Grand Terrace City Council
May 26, 2026

Tuesday, May 26, 2026 1

CITY OF GRAND TERRACE
City Council
AGENDA ● May 26, 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.

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].

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].

Tuesday, May 26, 2026 2

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 - NONE
D. 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 - Special Meeting - May 12, 2026 Approval of Minutes - Regular Meeting - May 12, 2026
3) Appoint Three (3) Planning Commission Members to Fill Three (3) New Four-Year Terms Expiring on June 30, 2030
RECOMMENDATION: APPOINT THE THREE (3) INCUMBENT PLANNING COMMISSIONER APPLICANTS TO NEW FOUR-YEAR TERMS EXPIRING JUNE 30, 2030
DEPARTMENT: City Clerk
4) Thirty-Fourth Amendment to Law Enforcement Services Contract No. 94-797 with the County of San Bernardino to Provide Law Enforcement Services for Fiscal Year 2026- 2027 to the City of Grand Terrace
RECOMMENDATION: APPROVE THE THIRTY-FOURTH AMENDMENT TO LAW

Tuesday, May 26, 2026 3
ENFORCEMENT SERVICES CONTRACT NO. 94-797 WITH THE COUNTY OF SAN

BERNARDINO TO PROVIDE LAW ENFORCEMENT SERVICES FROM THE SHERIFFS’ DEPARTMENT FOR FISCAL YEAR 2026-27; AND

AUTHORIZE THE CITY MANAGER TO EXECUTE THE CONTRACT SUBJECT TO

CITY ATTORNEY APPROVAL AS TO FORM
DEPARTMENT: City Manager
5) Consideration of Approval of Amendment No. 10 to Waste Disposal Agreement No. 98- 107 with the County of San Bernardino
RECOMMENDATION: APPROVE AMENDMENT NO. 10 TO WASTE DISPOSAL AGREEMENT NO. 98-107 WITH THE COUNTY OF SAN BERNARDINO EXTENDING THE TERM OF THE AGREEMENT THROUGH JUNE 30, 2035, ADJUSTING THE WASTE DISPOSAL AGREEMENT CONTRACT RATE TO 83% OF THE COUNTY’S

POSTED GATE RATE, AND ELIMINATING THE ANNUAL ADJUSTMENT FORMULA DEPARTMENT: City Manager
6) Professional Services Agreement Amendment No. 2 Between the City of Grand Terrace and HDL Companies for Business License Auditing and Administration Services RECOMMENDATION: APPROVE PROFESSIONAL SERVICES AGREEMENT AMENDMENT NO. 2 WITH HDL COMPANIES (HDL) FOR BUSINESS LICENSE AUDITING AND ADMINISTRATION SERVICES FOR A TERM OF 1 YEAR AND A MAXIMUM COST OF $15,000.00; AND

AUTHORIZE THE MAYOR TO EXECUTE THE AGREEMENT SUBJECT TO CITY

ATTORNEY APPROVAL AS TO FORM
DEPARTMENT: Finance
7) Second Reading & Adoption of an Ordinance – Zoning Code Amendment (ZCA) 26-01 – Agricultural Employee Housing (Housing Element Program 12) RECOMMENDATION: IT IS RECOMMENDED THAT THE CITY COUNCIL CONDUCT

SECOND READING AND ADOPT AN ORDINANCE APPROVING ZONING CODE AMENDMENT (ZCA) 26-01 AND ENVIRONMENTAL REVIEW (E) 26-05; 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
8) Award of Professional Services Agreement to Kittelson & Associates, Inc. for Citywide AB 98 Truck Route Compliance, Inventory, and Signage Plan
RECOMMENDATION: APPROVE AN AGREEMENT WITH KITTELSON &

Tuesday, May 26, 2026 4
ASSOCIATES, INC. FOR PREPARATION OF A CITYWIDE AB 98 TRUCK ROUTE COMPLIANCE, INVENTORY, AND SIGNAGE PLAN IN THE AMOUNT OF $189,513; AND

AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM, AND TO MAKE ANY MINOR NONSUBSTANTIVE CHANGES DEPARTMENT: Public Works
9) Award Agreement to Pineda General Construction, Inc for Public Works Building Renovation Project
RECOMMENDATION: AWARD THE PUBLIC WORKS BUILDING RENOVATION PROJECT CONTRACT IN THE AMOUNT OF $48,000; AND

AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT AND ANY

RELATED DOCUMENTS, SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM DEPARTMENT: Public Works
10) Senior Transportation Program Agreement with Omnitrans RECOMMENDATION: APPROVE THE TWO-YEAR AGREEMENT WITH OMNITRANS FOR THE CITY’S SENIOR TRANSPORTATION PROGRAM IN THE AMOUNT OF $116,784.41 FOR FISCAL YEAR 2026-27 AND $120,289.28 FOR FISCAL YEAR 2027- 28, FOR A TOTAL AGREEMENT AMOUNT OF $237,073.69; AND

AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT SUBJECT TO

CITY ATTORNEY APPROVAL AS TO FORM
DEPARTMENT: Public Works
E. PUBLIC HEARINGS
11) Public Hearing on Staffing Vacancies Pursuant to Assembly Bill 2561 RECOMMENDATION: RECEIVE AND FILE THIS REPORT AS REQUIRED BY ASSEMBLY BILL 2561 (AB 2561), WHICH OUTLINES THE CITY’S STAFFING

LEVELS, HIRING AND RETENTION PRACTICES, AND BARRIERS TO RECRUITMENT

IN COMPLIANCE WITH STATE LAW
DEPARTMENT: City Manager
12) Discussion and Possible Reconsideration of Zoning Code Amendment (ZCA) 26-02, General Plan Amendment (GPA) 26-01, Zone Change (ZC) 26-01, and Environmental Review (E) 26-03 – Establishment of the R3-40 High Density Multiple Family Residential District and Housing Element Rezoning
RECOMMENDATION: PASS A MOTION TO RECONSIDER APPROVAL OF ZONING CODE AMENDMENT (ZCA) 26-02, GENERAL PLAN AMENDMENT (GPA) 26-01, ZONE CHANGE (ZC) 26-01, AND ENVIRONMENTAL REVIEW (E) 26-03 – ESTABLISHMENT OF THE R3-40 HIGH DENSITY MULTIPLE FAMILY RESIDENTIAL DISTRICT AND

HOUSING ELEMENT REZONING

Tuesday, May 26, 2026 5
DEPARTMENT: City Attorney
F. UNFINISHED BUSINESS - NONE
G. NEW BUSINESS
13) 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
14) Introduction of the FY2026-27 Proposed Budget
RECOMMENDATION: REVIEW THE PROPOSED BUDGET FOR FISCAL YEAR 2026- 27; AND

BEGIN BUDGET DELIBERATIONS FOR THE PROPOSED BUDGET FOR FISCAL YEAR 2026-27; AND
CONTINUE BUDGET DELIBERATIONS ON JUNE 9, 2026, FOR BUDGET ADOPTION DEPARTMENT: Finance
15) Consideration of a Special Transactions and Use Tax at a Rate of Up to 1.00% RECOMMENDATION: PROVIDE DIRECTION WHETHER TO PREPARE SPECIAL TRANSACTIONS AND USE TAX MEASURE FOR THE NOVEMBER 3, 2026 GENERAL

MUNICIPAL ELECTION
DEPARTMENT: City Attorney
H. 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.

I. CITY COUNCIL COMMUNICATIONS
Council Member Matt Brown
Council Member Jeff Allen
Council Member Doug Wilson
Mayor Pro Tem Michelle Sabino
Mayor Bill Hussey

Tuesday, May 26, 2026 6
J. COMMUNICATIONS FROM THE CITY MANAGER, SHERIFFS' DEPARTMENT, AND FIRE

DEPARTMENT
City Manager Konrad Bolowich
Lieutenant Kevin Fries
Assistant Fire Chief Gary Jager
K. 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 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. 2026-004.

Number of cases: 1
L. ADJOURN
The next Regular City Council Meeting will be held on June 9, 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 ● May 12, 2026
Council Chambers Special Meeting Workshop 4:00 PM
Grand Terrace Civic Center ● 22795 Barton Road

CALL TO ORDER
Mayor Bill Hussey convened the Special Meeting Workshop of the City Council for Tuesday, May 12, 2026, at 4:00 PM.

ROLL CALL

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

Absent: Council Member Jeff Allen
A. PUBLIC COMMENT
None.

B. NEW BUSINESS
1) Budget Workshop FY 2026-27
Scott Hutter, Planning & Development Services Director, provided a brief overview of the Building & Safety Division.

Gabriel Arguelles, Associate Planner for the Planning & Development Services Department, provided a brief overview of the accomplishments to date and outlined the goals and objectives for the upcoming fiscal year.

Rigo Morales, Maintenance Crew Lead for the Public Works Maintenance Department, provided a brief overview of the accomplishments to date and outlined the goals and objectives for the upcoming fiscal year.

Gill Garza, Senior Code Enforcement/Animal Control Officer, provided a brief overview of the accomplishments to date and outlined the goals and objectives for the upcoming fiscal year.

Daysi Alcocer, City Clerk, provided a brief overview of the accomplishments to date and outlined the goals and objectives for the upcoming fiscal year.

Sergeant Sean Tabor with the San Bernardino County Sheriff's Department delivered a PowerPoint presentation providing an overview of law enforcement activity and key public safety trends.

Daysi Alcocer, City Clerk, announced that Council Member Allen has joined the Special Meeting via teleconference at 5:05 p.m.

Assistant Fire Chief Gary Jager, San Bernardino County Fire Protection District, delivered a short video from the State of the Fire District 2026 as well as a PowerPoint presentation outlining their accomplishments.

Shanita Tillman, Senior Management Analyst, provided a brief overview of the accomplishments to date and outlined the goals and objectives for the upcoming fiscal year relating to grants, compliance and contracts.

Vickie Thompson, Management Analyst, Senior Services, delivered a PowerPoint presentation and a brief overview of the accomplishments to date and outlined the goals and objectives for the upcoming fiscal year.

Natalie, Oros, Management Analyst, provided a brief overview of the accomplishments to date and outlined the goals and objectives for the upcoming fiscal year.

Christine Clayton, Finance Director, provided a PowerPoint presentation on this item.

RECOMMENDATION: RECEIVE & FILE
C. ADJOURN
Mayor Hussey adjourned the Special Meeting Workshop of the City Council at 5:48 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 ● May 12, 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, May 12, 2026 at 6:00 PM.

INVOCATION
The Invocation was given by Pastor Jonathan Tilt from Centerpointe Church.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Doug Wilson.

AB 2449 DISCLOSURES
None.

ROLL CALL

Present: Mayor Bill Hussey
Mayor Pro Tem Michelle Sabino
Council Member Doug Wilson
Council Member Jeff Allen - Participating remotely via teleconference Council Member Matt Brown

Absent:

A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA
Mayor Hussey requested to move agenda item No.17 before Item No.14.

B. PUBLIC COMMENT
Daysi Alcocer, City Clerk, read an email comment submitted to the Clerk’s Office by Renae Walker, resident and President of the Grand Terrace Community Soccer Club.

Michael O'Connell, a resident of Grand Terrace, provided comments regarding a broken gate in his community, and had questions regarding plaques for the Freedom Wall at Veterans Park.

Jenifer Parker, a resident of Grand Terrace and Lead Coordinator for the Grand Terrace Community Soccer Club, provided a comment on the electric scooters and signage for Richard Rollins Park.

C. SPECIAL PRESENTATIONS
Elysia Fernandez, a resident and President of Greater Grand Terrace Chamber of Commerce, was presented with a Certificate of Recognition for her outstanding work and commitment to the community.

Jose Armando Jauregui, Section Chief for the Planning Grants and Incentives with Housing & Community Development of California, provided a brief introduction and was requested to speak once Public Hearing Item No. 12 was presented.

D. CLOSED SESSION
Mayor Hussey recessed the Regular Meeting of the City Council to closed session at 6:26 p.m.

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 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

RECONVENE TO OPEN SESSION
Mayor Hussey reconvened the Regular Meeting of the City Council from closed session at 6:51 p.m.

REPORT OUT OF CLOSED SESSION
Adrian Guerra, City Attorney, announced that there was one (1) closed session item.

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

E. CONSENT CALENDAR

NO PUBLIC COMMENT
Adrian Guerra, City Attorney, noted for the record a discrepancy in the staff report for Consent Item No. 8. However, the third resolution attached to the staff report reflected the correct date.

Daysi Alcocer, City Clerk, noted for the record that all votes will be made via roll call.

ROLL CALL VOTE
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
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
3) Renewal of Memorandum of Understanding with Institute for Public Strategies and California Health Collaborative
4) Approve Additional Appropriations for Legal Services with Fennemore LLP in Connection with The Anthony Petta and Angeline Petta Family Trust Litigation 5) Amendment No. 1 to the Regional Partnership Agreement for Animal Shelter Services with the City of San Bernardino
6) 2025 Annual Progress Report for the City’s 2021–2029 Housing Element 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
8) 2026-27 Landscape & Lighting Assessment District 89-1 Public Hearing Intent 9) Award LED Sports Field Lighting Retrofit to F.E.C. Electric Inc. for $202,106 10) Amendment No. 3 to Willdan Group Agreement for On-Call Engineering and Building & Safety Plan Check Services
11) Award of Agreement for St. Francis Electric for Traffic Signal Maintenance and On-Call Emergency Services

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
Jose Armando Jauregui, Section Chief for the Planning Grants and Incentives with Housing & Community Development of California, formally introduced himself to the City Council.

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

Mayor Hussey provided a short video for this item.

Mayor Hussey opened the public hearing at 7:43 p.m.

PUBLIC COMMENT
Pastor Mark Matthews addressed the city council and provided public comment on this item.

Nidal Rafeedie, resident of Grand Terrace, addressed the city council and provided public comment on this item.

Juan Delgado, resident of Grand Terrace, addressed the city council and provided public comment on this item.

Mario H. Gomez, resident of Grand Terrace, addressed the city council and provided public comment on this item.

Hugo Cortez, resident of Grand Terrace, addressed the city council and provided public comment on this item.

Craig Austin, resident of Grand Terrace, addressed the city council and provided public comment on this item.

Michael Jimenez, resident of Grand Terrace, addressed the city council and provided public comment on this item.

Anita Ledesma, resident of Grand Terrace, addressed the city council and provided public comment on this item.

Saul Ortega, resident of Grand Terrace, addressed the city council and provided public comment on this item.

Mayor Hussey closed the public hearing at 8:05 p.m.

Mayor Hussey moved to approve the item; however, the motion failed due to lack of a second.

Adrian Guerra, City Attorney, advised the Council to continue the item to the next City

Council meeting to allow time for the City Attorney to provide proper legal guidance, including a review of the City’s legal obligations and a discussion of available options and potential ramifications.

Council Member Allen motioned to approve the staff recommendation, as is, seconded by Mayor Hussey.

Prior to the vote, Adrian Guerra, City Attorney, read the title of the ordinance and the corresponding resolution for the record.

ROLL CALL VOTE
Mayor Hussey motioned to bring the item back at a future meeting, seconded by Council Member Wilson.

ROLL CALL VOTE
Adrian Guerra, City Attorney, stated for the record that this item will be brought back as a continued public hearing at the next City Council Meeting.

RESULT: FAILED - 1 TO 4
MOVER: Council Member Allen
SECONDER: Mayor Hussey
AYES: Council Member Allen
ABSTAIN: None
NAYS: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Brown
RESULT: APPROVED 3 TO 2
MOVER: Mayor Hussey
SECONDER: Council Member Wilson
AYES: Mayor Hussey, Council Member Wilson, Council Member Allen ABSTAIN: None
NAYS: Mayor Pro Tem Sabino, Council Member Brown
13) First Reading & Introduction of an Ordinance – Zoning Code Amendment (ZCA) 26-01 – Agricultural Employee Housing (Housing Element Program 12) Gabriel Arguelles, Associate Planner, provided the PowerPoint presentation for this item.

Mayor Hussey opened the public hearing at 8:50 p.m.

PUBLIC COMMENT
Bobbie Forbes, resident of Grand Terrace, addressed the city council and provided

public comment on this item.

Mayor Hussey closed the public hearing at 8:52 p.m.

Council Member Brown motioned to approve the item with the removal of the agricultural overlays in areas that conflict with existing single-family homes, seconded by Mayor Hussey.

Adrian Guerra, City Attorney, requested clarification from Council Member Brown regarding his motion to revise the ordinance and to remove the AG employee housing component.

Council Member Brown clarified his motion to remove the AG employee housing components in areas conflicting with existing single-family housing, noting that revisions to the overlay and a study session should occur prior to ordinance approval, seconded by Mayor Hussey.

Prior to the vote, Adrian Guerra, City Attorney, advised that the item be continued to an uncertain date to incorporate the direction of the City Council and be re-noticed.

ROLL CALL VOTE
Mayor Hussey made a supplemental motion to approve the staff recommendation and adopt the ordinance, seconded by Council Member Allen.

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

ROLL CALL VOTE
RESULT: FAILED - 2 TO 3
MOVER: Council Member Brown
SECONDER: Mayor Hussey
AYES: Council Member Allen, Council Member Brown
ABSTAIN: None
NAYS: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson RESULT: APPROVED 4 TO 1
MOVER: Mayor Hussey
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen
ABSTAIN: None
NAYS: Council Member Brown

G. UNFINISHED BUSINESS - NONE
H. NEW BUSINESS
17) Community Benefit Fund Grant Award to the Grand Terrace High School Titan Wrestling Booster Club
Christine Clayton, Finance Director, provided the Staff Report for this item and presented Victor Zamora, President of the Grand Terrace High School Titan Wrestling Booster Club.

NO PUBLIC COMMENT

ROLL CALL VOTE
Mayor Hussey announced a short recess at 9:15 p.m. prior to proceeding with Item No.

14. Mayor Hussey reconvened the City Council Meeting from recess at 9:29 p.m.

RESULT: APPROVED - UNANIMOUS
MOVER: Mayor Hussey
SECONDER: Council Member Wilson
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
14) Informational Report on the J.C. Wallace Residential Care Facility Konrad Bolowich, City Manager, provided the PowerPoint presentation for this item.

Adrian Guerra, City Attorney, addressed the City Council and advised that the City’s policy and procedures provide that City Council meetings conclude at 10:00 p.m. He noted that, if desired, a member of the Council may make a motion to continue the meeting past 10:00 p.m., specifying the proposed end time.

Mayor Hussey motioned to continue the City Council meeting past the 10:00 p.m. deadline to 11:00 p.m., seconded by Council Member Brown.

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

Joshua Taylor, Deputy Director of 24-Hour and Specialty Services, and Alyce BelfordSaldana, Deputy Director of Adult Justice Programs, Homeless and Supportive Services Unit, both with the San Bernardino County Department of Behavioral Health, provided detailed information regarding the Department’s services and its coordination and work with J.C. Wallace.

