2024 amendment declared valid and confirm their appointment as the trustees. Moreover, they seek to get the original trustees to be declared incapable of serving as trustees. The lawsuit is entitled The Anthony Petta and Angeline Petta Family Trust, dated May 10, 2012 as amended December 2, 2024, in the Probate Department of the San Bernardino County Superior Court as Case No. TRUVA2500084 (the “Action”).

Per the trust document, The Petta Family Trust named the following beneficiaries:
• Susan Petta Park
• Grand Terrace Library
• San Bernardino Valley College
• Grand Terrace Senior Center
• Grand Terrace Fire Station
As written, the City of Grand Terrace is a beneficiary of the trust with the expectation and hope to receive the intended trust proceeds. While the City is not a party in the litigation, the City has an interest in ensuring that the trust is administered appropriately and that the City receives any intended trust proceeds.

On October 14, 2025, City Council approved an agreement with Fennemore LLP to provide legal services in connection with the Anthony Petta and Angeline Petta Family Trust case.

DISCUSSION:

City staff recommends approval for additional appropriations of $25,000.00 for FY2025-26 for Fennemore LLP, which specializes in this area of law, to monitor this case and ensure the City’s interests are protected.

David Werner, of Fennemore LLP, was chosen to provide these legal services based on his expertise and experience in this specialized field. Mr. Wener has more than 25 years of civil litigation experience and specializes in trust litigation. As a probate, estate, and trust litigator, he has a unique understanding of the various and complex facets of probate and trust law, as well as other related areas of the law. Mr. Werner has briefed and argued cases before the California Court of Appeal for Districts Two, Four, and Five. He also briefed and successfully argued a case that was accepted for review by the California Supreme Court. Additionally, Mr. Werner is a resident of adjacent Loma Linda. As such, he is familiar with the City of Grand Terrace.

Mr. Werner charges $590 per hour. If additional attorneys are required, their hourly rates range from $330 to $815. Paraprofessionals are billed at hourly rates ranging from $210 to $350. The firm invoices monthly for services rendered, with payment due within 30 days of the invoice date.

Additionally, a $1,000 fee deposit will be held in trust to cover related costs. The firm possesses extensive experience and demonstrated expertise in trusts and estates litigation, including contested probate proceedings, and is well-qualified to represent the City's interests in this matter.

ENVIRONMENTAL IMPACT:

None.

FISCAL IMPACT:

Costs for legal services are billed hourly. The firm's lead attorney charges $590 per hour, with additional attorneys billed at rates ranging from $330 to $815 per hour, and paraprofessionals billed at rates ranging from $210 to $350 per hour. The additional appropriations and expenditures for FY2025-26 will be coded to account 10-160-250-100-000.

Fennemore LLP. David D. Werner
Director
[email protected]
550 E. Hospitality Lane, Suite 350
San Bernardino, California 92408
PH (909) 723-1718 | FX (909) 890-9877
fennemorelaw.com
October 14, 2025

VIA E-MAIL
City of Grand Terrace
Konrad Bolowich, City Manager
22795 Barton Road
Grand Terrace, CA 92313
Re: Engagement of Legal Services
Client: City of Grand Terrace
Matter: The Anthony Petta and Angeline Petta Family Trust Dear Mr. Bolowich:

I am writing to confirm the terms under which Fennemore LLP ("Fennemore" or "the Firm") will represent the City of Grand Terrace ("Client") in connection with the lawsuit captioned as The Anthony Petta and Angeline Petta Family Trust, dated May 10, 2012 as amended December 2, 2024, which is filed in the Probate Department of the San Bernardino County Superior Court as Case No. TRUVA2500084 (the "Action"). We appreciate the opportunity to work with you.

Our representation is limited to the Client identified above and our engagement will consist of protecting Client's interest as a beneficiary of The Anthony Petta and Angeline Petta Family Trust, dated May 10, 2012 by providing Client with representation in the Action. Our work is limited to these services, including any services rendered at your request on this matter prior to the date of this letter. If you subsequently ask us to provide legal services on additional matters, we will be happy to do so provided we agree in writing to perform that additional work and all other formalities required by Client to allow for the additional scope of representation are followed and completed.

My current hourly rate is $590.00. Other attorneys, if needed, will be billed at hourly rates which currently range from $330-$815, depending on levels of experience. Certain tasks may be assigned to paraprofessionals at hourly rates that currently range from $210-$350. Our rates may change periodically. Billings for services will be based on the factors described in the enclosed Terms of Engagement.

Our office generally requires a fee deposit from new clients to begin work on a matter. In this instance, we request a fee deposit of $1,000, to be held in trust, and to be available to pay for

City of Grand Terrace
October 14, 2025

costs, such as for filing service and related fees, when they are incurred. The fee deposit will be administered according to the enclosed Terms of Engagement. In any event, we will bill monthly and expect payment within 30 days.

I encourage you to contact me with any questions or comments you may have in the future regarding our statements or services.

Please review this letter and the enclosed Terms of Engagement, which are incorporated herein, and if the terms and conditions of the engagement are satisfactory, please sign and return to me a copy of this letter.

Call if you have any questions. We look forward to working with you.

DWER/VA
CC: Adrian R. Guerra, Esq., City Attorney
Very truly yours,

FENNEMORE LLP
David D. Werner
I have reviewed this letter and the enclosed Terms of Engagement and I agree to the terms and conditions in both.

CITY OF GRAND TERRACE
By:

Name: Konrad Bolowich
Title: City Manager

City of Grand Terrace
October 14, 2025

TERMS OF ENGAGEMENT
TO OUR CLIENTS:

Fennemore's standard terms of engagement for providing legal services as described in the attached letter are summarized below. These terms (the "Terms of Engagement") are an integral part of our agreement to provide you with legal services. These Terms of Engagement, together with the engagement letter to which these Terms of Engagement are attached, may be referred to as the "Engagement Agreement." Please contact us promptly after reading these terms if you have any questions.

1. Who is Our Client? Except as otherwise expressly agreed in writing, we represent only the person(s) or entity(ies) identified in our engagement letter (referred to herein as "you" or "Client"). Unless specifically stated in that letter, our representation of you does not extend to any of your affiliates, employees, officers, shareholders, or any entities in which you own an interest.

If you are a partnership or limited liability company, our representation does not extend to the individual partners or members of that entity. If you are a trade association, our representation does not extend to members of the trade association. If you are an individual, our representation does not include your spouse, siblings, other family members, or any entity in which you hold an ownership interest. In addition, the advice and communications which we render on your behalf are not intended to be disseminated to or relied upon by anyone else without our written consent.

If Client is an entity, we will look to the managers, partners or officers, as appropriate, of the entity for our instructions regarding the legal services to be performed, as well as for the resolution of any issues that may arise in the course of the services. California Rule of Professional Conduct Rule 1.13 ("Rule 1.13") addresses legal representation of an entity or organization and certain of its owners and employees. A copy of Rule 1.13 is available here for your reference:

Matters.
https://www.calbar.ca.gov/Portals/0/documents/rules/Rule_1.13-Exec_Summary-Redline.pdf

2. Conflicts and Consent Relating to Future Adverse Representation in Unrelated (a) To assist in avoiding representing parties with conflicts of interests, we maintain a computerized conflict of interest index. The Firm will not represent any party with an interest that may be adverse to that of a person or entity included in the index without an examination to determine whether a conflict of interest would actually be created. To allow us to perform a conflict check, you represent that you have identified for us all persons or entities that are or may become involved in this matter, including all persons and entities that are affiliated with you and the other involved or potentially involved parties (such as parent corporations, subsidiaries and other affiliates, officers, directors and principals). Nonetheless, unless this Engagement Agreement states otherwise, the Firm's only Client is the individual or entity identified as such in the engagement letter. You also agree that you will promptly notify us if you become aware of any other person or entities that are or may become involved in this matter.

City of Grand Terrace
October 14, 2025

(b) Our firm provides a wide array of legal services, including administrative, legislative, litigation, and transactional services, to many other companies and individuals. It is possible that one or more of our present or future clients will have disputes or transactions with you during the course of our representation of you or that one or more of them will ask us to advocate a change in law or policy that might have a direct or indirect adverse impact upon your interests. You agree that we may represent any existing or new clients in any matter that is unrelated to our representation of you, including matters that are directly adverse to you or in which a policy we advocate might have a direct or indirect adverse impact upon your interests.

We agree, however, that your prospective consent to conflicting representation set forth in the preceding sentence shall not apply in any instance where, as a result of our representation of you, we have obtained confidential information that, if known to our other client, could be used in the matter adverse to you and to your material disadvantage and we have not taken steps to screen such information from the lawyers representing the other client in the matter adverse to you prior to such lawyers learning any such information or where we are otherwise precluded from undertaking the representation under applicable ethical rules that govern lawyers. You hereby consent to the Firm taking any reasonable measures it deems appropriate to protect your confidential information from such disclosure or use, including the creation of a formal "ethical screen" in accordance with the Firm's internal procedures for implementing such measures. Your alternative to giving this consent to our future representation of other clients is to retain any other counsel of your choosing to represent you in this matter, and you acknowledge that the Firm would not agree to represent you with respect to the matter covered by this Engagement Agreement without your consent and agreement as described in this paragraph. (c) In similar engagement letters with many of our other clients, we may ask for similar agreements to preserve our ability to represent you. You agree that we may disclose the fact of our representation of you, without disclosing the nature of such representation, to other current or future clients that may be adverse to you for the purpose of obtaining such other clients' consent to any conflict of interest that may be presented by our representation of you and such other client. We will not disclose to the other client any confidential information pertaining to our representation of you.
(d) If we have indicated in the engagement letter above that we currently represent one or more other parties in unrelated matters adverse to your interests or if in an unrelated matter we currently represent one or more other parties whose interests are adverse to yours in this matter, and you have decided you want us to represent you, knowing we represent such other client(s) adverse to you in other matters, we have required you to sign the attached "Conflicts of Interest/Consent and Waiver," which is incorporated herein as though fully set forth. (e) If we have actual knowledge or reasonably should know that in this matter (1) another party's lawyer is a spouse, parent, child, sibling, living with, or has an intimate personal relationship with your lawyer, or (2) another party's lawyer is a client of your lawyer or any other Firm lawyer, then we have disclosed that relationship to you in writing in the above engagement letter as required by California Rule of Professional Conduct 1.7(c). Your lawyer believes you

City of Grand Terrace
October 14, 2025

will receive competent and diligent representation in this matter. If you are aware that any relationship described above exists, please advise us. Otherwise, you agree that we may represent or be represented by lawyers or law firms representing clients whose interests are adverse to yours in unrelated matters.

3. Fees. We encourage you to discuss with us at any time any questions you might have concerning our billing procedures. We charge fees that are reasonable based on criteria for reasonableness set forth in the applicable Rules of Professional Conduct, which include the time, effort and skill required to perform the services properly, the novelty and complexity ofthe issues, time constraints imposed by the Client or by the nature of the matter, the degree of risk imposed on the lawyer, the amount involved and the results achieved. As a result, fees based on our hourly rates are subject to adjustment to reflect what we believe to be a reasonable charge for tasks performed on your behalf. Standard hourly rates may change periodically, and any changes will be reflected in our monthly billing statements.

4. Billing and Costs.
(a) We ordinarily bill monthly. We request that you review any billing statements promptly upon receipt to determine if you have any questions or comments. Our billing statements are due and payable upon receipt. We ask and expect payment of our statements on a current basis, as delayed payment adds to our overall costs of providing services. Interest at the rate of 10 percent per annum will be assessed on all amounts not paid within 30 days of the date of the statement. In no event will the interest exceed the maximum rate allowable by law on delinquent payments. We bill for all costs advanced for items such as filing fees, expert witness fees, if needed, and travel expenses. Bills will also include charges for other costs, such voluminous document reproduction costs ($.20 per page), service fees, and messenger charges.

While our charges for these services are measured by use, they do not always reflect our actual out-of-pocket costs. Some expense charges include an approximation of applicable overhead incurred by the Firm as itemized to the particular expense. For many of these items, the true cost of providing the service is difficult to establish, and in some instances, the amounts charged are estimates which may exceed the actual cost to the Firm. We would be pleased to discuss the specific schedule of charges with you and to answer any questions you may have. Any changes in these routine charges will be reflected in our monthly billing statements. to
(b) We make every effort to include disbursements in the statement for the month in which the disbursements are incurred. Some disbursements, however, are not available us until sometime after the month in which the service related to the charge was performed, in which case either the charge will be billed in a subsequent month, a supplemental statement will be prepared, or an estimated amount will be included in the initial billing and an adjustment made when the actual disbursement information is available.
(c) We may require and you agree to pay certain large disbursements, such as expert witness fees, if such is required, directly to the third party provider.

City of Grand Terrace
October 14, 2025

(d) We look to the Client for payment regardless of whether the Client is insured to cover any particular risk. From time to time, we may agree to assist clients in pursuing third parties for recovery of attorneys' fees and other charges resulting from our services. These situations include payment of fees under contracts, statutes or insurance policies. It remains the Client's obligation to pay all amounts due to us upon receiving our statement. (e) It is the Firm's policy that, if an invoice remains unpaid for more than 90 days, then, absent extraordinary circumstances and subject to legal ethics constraints, we reserve the right to terminate representation, and you hereby authorize us to withdraw from all representation of you. Any unapplied deposits will be applied to outstanding balances. Generally, the Firm will not recommence its representation or accept new work from you until your account is brought current and a new deposit for fees and costs, in an amount that the Firm determines, is paid to us.

5. Funds Deposited with Fennemore.
(a) Retainers and Fee Deposits. We frequently obtain an advance retainer or fee deposit from new clients, and from existing clients under certain circumstances, to secure the payment of our fees and recoverable expenses. The amount and terms of the retainer arrangement are determined after consultation with the billing attorney. It occasionally may be appropriate to require an additional retainer after the commencement of the engagement, depending on payment history or on the scope of the work. The retainer will be held in a general Firm trust account in California, with interest payable to the California IOLTA as required by California Rule of Professional Conduct 1.15(a). Although we will typically hold the retainer in trust and apply it to our final invoice, we reserve the right to apply the retainer to our fees and expenses as we earn or incur them from time to time over the course of the engagement, in which case we may ask you to replenish the advance retainer at the amount of the initial retainer or some other amount. Retainer disbursements will be detailed on our billing statements sent to you. You will be invoiced for replenishment of the amount withdrawn. Non-replenishment of the amount requested within 30 days plus amounts then due may be deemed a breach of this Engagement Agreement. Any portion of the retainer unused after full payment of all amounts due to us will be returned to you promptly upon completion of our services. Any amounts due to us in excess of the retainer will be billed to you.
(b) Other Funds. Occasionally, funds due to the Client will be deposited with Fennemore for the benefit of the Client. Absent other agreement with the Client, such funds will be deposited in a general Firm trust account as described in paragraph 5(a) above.

6. Estimates. Any estimates of anticipated fees that we provide, for budgeting purposes or otherwise, are, due to the uncertainties involved, necessarily only an approximation of potential fees. Such estimates are not a maximum or minimum fee quotation.

City of Grand Terrace
October 14, 2025

7. Opinions. During the course of our representation of you, we may express opinions or beliefs concerning the matter on which we are working or various courses of action and the results that might be anticipated. Any such statement is intended to be an expression of opinion only, and should not be construed by you as a promise or guarantee.

