Grand Terrace City Council
June 9, 2026

Tuesday, June 9, 2026 1

CITY OF GRAND TERRACE
City Council
AGENDA ● June 9, 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].

ADDITIONAL NOTICE REGARDING SALES TAX POLLING MATERIALS:

Supplemental documents related to Agenda Item G.13 - Sales Tax Measure Polling, may be received after the posting of this agenda. In accordance with the Ralph M. Brown Act and Government Code Section 54957.5, any such materials provided to a majority of the City Council will be made available to the public at the same time. These additional documents may be accessed on the City’s agenda webpage at the following link:
https://grandterraceca.portal.civicclerk.com/event/208/files Supplemental materials will also be available for public inspection in the City Clerk’s Office during normal business hours.

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

Tuesday, June 9, 2026 2
ensure accessibility to this meeting. Later requests will be accommodated to the extent feasible [28 CFR 34.102.104 ADA Title II].

CALL TO ORDER

INVOCATION

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

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

C. SPECIAL PRESENTATIONS
Certificates of Recognition — Grand Terrace High School Girls Varsity Soccer Team 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 - Regular Meeting - May 26, 2026 DEPARTMENT: City Clerk
3) Resolutions Calling & Giving Notice of a General Municipal Election on November 3, 2026, and Requesting Consolidation of the Municipal Election with the State-Wide General Election on November 3, 2026, and Establishing Candidate Statement Regulations RECOMMENDATION: APPROVE A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF GRAND TERRACE, CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 3, 2026, FOR THE ELECTION OF CERTAIN OFFICERS AND REQUESTING THE BOARD

Tuesday, June 9, 2026 3

OF SUPERVISORS OF THE COUNTY OF SAN BERNARDINO TO CONSOLIDATE THE

GENERAL MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE PURSUANT TO ELECTIONS CODE SECTION 10403 RELATING TO GENERAL LAW CITIES; AND

APPROVE A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, ESTABLISHING REGULATIONS FOR CANDIDATES FOR

ELECTIVE OFFICE PERTAINING TO CANDIDATE STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026 DEPARTMENT: City Clerk
4) Approval of Amendment to the Fire Hazard Abatement Services Agreement with the San Bernardino County Fire Protection District
RECOMMENDATION: THAT THE CITY COUNCIL APPROVE THE AMENDMENT TO

THE FIRE HAZARD ABATEMENT SERVICES AGREEMENT BETWEEN THE CITY OF

GRAND TERRACE, THE COUNTY OF SAN BERNARDINO, AND THE SAN

BERNARDINO COUNTY FIRE PROTECTION DISTRICT, AUTHORIZING THE

TRANSFER OF ADMINISTRATION OF THE FIRE HAZARD ABATEMENT PROGRAM

FROM THE COUNTY LAND USE SERVICES DEPARTMENT TO THE SAN

BERNARDINO COUNTY FIRE PROTECTION DISTRICT AND EXTENDING THE TERM OF THE AGREEMENT THROUGH JUNE 30, 2031
DEPARTMENT: City Manager
5) 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 $20,000.00; AND

AUTHORIZE THE MAYOR TO EXECUTE THE AGREEMENT SUBJECT TO CITY

ATTORNEY APPROVAL AS TO FORM
DEPARTMENT: Finance
6) Commitment of Fund Balance for Fiscal Year 2025-2026 in Accordance with Governmental Accounting Standards Board Statement No. 54 and City Reserves Policy No. 3.06
RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GRAND TERRACE, CALIFORNIA, COMITTING FUND BALANCE FOR FISCAL YEAR 2025-26 IN ACCORDANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT 54 AND CITY RESERVES POLICY NO. 3.06 DEPARTMENT: Finance

Tuesday, June 9, 2026 4
E. PUBLIC HEARINGS
7) Public Hearing for 2026-27 Landscape & Lighting Assessment District 89-1 RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GRAND TERRACE APPROVING THE ENGINEER'S ANNUAL REPORT,

CONFIRMING THE DIAGRAM AND ASSESSMENT, AND ORDERING THE LEVY AND

COLLECTION OF ASSESSMENTS WITHIN THE CITY OF GRAND TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT NO. 89-1 FOR FISCAL YEAR 2026-27.

DEPARTMENT: Public Works
8) Second Reading and Adoption of an Ordinance Formalizing Public Works Standard Plans and Streetlight Design Standards
RECOMMENDATION: CONDUCT THE SECOND READING AND ADOPT AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE

ADOPTING PUBLIC WORKS STANDARD PLANS AND SPECIFICATIONS AND STREETLIGHT DESIGN STANDARDS.

DEPARTMENT: Public Works
F. UNFINISHED BUSINESS - NONE
G. NEW BUSINESS
9) Adoption of the FY2026-27 Proposed Budget
RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2026-27.

DEPARTMENT: Finance
10) Discussion and Direction Regarding Vacant Commercial Property Registration and Maintenance
RECOMMENDATION: PROVIDE DIRECTION TO CITY STAFF ON PREPARATION OF

AN APPROPRIATE ORDINANCE REGARDING VACANT COMMERCIAL PROPERTY

REGISTRATION AND MAINTENANCE
DEPARTMENT: City Manager
11) Discussion and Direction Regarding Billboard Businesses RECOMMENDATION: PROVIDE DIRECTION TO CITY STAFF ON ABILITY TO PASS

AN ACTIVE COMMERCIAL USE ORDINANCE TO ADDRESS BILLBOARD

BUSINESSES
DEPARTMENT: City Manager

Tuesday, June 9, 2026 5
12) Operation of Bicycles within the City of Grand Terrace RECOMMENDATION: THAT THE CITY COUNCIL PROVIDE DIRECTION TO STAFF

TO PREPARE AN ORDINANCE REGULATING THE OPERATION OF BICYCLES

WITHIN THE CITY OF GRAND TERRACE, INCLUDING ELECTRIC BICYCLES DEPARTMENT: City Manager
13) Sales Tax Measure Polling
RECOMMENDATION: RECEIVE AND FILE THE COMMUNITY SURVEY

PRESENTATION REGARDING A POTENTIAL LOCAL TRANSACTIONS AND USE

TAX MEASURE AND PROVIDE DIRECTION TO STAFF AS APPROPRIATE DEPARTMENT: City Manager
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
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 - NONE
L. ADJOURN
The next Regular City Council Meeting will be held on June 23, 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 26, 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 26, 2026, at 6:00 PM and announced that tonight's meeting will be closed in honor of service members and their families.

INVOCATION
The Invocation was given by Reverend Bill Dunn, Rector of Trinity Episcopal Church in Redlands.

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

AB 2449 DISCLOSURES
None.

ROLL CALL

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

Absent:

A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA
Mayor Hussey removed Consent Item No. 6 to be brought back at a future meeting and pulled Consent Item No. 7 for discussion; Mayor Hussey reorganized the agenda to place Closed Session prior to New Business, upon completion of New Business, the meeting continues with the Public Hearing, after which the Council resumes the remainder of the agenda as usual, including Future Agenda Items and all subsequent sections.

B. PUBLIC COMMENT
None.

C. SPECIAL PRESENTATIONS - NONE
D. CONSENT CALENDAR
Daysi Alcocer, City Clerk, read out an email comment into the record, submitted by resident of Grand Terrace Lori Hawkins regarding Consent Item No. 7.

Daysi Alcocer, City Clerk, read out an email comment into the record, submitted by resident of Grand Terrace Janise Llewellyn regarding Consent Item No. 7.

Bobbie Forbes, resident of Grand Terrace, provided a comment on Consent Item No. 7.

Council Member Allen motioned to approve Consent Item No. 1-5 and 8-10, seconded by Council Member Brown.

RESULT: APPROVED - UNANIMOUS
MOVER: Council Member Allen
SECONDER: Council Member Brown
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
1) Waive Full Reading of, and Direct the City Attorney to Read by Title only for, Ordinances on the Agenda
2) Approval of Minutes - 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 FourYear Terms Expiring on June 30, 2030 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
5) Consideration of Approval of Amendment No. 10 to Waste Disposal Agreement No. 98-107 with the County of San Bernardino
6) Second Reading & Adoption of an Ordinance – Zoning Code Amendment (ZCA) 26-01 – Agricultural Employee Housing (Housing Element Program 12) 7) Award of Professional Services Agreement to Kittelson & Associates, Inc. for Citywide AB 98 Truck Route Compliance, Inventory, and Signage Plan

Council Member Brown motioned to approve Consent Item No. 7, seconded by Council Member Allen.

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

RESULT: APPROVED 4 TO 1
MOVER: Council Member Brown
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen
ABSTAIN: None
NAYS: Council Member Brown
8) Award Agreement to Pineda General Construction, Inc for Public Works Building Renovation Project
9) Senior Transportation Program Agreement with Omnitrans K. CLOSED SESSION
Mayor Hussey recessed the Regular Meeting of the City Council to closed session at 6:16 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. 2026-004.

Number of cases: 1

RECONVENE TO OPEN SESSION
Mayor Hussey reconvened the Regular Meeting of the City Council from closed session at 6:40 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.

G. NEW BUSINESS
12) Policy Governing Remote Participation and Enhancement of Public Participation in City Council and Commission Meetings to implement Senate Bill No. 707
Adrian Guerra, City Attorney, provided the PowerPoint presentation on this item.

NO PUBLIC COMMENT
RESULT: APPROVED - UNANIMOUS
MOVER: Council Member Allen
SECONDER: Mayor Pro Tem Sabino
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
13) Introduction of the FY2026-27 Proposed Budget
Christine Clayton, Finance Director, provided the PowerPoint presentation for this item.

NO PUBLIC COMMENT
RESULT: APPROVED - UNANIMOUS
MOVER: Council Member Brown
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
14) Consideration of a Special Transactions and Use Tax at a Rate of Up to

1.00%
Adrian Guerra, City Attorney, provided the PowerPoint presentation for this item.

NO PUBLIC COMMENT
Mayor Hussey motioned to move the item forward to include authorization by Konrad Bolowich, City Manager, to purchase a services agreement for a special tax and general tax survey through a consultant of the City Manager's choosing, seconded by Council Member Brown.

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
E. PUBLIC HEARINGS
10) Public Hearing on Staffing Vacancies Pursuant to Assembly Bill 2561 Michelle Fuentes, Senior Management Analyst, provided the PowerPoint presentation for this item.

NO PUBLIC COMMENT
RESULT: APPROVED - UNANIMOUS
MOVER: Council Member Brown
SECONDER: Council Member Allen
AYES: Mayor Hussey, Mayor Pro Tem Sabino, Council Member Wilson, Council Member Allen, Council Member Brown
NAYS: None
11) 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 Adrian Guerra, City Attorney, provided the PowerPoint presentation for this item.