PUBLIC COMMENT
Bobbie Forbes, Resident of Grand Terrace, provided a public comment on this item.

RECEIVE & FILE
15) Selection of a Site for New Pickleball Courts
Natalie Oros, Management Analyst, provided the PowerPoint presentation for this item.

PUBLIC COMMENT
Daysi Alcocer, City Clerk, read out an email comment submitted by David Mejia, resident of Grand Terrace.

Bryan Hegardt, resident of Grand Terrace provided a comment in favor of this item.

Bobbie Forbes, resident of Grand Terrace provided a comment in favor of this item.

Adrian Guerra, City Attorney, announced that the time was 11:00 p.m. and recommended that the Council complete the current item, proceed to Item No. 16 and continue Item No. 18 to a future City Council meeting. He further recommended that the meeting conclude at 11:15 p.m.

Council Member Brown motioned to extend the meeting to 11:15 p.m., seconded by Council Member Wilson.

ROLL CALL VOTE
Council Member Allen disconnected from the Zoom meeting at 11:04 p.m. due to the closure of the facility in which he was participating.

Council Member Brown motioned to approve the item with pickle ball courts to be placed at Veterans Freedom Park, seconded by Mayor Pro Tem Sabino.

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

ROLL CALL VOTE
RESULT: APPROVED 3 TO 0
MOVER: Council Member Brown
SECONDER: Mayor Pro Tem Sabino
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Brown ABSTAIN: Council Member Doug Wilson
NAYS: None
16) First Reading and Introduction of an Ordinance Formalizing Public Works Standard Plans and Streetlight Design Standard
Shanita Tillma, Senior Management Analyst, provided the staff report for this item.

NO PUBLIC COMMENT
Prior to the vote, Adrian Guerra, City Attorney, read the title of the ordinance into the record.

ROLL CALL VOTE
RESULT: APPROVED 3 TO 0
MOVER: Council Member Brown
SECONDER: Mayor Hussey
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Brown ABSTAIN: None
NAYS: None
18) Policy Governing Remote Participation and Enhancement of Public Participation in City Council and Commission Meetings to implement Senate Bill No. 707
This item will be brought back to the City Council at a future date.

I. FUTURE AGENDA ITEMS
None.

J. CITY COUNCIL COMMUNICATIONS
None.

K. COMMUNICATIONS FROM THE CITY MANAGER, SHERIFFS' DEPARTMENT,

AND FIRE DEPARTMENT
None.

L. ADJOURN
Mayor Hussey adjourned the Regular Meeting of the City Council at 11:12 p.m. The next Regular City Council Meeting will be held on Tuesday, May 26, 2026, at 6:00 p.m. _______________________________ _______________________________ Bill Hussey, Mayor Daysi Alcocer, City Clerk

AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Appoint Three (3) Planning Commission Members to Fill Three (3) New FourYear Terms Expiring on June 30, 2030 PRESENTED BY: Daysi Alcocer, City Clerk
RECOMMENDATION: APPOINT THE THREE (3) INCUMBENT PLANNING COMMISSIONER APPLICANTS TO NEW FOUR-YEAR TERMS EXPIRING JUNE 30, 2030 2030 VISION STATEMENT:

This action supports Our Mission: To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of fiscally responsible government.

BACKGROUND:

The Planning Commission is a five-member Board appointed by the City Council and serve four-year terms at the pleasure of the City Council (Municipal Code Chapter 2.16). The terms alternate so that every two (2) years at least two (2) appointments are set to expire. At the end of the 2025-26 fiscal year, Chair Edward Giroux and Planning Commissioners Aron Burian and Scot Mathis' terms are expiring.

The Table below depicts the current composition and terms of the Commission:

Name Appointed Re-Appointed Term
Ends
Chairman Edward Giroux 06/10/2014 06/28/2022 06/30/2026 Vice-Chair Tara Ceseña 06/10/2014
*Appointed to a
Short Term
ending on
6/30/2016
08/27/2024 06/30/2028
Commissioner David Alaniz 02/25/2020 08/27/2024 06/30/2028 Commissioner Scot Mathis 06/28/2022 -- 06/30/2026
Commissioner Aron Burian 06/28/2022 -- 06/30/2026
DISCUSSION:

On April 16, 2026, staff initiated the recruitment process for the three (3) Planning Commission seats with terms set to expire. The vacancies were publicly advertised through the City’s adjudicated newspaper, City News Group, as well as on the City of Grand Terrace’s official website and Facebook page. In addition, physical notices were posted at the public kiosks located at City Hall to ensure broad community awareness.

The application submission period remained open through Friday, May 15, 2026, at 5:00 p.m., providing interested residents with ample opportunity to apply.

At the close of the recruitment period, a total of three (3) applications were received. All application materials have been attached to this staff report for review. The applicants are as follows:
• Edward Giroux
• Aron Burian
• Scot Mathis
Staff notes that all three applicants are the current incumbent Planning Commissioners whose terms are expiring. Each applicant has expressed interest in continued service and remains in good standing.

Given that the number of applicants is equal to the number of available seats, and that all applicants are incumbents with demonstrated experience and familiarity with Planning Commission duties, it is the recommendation of staff to waive the formal interview and appointment process. Proceeding in this manner would promote continuity in Commission activities and avoid unnecessary administrative delays.

Accordingly, staff recommends that the City Council move directly to appoint Edward Giroux, Aron Burian, and Scot Mathis to serve additional terms on the Planning Commission.

ENVIRONMENTAL IMPACT:

NONE.

FISCAL IMPACT:

There would be no additional fiscal impact created by this action. Planning Commissioners are paid a stipend of $50.00 a month for attendance at a minimum of one meeting, which would continue with the new appointments.

AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Thirty-Fourth Amendment to Law Enforcement Services Contract No. 94-797 with the County of San Bernardino to Provide Law Enforcement Services for Fiscal Year 2026-2027 to the City of Grand Terrace
PRESENTED BY: Konrad Bolowich, City Manager
RECOMMENDATION: APPROVE THE THIRTY-FOURTH AMENDMENT TO LAW ENFORCEMENT SERVICES CONTRACT NO. 94-797 WITH THE COUNTY

OF SAN BERNARDINO TO PROVIDE LAW ENFORCEMENT SERVICES
FROM THE SHERIFFS’ DEPARTMENT FOR FISCAL YEAR 2026-27; AND

AUTHORIZE THE CITY MANAGER TO EXECUTE THE CONTRACT

SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM
2030 VISION STATEMENT:
• Goal #1, “Ensuring Our Fiscal Viability,” through the continuous monitoring of expenditure budgets, allocations, and operational costs; and
• Goal #2, “Maintaining Public Safety,” by ensuring adequate staff levels for police services for our Community.

BACKGROUND:

Since incorporation, the City has contracted with the County of San Bernardino for law enforcement services provided by the San Bernardino County Sheriff's Department (Exhibit 1 – Original Public Safety Services Contract). Each fiscal year, cities that contract for law enforcement services are required to approve a contract amendment that specifies the level of services for that fiscal year (Exhibit 2 - Schedule "A").

DISCUSSION:

As stated in the original 94-797 contract, law enforcement duties to the City shall include:
• enforcement of state statutes;
• enforcement of city ordinances;
• traffic enforcement;
• specialized enforcement such as arson, homicide, juvenile, and narcotics enforcement;
• and attendance at City meetings.

These services shall be provided by the County personnel as specified in the attached Proposed Schedule “A.”
The Proposed Schedule "A" includes the addition of a Sheriff's Service Specialist.

Effective July 1, 2026, Contract No. 94-797 to provide law enforcement services to the City of Grand

Terrace is hereby amended by replacing Schedule A referred to in Section II. CONSIDERATION, with Schedule A attached hereto and incorporated herein by this reference.

Except as amended, all other terms and conditions of this contract remain as stated therein.

ENVIRONMENTAL IMPACT:

None.

FISCAL IMPACT:

The Thirty-Fourth Amendment to the Agreement for law enforcement services is a contractual obligation of $3,002,651, of which may be subject to change upon approval of the Board of Supervisors. City staff has included a $3,061,144 budget allocation in the proposed FY2026-27 budget for law enforcement services.

EARLENE SPROAT, CLERK OF THE BOARD
BY
DATED : JULY 2
34b ITEM
• 94-797
Sheriff
Inc Cities
Grand Terrace

MINUTES OF THE BOARD OF SUPERVISORS

OF SAN BERNARDINO COUNTY, CALIFORNIA
JULY 26, 1994
FROM: RICHARD G. WILLIAMS, SF1RIFF
SUBJECT: LAW ENFORCEMENT SERVICE CONTRACT WITH THE CITY OF GRAND TERRACE RECOMMENDATION:

Approve law enforcement service contract with the City of Grand Terrace.

REASON FOR RECOMMENDATION:

During the past year the County and Cities receiving contract law enforcement services have negotiated a variety of issues which has resulted in revised language for the law cnforcement contracts. Approval of this contract will allow for old contract language to be replaced and update costs to current fiscal year 1 ;:ve.'s and continue services for FY 94/95. - REVIEW BY OTHER DEPARTMENTS:

This contract has been reviewed and approved as to form by County Risk Management and Chief Deputy County Counsel Ron Reitz.

FINANCIAL DATA:

The annual cost of $1,719,109 has been included in the Sheriff's Proposed Budget for FY 94/95. All costs associated with this contract will be recovered through contract reverie . No net cost to County.

Action of the Board of Supervisors
AGREEMENT NO. 94-797
APPROVER,,BOARD `OF SUPERVISORS
COUNTY00'iAN BERNARDINO

MOTION SECOND AYE AYE AYE MOVE
1 2 3 4 5
cc: Sheriff w/agreement
Contractor w/agreement
c/o Sheriff
Auditor w/agreement
Affirmative Action
Risk Management
CAO
File
ch

County of San Bernardino
F A S

STANDARD CONTRACT

FOR COUNTY USE ONLY
w X
E New
Chang
Cancel
e
Vendor Code I
I SC
Dept.

SHR
I
A
Contract Number
9 47-2 7
County Department Dept. Orgn.

SHERIFF SHR SHR
Contractor's License No.

County Department Contract Representative Ph. Ext.

ROBERT W. TREMAINE (909) 387-3746
Amount of Contract
*1,719,109.00
Fund Dept. Organization Appr. Obj/Rev Source Activity GRC/PROJ/JOB Number Commodity Code Estimated Payment Total by Fiscal Year
FY Amount I/D FY Amount I/D
Project Name 93/94 $859,596 I
CONTRACT LAW 94 / 95$895,513 I

ENFORCEMENT
THIS CONTRACT is entered into in the State of California by and between the County of San Bernardino, hereinafter called the County, and
Name

CITY OF GRAND TERRACE
Address
22795 BARTON ROAD
GRAND TERRACE, CA 92313
Phone Birth Date
Federal ID No. or Social Security No.

IT IS HEREBY AGREED AS FOLLOWS:
(Use space below and additional bond sheets. Set forth service to be rendered, amount to be paid, manner of payment, time for performance or completion, determination of satisfactory performance and cause for termination, other terms and conditions, and attach plans, specifications, and addenda, if any.)

AMENDED LAW ENFORCEMENT SERVICE CONTRACT
WHEREAS, CITY and COUNTY desire to provide by contract for performance of law enforcement services within the territorial boundaries of CITY; NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

I.

COUNTY shall provide, through the Sheriff of San Bernardino County (hereinafter referred to as "Sheriff"), law enforcement within the corporate limits of CITY as same now exist, or as such limits may be modified by annexation or exclusion during the term of this agreement.

The law enforcement services to be provided by COUNTY and furnished to CITY hereunder shall include:
hereinafter called CITY
02-12311.000 Rev. 11/91 Page 16 of Page 29 of 445
A. Enforcement of state statutes;
B. Enforcement of ordinances of CITY of the type customarily enforced by the Sheriff within the unincorporated territory of the County; C. Traffic enforcement, with the exception of such traffic enforcement as may be provided by the California Highway Patrol on the freeway traversing CITY; D. Detective, juvenile, and other specialized services such as arson, homicide, and narcotics enforcement;
E. Attendance at meetings of the City Counsel of CITY and such other meetings of commissions or boards of CITY as CITY may specify.

Services to be provided by COUNTY shall include Sheriff's personnel and automobiles as specified in Schedule "A" for law enforcement services. Those personnel and automobiles are to be assigned at the discretion of the Sheriff based on the needs of the community.

The services to be provided by COUNTY hereunder shall also include all equipment (including repairs thereto or depreciation thereon), supplies, communications, administration, labor, vacation, and sick leave, any COUNTY retirement contributions, gasoline, oil, and traveling expenses and all other services, obligations or expenditures necessary or incidental to the performance of the duties to be performed by Sheriff under the terms of this agreement. There shall be no reduction in COUNTY compensation under this agreement for normal downtime of vehicles. In all instances where special supplies, stationary, notices, forms, and the like are to be issued in the name of CITY and approved by the Sheriff, the same shall be supplied by CITY at its own cost and expense.

Nothing in this contract is intended to alter the effect of any statute or COUNTY ordinance related to fees for housing of inmates detained for CITY ordinance violations or for criminal justice administrative fees (Government Code Section 29550, et seq., San Bernardino County Code Section 16.027A). The CITY will be separately billed for those items.

IV.

In consideration for COUNTY'S furnishing and performance of all the services provided for herein, CITY shall pay to COUNTY, upon contract approval, the sum as per Schedule "A," attached per year, payable in monthly installments at the beginning of each calendar month during the period of this agreement. Payments shall be due by the fifth day of each month for that same month's services. Payments received after sixty (60) days of when due shall include simple interest after the 60th day against the amount owing, calculated at the COUNTY'S then current investment pool rate. Said sum is subject to adjustment for any salary increases or fringe benefits which may be granted by the Board of Supervisors to Sheriff's employees. The actual cost of overtime, court appearances, and travel expenses will be billed quarterly.

PAGE 2 of 6

COUNTY shall have the right to renegotiate the rate for services performed under this agreement at the end of each fiscal year, and said rate may be adjusted upward or downward to reflect the actual cost.

CITY is responsible for the validity of its ordinances, including any ordinances or codes incorporated by reference in CITY'S ordinances, and CITY shall defend, hold harmless, and indemnify COUNTY, its officers and employees with respect to any lawsuit or action challenging the validity of a CITY ordinance or with respect to any allegation that any arrest, citation, or other action taken by COUNTY, its officers or employees was taken under an invalid CITY ordinance, except in those cases where the invalidity of such ordinance is the result of actions by the Sheriff's Department.

Otherwise than is stated in this agreement, CITY shall not be obliged to pay, and assumes no liability for any cost, expenditure, charge, or liability whatsoever incurred by COUNTY in or related to the performance of the provisions of this agreement by COUNTY, and COUNTY shall, in consideration for the payment of the sums herein above provided to be paid by CITY to COUNTY, hold CITY harmless from any and all such costs, expenditures, charges, or liabilities except as otherwise provided in this agreement. CITY shall not be liable for compensation or indemnity to any COUNTY employee for injury or sickness arising out of his or her employment while engaged in the performance of this agreement by COUNTY.

CITY shall hold COUNTY harmless for a reduction in law enforcement services resulting from labor relation actions and CITY'S obligation to pay COUNTY shall be reduced for services not performed for that reason.

V.

The term of this contract shall be a period of time commencing on January 1, 1994, and terminating only as hereinafter provided. This agreement may be terminated at any time with or without cause by CITY or by COUNTY upon written notice given to the other at least one (1) year before the date specified for such termination. Any such termination date shall coincide with the end of a calendar month. In the event of such termination, each party shall fully pay and discharge all obligations in favor of the other accruing prior to the date of such termination and each party shall be released from all obligations or performance which would otherwise accrue subsequent to the date of such termination. In the event of termination of this agreement, the COUNTY shall refund any sum previously paid by CITY, which when prorated represents advance payment for months of service which are not performed as a result of such termination. Neither party shall incur any liability to the other by reason of such termination.

Notwithstanding the foregoing, in the event the Sheriff provides any services to CITY on a holdover basis after the date of contract termination, CITY shall fully reimburse COUNTY for all costs of providing such services.

COUNTY shall have the right to terminate this contract if CITY does not make timely payment of its obligations hereunder to COUNTY.

PAGE 3 of 6

Any and all notices required to be given hereunder shall be given in writing by registered or certified mail, postage prepaid. The addresses of the parties hereto until further notice are as follows:

CITY: City of Grand Terrace
22795 Barton Road
Grand Terrace, CA 92313
COUNTY: San Bernardino County Sheriff's Department
Bureau of Administration
P. O. Box 569
San Bernardino, CA 92402-0569
VI.

The standards of performance, the methods of performance, the discipline of officers, the control of personnel, the advancement in compensation of personnel, the determination of proper law enforcement practices and procedures, and all other matters incidental to the manner of performance of services by Sheriff hereunder shall be determined by the Sheriff at his sole discretion. The responsibility of Sheriff and of COUNTY to CITY hereunder shall be to provide, as an independent contracting agency, effective law enforcement of the level herein contracted for, and the CITY shall not have the right to determine or direct the manner or means of the performance.

VII.

All persons directly or indirectly employed by COUNTY in the performance of the services and functions to be provided to CITY hereunder, shall be employees of COUNTY, and no COUNTY employees shall have CITY pension, civil service, or other status or right. Notwithstanding the foregoing, and in order to give official status to the performance of duties by Sheriff's personnel hereunder, every Sheriff's officer or employee engaged in performing any such service or function shall be deemed to be an officer of CITY while performing service for CITY within the scope of this agreement, and such service function shall be a municipal function.

An arrest made by Sheriff's personnel while engaged in the performance of this agreement shall constitute an arrest by an officer employed by CITY, and not an arrest by COUNTY officer, within the meaning of Section 1463 of the Penal Code and any similar or related statute.

VIII.

CITY shall have the right at any time and from time to time during the term of this agreement to request a higher level of law enforcement than that herein contracted for, and within a reasonable time after such requests, COUNTY shall provide such additional personnel and vehicles as may be required to provide such additional law enforcement.

PAGE 4 of 6

In such event, all provisions of this agreement with respect to compensation to be paid by CITY shall remain in full force and effect, but in addition to payment of the sums herein provided, CITY shall pay COUNTY in monthly installments the cost of such additional law enforcement service.

IX.

In the event of riot, civil commotion, or other emergency in the CITY which requires additional emergency or "back-up" service, COUNTY shall provide the same.

In the event of authorized public gatherings in the CITY requiring additional police services, salaries and related costs shall be borne by CITY, except where such authorized public gatherings occur on state or federal property within the CITY limits, such additional costs shall not be chargeable against the CITY.