8. Client Responsibilities. Recognizing that we cannot effectively represent you without your cooperation and assistance, you agree to cooperate with us and to provide promptly all information known or available to you that is relevant to the subject matter of our representation or otherwise requested by us, including but not limited to full and timely access to any documents or information that we consider to be necessary or important and any changes in the name, address, telephone number, contact person, e-mail address, state of domicile or other relevant changes regarding you or your business. Failure to provide requested information could reduce the effectiveness of our representation and could lead to our withdrawal from our representation of you.

It is essential that we be able to reach you when needed. You agree to promptly notify us of any changes in your contact information.

If you affiliate with, acquire, or are acquired by or merge with another company or otherwise become aware of information that may evidence the existence of a conflict of interest that was not disclosed by you at the beginning of the engagement, you agree to provide us with sufficient advance notice to permit us to determine whether such affiliation, acquisition or merger creates a conflict of interest between any of our clients and the other party to such affiliation, acquisition or merger.

9. Representation of Lawyers.
(a) If you are not a Lawyer. We sometimes represent lawyers and law firms, and we are sometimes represented by other lawyers and law firms, in matters unrelated to our representation of you. Because we do not believe these representations will materially limit our responsibilities to you or will otherwise adversely affect our representation of you, we do not believe these representations present conflicts of interest, including where any such firm also represents a client whose interests are opposed to yours in either a litigation or transactional setting.

You consent to our representation of you despite this Firm's representation of or by other lawyers or firms. See paragraph 2(e) above.
(b) If you are a Lawyer. Our work on your behalf will be limited to the work described in the above engagement letter. Because we may represent clients in business and litigation matters where you or your firm represents a party with interests adverse to those of our other clients, the potential exists that actions taken by Fennemore on behalf of its clients could directly or indirectly impact you and your firm. Examples are claims of conflict of interest, requests for discovery sanctions, and objections to fee applications. Accordingly, our representation of you and your firm

City of Grand Terrace
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is with the understanding that you consent to any conflict of interest with respect to our representation of other clients with respect to such matters.

10. Credit Checks. Depending on the nature of our representation of you, we may from time to time request information from credit reporting agencies for the purpose of verifying or considering your credit status. Your engagement of Fennemore will constitute your authorization to perform such credit checks.

11. Renewals, Updates, and Other Filings. Unless otherwise specifically agreed upon in advance in writing, we do not undertake to complete or file any initial, annual, or other periodic report required by any governmental agency. Such reports include, without limitation, beneficial owner information reports required under federal law and annual information reports required under applicable state law. In addition we do not undertake to renew or maintain any water right or claim filings, well ownership filings, assured water supply approvals, mining claim filings, trademarks, trade names, patents, UCC financing statements, judgments or other filings unless (i) otherwise specifically agreed upon in writing, and (ii) we are currently representing you at the time such renewal is required. As a matter of courtesy only, we may from time to time voluntarily provide you with notices of future events or activity affecting your rights related to such filings or other documentation we have prepared, but any such notices shall not be regarded as evidence of an obligation to provide them to you or any assurance that such notices will be provided in the future.

12. Termination. Either of us may terminate the engagement at any time for any reason by written notice, subject on our part to applicable rules of professional conduct and our obligation to give you reasonable notice to arrange for alternate representation. The engagement shall also terminate on the completion of our services hereunder. If we have been engaged in multiple matters, our relationship will also be considered terminated if no matters are pending and there have been no communications between us for three months or more, unless otherwise agreed to in writing. You will remain obligated to pay for fees and costs incurred prior to termination.

13. Post-Engagement Matters. Unless our engagement is by its nature a continuing one (as when we are initially engaged to handle one of a series of separate matters that will be referred to us in connection with an ongoing project) or unless the engagement letter specifically reflects that our engagement is intended to continue beyond the current matter, our engagement will cease upon completion of the matter for which you have engaged us. Upon conclusion of the tasks we have been asked to perform in connection with this engagement, we will have no duty to inform you of future developments or changes in the law affecting any of your interests including your interests in the matter subject to this engagement. To the extent that we voluntarily provide you with newsletters, documents or information concerning such matters following the conclusion of this engagement, such provision shall be considered a matter of courtesy only and shall not be considered the fulfillment or basis of any duty or the re-establishment of any attorney-client relationship.

City of Grand Terrace
October 14, 2025

14. Retention and Destruction of Documents. Following the conclusion of this engagement, any otherwise nonpublic information you have supplied to us which is retained by us will be kept confidential in accordance with applicable rules of professional conduct. At your request, your original papers and property will be returned to you promptly. Our own files pertaining to the matter, which include, for example, Firm administrative records, time and expense reports, personnel and staffing materials, credit and accounting records, and internal lawyers' work reports, prepared by or for the internal use of lawyers, will be retained by the Firm.

We may retain copies of any file papers returned to you. If you do not request the return of your records, your file and records may be destroyed following the period of time specified by our document retention/destruction policy. This period may vary depending on the nature of the engagement involved. In any event, all files may be destroyed seven years following the conclusion of the engagement.

15. Fee Arbitration. In the unlikely event of any dispute regarding the amount or payment of fees, we have the right to terminate our legal representation in this matter, subject to our obligation to give you reasonable notice to arrange for alternate representation. If such a dispute arises that cannot be resolved, you may elect to use any State Bar mandatory dispute resolution procedures that may apply.

If mandatory dispute resolution procedures regarding our fees or costs have been waived or exhausted, you and the Firm agree to submit the dispute to binding arbitration. In the unlikely event a dispute is submitted to binding arbitration, there is no right to a trial by jury, and the arbitration's legal and factual determinations are generally not subject to appellate review. Such disputes shall be decided by a single neutral arbitrator who shall be a retired judge mutually acceptable to Client and the Firm or appointed by JAMS or other agreeable private dispute resolution service. Any other dispute arising out of or related to this agreement or our professional services will also be finally decided by a single neutral arbitrator who is an attorney or retired judge, mutually acceptable to the Parties or appointed by JAMS or other agreeable private dispute resolution service. The Arbitration Rules of JAMS or other agreeable private dispute resolution service will apply to any dispute for which the arbitrator is appointed by JAMS or other agreeable private dispute resolution service. Arbitration shall be in accordance with the laws of the State of California, and any arbitral proceedings hereunder shall take place in California. By signing this Engagement Agreement, you are giving up your right to a trial by jury of the dispute.

We recommend that you discuss the advisability of arbitration with independent counsel or any of your other advisors and to ask any questions which you may have prior to signing this Engagement Agreement.

16. Mediation. As to any claim or dispute arising out of or connected with our services, other than a fee dispute covered by the preceding paragraph, we mutually agree to attempt in good faith to settle the dispute by non-binding mediation before commencing any legal action or other dispute resolution procedure.

City of Grand Terrace
October 14, 2025

17. Affiliations. Fennemore is a member of one or more networks of independent law firms, such as The Toledo Group, a national network of independent law firms that seeks to share experiences and best practices in law firm administration, management, technology and service.

Although a member of one or more such organizations, Fennemore is completely independent and does not have common operations, share fees or collaborate on a pre-arranged basis with other member firms. If collaboration with other independent members of organizations is appropriate to serve your needs, Fennemore will discuss the specific engagement with you.

18. Confidentiality. We will maintain all information regarding your representation confidential in accordance with applicable law and Rules of Professional Conduct. From time to time we may have discussions with other lawyers for the purpose of considering their employment by Fennemore, or law firms for the purpose of considering a potential combination with such law firms. During the course of those discussions it may be necessary to disclose your identity as a client or fee and billing information relating to our representation of you. Such disclosure shall be subject to a confidentiality agreement between us and such other lawyers or law firms, and you agree that we may disclose such limited information for these purposes.

19. Artificial Intelligence. We anticipate that during the course of this engagement, the firm will use generative artificial intelligence ("GenAI") to enhance and streamline certain aspects of our services. Like any technology, GenAI carries some degree of risk, which may include risk of errors in GenAI-generated content, data security vulnerabilities and system malfunctions. We have implemented reasonable measures to safeguard against these risks and our lawyers maintain oversight of GenAI-generated outputs. Accordingly, we believe and you agree that the benefits of using this technology outweigh the related risks, and you consent to use of this technology.

20. Storage and Use of Electronic Data. You are aware of and consent to the retention, maintenance, and storage of your information and records relating to this matter in the following forms and locations: paper (in office and/or storage files); electronic (e.g., computer, handheld devices for email, fax, and via the Internet using cloud storage); or other like media. Unfortunately, email, cellular phones, text messaging, cloud-based storage, and other forms of electronic communication and data storage (collectively, "Electronic Communication") are not completely secure. If there are certain documents or information with respect to which you desire to maintain absolute confidentiality, you must instruct the Firm in writing not to transmit or store such documents or information using standard modes of Electronic Communication so that the Firm can take appropriate actions to comply with your request. In the absence of such instructions, you acknowledge that the Firm will use Electronic Communication in its efforts to provide efficient and effective representation, and you authorize the Firm to use Electronic Communication in connection with the Firm's representation of Client.

21. Governing Law/Venue. Any claim or dispute arising out of or connected with our services shall be governed by the laws of the State of California. Any lawsuit relating in any way to our services shall be instituted only in the state or federal courts of the State of California. You

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consent to and agrees to the jurisdiction of such state and federal courts located in the State of California.

We are pleased to represent you and we look forward to a mutually satisfying relationship.

Again, if at any time you have a question or concern, please feel free to bring it to the attention of the attorney or attorneys responsible for your representation at Fennemore. 60622504.1/099506.0013

AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: Amendment No. 1 to the Regional Partnership Agreement for Animal Shelter Services with the City of San Bernardino
PRESENTED BY: Konrad Bolowich, City Manager
RECOMMENDATION: THAT THE CITY COUNCIL ADOPT A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE REGIONAL PARTNERSHIP AGREEMENT

FOR ANIMAL SHELTER SERVICES WITH THE CITY OF SAN

BERNARDINO, AUTHORIZING THE CITY MANAGER TO EXECUTE THE

AMENDED AGREEMENT, WHICH UPDATES THE COST OF SERVICE

ALLOCATION
2030 VISION STATEMENT:

This staff report supports Goal #1: Ensure our Fiscal Viability by aligning service costs with actual utilization and maintaining a sustainable regional service model.

BACKGROUND:

On April 24, 2018, the City Council directed staff to contract with the County of Riverside for animal sheltering services at the Jurupa Valley Shelter. At that time, the City of San Bernardino was evaluating whether to outsource shelter operations or continue operating its own facility.

From 2018 through 2023, Riverside County provided reliable sheltering services to the City. However, the Jurupa Valley Shelter is located approximately thirty minutes from Grand Terrace. This distance created operational inefficiencies, as each impound removed an officer from the City for approximately one and one-half to two hours. Additionally, residents were required to travel the same distance to reclaim or surrender animals, creating an inconvenience to the public.

In contrast, the City of San Bernardino shelter is located less than five miles from Grand Terrace.

During this time, San Bernardino made significant investments in refurbishing its shelter, expanding capacity, and improving overall program operations.

On December 6, 2023, the City of Grand Terrace entered into a Regional Partnership Agreement with the City of San Bernardino and several neighboring jurisdictions for animal sheltering services. The agreement established a three-year term beginning July 1, 2024, and ending June 30, 2027.

The original agreement utilized an incremental cost model that primarily captured the cost of additional staffing required to support the regional partnership. With one full year of operational data now available, San Bernardino Animal Services has conducted a comprehensive evaluation of actual costs associated with providing shelter services.

Based on this analysis, San Bernardino is proposing an amendment to transition to a full-cost recovery model.

DISCUSSION:

The proposed amendment revises the cost allocation methodology to more accurately reflect the total cost of providing animal shelter services.

Under the amended structure, costs will include:
• Salaries and benefits for all shelter personnel involved in operations, not just incremental staff • Veterinary services and animal care costs
• Shared operational costs associated with maintaining the shelter facility • Indirect administrative costs, including support from Human Resources, Finance, Payroll, and Facilities
This approach reflects the reality that the shelter operates as an integrated system, where all personnel contribute to intake, care, treatment, and placement of animals regardless of their originating jurisdiction.

The amendment also includes a 3% annual Consumer Price Index (CPI) adjustment, applied during the year-end reconciliation process to account for inflationary increases in operational costs.

Capital improvement costs previously incurred for shelter construction and upgrades are not affected by this amendment and will continue to be repaid as originally structured through the term of the agreement.

With respect to utilization, the City of San Bernardino budgets approximately $65,000 annually for Grand Terrace’s participation in the program. However, Grand Terrace has historically utilized approximately $40,000 in services, reflecting lower-than-anticipated intake levels.

This reduced utilization is the result of proactive operational practices, including efforts by contract officers to repatriate animals directly to their owners prior to impoundment whenever possible. In addition, the City’s microchipping requirement as part of the licensing program has significantly improved the ability to identify and return animals quickly, further reducing the need for shelter intake.

Importantly, this amendment does not modify service levels, service delivery, or the City’s participation in the regional program. The change is limited to how costs are calculated and allocated among participating agencies.

The proposed amendment updates the cost allocation methodology to reflect actual operational costs associated with providing regional animal shelter services. While this results in a modest increase in cost, the City’s proactive enforcement practices and effective microchipping program continue to reduce overall utilization and associated costs.

Staff recommends approval of the amendment.

ATTACHMENTS:
• Amendment No. 1 to Regional Partnership Agreement
• Original Regional Partnership Agreement
• Proposed Resolution

ENVIRONMENTAL IMPACT:

This action does not meet the threshold of a project under CEQA and is exempt.

FISCAL IMPACT:

Approval of the amendment will result in an increase in the City’s cost of animal shelter services, as the revised model reflects full operational cost recovery rather than incremental costs. The total estimated increase, including CPI adjustments, is approximately $6,000 annually.

Actual costs will vary based on:
• The number of animals originating from Grand Terrace
• Overall operational costs of the shelter
• Annual CPI adjustments
These costs will continue to be incorporated into the City’s annual budget and coded to account 10- 185-255-000-000.

CC Reso No. 2026-xx Page 1 of 2 May 12, 2026
RESOLUTION NO. 2026-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO THE

REGIONAL PARTNERSHIP AGREEMENTS FOR ANIMAL SERVICES
WHEREAS, the City of San Bernardino and the City of Grand Terrace have entered into an agreement, dated June 1, 2024, for the purpose of providing animal shelter services (the “Original Agreement”); and
WHEREAS, the City of San Bernardino, the City of Grand Terrace (the “Shelter Partner”) and the cities of Fontana, Grand Terrace, Loma Linda, Colton and Rialto (individually, “Participant”, collectively, the “Participants”), have entered into an agreement, dated July 1, 2024, for the purpose of memorializing conditions of the animal shelter services, constructing a new shelter, and establishing cost-sharing allocations (the “Participation Agreement”); and
WHEREAS, the City of San Bernardino retained the right to renegotiate the terms and amend expense amounts and billing costs of the Participation Agreement and the Original Agreement as needed to reflect relevant factors; and WHEREAS, given changes in levels of use, increased costs, and inability to adequately account for costs incurred, the City of San Bernardino exercised that right, and the City of Grand Terrace consented to the proposed changes; and WHEREAS, the City of San Bernardino and City of Grand Terrace now desire to amend the Original Agreement in order to revise the monthly billing amounts and ensure accurate cost-sharing amounts; and
WHEREAS, approval of Amendment No. 1 to the Regional Partnership Agreements for Animal Services will permit updates to the cost allocation structure, adjust the City of Grand Terrace’s share of operational expenses based on actual shelter usage, incorporate staffing and indirect costs associated with providing regional animal sheltering services, and implement a Consumer Price Index (CPI) adjustment to account for inflationary increases in operational cost, as detailed in Amendment No. 1.