Mayor Hussey opened the public hearing at 8:01 p.m.

NO PUBLIC COMMENT
Mayor Hussey closed the public hearing at 8:02 p.m.

Mayor Hussey motioned to bring the item back at a future meeting, seconded by Council Member Allen.

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

I. CITY COUNCIL COMMUNICATIONS
Council Member Matt Brown:

Nothing to report.

Council Member Jeff Allen reported on the following:
• Attended the San Bernardino County Solid Waste Task Force Committee Meeting on April 15, 2026, and provided a legislative update • Attended the California Community Choice Association Annual Conference on May 12–14, 2026, in Sacramento
• Attended the Grand Terrace Blue Mountain Festival on May 16, 2026 • Attended the Cal Cities Division luncheon on May 20, 2026, in Ontario • Attended the Memorial Day event at Veterans Freedom Park on May 25, 2026 Council Member Doug Wilson:

Nothing to report.

Mayor Pro Tem Michelle Sabino:

Nothing to report.

Mayor Bill Hussey reported on the following:
• Recognized Timothy Littlefield, End of Watch on September 14, 1986 • Attended the Memorial Day event at Veterans Freedom Park on May 25, 2026 • Attended the Cal Cities Division luncheon on May 20, 2026, in Ontario • Attended the JPIA Meeting on interview conduct
• Attended the San Bernardino County Transportation Authority City County Conference in Lake Arrowhead on May 14–15, 2026

• Attended the Grand Terrace Blue Mountain Festival on May 16, 2026 J. COMMUNICATIONS FROM THE CITY MANAGER, SHERIFFS' DEPARTMENT,

AND FIRE DEPARTMENT
Konrad Bolowich, City Manager, announced the following:
• Recognized the volunteers who assisted with the Grand Terrace Blue Mountain Festival on May 16, 2026

SHERIFF DEPARTMENT COMMUNICATIONS
Lieutenant Fries reported on the following:
• Announced Police Week observed on May 10-16, 2026

FIRE DEPARTMENT COMMUNICATIONS
Assistant Fire Chief Jager reported on the following:
• San Bernardino County Fire has been providing resources to Garden Grove during the spill incident
L. ADJOURN
Mayor Hussey adjourned the Regular Meeting of the City Council at 8:24 p.m. in honor of fallen service members, military personnel and first responders. The next Regular City Council Meeting will be held on Tuesday, June 9, 2026, at 6:00 p.m. _______________________________ _______________________________ Bill Hussey, Mayor Daysi Alcocer, City Clerk

AGENDA REPORT
MEETING DATE: June 9, 2026
TITLE: Resolutions Calling & Giving Notice of a General Municipal Election on November 3, 2026, and Requesting Consolidation of the Municipal Election with the State-Wide General Election on November 3, 2026, and Establishing Candidate Statement Regulations
PRESENTED BY: Daysi Alcocer, City Clerk
RECOMMENDATION: APPROVE A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GRAND TERRACE, CALIFORNIA, CALLING AND GIVING NOTICE OF

THE HOLDING OF A GENERAL MUNICIPAL ELECTION ON TUESDAY, NOVEMBER 3, 2026, FOR THE ELECTION OF CERTAIN OFFICERS AND

REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF

SAN BERNARDINO TO CONSOLIDATE THE GENERAL MUNICIPAL

ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD

ON THE SAME DATE PURSUANT TO ELECTIONS CODE SECTION
10403 RELATING TO GENERAL LAW CITIES; AND

APPROVE A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GRAND TERRACE, CALIFORNIA, ESTABLISHING REGULATIONS FOR

CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATE

STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026
2030 VISION STATEMENT:

This staff report supports our Core Value of Open and Inclusive Government.

BACKGROUND:

In an effort to conduct municipal elections in an efficient and cost-effective manner while complying with all state regulations pertaining to municipal elections, the San Bernardino County Registrar of Voters has conducted the City’s General Municipal Elections since incorporation. In order to request the services of the San Bernardino County Registrar of Voters Office for the upcoming November 3, 2026, General Municipal Election, the City Council must adopt resolutions calling and giving notice, requesting the County services, and setting regulations for candidate statements.

DISCUSSION:

On November 3, 2026, the City of Grand Terrace will hold its General Municipal Election to elect one (1) Mayor and (1) Council Member for a full term of four years. The nomination period begins on July 13, 2026, and will close on August 7, 2026. Only candidates wishing to submit a candidate statement will be required to pay a deposit of $800.00 to cover the cost of printing the statement in the sample ballots provided. As indicated earlier in the staff report, the City Council is required to adopt a resolution requesting the consolidation/services of the County Registrar of Voters for the November 3, 2026, Election. The adopted Resolutions need to be submitted to the County no later than June 15,

2026.

The Resolution calling and giving notice of a General Municipal Election on Tuesday, November 3, 2026, for the election of certain officers and requesting the Board of Supervisors of the County of San Bernardino to consolidate the General Municipal Election with the Statewide General Election to be held pursuant to Elections Code Section 10403 relating to General Law Cities is attached for your consideration as well as the Resolution establishing regulations for candidates for elective office pertaining to candidate statements submitted to the voters at an election to be held on Tuesday, November 3, 2026.

ENVIRONMENTAL IMPACT:

None.

FISCAL IMPACT:

The County of San Bernardino Registrar of Voters has estimated the cost of services provided to the City of Grand Terrace for the November 3, 2026, General Municipal Election at the amount of approximately $39,760.00 if the City submits a ballot measure with the General Municipal Election to elect one (1) Mayor Council and (1) Council Member. Staff included $25,000 in the proposed FY 2026-2027 budget for the election. Therefore, additional funds would need to be appropriated if the City submits a ballot measure.

May 22, 2026
Daysi Alcocer
City Clerk
City of Grand Terrace
22795 Barton Rd
Grand Terrace, CA 92313
Re: 2026 Statewide General Special Measure Election Cost Estimate Dear Daysi Alcocer:

This letter is in response to your request for cost estimate from the Registrar of Voters for the 2026 Statewide General Special Measure Election.

The estimate to have three contests (Mayor, Member, City Council, and Measure) on the ballot is $39,760.

The amount provided above is an estimate based on historical costs for comparable elections. The actual cost may be higher or lower than the estimate provided. Once the election is certified, the Registrar of Voters will complete an accounting of all actual costs and will provide a final invoice within 120 days.

If you have any questions, please contact the Registrar of Voters at (909) 387-8300.

Sincerely,
Yvonne Flores
Chief Deputy Registrar of Voters
Cc: File
Registrar of Voters
Joani Finwall
Registrar of Voters
777 East Rialto Avenue, San Bernardino, CA 92415 | Phone: 909.387.8300 Fax: 909.387.2022

$20,400 $1,900 $5,400 $160 $11,900 $39,760
City of Grand Terrace Measure 8,419 $6,800 $700 $1,800 $0 $11,900 $21,200 VOTER

INFORMATION
GUIDE

MEASURE
San Bernardino County Registrar of Voters
Cost Estimate Summary
2026 Statewide General Special Measure Election

ALLOCATED
COSTS
Estimated Election Total
$6,800

TOTAL ESTIMATE
City of Grand Terrace Mayor 8,419 $600 $1,800 $0 $9,200

VOTE BY MAIL

BALLOT COSTS

DIRECT COSTS
$0

JURISDICTION CONTEST VOTER

REGISTRATION
City of Grand Terrace Member, City Council 8,419 $6,800 $600 $1,800 $160 $0 $9,360

CC Reso No. 2026-10 Page 1 of 3 June 9, 2026
RESOLUTION NO. 2026-10

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, CALLING AND GIVING NOTICE OF THE

HOLDING OF A GENERAL MUNICIPAL ELECTION ON TUESDAY,
NOVEMBER 3, 2026, FOR THE ELECTION OF CERTAIN OFFICERS

AND REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY

OF SAN BERNARDINO TO CONSOLIDATE THE GENERAL

MUNICIPAL ELECTION WITH THE STATEWIDE GENERAL ELECTION

TO BE HELD ON THE SAME DATE PURSUANT TO ELECTIONS CODE
SECTION 10403 RELATING TO GENERAL LAW CITIES
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a Regular Municipal Election shall be held on November 3, 2026, for the election of municipal officers; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the city, the precincts, polling places and election officers of the two elections be the same, and that the county election department of the County of San Bernardino canvass the returns of the General Municipal Election and that the election be held on all respects as if there were only one election; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. Pursuant to the requirements of the laws of the State of California relating to General Law cities, there is called and ordered to be held in the City of Grand Terrace, California, on Tuesday, November 3, 2026, a General Municipal Election for the purpose of electing one (1) Mayor and one (1) Council Member for a full term of four (4) years.

SECTION 2. The ballots to be used at the election shall be in the form and content as required by the law.

SECTION 3. The City Clerk is authorized, instructed and directed to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

CC Reso No. 2026-10 Page 2 of 3 June 9, 2026
SECTION 4. The polls for the election shall be open at seven o’clock a.m. the day of the election and shall remain open continuously from that time until eight o’clock p.m. on the same day when the polls shall be closed, except as provided in Section 14401 of the Elections Code.

SECTION 5. That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of San Bernardino is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 3, 2026, for the purpose of electing one (1) Mayor and one (1) Council Member for a full term of four (4) years.

SECTION 6. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections consolidated with Statewide General Election, including, but not limited to, Section 10418 of the Elections Code, and one form of ballot shall be used.

SECTION 7. The County Registrar of Voters is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election.

SECTION 8. The Board of Supervisors is requested to issue instructions to the County Registrar of Voters to take any and all steps necessary for the holding of the consolidated election.

SECTION 9. The City of Grand Terrace recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

SECTION 10. Notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. Notwithstanding the generality of the foregoing, the City Clerk is hereby instructed to act in conformance with California Elections Code Section 10403 and to file this Resolution with the Board of Supervisors of San Bernardino County and to transmit a copy of the same to the San Bernardino County elections official.

SECTION 11. The City Clerk shall certify the adoption of this Resolution and enter it into the Book of Resolutions.

SECTION 12. The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution.

SECTION 13. If any section, subsection, sentence, clause, or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section,

CC Reso No. 2026-10 Page 3 of 3 June 9, 2026
subsection, sentence, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

SECTION 14. The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 15. This Resolution shall take effect immediately upon adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 9th day of June 2026. ___________________________
Bill Hussey
Mayor
ATTEST:

Daysi Alcocer
City Clerk
APPROVED AS TO FORM:

Adrian R. Guerra
City Attorney

CC Reso No. 2026-xx Page 1 of 3 June 9, 2026
RESOLUTION NO. 2026-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, ESTABLISHING REGULATIONS FOR

CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO

CANDIDATES STATEMENTS SUBMITTED TO THE VOTERS AT AN
ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026
WHEREAS, Section 13307 of the Elections Code of the State of California provides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidate’s statement.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to Section 13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of Grand Terrace on November 3, 2026, may prepare a candidate’s statement on an appropriate form provided by the City Clerk. The statement may include the name, age and occupation of the candidate and a brief description of no more than 200 words of the candidate’s education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed, in typewritten form, with the Office of the City Clerk at the time the candidate’s nomination papers are submitted. The statement may be withdrawn, but not amended, during the nomination filing period and until 5:00 p.m. on the next working day following the close of the nomination period.