Not included in riots or related services are salaries or related costs of additional police services for authorized public gatherings. In the event of such an emergency outside of the corporate limits of CITY, personnel or equipment assigned by Sheriff to the performance of COUNTY'S duties hereunder may be utilized by COUNTY in connection with such emergency, however no more than fifty percent (50%) of available personnel and equipment may be assigned outside the CITY boundaries without the mutual agreement of the Sheriff and the City manager. In the event of a major emergency in the CITY and surrounding communities, Sheriff's personnel and equipment shall not be assigned outside the CITY boundaries at a level which would deter from the CITY'S ability to respond to the existing emergency. In cases where the City Manager or his or her designee cannot be consulted prior to such deployment, such advisement must be made to the City Manager's Office immediately or as soon as possible thereafter. In any case the City Manager must be personally informed of the situation immediately or as soon as possible thereafter. The CITY shall be reimbursed for any resultant service not performed.

X.

To facilitate the performance of services hereunder by COUNTY, CITY, its officers, agents, and employee shall give their full cooperation and assistance within the scope of the duties and responsibilities of such officers, agents, and employees.

CITY shall hold COUNTY, its Sheriff, officers, and employees harmless from any and all liability for intentional acts or negligence on the part of CITY, its officers and employees (excluding any employees of COUNTY engaged in the performance of municipal duties hereunder) arising out of the performance of this contract.

XI.

Sheriff shall be designated as the Chief of Police of CITY at all times during the term of this agreement.

PAGE 5 of 6

COUNTY OF N BER ARDINO
Chair
Dated
and of Supervisors
'JUL 26 1994
By
Revieweckfor ocessing
411, 41EN
IpAr viewed as to Affirmative Action
NoCounty ouns
Date 79--P°11-
02-12311-000 Rev. 11/91 Page 66 of
GRAND TERRACE, CA 92313
gthmdrnk.iftatodCAO
Date
Approved as to Legal
Date
Said Sheriff shall designate a station commander to work directly with and provide liaison with the City Manager and other CITY officers of the CITY. The Sheriff's commander shall make regular monthly reports to the City Manager, and such other reports as may be appropriate as determined by the Sheriff, with respect to law enforcement within the corporate limits of CITY.

SIGNEDAND cERT154B01,Tatc ,COPY OF THIS
DOCUMENT HAS Bp NO: T.6.1-, HE CHAIRMAN
OF THE BOARD.

Clerk of the Boaed,df pervisors of the County of San
Bernardino.

CITY OF GRAND TERRACE
(State if corporation, company,etc.)
By
(Authorizea Sig Wt.&
Dated 7 -N-14
Title Cif)/ frianqj nr
Address 22795 BARTON ROAD

SCHEDULE A RATES

LAW ENFORCEMENT CONTRACT

CITY OF GRAND TERRACE
FY 1993/94

SERVICE
FY 1993/94
COST*
1 - 168 Hour General Law Patrol Unit $474,141
2 - 40 Hour General Law Patrol Units 238,018
.50 - 40 Hour Detective Unit 60,726
1 - Community Service Officer 40,487
3 - Radar Units 1,653
1 - Portable Radar Trailer 2,107
.50 - Marked Unit (Sergeant) 6,719
1 - Unmarked Unit Non-Code 3 10,172
CAD/CLETS/RMS 1,107
County Direct Cost 24,466
TOTAL $859,596*

COUNTY DIRECT COSTS ARE THOSE COSTS ASSESSED TO THE SHERIFF'S DEPARTMENT BY THE COUNTY FOR:
o Personnel Liability Insurance
o Vehicle Insurance
o Personnel Bonding Fee
o Facilities Operations Cost

MONTHLY PAYMENT SCHEDULE
1st payment due July 15
2nd thru 12th payment due 5th of each month
$11,809
$10,944
$ 88
$ 1,625
$71,633
$71,633

ADDITIONAL COST BILLED QUARTERLY
City will be billed on a quarterly basis for:

Actual overtime cost (estimated overtime for
FY 1993/94 $8,000)
Professional services from private vendors
Services and supplies above contract formula
* Subject to change due to salary and benefit changes.
(07/01/93) PAGE 1 of 2

CITY OF GRAND TERRACE

LAW ENFORCEMENT CONTRACT

LEVEL OF SERVICE STAFFING GUIDE
FY 1993/94

SAFETY GENERAL
.25 Lieutenant 1.49 Station Clerks

1.06 Sergeant 1.10 Dispatcher
.56 Deputy III's 1.00 CSO

6.87 Deputy II's .17 Auto. Svcs.

8.74 3.76

VEHICLES EQUIPMENT

3.50 Marked Patrol 3 Radar Guns
.50 Unmarked 1 Portable Radar

1.00 Unmarked Non-Code 3 Trailer

5.00 (07/01/93) PAGE 2 of 2

SCHEDULE A RATES

LAW ENFORCEMENT CONTRACT

CITY OF GRAND TERRACE
FY 1994/95

SERVICE
FY 1994/95
COST*
1 - 168 Hour General Law Patrol Unit $493,176 2 - 40 Hour General Law Patrol Units 247,976 .50 - 40 Hour Detective Unit 63,888 1 - Community Service Officer 42,668 3 - Radar Units 1,725 1 - Portable Radar Trailer 2,107 .50 - Marked Unit (Sergeant) 6,864 1 - Unmarked Unit Non-Code 3 10,471 CAD/CLETS/RMS 1,107
County Direct Cost 25,531
TOTAL $895,513*

COUNTY DIRECT COSTS ARE THOSE COSTS ASSESSED TO THE SHERIFF'S DEPARTMENT BY THE COUNTY FOR:
o Personnel Liability Insurance $11,809
o Vehicle Insurance $12,009
o Personnel Bonding Fee 88
o Facilities Operations Cost $ 1,625

MONTHLY PAYMENT SCHEDULE
1st payment due July 15, 1994 $74,627
2nd thru 12th payment due 5th of each month $74,626

ADDITIONAL COST BILLED QUARTERLY
City will be billed on a quarterly basis for:

Actual overtime cost (estimated overtime for
FY 1994/95 $8,000)
Professional services from private vendors (i.e., towing, etc.) Services and supplies above contract formula
Subject to change due to salary and benefit changes.
(07/01/94) PAGE 1 of 2

CITY OF GRAND TERRACE

LAW ENFORCEMENT CONTRACT

LEVEL OF SERVICE STAFFING GUIDE
FY 1994/95

SAFETY GENERAL
.25 Lieutenant

1.06 Sergeant
.56 Deputy III's

6.87 Deputy II's

8.74 1.49 Station Clerks

1.10 Dispatcher

1.00 CSO
.17 Auto. Svcs.

3.76 VEHICLES EQUIPMENT

3.50 Marked Patrol 3 Radar Guns
.50 Unmarked 1 Portable Radar

1.00 Unmarked Non-Code 3 Trailer

5.00 (07/01/94) PAGE 2 of 2

Standard Contract Page 1 of 4

THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY Sheriff/Coroner/Public Administrator
Department Contract Representative Carolina Mendoza, Chief Deputy Director of Sheriff’s Administration
Telephone Number (909) 387-0640
Contractor City of Grand Terrace
Contractor Representative Konrad Bolowich, City Manager Telephone Number (909) 954-5175
Contract Term 07/01/2026 through 06/30/2027
Original Contract Amount $ 3,002,651
Amendment Amount --------------
Total Contract Amount $ 3,002,651
Cost Center 4413151000
IT IS HEREBY AGREED AS FOLLOWS:

AMENDMENT No. 34
Effective July 1, 2026, Contract No. 94-797 to provide law enforcement services to the City of Grand Terrace is hereby amended by replacing the Schedule A referred to in Section II. CONSIDERATION with the new Schedule A that is attached hereto and incorporated herein by this reference.

Except as amended, all other terms and conditions of this Contract remain as stated therein.

Contract Number
94-797 A-34
SAP Number
N/A

[With the exception of signatures, this page is intentionally left blank].

FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department Grace B. Parsons, Deputy County Counsel Carolina Mendoza, Chief Deputy Director of Sheriff’s Administration
Date Date Date
SAN BERNARDINO COUNTY City of Grand Terrace
(Print or type name of corporation, company, contractor, etc.) By
Dawn Rowe, Chair, Board of Supervisors (Authorized signature - sign in blue ink) Dated: Name Konrad Bolowich
SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract)

DOCUMENT HAS BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD Title City Manager
Lynna Monell
Clerk of the Board of Supervisors
San Bernardino County
(Print or Type)
By Dated:

Deputy
Address 22795 Barton Road
Grand Terrace, CA 92313-5207

SCHEDULE A
Law Enforcement Services Contract
City of Grand Terrace
2026-27
Add 1 SSS & 1 SSS Truck
FY 2026-27
COST

0.21 - Lieutenant 93,781 1

0.90 - Sergeant 326,591 1

0.56 - Detective/Corporal 173,774 1

5.76 - Deputy Sheriff 1,518,762 1

1.00 - Sheriff’s Service Specialist 104,913 1

1.26 - Law & Justice Office Specialist 132,055 1

3.00 - Marked Unit 68,956 2

0.50 - Unmarked Unit 5,698 2

0.50 - Command Staff Vehicle 8,198 2

1.00 - Pickup truck 11,557 2

1.00 - Citizen Patrol Truck 9,697 2
Dispatch Services 152,982 1

9.00 - HTs (Amortization, Access & Maintenance) 18,738
Administrative Support 11,949
Office Automation 29,356
Axon Contract 17,918
Vehicle Insurance 43,460
Personnel Liability & Bonding 232,890
Workers' Comp Experience Modification 4,775
County Administrative Cost 36,197
Startup Cost 404
Cost for FY2026-27 $ 3,002,651 1-5
Monthly Payment Schedule
$250,220
2 nd through 12th payments due the 5th of each month: $250,221 1 2
3 4
5 Personnel costs include salary and benefits and are subject to change by Board of Supervisors’ action. Changes in salary and benefit costs will be billed to the City on a quarterly invoice.

Vehicle costs do not include fuel and maintenance. The City is responsible for fuel, repair and maintenance of all contract vehicles, including collision damage. All fuel, repair and maintenance costs incurred by the County will be billed to the City on a quarterly invoice.

No replacement cost is included for grant funded or donated vehicles.

Services and supplies will be billed to the City on a quarterly invoice.

LEVEL OF SERVICE
1 st payment due July 15, 2026:

Grant funded, donated and non-replaceable vehicles will incur a vehicle insurance and equipment connection cost for the period the vehicle is in use. Page 41 of 445

SCHEDULE A
Law Enforcement Services Contract
City of Grand Terrace
2026-27
Additional Costs Billed Quarterly:

The City will be billed on a quarterly basis for the following items:
• Increase to salaries and benefits resulting from Board of Supervisors-approved changes to Memoranda of Understanding with the County’s various employee organizations. • Actual overtime costs.
• Actual on-call costs.
• Actual costs of vehicle fuel, repair and maintenance, including the costs of collision repair. • Actual costs for services and supplies.

SAFETY: GENERAL:

Lieutenant - 0.21 Law & Justice Office Specialist - 1.26 Sergeant - 0.90 Sheriff's Service Specialist - 1.00
Detective/Corporal - 0.56 Dispatchers - 0.94
Deputy Sheriff - 5.76 3.20

7.43 VEHICLES: DONATED VEHICLES LIST:

Marked Patrol Units - 3.00 Radar Trailer - 1.00 *
Safety Unmarked Units - 0.50 Yamaha UTV - 1.00 *
Command Staff Units - 0.50 2.00 *
Pickup Trucks - 1.00
Citizen Patrol - 1.00
Donated Vehicles-Ins Only - 2.00 *

8.00 * (Included for insurance costs only)

LEVEL OF SERVICE SUMMARY

SCHEDULE A
Law Enforcement Services Contract
City of Grand Terrace
2026-27
Add 1 SSS & 1 SSS Truck
FY 2026-27
COST

0.21 - Lieutenant 93,781 1

0.90 - Sergeant 326,591 1

0.56 - Detective/Corporal 173,774 1

5.76 - Deputy Sheriff 1,518,762 1

1.00 - Sheriff’s Service Specialist 104,913 1

1.26 - Law & Justice Office Specialist 132,055 1

3.00 - Marked Unit 68,956 2

0.50 - Unmarked Unit 5,698 2

0.50 - Command Staff Vehicle 8,198 2

1.00 - Pickup truck 11,557 2

1.00 - Citizen Patrol Truck 9,697 2
Dispatch Services 152,982 1

9.00 - HTs (Amortization, Access & Maintenance) 18,738
Administrative Support 11,949
Office Automation 29,356
Axon Contract 17,918
Vehicle Insurance 43,460
Personnel Liability & Bonding 232,890
Workers' Comp Experience Modification 4,775
County Administrative Cost 36,197
Startup Cost 404
Cost for FY2026-27 $ 3,002,651 1-5
Monthly Payment Schedule
$250,220
2 nd through 12th payments due the 5th of each month: $250,221 1 2
3 4
5 Personnel costs include salary and benefits and are subject to change by Board of Supervisors’ action. Changes in salary and benefit costs will be billed to the City on a quarterly invoice.

Vehicle costs do not include fuel and maintenance. The City is responsible for fuel, repair and maintenance of all contract vehicles, including collision damage. All fuel, repair and maintenance costs incurred by the County will be billed to the City on a quarterly invoice.

No replacement cost is included for grant funded or donated vehicles.

Services and supplies will be billed to the City on a quarterly invoice.

LEVEL OF SERVICE
1 st payment due July 15, 2026:

Grant funded, donated and non-replaceable vehicles will incur a vehicle insurance and equipment connection cost for the period the vehicle is in use. Page 43 of 445

AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Consideration of Approval of Amendment No. 10 to Waste Disposal Agreement No. 98-107 with the County of San Bernardino
PRESENTED BY: Konrad Bolowich, City Manager
RECOMMENDATION: APPROVE AMENDMENT NO. 10 TO WASTE DISPOSAL AGREEMENT NO. 98-107 WITH THE COUNTY OF SAN BERNARDINO EXTENDING THE TERM OF THE AGREEMENT THROUGH JUNE 30, 2035, ADJUSTING
THE WASTE DISPOSAL AGREEMENT CONTRACT RATE TO 83% OF
THE COUNTY’S POSTED GATE RATE, AND ELIMINATING THE ANNUAL

ADJUSTMENT FORMULA
2030 VISION STATEMENT:

This staff report supports Goal #1, Ensure our Fiscal Viability BACKGROUND:

The current Waste Disposal Agreement (WDA) between the County of San Bernardino and the participating WDA member cities is scheduled to expire on June 30, 2026. In anticipation of the agreement expiration, representatives from the County Solid Waste Department and the participating cities began discussions regarding a successor agreement.

Following those initial discussions, the participating WDA cities formed an Ad Hoc Working Group consisting of representatives from the cities of Apple Valley, Highland, Rialto, Victorville, Yucaipa, and Yucca Valley to facilitate negotiations with the County on behalf of the member agencies. Over the past eight months, the Working Group has engaged in discussions with County Solid Waste staff regarding disposal rates, rate adjustment methodology, and term length for a proposed successor agreement.

As a result of those negotiations, the County and participating agencies developed Amendment No. 10 to the existing Waste Disposal Agreement. The amendment includes the following primary provisions:
• Extension of the agreement term through June 30, 2035; • Adjustment of the WDA disposal rate to 83% of the County’s posted gate rate; • Elimination of the current annual adjustment formula; and • Future rate adjustments only when the County’s posted gate rate changes. • The proposed agreement term aligns with the County’s existing agreement with Athens Services.

DISCUSSION:

Under the current agreement structure, disposal rates are capped at 85% of the County’s approved

public gate rate, excluding the current CDSDP recycling fee of $12.00 per ton. For Fiscal Year 2025– 26, rates are expected to remain capped at $42.07 per ton.

Under Amendment No. 10, the disposal rate would be adjusted to 83% of the County’s posted gate rate. Based on current projections, the Fiscal Year 2026–27 disposal rate would be approximately $41.08 per ton. Additionally, the amendment eliminates the prior annual adjustment methodology, resulting in future rate changes occurring only when the County modifies its posted gate rate.

The proposed amendment provides greater predictability and transparency regarding future disposal rate adjustments while maintaining the City’s continued participation in the regional disposal system.

Continued coordination among participating WDA member agencies also provides a stronger collective position regarding future discussions involving landfill operations, disposal fees, and agreements involving outside waste haulers utilizing County landfill facilities.

The amendment requires approval and execution by all participating WDA member agencies and the County of San Bernardino in order to become effective. If all participating agencies do not approve the amendment prior to June 30, 2026, the amendment becomes null and void pursuant to its terms.

ENVIRONMENTAL IMPACT:

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

FISCAL IMPACT:

The current Fiscal Year 2025–26 disposal rate is projected to remain capped at $42.07 per ton under the existing agreement structure.Under the proposed amendment, the Fiscal Year 2026–27 disposal rate would be approximately $41.08 per ton, representing a reduction of approximately $0.99 per ton compared to the current capped rate. Actual fiscal impacts will depend on future disposal volumes and any future adjustments to the County’s posted gate rate.

NOEL CASTILLO, P.E.

Director
Attachment
222 W. Hospitality Lane, 2nd Floor, San Bernardino, CA 92415-0017 | Phone: 909.386.8701 Fax: 909.386.8900 Department of Public Works • Flood Control • Special Districts • Operations • Surveyor
• Solid Waste Management • Transportation
Noel Castillo, P.E.

Director
Byanka Velasco, P.E.

Assistant Director
David Doublet, M.S., P.E.

Assistant Director
May 21, 2026
Konrad Bolowich
City Manager
City of Grand Terrace
22795 Barton Road
Grand Terrace, CA 92313
RE: SOLID WASTE MANAGEMENT ANNUAL FINANCIAL STATEMENTS – FISCAL YEAR 2024-25
Dear Mr. Bolowich:

Pursuant to the Waste Disposal Agreement (WDA) amendment effective July 1, 2016, Section 4.6 requires the County of San Bernardino Department of Public Works – Solid Waste Management Division (SWMD) to conduct an annual meeting with the WDA Cities/Towns to review the Annual Financial Statements from the County’s AuditorController/Treasurer/Tax Collector’s Office from the prior Fiscal Year.

Attached is a summary of the Annual Financial Statements for the Fiscal Years ended June 30, 2025, and June 30, 2024, for the cities’ review. Please note that SWMD’s net position increased by $20.9 million from Fiscal Year 2024 to 2025, primarily due to a delay in capital improvement projects (CIP), an increase in fair value of investments and higher than expected interest earnings. However, SWMD expects to spend over $133 million during the following two fiscal years on CIP, decreasing our net position by a commensurate amount.

After reviewing the summary, should the cities/towns desire to meet to discuss the statements, please contact Marc Rodabaugh at (909) 386-8701 to coordinate that effort.