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

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

SECTION 2. Approval of Amendment No. 1 to the Regional Partnership Agreements for Animal Services. The City Council of the City of Grand Terrace hereby approves Amendment No. 1 to the Regional Partnership Agreements for Animal Services, a copy of which is attached hereto as EXHIBIT “A” and incorporated herein by this reference and authorizes the Mayor to execute the same.

CC Reso No. 2026-xx Page 2 of 2 May 12, 2026
SECTION 3. Severability. The City Council declares that, should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.

SECTION 4. Implementation. The City Manager or designee shall oversee the implementation of the deceased pet removal service, including public outreach and education regarding the new service.

SECTION 5. Effective Date. The City Clerk shall certify to the passage and adoption of this Resolution, and it shall take effect immediately.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 12th day of May 2026. ___________________________
Bill Hussey
Mayor
ATTEST:

Daysi Alcocer
City Clerk
APPROVED AS TO FORM:

Adrian R. Guerra
City Attorney

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AMENDMENT NO. 1 TO

ANIMAL SHELTER SERVICES AGREEMENT

WITH THE CITY OF GRAND TERRACE
This Amendment No. 1 to the Animal Shelter Services Agreement for is made and entered into as of July 1, 2026 (“Effective Date”) by and between the City of San Bernardino, a charter city and municipal corporation (“City”) and the City of Grand Terrace, a municipal corporation (“Shelter Partner”). City and Shelter Partner are sometimes referred to herein individually as a “Party” and collectively as “Parties.”

RECITALS
A. WHEREAS, the City and the Shelter Partner have entered into an agreement, dated June 1, 2024, for the purpose of providing animal shelter services (the “Original Agreement”);
B. WHEREAS, the City, the Shelter Partner and the cities of Fontana, Grand Terrance, Loma Linda, Colton and Rialto (individually, “Participant”, collectively, the "Participants" ), have entered into an agreement, dated July 1, 2024, for the purpose of memorializing conditions of the animal shelter services, constructing a new shelter, and establishing cost-sharing allocations (the “Participation Agreement”); C. WHEREAS, the City retained the right to renegotiate the terms and amend expense amounts and billing costs of the Participation Agreement and the Original Agreement as needed to reflect relevant factors;
D. WHEREAS, given changes in levels of use, increased costs, and inability to adequately account for costs incurred, the City chooses to exercise that right, and the Shelter Partner consents to the proposed changes;
E. WHEREAS, the Parties now desire to amend the Original Agreement in order to revise the monthly billing amounts and ensure accurate cost-sharing amounts.

NOW, THEREFORE, in consideration of the above recitals and the mutual covenants, conditions, and promises contained in the this Amendment No. 1 and the Original Agreement, the Parties mutually agree as follows:

AGREEMENT

1. Incorporation of Recitals. The recitals listed above are true and correct and are hereby incorporated herein by this reference.

2. Operational Expenses. Section I. E.1 “Allocation of Operational Expenses” shall be removed in its entirety and replaced with the following:
“The operational cost for Services owing pursuant to this Agreement, calculated with respect to Shelter Partner, each remaining Participant, and the City, shall include their portion of the following costs, calculated and

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assessed on a quarterly basis: (1) all annual costs of operation of the Shelters, including salaries and benefits for all shelter staff, including administrative staff, that contribute to the operation of the Shelters, and (2) other indirect costs related to the operation of the shelters, including but not limited to building maintenance, budgeting, recruitment, and security expenses .

An estimated amount for staff salaries, staff benefits, and indirect costs are depicted in Exhibit D attached hereto and incorporated herein by reference. These estimates are subject to reasonable modification to reflect factors including, but not limited to, a necessary increase in shelter staff and the number of cities that elect to procure Services from the City and such cities’ usage needs. Shelter Partner acknowledges that the division of all operational costs among the Participants allows for costs efficiencies and operational savings to each Participant and that each Participant has entered into their respective Services Agreements in reliance on such shared costs and resulting savings. Each Participant, to provide assurance of such continued cost efficiencies to each remaining Party, hereby expresses its commitment to procure Services from the City for a period of three (3) years with an opportunity to extend the agreement for an additional two (2) one (1) year periods and acknowledges the financial burden that any breach of this commitment would have on all other Parties. To that end this Services Agreement shall each provide for a three (3) year term of service in accordance with Section II of this Agreement.”

3. Compensation for Services. Section III shall be removed in its entirety and replaced with the following:
“Shelter Partner shall reimburse City for the services performed and the expenses incurred in accordance with Exhibit E, “Updated Compensation for Animal Care Shelter Services”, attached hereto and incorporated herein by reference. City shall invoice Shelter Partner on a quarterly basis for such Services, based upon Shelter Partner’s use percentage from the prior fiscal year. Upon closing of the each fiscal year, the City shall recalculate Shelter Partner’s actual use percentage, and impose an additional three (3) percent annual fee onto the Shelter Partner, based upon those actual use amounts.

City shall invoice Shelter Partner additional costs based upon the difference between their prior and actual use percentages. If Shelter Partner’s actual use percentage is lower than the prior fiscal year percentage used, the City shall calculate the difference over-billed and notify Shelter Partner of the amount (said amount shall be credited to Shelter Partner’s future payments.) Payment shall be due and payable by Shelter Partner within 30 days following its receipt of the City’s invoice. Shelter Partner acknowledges that payments for Services does not reduce or offset amounts owing towards the Improvements.”

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4. Amendment to Exhibit D. Exhibit D shall be removed in its entirety and replaced with the attachment, “Exhibit D: Updated Estimated Salaries of Shelter Staff.”

5. Amendment to Exhibit E. Exhibit E shall be removed in its entirety and replaced with the attachment, “Exhibit E: Updated Compensation for Animal Care Shelter Services.”

6. Full Force. Except as amended by this Amendment No. 1, all provisions of the Original Agreement, including without limitation the indemnity and insurance provisions, shall remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 1.

7. Electronic Transmission. A manually signed copy of this Amendment No. 1 which is transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Amendment No. 1 for all purposes. This Amendment No. 1 may be signed using an electronic signature.

8. Counterparts. This Amendment No. 1 may be signed in counterparts, each of which shall constitute an original.
[SIGNATURES ON FOLLOWING PAGE]

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SIGNATURE PAGE FOR
AMENDMENT NO. 1 TO THE ANIMAL SHELTER SERVICES AGREEMENT

WITH THE CITY OF GRAND TERRACE
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 1 on the Effective Date first herein above written.

CITY OF SAN BERNARDINO,
a charter city and municipal corporation
By:__________________________
Eric Levitt
City Manager

CITY OF GRAND TERRACE ,
a municipal corporation
By:__________________________
Konrad Bolowich
City Manager
ATTEST:

By:___________________________
Telicia Lopez
City Clerk
ATTEST:

By:___________________________
Daysi Alcocer
City Clerk
APPROVED AS TO FORM:

By:___________________________
Thomas Rice
City Attorney
APPROVED AS TO FORM:

By:___________________________
Adrian Guerra
City Attorney

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EXHIBIT D

UPDATED ESTIMATED ADDITIONAL COSTS
Each Participant’s percentage share is based upon their use percentage from the prior fiscal year.

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EXHIBIT E

UPDATED COMPENSATION FOR ANIMAL CARE SHELTER SERVICES
The Shelter Partner, City of Grand Terrace shall be billed on a quarterly basis, based on their percentage of share from Exhibit D, for actual staffing costs, other shelter related expenses, and all indirect costs. The City shall send an itemized billing to the shelter partner at the beginning of each quarter for services rendered in the preceding threemonth period. Payment is due to City by the Shelter Partner within 30 calendar days of their receipt of the invoice.

Upon closing of the current fiscal year, the City shall calculate Shelter Partner’s actual use percentage, which will include a three (3) percent CPI annual fee to account for uncaptured operational and service expenses, and invoice Shelter Partner for additional “true-up” costs based upon the difference between their prior and actual use percentages. If Shelter Partner’s actual use percentage is lower than the prior fiscal year percentage used, the City shall calculate the difference over-billed and notify Shelter Partner of the amount. Said amount shall be credited to Shelter Partner’s future payment(s).

Additional Costs which may be billed to Shelter Partners at actual cost:
• Livestock, including domestic cattle and equine to be housed and cared for at contracted stables.
• Emergency veterinary visits at contracted veterinary hospitals to be approved by Shelter Partner for after-hours emergencies and Animal Cruelty cases where specialized treatment or necropsies are necessary.
• Extra deceased animal disposal requests from Shelter Partner, including large livestock disposals located in Shelter Partner’s Jurisdiction. • Additional supplies as needed, including veterinary medical supplies and pet food at cost.
• Other indirect costs accrued over a billing period, including building maintenance and budgeting fees.

AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: 2025 Annual Progress Report for the City’s 2021–2029 Housing Element PRESENTED BY: Gabriel Arguelles, Associate Planner
RECOMMENDATION: RECEIVE AND FILE THE CITY OF GRAND TERRACE 2025 ANNUAL PROGRESS REPORT FOR THE 2021–2029 HOUSING ELEMENT; AND

AUTHORIZE STAFF TO SUBMIT THE ANNUAL PROGRESS REPORT TO

THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT (HCD) AND THE GOVERNOR’S OFFICE OF LAND USE

AND CLIMATE INNOVATION
2030 VISION STATEMENT:

This action supports the City’s 2030 Vision, specifically Goal 3 – Promote Economic Development and Goal 5 – Engage in Proactive Communication, by documenting housing activity, maintaining compliance with State housing requirements, and transparently reporting the City’s progress toward implementation of its adopted Housing Element.

BACKGROUND:

State law requires cities and counties to submit an Annual Progress Report each year outlining housing activity from the previous calendar year and progress made toward implementation of their adopted Housing Element. The report includes information on residential development applications, approvals, building permit activity, housing production, and implementation of Housing Element programs.

During calendar year 2025, the City of Grand Terrace continued making progress on several Housing Element programs, including advancement of the City’s housing element rezoning effort, adoption of zoning code amendments related to employee housing and ministerial single-family residential development, continued processing of accessory dwelling units, and updates to development review procedures and application materials.

The attached 2025 Annual Progress Report summarizes the City’s housing activity and implementation efforts for the 2025 reporting year and will be submitted to the California Department of Housing and Community Development and the Governor’s Office of Land Use and Climate Innovation in accordance with State law.

DISCUSSION:

The 2025 Annual Progress Report provides an overview of the City’s housing activity and the progress made on implementation of the City’s Housing Element during the 2025 calendar year.

Over the past year, the City continued moving several important housing-related efforts forward. This

included advancing the Housing Element rezoning program, adopting zoning code amendments related to employee housing and ministerial single-family residential development, continuing the review and approval of accessory dwelling units, and updating development applications and internal procedures to create a clearer and more efficient development review process.

The report also tracks residential development activity, including applications, approvals, building permits, and housing production, and provides an update on the City’s progress toward meeting its Regional Housing Needs Allocation (RHNA). Submission of the Annual Progress Report helps ensure the City remains in compliance with State housing requirements while continuing to move the goals and programs of the Housing Element forward.

ENVIRONMENTAL IMPACT:

This action is not a project subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(b)(5), as it involves organizational or administrative activities of government that will not result in a direct or reasonably foreseeable indirect physical change in the environment.

FISCAL IMPACT:

There is no fiscal impact associated with receiving and filing the Annual Progress Report. Preparation and submittal of the report is included within the Planning Division’s adopted operating budget.

Jurisidiction Name
Reporting Calendar Year
First Name
Last Name
Title Click here to download APR Instructions
Email
Phone
Street Address
City
Zipcode
v_03_11_26
Click here to add rows to a table. If you add too many
rows, you may select a cell in the row you wish to
remove and type ctrl + d.
22795 Barton Road
Grand Terrace
92313
Gabriel
Arguelles
Associate Planner
[email protected]
9099545176
Mailing Address
Please Start Here
General Information
2025
Grand Terrace
Contact Information
Optional: Click here to import last year's data. This is best used when the workbook is new and empty. You
will be prompted to pick an old workbook to import
from. Project and program data will be copied exactly
how it was entered in last year's form and must be
updated. If a project is no longer has any reportable
activity, you may delete the project by selecting a cell in the row and typing ctrl + d.

Annual Progress Report January 2020

Optional: This runs a macro which checks to ensure all required fields are filled out. The macro will create two files saved in the same directory this APR file is saved in. One file will be a copy of the APR with highlighted cells which require information. The other file will be list of the problematic cells, along with a description of the nature of the error.

Optional: Save before running. This copies data on Table A2, and creates another workbook with the table split across 4 tabs, each of which can fit onto a single page for easier printing.

Running this macro will remove the comments on the column headers, which contain the instructions. Do not save the APR file after running in order to preserve comments once it is reopened.

Optional: This macro identifies dates entered that occurred outside of the reporting year.

RHNA credit is only given for building permits issued during the reporting year.

Link to the online system: https://hcd.my.site.com/hcdconnect Toggles formatting that turns cells green/yellow/red based on data validation rules.

Submittal Instructions
Please save your file as Jurisdictionname2025 (no spaces). Example: the City of San Luis Obispo would save their file as SanLuisObispo2025 Housing Element Annual Progress Reports (APRs) forms and tables must be submitted to HCD and the Governor's Office of Planning and Research (OPR) on or before April 1 of each year for the prior calendar year; submit separate reports directly to both HCD and OPR pursuant to Government Code section 65400. There are two options for submitting APRs:

1. Online Annual Progress Reporting System - Please see the link to the online system to the left. This allows you to upload the completed APR form into directly into HCD’s database limiting the risk of errors. If you would like to use the online system, email [email protected] and HCD will send you the login information for your jurisdiction. Please note: Using the online system only provides the information to HCD. The APR must still be submitted to OPR. Their email address is [email protected].

2. Email - If you prefer to submit via email, you can complete the excel Annual Progress Report forms and submit to HCD at [email protected] and to OPR at [email protected]. Please send the Excel workbook, not a scanned or PDF copy of the tables.

Jurisdiction Grand Terrace
Reporting Year 2025
Housing Element Planning Period 6th Cycle
Current Year
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 0
Deed
Restricted 0
Non-Deed
Restricted 0
3 3
Units by Structure Type Entitled Permitted Completed
Single-family Attached 0 0 0
Single-family Detached 0 0 0
2 to 4 units per structure 0 0 0
5+ units per structure 0 0 0
Accessory Dwelling Unit 4 3 0
Mobile/Manufactured Home 0 0 0
Total 4 3 0
Infill Housing Developments and Infill Units Permitted # of Projects Units 3 3
0 0
6 7
5 0
0 0
Income Rental Ownership Total
Acutely Low 0 0 0
Extremely Low 0 0 0
Very Low 0 0 0
Low 0 0 0
Moderate 0 0 0
Above Moderate 0 0 0
Total 0 0 0
Streamlining Provisions Used - Permitted Units # of Projects Units SB 9 (2021) - Duplex in SF Zone 0 0
SB 9 (2021) - Residential Lot Split 0 0
AB 2011 (2022) 0 0
SB 6 (2022) 0 0
SMAP 0 0
Ministerial and Discretionary Applications # of Units
Ministerial 5 6
Discretionary 1 2
Density Bonus Applications and Units Permitted
Number of Applications Submitted Requesting a Density Bonus 0 Number of Units in Applications Submitted Requesting a Density Bonus 0 Number of Projects Permitted with a Density Bonus 0
Number of Units in Projects Permitted with a Density Bonus 0 Housing Element Programs Implemented and Sites Rezoned Count 1 0
Programs Implemented
Sites Rezoned to Accommodate the RHNA
(Jan. 1 - Dec. 31)
10/15/2021 - 10/15/2029
Units Constructed - SMAP (formerly SB 35 / 423) - Permits Number of SMAP Applications Approved
Very Low
Low
Moderate
Acutely Low
Extremely Low
Total Housing Applications Submitted:

Number of Proposed Units in All Applications Received:

Total Housing Units Approved:

Total Housing Units Disapproved:

Total Units
Housing Applications Summary
Use of Streamlined Ministerial Approval Process or SMAP (formerly SB 35 / 423) - Applications Number of SMAP Applications
Above Moderate
Indicated as Infill
Not Indicated as Infill
Building Permits Issued by Affordability Summary
Income Level

Jurisdiction Grand Terrace ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning
Period 6th Cycle 10/15/2021 - 10/15/2029
Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining Historic Sites
2 3 4 6 7 8 9 10
Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Date
Application
Submitted
(see
instructions)
Acutely LowIncome Deed
Restricted
Acutely LowIncome Non
Deed
Restricted
Extremely LowIncome Deed
Restricted
Extremely LowIncome Non
Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
Low-Income
Deed
Restricted
Low-Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Total

PROPOSED
Units by
Project
Total

APPROVED
Units by
project
Total

DISAPPROVE
D Units by
Project
Please select
state
streamlining
provision/s the
application was
submitted
pursuant to.