SECTION 2. The following provisions shall govern foreign languages as to candidate statements and voter information guides:
a. Pursuant to the Federal Voting Rights Act, candidate’s statements will be translated into all languages required by the County of San Bernardino. The County is required to translate candidate statements into the following language in addition to English: Spanish
b. The County will print and mail voter information guides and candidate’s statement to all voters in English and Spanish.

SECTION 3. The following provisions shall govern payment relating to candidate statements:
a. The candidate shall be required to pay for the cost of translating the candidate’s statement into any required foreign language as specified in (a) and/or (b) of Section 2 above pursuant to Federal and/or State Law.

CC Reso No. 2026-xx Page 2 of 3 June 9, 2026
b. The candidate shall be required to pay for the cost of printing the candidate’s statement in English and Spanish.
c. The City Clerk shall estimate the total cost of printing, handling, translating, and mailing the candidate’s statement filed pursuant to this section, including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended), and require each candidate filing a statement to pay in advance to the local agency his pro rata share as a condition of having his or her statement included in their voter’s pamphlet. In the event the estimated payment is required, the estimate is just an approximation of the actual cost that varies from one election to another election and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements. Accordingly, the clerk is not bound by the estimate and may, on the pro rata basis, bill the candidate for additional actual expense or refund any excess paid depending on the final actual cost. In the event of underpayment, the clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the clerk shall prorate the excess amount among the candidates and refund the excess amount paid within 30 days of the election.

SECTION 4. No Candidate will be permitted to include additional materials in the voter information guide.

SECTION 5. The City Clerk shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nominating petitions are issued.

SECTION 6. All previous Resolutions establishing Council policy on payment for candidate’s statements are repealed.

SECTION 7. This Resolution shall apply only to the election to be held on Tuesday, November 3, 2026, and shall then be repealed.

SECTION 8. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the Book of Resolutions.

SECTION 9. The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution.

SECTION 10. If any section, subsection, sentence, clause, or phrase of this resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause, or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid or unconstitutional.

CC Reso No. 2026-xx Page 3 of 3 June 9, 2026
SECTION 11. The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 12. This resolution shall take effect immediately upon adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 9th day of June 2026. ___________________________
Bill Hussey
Mayor
ATTEST:

Daysi Alcocer
City Clerk
APPROVED AS TO FORM:

Adrian R. Guerra
City Attorney

AGENDA REPORT
MEETING DATE: June 9, 2026
TITLE: Approval of Amendment to the Fire Hazard Abatement Services Agreement with the San Bernardino County Fire Protection District PRESENTED BY: Konrad Bolowich, City Manager
RECOMMENDATION: THAT THE CITY COUNCIL APPROVE THE AMENDMENT TO THE FIRE

HAZARD ABATEMENT SERVICES AGREEMENT BETWEEN THE CITY

OF GRAND TERRACE, THE COUNTY OF SAN BERNARDINO, AND THE

SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT,

AUTHORIZING THE TRANSFER OF ADMINISTRATION OF THE FIRE

HAZARD ABATEMENT PROGRAM FROM THE COUNTY LAND USE

SERVICES DEPARTMENT TO THE SAN BERNARDINO COUNTY FIRE

PROTECTION DISTRICT AND EXTENDING THE TERM OF THE
AGREEMENT THROUGH JUNE 30, 2031
2030 VISION STATEMENT:

This staff report supports Goal #1, Ensure our Fiscal Viability and Goal #2, Maintain Public Safety BACKGROUND:

Since 2010, the City of Grand Terrace has contracted with the County of San Bernardino for administration and enforcement of the City's Fire Hazard Abatement Program. The agreement was originally approved by the San Bernardino County Board of Supervisors on August 24, 2010, and has provided inspection, notification, enforcement, and abatement services related to hazardous vegetation, weeds, and combustible debris that may pose a fire risk within the City.

The Fire Hazard Abatement Program assists the City in meeting its responsibility to reduce wildfire and fire-related risks by identifying properties with hazardous vegetation or combustible materials and ensuring that those hazards are properly abated. The program is particularly important during periods of elevated fire danger and serves as an important component of the City's overall public safety and risk reduction efforts.

The County has recently reorganized administration of the program and is transferring responsibility for the Fire Hazard Abatement Program from the County Land Use Services Department to the San Bernardino County Fire Protection District. To facilitate this transition, the County, the Fire Protection District, and participating cities are executing amendments to the existing agreements assigning all responsibilities, obligations, and authority under the agreement to the Fire Protection District.

DISCUSSION:

The proposed amendment accomplishes three primary objectives:

1. Transfers administration of the Fire Hazard Abatement Program from the County Land Use Services Department to the San Bernardino County Fire Protection District.

2. Extends the term of the agreement through June 30, 2031.

3. Updates administrative contact information and formally assigns all rights, obligations, and responsibilities under the existing agreement to the Fire Protection District.

The amendment does not change the scope of services provided to the City. The Fire Protection District will continue performing the same inspection, notification, enforcement, and abatement coordination services that have historically been provided through the County's Land Use Services Department.

Additionally, there is no change in the City's cost structure or financial obligations under the agreement. The amendment is administrative in nature and serves primarily to memorialize the County's internal reorganization and transfer of program administration to the agency most directly responsible for fire prevention and community risk reduction activities.

Staff believes the transition is logical and appropriate given the Fire Protection District's expertise in fire prevention, vegetation management, and hazard mitigation activities. The amendment will ensure continuity of service while maintaining the City's longstanding participation in the County's regional Fire Hazard Abatement Program.

ENVIRONMENTAL IMPACT:

Approval of this agreement amendment is not a project under the California Environmental Quality Act (CEQA) pursuant to Section 15378 of the CEQA Guidelines because it is an administrative activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment.

FISCAL IMPACT:

There is no fiscal impact associated with approval of the amendment. The amendment does not increase costs, modify service levels, or alter the City's existing financial obligations under the agreement.

Standard Contract Page 1 of 3

THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY San Bernardino County Fire
Protection District
Department Contract Representative Monica Ronchetti
Telephone Number 909-386-8418
Contractor City of Grand Terrace
Contractor Representative Konrad Bolowich
Telephone Number 909 954 5175
Contract Term September 1, 2010, to June 30,
2031
Original Contract Amount $13,526 (Annual Amount)
Amendment Amount
Total Contract Amount $13,526 (Annual Amount)
Cost Center 1062022410
Grant Number (if applicable)

AGREEMENT BETWEEN

SAN BERNARDINO COUNTY,

SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT,

AND THE CITY OF GRAND TERRACE

RELATED TO THE FIRE HAZARD ABATEMENT PROGRAM
WHEREAS, on August 24, 2010 (Item No. 46), the Board of Supervisors for the County for the San Bernardino County, through its Land Use Services Department (County), approved Agreement No. 10- 806 (Agreement) with the City of Grand Terrace (City) related to the Fire Hazard Abatement (FHA) Program; and
WHEREAS, San Bernardino County Fire Protection District (SBCFPD) and the County have entered into an agreement to authorize SBCFPD to assume administration of the FHA Program; and WHEREAS, the County hereby assigns the FHA Agreement with City to SBCFPD, and upon assignment, all references to County in the Agreement shall be deemed to refer to SBCFPD; and WHEREAS, City consents to the assignment of the Agreement to SBCFPD; and Contract Number
10-806 A-1
SAP Number

WHEREAS, City and SBCFPD mutually desire to extend the term of the Agreement through June 30, 2031; and
NOW, THEREFORE, in consideration of the above, County, SBCFPD, and the City agree to amend the Agreement as follows:

1. Section XVI. of the Agreement is DELETED in its entirety and REPLACED with the following:

XVI. TERM AND TERMINATION
Unless this Agreement is terminated early, the term of this Agreement is from September 1, 2010, through June 30, 2031.

Notwithstanding the foregoing, either party may terminate this Agreement at any time upon 60 days prior written notice to the other party.

2. The address for the County in Section XVII. is DELETED and REPLACED with the following:

San Bernardino County Fire Protection District
Attn: Fire Marshal
598 S. Tippecanoe Avenue, 1st Floor
San Bernardino, CA 92415

3. Novation. The County hereby novates and assigns to SBCFPD all of County’s rights, title, interest and duties, liabilities, and obligations under the Agreement so as to substitute SBCFPD for County as a party to Agreement for all purposes as of the Effective Date of this amendment.

4. City hereby consents to the novation and assignment to SBCFPD.

5. The recital set forth above are true and correct and are incorporated into this Agreement by reference as though fully set forth herein.

6. This assignment of the Agreement to SBCFPD and extension of the Agreement term shall be effective as of August 5, 2026.

7. All other terms of the Agreement shall remain in full force and effect.

8. This agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same agreement. The parties shall be entitled to sign and transmit an electronic signature of this agreement (whether by facsimile, PDF or other 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 agreement upon request.

IN WITNESS WHEREOF, agreement has been executed and approved and is effective and operative as to each of the parties are herein provided.

FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department Aaron Gest, Deputy County Counsel
Date Date Date
San Bernardino County Fire Protection District City of Grand Terrace (Print or type name of corporation, company, contractor, etc.) By
Dawn Rowe, Chair, Board of Directors (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
CHAIR OF THE BOARD Title
Lynna Monell, Secretary

(Print or Type)
By Dated:

Deputy
Address
San Bernardino County
Dawn Rowe, Chair, Board of Supervisors
Dated:

SIGNED AND CERTIFIED THAT A COPY OF THIS

DOCUMENT HAS BEEN DELIVERED TO THE

CHAIR OF THE BOARD
Lynna Monell, Clerk

By

AGENDA REPORT
MEETING DATE: June 9, 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 $20,000.00; 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 $20,000.00.

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 $20,000.00 over that period. This amount is budgeted accordingly and will be coded to account 10- 140-250-000-000.