Sincerely,

2025 2024 Difference
Operating Revenues $ 117,274,829 $ 109,365,313 $ 7,909,516 Operating Expenses 114,441,615 103,248,478 $ 11,193,137 Operating Income (loss) 2,833,214 6,116,835 $ (3,283,621) Non-Operating Revenues (Expenses) 18,061,112 34,594,684 $ (16,533,572) Change in Net Position Before Transfers 20,894,326 40,711,519 $ (19,817,193) Transfers In/(Out) 1,537 - $ 1,537
Change in Net Position 20,895,863 40,711,519 $ (19,815,656) Total Net Position - Beginning 212,428,997 172,221,973 $ 40,207,024 Change in accounting principle (504,495)
Total Net Position - Ending $ 233,324,860 $ 212,428,997 $ 20,895,863 2025 2024 Difference
ASSETS
Total current assets $ 337,336,911 $ 302,524,006 $ 34,812,905 Total noncurrent Assets 168,781,488 169,654,140 $ (872,652) Total Assets 506,118,399 472,178,146 $ 33,940,253
Deferred outflows related to pensions 2,368,175 3,379,814 (1,011,639) Total assets and deferred outflows of resources 508,486,574 475,557,960 32,928,614

LIABILITIES
Current liabilities 37,888,792 40,244,730 (2,355,938)
Noncurrent liabilities 236,163,730 221,365,414 14,798,316 Total liabilities 274,052,522 261,610,144 12,442,378
Deferred inflows related to pensions 1,109,192 1,518,819 (409,627) Total liabilities and deferred inflows of resources 275,161,714 263,128,963 12,032,751

NET POSITION
Net investment in capital assets 152,895,550 151,489,194 1,406,356 Restricted 23,809,070 27,789,070 (3,980,000)
Unrestricted 56,620,240 33,150,733 23,469,507
Total net position $ 233,324,860 $ 212,428,997 20,895,863 Statement of Net Position
June 30, 2025 and June 30, 2024
County of San Bernardino
Solid Waste Management Division
Statement of Revenues, Expenses, and Changes in Fund Net Position For Fiscal Years Ended June 30, 2025 and June 30, 2024
County of San Bernardino
Solid Waste Management Division
05/21/2026 10:31 AM
C:\Users\p2040\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\DKFW04SS\SWM Financial Statements for 2025 and 2024

March 13, 2025
Konrad Bolowich
City Manager
City of Grand Terrace
22795 Barton Road
Grand Terrace, CA 92313
RE: FISCAL YEAR 2025-2026 WASTE DELIVERY AGREEMENT (WDA) CONTRACT RATE

CALCULATION
Dear Mr. Bolowich:

The purpose of this letter is to notify you the FISCAL YEAR 2025-26 Final WDA rate of $42.07 per ton will be effective July 1, 2025 through June 30, 2026, for waste disposal services provided to your city pursuant to the WDA agreement with San Bernardino County.

The Department of Public Works – Solid Waste Management Division has calculated the Cost of Living Adjustment as prescribed in Amended Section 4.2(B) Calculation of Escalation of the amended WDA from June 2022 (Amendment). The Amendment provides that in no case will the adjustment to the WDA rate exceed 85% of the County’s approved general public gate rate (without the current CDSDP recycling fee of $12.00). On April 25, 2023, the Board of Supervisors approved the current gate rate of $49.49 per ton.

No gate rate increase is proposed for Fiscal Year 2025-26. Therefore, the WDA rate for the upcoming fiscal year will remain capped at $42.07 per ton for 2025-26. The calculation worksheet is attached for your information.

The $42.07 per ton final Contract Rate will be applied to your July 2025 tonnage on your WDA credit accounts that will be billed approximately on August 15, 2025. If you have any questions about this notice or the rate calculation, please call me at (909) 386-8701 or Jennifer Munoz at (909) 387-1871.

Sincerely,
MARC RODABAUGH, P.E.

Deputy Director
Attachment: WDA Rate Calculation
cc: Mary Patterson, Solid Waste Analyst
Jennifer Munoz, Senior Supervising Accountant
Lori Cram, Accountant III
Department of Public Works • Flood Control • Special Districts • Operations • Surveyor
• Solid Waste Management • Transportation
Noel Castillo, P.E.

Director
Byanka Velasco, P.E.

Assistant Director
David Doublet, M.S., P.E.

Assistant Director
222 W. Hospitality Lane, 2nd Floor, San Bernardino, CA 92415-0017 | Phone: 909.386.8701 Fax: 909.386.8900

Fixed Portion of Rate $10.87
Escalating Portion of Rate $17.63
Total Rate $28.50
EI = Employment Cost Index - Series ID: CIU2010000000000I (8) (Compensation, Not Seasonally Adjusted, Private Industry Workers, Quarter ending September) (For EI2 refer to Page 10 of the DoL BLS Series Report attached) EI1 for Quarter ending September 2024 166.40
EI2 for Quarter ending September 1997 - revised base year of 2005 = 100.00 74.20 Index difference 92.20
Percentage change 124.26%
PPI = Producer Price Index - Series ID: WPU03thru15
(Commodities, Industrial Commodities, Not Seasonally Adjusted) PPI1 for September 2024 252.50
PPI2 for September 1997 127.70
Index difference 124.80
Percentage change 97.73%
Cost of Living Adjustment
1) Labor Adjustment = Labor Percent X Percentage Change in EI

30.00% X 124.26% = 37.28%
2) Other Adjustment = 100% less Labor Percent X Percentage Change in PPI

70.00% X 97.73% = 68.41%
Cost of Living Percent Adjustment 105.69%
Escalation Amount $18.63
FY 2025/2026 WDA Rate
Fixed Portion of Rate $10.87
Escalated Portion $17.63 + $18.63 = $36.26
WDA Renewal Discount, eff. July 1, 2016 ($0.82)
Change in Law (per ton calculation) $0.00
Total Rate $46.31
85% of Gate Rate ($49.49 approved by the Board on 4/25/23) for FY 25/26 $42.07 Cell input to tie to index table value
FISCAL YEAR 2025/2026

WASTE DELIVERY AGREEMENT
COLA ADJUSTMENT PER AGREEMENT SECTION 4.2(B)
Effective July 1, 2025
N:\WDA - FY2025-26 Rate Change Computation\WDA Calc-Final Printed: 03/13/2025

Employment Cost Index
Data extracted on: February 3, 2025 (11:42:28 AM)
Series Id: CIU2010000000000I (8)
Not Seasonally Adjusted
compensation: Total compensation
sector: Private industry
periodicity: Index number
Industryocc: All workers
Year Qtr1 Qtr2 Qtr3 Qtr4
2001 85 85.8 86.7 87.3
2002 88.2 89.2 89.7 90
2003 91.4 92.3 93.2 93.6
2004 94.9 95.9 96.7 97.2
2005 98.2 98.9 99.5 100
2006 100.8 101.7 102.5 103.2
2007 104 104.9 105.7 106.3
2008 107.3 108 108.7 108.9
2009 109.3 109.6 110 110.2
2010 111.1 111.7 112.2 112.5
2011 113.3 114.3 114.6 115
2012 115.7 116.4 116.8 117.1
2013 117.9 118.6 119 119.4
2014 119.9 121 121.7 122.2
2015 123.2 123.3 124 124.5
2016 125.4 126.2 126.8 127.2
2017 128.3 129.2 130.0 130.5
2018 131.9 132.9 133.8 134.4
2019 135.6 136.4 137.4 138
2020 139.4 140.1 140.7 141.6
2021 143.3 144.4 146.4 147.8
2022 150.2 152.4 154.0 155.3
2023 157.4 159.2 160.6 161.6
2024 163.8 165.4 166.4 167.4
http://www.bls.gov/ncs/ect/cimapnote.htm#8
Employment Cost Trends
Producer Price Index-Commodities
Data extracted on: February 13, 2025 (11:14:54 AM)
Series Id: WPU03THRU15
Not Seasonally Adjusted
Group: Industrial Commodities
Item: Industrial commodities
Base Date: 198200
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 1996 126.4 126.3 126.4 127.3 127.5 127.1 127 127.3 127.4 127.5 128 129.3 127.3 1997 130.3 128.9 127.1 126.7 127 127.2 127 127.3 127.7 128.1 128.2 127 127.7 1998 125.9 125.3 125 125.3 125.5 125.1 125.3 124.5 124.1 124.2 123.8 123.3 124.8 1999 123.1 122.7 123.1 124.6 125.6 126.1 127 128.1 129.3 129 129.8 129.4 126.5 2000 130 131.5 132.6 132.2 133 135.9 135.9 135.2 137.3 137.8 137.3 138.5 134.8 2001 142.9 139.7 137.7 138.2 138.6 137.1 134.5 134.3 134.3 131.1 130.9 129.1 135.7 2002 129.4 129.1 130.5 132.4 132.3 132.4 132.6 132.8 133.7 134.8 134.7 134.4 132.4 2003 136.7 139.3 143.6 138.2 137.8 139.2 139.1 139.1 139.1 139.2 138.8 139.5 139.1 2004 142.2 142.8 143.3 144.8 146.5 147.3 148.2 149.3 149.1 151.8 153.5 152 147.6 2005 152.7 153.6 155.6 157.2 156.3 156.6 159.1 160.8 166 170.6 167.6 166.5 160.2 2006 168.3 165.7 166.3 168.8 170.6 170.6 171.3 172.4 169.2 165.4 168 168.9 168.8 2007 166.8 169.1 171.6 173.9 176 176.4 177.9 174.9 175.6 176.9 181.8 180.7 175.1 2008 182.8 184.6 190.2 193.8 200 204 209.5 202.4 200.1 189.3 178.4 172.3 192.3 2009 172.6 170.8 169.5 170.3 172 175.5 174.6 177.7 176.9 177.8 180.1(R) 180.4 174.8 2010 184.6 183.6 185.6 187 187.2 186.4 186.7 187.5 186.8 188.4 189.2 191.3 187 2011 194.2 196.4 200.4 204.2 205.7 205 205.9 203.7 204.4 201.9 202.1 200.6 202 2012 201.4 202.4 205.1 204.7 202.6 200 199.6 202.1 203.8 202.8 200.7 200.4 202.1 2013 201.6 204.1 203.3 203.2 203.3 203.4 203.6 204.1 203.9 202.5 201.1 202 203 2014 203.8 205.8 206.2 206.7 206.5 207 206.8 206.1 205.2 201.9 198.9 195 204.1 2015 189.8 189.6 190 189.3 191.8 193.2 192.3 190.1 187.4 186 184.2 182.3 188.8 2016 180.9 179.4 180.4 181.9 184 186.3 186.7 186.2 186.7 187.3 186.5 188.3 184.6 2017 191 191.7 191.4 192.8 192.4 192.9 192.9 193.9 195.5 195.6 196.7 197.2 193.7 2018 199.1 200.5 199.8 201.3 204.4 205.8 206.5 206.1 206.6 207.6 204.6 202.3 203.7 2019 200.2 200.3 202.2 203.3 202.9 200.9 201.5 200.2 199.5 199.1 199.2 199 200.7 2020 199.3 196.9 192.8 184.7 185.8 190.4 193 194.7 195.6 195.7 197.3 200.7 193.9 2021 204.9 211.2 216 218.1 224.4 228.9 233.342 234.559 237.224 243.292 246.079 243.197 228.434 2022 248.353 254.505 261.472 266.192 275.185 283.567 274.425 271.526 269.539 266.225 262.822 256.798 265.884 2023 260.405 259.210 257.045 256.747 253.697 253.770 254.313 259.364 261.030 256.993 253.969 250.571 256.426 2024 252.604 256.3 255.916 258.004 255.61 256.159 257.927 256.134 252.503 53.405(P) 52.165(P) 52.360(P) 54.924(P) P : Preliminary. All indexes are subject to revision four months after original publication. 8 : See Footnote 8 on www.bls.gov/ect/cimapnote.htm.

FISCAL YEAR 2025/2026

WASTE DELIVERY AGREEMENT
COLA ADJUSTMENT PER AGREEMENT SECTION 4.2(B)
Footnote 8: Some estimates from September 2012 to March 2013 for this series were corrected on June 26, 2013. Details on the extent of the corrections are available at www.bls.gov/bls/eci_corrections_043013.htm.

N:\WDA - FY2025-26 Rate Change Computation\ECI - PPI Tables Printed: 03/13/2025

AMENDMENT NO. 10 TO THE
WASTE DISPOSAL AGREEMENT NO. 98-107
On February 24, 1998, the City of Grand Terrace (“City”) and the County of San Bernardino (“County”) entered into a Waste Disposal Agreement (“WDA”). The parties hereby amend the WDA, on the Effective Date as provided herein, by their respective execution of this agreement (hereinafter “Amendment’).

Recitals
A. The parties have previously entered into the following amendments to the WDA. Amendment No. 1 to the WDA was to correct the designated disposal facilities for the City. Amendment No. 2 was to implement the “Article 19 Solid Waste” component of the County’s waste management system and define the City’s share of that revenue. Amendment No. 3 was to increase the annual maximum limits of “Article 19 Solid Waste” in the County landfill system. Amendment No. 4 allowed the County to charge the fee of $10.00 per ton (prorated) for identified controllable waste of the City (e.g., roll off container trucks and other County/City vehicles such as pickups and dump trucks) and have such waste subject to being processed in the recycling program. Amendment No. 5 allowed the County to calculate the annual cost of living adjustment earlier in the calendar year. Amendment No. 6 extended the end date of the WDA to June 30, 2016. Amendment No. 7 extended the term of the WDA to June 30, 2021, applied an annual fixed WDA renewal discount adjustment of $0.82 per ton for the term of the WDA, and allowed the County to enter into agreements to accept in-County waste from non-WDA users of the Disposal System at a rate lower than the WDA Contract Rate in exchange for sharing the net revenue generated from those agreements. Amendment No. 8 reset the WDA Contract Rate and extended the term for five (5) years to June 30, 2026. Amendment No. 9 capped the WDA Contract Rate in order to maintain a 15% buffer between the WDA Contract Rate and the County’s posted gate rate.

B. In connection with the ongoing administration of the WDA, the parties have determined it is now in their best interests to extend the term 9 years to June 30, 2035, adjust the WDA Contract Rate to be equal to 83% of the County’s posted gate rate, and eliminate the provision for annual adjustments.

NOW THEREFORE, in consideration of the forgoing recitals and the following covenants and promises the Parties agree as follows:

1. Section 4.2, entitled “CONTRACT RATE” is hereby deleted and replaced in its entirety to read:

SECTION 4.2 CONTRACT RATE. Effective July 1, 2026, and each July 1 thereafter during the term of the Agreement, the Contract Rate shall be equal to 83% of the County’s posted gate rate effective that July 1st. For July 1, 2026, the County’s posted gate rate is $49.49 ($61.49 minus the $12 CDSDP fee); therefore, the WDA Rate, effective July 1, 2026, will be $41.08 per ton.

Please note that, due to timing, in future years where the gate rate is recommended to be increased, the WDA rate notification letter may be delayed until final approval of the gate rate by the Board of Supervisors.

2. Section 5.2, entitled “CITY CONVENIENCE TERMINATION” is hereby deleted and replaced in its entirety to read:

SECTION 5.2 CITY CONVENIENCE TERMINATION. In exchange for adjusting the WDA Contract Rate to be equal to 83% of the County’s posted gate rate, the City agrees to commit to remaining a WDA City, with no provision to terminate without cause, for the remainder of the WDA Term.

3. Section 6.1, entitled “EFFECTIVE DATE AND TERM”, paragraph (A) Term, is hereby deleted and replaced in its entirety to read:

SECTION 6.1. EFFECTIVE DATE AND TERM. (A) Term. This Agreement shall become effective, shall be in full force and effect and shall be legally binding upon the City and the County from the Contract Date and shall continue in full force and effect until June 30, 2035, unless earlier terminated in accordance with its terms.

4. Effective Date. This Amendment shall be effective if and only when all fifteen cities/towns listed on Exhibit A have each adopted and executed a counterpart of this Amendment No. 10 (the amendment number may differ for each city/town listed on Exhibit A) and such amendment has been adopted and executed by the County on or before June 30, 2026. In all events, the conditions in the forgoing sentence shall occur otherwise this Amendment No. 10 shall be null and void and without any effect whatsoever.

5. This Amendment may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Amendment.

The parties shall be entitled to sign and transmit an electronic signature of this Amendment (whether by facsimile, PDF or other email transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Amendment upon request.

6. Except as modified in this Amendment (or in any prior Amendment(s)) all other terms and conditions of the WDA shall remain in full force and effect.
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IN WITNESS WHEREOF, San Bernardino County and the City have each caused this Amendment to be subscribed by its respective duly authorized persons, on its behalf.

SAN BERNARDINO COUNTY City of Grand Terrace
(Print or type name of corporation, company, contractor, etc.) By
Dawn Rowe, Chair, Board of Supervisors (Authorized signature - sign in blue ink) Dated: Name
SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract)

DOCUMENT HAS BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD Title
Lynna Monell
Clerk of the Board of Supervisors
of San Bernardino County
(Print or Type)
By Dated:

Deputy
Address 22795 Barton Road
Grand Terrace, CA 92313

EXHIBIT A

CITIES/TOWNS WITH A WASTE DELIVERY AGREEMENT

WITH THE COUNTY OF SAN BERNARDINO
OFFERED THIS AMENDMENT JUNE 2026
FOR AN AGREEMENT END DATE OF JUNE 30, 2035

1. ADELANTO

2. APPLE VALLEY

3. BARSTOW

4. BIG BEAR LAKE

5. COLTON

6. FONTANA

7. GRAND TERRACE

8. HESPERIA

9. HIGHLAND

10. LOMA LINDA

11. RIALTO

12. TWENTYNINE PALMS

13. VICTORVILLE

14. YUCAIPA

15. YUCCA VALLEY

AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Professional Services Agreement Amendment No. 2 Between the City of Grand Terrace and HDL Companies for Business License Auditing and Administration Services
PRESENTED BY: Christine Clayton, Finance Director
RECOMMENDATION: APPROVE PROFESSIONAL SERVICES AGREEMENT AMENDMENT NO. 2 WITH HDL COMPANIES (HDL) FOR BUSINESS LICENSE AUDITING AND ADMINISTRATION SERVICES FOR A TERM OF 1 YEAR AND A
MAXIMUM COST OF $15,000.00; AND

AUTHORIZE THE MAYOR TO EXECUTE THE AGREEMENT SUBJECT TO

CITY ATTORNEY APPROVAL AS TO FORM
2030 VISION STATEMENT:

This staff report supports Goal #1, Ensuring Our Fiscal Viability, by ensuring the City is receiving the business tax revenue to which it is entitled per City ordinance, while also exploring creative means to provide business license administrative services.