Is this project
located on a site
with an
associated
historical
designation as
outlined in
Government
Code Section
65400(a)(2)(N)
and reported on
Table L?
Did the
housing
development
application
seek incentives
or concessions
pursuant to
Government
Code section
65915?
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0 0 0 7 7 5 0 1167-241-07 1167-241-07 22144 De Berry
Street ADU ASA 25-01 ADU O1/24/2025
1 1 1 NONE No No
1167-271-11 1167-271-11 12559 Michigan ADU ASA 25-02 ADU O 4/16/2025 1 1 1 NONE No No 1167-261-71 1167-261-71 12454 Palika
Way ADU ASA 25-03 ADU O5/12/2025
1 1 1 NONE No No
1178-031-55 1178-031-55 22660 De Soto
Street ADU ASA 25-04 ADU O7/7/2025
1 1 1 NONE No No
0275-211-36 0275-211-36 N/A ADU ASA 25-06 ADU O 9/3/2025 1 1 1 NONE No No 0275-083-03 0275-083-03 11899 Rosedale
Avenue ADU ASA 25-07
ADU O
10/9/2026
1 1 1 NONE No No
0275-211-36 0275-211-36 N/A Duplex SA 25-11 2 to 4 R 9/3/2025 2 2 NONE No No 0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Table A
Cells in grey contain auto-calculation formulas
1 5
Project Identifier Unit Types Density Bonus Law
Applications
11 Housing Development Applications Submitted
Proposed Units - Affordability by Household Incomes

Jurisdiction Grand Terrace ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 10/15/2021 - 10/15/2029
Table A2
Streamlining Historic Sites Infill
Housing without
Financial Assistance or
Deed Restrictions
Term of
Affordability or
Deed Restriction
Notes
2 3 5 6 8 9 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Prior APN+ Current APN Street
Address Project Name+
Local
Jurisdiction
Tracking ID
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Acutely LowIncome Deed
Restricted
Acutely LowIncome Non
Deed
Restricted
Extremely
Low- Income
Deed
Restricted
Extremely
Low- Income
Non Deed
Restricted
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Entitlement
Date Approved
# of Units
issued
Entitlements
Acutely
LowIncome
Deed
Restricted
Acutely
LowIncome Non
Deed
Restricted
Extremely
LowIncome
Deed
Restricted
Extremely
LowIncome Non
Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome Non
Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Building
Permits Date
Issued
# of Units Issued
Building Permits
Acutely
LowIncome
Deed
Restricted
Acutely
LowIncome Non
Deed
Restricted
Extremely
LowIncome
Deed
Restricted
Extremely
LowIncome Non
Deed
Restricted
Very LowIncome
Deed
Restricted
Very LowIncome
Non Deed
Restricted
LowIncome
Deed
Restricted
LowIncome
Non Deed
Restricted
ModerateIncome
Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Certificates of
Occupancy or other
forms of readiness
(see instructions)
Date Issued
# of Units
issued
Certificates
of Occupancy
or other
forms of
readiness
Please select
the state
streamlining
provision the
project was

APPROVED
pursuant to.
(may select
multiple)
Is this project
located on a site
with an
associated
historical
designation as
outlined in
Government
Code Section
65400(a)(2)(N)
and reported on
Table L?
Infill Units?
Y/N+
Assistance
Programs for Each
Development
(may select
multiple - see
instructions)
Deed Restriction
Type
(may select
multiple - see
instructions)
For units affordable
without financial
assistance or deed
restrictions, explain how
the locality determined the
units were affordable
(see instructions)
Term of Affordability
or Deed Restriction
(years) (if affordable
in perpetuity enter
1000)+
Number of
Demolished/Destro
yed Units
Demolished
or Destroyed
Units
Demolished/
Destroyed
Units
Owner or
Renter
Total Density Bonus
Applied to the Project
(Percentage Increase in
Total Allowable Units or
Total Maximum Allowable
Residential Gross Floor
Area)
Number of Other
Incentives,
Concessions,
Waivers, or Other
Modifications Given
to the Project
(Excluding Parking
Waivers or Parking
Reductions)
List the
incentives,
concessions,
waivers, and
modifications
(Excluding
Parking Waivers
or Parking
Modifications)
Did the project
receive a reduction or
waiver of parking
standards? (Y/N)
Notes+
Summary Row : Start Data Entry Below 0 0 0 0 0 0 0 0 0 0 4 4 0 0 0 0 0 0 0 0 0 0 3 3 0 0 0 0 0 0 0 0 0 0 0 0 0 1167-241-07 1167-241-07 22144 De Berry
Street ADU ASA 25-01 ADU O 1 1/24/2025 1 1 6/8/2025 1 1 1/15/2026 1 NONE No Y Yes completed 1167-271-11 1167-271-11 12559 Michigan ADU ASA 25-02 ADU O 1 4/23/2026 1 1 12/12/2025 1 1 1 NONE No Y Yes Under construction 1167-261-71 1167-261-71 12454 Palika Way ADU ASA 25-03 ADU O 1 6/16/2025 1 1 8/25/2025 1 1 1 NONE No Y Yes pending final inspection
1178-031-55 1178-031-55 22660 De Soto
Street ADU ASA 25-04 ADU O 1 9/25/2025 1 1 2/17/2026 1 1 1 NONE No Y Yes Under construction 0275-083-03 0275-083-03 11899 Rosedale
Avenue ADU ASA 25-07 ADU O 1 11/5/2025 1 0 0 0 0 NONE No Y Yes Currently in Building Plan review 0 0 0
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Density Bonus
1 Unit Types Affordability by Household Incomes - Completed Entitlement Affordability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 4 7 10
Note: "+" indicates an optional field
Housing with Financial Assistance
and/or Deed Restrictions Project Identifier Demolished/Destroyed Units Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units

Jurisdiction Grand Terrace ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 10/15/2021 - 10/15/2029
Note: "+" indicates an optional field
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Jurisdiction Grand Terrace ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 10/15/2021 - 10/15/2029
Note: "+" indicates an optional field
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0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00

Jurisdiction Grand Terrace ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning
Period 6th Cycle 10/15/2021 - 10/15/2029
Note: "+" indicates an optional field
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
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0 00
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0 00
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0 00
0 00
0 00
0 00
0 00
0 00
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0 00
0 00
0 00
0 00
0 00
0 00
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0 00
0 00
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0 00
0 00
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0 00
0 00
0 00
0 00
0 00
0 00
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0 00
0 00
0 00
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0 00
0 00
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0 00
0 00
0 00
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0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00
0 00

Jurisdiction Grand Terrace ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 10/15/2021 - 10/15/2029
1 Projection
Period 3 4
RHNA Allocation
by Income Level
Projection
Period -
06/30/2021-
10/14/2021
2021 2022 2023 2024 2025 2026 2027 2028 2029
Total Units to
Date (all
years)
Total Remaining
RHNA by
Income Level
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - -
Above Moderate 243 1 1 1 1 4 3 - - - - 11 232
630
1 1 1 1 4 3 - - - - 11 619
Income Level
Very Low
- -
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.

Please contact HCD if your data is different than the material supplied here 2 Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
189
- Moderate
189
92 106
-
-
Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected].

Acutely Low - -
*For years prior to 2025, data on deed-restricted vs. non-deed restricted Extremely Low-Income units is approximated from whether the projects reported any deed-restricted Very Low-Income Units. If you wish to edit this historical data for accuracy or have any questions about the data, you may login to HCD's online APR system, or contact HCD staff at [email protected].

Total Units
*For jurisdictions that received RHNA determinations for the current cycle prior to the passage of AB 3093 (September 19, 2024):
- You were not allocated Acutely Low-Income and Extremely Low-Income RHNA targets, therefore the allocations in Field 1 are listed as "0" - If you wish to set your own targets in these income categories for informational purposes, contact HCD staff at [email protected]. - All Acutely Low-Income and Extremely Low-Income units reported during the cycle are counted towards Very-Low Income RHNA progress 106
Total RHNA
-
92 Low
*For years prior to 2025, Acutely Low-Income units are reported within the Extremely Low-Income category Please Note: Table B does not currently contain data from Table F or Table F2 for prior years. You may login to the APR system to see Table B that contains this data.

Extremely Low -

Jurisdiction Grand Terrace ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2025 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 6th Cycle 10/15/2021 - 10/15/2029
Date of
Rezone Rezone Type
2 4 5 6 7 9 10 11
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Date of
Rezone
Very LowIncome Low-Income ModerateIncome
Above
ModerateIncome
Rezone Type Parcel Size
(Acres)
General Plan
Designation Zoning
Minimum
Density
Allowed
Maximum
Density
Allowed
Realistic
Capacity Vacant/Nonvacant Description of Existing Uses
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Summary Row: Start Data Entry Below
3 8
Project Identifier RHNA Shortfall by Household Income Category Sites Description 1 Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss Law Table C

Jurisdiction Grand Terrace
Reporting Year 2025 (Jan. 1 - Dec. 31)
1 2 3 4 5 6 7 8 9
Name of Program Objective
Projected Completion
Date in Housing
Element
Applicable Cycle Status of Program
Implementation
Program
Implementation
Details
Quantified Outcomes:

Category
Quantified Outcomes:

Count Supporting Documents
Program 1 Rezone 97 acres 5/12/2026 6th Cycle In Progress 97 acres or 1 ordinance package Units 630 City Council Staff Report – ZCA 26-02 / GPA 26-01 / ZC 26-01 / E 26-03 Program 4 Ensure compliance with State Density
Bonus Law. 10/1/2026 6th Cycle In Progress
Staff began development of
administrative procedures,
application materials, and
internal review protocols for
implementation of State
Density Bonus Law in
anticipation of future multifamily development
applications.

Other 1
Program 8 Review and update reasonable
accommodation procedures. 11/1/2026 6th Cycle Not Yet Started Program scheduled for
implementation following
Housing Element
certification.

Other 0
Program 9 Promote ADU production and streamline
ADU review. 11/1/2026 6th Cycle In Progress
Staff continued ministerial
processing of ADUs,
updated application
materials, and began
development of permit-ready
ADU plan program.

Units 5
Program 9 Adopt permit-ready ADU plans 11/1/2026 6th Cycle In Progress Staff began evaluating
implementation strategies for
a city-sponsored permitready ADU plan program.

Other 1
Program 11 – Zoning Code
Cleanup
A Zoning Ordinance amendment will be
processed in 2024 to update City
regulations for
emergency shelters, transitional and
supportive housing, residential care
facilities, and low
barrier navigation centers consistent with
current state law. T
12/1/2026 6th Cycle Not Yet Started
The City initiated and
processed multiple zoning
code amendments to
remove governmental
constraints and maintain
consistency with State
housing law, including AB 98
compliance, small lot
subdivision standards,
administrative process
improvements, and zoning
code updates associated
with Housing Element
implementation.

Other 3

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583

ROGRAM 12 - Employee
Housing
updating the Municipal Code to ensure
compliance with State employee housing
requirements and remove barriers to
employee housing opportunities.
12/1/2026 6th Cycle In Progress
The City will completed
Program 12 through
adoption of Zoning Code
Amendment 26-01, updating
the Municipal Code to
ensure compliance with
State employee housing
requirements and remove
barriers to employee
housing opportunities. City
Council Adoption meeting is
scheduled on May 12th,
2026
Other1
Program 16 – Ministerial
Processing of SingleFamily Homes
ministerial review procedures for qualifying
single-family residential development 3/10/2026 6th Cycle Completed The City completed Program
16 through adoption of
zoning code amendments
establishing ministerial
review procedures for
qualifying single-family
residential development.

Following adoption, staff
processed three (3) custom
single-family homes utilizing
the updated ministerial
review procedures.

Units3

Jurisdiction Grand Terrace ANNUAL ELEMENT PROGRESS REPORT Reporting
Period 2025
(Jan. 1 - Dec.

Planning 31) Housing Element Implementation
Period 6th Cycle 10/15/2021 - 10/15/2029
Description of
Commercial
Development Bonus
Commercial Development Bonus
Date Approved
3 4
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income
Description of
Commercial
Development Bonus
Commercial Development Bonus
Date Approved
Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation
formulas
(CCR Title 25 §6202)
Annual Progress Report January 2020

Jurisdiction Grand Terrace ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 6th Cycle 10/15/2021 - 10/15/2029
The description should adequately document
how each unit complies with subsection (c) of
Government Code Section 65583.1+.

For detailed reporting requirements, see the
chcklist here:

Extremely LowIncome+Very LowIncome+
Low-Income+TOTAL UNITS+
Extremely LowIncome+Very LowIncome+
Low-Income+
TOTAL
UNITS+
https://www.hcd.ca.gov/communitydevelopment/docs/adequate-sites-checklist.pdf Rehabilitation Activity
Preservation of Units At-Risk
Acquisition of Units
Mobilehome Park Preservation
Total Units by Income
Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.

Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD at [email protected] and we will unlock the form which enable you to populate these fields.

Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020

Jurisdiction Grand Terrace
Reporting
Period 2025 (Jan. 1 - Dec. 31)
Planning
Period 6th Cycle 10/15/2021 - 10/15/2029
Prior APN+ Current APN Street Address Project Name+
Summary Row: Start Data Entry Below
Above M
For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the planning a for the unit. Before a
Project Identifier
1

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
2 3
Local
Jurisdiction
Tracking ID
Unit
Category
(2 to 4,5+)
Tenure
R=Renter
Very LowIncome Deed
Restricted
Very LowIncome
Non Deed
Restricted
0 0
Table F2
Above Moderate Income Units Converted to Moderate Income Pursuant to ng need allocation, the planning agency may include the number of units in an existing multifamily building that were for the unit. Before adding information to this table, please ensure housing developments meet the req Unit Types
4 Affordability by Household I

Note: "+" indicates an
optional field
Cells in grey contain auto-calculation formulas
Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
0 0 0 0 0
Table F2
ted to Moderate Income Pursuant to Government Code section 65400.2 ts in an existing multifamily building that were converted to deed-restricted rental housing for moderate-income hous ensure housing developments meet the requirements described in Government Code 65400.2(b). 4 Affordability by Household Incomes After Conversion

Notes
6 Total Moderate Income
Units Converted from
Above Moderate
Date
Converted Notes
0 oderate-income households by the imposition of affordability covenants and restrictions 2(b).
5 Units credited toward Moderate
Income RHNA

Jurisdiction Grand Terrace
Reporting
Period 2025
(Jan. 1 - Dec.