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
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 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 9th day of June 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: June 9, 2026
TITLE: Commitment of Fund Balance for Fiscal Year 2025-2026 in Accordance with Governmental Accounting Standards Board Statement No. 54 and City Reserves Policy No. 3.06
PRESENTED BY: Christine Clayton, Finance Director
RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GRAND TERRACE, CALIFORNIA, COMITTING FUND BALANCE FOR
FISCAL YEAR 2025-26 IN ACCORDANCE WITH GOVERNMENTAL
ACCOUNTING STANDARDS BOARD STATEMENT 54 AND CITY
RESERVES POLICY NO. 3.06
2030 VISION STATEMENT:

This staff report supports City Council Goal #1, “Ensuring Our Fiscal Viability,” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations and providing City Council scheduled updates on the City’s fiscal condition.

BACKGROUND:

In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions. Statement 54 is designed to modify fund balance reporting in governmental funds with the intention to improve financial reporting by providing fund balance categories and classifications that will be more easily understood by the users of our annual financial statements.

Fund balance refers to the difference between assets (what the City owns) and liabilities (what the City owes) in the governmental balance sheet. Users of governmental financial statements examine fund balance information to identify the available resources of the governmental entity. Statement 54 sets criteria for fund balance reporting that more clearly defines categories of fund balance. With more concisely defined categories, the nature and extent of the constraints placed on a government’s fund balance are clearer and more transparent.

DISCUSSION:

FUND BALANCE
To establish uniformity, GASB Statement 54 created five new classifications of fund balance. Each classification depicts the relative strength of the spending constraint for which the resources can be used. From most to least constrained, the classifications of fund balance are:

1. Non-spendable: Nonspendable fund balance includes amounts that are not in a spendable form (inventory, for example) or are required to be maintained intact (the principal of an endowment fund, or deposits for example).

2. Restricted: Restricted fund balance includes amounts constrained to specific purposes by their providers (such as grant providers, bondholders, and higher levels of government) through constitutional provisions or enabling legislation (balances in special revenue funds are restricted fund balances since their amounts are restricted for a specific purpose).

3. Committed: Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision-making authority, in this case, City Council. Commitments may be changed or lifted only by City Council through the same formal action that imposed the constraint originally. As approved by City Council in the previous year, the City’s General Fund committed fund balances consisted of:

1. Contingencies;

2. Community Projects/Services;

3. Public Safety; and

4. Equipment Replacement (Fixed Asset Fund).

4. Assigned: Assigned fund balance comprises amounts intended to be used by the governing body (City Council) for specific purposes. The intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In this case, staff is requesting that the City Council delegate to the City Manager and/or the Finance Director the authority to assign fund balance. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are intended to be used for the purpose of that fund.

5. Unassigned: Unassigned fund balance is the residual classification for the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. If another governmental fund has a fund balance deficit, then it will be reported as a negative amount in the unassigned classification in that fund.

Positive unassigned amounts will be reported only in the general fund.

SUB-FUNDS
City staff established several funds for various programs and activities that staff believed should be recorded and tracked separately from the General Fund for ease of reporting to management and City Council. With the implementation of Statement 54, these funds would be combined with the General Fund’s (Fund 10) fund balance for reporting purposes in the annual financial statements according to the GASB policy; however, City staff will continue to provide internal separate fund reports to City Council for transparency. The funds that will be reported as the collective “General Fund” in the City’s annual financial statements include:

1. General Fund (Fund 10)

2. Community Benefits Fund (Fund 61)

3. Light Up Grand Terrace Fund (Fund 62)

4. GT Illegal Fireworks Enforcement Fund (Fund 63)

5. Public Safety Fund (Fund 64)

6. Community Day Fund (69)

7. Equipment Replacement Reserve Fund (Fund 70)
As stated in the Generally Accepted Accounting Principles (GAAP), the General Fund (for purposes of the City’s financial statements) which combines all seven (7) funds listed above into one fund, should maintain a reserve equal to two (2) months of operating revenues (estimates based on budgeted revenues).

The table below shows the collective fund balance of the General Fund and as it relates to the GAAP minimum balance requirement as of June 30, 2026:

Table 1
General
Fund
Comm.

Benefits
Fund
Light Up
Grand
Terrace
Fund
Illegal
Fireworks
Fund
Public
Safety
Fund
Community
Day Fund
Eqpt
Replc
Reserve
TOTAL
(10) (61) (62) (63) (64) (69) (70)
Fund
balance,
7-1-2024
$10,430,084 $84,862 ($259) $193 $23,313($324) $674 $10,538,543 Actual
Revenues
(2024-
25)
$8,913,705 $22,498 $31,272 $6 $716 $8,804 $5 $8,977,006 Actual
Expenses
(2024-25
($10,688,562)($20,000)($23,795)$0 $0 ($16,552) ($70,852) ($10,819,761) Fund
balance,
6-30-
2025
$8,655,227 $87,360 $7,218 $199 $24,029(8,072) ($70,173) $8,695,788 Estimated
Revenues
(2025-26)
$9,969,505 $20,000 $35,434 $0 $0 $20,000 $180,728 $10,225,667 Estimated
Expense
(2025-26)
($10,075,800)($20,000)($35,434)$0 $0 ($20,000) ($180,728)($10,331,962) Fund
balance,
6-30-
$8,548,932 $87,360 $7,218 $199 $24,029($8,072) ($70,173) $8,589,493

2026
Operating
Reserve
(2 months
of
revenues)
$1,661,584 $3,333 $5,906 $0 $0 $3,333 $30,121 $1,704,277 As stated earlier, the City uses its budgeted revenues to calculate the minimum fund requirements.

The FY2025-26 estimated revenues for the collective General Fund are as follows:

Table 2
General
Fund
Comm.

Benefits
Fund
Light
Up
Grand
Terrace
Fund
Illegal
Fireworks
Fund
Public
Safety
Fund
Community
Day Fund
Eqpt
Replc
Reserve
TOTAL
(10) (61) (62) (63) (64) (69) (70)
Estimated
Revenues
(2025-26)
$9,969,505 $20,000$35,434$0 $0 $20,000 $180,728$10,225,667 Operating Reserve
(2
months
revenues)
$1,661,584 $3,333 $5,906 $0 $0 $3,333 $30,121 $1,704,277 The formula for maintaining a reserve equal to two (2) months of operating revenues is:

FY2025-26 Estimated revenues: $10,225,667
--------------- X 2 = $1,704,277 (16.7%)
12 Staff is recommending that City Council adopt the attached resolution committing the General Fund’s fund balance for Fiscal Year 2025-26 in the following categories shown below:

Table 3
City of Grand Terrace
Fund Balance Designation: FY2025-26
Nonspendable:

Prepaid Costs $0
Land Held for Resale $0
Restricted for:

Community
Development Projects
$0
(e.g. Parks Fund,
Facilities Fund)
Public Safety (e.g.

SLESF Fund)
$0
Public Works (e.g.

Street Fund, facilities
projects)
Barton/Colton Bridge
$0
$1,000,000
Infrastructure Projects $1,500,000
Committed to:

Committed to
Contingencies
(General Fund: #10)
$1,425,000
Committed to
Community Services
• Community
Benefits Fund:
#61
$3,400
• Light Up Grand
Terrace Fund:
#62
$2,400
Committed to
Equipment
Replacement (Fixed
Assets Fund:#70)
$955,000
Assigned
Assigned for
continuing
appropriations
(commitments,
projects approved in
current and prior years
that must be carried
forward into the new
fiscal year)
$50,000
Assigned for future
debt obligations
$94,000
Unassigned $3,559,693
Total Fund Balance,

GENERAL FUND
$8,589,493

ENVIRONMENTAL IMPACT:

N/A
FISCAL IMPACT:

There is no fiscal impact to approving the resolution, designating Fund balance and implementing Statement 54. Total fund balance reported with or without Statement 54 would be the same; only the components of fund balance will be altered.

CC Reso No. 2026-xx Page 1 of 3 June 9, 2026
RESOLUTION NO. 2026-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, COMMITTING FUND BALANCE FOR FISCAL YEAR 2025-26 IN ACCORDANCE WITH GOVERNMENTAL
ACCOUNTING STANDARDS BOARD STATEMENT 54 AND CITY
RESERVES POLICY NO. 3.06
WHEREAS, the Governmental Accounting Standards Board (GASB) issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishing a hierarchy clarifying the constraints that govern how a government entity can use amounts reported as fund balance; and
WHEREAS, GASB 54 allows the governing body to formalize the commitment of unassigned fund balance to a specified purpose; and
WHEREAS, the City Council of the City of Grand Terrace is the highest level of decision-making authority for the City of Grand Terrace, and has the authority to commit, assign, or evaluate existing fund balance classifications and identify the intended uses of committed or assigned funds; and
WHEREAS, the committed fund balance classification reflects amounts subject to internal restraints self-imposed by the City Council; and WHEREAS, once the committed fund balance restraints are imposed, it requires the constraint to be removed by the City Council prior to redirecting the funds for other purposes; and
WHEREAS, the City Council has determined it will commit its General Fund reserves for Fiscal Years 2025-26 as shown in the table below.

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

SECTION 1. The City Council finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution.

SECTION 2. The City Council hereby commits the following fund balance as shown in the table below for fiscal year 2025-2026 in accordance with Governmental Accounting Standards Board Statement 54 and City Reserves Policy No. 3.06:

CC Reso No. 2026-xx Page 2 of 3 June 9, 2026
City of Grand Terrace
Fund Balance Designation: FY2025-26
Nonspendable:

Prepaid Costs $0
Land Held for Resale $0
Restricted for:

Community Development Projects $0
(e.g., Parks Fund, Facilities Fund)
Public Safety (e.g., SLESF Fund) $0
Public Works (e.g., Street Fund, facilities projects) $0 Barton/Colton Bridge $1,000,000
Infrastructure Projects $1,500,000
Committed to:

Committed to Contingencies $1,425,000
Committed to Community Services
· Community Benefits Fund: #61 $3,400
· Light Up Grand Terrace Fund: #62 $2,400
Committed to Equipment Replacement (Fixed Assets
Fund #70)
$955,000
Assigned:

Assigned for continuing appropriations
(commitments, projects approved in current and prior
years that must be carried forward into the new fiscal
year)
$50,000
Assigned for future debt obligations $94,000
Unassigned: $3,559,693
Total Fund Balance, GENERAL FUND $8,589,493
SECTION 3. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the City of Grand Terrace hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

SECTION 4. The City Clerk shall certify to the adoption of this Resolution, which, shall in turn, have immediate effect.

CC Reso No. 2026-xx Page 3 of 3 June 9, 2026
PASSED, APPROVED and ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 9th day of June 2026.