BACKGROUND:

In an effort to ensure that all entities doing business with the City have obtained a business license and paid the proper amount of business tax, the Finance Department prepared a Request for Proposal (RFP) for Business License Auditing and Administration Services in October 2020.

These services are specialized in nature and require comprehensive data analysis of records obtained from State agencies, such as the State Board of Equalization and the Franchise Tax Board.

In addition to performing an audit of the business license function, the RFP also requested proposals and pricing for ongoing administration services, to include processing of new applications, processing of annual renewals, and online filing and payment capability. These services were solicited in an effort to improve the City’s efficiency and offer more convenient online processing and payment options for the City’s businesses.

Following this evaluation process, staff selected HDL Companies as the company that would best meet the City’s objectives for Business License Auditing and Administration Services as identified in the RFP. The City signed an agreement with HDL Companies with a 5-year term that was set to expire October 2025. Amendment No. 1 to this agreement was passed by City Council on May 13, 2025 to extend the term for (1) additional year.

DISCUSSION:

It is City staff’s assessment that HDL provides adequate service for the City due to their local location, customer service reputation, and the implementation of Compliance Management Services. The proposed agreement is structured for ongoing administration and discovery/audit services as well, which are expected to provide enhanced efficiency and customer service due to HDL’s specialization

in this area. In particular, providing businesses with the ability to apply for a business license online, renew a business license online, and remit payment of the business tax online represents significant efficiencies for the City.

While a key objective of the Business License Audit and Administration Services is to ensure that all entities doing business with the City have a current business license and pay the correct amount of business tax, the compliance effort will be conducted in a manner to promote good relations with the City’s businesses. City staff and HDL staff work cooperatively throughout the process to provide prompt and comprehensive responses to any questions or concerns coming from businesses.

Amendment No. 1 to the Professional Services Agreement for Business License Auditing and Administration Services extended the term of the contract for (1) additional year at the projected cost of $15,000.00 per fiscal year. Since this is based on the original cost estimate made in 2020, additional appropriations are also required to account for rising costs of services.

Staff is recommending that City Council approve the Professional Services Agreement Amendment No. 2 with HDL Companies for Business License Auditing and Administrative Services for a term of one (1) year for a maximum cost of $15,000.00.

ENVIRONMENTAL IMPACT:

N/A
FISCAL IMPACT:

The term of the proposed agreement is one (1) year and will have a total not to exceed the amount of $15,000.00 over that period. This amount will be budgeted accordingly in the FY2026-27 Budget.

2020-03

AGREEMENT FOR CONTRACT SERVICES
By and Between

CITY OF GRAND TERRACE
and

HDL COMPANIES
01247. 0001/ 635149. 3
Special offer
for Cityof Grand Terrace Forrester Research Inc.City of Grand Terrace 60 Acorn Park Dr. 22795 Barton Road Cambridge, MA 02140 Grand Terrace, CA 92313 USA USA www feedbacknow. com Client-#:0387 Offer-#* 03422 January2,
2020 ilson; Mayor McNaboe 1 NOES: None. ABSENT: Council Member Robles ABSTAIN: None. Executed this 15th day of July 2020, at Grand Terrace, California. I_Debra L. Thomas City Clerk J City Clerk SEAL]

AGREEMENT FOR CONTRACT SERVICES

BY AND BETWEEN THE CITY OF GRAND TERRACE AND

HDL COMPANIES
This " AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND HDL COMPANIES" ( herein " Agreement") is made and entered into this 22nd day ofApril, 2020 by and between the City ofGrand Terrace, a California municipal corporation (" City") and HdL Companies, a California corporation (" Consultant"). City and Consultant are sometimes hereinafter individually referred to as " Party" and hereinafter collectively referred to as the " Parties."

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

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

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

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

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

ARTICLE 1. SERVICES OF CONSULTANT

1. 1 Scope of Services.

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

As a material inducement to the City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Consultant covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase" highest 01247. 0001/ 635149. 3
2-
Transportation Proiects( thresholds may apply for SB 743 or GHG purposes) Resolution No.2020- 26Page 3of
4 we will not share with the other
insurance,
apply to the 1) The " provided that: f. This insurance does not bodily or "
injury"
property damage" for rendering _ ofor failure
to render any professional services". which coverage is sought occurs; and g. In the event that the Limits of Insurance of the 2) The " personal injury" for which coverage is Coverage Part shown in the Declarations sought arises out of an offense committed; exceed the limits of liability required by the after you have signed that "written contract written contract requiring insurance", the requiring insurance". But this insurance provided insurance provided to the additional insured to the additional insured still is excess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary, by that "written contract requiring insurance". excess, contingent or on any other basis, that is This endorsement does not increase the available to the additional insured when that limits of insurance described in Section III — person or organization
is an additional insured Limits Of Insurance. under any other insurance. CG D3 81 09 15 2015 The Travelers Indemnity Company All rights reserved. Page 1 of 2 Includes the copyrighted
materialofInsurance Services Office, Inc.,with its permission ACCORDANCE

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

1. 2 Consultant' s Proposal.

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

1. 3 Compliance with Law.

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

1. 4 Licenses, Permits, Fees and Assessments.

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

1. 5 Familiarity with Work.

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

1. 6 Care of Work.

The Consultant shall adopt reasonable methods during the life ofthe Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/ or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City' s own negligence.
01247. 0001/ 635149. 3
3-
share with the other insurance, provided that: f. This insurance does not apply to the 1) The "bodily injury"
or " property damage" for rendering _ of or failure torender any professional services". which coverage is sought occurs; and g. In the event that the Limits of Insurance of the 2) The " personal injury" for which coverage is Coverage Part shown in the Declarations sought arises out of an offense committed; exceed the limits of liability required by the after you have signed that " written contract written contract requiring insurance", the requiring insurance".

But this insurance provided insurance provided to the additional insured to the additional insured still is excess over valid shall be limited tothe limits of liability required and collectible other insurance, whether primary, by that " written contract requiring insurance". excess, contingent or on any other basis, that is This endorsement does not increase the available to the additional insured when that limitsof
insurance described in Section III — person or organization isan additional insured Limits Of Insurance. under any other insurance. CG D3 81 09 15 2015 The Travelers Indemnity Company All rights
reserved. Page 1 of2 Includes the copyrighted material of

1. 7 Further Responsibilities of Parties.

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

1. 8 Additional Services.

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

City may in its sole and absolute discretion have similar work done by other consultants. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.

1. 9 Special Requirements.

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

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2. 1 Contract Sum.

Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the " Schedule of Compensation" attached hereto as Exhibit " C" and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Seventy Five Thousand Dollars ($ 75, 000) ( the" Contract Sum"), unless additional compensation is approved pursuant to Section 1. 8. 01247 0001/ 635149. 3
4-
share with the other insurance, provided that: f. This insurance does not apply to the 1) The " bodily injury" or "property damage" forrendering _ of or failure to render any professional services". which coverage is sought occurs; and g.

In the event that the Limits of Insurance of the 2)
The "personal injury" for which coverage is Coverage Part shown in the Declarations sought arises out of an offense committed; exceed the limits of liability required by the after you have signed that "written contract written contract requiring insurance", the requiring insurance". But this insurance provided insurance provided to the additional insured to the additional insured still is excess over valid shall be limited to the limits ofliability required and collectible other insurance, whether primary, by that "written
contract requiring insurance". excess, contingent or on any other basis, that isThis endorsement does not increase the available to the additional insured when that limits of insurance described inSection
III — person or organization is an additional insured Limits Of

2. 2 Method of Compensation.

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

2. 3 Reimbursable Expenses.

Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4. 5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City.

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

2. 4 Invoices.

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

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

City shall independently review each invoice submitted by the Consultant to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Consultant which are disputed by City, or as provided in Section 7. 3, City will use its best efforts to cause Consultant to be paid within forty-five (45) days ofreceipt of Consultant' s correct and undisputed invoice; however, Consultant 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 any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

2. 5 Waiver.

Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.
01247 0001/ 635149. 3
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and g. In the event
that the Limits of Insurance of the 2) The " personal injury" for which coverage is Coverage Part shown in the Declarations sought arises out ofan offense committed; exceed the limits of liability required by the after you have signed that " written contract written contract requiring insurance", the requiring insurance". But this insurance provided insurance provided to the additional insured to the additional insured still is excess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary, by that " written contract requiring insurance". excess, contingent or on any other basis, that is This endorsement does not increase the
available to the additional insured when that limitsofinsurance described in Section III — person or organization is an additional insured Limits Of Insurance. under any other insurance. CG D3 81
09 15 2015 The Travelers Indemnity Company All rights reserved.

ARTICLE 3. PERFORMANCE SCHEDULE

3. 1 Time of Essence.

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

3. 2 Schedule of Performance.

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

3. 3 Force Majeure.

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

3. 4 Term.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding five (5) years from the date hereof, except as otherwise provided in the Schedule of Performance ( Exhibit D»
ARTICLE 4. COORDINATION OF WORK

4. 1 Representatives and Personnel of Consultant.

The following principals of Consultant (" Principals") are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
01247.0001/ 635149.3
6-
ot guarantee that payment will occur
within this time period. In the event any charges or expenses are disputed by City, theoriginal invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by the Consultant shall not constitute a waiver of any
rights or remedies
provided herein orany applicable law.2.5 Waiver. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects
in
work performed by Consultant. 01247
0001/ 635149. 3 5-and g. In the event that the Limits of Insurance of the 2) The "personal injury" for which coverage is Coverage Part shown in the Declarations sought arises out of an offense committed; exceed the limits of liability required by the after you have signed that " written contract written contract requiring insurance", the requiring insurance". But this insurance provided insurance provided to the additional insured to the additional insured still is excess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary, by that " written contract requiring insurance". excess, contingent or on any other
basis, that is This endorsement does not increase the available to the additional of
insured when that limits
insurance described in Section III — person or organization is an additional insured Limits
Of Insurance. under any other insurance. CG D3 81 09

Robert Gray Chief Information Officer
Name) Title)
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement.

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

4. 2 Status of Consultant.

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

4. 3 Contract Officer.

The Contract Officer shall be the City Manager or such person as may be designated by the City Manager. It shall be the Consultant' s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of 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 Consultant, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Consultant' s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any 01247.0001/ 635149.3
7-
tract requiring insurance", the requiring insurance". But this insurance provided insurance provided to the additional insured to the additional insured still is excess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary, by that "written contract requiring insurance". excess, contingent oron any other basis, that is This endorsement
does not increase the available to the additional insured when that limits of insurance described in Section III — person or organization is an additional insured Limits Of Insurance. under any other
insurance.CG D3 81 09 15 2015 The Travelers Indemnity

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

4. 5 Prohibition Against Subcontracting or Assignment.

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

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5. 1 Insurance Coverages.

The Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees and agents of City:
a) General Liability Insurance ( Occurrence Form CG0001 or equivalent). A policy of comprehensive general liability insurance written on a per occurrence basis for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than $ 1, 000, 000. 00 per occurrence or if a general aggregate limit is used, then the general aggregate limit shall be twice the occurrence limit.
b) Worker' s Compensation Insurance. A policy of worker' s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for the Consultant against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Consultant in the course of carrying out the work or services contemplated in this Agreement.
c) Automotive Insurance ( Form CA 0001 ( Ed 1/ 87) including " any auto" and endorsement CA 0025 or equivalent). A policy of comprehensive automobile liability insurance written on a per occurrence for bodily injury and property damage in an amount not less than 1, 000, 000. Said policy shall include coverage for owned, non-owned, leased, hired cars and any automobile.
01247 0001/ 635149. 3
8-
nts, representatives or agents, or in fixing
their number, compensation or hours of service. Consultant shall perform all services required herein asan independent contractor of City and shall remain at all times as toCity a wholly independent contractor with only such
obligations
as are consistent with that role. Consultant shall
not at any 01247. 0001/635149. 3 7-tract requiring insurance", the requiring insurance". But this insurance provided insurance provided to the additional insured to the additional insured still is excess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary,by
that "written contract requiring insurance". excess, contingent oron any other basis, that is This endorsement does not increase the available to the additional insured when that limits of insurance described
inSection III — person or organization isan additional insured

d) Professional Liability. Professional liability insurance appropriate to the Consultant' s profession. This coverage may be written on a" claims made" basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to services performed under this Agreement. The insurance must be maintained for at least 5 consecutive years following the completion of Consultant' s services or the termination of this Agreement.

During this additional 5- year period, Consultant shall annually and upon request ofthe City submit written evidence of this continuous coverage.
e) Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein. f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit" B".

5. 2 General Insurance Requirements.

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

All of said policies of insurance shall provide that said insurance may not be amended or cancelled by the insurer or any party hereto without providing thirty ( 30) days prior written notice by certified mail return receipt requested to the City. In the event any of said policies of insurance are cancelled, the Consultant shall, prior to the cancellation date, submit new evidence ofinsurance in conformance with Section 5. 1 to the Contract Officer.

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

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

CANCELLATION:

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE

CANCELLED BEFORE THE EXPIRATION DATED THEREOF,
THE ISSUING COMPANY SHALL MAIL THIRTY ( 30)- DAY
01247. 0001/ 635149. 3
9-
on
or hours of service. Consultant shall perform all services required herein as an independent contractor of City and
shall remain at all
times
as to City a wholly independent contractor
with only such obligations as are consistent with that role. Consultant shall not at any 01247. 0001/ 635149. 3
7-tract requiring insurance", the requiring insurance". But thisinsurance provided insurance provided tothe additional insured
to
the additional insured still is excess over valid
shall be limited to the limits of liability required and collectible other insurance, whether primary, by that "written contract requiring insurance". excess, contingent or on any other basis, that is This endorsement does not increase the available tothe additional insured when that limits of insurance described in Section
III — person or organization is an additional insured Limits Of Insurance. under any other insurance. CG D3 81 09 15 2015 The Travelers Indemnity Company All rights reserved. Page 1of
2Includes the copyrighted material of Insurance Services Office, Inc.,

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

Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City or its respective elected or appointed officers, officials, employees and volunteers or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. The Consultant agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which the Consultant may be held responsible for the payment of damages to any persons or property resulting from the Consultant' s activities or the activities of any person or persons for which the Consultant is otherwise responsible nor shall it limit the Consultant' s indemnification liabilities as provided in Section 5. 3.

In the event the Consultant subcontracts any portion of the work in compliance with Section 4. 5 of this Agreement, the contract between the Consultant and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Consultant is required to maintain pursuant to Section 5. 1, and such certificates and endorsements shall be provided to City.

5. 3 Indemnification.

To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents(" Indemnified Parties") against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened ( herein " claims or liabilities") that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable(" indemnitors"), or arising from Consultant' s or indemnitors' reckless or willful misconduct, or arising from Consultant' s or indemnitors' negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
01247 0001/ 635149. 3
10-
onsultant shall perform all services required herein as an independent contractor of City and
shall remain at all
times
as to City a wholly independent contractor
with only such obligations as are consistent with that role. Consultant shall not at any 01247. 0001/ 635149. 3
7-tract requiring insurance", the requiring insurance". But thisinsurance provided insurance provided tothe additional insured
to
the additional insured still is excess over valid
shall be limited to the limits of liability required and collectible other insurance, whether primary, by that "written contract requiring insurance". excess, contingent or on any other basis, that is This endorsement does not increase the available tothe additional insured when that limits of insurance described in Section
III — person or organization is an additional insured Limits Of Insurance. under any other insurance. CG D3 81 09 15 2015 The Travelers Indemnity Company All rights reserved. Page 1of
2Includes the copyrighted material of Insurance Services Office, Inc.,

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

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

5. 4 Sufficiency of Insurer.

Insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated" A" or better in the most recent edition ofBest Rating Guide, The Key Rating Guide or in the Federal Register, and only ifthey are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of the City (" Risk Manager") due to unique circumstances. If this Agreement continues for more than 3 years duration, or in the event the risk manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits ofthe insurance policies may be changed accordingly upon receipt of written notice from the Risk Manager.
01247. 0001/ 635149. 3
11-
on,
covenant
or condition ofthis Agreement, and in
connection therewith: 01247 0001/ 635149. 3 10-onsultant shall perform all services required herein asan independent contractor of City and shall remain at all times as toCity a wholly independent contractor with only such
obligations
as are consistent with that role. Consultant shall
not at any 01247. 0001/635149. 3 7-tract requiring insurance", the requiring insurance". But this insurance provided insurance provided to the additional insured to the additional insured still is excess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary,by
that "written contract requiring insurance". excess, contingent oron any other basis, that is This endorsement does not increase the available to the additional insured when that limits of insurance described
inSection III — person or organization isan additional insured

ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6. 1 Records.

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

6. 2 Reports.

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

6. 3 Ownership of Documents.

All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials ( the " documents and materials"), including any electronic documents and materials, prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City in a format of the City' s choice upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/ or use of uncompleted documents without specific written authorization by the Consultant will be at the City' s sole risk and without liability to Consultant, and Consultant' s guarantee and warranties shall not extend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247. 0001/ 635149. 3
12-
nce provided to the additional
insured to the additional insured still is excess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary, by that " written contract requiring insurance". excess, contingent or on any other basis, that is This endorsement does not increase the available to the additional insured when that limits of insurance described in Section III — person or organization isan
additional insured Limits Of Insurance. under any other insurance. CG

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

6. 4 Confidentiality and Release of Information.
a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer.
b) Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered " voluntary" provided Consultant gives City notice of such court order or subpoena. c) If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney' s fees, caused by or incurred as a result of Consultant' s conduct. d) Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7. 1 California Law.

This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U. S. District 01247. 0001/ 635149. 3
13-
ization by the Consultant
willbeatthe City' s solerisk and without liability to Consultant, and Consultant' s guarantee and warranties shall not extend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247. 0001/635149. 3 12-nce provided to the additional insured
to
the additional insured still is
excess over valid shall be limited to the limits of liability required and collectible other insurance, whether primary, by that " written contract requiring insurance". excess, contingent or on any other basis, that isThis
endorsement does not increase the available to the additional insured when that limits of insurance described in Section III — person or organization isan additional insured Limits Of Insurance. under any
other insurance. CG D3 81 09 152015 The Travelers

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

7. 2 Disputes; Default.

In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City may give notice to Consultant ofthe default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default.

This timeframe is presumptively thirty ( 30) days, but may be extended, though not reduced, if circumstances warrant. During the period oftime that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elect to pay some or all ofthe outstanding invoices during the period of default. If Consultant does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice ofthe Consultant' s default shall not be deemed to result in a waiver of the City' s legal rights or any rights arising out of any provision ofthis Agreement.

7. 3 Retention of Funds.

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

7. 4 Waiver.

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

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

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

7. 5 Rights and Remedies are Cumulative.