Planning 31)
Period 6th Cycle 10/15/2021 - 10/15/2029 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
2 3 4
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Realistic
Capacity
Identified in the
Housing
Element
Entity to whom the site
transferred Intended Use for Site
1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting

Jurisdiction Grand Terrace
Reporting
Period 2025
(Jan. 1 - Dec.
31)
1 2 3 4
APN Street Address/Intersection Existing Use Number of
Units
NOTE: This table must conta
of ALL surplus/excess lands
jurisdiction owns
Summary Row: Start Data Entry Below
Parcel Identifier

ANNUAL ELEMENT PROGRESS REPO
Housing Element Implementation
Table H
Locally Owned Surplus Sites

Note: "+" indicates an optional field
Cells in grey contain auto-calculation
formulas
Designation Size Notes
5 6 7
Surplus
Designation
Parcel Size (in
acres) Notes
E: This table must contain an inventory
LL surplus/excess lands the reporting
diction owns

NT PROGRESS REPORT
ment Implementation
Table H
wned Surplus Sites

Jurisdiction Grand Terrace ANNUAL ELEMENT PROGRESS REPORT Reporting
Period 2025
(Jan. 1 - Dec.
31) Housing Element Implementation
Planning
Period 6th Cycle 10/15/2021 - 10/15/2029
Project Type Date
2 3
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Unit Category
(SH - Student Housing) Date
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed
Restricted
Above
ModerateIncome
Summary Row: Start Data Entry Below
Note: "+" indicates a
Cells in grey contain auto-
Table J
Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Project Identifier Units (Beds/Student Capacity) Approved 1 4
NOTE: STUDENT HOUSING WITH DENSITY BONUS
ONLY. This table only needs to be completed if there
were student housing projects WITH a density bonus
approved pursuant to Government Code65915(b)(1)(F)
Annual Progress Report January 2020

Jurisdiction Grand Terrace ANNUAL ELEM
Reporting Period 2025 (Jan. 1 - Dec. 31)
Planning Period 6th Cycle 10/15/2021 - 10/15/2029
T
Local governments are required to inform HCD about any local tenant preference ordinance the local go Code 7061 (SB 649, 2022, Cortese). Effective January 1, 2023, local governments adopting a tenant pre more than 90 d
Does the Jurisdiction have a local tenant preference policy? If the jurisdiction has a local tenant preference policy, provide a link to the jurisdiction's webpage containing authorizing local ordinance and supporting materials.

Notes

ANNUAL ELEMENT PROGRESS REPORT
Table K
Tenant Preference Policy
e ordinance the local government maintains when the jurisdiction submits their annual progress report on housing a ts adopting a tenant preference are required to create a webpage on their internet website containing authorizing loc more than 90 days after the ordinance becomes operational.

PROGRESS REPORT
Table K
reference Policy
maintains when the jurisdiction submits their annual progress report on housing approvals and production, per Gove e required to create a webpage on their internet website containing authorizing local ordinance and supporting mater e ordinance becomes operational.

on housing approvals and production, per Government
uthorizing local ordinance and supporting materials, no

Jurisdiction Grand Terrace
Reporting
Period 2025
(Jan. 1 - Dec.
31)
APN Street Address/Intersection Date of
Designation
Designation
Level
Summary Row:

NOTE: This table needs to be
your jurisdiction that were ne
Local register of historic plac
none, leave blank.

ANNUAL ELEMENT PROGRES
Housing Element Impleme
Table L
Historical Resources
Parcel Identifier
1 Designation
2

Size
3 Historic Site
Period
Areas of
Significance
Parcel Size (in
acres)
This table needs to be completed with any sites within
risdiction that were newly added to a National, State, or egister of historic places within the reporting year. If eave blank.

LEMENT PROGRESS REPORT
ng Element Implementation
Table L
Historical Resources
Designation
2

Note: "+" indicates an optional field
Cells in grey contain auto-calculation
formulas
Notes
4 Notes

Jurisdiction Grand Terrace
Reporting Year 2025
Total Award Amount
Task $ Amount Awarded
Summary of entitlements, building permits, and certificates of occupancy (auto-populated from Table A2) Lo
Please update the status of the proposed uses listed in the entity’s application for funding and the corresp $
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Acutely Low
Extremely Low

Acutely Low
Extremely Low
Acutely Low
Extremely Low
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate
Moderate
Above Moderate
Total Units
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low

(Jan. 1 - Dec. 31)
Total award amount is a
$ Cumulative Reimbursement Requested
and certificates of occupancy (auto-populated from Table A2) Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
4 ANNUAL ELEMENT PROGRESS R
Local Early Action Planning (LEAP)
(CCR Title 25 §6202)
es listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdicti -
eted Entitlement Issued by Affordability Summary
Income Level

4 Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
3 3
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
0 0
ate of Occupancy Issued by Affordability Summary
Income Level
lding Permits Issued by Affordability Summary
Income Level

otal award amount is auto-populated based on amounts entered in rows 15-26.

Other
Funding

PROGRESS REPORT
nning (LEAP) Reporting
e 25 §6202)
the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 505 Task Status

Notes
ed in Section 50515.02 or 50515.03, as applicable.

AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: Approval of Amendment No. 2 to the Agreement for Contract Services with Revenue & Cost Specialists for Development Impact Fee Implementation Services, Including a Storm Drainage Fee Nexus Study, Fee Program Revisions, and Staff Training
PRESENTED BY: Gabriel Arguelles, Associate Planner, Jessica Lambarena, Development Services Coordinator
RECOMMENDATION: APPROVE AMENDMENT NO. 2 TO THE AGREEMENT FOR CONTRACT

SERVICES WITH REVENUE & COST SPECIALISTS TO EXTEND THE
AGREEMENT TERM THROUGH AUGUST 31, 2026, EXPAND THE SCOPE

OF SERVICES TO INCLUDE A STORM DRAINAGE FEE NEXUS STUDY,

DEVELOPMENT IMPACT FEE PROGRAM REVISIONS, AND A

DEVELOPMENT IMPACT FEE ADMINISTRATION WORKSHOP, AND
INCREASE THE CONTRACT AMOUNT BY $8,000, FOR A REVISED NOTTO-EXCEED TOTAL OF $50,600; AND AUTHORIZE THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2,
SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM; AND
APPROVE AN APPROPRIATION IN THE AMOUNT OF $8,000 TO FUND THE ADDITIONAL CONSULTANT SERVICES; AND

DETERMINE THAT THE PROPOSED ACTION IS EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA GUIDELINES SECTION 15306 – INFORMATION COLLECTION
(CLASS 6 CATEGORICAL EXEMPTION).
2030 VISION STATEMENT:

This staff report supports the City of Grand Terrace 2030 Vision Implementation Plan:

Goal #1: Ensure Our Fiscal Viability by reviewing and updating the City’s development impact fee structure to ensure appropriate cost recovery and long-term financial sustainability; and Goal #3: Promote Economic Development by ensuring the City's fees are structured in a way that supports responsible growth and infrastructure development without placing undue burdens on new or existing businesses.

BACKGROUND:

On June 25, 2024, the City entered into an agreement with Revenue & Cost Specialists (RCS) in the amount of $39,600 to prepare a Comprehensive Development Impact Fee (DIF) Study. The purpose of the study was to review and update the City’s development impact fee program, support long-term fiscal sustainability, and ensure compliance with the Mitigation Fee Act and Assembly Bill 602 (AB

602). The original scope included data collection, nexus analysis, infrastructure cost evaluation, and preparation of updated fee recommendations.

On October 14, 2025, the City Council approved Amendment No. 1 to the agreement, which extended the contract term and added scope to support completion of the study, including a fiscal impact analysis, development feasibility analysis, and preparation of materials for City Council consideration. Amendment No. 1 increased the contract amount by $3,000, for a revised total of $42,600.

Since that time, the City completed and adopted the 2026–27 Development Impact Fee Nexus Study and updated Development Impact Fee schedule, modernizing the City’s fee program and establishing updated fees supported by current nexus findings and AB 602-compliant methodologies. The updated program provides an important tool to help ensure new development contributes its fair share toward growth-related infrastructure and facilities.

With the fee study now adopted, additional follow-up work has been identified to support implementation of the program, including preparation of a Storm Drainage Fee Nexus Study, targeted refinements to the fee program, and staff training related to development impact fee administration and compliance.

Amendment No. 2 is intended to support this next phase of work by extending the agreement term and authorizing additional consultant services needed to implement and administer the City’s updated fee program.

DISCUSSION:

The proposed Amendment No. 2 extends the agreement term through August 31, 2026 and expands the scope of work to include additional consultant services needed to support implementation of the City’s recently adopted Development Impact Fee program.

The expanded scope of work includes the following tasks:
• Preparation of a Storm Drainage Fee Nexus Study to establish a defensible fee methodology for storm drainage facilities and support the City’s broader infrastructure financing efforts • Development Impact Fee Program Revisions, including targeted updates to the adopted fee program, such as adding a commercial lodging land use category and revisions to the community center fee component.
• Development Impact Fee Administration Workshop for City staff, focused on implementation of the Mitigation Fee Act (Government Code Section 66000 et seq.), AB 1600 annual reporting requirements, fund administration, eligible fee expenditures, and related best practices.

This amendment builds on the work already completed through the City’s adopted Development Impact Fee update and shifts the focus from developing the fee program to implementing and administering it.

The additional storm drainage analysis will help the City continue evaluating infrastructure funding needs associated with growth, while the fee program refinements will help ensure the adopted fee schedule remains practical and responsive as implementation moves forward.

The staff training component is also intended to support consistent administration of the fee program

and provide guidance on ongoing compliance requirements under the Mitigation Fee Act.

From a broader fiscal perspective, this work supports the City’s efforts to strengthen infrastructure financing tools and ensure growth contributes its fair share toward public facility needs. It also helps reduce reliance on the General Fund for growth-related improvements and supports the City’s longterm fiscal sustainability goals.

Approval of Amendment No. 2 will allow the City to move forward with these next implementation steps and continue building on the Development Impact Fee program recently adopted by the City Council.

CONCLUSION:

Amendment No. 2 represents the next step in implementing the City’s recently adopted Development Impact Fee program. The additional work proposed through this amendment including the Storm Drainage Fee Nexus Study, targeted fee program refinements, and staff training. This will help support ongoing administration of the program and strengthen the City’s broader infrastructure and financing efforts.

This work will help ensure the City’s fee programs remain practical, legally defensible, and responsive to future growth and infrastructure needs, while supporting long-term fiscal sustainability.

The additional funding will allow the City to complete these implementation tasks and continue building on the work already completed through the Development Impact Fee update. For these reasons, staff recommends the City Council approve Amendment No. 2, authorize the City Manager to execute the amendment, and approve the requested appropriation.

ENVIRONMENTAL IMPACT:

The proposed action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15306 (Class 6 – Information Collection), which applies to basic data collection, research, and resource evaluation activities that do not result in a physical change to the environment.

The proposed amendment involves professional consulting services related to a storm drainage fee nexus study, development impact fee program refinements, and staff training regarding fee administration and implementation. These activities are administrative and analytical in nature and do not authorize, approve, or result in any physical development or other environmental impacts.

Therefore, no further environmental review is required.

FISCAL IMPACT:

The original agreement with Revenue & Cost Specialists (RCS) was approved on June 25, 2024, in the amount of $39,600. Amendment No. 1 added $3,000, increasing the contract amount to $42,600.

The proposed Amendment No. 2 adds $8,000 for additional consultant services related to the Storm Drainage Fee Nexus Study, Development Impact Fee Program Revisions, and the Development Impact Fee Administration Workshop, for a revised not-to-exceed contract amount of $50,600.

An appropriation in the amount of $8,000 is requested from the General Fund to fund the additional consultant services associated with this amendment. The expenditure will be coded to account 10- 172-250-000-000.

In the long term, this work is intended to support implementation of the City’s adopted fee program, strengthen infrastructure financing tools, and help reduce reliance on General Fund resources to support growth-related capital improvements.

ATTACHMENTS:

Attachment 1 – Amendment No. 2 to Agreement for Contract Services with Revenue & Cost Specialists
Attachment 2 – Amendment No. 1 to Agreement for Contract Services (Development Impact Fee Study)
Attachment 3 – Original Agreement for Contract Services dated June 25, 2024

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AMENDMENT NO. 2

TO CONTRACT SERVICES AGREEMENT
This AMENDMENT NO. 2 TO THE CONTRACT SERVICES AGREEMENT (“Amendment”) is made by and between the CITY OF GRAND TERRACE, a California municipal corporation (“City”), and REVENUE & COST SPECIALISTS (“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 dated June 25, 2024 (“Agreement”), whereby Consultant agreed to provide the calculation and textual support of a new Development Impact Fee Calculation and Nexus Report for a Development Impact Fee Study with a total compensation (“Contract Sum”) of Thirty-Nine Thousand Six Hundred Dollars ($39,600) and for a term of one (1) year.

B. City and Consultant entered into an amendment to the Agreement dated October 14, 2025 (“Amendment No. 1”), whereby the Agreement was made effective retroactive to June 26, 2025, the term was extended through January 9, 2026, the total compensation was increased by Three Thousand Dollars ($3,000) to a not-to-exceed Contract Sum of Forty-Two Thousand Six Hundred Dollars ($42,600), and the Scope of Services was revised to include preparation of a Feasibility Analysis and additional services related to the Development Impact Fee Study (“Amendment No. 1 Services”).

C. Following adoption of the Development Impact Fee Nexus Study, City and Consultant now desire to amend the Agreement (“Amendment No. 2”), effective retroactive to January 10, 2026, immediately following the expiration of Amendment No. 1 on January 9, 2026, to (i) extend the term of the Agreement to August 31, 2026, (ii) increase the total compensation by Eight Thousand Dollars ($8,000) for the Storm Drainage Fee Nexus Study and Fee Program Revisions ($5,000) and DIF Administrative Workshop ($3,000) for a total Contract Sum of Fifty Thousand Six Hundred Dollars ($50,600), and (iii) revise the Scope of Services to further expand the scope of services to include a standalone Storm Drainage Fee study, revisions to the adopted fee program, and a staff training workshop (“Amendment No. 2 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 3.4 (Term) is hereby amended as follows:
“Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but no later than January 9, 2026 August 31, 2026, except as otherwise provided in the Schedule of Performance (Exhibit “D”).”