Bill Hussey
Mayor
ATTEST:

Daysi Alcocer
City Clerk
APPROVED AS TO FORM:

Adrian R. Guerra
City Attorney

AGENDA REPORT
MEETING DATE: June 9, 2026
TITLE: Public Hearing for 2026-27 Landscape & Lighting Assessment District 89-1 PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GRAND TERRACE APPROVING THE ENGINEER'S ANNUAL REPORT,

CONFIRMING THE DIAGRAM AND ASSESSMENT, AND ORDERING THE

LEVY AND COLLECTION OF ASSESSMENTS WITHIN THE CITY OF

GRAND TERRACE LANDSCAPING AND STREET LIGHTING DISTRICT
NO. 89-1 FOR FISCAL YEAR 2026-27.
2030 VISION STATEMENT:

This staff report supports Goal #1, "Ensure Our Fiscal Viability," by providing a dedicated funding mechanism for the maintenance and operation of street lighting, landscaping, and related improvements that benefit properties within Assessment District No. 89-1.

BACKGROUND:

Landscaping and Lighting Assessment District No. 89-1 was formed to provide funding for the maintenance and operation of street lighting, landscaping, and related improvements that benefit properties within the District.

On May 12, 2026, the City Council adopted a Resolution preliminarily approving the Engineer's Report and setting the public hearing for June 9, 2026.

DISCUSSION:

The Engineer's Report identifies the costs associated with maintaining landscaping, street lighting, and related improvements within Landscape and Lighting Assessment District No. 89-1 and allocates those costs to the properties that benefit from those improvements.

Notice of the public hearing was provided in accordance with state law. The purpose of the hearing is to allow property owners and other interested parties an opportunity to comment on the proposed assessments for Fiscal Year 2026-27.

Following the public hearing, the City Council may approve the Engineer's Report, confirm the assessments, and authorize the assessments to be placed on the San Bernardino County property tax roll for collection.

The proposed assessment rates for Fiscal Year 2026-27 are:

Zone 1 (Tract 13364): $282.33
Zone 2 (Tract 14264) $1,415.64
Zone 3 (Tract 14471) $197.03

Zone 4 (Tract 17766): $33.04
Zone 5 (Tract 18793): $124.44
Zone 6 (Tract 18071): $884.85
Zone 7 (Tract 18604): $27.51
ENVIRONMENTAL IMPACT:

The proposed action is exempt from the California Environmental Quality Act (CEQA) because it relates to the continued maintenance and operation of existing landscaping, street lighting, and related improvements.

FISCAL IMPACT:

The Engineer's Report estimates a total cost of $28,571.55 to maintain Landscape and Lighting Assessment District No. 89-1 during Fiscal Year 2026-27. Assessment revenues will be collected through the San Bernardino County property tax roll. Due to assessment limitations within Zones 1 and 2, the General Fund will contribute $12,616.76 toward District maintenance costs, with the remaining costs recovered through assessments levied on benefited properties.

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

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

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

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

Dated this ____________ day of ______________, 2026.

Willdan Financial Services
Assessment Engineer
On Behalf of the City of Grand Terrace
By: ________________________________
Chonney Gano, Project Manager
District Administration Services
By: ________________________________
Tyrone Peter
P. E. # C 81888
13th May

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

This Report consists of the following sections:

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

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

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

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 3
Section IV
Assessment Diagrams: A diagram showing the boundaries of the District is provided in this Report and includes all parcels that receive special benefits from the improvements.

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

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

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

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 4
Incidental expenses associated with the improvements including, but not limited to:
 The cost of preparation of the Report, including plans, specifications, estimates, diagram, and assessment;
 The costs of printing, advertising, and the publishing, posting, and mailing of notices;
 Compensation payable to the County for collection of assessments;  Compensation of any engineer or attorney employed to render services;  Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
 Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5.
 Costs associated with any elections held for the approval of a new or increased assessment.

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

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

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

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

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

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

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

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

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

2026/2027 City of Grand Terrace L&L AD No. 89-1 Page 6
(b) Lighting
Poles, fixtures, bulbs, conduits, equipment posts and pedestals, metering devices and appurtenant facilities as required to provide lighting in public right-of-ways and easements within the proposed boundaries of the District.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Total Balance to Levy = Levy per EBU
Total EBU

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
ZONE 4

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

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
ZONE 5

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

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
Zone 6

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

CITY OF GRAND TERRACE

LANDSCAPE AND LIGHTING ASSESMENT DISTRICT
ZONE 7

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

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

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

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

CC Reso No. 2026-xx Page 1 of 3 June 9, 2026
RESOLUTION NO. 2026-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA, APPROVING THE ENGINEER’S REPORT FOR

THE CITY OF GRAND TERRACE LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT NO. 89-1 AND CONFIRMING THE DIAGRAM

AND ASSESSMENT AND ORDERING THE LEVY AND COLLECTION OF
THE ASSESSMENTS FOR FISCAL YEAR 2026-2027
WHEREAS, the CITY COUNCIL of the CITY OF GRAND TERRACE, CALIFORNIA, (hereinafter referred to as “City Council”) pursuant to the provisions of Landscaping and Lighting Act of 1972, Part 2 of Division 15, of the California Streets and Highways Code (hereafter referred to as the “Act”) has by previous resolutions initiated proceedings, declared its intention to levy and collect annual assessments and preliminarily approved the Engineer's Report (hereinafter referred to as the “Report”) for the annual levy of assessments, consisting of plans and specifications, an estimate of the cost, a diagram of the district, and an assessment relating to what is now known and designated as:

CITY OF GRAND TERRACE
LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 89-1
(hereinafter referred to as the "District"); and,
WHEREAS, by its Resolutions Nos. 2026-06, 2026-07, and 2026-08 adopted May 12th, 2026, the City Council preliminarily approved the Report, declared its intention to levy an assessment in connection with the District for Fiscal Year 2026-2027, and called a public hearing on the assessment for June 9th, 2026 (the “Hearing”); and WHEREAS, at the Hearing, which was noticed as required by law, all interested persons were afforded the opportunity to hear and be heard and the City Council considered all oral and written statements and all written protests made or filed by any interest person pursuant to Chapter 3, Section 22629 of the Act; and
WHEREAS, this City Council has now carefully examined and reviewed the Report as presented, considered all testimony and evidence, is satisfied with each and all of the items and documents as set forth therein, and is satisfied that the proposed assessments, on a preliminary basis, have been spread in accordance with the benefits received from the maintenance to be performed, as set forth in said Report; and WHEREAS, the City Council now desires to complete proceedings to levy the Fiscal Year 2026-2027 assessment in connection with the District.

CC Reso No. 2026-xx Page 2 of 3 June 9, 2026

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

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

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

A. Plans and specifications;
B. Method of Apportionment;
C. Estimate of cost;
D. Assessment Diagram of the District;
E. Assessment of the estimated cost;
SECTION 3. The City Council hereby approves the Report and the assessments contained therein and finds that the assessments so described comply with the provisions of the California Constitution Article XIIID.

SECTION 4. The Report is hereby ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. The City Clerk shall certify the passage and adoption of this Resolution, and the minutes of this meeting shall so reflect the presentation of the Report.

SECTION 5. The City Clerk is directed to file the diagram and assessment, or a certified copy thereof, with the San Bernadino County Auditor-Controller, together with a certified copy of this Resolution upon its adoption in accordance with Chapter 4, Article 1, Section 22641 of the Act. The assessments shall be collected at the same time and in the same manner as County taxes are collected, and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments.

SECTION 6. That the adoption of this Resolution shall constitute the District levy of the assessment for Fiscal Year 2026-2027.

SECTION 7. The City Clerk shall certify to the passage and adoption of this Resolution and it shall become effective immediately.

CC Reso No. 2026-xx Page 3 of 3 June 9, 2026
PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 9th day of June 2026. ________________________________
Bill Hussey
Mayor
ATTEST:
________________________________
Daysi Alcocer
City Clerk
APPROVED AS TO FORM:
________________________________
Adrian R. Guerra
City Attorney

AGENDA REPORT
MEETING DATE: June 9, 2026
TITLE: Second Reading and Adoption of an Ordinance Formalizing Public Works Standard Plans and Streetlight Design Standards
PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: CONDUCT THE SECOND READING AND ADOPT AN ORDINANCE OF

THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ADOPTING

PUBLIC WORKS STANDARD PLANS AND SPECIFICATIONS AND
STREETLIGHT DESIGN STANDARDS.
2030 VISION STATEMENT:

This staff report supports Goal #1: Ensure Our Fiscal Viability by establishing clear and consistent engineering standards that reduce administrative inefficiencies and support cost-effective project delivery.

BACKGROUND:

The City of Grand Terrace does not currently maintain a formally adopted set of Public Works Standard Plans and Specifications. In practice, the City has historically relied on the San Bernardino County Standard Plans and Specifications to support plan review, capital improvement projects, and development-related improvements.

While these standards are already used operationally, they have not been formally adopted by ordinance, which limits enforceability and creates potential inconsistencies.

In addition, the County standards do not include streetlight design criteria. To address this gap, the proposed ordinance formalizes the City's use of:
• The San Bernardino County Public Works Standard Plans and Specifications for civil infrastructure; and
• The City of Ontario Standard Drawings for street lighting, including associated conduit and electrical components specific to streetlight infrastructure, specifically Standard Drawings 5101 through 5108.

On May 26, 2026, the City Council conducted the first reading and introduction of the proposed ordinance. No substantive changes have been made since introduction, and the ordinance is now before the City Council for second reading and adoption.

DISCUSSION:

The proposed ordinance formalizes the City's use of the San Bernardino County Public Works

Standard Plans and Specifications and the City of Ontario Streetlight Standard Drawings as the City's adopted engineering standards.

The ordinance received its first reading and introduction on May 26, 2026. No substantive changes have been made since introduction. Adoption of the ordinance will establish clear and enforceable standards for public infrastructure improvements and streetlight design within the City.

Exhibit A contains the Table of Contents of the San Bernardino County Standard Plans and Specifications, which are incorporated by reference and maintained on file with the City Clerk and available on the City's website. Exhibit B contains the applicable City of Ontario Streetlight Standard Drawings.

ENVIRONMENTAL IMPACT:

The proposed ordinance is not a project under CEQA and will not result in any physical impact on the environment.

FISCAL IMPACT:

There is no fiscal impact associated with adoption of this ordinance.