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party 01247.0001/ 635149.3
14-
tee and warranties shall not extend to
such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247. 0001/ 635149.312-nce provided to the additional insured to the additional
insured still is excess over valid shall be limited to

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

7. 6 Legal Action.

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

7. 7 Termination Prior to Expiration of Term.

This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon written notice to Consultant. In addition, the Consultant may terminate this Contract for cause, upon sixty (60) days' advance written notice to City. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Consultant has initiated termination, the Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7. 3. In the event the Consultant has initiated termination, the Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7. 2.

7. 8 Termination for Default of Consultant.

Iftermination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7. 2, take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated( provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated.

7. 9 Attorney' s Fees.

If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney' s fees. Attorney' s fees shall include attorney' s fees on any appeal, and in addition a party entitled to attorney' s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs 01247. 0001/ 635149. 3
15-
tend tosuch use, reuse or assignment.

Consultant may retain copies of such documents for its own use. Consultant 01247. 0001/ 635149.3 12-nce provided to
the
additional insured to the additional insured still
is excess over valid shall be limited tothe limits of liability required and collectible other insurance, whether primary, by that "written contract requiring insurance". excess, contingent or on any other
basis, that is This endorsement does not increase the available

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

ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON- DISCRIMINATION

8. 1 Non-liability of City Officers and Employees.

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

8. 2 Conflict of Interest.

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

8. 3 Covenant Against Discrimination.

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

8. 4 Unauthorized Aliens.

Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U. S. C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/ or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorney' s fees, incurred by City. 01247. 0001/ 635149. 3
16-
sly
stated.7.9 Attorney'sFees.If either party tothis
Agreement is required to initiate
or defend or made a party to any action or proceeding inany way connected with this Agreement, the prevailing party in such action orproceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney' sfees. Attorney' s fees shall include attorney'sfees on any appeal, and in addition aparty entitled to attorney' s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs 01247. 0001/635149.3 15-tend to such use,reuse or assignment. Consultant may
retain
copies of such documents forits own
use. Consultant 01247. 0001/ 635149. 3 12-nce provided tothe additional insured to the additional insured still is excess
over
valid shall be limited to the limits
of liability required and collectible
or
other insurance, whether primary,by that " written contract requiring insurance". excess, contingent on any other basis, that is This endorsement does not increase the available
tothe additional insured when that limits of insurance described

ARTICLE 9. MISCELLANEOUS PROVISIONS

9. 1 Notices.

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

9. 2 Interpretation.

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

9. 3 Counterparts.

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

9. 4 Integration; Amendment.

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

9. 5 Severability.

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

9. 6 Warranty & Representation of Non- Collusion.

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

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

Consultant' s Authorized Initials I

9. 7 Corporate Authority.

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

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

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

CITY:

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

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

HdL Com allies., a California corporation
By:

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

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

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

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

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

STATE OF CALIFORNIA

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

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

WITNESS my hand and official seal.

Signature: 44

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

CAPACITY ' LAMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CO ORATE OFFICER

TITLE OR TYPE OF DOCUMENT

TITLE( S)

PARTNER( S) LIMITED

GENERAL NUMBER OF PAGES

ATTORNEY- IN- FACT

TRUSTEE( S)

GUARDIAN/ CONSERVATOR

OTHER DATE OF DOCUMENT
SIGNER IS REPRESENTING:

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

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

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

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

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

INDIVIDUAL CO

ORATE OFFICER TITLE OR TYPE OF DOCUMENT TITLE(
S)

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

TRUSTEE( S) GUARDIAN/

CONSERVATOR OTHER DATE OF

DOCUMENT SIGNER IS
REPRESENTING: NAME

OF PERSON(

S) OR ENTITY( IES))

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

EXHIBIT " A"

SCOPE OF SERVICES
I. Objectives and Methods:

The Services performed by Consultant shall include the following:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

B. Compliance Management.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

C. Audits.

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

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

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

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

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

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

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

D. Network Uptime.

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

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

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

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

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

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

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

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

cumulative basis;

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

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

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

B. Commencement of Services.

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

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

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

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

III. City Obligations
The City agrees to:

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

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

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

D. Network Uptime.

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

EXHIBIT " B"

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

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

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

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

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

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

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

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

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

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

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

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

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

EXHIBIT " C"

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

A $15. 00 per license payment processed.

Included in the above compensation for Tax Administration Services are:

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

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

3. Forms processing and funds disbursement; and

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

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

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

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

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

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

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

f
EXHIBIT " D"

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

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

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

01247.0001 2002725.2
AMENDMENT NO. 1

TO AGREEMENT FOR CONTRACT SERVICES

BETWEEN THE CITY OF GRAND TERRACE AND

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

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

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

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

TERMS

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

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

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

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

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

01247.0001 2002725.2

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

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

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

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

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

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

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

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

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

CITY:

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

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

HdL Companies, a California corporation
By:

Name: Andrew Nickerson
Title: President/CEO
By:

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

AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE

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

01247.0001 2002725.2

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

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

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

WITNESS my hand and official seal.

Signature: _____________________________________

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

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED

DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

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

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

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

01247.0001 2002725.2

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

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

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

WITNESS my hand and official seal.

Signature: _____________________________________

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

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED

DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

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

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

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

01247.0001 2002725.2
EXHIBIT “C”

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

A $18.00 per license payment processed.

Included in the above compensation for Tax Administration Services are:

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

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

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

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

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

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

- 1 -
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 HINDERLITER, DE LLAMAS & ASSOCIATES, a California corporation (“Consultant”), is effective as of the 26th 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 April 22, 2020 (“Agreement”), whereby Consultant agreed to provide Tax Administration Services with a total compensation (“Contract Sum”) of Seventy-Five Thousand Dollars ($75,000) and for a term of five (5) years.

B. City and Consultant amended the Agreement (“Amendment No. 1”) to extend the term of the Agreement by one (1) year, and increase the Contract Sum from Seventy-Five Thousand Dollars ($75,000) per year to Ninety Thousand Dollars ($90,000).

C. City and Consultant now desire to further amend the Agreement (“Amendment No. 2”) to extend the term of the Agreement by one (1) additional year, and increase the total not-toexceed amount by Twenty Thousand Dollars ($20,000), from Ninety Thousand Dollars ($90,000) to One Hundred Ten Thousand Dollars ($110,000), as the City has reached the Fifteen Thousand Dollar ($15,000) increase in the Contract Sum.

TERMS

1. Contract Changes. The Agreement is amended as provided herein. Deleted text is indicated in strikethrough and added text in bold italics. a. Section 2.1 (Contract Sum) is hereby amended as follows:
“Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed One Hundred Ten Thousand Dollars ($110,000) Ninety Thousand Dollars and Zero Cents ($90,000.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8.”
b. Section 3.4 (Term) is hereby amended as follows:
“Unless earlier terminated in accordance with Section 7 of this Agreement, this

- 2 -
Agreement shall continue in full force and effect until completion of the services and shall expire on June 30, 2026 June 30, 2027 from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). c. Exhibit “C” (Schedule of Compensation) is hereby amended and replaced in its entirety with Exhibit “C”, as attached hereto.
d. Section II of Exhibit “D” (Schedule of Performance) is hereby amended as follows:
“Consultant shall complete all services under this Agreement by June 30, 2026 June 30, 2027.”

2. Continuing Effect of Agreement. Except as amended by this Amendment, the provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by this Amendment to the Agreement.

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

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

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

4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment.

5. Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment on behalf of said party, (iii) by so executing this Amendment, such party is formally bound to the provisions of this Amendment, and (iv) the entering into this Amendment does not violate any provision of any other Agreement to which said party is bound.

- 3 -

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]

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

CITY:

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

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

By:
_____________________________________
Daysi Alcocer
City Clerk
CONSULTANT:

HINDERLITER, DE LLAMAS & ASSOCIATES, a
California corporation
By:
__________________________________
Name: Andrew Nickerson
Title: President/CEO
Email Address:

By:
__________________________________
Name: Richard Park
Title: Chief Financial Officer
Email Address:

Address: 120 S. State Blvd. Suite 200
Brea, CA 92821
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 26, 2026
TITLE: Second Reading & Adoption of an Ordinance – Zoning Code Amendment (ZCA) 26-01 – Agricultural Employee Housing (Housing Element Program 12) PRESENTED BY: Gabriel Arguelles, Associate Planner
RECOMMENDATION: IT IS RECOMMENDED THAT THE CITY COUNCIL CONDUCT SECOND

READING AND ADOPT AN ORDINANCE APPROVING ZONING CODE
AMENDMENT (ZCA) 26-01 AND ENVIRONMENTAL REVIEW (E) 26-05; 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).
2030 VISION STATEMENT:

This agenda staff report supports City Council Goal #5, “Engage in Proactive Communication,” by implementing Program 12 of the City’s 2021–2029 Housing Element, maintaining consistency between the General Plan and the City’s Municipal Code, and providing clear and current development standards consistent with State housing law BACKGROUND:

The City Council conducted a duly noticed Public Hearing on May 12, 2026, for the aforementioned Ordinance approving Zoning Code Amendment (ZCA) 26-01 which is provided as Attachment 1. The May 12, 2026, agenda report on the introduction of this Ordinance is provided as Attachment 2. For this Ordinance to become effective, the City Council needs to conduct the second reading of the Ordinance to adopt it. Once the Ordinance is adopted, it will become effective in 30 days.

The Ordinance is included as Attachment 1, along with supporting materials including Exhibit A – Housing Programs (2021–2029 Housing Element), Exhibit B – Health and Safety Code Section 17021.5, and Exhibit C – Health and Safety Code Section 17021.6.

DISCUSSION:

To implement these State requirements and fulfill the City’s Housing Element obligations, staff prepared amendments to Title 18 of the Grand Terrace Municipal Code to define agricultural employee housing, establish development standards, and provide a ministerial review process for qualifying projects.

Zoning Code Amendment (ZCA) 26-01 updates Title 18 of the Grand Terrace Municipal Code to establish regulations for agricultural employee housing within the City. The amendment modifies Chapters 18.53 (AG-1 Agricultural Overlay District) and 18.56 (AG-2 Agricultural Overlay District), and adds a new chapter, Chapter 18.58 – Agricultural Employee Housing.

The amendments define agricultural employee housing, establish objective development standards, and create a ministerial review process consistent with the California Employee Housing Act. These updates ensure the City’s Zoning Code remains consistent with State law while providing a clear process for future agricultural employee housing projects within the City’s agricultural overlay districts.

Chapter 18.58 establishes several categories of agricultural employee housing, including small-scale permanent housing, large-scale permanent housing, seasonal housing, and temporary agricultural residences. The chapter also includes standards related to parcel size, unit size, utility service, emergency access, occupancy verification, and ongoing compliance.

These updates help implement Housing Element Program 12, bring the City’s Municipal Code into alignment with State law, and provide clear development standards for future agricultural and housing-related activities within the community.

CONCLUSION:

Adoption of this Ordinance (ZCA 26-01) will update the City's Municipal Code to implement Program 12 of the City’s 2021–2029 Housing Element; and, update Title 18 of the Grand Terrace Municipal Code to ensure consistency with the California Employee Housing Act and other applicable State housing laws. The updates establish clear definitions, development standards, and a ministerial review process for agricultural employee housing within the City’s agricultural overlay districts. These updates remove governmental constraints to housing, maintain consistency between the General Plan and the Municipal Code, and provide clear and current development standards for future projects.

ENVIRONMENTAL IMPACT:

The City has reviewed the Ordinance approving Zoning Code Amendment (ZCA) 26-01 for compliance with the California Environmental Quality Act (CEQA). The Ordinance consists of updates to the City’s Municipal Code to implement State housing law and does not approve any specific development project or authorize any physical improvements. Because the action involves regulatory text changes only, and it can be seen with certainty that the amendment will not result in a significant effect on the environment, the project is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), commonly referred to as the Common Sense Exemption.

FISCAL IMPACT:

Adoption of this Ordinance approving Zoning Code Amendment (ZCA) 26-01 is not expected to result in any direct fiscal impact to the City. The updates to the City’s Municipal Code ensure consistency with state law and does not approve any specific development project. Any future agricultural employee housing development would be processed through the City’s standard application, permitting, and cost recovery procedures.

CC Ord No. 377 Page 1 of 18 May 26, 2026
ORDINANCE NO. 377

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, 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 HOUSING ELEMENT PROGRAM 12 AND ENSURE

CONSISTENCY WITH THE CALIFORNIA EMPLOYEE HOUSING ACT
(HEALTH AND SAFETY CODE SECTIONS 17021.5 AND 17021.6)
WHEREAS, the City of Grand Terrace has adopted a Zoning Code, set forth in Title 18 of the Grand Terrace Municipal Code (“GTMC”), which has been amended from time to time to respond to changes in state law and community needs; and WHEREAS, the City of Grand Terrace adopted the 6th Cycle Housing Element (2021– 2029) of the General Plan, which identifies programs and actions necessary to address the City’s Regional Housing Needs Allocation and remove governmental constraints to housing development; and
WHEREAS, Housing Element Program 12 – Employee Housing requires the City to amend its Zoning Code to define and permit agricultural employee housing in compliance with the California Employee Housing Act; and
WHEREAS, the California Employee Housing Act (Health and Safety Code Sections 17000 through 17062.5) establishes the policy of the State of California to permit and encourage the development of sufficient employee housing to meet the needs of agricultural employees; and WHEREAS, the proposed Zoning Code Amendment establishes definitions, use classifications, development standards, and ministerial approval procedures for agricultural employee housing consistent with state law; and
WHEREAS, the proposed amendments modify Chapters 18.53 (AG-1 Agricultural Overlay District) and 18.56 (AG-2 Agricultural Overlay District) and add a new Chapter 18.58 (Agricultural Employee Housing) to the Grand Terrace Municipal Code; and WHEREAS, the proposed amendments will facilitate the development of agricultural employee housing while ensuring that such housing complies with applicable development standards and state regulatory requirements; and
WHEREAS, the Planning Commission – Site and Architectural Review Board held a duly noticed public hearing on March 19, 2026, to consider Zoning Code Amendment ZCA 26-01 and Environmental Determination E 26-05; and
WHEREAS, during the duly noticed public hearing, the Planning Commission / Site and Architectural Review Board considered public testimony and commissioner comments regarding temporary grazing regulations within the Agricultural (AG-1) Overlay District, and by motion directed that Section 18.53.090 be revised to allow temporary grazing by multiple species of grazing livestock, including sheep, goats, cattle, horses, and other similar grazing livestock; and

CC Ord No. 377 Page 2 of 18 May 26, 2026
WHEREAS, following the public hearing, the Planning Commission adopted a resolution recommending that the City Council adopt the ordinance approving ZCA 26-01; and WHEREAS, the City Council finds that the adoption of this ordinance will help remove governmental constraints to housing and facilitate the development of agricultural employee housing in accordance with Housing Element Program 12; and WHEREAS, the City Council further finds that the adoption of this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption), because it can be seen with certainty that the ordinance will not result in a significant effect on the environment; and WHEREAS, this Ordinance is supported by applicable State law and the City’s Housing Element programs, including the Housing Programs of the City of Grand Terrace Housing Element (2021–2029) (EXHIBIT A), Health and Safety Code Section 17021.5 (EXHIBIT B), and Health and Safety Code Section 17021.6 (EXHIBIT C), all of which are incorporated herein by this reference.

WHEREAS, notice of the City Council public hearing concerning this Ordinance was provided in accordance with the Grand Terrace Municipal Code, applicable provisions of State law, and the City’s adopted public hearing noticing requirements; and WHEREAS, the City Council held a duly noticed public hearing on May 12, 2026, to consider Zoning Code Amendment ZCA 26-01, received and considered all testimony and written evidence presented at the hearing, and determined that the amendment is consistent with the General Plan and the Housing Element; and
WHEREAS, the City Council on May 26, 2026, conducted a second reading and adoption of the Ordinance; and
WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

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

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

SECTION 2. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the Public Hearing, the City Council hereby finds that the Project “Zoning Code Amendment (ZCA) 26-01” is not subject to environmental review pursuant to CEQA Guidelines Section 15061(b)(3) as follows:

Finding: A project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Facts in Support of Finding: The City of Grand Terrace has reviewed the Zoning Code

CC Ord No. 377 Page 3 of 18 May 26, 2026
Amendment (ZCA 26-01) project with respect to the applicability of the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) (“CEQA”).

The proposed amendment modifies the Grand Terrace Municipal Code to define and permit Agricultural Employee Housing and establish ministerial approval procedures consistent with the California Employee Housing Act.

The ordinance is a regulatory zoning update that does not approve or authorize any specific development project or physical change to the environment. Instead, it establishes development standards and procedures applicable to future agricultural employee housing projects that may be proposed.

Because the ordinance establishes only regulatory provisions and does not authorize any physical development, it can be seen with certainty that adoption of the ordinance will not result in a significant effect on the environment.

Therefore, the ordinance is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3).

SECTION 3. Based upon the foregoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the Public Hearing, the City Council determines the findings for Zoning Code Amendment (ZCA) 26-01 pursuant to Grand Terrace Municipal Code Section §18.90.040 can be made supporting the project application as follows:
1) Finding: The proposed amendment will not be detrimental to the health, safety, morals, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the City.

Facts in Support of Finding: ZCA 26-01 implements Housing Element Program 12 by establishing definitions, development standards, and ministerial approval procedures for Agricultural Employee Housing consistent with the California Employee Housing Act (Health and Safety Code Sections 17021.5 and 17021.6). These provisions ensure that agricultural employee housing is developed in a manner that protects public health and safety while providing housing opportunities for agricultural workers. 2) Finding: The proposed amendment will not be: Injurious to property or improvements in the neighborhood or within the City.

Facts in Support of Finding: The zoning code amendments establish objective development standards, including requirements related to parcel size, building size, setbacks, access, and infrastructure such as water and wastewater systems. These standards ensure that agricultural employee housing developments are compatible with surrounding land uses and will not adversely affect nearby properties. 3) Finding: The proposed amendment will be consistent with the latest adopted general plan.

Facts in Support of Finding: The proposed zoning amendments implement the City’s adopted Housing Element (2021–2029) by removing governmental constraints to agricultural employee housing and ensuring consistency with the California Employee

CC Ord No. 377 Page 4 of 18 May 26, 2026
Housing Act. The amendments support the goals and policies of the Housing Element by facilitating housing opportunities for agricultural workers while maintaining compatibility with agricultural land uses designated in the General Plan.