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b. 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 compensation, including reimbursement for actual expenses shall not exceed Forty-Two Thousand Six Hundred Dollars ($42,600) Fifty Thousand Six Hundred Dollars (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8.
c. Exhibit “A” Scope of Services is hereby amended to include the following additional tasks:
• Storm Drainage Fee Nexus Study: Preparation of a standalone Development Impact Fee Calculation and Nexus Report for the Storm Drainage Collection System, including calculation of a defensible fee schedule, demand analysis, and all supporting nexus documentation required for adoption under the Mitigation Fee Act (Government Code §66000 et seq.) and AB 602. • Fee Program Revisions: Addition of a Commercial Lodging land use category to the adopted Development Impact Fee schedule, and revision to the adopted Community Center fee calculation.
• DIF Administration Workshop: Preparation and delivery of a half-day staff training workshop on Development Impact Fee administration and expenditure in compliance with the Mitigation Fee Act (Government Code §66000 et seq.) and AB 1600 annual reporting requirements. Topics include the legal framework governing DIF expenditures, eligible versus ineligible uses of fee revenue, fund accounting and segregation requirements, five-year findings obligations, and best practices for CIP project documentation. The session will be interactive and tailored to the City’s adopted fee programs. The City of Loma Linda will participate jointly in the workshop.
d. Section I of Exhibit “C” Schedule of Compensation is hereby amended as follows:

I. Consultant shall perform the following tasks at the following rates:

Task Milestones/Deliverables Hours Cost
Preliminary Research 40 $2,800
Identify Land-Use
Build Out
Land Use Database 40 $6,000

01247.0001 2122451.1
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Identify
Current/Future Needs
Schedule of Capital Costs 50 $7,500
Mathematical Nexus
Calculation
Spreadsheets of Calculations 54 $8,100
Textual Nexus Draft & Final DIF Reports 64 $9,600
Public Meetings Presentations (2) 16 $2,400
Feasibility Analysis Presentation/Report $3,000
Storm Drainage Fee
Nexus Study and Fee
Program Revisions
Preparation of a storm drainage
fee nexus study, fee schedule
updates, revisions to the
adopted fee program (including
a lodging land use category and
community center fee
adjustment), and supporting
documentation for
implementation/adoption
$5,000
Workshops DIF Administration Workshop $3,000
TOTAL PROJECT COST 264 $42,600
$50,600
e. Section IV of Exhibit “C” Schedule of Compensation is hereby amended as follows:
“IV. The total compensation for the Services shall not exceed $42,600 $50,600 as provided in Section 2.1 of this Agreement.”
f. To the extent there is any conflict between the amended Schedule of Compensation set forth in Exhibit “C” and any budget or compensation information contained in Exhibit “A” or any other attachment to the Agreement, the amended Exhibit “C” shall control.
g. Section II of Exhibit “D” Schedule of Performance is hereby amended as follows:

II. Consultant shall deliver the following tangible work products to the City by the following dates:

Project Timeline Dates
Land-use Database Compilation June 2024
Determine Infrastructure LOS June 2024
Discuss Desired Projects w/Staff July/August 2024
Review Project Costs & Descriptions July/August 2024

01247.0001 2122451.1
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Review Demand Drivers (Nexus) July/August 2024
Apply Nexus Distribution Factors September 2024
Review Draft DIF Report with Staff September 2024
Prepare Final DIF Report September/October 2024
Present DIF Study to Council November 2024
Land-use Database Compilation October 2025
Determine Infrastructure LOS October 2025
Discuss Desired Projects w/Staff October 2025
Review Project Costs & Descriptions October 2025
Review Demand Drivers (Nexus) October 2025
Apply Nexus Distribution Factors November 2025
Review Draft DIF Report with Staff November 2025
Prepare Final DIF Report November/December
2025
Present DIF Study to Council January 2026
Storm Drainage Fee Nexus Study / Fee
Program Revisions
February-July 2026
Draft Review / Revisions June-July 2026
Implementation and Adoption July 2026
Training Workshop June 30, 2026
Final Deliverables / Project Completion August 2026

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.

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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, 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]

01247.0001 2122451.1
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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:

REVENUE & COST SPECIALISTS
By:
______________________________________________
Name: Eric Johnson
Title: President
Email Address: [email protected]
By:
______________________________________________
Name: Gergory Brown
Title: Vice President
Email Address: [email protected]
Address: 1519 E Chapman Ave., Ste C
Fullerton, CA 92831
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.

AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: 2026-27 Landscape & Lighting Assessment District 89-1 Public Hearing Intent
PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GRAND TERRACE, CALIFORNIA, PURSUANT TO THE LANDSCAPING
AND LIGHTING ACT OF 1972, INITIATING PROCEEDINGS TO LEVY ANNUAL ASSESSMENTS FOR THE 2026-27 FISCAL YEAR FOR THE

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

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

ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GRAND TERRACE, CALIFORNIA, GIVING PRELIMINARY APPROVAL OF

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

OF ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR
2026-27; AND

ADOPT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF GRAND TERRACE, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JUNE 19, 2026, ON
LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND

TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED THERETO
FOR FISCAL YEAR 2026-27
2030 VISION STATEMENT:

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

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

• Zone 3: Tract 14471 - Oriole St.
• Zone 4: Tract 17766 – Greenbriar on Mt. Vernon
• Zone 5: Tract 18793 – Pico St.
• Zone 6: Tract 18071 – Jaden Ct.
• Zone 7: Tract 18604 – Van Buren on Tesoro Ct.

Together, these seven zones make up the current Assessment District 89-1, with each zone assessed independently based on the landscaping and lighting improvements within its boundaries.

DISCUSSION:

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

For Fiscal Year 2026-27, staff has reviewed expenditures and, based on the Engineer’s estimate, determined that overall maintenance costs will decrease. As a result, assessment amounts for the District will also be reduced compared to the previous year.

ENVIRONMENTAL IMPACT:

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

FISCAL IMPACT:

The amount to be assessed for the Assessment District for FY 2026–27 is $28,571.55, which will be fully reimbursed through property tax collections administered by San Bernardino County.

RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, GIVING PRELIMINARY APPROVAL OF THE

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

OF ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL YEAR
2026/2027
WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, (hereinafter referred to as the “City”) pursuant to the provisions of Division 15, Part 2 of the Streets and Highways Code of the State of California, did, by previous Resolution, order the preparation of an Engineer's Report (hereinafter referred to as the “Report”) for the annual levy of assessments, consisting of plans and specifications, an estimate of the cost, a diagram of the district, and an assessment relating to what is now known and designated as:

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

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

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

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

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

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

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

PASSED, APPROVED AND ADOPTED this day of 12th May 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF GRAND TERRACE )
I, Daysi Alcocer, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2026- ______ was duly passed, approved, and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 12th day of May 2026, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Executed this 12th day of May 2026, at Grand Terrace, California. _________________________________
Daysi Alcocer
City Clerk for the City of Grand Terrace

[SEAL]

City of Grand Terrace
Landscaping and Lighting
Assessment District No. 89-1
2026/2027 ENGINEER’S REPORT
Intent Meeting: May 12, 2026
Public Hearing: June 9, 2026

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

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

Landscaping and Lighting Assessment District No. 89-1
City of Grand Terrace,
County of San Bernardino, State of California
This Report describes the improvements, budgets, parcels and assessments to be levied for Fiscal Year 2026/2027. Reference is hereby made to the San Bernardino County Assessor’s maps for a detailed description of the lines and dimensions of the parcels within the District.

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

Dated this ____________ day of ______________, 2026.

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

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

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

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

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

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

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

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

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

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

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

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 2
same time as payments are made for property taxes for each property.

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

This Engineer’s Report (the “Report”) is presented for the purpose of levy of annual assessment to the above-described properties for the purpose of maintaining the lighting and landscaping during the Fiscal Year 2026/2027.

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

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

This Report consists of the following sections:

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

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

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

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Section IV
Assessment Diagrams: A diagram showing the boundaries of the District is provided in this Report and includes all parcels that receive special benefits from the improvements.

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

Section V
Assessment Roll: A listing of the proposed assessment amount for each parcel within the District. The proposed assessment amount for each parcel is based on the parcel’s calculated proportional special benefit as outlined in the method of apportionment and proposed assessment rate established in the District Budget. These assessment amounts represent the assessments proposed to be levied and collected on the County Tax Rolls for Fiscal Year 2026/2027.

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

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Incidental expenses associated with the improvements including, but not limited to:
 The cost of preparation of the Report, including plans, specifications, estimates, diagram, and assessment;
 The costs of printing, advertising, and the publishing, posting, and mailing of notices;
 Compensation payable to the County for collection of assessments;  Compensation of any engineer or attorney employed to render services;  Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
 Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.
 Costs associated with any elections held for the approval of a new or increased assessment.

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

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

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

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

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 5
intersections, in medians, parkways and adjacent to certain public facilities in and along certain streets, right-of-ways and designated lots.

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

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

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

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

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

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

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

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

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

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

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

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 7
Zone 5 – Tract 18793
(a) Landscaping
Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District. (b) Lighting
Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District.

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

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

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

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

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 8
Zone 7 – Tract 18604
(a) Landscaping
Landscaping, planting, shrubbery, trees, turf, irrigation systems, monuments, hardscapes, walls, fencing and appurtenant facilities in public right-of-ways and easements within the proposed boundary of the District.

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

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

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

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 9
The following formula is used to arrive at the levy amount for each parcel within each Zone:

Levy per EBU (rate) x Parcel’s EBU = Parcel Levy Amount Proposition 218 Benefit Analysis
The costs of the proposed improvements for Fiscal Year 2026/2027 have been identified and allocated to properties within the District based on special benefit. The improvements provided by this District and for which properties are assessed are public street lighting and landscaping improvements. These improvements generally were installed in connection with the development of the properties within the District. Article XIIID Section 2(d) defines District as follows:
“District means an area determined by an agency to contain all parcels which will receive a special benefit from a proposed public improvement or property-related service”; Article XIIID Section 2(i) defines Special benefit as follows:
“Special benefit” means a particular and distinct benefit over, and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute “special benefit.” Article XIIID Section 4(a) defines proportional special benefit assessments as follows:
“An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.” Benefit Analysis
Special Benefit
The special benefits properties within the District will receive from the proposed improvements include, but are not limited to:
 Improved aesthetic appeal of nearby properties providing a positive representation of the area and properties.
 Enhanced adaptation of adequate green space, trees, and amenities within the urban environment.

Total Balance to Levy = Levy per EBU
Total EBU

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 10  Increased sense of pride in ownership of properties within the District resulting from their association with well-maintained improvements.  Enhanced quality of life and working environment within the area that is promoted by well-maintained landscaped areas and amenities.  Reduced criminal activity and property-related crimes (especially vandalism) against properties in the District through well-maintained surroundings and amenities within public areas.
 Increased social opportunities and leisure activities for customer’s residents and families, provided by a well-maintained neighborhood destination place for relaxation, socializing, and entertainment that is within easy walking distance.
 Enhanced environmental quality of the parcels by moderating temperatures, providing oxygenation and attenuating noise.

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

General Benefit
In the absence of a special funding District, the City would typically provide only weed abatement and erosion control services for landscaped areas. The cost to provide this baseline level of service is approximately $0.01 per square foot for landscape areas that require maintenance. Zone 1 – Tract 13364 has approximately 29,100 square feet of landscape space, Zone 2 – Tract 14264 has no landscaping area that the City maintains and Zone 3 – Tract 14471 has approximately 9,045 square feet of landscape space, Zone 4 – Tract 17766 has approximately 3,856 square feet of landscaped space, Zone 5 – Tract 18793 has approximately 4,668 square feet of landscaped space, Zone 6 – Tract 18071 has approximately 61,750 square feet of landscaped space, Zone 7 – Tract 18604 has approximately 3,239 square feet of landscaped space. The proposed budgets for Fiscal Year 2026/2027 show the general benefit amount which will be deducted from the cost of maintenance to arrive at a net special benefit assessment rate.

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 11 Assessment Methodology
This District was formed to establish and provide for the improvements that enhance the presentation of the surrounding properties and developments. These improvements will directly benefit the parcels to be assessed within the District. The assessments and method of apportionment is based on the premise that the assessments will be used to construct and install landscape and lighting improvements within the existing District as well as provide for the annual maintenance of those improvements, and the assessment revenues generated by District will be used solely for such purposes.

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

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

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

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

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

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

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 12 approved, as well as the approval of an assessment range formula.

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

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

Each fiscal year, the Maximum Assessment will be recalculated, and a new Maximum Assessment established. Currently, the District uses the Annual Riverside-San Bernardino-Ontario CPI index to compute the CPI difference each year. For Fiscal Year 2026/2027, the percentage difference is 3.281%. Therefore, the Maximum Assessment will increase by 5.281%.

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

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 13 Section III. ESTIMATE OF IMPROVEMENT COSTS
In accordance with Streets and Highways Code Section 22660(a), the City Council has determined that the estimated cost of certain proposed improvements, described in Section 22525, subdivisions (a) through (d), are greater than can conveniently be raised from a single assessment, and, as a result, shall be collected in installments and held in a reserve account. In particular, Zone 1, Zone 3, Zone 4, Zone 5, Zone 6, and Zone 7 require trimming and pruning landscaping services that are proposed to be performed every five years. The proposed assessment includes a budgeted amount for trimming and pruning to collect for these services.

The following outlines the budget to fund the District improvements based on the improvements to be maintained and the associated incidental expenses for Fiscal Year 2026/2027, resulting in the proportional assessments calculated for each parcel that will be applied to the County Tax Rolls for Fiscal Year 2026/2027. The cost of maintaining improvements for Fiscal Year 2026/2027 are summarized as follows:

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 14 Zone 1 Tract 13364 – Canal
Budget Item Fiscal Year 2026/27
Current Assessment
Energy Costs – Street Lighting $920.00
Water Supply 13,000.00
Professional Services 680.00
Contract Maintenance 2,600.00
Engineering 500.00
Annual Costs Total $17,700.00
General Benefit - Collection/(Contribution) (291.00)
General Fund - Collection/(Contribution) (11,762.40)
Balance to Levy $5,646.60
Fiscal Year 2026/27 Assessment per Parcel $282.33
Fiscal Year 2026/27 Max Assessment per Parcel $282.3300 Fiscal Year 2025/26 Max Assessment per Parcel $282.3300 Number of Parcels (EBU) 20

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 15 Zone 2 Tract 14264 – Forrest City Phase II
Budget Item Fiscal Year 2026/27
Current Assessment
Energy Costs – Street Lighting $1,100.00
Professional Services 670.00
Engineering 500.00
Annual Costs Total $2,270.00
General Benefit - Collection/(Contribution)* 0.00
General Fund - Collection/(Contribution) (854.36)
Balance to Levy $1,415.64
Fiscal Year 2026/27 Assessment per Parcel $1,415.64
Fiscal Year 2026/27 Max Assessment per Parcel $1,415.6400 Fiscal Year 2025/26 Max Assessment per Parcel $1,415.6400 Number of Parcels (EBU) 1
*Parcels under Zone 2 receive no General Benefit, because there is no landscaping.