01247.0001 2109360.1 Page 1 of 3
ORDINANCE NO. XXX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE ADOPTING BY REFERENCE THE SAN BERNARDINO

COUNTY PUBLIC WORKS STANDARD PLANS AND SPECIFICATIONS,

AND ADOPTING BY REFERENCE THE CITY OF ONTARIO

STREETLIGHT STANDARDS FOR USE IN PUBLIC IMPROVEMENT

DESIGN AND CONSTRUCTION
WHEREAS, the City of Grand Terrace does not currently maintain its own comprehensive set of public works standard plans and specifications for infrastructure improvements; and
WHEREAS, in practice, the City of Grand Terrace has historically utilized the San Bernardino County Standard Plans and Specifications in public works projects and formal procurement documents; and
WHEREAS, developing and maintaining a fully customized set of city-specific standards would require technical resources and funding that are not presently available; and
WHEREAS, the City Engineer, currently contracted part-time, is not equipped or credentialed to create or certify a complete set of original standard plans beyond his or her core area of expertise; and
WHEREAS, the San Bernardino County standards represent regionally recognized and widely used engineering practices, providing a consistent and efficient framework for public infrastructure within the San Bernardino County; and WHEREAS, the San Bernardino County standards do not include streetlight specifications; and
WHEREAS, the City of Ontario’s streetlight design standards are suitable for the City of Grand Terrace; and
WHEREAS, the City of Grand Terrace now desires to adopt by reference the San Bernardino County Public Works Standard Plans and Specifications and designate the City of Ontario’s streetlight design standards as the City of Grand Terrace’s adopted standard for streetlight infrastructure.

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

SECTION 1. The facts set forth in the recitals in this Ordinance are true and correct and incorporated herein by this reference.

SECTION 2. Adoption of San Bernardino County Standards. The City hereby adopts, by reference, the San Bernardino County Standard Plans and Specifications, as shown in Exhibit A, which is incorporated herein by reference and made part of this

01247.0001 2109360.1 Page 2 of 3
Ordinance. These standards shall serve as the City’s primary standard for all public works improvements, including roadway, drainage, and civil infrastructure. A copy of Exhibit A shall be kept on file in the City Clerk’s Office and made available for public inspection.

SECTION 3. Adoption of City of Ontario Streetlight Standards. The City further adopts, by reference, the City of Ontario Standard Drawings for street lighting, including associated conduit and electrical components specific to streetlight infrastructure, specifically Standard Drawings 5101 through 5108, as shown in Exhibit B, which is incorporated herein by reference and made part of this Ordinance. These standards shall serve as the City’s official design standards for streetlight improvements. A copy of Exhibit B shall be kept on file in the City Clerk’s Office and made available for public inspection.

SECTION 4. Interpretation, Conflict Resolution, and Engineer Authority. In the event of a conflict between adopted standards, the San Bernardino County Standard Plans shall govern for roadway, drainage, and civil improvements, and the City of Ontario Standard Drawings shall govern for street lighting and associated infrastructure, unless otherwise determined by the City Engineer.

Traffic control devices, including signage, pavement markings, and striping, shall conform to the California Manual on Uniform Traffic Control Devices (CA MUTCD), as may be amended from time to time. Where no adopted standard applies, the City Engineer is authorized to determine appropriate design criteria based on accepted engineering practices, including Caltrans standards.

The City Engineer shall have the authority to interpret, apply, and approve deviations or supplements to the adopted standards as necessary to meet site-specific or project-specific conditions, and may issue administrative guidance or technical bulletins consistent with sound engineering practices.

SECTION 5. California Environmental Quality Act (CEQA). The City Council finds that the adoption of this Ordinance is not a project under the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(5) of the CEQA Guidelines, as it is an administrative activity of the City that will not result in a direct or reasonably foreseeable physical change in the environment. Alternatively, even if deemed a project, this action is exempt from CEQA under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of regional public works standards will have a significant effect on the environment.

SECTION 6. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is, for any reason, held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance.

The City Council hereby declares that it would have passed this Ordinance, and each section, subsection, sentences, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional due to the writs of mandate issued by the Court.

SECTION 7. Effective Date. This Ordinance shall take effect and be in full force and effect thirty (30) days after its adoption. The City Clerk shall certify to the adoption of

01247.0001 2109360.1 Page 3 of 3
this Ordinance and cause the same to be published or posted in the manner required by law.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 9th day of June, 2026. _____________________________
Bill Hussey
Mayor
ATTEST:
____________________________
Daysi Alcocer
City Clerk
APPROVED AS TO FORM:
____________________________
Adrian R. Guerra
City Attorney

DWG DESCRIPTION
100 MAJOR DIVIDED HIGHWAY
100A MAJOR ARTERIAL
100B MAJOR ARTERIAL CHINO HILLS SPECIFIC PLAN AREA
101 MAJOR HIGHWAY
102 SECONDARY HIGHWAY
102A MAJOR HIGHWAY CHINO HILLS SPECIFIC PLAN AREA
103 COLLECTOR STREET
103B INDUSTRIAL COLLECTOR STREET
104 LOCAL STREET
104A LOCAL STREET (LESS THAN 1,000 ADT)
105 INTERSECTION DESIGN FRONTAGE STREET
106 FRONTAGE ROAD AND STREET
106A FRONTAGE ROAD AND STREET
107 INTERSECTION DESIGN DESERT ROAD
109 SIDEWALK
110 CURB RETURN WITH SIDEWALK RAMP
111 HALF WIDTH LOCAL STREET
112 HALF WIDTH DESERT ROAD
113 HALF WIDTH DESERT ROAD
114 GRADED ROAD
114A PAVED ROAD
114B PAVED ROAD - MOUNTAIN AREAS
114C PAVED ROAD - HILLSIDE AREAS
115 8" CURB AND GUTTER
116 6" CURB AND GUTTER
117 ASPHALT CONCRETE DIKE
117A TRAVERSABLE DIKE
119 CROSS GUTTER
120 CUL-DE-SAC
120A OFFSET CUL-DE-SAC
121 INTERSECTION DESIGN "L" SHAPE 60' RIGHT OF WAY
121A INTERSECTION DESIGN "L" SHAPE 50' RIGHT OF WAY
125 ALLEY
127 CURB CUT OFF WALL
127A ASPHALT CONCRETE CUT OFF WALL
128 RESIDENTIAL DRIVEWAY APPROACH WITH CURB
128A RESIDENTIAL DRIVEWAY APPROACH DEPRESSED WITH CURB
128B RESIDENTIAL DRIVEWAY APPROACH WITHOUT CURB AND GUTTER 128C RESIDENTIAL DRIVEWAY APPROACH WITH AC DIKE
129 COMMERCIAL DRIVEWAY APPROACH WITH CURB

SAN BERNARDINO COUNTY TRANSPORTATION DEPARTMENT

STANDARD DRAWINGS

TABLE OF CONTENTS

129A COMMERICIAL DRIVEWAY APPROACH DEPRESSED WITH CURB
129B COMMERCIAL DRIVEWAY WITH CURB RETURNS
129C COMMERCIAL DRIVEWAY APPROACH WITHOUT CURB AND GUTTER 129D COMMERICAL DRIVEWAY APPROACH WITH AC DIKE
130 DRIVEWAY SPACING
131 DRIVEWAY GRADES
200 CUTOFF WALL FOR DRAINAGE CHANNEL
200A CHANNEL CROSSING
201 GRAVITY HEADWALL
202 CATCH BASIN MOUNTAIN ROADS
202A CATCH BASIN MOUNTAIN ROADS
203 LOCAL DEPRESSION 8" CURB
203A LOCAL DEPRESSION 6" CURB
203B LOCAL DEPRESSION
204 MANHOLE FRAME AND COVER - PARKWAY
205 36" MANHOLE FRAME AND COVER
205A 36" MANHOLE FRAME AND COVER
205B MANHOLE (CONCRETE RIBBON)
206 TYPE "A" CATCH BASIN
206A CATCH BASIN OPENING
206B GALVANIZED STEEL STEP
207 FULL TRASH CAPTURE DEVICE (FTCD)
207A BMP INFILTRATION DRAINAGE INLET
208 STORM DRAIN CLEANOUT
209 HEADWALL WING-TYPE
209A HEADWALL 'U'-TYPE
210 CURB OUTLET STRUCTURE
210A OUTLET STRUCTURE
211 PARKWAY CULVERT W/STEEL PLATE COVER
300 RIGHT OF WAY FENCE
301 NON RETAINING CONCRETE BLOCK WALL
302 BLOCK WALL LOCATION AT INTERSECTION
303 STREET MARKER
303A STREET MARKER (TYPICAL LOCATION)
303B STREET MARKER INSTALLATION
303C STREET MARKER DESERT ROAD - 2 1/2 ACRE
304 MARKERS
304A MARKERS
305 BARRICADE URBAN AREA
305A END OF STREET TEMPORARY PAVEMENT
305B BARRICADE RURAL AREA
305C ROAD CLOSURE BARRICADE
305D ROAD CLOSURE BARRICADE WITH DETOUR
305E PARTIAL ROAD CLOSURE BARRICADE WITH DETOUR
305F PARTIAL ROAD CLOSURE BARRICADE
306 POST WITH REFLECTOR
307E PAVEMENT MARKER (TYPE A)

310 FIRE HYDRANT LOCATION
311 UNDERGROUND UTILITY LOCATION
311A MANHOLE APRON PAVED ROAD
312 MAILBOX (SINGLE INSTALLATION)
312A MULTIPLE MAILBOX INSTALLATION FOR NEW SIDEWALK
312B MULTIPLE MAILBOX INSTALLATION FOR EXISTING SIDEWALK 313 TYPICAL SIGN INSTALLATION
400 RAISED MEDIAN
401 THICKENED ASPHALT CONCRETE EDGE
402 INTERIM ASPHALT CONCRETE TRANSITION
403 BOUNDARY CHAIN LINK FENCE
404 CHANNEL WALL CHAIN LINK FENCE
500A BRIDGE OR CULVERT GUARDRAIL RETROFIT
500B BRIDGE OR CULVERT GUARDRAIL RETROFIT
501A FLATBED TRUCK FALL PROTECTION
501B FLATBED TRUCK FALL PROTECTION

Standard
Drawing No. Details Approval Date
5101 Street Light Standard 1-Feb-2024
5102 Street Light Installation Detail
5103 King Street Light Standard 9-Sep-2010
5104 Drive Approach Street Light Relocation 8-Aug-2006
5105 Underground Electrical Feed Point 12-Oct-2022
5106 Street Light Pedestal Wiring Diagram 12-Oct-2022
5107 Corsican Street Light Standard 9-Sep-2010
5108 Carpinteria Street Light Standard 4-Nov-2014
Traffic Standard Drawings List
23-Dec-2025Page 137 of 188

AGENDA REPORT
MEETING DATE: June 9, 2026
TITLE: Adoption of the FY2026-27 Proposed Budget
PRESENTED BY: Christine Clayton, Finance Director
RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET
FOR FISCAL YEAR 2026-27.
2030 VISION STATEMENT:

This staff report supports City Council Goal #1 "Ensure of Fiscal Viability" through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations.

BACKGROUND:

In prior years, staff has submitted, for City Council’s review and approval, the proposed budget for the upcoming year. Once approved, this document has served as the City's financial plan for the following year and acts as the basis for budgetary control.

For Fiscal Year (FY) 2025-26, City Council approved a one-year budget, with any adjustments submitted for the FY2025-26 budget, during the current year.