SECTION 4. Chapters 18.53 (AG-1 Agricultural Overlay District) and 18.56 (AG-2 Agricultural Overlay District) of the Grand Terrace Municipal Code are hereby amended, and a new Chapter

18.58 (Agricultural Employee Housing) is hereby added, to read in their entirety as follows Chapter 18.53 AGRICULTURAL (AG-1) OVERLAY DISTRICT
Sections:

18.53.010 Purpose.

The purpose of the Agricultural (AG-1) Overlay District is to permit limited agricultural uses in areas of the City which have historically contained such uses and where current lot size is sufficient to provide a compatible relationship between the limited agricultural uses and the underlying zoning district's residential uses. To ensure a quality living environment and to protect the public health, safety and general welfare, this Chapter establishes certain regulations regarding the type, size, number and location of such agricultural uses permitted in the Agricultural (AG-1) Overlay District. The regulations contained in this Chapter are in addition to the regulations of the underlying zoning district that the Agricultural (AG-1) Overlay District is layered upon. In the case of a conflict between the regulations of the Agricultural (AG-1) Overlay District and the underlying zoning district, the regulations of the Agricultural (AG-1) Overlay District shall prevail.

18.53.020 Permitted uses.

Uses permitted in the Agricultural (AG-1) Overlay District shall be as identified in Table

18.53.020.

18.53.030 Conditionally permitted uses.

Uses permitted in the Agricultural (AG-1) Overlay District with a conditional use permit shall be as identified in Table 18.53.020.

18.53.035 Agricultural Employee Housing permitted uses.

Employee housing land uses permitted in the Agricultural (AG-1) Overlay District with ministerial zoning approval from the Planning and Development Services Department shall be as identified in Table 18.58.040.

18.53.040 Total number of animals.

The combined total number of animals kept on any one site shall not exceed the maximum number and combination of animals allowable as identified in Table 18.53.020.

CC Ord No. 377 Page 5 of 18 May 26, 2026

18.53.050 Location of animals.

All animals, except household pets, shall be kept at a minimum distance of seventy (70) feet from any adjacent dwelling, school or church located on adjoining parcels.

18.53.060 Offspring.

Young animals born to a permitted animal may be kept until such animals are weaned (cats and dogs: four (4) months, large animals: six (6) months, horses: twelve (12) months).

18.53.070 Sale of products.

One temporary stand for display and sale of seasonal items such as Christmas trees and pumpkins produced on the premises may be approved for a specific length of time by the Planning and Development Services Department.

18.53.080 County health department.

The contents of this Chapter shall in no way be interpreted to relax any of the requirements of the San Bernardino County Department of Public (DPH) Health Code.

18.53.090 Temporary grazing.

In no event shall there be a limit to the permitted number of sheep, goats, cattle, horses, or other similar grazing livestock which may be grazed per acre, where said grazing operation is conducted on fields for the purposes of cleaning up harvested crops, stubble, volunteer or wild growth and further where said grazing operation is not conducted for more than four (4) weeks in any six (6) month period. Special application for such temporary grazing shall be made in writing and approved by the Planning and Development Services Department prior to such grazing can begin.

TABLE 18.53.020
Agricultural (AG-1) Overlay District Standards
Type of
Animal or
Use
Minimum Site
Area per
Animal or Use
Maximum
Number of
Animals
Permitted Use (P) or
Conditionally
Permitted Use (C)
Each horse, mule,
donkey or ponya
10,000 sq. ft. 6 P
Each large animal other
than a horse, mule,
donkey or ponya
20,000 sq. ft. 3 C
Each small animal 4,000 sq. ft. 12c P

CC Ord No. 377 Page 6 of 18 May 26, 2026
Each 5 birds or rodents 4,000 sq. ft. 25 P
Exotic or wild animals 20,000 sq. ft. 3 C
Horticultural crops or
tree farming
20,000 sq. ft. NA P
Footnotes:
a. A pony, defined as any horse measuring 14 hands and two inches or less in height at the withers, may be kept in addition to the keeping of two horses on a 20,000 square foot parcel. b. A "small animal" shall be defined as an animal weighing less than 250 pounds. c. No more than one male goat shall be permitted.

Chapter 18.56 AGRICULTURAL (AG-2) OVERLAY DISTRICT
Sections:

18.56.010 Purpose.

The purpose of the Agricultural (AG-2) Overlay District is to permit limited commercial agricultural uses with single-family residential as an accessory use to support commercial agricultural uses. In order to ensure a quality living environment and to protect the public health, safety and general welfare, this chapter establishes certain regulations regarding the type, size, number and location of such agricultural uses permitted in the Agricultural (AG-2) Overlay District.

The regulations contained in this chapter are in addition to the regulations of the underlying zoning district. In the case of a conflict between the regulations of the Agricultural (AG-2) Overlay District and the underlying zoning district, the regulations of the Agricultural (AG-2) Overlay District shall prevail.

18.56.020 Permitted uses.

Uses permitted in the Agricultural (AG-2) Overlay District are as follows:

A. Temporary uses which are determined by the Planning and Development Services Department not to have significant long-term impact on the environment include but are not limited to the following: parking lot sales, Christmas tree sales, seasonal sales, rummage sales, shall be reviewed and approved through the land use approval and/or temporary use permit.

18.56.030 Conditionally permitted uses.

Uses permitted in the Agricultural (AG-2) Overlay District with a conditional use permit are as follows:

A. Animal keeping and boarding. All animals, except household pets, shall be kept at a minimum distance of seventy (70) feet from any structure or area used for human habitation or public assembly (e.g. parks, churches, etc.) on adjoining property. The area of human habitation shall not include cabanas, patios, attached or detached private garages or storage buildings.

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The combined total number of animals kept on any one site shall not exceed the maximum number and combination of animals allowable as identified in Table 18.56.030.

B. Apiaries, provided that no hives or boxes housing bees are kept closer than two hundred (200) feet from any dwelling other than that occupied by the property owner.

C. Orchards, groves, nurseries, field crops, tree crops, berry crops, bush crops, truck gardening and commercial flower growing, including the drying, packing, canning, freezing, or other acceptable methods of processing of fruits, nuts, vegetables and other horticultural products where such processing is primarily in conjunction with a farming operation and the structures used for such processing are located at least twenty (20) feet from the property line.

D. Sale of fruit, vegetables, produce and flowers and other similar products grown on the property; provided, however, that roadside stands used for such sales shall not exceed twohundred and fifty (250) square feet.

E. Riding stables and academies; provided that the minimum lot size for such uses shall be not less than five (5) acres, and that all buildings for the housing, feeding, or rental of such animals shall be at least one hundred (100) feet from any property line, and five hundred (500) feet from any residential zone, church, school, park or hospital.

F. Sheep grazing only for the purpose of clearing unharvested crops or stubble, with no limit on the number of animals, for a period not exceeding thirty (30) days in any six (6) month period.

Special application for such temporary grazing shall be made in writing, and approved by the Planning and Development Services Director prior to commencement.

G. Single-family residences, provided that such use is ancillary to a commercial agricultural use, and that residential uses and structures, including accessory residential uses and structures, do not occupy more than twenty five (25%) percent of the site area.

H. Accessory structures and uses. Private garages used by persons residing on the premises, cabanas, laundry rooms, workshops, stables, barns, tack rooms, pens, corrals, and similar animal keeping/agricultural structures, provided these structures shall not be used as a habitable dwelling or space, as defined by the adopted California Building Code. Approval shall be through a land use permit and/or temporary use permit review.

I. Other uses which are determined by the Planning Commission Site and Architectural Review Board to be similar in nature to a use listed in this Section.

TABLE 18.56.030
Type of Animal Minimum Site Area per
Animal or Use (square feet)
Maximum Number of
Animals (per parcel)
Poultry 25 per acre 100
Cattle or buffalo 6,000 -

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Horses, mules, donkey or
pony
6,000 -
Fish raising 1 pond/acre -
Maximum pond size = ½ lot
area and maximum 4 ponds
per parcel
Hogs 12,000 -
Sheep, female goats and
similar livestock
4,000
Adult male goats - 1
Rabbits and chinchillas 200 200
Ostriches, emus, alpacas,
llamas
4,000 -
Notes:

1. Young animals born to a permitted animal may be kept until such animals are weaned (cats and dogs: four (4) months, large animals: six (6) months, horses: twelve (12) months).

18.56.040 Prohibited uses.

A. Commercial composting facilities.

B. Commercial recycling facilities.

C. Animal slaughtering.

18.56.050 Agricultural Employee Housing permitted uses.

Employee housing land uses permitted in the Agricultural (AG-2) Overlay District with ministerial zoning approval from the Planning and Development Services Department shall be as identified in Table 18.58.040.

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18.56.055 Animal keeping.

Animal keeping shall be pursuant to the provisions of Chapter 18.53 Agricultural Overlay District.

18.56.060 Site development standards.

Animal keeping areas shall be limited to portions of the lot with no more than a four (4%) percent grade. Other site development standards in the Agricultural (AG-2) Overlay District are as follows:

Development Issue Standard
Lot Area 1 acre (minimum)
Lot Width 150 linear feet (minimum)
Lot Depth 200 linear feet (minimum)
Front yard setback 40 linear feet (minimum)
Rear yard setback 35 linear feet (minimum)
Side yard setback 20 linear feet (minimum)
Height (primary structure) 35 linear feet (maximum)
Lot Coverage
(less parking, setbacks, and landscaping)
40% (maximum)

18.56.070 Standards for accessory buildings.

A. Accessory buildings shall not occupy more than ten percent of the rear yard.

B. Accessory buildings shall be a minimum of fifteen (15) feet from the main buildings

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C. Accessory buildings shall be located no closer to the side and rear property lines than:

1. Ten (10) feet for one (1) story non-residential accessory buildings.

2. Fifteen (15) feet for two (2) story nonresidential accessory buildings and one (1) or two (2) story buildings used for residential purposes.

18.56.080 Screening and trash enclosures.

A. Trash storage areas shall be enclosed by a wall not less than six (6) feet in height, and shall not be located within forty (40) feet of any property zoned for residential use. The enclosure shall follow current California Building Code accessibility requirements, as amended from time to time. A drain shall be installed and connected directly into the City's wastewater system, with approval from the City's Engineer. The storage and trash enclosure shall contain lockable front facing decorative metal doors and a side door, and a decorative metal roof or cover with screening to prevent illegal dumping. All decorative material shall be compliant with the City's objective design standards.

B. All outdoor animal uses and/or animal enclosures shall be screened in a manner determined by the Planning Commission Site and Architectural Review Board in consideration of the type of animals being kept.

18.56.090 Off-street parking.

The number of off-street parking spaces shall be determined by the Planning Commission Site and Architectural Review Board as part of the conditional use permit. The provisions of Chapter 18.60 shall apply in determining the size and location of required parking spaces.

18.56.100 Signs.

Signs in the Agricultural (AG-2) Overlay District shall be limited to one (1) unlighted sign per site not exceeding twelve (12) square feet pertaining to products offered for sale on the premises.

18.56.110 County health department.

The contents of this Chapter shall in no way be interpreted to relax any of the requirements of the San Bernardino County Department of Public (DPH) Health Code Chapter 18.58 AGRICULTURAL EMPLOYEE HOUSING
Sections:

18.58.010 Purpose.

The purpose of agricultural employee housing is to provide increased flexibility and available options of agricultural employee housing, streamlined permitting and approval, as well as prevention of misuse for non-applicable housing types in Grand Terrace’s Agricultural Overlays.

18.58.015 Applicability.

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This Chapter is applicable within the City of Grand Terrace’s Agricultural Overlay Districts that allow agriculture on specific properties above and beyond the land uses granted by the underlying land use and zoning of those properties.

18.58.020 Definitions.
“Agricultural employee” means an agricultural employee, operator, or owner primarily engaged in an agricultural operation.
“Agricultural operation” means farming and ranching in all their forms. “Agricultural Employee Housing” means a housing unit that must be occupied by individuals who are primarily engaged in an agricultural operation. Family members of such individuals may also live in the same unit. Agricultural employee housing is not required to be located on the same property as an agricultural operation.
“Small-scale permanent housing facility” means a residential development that includes no more than six (6) dwelling units or eighteen (18) beds in group living quarters. This may include mobile homes and manufactured homes. Complete individual or shared living, sleeping, eating, cooking, and sanitation facilities, including a full kitchen and bathroom, shall be provided on the same lot. “Large-scale permanent housing facility” means a residential development that include seven (7) or more dwelling units or nineteen (19) or more beds in group living quarters, or housing that does not meet the supplemental use regulations for small-scale agricultural employee housing.

Complete individual or shared living, sleeping, eating, cooking, and sanitation facilities, including a full kitchen and bathroom, shall be provided on the same lot. “Seasonal temporary housing facility” means temporary housing that is present on site for no more than one-hundred and twenty (120) days per year and is not subject to the Special Occupancy Parks Act, Health & Safety Code § 18860 et seq. Complete individual or shared living, sleeping, eating, cooking, and sanitation facilities, including a full kitchen and bathroom, shall be provided on the same lot. This housing is limited to movable tiny homes, which for the purpose of seasonal agricultural employee housing, may be located on a lot without a primary residence.

The property owner shall declare the specific occupancy period dates for each housing unit annually and submit that information to the Planning and Development Services Department by February 1st of each year. All such housing shall be removed from the site outside of the declared occupancy period dates.
“Temporary Agricultural Residence” means a recreational vehicle or movable tiny home that provides temporary housing to a person engaged in an on-site agricultural operation, and their family members. For the purposes of temporary agricultural residences, a movable tiny home or recreational vehicle may be located on a property without a primary residence on-site.

18.58.030 Permitted Uses By-Right.

The residential use categories (“Small-scale permanent,” “Large-scale permanent,” “Seasonal,” and “Temporary” agricultural residences) can be approved through an administrative Land Use Permit and/or Temporary Use Permit with the Planning and Development Services Department.

No discretionary permit and no public hearing is required for “Small-scale permanent, “Largescale permanent,” “Seasonal,” or “Temporary” agricultural residences.

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18.58.040 Agricultural Employee Housing Land Use Regulations Employee Housing Land Uses listed in Table 18.58.040 below shall be allowed in both Agricultural Overlays as indicated in the columns below each district heading. Permitted uses are indicated by the letter "P." A “P” permitted agricultural employee housing land use requires approval of a ministerial Land Use Permit from the Planning and Development Services Department to verify compliance with site development standards identifying within this Chapter 18.58 and the underlying zoning and/or agricultural overlay.

Table 18.58.040 Agricultural Employee Housing Land Uses and Permit Requirements for Agricultural Overlays

LAND USE OVERLAY
Agricultural (AG-1) Overlay
District
Agricultural (AG-2) Overlay
District
Small-Scale
Permanent
P P
Large-Scale
Permanent
P P
Seasonal P P
Temporary P P

18.58.050 Site development standards.

All Agricultural Employee Housing shall comply with the setback, lot coverage, height, and other development standards applicable to the zone and/or agricultural overlay within which it is located, unless otherwise indicated in this section.
(a) Requirements for Small-Scale and Large-Scale Permanent Agricultural Employee Housing (1) Minimum Parcel Size: Permanent Agricultural Employee Housing shall be located on parcels of five (5) or more acres having an agricultural overlay designation. (2) Permanent Agricultural Employee Housing shall be no more than a two (2) story structure.
(3) Unit Size: Individual dwelling units shall not exceed twelve hundred (1,200) square feet and group living quarters and supporting facilities shall not exceed five hundred (500) square feet per agricultural employee.
(4) Water and Wastewater Treatment: All Permanent Agricultural Employee Housing shall be directly connected or have on-site access to approved water and wastewater treatment systems that comply with the requirements of the Riverside Highland Water Company and the City of Colton Water and Wastewater Department. (5) Siting Requirements: All Permanent Agricultural Housing shall comply with all of the following requirements:

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a. Residential setbacks and all other development standards of the underlying zoning district and/or agricultural overlay shall apply.
b. All structures and improvements shall be located outside of a floodway, as designated by the Federal Emergency Management Agency (FEMA) and as delineated in the applicable Flood Boundary and Floodway Map. c. Proof of adequate utility access and infrastructure, including water supply, electrical, and gas distribution systems.
d. All development shall occur on a legally established lot with legal access to a public road.
e. There shall be safe and adequate access for fire and emergency vehicles. (6) All Permanent Agricultural Employee Housing shall be occupied exclusively by agricultural employees and their family members for at least a total of one-hundred and twenty (120) days per calendar year. Compliance with these occupancy requirements shall be verified annually by the City Building and Safety Department. (7) All Permanent Agricultural Employee Housing shall have fire sprinklers, comply with county and state health regulations.
(b) Requirements for Seasonal Agricultural Employee Housing. (1) Minimum Parcel Size: Seasonal Agricultural Employee Housing shall be located on parcels of five (5) or more acres having an agricultural overlay designation. (2) Unit Size: Individual dwelling units shall not exceed twelve hundred (1,200) square feet and group living quarters and supporting facilities shall not exceed five hundred (500) square feet per agricultural employee.
(3) Water and Wastewater Treatment: All Seasonal Agricultural Employee Housing shall be directly connected or have on-site access to approved water and wastewater treatment systems that comply with the requirements of the Riverside Highland Water Company and the City of Colton Water and Wastewater Department. (4) Siting Requirements: All Seasonal Agricultural Housing shall comply with all of the following:
a. Residential setbacks and all other development standards of the underlying zoning district and/or agricultural overlay shall apply. b. All structures and improvements shall be located outside of a floodway, as designated by the Federal Emergency Management Agency (FEMA) and as delineated in the applicable Flood Boundary and Floodway Map. c. Proof of adequate utility access and infrastructure, including water supply, electrical, and gas distribution systems.

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d. All development shall occur on a legally established lot with legal access to a public road.
e. There shall be safe and adequate access for fire and emergency vehicles. (5) All Seasonal Agricultural Employee Housing shall be occupied exclusively by agricultural employees and their family members for at least a total of one hundred and twenty (120) days per calendar year. Compliance with these occupancy requirements shall be verified annually by the City Building and Safety Department. (c) Requirements for Temporary Agricultural Residences. (1) Occupancy: At least one occupant shall be primarily engaged in an on-site agricultural operation or the development of an on-site agricultural operation. Family members of the person engaged in the on-site agricultural operation may also live in the residence. (2) On-site operations: The applicant shall demonstrate to the satisfaction of the Planning and Development Services Department the existence of an on-site agricultural operation, or an acceptable plan to establish an agricultural operation, and the need for on-site employee housing in support of the existing or planned agricultural operation.
(3) Cash Deposit: The applicant shall post financial security with the City of Grand Terrace in the amount of $100,000.00 to ensure timely removal of the temporary agricultural residence.
(4) Termination: The temporary agricultural residence shall be removed from the property no later than two (2) years after the planning clearance is issued for the residence. (5) Water and Wastewater Treatment: All Temporary Agricultural Residences shall be directly connected or have on-site access to approved water and wastewater treatment systems that comply with the requirements of the Riverside Highland Water Company and the City of Colton Water and Wastewater Department. (6) Siting Requirements: All Temporary Agricultural Residences shall comply with all the following requirements:
a. Residential setbacks and all other development standards of the underlying zoning district and/or agricultural overlay shall apply. b. All structures and improvements shall be located outside of a floodway, as designated by the Federal Emergency Management Agency (FEMA) and as delineated in the applicable Flood Boundary and Floodway Map. c. Proof of adequate utility access and infrastructure, including water supply, electrical, and gas distribution systems.
d. All development shall occur on a legally established lot with legal access to a public road.
e. There shall be safe and adequate access for fire and emergency vehicles.