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 16 Zone 3 Tract 14471 – Oriole
Budget Item Fiscal Year 2026/27
Current Assessment
Energy Costs – Street Lighting $780.00
Water Supply 1,200.00
Contractual Services 960.00
Engineering 500.00
Annual Costs Total $3,440.00
General Benefit - Collection/(Contribution) (90.45)
Reserve Fund - Collection/(Contribution) 0.00
General Fund - Collection/(Contribution) 0.00
Balance to Levy $3,349.55
Fiscal Year 2026/27 Assessment per Parcel $197.03
Fiscal Year 2026/27 Max Assessment per Parcel $309.9500 Fiscal Year 2025/26 Max Assessment per Parcel $309.9500 Number of Parcels (EBU) 17

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 17 Zone 4 Tract 17766 – Greenbriar
Budget Item Fiscal Year 2026/27
Current Assessment
Energy Costs – Street Lighting $195.00
Professional Services 500.00
Engineering 500.00
Annual Costs Total $1,195.00
General Benefit - Collection/(Contribution) (38.56)
HOA - Collection/(Contribution) 0.00
Reserve Fund - Collection/(Contribution) 0.00
General Fund - Collection/(Contribution) 0.00
Balance to Levy $1,156.44
Fiscal Year 2026/27 Assessment per Parcel $33.04
Fiscal Year 2026/27 Max Assessment per Parcel $242.5966 Fiscal Year 2025/26 Max Assessment per Parcel $230.4285 Number of Parcels (EBU) 35

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 18 Zone 5 Tract 18793 – Palomino
Budget Item Fiscal Year 2026/27
Current Assessment
Energy Costs – Street Lighting $840.00
Professional Services 0.00
Contractual Services 200.00
Engineering 500.00
Annual Costs Total $1,540.00
General Benefit - Collection/(Contribution) (46.68)
Reserve Fund - Collection/(Contribution) 0.00
General Fund - Collection/(Contribution) 0.00
Balance to Levy $1,493.32
Fiscal Year 2026/27 Assessment per Parcel $124.44
Fiscal Year 2026/27 Max Assessment per Parcel $760.9122 Fiscal Year 2025/26 Max Assessment per Parcel $722.7466 Number of Parcels (EBU) 12

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 19 Zone 6 Tract 18071 – Jaden
Budget Item Fiscal Year 2026/27
Current Assessment
Energy Costs - Street Lighting $2,500.00
Contractual Services 12,660.00
Engineering 500.00
Annual Costs Total $15,660.00
General Benefit - Collection/(Contribution) (617.50)
Reserve Fund - Collection/(Contribution) 0.00
General Fund - Collection/(Contribution) 0.00
Balance to Levy $15,042.50
Fiscal Year 2026/27 Assessment per Parcel $884.85
Fiscal Year 2026/27 Max Assessment per Parcel $2,188.3959 Fiscal Year 2025/26 Max Assessment per Parcel $2,078.6312 Number of Parcels (EBU) 17

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 20 Zone 7 Tract 18604 – Tesoro/Van Buren
Budget Item Fiscal Year 2026/27
Current Assessment
Contractual Services $0.00
Engineering 500.00
Annual Costs Total $500.00
General Benefit - Collection/(Contribution) (32.39)
Reserve Fund - Collection/(Contribution) 0.00
General Fund - Collection/(Contribution) 0.00
Balance to Levy $467.61
Fiscal Year 2026/27 Assessment per Parcel $27.51
Fiscal Year 2026/27 Max Assessment per Parcel $483.8126 Fiscal Year 2025/26 Max Assessment per Parcel $459.5458 Number of Parcels (EBU) 17
The total approved assessment for Fiscal Year 2026/2027 is $28,571.55.

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 21 Section IV. ASSESSMENT DIAGRAMS
An Assessment Diagram for the District has been submitted to the Clerk of the City in the format required under the provision of the Act. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County of San Bernardino, for the year when this Report was prepared, and are incorporated by reference herein and made part of this Report. The following pages show the boundaries of each of the Zones in the District.

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 22

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 23

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 24

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
ZONE 4

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 25

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
ZONE 5

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 26

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
Zone 6

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 27

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
ZONE 7

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 28 Section V. ASSESSMENT ROLL
The description of each lot or parcel is part of the records of the Assessor of the County of San Bernardino and these records are, by reference, made part of this Report. The proposed assessment and the amount of assessment for Fiscal Year 2026/2027 apportioned to each lot or parcel is shown below.

Zone Assessor's Parcel
Number Tract Equivalent Benefit Unit (EBU) Assessment Max Assessment 1 0275-301-08-0000 13364 1.0 $282.33 $282.33
1 0275-301-09-0000 13364 1.0 282.33 282.33
1 0275-301-10-0000 13364 1.0 282.33 282.33
1 0275-301-11-0000 13364 1.0 282.33 282.33
1 0275-301-12-0000 13364 1.0 282.33 282.33
1 0275-301-13-0000 13364 1.0 282.33 282.33
1 0275-301-14-0000 13364 1.0 282.33 282.33
1 0275-301-15-0000 13364 1.0 282.33 282.33
1 0275-301-16-0000 13364 1.0 282.33 282.33
1 0275-301-17-0000 13364 1.0 282.33 282.33
1 0275-301-18-0000 13364 1.0 282.33 282.33
1 0275-301-19-0000 13364 1.0 282.33 282.33
1 0275-301-20-0000 13364 1.0 282.33 282.33
1 0275-301-21-0000 13364 1.0 282.33 282.33
1 0275-301-22-0000 13364 1.0 282.33 282.33
1 0275-301-23-0000 13364 1.0 282.33 282.33
1 0275-301-24-0000 13364 1.0 282.33 282.33
1 0275-301-25-0000 13364 1.0 282.33 282.33
1 0275-301-26-0000 13364 1.0 282.33 282.33
1 0275-301-27-0000 13364 1.0 282.33 282.33
2 0275-251-81-0000 14264 1.0 1,415.64 1,415.64
3 1178-181-16-0000 14471 1.0 197.03 309.95
3 1178-181-17-0000 14471 1.0 197.03 309.95
3 1178-181-18-0000 14471 1.0 197.03 309.95
3 1178-181-19-0000 14471 1.0 197.03 309.95
3 1178-181-20-0000 14471 1.0 197.03 309.95
3 1178-181-21-0000 14471 1.0 197.03 309.95
3 1178-181-22-0000 14471 1.0 197.03 309.95
3 1178-181-23-0000 14471 1.0 197.03 309.95
3 1178-181-24-0000 14471 1.0 197.03 309.95
3 1178-181-25-0000 14471 1.0 197.03 309.95
3 1178-181-26-0000 14471 1.0 197.03 309.95
3 1178-181-27-0000 14471 1.0 197.03 309.95
3 1178-181-28-0000 14471 1.0 197.03 309.95
3 1178-181-29-0000 14471 1.0 197.03 309.95
3 1178-181-30-0000 14471 1.0 197.03 309.95
3 1178-181-31-0000 14471 1.0 197.03 309.95
3 1178-181-32-0000 14471 1.0 197.03 309.95
4 0275-331-02-0000 17766 1.0 33.04 242.59
4 0275-331-03-0000 17766 1.0 33.04 242.59
4 0275-331-04-0000 17766 1.0 33.04 242.59
4 0275-331-05-0000 17766 1.0 33.04 242.59
4 0275-331-06-0000 17766 1.0 33.04 242.59
4 0275-331-07-0000 17766 1.0 33.04 242.59
4 0275-331-08-0000 17766 1.0 33.04 242.59
4 0275-331-09-0000 17766 1.0 33.04 242.59
4 0275-331-10-0000 17766 1.0 33.04 242.59
4 0275-331-11-0000 17766 1.0 33.04 242.59
4 0275-331-12-0000 17766 1.0 33.04 242.59
4 0275-331-13-0000 17766 1.0 33.04 242.59
4 0275-331-14-0000 17766 1.0 33.04 242.59
4 0275-331-15-0000 17766 1.0 33.04 242.59
4 0275-331-17-0000 17766 1.0 33.04 242.59
4 0275-331-18-0000 17766 1.0 33.04 242.59
4 0275-331-19-0000 17766 1.0 33.04 242.59
4 0275-331-20-0000 17766 1.0 33.04 242.59
4 0275-331-21-0000 17766 1.0 33.04 242.59
4 0275-331-22-0000 17766 1.0 33.04 242.59
City of Grand Terrace
Landscaping and Lighting Assessment District No. 89-1
Fiscal Year 2026/27 Preliminary Roll
LLAD No. 89-1 Fiscal Year 2026/27 Preliminary Roll Page 1 of 3

Zone Assessor's Parcel
Number Tract Equivalent Benefit Unit (EBU) Assessment Max Assessment City of Grand Terrace
Landscaping and Lighting Assessment District No. 89-1
Fiscal Year 2026/27 Preliminary Roll
4 0275-331-23-0000 17766 1.0 33.04 242.59
4 0275-331-24-0000 17766 1.0 33.04 242.59
4 0275-331-25-0000 17766 1.0 33.04 242.59
4 0275-331-26-0000 17766 1.0 33.04 242.59
4 0275-331-27-0000 17766 1.0 33.04 242.59
4 0275-331-28-0000 17766 1.0 33.04 242.59
4 0275-331-29-0000 17766 1.0 33.04 242.59
4 0275-331-30-0000 17766 1.0 33.04 242.59
4 0275-331-31-0000 17766 1.0 33.04 242.59
4 0275-331-32-0000 17766 1.0 33.04 242.59
4 0275-331-33-0000 17766 1.0 33.04 242.59
4 0275-331-34-0000 17766 1.0 33.04 242.59
4 0275-331-35-0000 17766 1.0 33.04 242.59
4 0275-331-36-0000 17766 1.0 33.04 242.59
4 0275-331-37-0000 17766 1.0 33.04 242.59
5 1167-291-67-0000 18793 1.0 124.44 760.91
5 1167-291-68-0000 18793 1.0 124.44 760.91
5 1167-291-69-0000 18793 1.0 124.44 760.91
5 1167-291-70-0000 18793 1.0 124.44 760.91
5 1167-291-71-0000 18793 1.0 124.44 760.91
5 1167-291-72-0000 18793 1.0 124.44 760.91
5 1167-291-73-0000 18793 1.0 124.44 760.91
5 1167-291-74-0000 18793 1.0 124.44 760.91
5 1167-291-75-0000 18793 1.0 124.44 760.91
5 1167-291-76-0000 18793 1.0 124.44 760.91
5 1167-291-77-0000 18793 1.0 124.44 760.91
5 1167-291-78-0000 18793 1.0 124.44 760.91
6 1178-181-37-0000 18071 1.0 884.85 2,188.39
6 1178-181-38-0000 18071 1.0 884.85 2,188.39
6 1178-181-39-0000 18071 1.0 884.85 2,188.39
6 1178-181-40-0000 18071 1.0 884.85 2,188.39
6 1178-181-41-0000 18071 1.0 884.85 2,188.39
6 1178-181-42-0000 18071 1.0 884.85 2,188.39
6 1178-181-43-0000 18071 1.0 884.85 2,188.39
6 1178-181-44-0000 18071 1.0 884.85 2,188.39
6 1178-181-45-0000 18071 1.0 884.85 2,188.39
6 1178-181-46-0000 18071 1.0 884.85 2,188.39
6 1178-181-47-0000 18071 1.0 884.85 2,188.39
6 1178-181-48-0000 18071 1.0 884.85 2,188.39
6 1178-181-49-0000 18071 1.0 884.85 2,188.39
6 1178-181-50-0000 18071 1.0 884.85 2,188.39
6 1178-181-51-0000 18071 1.0 884.85 2,188.39
6 1178-181-52-0000 18071 1.0 884.85 2,188.39
6 1178-181-53-0000 18071 1.0 884.85 2,188.39
7 1167-341-80-0000 18604 1.0 27.51 483.81
7 1167-341-81-0000 18604 1.0 27.51 483.81
7 1167-341-82-0000 18604 1.0 27.51 483.81
7 1167-341-83-0000 18604 1.0 27.51 483.81
7 1167-341-84-0000 18604 1.0 27.51 483.81
7 1167-341-85-0000 18604 1.0 27.51 483.81
7 1167-341-86-0000 18604 1.0 27.51 483.81
7 1167-341-87-0000 18604 1.0 27.51 483.81
7 1167-341-88-0000 18604 1.0 27.51 483.81
7 1167-341-89-0000 18604 1.0 27.51 483.81
7 1167-341-90-0000 18604 1.0 27.51 483.81
7 1167-341-91-0000 18604 1.0 27.51 483.81
7 1167-341-92-0000 18604 1.0 27.51 483.81
7 1167-341-93-0000 18604 1.0 27.51 483.81
LLAD No. 89-1 Fiscal Year 2026/27 Preliminary Roll Page 2 of 3

Zone Assessor's Parcel
Number Tract Equivalent Benefit Unit (EBU) Assessment Max Assessment City of Grand Terrace
Landscaping and Lighting Assessment District No. 89-1
Fiscal Year 2026/27 Preliminary Roll
7 1167-341-94-0000 18604 1.0 27.51 483.81
7 1167-341-95-0000 18604 1.0 27.51 483.81
7 1167-341-96-0000 18604 1.0 27.51 483.81
Zone No. EBU Assessment Amount Max Assessment
Zone 1 20 $5,646.60 $5,646.60
Zone 2 1 1,415.64 1,415.64
Zone 3 17 3,349.51 5,269.15
Zone 4 35 1,156.40 8,490.65
Zone 5 12 1,493.28 9,130.92
Zone 6 17 15,042.45 37,202.63
Zone 7 17 467.67 8,224.77
Grand Total: 119 $28,571.55 $75,380.36
12 17
17 119
Parcel Count
20 1
17 35
LLAD No. 89-1 Fiscal Year 2026/27 Preliminary Roll Page 3 of 3

RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, PURSUANT TO THE LANDSCAPING AND
LIGHTING ACT OF 1972, INITIATING PROCEEDINGS TO LEVY
ANNUAL ASSESSMENTS FOR THE 2026-2027 FISCAL YEAR FOR THE

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

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

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

WHEREAS, the proceedings for the annual levy of assessments shall relate to the fiscal year commencing July 1, 2026, and ending June 30, 2027; and, WHEREAS, the provisions of said Division 15, Part 2 require a written "Report," consisting of the following:

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

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

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

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

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

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

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

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

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

PASSED, APPROVED AND ADOPTED this 12th day of May, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF GRAND TERRACE )
I, __________________, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2026- ________ was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 12th day of May 2026, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

EXECUTED this 12th day of May 2026, at Grand Terrace, California.

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

RESOLUTION NO. 2026- ______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, DECLARING ITS INTENTION TO CONDUCT A PUBLIC HEARING ON JUNE 9TH, 2026, ON LANDSCAPING AND
LIGHTING ASSESSMENT DISTRICT NO. 89-1, AND TO LEVY AND

COLLECT ANNUAL ASSESSMENTS RELATED THERETO FOR FISCAL
YEAR 2026-2027

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

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

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

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

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

REPORT
SECTION 3. That the Report of the Engineer regarding the annual levy for said District, which "Report" is for maintenance for the Fiscal Year 2026-2027 is hereby approved and is directed to be filed in the Office of the City Clerk.

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

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

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

COUNTY AUDITOR
SECTION 7. The County Auditor shall enter on the County Assessment Roll the amount of the assessments, and shall collect said assessments at the time and in the same manner as County taxes are collected. After collection by the County, the net amount of the assessments, after the deduction of any compensation due to the County for collection, shall be paid to the Treasurer for purposes of paying for the costs and expenses of said District.

SPECIAL FUND
SECTION 8. That all monies collected shall be deposited in a special fund known as
"SPECIAL FUND”, CITY OF GRAND TERRACE
LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1
Payment shall be made out of said fund only for the purpose provided for in this Resolution, and in order to expedite the making of this maintenance and improvement, the City Council may transfer into said funds as it may deem necessary to expedite the proceedings. Any funds shall be repaid out of the proceeds of the assessments provided for in this Resolution.

BOUNDARIES OF DISTRICT
SECTION 9. Said contemplated maintenance work is, in the opinion of this City Council, of direct benefit to the properties within the boundaries of the District, and this City Council makes the costs and expenses of said maintenance chargeable upon a district, which district said City Council hereby declares to be the district benefited by said improvement and maintenance, and to be further assessed to pay the costs and expenses thereof. Said District shall include each and every parcel of land within the boundaries of said District, as said District is shown on a map as approved by this City Council and on file in the Office of the City Clerk, and so designated by the name of the District.