An annual budget allows the city to:

1. Improve financial management,

2. Greater flexibility to respond to our confusing and uncertain environment,

3. Greater ability to shift resources because of service level demands; and

4. Quickly Reallocation and redeploy resources.

DISCUSSION:

GENERAL FUND
FISCAL YEAR 2025-26
Table 1 reflects the FY2025-26 Year-End Revenue and Expenditure projections.

City of Grand Terrace
FY 2025-26 General Fund Revenue and Expenditure Report

Revenues 2025-26 2025-26
Adj. Budget 05-26-26 Projections 03-18-2026
Property Tax $5,190,000 $6,478,224
Proceeds from Sale of
Property
$0 $0
Franchise Fees $675,000 $708,466
Licenses, Fees & Permits $505,320 $470,509
Sales Tax $1,600,000 $1,372,682
Intergovernmental
Revenue/Grants
$58,500 $43,791
Charges for Services $132,500 $47,914
Fines & Forfeitures $41,000 $21,591
Miscellaneous $33,624 $144,065
Use of Money & Property $72,660 $200,463
Wastewater Receipts $401,500 $481,800
Transfers In $0 $0
Total Revenues $8,710,104 $9,969,505
Expenditures
Salaries $2,186,753 $1,974,924
Benefits $1,642,959 $1,571,925
Materials & Supplies $455,175 $434,991
Professional/Cont. Services $4,552,992 $4,974,117
Equipment $50,400 $411,946
Lease of Facility/Equipment $3,750 $5,316
Utilities $257,620 $256,777
Overhead Cost Allocation ($281,950) ($90,145)
Capital Projects $0 $56,000
Debt Service $0 $3
Transfers Out $208,152 $479,946
Total Expenditures $9,075,851 $10,075,800
Revenues $8,710,104 $9,969,505
Expenditures ($9,075,851) ($10,075,800)
Projected Surplus ($365,747) ($106,295)
FISCAL YEAR 2026-27
The City continues to receive optimistic sales tax projections that build on the success from prior and current year sales tax growth. Staff continues to meet with our property and sales tax consultants (HdL) to monitor quarterly sales tax trends.

Revenues:

1. Property Tax projections: Were provided by HdL with funds being received in the amount of $4,1450,000; and

2. Property Tax VLF swap projections: Were provided by HdL in the amount of $2,370,000; and

3. Sales Tax projections: HdL projects sales tax revenue for FY2026-27 in the amount of $1,350,000.

Expenditures:

1. For the Sheriff’s Department, the proposed contract amount is $3,061,144, which is a 13.6% increase from fiscal year 2025-26, which equates to $366,766. The contract proposes the addition of a Sheriff's Service Specialist and in personnel liability and bonding.

2. Under Public Works, the addition of a Senior Management Analyst with costs ranging from $140,000 to $163,200.

3. General Fund Maintenance of Effort: The City receives Measure “I” funds (1/2 cent sales tax collected throughout San Bernardino County for transporation improvements - $332k) and Road Maintenance and Rehabilitation Program (RMRP) funds ($330k) into the RMRA Fund for use on local street and road systems. The term “Maintenance of Effort” (MOE) generally refers to a requirement placed upon state and federally funded grant programs that requires local cities and counties to maintain general fund spending for streets and roads either through a certain percentage or formula, which may include the local agency’s history of past spending on street rehabilitation and/or maintenance.

Table 2 summarizes the FY2026-27 Proposed General Fund Budget:

City of Grand Terrace
FY 2026-27 Proposed General Fund Revenue and Expenditure Report Revenues Proposed
05/26/2026
Property Tax $6,515,000
Franchise Fees $710,000
Licenses, Fees & Permits $665,300
Sales Tax $1,350,000
Intergovernmental Revenue/Grants $60,000
Charges for Services $58,400
Fines & Forfeitures $35,000
Miscellaneous $25,000
Use of Money & Property $219,200
Wastewater Receipts $481,800
Transfers In $13,000
Total Revenues $10,132,700
Expenditures Proposed
05/26/2026
Salaries $2,344,229
Benefits $1,741,021
Materials & Supplies $508,975
Professional/Contractual Services $5,031,625
Equipment $86,500
Lease of Facility/Equipment $4,850
Utilities $273,530
Overhead Cost Allocation ($90,145)
Capital Projects $1,250

Transfers Out $229,052
Total Expenditures $10,130,887
Revenues $10,132,700
Expenditures ($10,130,887)
Fund Balance $1,813
There is no liquidation of assets that will impact the Fund Balance. The projected revenues are greater than the projected expenditures. This is consistent with the City Council’s policy to not fund ongoing expenses with one-time revenue.

CITY-WIDE PROPOSED FY2026-27 BUDGET
The total Proposed Budget for FY2026-27 is $13,536,431 in revenues and $14,544,305 in expenditures. The overage of expenditures versus revenues is due to a one-time expenditure for traffic signals. Revenues from Fund 25 - Spring Mountain Ranch that were received in prior years will offset these expenditures.

The City’s Proposed Budget, which is presented for City Council’s review and consideration, • Supports the City’s mission, vision, core values and goals by preserving and protecting the community and its exceptional quality of life; and
PROPOSED BUDGET BY FUND FY 2026-27
The next two tables show the Citywide Proposed Revenues and Expenditure budgets by fund:

Table 3 (Proposed Revenues)
City of Grand Terrace
FY 2026-27 Proposed Revenue Summary by Fund
2024-25 2024-25 2025-26 2025-26 2026-27
Fund Type Adjusted
Budget
Actuals Adjusted
Budget
Year-End
Projections
Proposed
Budget

GENERAL FUNDS
10 GENERAL FUND $8,251,489 $8,913,707 $8,710,104 $9,969,505 $10,132,700 61 COMMUNITY

BENEFITS FUND
$20,000 $22,498 $20,000 $20,000 $20,000
62 LIGHT UP GRAND

TERRACE
$33,000 $31,272 $33,000 $35,434 $33,000
63 GT ILLEGAL

FIREWORKS

ENFORCEMENT
$2,000 $6 $0 $0 $0
64 PUBLIC SAFETY
FUND
$0 $716 $0 $0 $0
69 COMMUNITY DAY
FUND
$22,000 $8,805 $20,000 $20,000 $20,000
68 40TH YEAR

BIRTHDAY

CELEBRATION FND
$0 $0 $0 $0 $0

70 EQUIP

REPLACEMENT

RESERVE FUND
$0 $5 $0 $180,728 $0
71 FIRE STATION

PROCEEDS
$0 $819,780 $0 $0 $0

DEVELOPMENT

IMPACT FEES (DIF)
11 STREET FUND $88,000 $24,808 $58,000 $4,801 $0
12 STORM DRAIN FUND $800 $12,771 $3,500 $3,423 $0
13 PARK FUND $800 $70,066 $800 $775 $0
19 FACILITIES FUND $1,800 $5,811 $3,300 $3,253 $2,500

SPECIAL REVENUE
FUNDS
14 SLESF (AB3229
COPS)
$185,500 $196,718 $196,100 $202,733 $201,100
15 AIR QUALITY

IMPROVEMENT
FUND
$16,400 $19,664 $17,200 $17,178 $17,400
16 GAS TAX FUND $438,400 $456,807 $441,000 $440,898 $441,000 17 TRAFFIC SAFETY
FUND
$5,000 $6,127 $4,000 $3,993 $4,500
20 MEASURE "I" FUND $330,400 $349,658 $342,500 $342,500 $332,500 25 SPRING MOUNTAIN
RANCH
$2,000 $30,134 $0 $30,000 $0
26 LNDSCP & LGTG

ASSESSMENT DIST
$60,732 $71,507 $72,219 $72,219 $72,219
56 ROAD MAINT &

REHAB ACCT
$305,000 $370,614 $325,000 $324,900 $330,000
67 PUBLIC,

EDUCATIONAL &

GOVT ACCESS
$19,300 $21,552 $19,300 $26,247 $22,000
76 EIFD - ENHANCED

INFRAST FIN DIST
$0 $0 $0 $0 $0
85 OPIOID SETTLEMENT

PAYMENTS
$3,400 $28,231 $3,400 $9,549 $8,000
90 COVID-19 FEMA

REIMBURSEMENT
FUND
$0 $0 $0 $0 $0
91 SB COUNTY COVID19 $0 $0 $0 $0 $0
93 COVID –

INFRASTRUCTURE
$0 $0 $0 $0 $0
94 ARPA $0 $0 $0 $0 $0

ENTERPRISE FUND
21 WASTEWATER

DISPOSAL FUND
$4,000 $52,605 $10,000 $9,578 $10,000

GRANT FUNDS
22 CDBG - COMM DEV

BLOCK GRANT
$90,000 $73,929 $138,678 $128,678 $124,998
65 SENIOR BUS

PROGRAM FUND
$114,996 $72,623 $109,334 $269,334 $109,514
66 CAL RECYCLE
GRANT
$0 ($20,880) $0 $0 $0
73 ACTIVE

TRANSPORTATION

PRGRM FUND
$0 $0 $0 $0 $0
74 HIGHWAY SAFETY

IMPROV PROGRAM
$0 $0 $0 $0 $0
75 EMERMGMT PREP
GRANT
$0 $0 $27,216 $0 $0
77 SO CAL INCENTIVE

PROJ (SCIP) GRANT
$0 $0 $0 $0 $0
92 CDBG – COVID $0 $0 $0 $0 $0

SUCCESSOR
AGENCY
31 S/A RDA REVENUE
FUND
$0 $0 $0 $0 $0
32 S/A CAPITAL

PROJECTS FUND
$0 $0 $0 $0 $0
33 S/A DEBT SERVICE
FUND
$0 $0 $0 $0 $0
36 2011 TABS A & B

BOND PROCEEDS
$0 $0 $0 $0 $0

CAPITAL PROJECT
FUNDS
45 CIP - COMMERCE
WAY
$0 $26,283 $0 $0 $0
46 CAPITAL

IMPROVEMENTS -

STREETS
$664,833 $896,749 $650,000 $750,000 $1,655,000
47 CAP.PRJ.