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(7) All Temporary Agricultural Residences shall be occupied exclusively by agricultural employees and their family members for at least a total of forty-five (45) days per calendar year. Compliance with these occupancy requirements shall be verified annually by the City Building and Safety Department.

18.58.060 Verification and Discontinuance.
(a) Annual Verification: Agricultural Employee Housing shall only be occupied by farm workers and members of their household. The owner of each parcel containing agricultural employee housing shall submit a completed annual verification form to the Planning and Development Services Department no later than February 1st of each year. The Planning and Development Services Department shall prepare and maintain a verification form for this purpose. The complete verification form and supporting documentation shall require the property owner to meet all of the following requirements:
(1) Verify and provide substantial evidence that any permanent agricultural employee housing (including seasonal) was occupied by agricultural employees for a minimum of one-hundred and eighty (180) days during the preceding calendar year. a. Substantial evidence may include at least two of the following documents, as applicable.

1. Employee’s income tax return.

2. Employee’s pay receipts.

3. Employer’s DE-34 form.

4. Employer’s ETA 790 form.

5. Employee’s W-2 form.

6. Employer’s DLSE-NTE form.

7. A document signed by both the employer and the employee, which states that the occupant of Agricultural Employee Housing is employed in agricultural operations and includes a description of the employee’s job duties.
(2) Verification for Small-Scale or Large Scale Permanent Agricultural Employee Housing:

Declare that any permanent agricultural employee housing will be occupied by agricultural employees for a minimum of one hundred and eighty (180) days during the current calendar year.
(3) Verification for Seasonal Permanent Agricultural Employee Housing. a. Designate the specific days (not exceeding one-hundred and eighty (180) days) that any seasonal agricultural employee housing will be occupied during the calendar year and verify that the units will be removed from the property outside of the designated occupancy dates.

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b. Verify and provide substantial evidence, through a site plan or map, of the location of all proposed seasonal agricultural employee housing and any shared facilities such as kitchens, cooking facilities, showers, and restrooms, adequate to support the occupancy.
(b) Recordation of Notice: For permanent agricultural employee housing, a notice shall be recorded that such housing shall be used only for agricultural employee housing and the conditions and requirements applicable to such use. A property owner shall also provide written disclosure of all such conditions and requirements before any sale, lease or financing of the property.
(c) State and Federal Requirements: Any owner or operator of agricultural employee housing shall comply with all state and federal requirements applicable to such housing, including but not limited to the following:

1. Where required by state law, a person intending to operate agricultural employee housing shall obtain and maintain a permit to operate (or exemption) from the California Department of Housing and Community Development (HCD) pursuant to the Employee Housing Act (Health & Safety Code § 17000 et seq.) and regulations promulgated thereunder (California Code of Regulations, Title 25, § 600 et seq.).

2. Where mobile homes, movable tiny homes, and manufactured homes are used for agricultural employee housing, additional state permitting requirements may apply under the Mobile Home Parks Act (Health & Safety Code § 18200 et seq.) or the Special Occupancy Parks Act (Health & Safety Code § 18860 et seq.) and regulations promulgated thereunder.
(d) Deed Restriction & Discontinuance of Use: A deed restriction in a form approved by the City Attorney’s Office that runs with the land shall be recorded with the San Bernardino County Assessor-Recorder-County Clerk Office, prior to the issuance of the necessary permits for construction for all agricultural worker housing except for temporary trailers, limiting the use of such housing to agricultural worker housing and setting forth the conditions and requirements applicable to such use. The property owner shall also be required to provide written disclosure of all such conditions and requirements before any sale, lease or financing of the subject lot(s) and dwelling units. This restriction shall not be amended, released, terminated, or removed from the property without the prior written consent of the Planning and Development Services Department. In the event the agricultural worker housing use is terminated and/or structures are removed in accordance with other applicable law as confirmed in writing by the Planning and Development Services Department, the deed restriction that accompanies the development shall be released and removed from the property. This restriction shall not be amended, released, terminated, or removed from the property without the prior written consent of the Planning and Development Services Department. The Planning and Development Services Department may require the removal of a housing unit and restoration of the site (including any affected agricultural soils) based on the unpermitted or unverified use of Agricultural Employee Housing units, or based on other violations of the above section.

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SECTION 5. The City Council enacts this Ordinance approving ZCA 26-01 under the authority granted to cities by Article XI, Section 7 of the California Constitution and Government Code Sections 65850–65863
SECTION 6. If any section, subsection, paragraph, sentence, clause or phrase of the Ordinance, or its application to any person or circumstance, is for any reason held to be invalid and unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases hereof be declared invalid or unenforceable.

SECTION 7. This Ordinance approving ZCA 26-01 shall take effect and be in force thirty (30) days from and after its adoption.

SECTION 8. First read at a regular meeting of the City Council held on the 12th day of May 2026 and adopted the Ordinance after the second reading at a regular meeting held on the 26th day of May 2026.

SECTION 9. The Mayor shall sign, and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect thirty (30) days after its final passage.

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PASSED, APPROVED, AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the 26th 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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Housing Programs
This section describes the City’s housing programs for the 2021-2029 planning period, including the responsible agency, timeframe, funding source and objectives. It should be noted that where funding sources list “General Fund”, these may consist of in-kind staff services, expedited permit processing, and/or reduced permitting fees.

Programs to Provide Adequate Sites for Housing
Program 1 Adequate Sites to Accommodate Regional Housing Needs To accommodate for a shortfall of sites and provide for adequate sites, the City is rezoning 97.3 total acres to allow for housing at a density of 20 – 40 du/acre. By upzoning for considerable capacity beyond the RHNA, the City is encouraging housing mobility, creating housing opportunity, and ensuring there is adequate capacity to meet the RHNA.

The City has identified 20 parcels (24.2 acres) from this rezone to meet the RHNA. Rezoned sites will comply with the requirements of Government Code Sec. 65583.2(h) which states that cities must have a program to facilitate by-right approval for projects that include at least 20 percent of the units for lower-income housing on rezoned low-income sites. Rezoned sites needed to meet the RHNA shall comply with the following:
• Permit owner-occupied and rental multifamily uses by-right for developments in which 20 percent or more of the units are affordable to lower-income households; • Accommodate a minimum of 16 units per site;
• Require a minimum density of 20 units per acre;
• Or, at least 50 percent of the lower-income need must be accommodated on sites designated for residential use only or on sites zoned for mixed uses that accommodate all of the very low and low-income housing need, if those sites allow 100 percent residential use, and require residential use occupy 50 percent of the total floor area of a mixed-use project.

Additionally, the six RHNA sites with existing, single-family residential uses will be subject to a replacement housing policy. The replacement housing policy will comply with all provisions of Government Code section 65915, subdivision (c) (3).

Pursuant to the statutory requirements of Government Code Sections 65583.2(c), amend the Zoning Ordinance to require by-right approval of any “reuse” 4th and 5th Cycle sites being used to meet the 6th Cycle RHNA, if 20 percent of the units in the development are affordable to lowerincome households. There are four sites in the housing element that are subject to this provision, APNs 116720103, 027521109, 027641102, and 027641127.

Responsible Agency: Community Development
Objective: Rezone the identified 20 parcels (24.2 acres) with sufficient area and development standards to accommodate the City’s RHNA allocation

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throughout the planning period. Update Zoning and Land Use maps accordingly. Monitor progress through Annual Progress Reports.

Timing: Amendments by October 2024; Ongoing implementation through the planning period. Rezones as soon as possible following adoption.

Funding sources: General Fund, Filing fees
AFFH Themes: New Opportunities in High Resource Areas, Housing Mobility Program 2 No Net Loss and Adequate Sites Reporting
Pursuant to Senate Bill (SB) 166 (No Net Loss), the City must always maintain adequate sites to accommodate the remaining RHNA requirement. The City will monitor the entitlement and production of housing sites to ensure the remaining unmet RHNA by each income category is maintained at all times. Findings have to be made to reduce density/downzone a potential housing site to show that there are still adequate sites available to meet RHNA in a specific income category or a rezone has to occur within 180 days to accommodate the net loss of RHNA in said income category.

The City will develop a procedure by October 2024, to track:
• Unit count and income/affordability assumed on parcels included in the sites inventory. • Actual units constructed and income/affordability when parcels are developed. • Net change in capacity and summary of remaining capacity in meeting remaining RHNA.

The City will conduct a mid-cycle review of units built and capacity to meet the RHNA in 2026.

If the entitled projects are not anticipated to be completed during the 6th Cycle at this time, the City will identify additional sites from the larger rezone efforts described above in Program 1Programs to Provide Adequate Sites for Housing and/or programs to adequately meet the RHNA.

Responsible Agency: Community Development
Objective: Ensure compliance with SB 166
Timing: Procedures developed by October 2024; Ongoing implementation through planning period
Funding sources: Filing fees, General Fund
Programs to Assist the Development and/or Availability of Affordable Housing Program 3 Facilitate Development of Affordable and Special Needs Housing The City will provide a set of incentives for and technical assistance to developers for housing projects that are affordable or for special needs households. Special needs households covers all types of special needs households including persons with disabilities, persons experiencing

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homelessness, female-headed households, senior housing, transitional youth housing, or any other identified special need housing type not listed.

Specifically, the City will:
• Allow and assist developers in using Planned Residential Development standards, which allows for density bonuses when energy efficient construction is incorporated into projects.
• Provide density bonus and other incentives consistent with state law • Provide expedited processing for projects that provide housing for lower-income and/or special needs households, including senior, extremely-low income households, housing for those with disabilities, or any other identified special needs household • Assistance in preparing applications for lower-income households and households with special needs, including seniors, those with disabilities, or any other identified special needs household
• As funding allows, reduce development fees for extremely-low income housing projects. Seek funding sources to assist with extremely-low income housing development.
• Seek funding to support the health and quality of the mobile homes in the northwestern area of the City through funding opportunities including but not limited to the Mobilehome Park Rehabilitation and Resident Ownership Program (MPRROP) and Manufactured Housing Opportunity and Revitalization Program (MORE).

Additionally, the City will annually contact developers of all special needs and lower income housing to assist in development where feasible by:
o Assisting and supporting new applications.
o Providing priority processing,
o Evaluate fee deferrals or subsidies and design modifications. o Facilitating site acquisition.
o Hosting an annual workshop, or comparable outreach, to developers to provide information on the City’s regulations regarding housing development, opportunities and sites available for development, and the City’s development incentives.

Responsible Agency: Community Development
Objective: Support affordable and special needs housing production Timing: Ongoing through planning period; annual outreach event for developers, seek funding opportunities annually with at least one mobile home funding application by Q3 2026, establish internal expedited permit process by Q1 2026.

Funding sources: Filing fees, General Fund
AFFH Themes: New Opportunities in High Resource Areas, Housing Mobility

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Program 4 Density Bonus Consistent with State Law
Consistent with state law, the City must offer density bonus incentives for senior housing projects and projects that reserve a portion of the units as housing affordable to very low-, low-, and moderate-income households. In conjunction with the density bonus, the City must also offer incentives or regulatory concessions to facilitate affordable housing development. Incentives and concessions considered by the City include planned development standards and assistance with infrastructure requirements, such as water or sewer extensions when energy efficient construction is incorporated into projects. The City will revise the Planned Residential Development section of the zoning code (18.10.090) to include the density bonus incentives and concessions.

To qualify for a density bonus and concessions or other incentives, the developer of a proposed housing project (at least five units) must provide housing units affordable to very low-, low-, or moderate-income households, and/or housing for seniors.

The City will revise the zoning code to be consistent with state density bonus law by Q1 2026.

Responsible Agency: Housing Authority, Community Development Objective: Facilitate lower-income housing production, special needs housing Timing: Amend the Zoning Code by Q1 2026.

Funding sources: General Fund
Program 5 Section 8 Rental Assistance
The City will facilitate access to Section 8 Rental Assistance for lower-income households through the San Bernardino County Housing Authority by assisting the County with publicity whenever the waiting list is opened, by posting the phone number and website of the Housing Authority on the City’s website. Additionally, whenever the waiting list is open, the City will provide technical assistance and support to residents to add their information to the waiting list.

Responsible Agency: Community Development/Planning
Objective: Support housing availability. Provide information to 25 households annually, when waiting list is open. Provide technical assistance to 15 households when waiting list is open.

Timing: Ongoing as notified by the San Bernardino County Housing Authority Funding sources: General Fund
AFFH Themes: Fair Housing Enforcement and Outreach, Housing Mobility Program 6 First-Time Homebuyer Assistance
The San Bernardino County CDH Department participates in the CRHMFA Homebuyers Fund (CHF) program that provides down payment, payment, and closing costs assistance to County residents. The Mortgage Credit Certificate Program provides a federal income tax credit for firsttime homebuyers, which may be claimed as long as the homebuyer occupies the home and pays interest on the mortgage.

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Information on this Program will be provided on the City’s website, including links to the respective Programs and posted biennially in the local newspaper.

San Bernardino County residents meeting income eligibility requirements may be eligible to participate in the CalHOME funding program that provides down payment assistance for first-time homebuyers. The CalHOME is administered by various organizations; locally Neighborhood Housing Services of the Inland Empire (NHSIE) and Neighborhood Partnership Housing Services, Inc. (NPHS) administer CalHOME programs. Prospective homeowners could qualify for down payment assistance to be paid back through a “silent second” mortgage.

Information on this Program will be provided on the City’s website, including links to the NHSIE and NPHA websites, and posted biennially in the local newspaper. The City will provide technical assistance and support to residents for application to both programs.

Responsible Agency: Community Development/Planning and San Bernardino County CDH Objective: Production of affordable housing. Provide information to 20 households annually. Provide technical assistance to 10 households throughout the planning period.

Timing: Throughout the planning period
Funding sources: Federal and state grants
Program 7 Multifamily Housing Bonds
The San Bernardino County CDH Department operates a Multifamily Residential Rental Housing Revenue Bond program. This Program can be used for new construction, acquisition, and/or rehabilitation of multifamily housing developments. A specified number of units are required to remain affordable to eligible, low-income households for a specified number of years after the initial financing is provided.

Information on this Program will be provided on the City’s website, including links to the respective Programs and posted biennially in the local newspaper. The City will provide technical assistance to applicants who are looking to participate in this program in Grand Terrace.

Responsible Agency: Community Development and San Bernardino County CDH Objective: Produce, acquire, and/or rehabilitate at least 10 units of affordable multifamily housing throughout the planning period. Technical assistance to two projects in the planning period.

Timing: Continuously throughout the planning period
Funding sources: Federal and state grants
AFFH Theme: New Opportunities in High Resource Areas, Housing Mobility Programs to Mitigate Governmental Constraints
Program 8 Reasonable Accommodation for Persons with Disabilities Chapter 18.68 (Reasonable Accommodations) of the Municipal Code provides a streamlined process for persons with disabilities to request deviations from the City’s code requirements to accommodate their disability. Over the planning period the City will continue to implement this

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program. The City will review the reasonable accommodations procedure once during the planning period to ensure that it continues to provide a streamlined and clear process for any reasonable accommodations requests. When requests are received, the City will apply its reasonable accommodations process.

Responsible Agency: Community and Economic Development Department Objective: Support fair housing for persons with disabilities Timing: Throughout the planning period when requests for reasonable accommodations are received. Review reasonable accommodations procedure by Q1 2027.

Funding sources: Filing fees
Program 9 Incentivize Accessory Dwelling Units
The City will process a Code amendment in 2024 to update ADU regulations to be consistent with current law.

The City will create a dedicated webpage on the City website for ADU information. The page will include necessary information for the construction of ADUs and will include a set of FAQs, a flow chart of the development process, and links to resources for the development of affordable ADUs, and other ADU resources.

The City will also make a variety of pre-approved ADU plan sets available to facilitate reduced applicant cost and expedited review for ADUs by 2025. The City will ensure that example plans provide choices and diversity in size to accommodate a variety of household sizes and types. The program may be modeled after successful programs implemented in other cities and utilize SBCTA and/or other regional plans.

The City will monitor ADU production and affordability levels. Should ADU production not meet projected targets (an average of 1.5 ADUs annually) the City will pursue additional actions to encourage ADU production within six months of an identified shortfall. Additional actions include but are not limited to outreach and educational opportunities, grants and loans, or participation in regional ADU facilitation efforts.

Responsible Agency: Community Development/Planning
Objective: Mitigate governmental constraints; Increase ADU trends from 1.5 to 3 ADUS per year.

Timing: Annual review, ADU code amendment in 2024. Create ADU webpage by Q4 2025. Additional actions within six months of any identified shortfall.

Funding sources: General Fund, Filing fees
AFFH Theme: New Opportunities in High Resource Areas

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Program 10 Priority Water and Wastewater Service for Affordable Housing Developments.

Pursuant to Government Code 65589.7, work with public service providers to establish written procedures for the prioritization of water and sewer services to housing developments serving lower-income households.

Ensure that water and sewer service providers receive a copy of the housing element upon adoption.

Responsible Agency: Community Development and Planning Services / Municipal Utilities and Engineering Department
Objective: Mitigate governmental constraints
Timing: October 2023
Funding sources: General Fund, Filing fees
Program 11 Zoning Ordinance Amendments for Housing for Persons with Special Housing Needs
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. The follow amendments will be made:
• The Zoning Ordinance allows emergency shelters by-right in the M2 – Industrial zone district in compliance with state law. AB 139 (2019) amended parking standards that may be required for emergency shelters.
• State law requires that transitional and supportive housing be allowed as a residential use subject to the same standards as other residential uses of the same type in the same zone.

In 2018 AB 2162 amended State law to require that supportive housing be a use by-right in zones where multi-family and mixed uses are permitted, including non-residential zones permitting multi-family uses, if the proposed housing development meets specified criteria. • AB 101 (2019) added the requirement that low barrier navigation centers meeting specified standards be allowed by-right in areas zoned for mixed use and in non-residential zones permitting multi-family uses pursuant to Government Code §65660 et seq. • Amend the Zoning Ordinance to permit residential care facilities for seven or more persons in the R-3-S, R-3-20, R-3-24.
• Remove the AUP requirement for residential care facilities for seven or more persons • Revise the definition of emergency shelters pursuant to AB 2339. • Remove the Specific Plan requirement for senior housing in Section 18.10.020. • Remove the bedroom limit for Duplex, Triplex, Four-plex and Multiple Family residential in the R-2 and R-3 districts in Section18.10.040 (scheduled for 2024 updates)