NOTICE OF PUBLIC HEARING
SECTION 10. NOTICE IS HEREBY GIVEN THAT TUESDAY, JUNE 9TH, 2026, AT THE HOUR OF 6:00 O'CLOCK P.M., IN THE CITY COUNCIL CHAMBERS LOCATED AT 22795 BARTON ROAD, GRAND TERRACE, CALIFORNIA, IS THE TIME AND

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

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

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

PERSONS WHO WISH TO OBJECT TO THE PROCEEDINGS SHOULD FILE A

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

SECTION 11. The City Clerk is directed to publish this Resolution of Intention pursuant to Government Code Section 6061, said publication to be completed no later than ten (10) days prior to the date set for the Public Hearing.

EFFECTIVE DATE
SECTION 12. That this Resolution shall take effect immediately upon its adoption.

PROCEEDINGS INQUIRIES
SECTION 13. For any and all information relating to the proceedings, protest procedure, any documentation and/or information of a procedural or technical nature, your attention is directed to the below listed person at the local agency or department so designated:

Shanita Tillman, Management Analyst

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

PASSED, APPROVED AND ADOPTED this 12th day of May, 2026 by the following vote:

AYES:

NOES:

ABSENT:

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

STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF GRAND TERRACE )
I, Daysi Alcoler, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2026- _______ was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 12th day of May 2026, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

EXECUTED this 12th day of May 2026, at Grand Terrace, California. _________________________________
Daysi Alcoler
City Clerk for the City of Grand Terrace

[SEAL]

AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: Award LED Sports Field Lighting Retrofit to F.E.C. Electric Inc. for $202,106 PRESENTED BY: Natalie Oros, Department Secretary
RECOMMENDATION: APPROVE A CONTRACT WITH F.E.C. ELECTRIC INC. IN THE AMOUNT OF $183,733 FOR THE BALLFIELD LIGHTING RETROFIT PROJECT AND APPROVE A 10% CONTINGENCY OF $18,373 FOR UNFORESEEN
COSTS, FOR A TOTAL PROJECT AMOUNT OF $202,106; 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 – Invest in Critical Improvements to Infrastructure.

BACKGROUND:

The ballfield lights are used by Grand Terrace Little League. Over the past two years, several light bulbs have failed and required replacement. Despite recent repairs, including work completed in February, additional lights are already not working. The current lighting system no longer meets operational standards. Continued failures indicate the system is reaching the end of its useful life.

This project is also part of the City’s partnership with the Inland Regional Energy Network (I-REN), which supports energy efficiency improvements; the City may be eligible for a financial incentive or reimbursement to help offset project costs.

DISCUSSION:

Approximately nine light bulbs are currently not functioning, resulting in poor field lighting. This has reduced the City’s ability to charge full lighting fees, causing a loss of revenue. To address the issue, the City released a bid on March 17, 2026, and received seven bids. The lowest responsive bid was submitted by F.E.C Electric Inc. in the amount of $202,106. This retrofit project will upgrade the existing lighting system to improve visibility, safety, and reliability. The new system is expected to reduce ongoing maintenance needs and energy use.

ENVIRONMENTAL IMPACT:

This project is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301 (Existing Facilities), as it involves minor alterations to existing public facilities with no expansion of use.

FISCAL IMPACT:

The base contract amount is $183,733, with an additional 10% contingency of $18,373, for a total project cost of $202,106. The project will be funded through the Park Additions and Improvements Account (Account No. 10-450-710-000-000) as part of the additional appropriations at midyear. The

City may also receive an energy efficiency incentive through I-REN to offset a portion of the cost.

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 1

AGREEMENT FOR PUBLIC WORKS SERVICES
By and Between

CITY OF GRAND TERRACE
and
F.E.C. ELECTRIC, INC.

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 2

AGREEMENT FOR PUBLIC WORKS SERVICES

BETWEEN THE CITY OF GRAND TERRACE AND
RMF CONTRACTING INC.

This AGREEMENT FOR PUBLIC WORKS SERVICES (herein “Agreement”) is made and entered into this 12th day of May 2026 by and between the City of Grand Terrace, a California municipal corporation (“City”) and F.E.C. ELECTRIC, INC., a California corporation (“Contractor”). City and Contractor may sometimes be referred to herein, individually as a “Party” or collectively, as the “Parties.”

RECITALS
A. The City of Grand Terrace (“City”) is authorized to enter into this Agreement for a public project or maintenance work pursuant to Chapter 3.26 of the Grand Terrace Municipal Code (“GTMC”), which establishes bidding and contracting procedures in conformance with the Uniform Public Construction Cost Accounting Act (Public Contract Code section 22000 et seq.).

The City solicited and received bids in accordance with the informal bidding procedures set forth in GTMC section 3.26.050, and the contract is awarded to the lowest responsible bidder as required by law.

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

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

D. The Parties desire to formalize the selection of Contractor for performance of the services described herein and desire that the terms of that performance be as particularly defined and described herein.

E. 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.

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 3

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. WORK OF CONTRACTOR

1.1 Scope of Work.

Contractor shall perform all of the work, furnish all labor, materials, equipment, tools, utility services, and transportation, and comply with all of the specification and requirements set forth in the Project Documents for the Project (as each such terms are defined below), in compliance with all terms and conditions of this Agreement, and as described in the “Scope of Work” 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 the City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the work required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Contractor shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended.

For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances.

1.2 Project Documents.

The Scope of Work shall include the proposal and any other documents submitted from Contractor to the City for the project entitled LED Sports Field Lighting Retrofit (the “Project”), including any documents or exhibits referenced therein (collectively, “Project Documents”), all of which are incorporated herein by this reference. In the event of any inconsistency between the terms of the Project Documents and this Agreement, the terms of this Agreement shall govern.

1.3 Compliance with Law.

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

1.4 Compliance with California Labor Law.
(a) Public Work. The Parties acknowledge that 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

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 4 monitoring and enforcement by the DIR. Contractor shall post job site notices, as prescribed by state law and DIR regulations. Pursuant to Labor Code Section 1771.1, Contractor and all subcontractors must be registered with, and pay an annual fee to, the DIR prior to and during the performance of any work under this Agreement. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor’s or any of its subcontractors’ DIR registration status has been suspended, revoked, expired, or otherwise changed.
(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 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. The 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 the 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. 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 Sections 1810 and 1811. As required under Labor Code Section 1812, Contractor and each of its subcontractors shall keep an accurate record showing the name of and actual hours worked each calendar day and each calendar week by each worker employed by them in connection with the work performed under the terms of this Agreement.
(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

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 5 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 eight (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 self-insurance 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 ________________
Ronald Moore
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, registrations, 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 be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.6 Familiarity with Work.
(a) By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of work to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities,

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 6 difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor 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.
(b) Pursuant to Public Contract Code Section 7104, Contractor shall promptly, and before the following conditions are disturbed, notify the City, in writing, of any: (i) material Contractor believes may be hazardous waste as defined in Section 25117 of the Health & Safety Code required to be removed to a Class I, II, or III disposal site in accordance with existing law; (ii) subsurface, unknown or latent conditions at the Project site, materially different from those indicated by information about the Project site made available to bidders prior to the deadline for submitting bids on the Project; or (iii) unknown physical conditions at the Project site of any unusual nature, different from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement, and will materially affect the performance of the services hereunder.
(c) City shall promptly investigate the conditions, and if it finds that the conditions do materially differ, or do involve hazardous waste, and cause a decrease or increase in Contractor's cost of, or the time required for, the performance of any part of the work, the City shall issue a Change Order per Section 1.10 of this Agreement. (d) In the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date set, but shall proceed with all work to be performed under this Agreement. Contractor shall retain any and all rights provided either by contract or by law, which pertain to the resolution of disputes and protests between the Parties.
(e) City will compensate Contractor to the extent required by Government Code Section 4215 by issuing a Change Order per Section 1.10 of this Agreement.

1.7 Protection and Care of Work and Materials.

The Contractor shall adopt reasonable methods, including providing and maintaining storage facilities, 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 caused by City’s own negligence. Stored materials shall be reasonably accessible for inspection. Contractor shall not, without City’s consent, assign, sell, mortgage, hypothecate, or remove equipment or materials which have been installed or delivered and which may be necessary for the completion of the work.

1.8 Warranty.

Contractor warrants all work under this Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed or corrected and any non-conforming construction or materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in this Agreement, or the Project

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 7 Documents, or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance by the City for the Project, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the work or non-conformance of the work to the requirements under this Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act as soon as requested by the City in response to any emergency condition or situation. In addition, Contractor shall, at its sole cost and expense, repair, remove and replace any portions of the work (or work of other subcontractors) damaged by its defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor's obligation hereunder to correct defective work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of this Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement or the Project Documents, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense.

Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

1.9 Inspection by City.

In connection with the performance of this Agreement, the City shall have the authority to enter the worksite at any time for the purpose of identifying the existence of conditions, either actual or threatened, that may present a danger or hazard to any and all employees. The Contractor agrees that the City, in its sole authority and discretion, may order the immediate abatement of any and all conditions that may present an actual or threatened danger or hazard to any and all employees at the worksite Contractor acknowledges the provisions of Section 6400 of the Labor Code, which requires that employers shall furnish employment and a place of employment that is safe and healthful for all employees working therein. In the event the City identifies the existence of any condition that presents an actual or threatened danger or hazard to any or all employees at the worksite, the City is hereby authorized to order the immediate abatement of that actual or threatened condition pursuant to this Section.

The City may also, at its sole authority and discretion, issue an immediate stop work order to the Contractor to ensure that no employee working at the worksite is exposed to a dangerous or hazardous condition. Any stop work order issued by the City to the Contractor in accordance with the provisions of this section shall not give rise to any claim or cause of action for delay damages by the Contractor or the Contractor’s agents or subcontractors against the City.

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 8

1.10 Additional Work and Change Orders.
(a) 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 Work or make changes to the work by altering, adding to or deducting from said work.

No such extra work may be undertaken unless a written change order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor (“Change Order”). All Change Orders must be signed by the Contractor and Contract Officer prior to commencing the extra work thereunder. (b) Any increase in compensation of up to ten percent (10%) of the Contract Sum or $25,000, whichever is less; or any increase in the time to perform of up to one hundred eighty (180) days may be approved by the Contract Officer, provided that such increase does not materially affect the work in a manner or materially and detrimentally affect the interest of the City. Any greater increases, taken either separately or cumulatively, must be approved by the City Council.
(c) Any adjustment in the Contract Sum for a Change Order must be in accordance with the rates set forth in the Schedule of Compensation in Exhibit “C”. If the rates in the Schedule of Compensation do not cover the type of work in the Change Order, the cost of such work shall not exceed an amount agreed upon in writing and signed by Contractor and Contract Officer. If the cost of the Change Order cannot be agreed upon, the City will pay for actual work of the Change Order that is completed to the satisfaction of the City, as follows:
(i) Labor: The cost of labor shall be the actual cost for wages of workers and subcontractors performing the work for the Change Order at the time such work is done. The use of labor classifications that would increase the cost of such work shall not be permitted.
(ii) Materials and Equipment: The cost of materials and equipment shall be at cost to Contractor or the lowest current price for which such materials and equipment are reasonably available at the time the work is done, whichever is lower. (iii) Daily Reporting: If the cost of the extra work cannot be agreed upon, the Contractor must provide a daily report that includes all invoices for labor, materials and equipment costs for the work under the Change Order. The daily report must include:
list of names of workers, classifications, and hours worked; description and list of quantities of materials used; type of equipment, size, identification number, and hours of operation, including loading and transportation, if applicable; description of other City authorized services and expenditures in such detail as the City may require. Failure to submit a daily report by the close of the next working day may, at the City’s sole and absolute discretion, waive the Contractor’s rights to payment for the work performed for that day.
(d) It is expressly understood by Contractor that the provisions of this Section 1.10 shall not apply to services specifically set forth in the Scope of Work. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Work 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.

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 9 (e) No claim 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 Contractor Modifications.

Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Contractor 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.

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 amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Two Hundred Two Thousand One Hundred Six Dollars and Zero Cents ($202,106.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10.

2.2 Method of Compensation.

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

2.3 Reimbursable Expenses.

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

Coordination of the performance of the work with City 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.

2.4 Invoices.

Each month Contractor shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Finance Director and/or the Contract Officer. By submitting an invoice for payment under this Agreement, Contractor is certifying compliance with all provisions of the Agreement. The invoice shall contain all information specified in Exhibit “C”, include a copy of Contractor’s certified payroll and proof that the certified payroll has been submitted to the DIR, and shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel,

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 10 materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Contractor shall also submit a list of the prevailing wage rates for all employees and subcontractors providing services under this Agreement, as applicable, with Contractor’s first invoice. Contractor shall not invoice City for any duplicate services performed by more than one person.

City shall, as soon as practicable, independently review each invoice submitted by the Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Contractor which are disputed by City, or as provided in Section 7.3, City will cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice; however, Contractor acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event that City does not cause Contractor to be paid within thirty (30) days of receipt of an undisputed and properly submitted invoice, Contractor shall be entitled to the payment of interest to the extent allowed under Public Contract Code Section 20104.50. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor, not later than seven (7) days after receipt by the City, for correction and resubmission. Returned invoices shall be accompanied by a document setting forth in writing the reasons why the payment request was rejected. Review and payment by the City of any invoice provided by the Contractor shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

2.5 Waiver.

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

2.6 Retention.

City will deduct a five percent (5%) retention from all progress payments. In accordance with Public Contract Code Section 22300, which is hereby incorporated into this Agreement, City shall permit the substitution of securities for any moneys withheld by City to ensure performance under this Agreement. The retention held by the City shall be released within sixty (60) days after the date of completion of the work and the Project, as required by Government Code Section 7107.

In the event of a dispute between City and Contractor, City may withhold from the final payment an amount not to exceed one hundred fifty percent (150%) of the disputed amount.

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

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

3.2 Schedule of Performance.

Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed (“NTP”) by the Contract Officer and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by 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.

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 11

3.3 Force Majeure.

The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of 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 Agreement pursuant to this Section.

3.4 Inspection and Final Acceptance.

City may inspect and accept or reject any of Contractor’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Contractor’s work within forty-five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. If City finds that Contractor’s work does not meet the requirements and standards set forth in this Agreement, Contractor shall remedy any defects in the work at Contractor’s sole expense, following notice by the City. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as to amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Articles 1 and 5, pertaining to warranty and indemnification and insurance, respectively.

3.5 Term.

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

ARTICLE 4. COORDINATION OF WORK

4.1 Representatives and Personnel of Contractor.

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

Ronald Moore, President
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement.

Therefore, the Principals 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.

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 12 All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance.

4.2 Status of 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 Ruben Montano, or such person as may be designated by the City Manager. It shall be the Contractor’s 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 the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in, or authority over, the selection, discharge, supervision or control of Contractor’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.

Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.

4.5 Prohibition Against Subcontracting or Assignment.

The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services

PW Agreement – F.E.C. Electric, Inc. (LED Sports Field Lighting Retrofit) May 12, 2026 13 required hereunder without the express written approval of the City. All subcontractors shall obtain, at its or Contractor’s expense, such licenses, permits, registrations and approvals (including from the City) as may be required by law for the performance of any services or work under this Agreement. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

ARTICLE 5. INSURANCE, INDEMNIFICATION AND BONDS

5.1 Insurance Coverages.

Without limiting Contractor’s indemnification obligations to the City (as set forth below), and prior to commencement of any services under this Agreement, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. (a) General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. The Product and Completed Operations coverage under the policy shall extend a minimum of three (3) years after completion of the Project. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the policy must include work performed “by or on behalf” of the insured. The policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. The policy shall specifically provide for a duty to defend on the part of the insurer. (b) Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with the services to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. (c) Professional Liability (errors & omissions) Insurance. Contractor shall maintain professional liability insurance that covers the services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Contractor agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.