BARTON/COLTON
BRIDGE
$0 $0 $0 $0 $0
48 CAPITAL PROJECTS
FUND
$0 $0 $0 $0 $0
49 CAPITAL PROJECTS

FUND- PARKS
$0 $207,723 $0 $0 $0
50 CAPITAL PROJECT

BOND PROCEEDS
$0 $819,403 $0 $0 $0
52 HOUSING

AUTHORITY
$0 $108,638 $0 ($365) $0
95 DOG PARK $0 $0 $0 $0 $0

Table 4 (Proposed Expenditures)
City Of Grand Terrace
FY 2026-27 Proposed Expense Summary by Fund
2024-25 2024-25 2025-26 2025-26 2026-27
Fund Type Adjusted
Budget
Actuals Adjusted
Budget
Year-End
Projections
Proposed
Budget

GENERAL FUNDS
10 GENERAL FUND $8,918,863 $10,688,561 $9,075,851 $10,075,800 $10,130,887 61 COMMUNITY

BENEFITS FUND
$20,000 $20,000 $20,000 $20,000 $20,000
62 LIGHT UP GRAND

TERRACE
$33,000 $23,795 $33,000 $35,434 $33,000
63 GT ILLEGAL

FIREWORKS

ENFORCEMENT
$2,000 $0 $0 $0 $0
64 PUBLIC SAFETY
FUND
$0 $0 $0 $0 $0
69 COMMUNITY DAY
FUND
$22,000 $16,552 $20,000 $20,000 $20,000
68 40TH YEAR

BIRTHDAY

CELEBRATION
FND
$0 $0 $0 $0 $0
70 EQUIP

REPLACEMENT

RESERVE FUND
$0 $70,852 $0 $180,728 $0

DEVELOPMENT

IMPACT FEES
(DIF)
11 STREET FUND $0 $0 $0 $0 $0
12 STORM DRAIN
FUND
$0 $0 $0 $0 $0
13 PARK FUND $0 $0 $0 $0 $0
19 FACILITIES FUND $0 ($2,742) $0 $0 $0

SPECIAL

REVENUE FUNDS
14 SLESF (AB3229
COPS)
$185,550 $194,820 $195,000 $195,000 $200,550
15 AIR QUALITY

IMPROVEMENT
FUND
$0 $0 $20,000 $20,000 $25,000

ENDOWMENT FUND
$10,659,850 $13,698,330 $11,204,651 $12,865,361 $13,536,431

16 GAS TAX FUND $484,400 $503,726 $436,198 $436,198 $431,042 17 TRAFFIC SAFETY
FUND
$4,000 $0 $4,000 $4,000 $4,000
20 MEASURE "I"
FUND
$330,000 $335,598 $340,000 $340,000 $330,000
25 SPRING

MOUNTAIN RANCH
$0 $0 $0 $0 $1,041,000
26 LNDSCP & LGTG

ASSESSMENT
DIST
$52,325 $35,252 $41,545 $41,899 $40,315
56 ROAD MAINT &

REHAB ACCT
$305,000 $525,391 $325,000 $325,000 $330,000
67 PUBLIC,

EDUCATIONAL &

GOVT ACCESS
$16,800 $9,910 $16,800 $23,889 $22,000
76 EIFD - ENHANCED

INFRAST FIN DIST
$0 $0 $0 $0 $0
85 OPIOID

SETTLEMENT

PAYMENTS
$0 $0 $0 $0 $0
90 COVID-19 FEMA

REIMBURSEMENT
FUND
$0 $0 $0 $0 $0
91 SB COUNTY
COVID-19
$0 $0 $0 $0 $0
92 CDBG – COVID $0 $0 $0 $0 $0
93 COVID –

INFRASTRUCTURE
$0 $0 $0 $0 $0
94 ARPA $0 $69,717 $0 $0 $0

ENTERPRISE
FUND
21 WASTEWATER

DISPOSAL FUND
$0 $88,570 $0 $0 $0

GRANT FUNDS
22 CDBG - COMM

DEV BLOCK
GRANT
$90,000 $45,563 $138,678 $128,678 $124,998
65 SENIOR BUS

PROGRAM FUND
$114,996 $101,590 $109,334 $109,430 $109,514
66 CAL RECYCLE
GRANT
$0 $0 $0 $0 $0
73 ACTIVE

TRANSPORTATION

PRGRM FUND
$0 $0 $0 $0 $0
74 HIGHWAY SAFETY
IMPROV

PROGRAM
$1,691 $0 $0 $0 $0
75 EMER MGMT PREP
GRANT
$0 $0 $27,216 $0 $0

77 SO CAL

INCENTIVE PROJ
(SCIP) GRANT
$0 $0 $0 $0 $0

SUCCESSOR
AGENCY
31 S/A RDA REVENUE
FUND
$0 $0 $0 $0 $0
32 S/A CAPITAL

PROJECTS FUND
$0 $0 $0 $0 $0
33 S/A DEBT SERVICE
FUND
$0 $0 $0 $0 $0
36 2011 TABS A & B

BOND PROCEEDS
$0 $0 $0 $0 $0

CAPITAL

PROJECT FUNDS
45 CIP - COMMERCE
WAY
$0 $0 $0 $0 $0
46 CAPITAL

IMPROVEMENTS -

STREETS
$868,825 $896,749 $650,000 $684,852 $1,655,000
47 CAP.PRJ.

BARTON/COLTON
BRIDGE
$0 $0 $0 $0 $0
48 CAPITAL

PROJECTS FUND
$0 $33,810 $0 $0 $0
49 CAPITAL
PROJECTS FUNDPARKS
$0 $29,373 $0 $45,194 $0
50 CAPITAL

PROJECTS BOND

PROCEEDS
$0 $945 $0 $0 $0
52 HOUSING

AUTHORITY
$19,567 $22,338 $24,017 $44,637 $26,999
95 DOG PARK

ENDOWMENT
FUND
$0 $0 $0 $0 $0
$11,469,017 $13,710,370 $11,476,639 $12,730,739 $14,544,305 Budget Schedule
The proposed schedule leading to adoption of the FY2026-27 is as follows:

Description Date
Budget Workshop Tuesday, May 12th
Budget Introduction and Deliberations Tuesday, May 26th Continue Budget Deliberations and Budget
Adoption
Tuesday, June 9th

ENVIRONMENTAL IMPACT:

N/A
FISCAL IMPACT:

Fiscal impacts of the FY2026-27 Proposed Budget are identified in the FY2026-27 Proposed Budget Summary (which is being made available in the City Clerk’s office).

RESOLUTION NO. 2026-xx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR
FISCAL YEAR 2026-2027

RECITALS
WHEREAS, a Proposed Budget for Fiscal Year 2026-2027 was introduced during a regularly scheduled City Council meeting on May 26, 2026; and WHEREAS, continued deliberations for the Annual Budget for Fiscal Year 2026- 2027 was continued during a regularly scheduled City Council meeting on June 9, 2026; and
WHEREAS, the City Manager has heretofore submitted to the City Council a Proposed Budget for the City for Fiscal Year 2026-2027, a copy of which, as may have been amended by the City Council, is on file in the City Clerk’s Department and is available for public inspection; and
WHEREAS, the said Proposed Budget contains estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the City; and
WHEREAS, the said Proposed Budget contains the estimates of uses of fund balance as required to stabilize the delivery of City services during periods of operational deficits; and
WHEREAS, the City Council authorizes payment of expenses incurred by means of a check register prepared by the Finance Department and approved at regular meetings of City Council; and
WHEREAS, said expenses are recurring in nature, the amounts having been previously approved by ordinance or resolution or otherwise entailing normal, administrative expenses including tax deposits, utility costs, storage fees and related costs of doing business; and
WHEREAS, the City Council has made such revisions to the Proposed Budget as so desired; and
WHEREAS, the Proposed Budget conforms with the City’s 2030 Vision and 2014- 2020 Strategic Plan; and
WHEREAS, the Proposed Budget, as herein approved, will enable the City Council to make adequate financial plans and will ensure that City officers can administer their respective functions in accordance with such plans.

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

1. The Proposed Budget, with summaries listed as Attachment A to this Resolution and as on file in the City Clerk’s Department and as may have been amended by the City Council, is hereby approved and adopted as the Annual Budget of the City of Grand Terrace for Fiscal Year 2026-2027.

2. The amounts of proposed expenditures, which include the uses of fund balance specified in the approved budget, are hereby appropriated for the various budget programs and units for said fiscal years.

3. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the City of Grand Terrace hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.

4. The City Clerk shall certify to the adoption of this Resolution.

5. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the 9th day of June 2026.
________________________________
Bill Hussey
Mayor
ATTEST:
__________________________________
Daysi Alcocer
City Clerk
APPROVED AS TO FORM:
__________________________________
Adrian R. Guerra
City Attorney

CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 1 FY 2026-27 Proposed Budget
Type Fund Comb 1 Fund Type
2024-25
Adjusted
Budget
2024-25
Actuals
2025-26
Adjusted
Budget
2025-26
Year-End
Projections
2026-27
Proposed
Budget
R 10 R10 General Fund Rev $8,251,489 $8,913,707 $8,710,104 $9,969,505 $10,132,700 E 10 E10 General Fund Exp 8,918,863 10,688,561 9,075,851 10,075,800 10,130,887 $(667,374) $(1,774,854) $(365,747) $(106,295) $1,813
R 11 R11 Street Fund Rev 88,000 24,808 58,000 4,801 -
E 11 E11 Street Fund Exp - - - - -
$88,000 $24,808 $58,000 $4,801 $-
R 12 R12 Storm Drain Fund Rev 800 12,771 3,500 3,423 -
E 12 E12 Storm Drain Fund Exp - - - - -
$800 $12,771 $3,500 $3,423 $-
R 13 R13 Park Fund Rev 800 70,066 800 775 -
E 13 E13 Park Fund Exp - - - - -
$800 $70,066 $800 $775 $-
R 14 R14 SLESF (AB3229 COP S) Rev 185,500 196,718 196,100 202,733 201,100 E 14 E14 SLESF (AB3229 COP S) Exp 185,550 194,820 195,000 195,000 200,550 $(50) $1,898 $1,100 $7,733 $550
R 15 R15 Air Quality Improvement Fund Rev 16,400 19,664 17,200 17,178 17,400 E 15 E15 Air Quality Improvement Fund Exp - - 20,000 20,000 25,000 $16,400 $19,664 $(2,800) $(2,822) $(7,600)
R 16 R16 Gas Tax Fund Rev 438,400 456,807 441,000 440,898 441,000 E 16 E16 Gas Tax Fund Exp 484,400 503,726 436,198 436,198 431,042 $(46,000) $(46,919) $4,802 $4,700 $9,958
R 17 R17 Traffic Safety Fund Rev 5,000 6,127 4,000 3,993 4,500 E 17 E17 Traffic Safety Fund Exp 4,000 - 4,000 4,000 4,000 $1,000 $6,127 $- $(7) $500
R 19 R19 Facilities Fund Rev 1,800 5,811 3,300 3,253 2,500 E 19 E19 Facilities Fund Exp - (2,742) - - -
$1,800 $8,553 $3,300 $3,253 $2,500
R 20 R20 Measure “I” Fund Rev 330,400 349,658 342,500 342,500 332,500 E 20 E20 Measure “I” Fund Exp 330,000 335,598 340,000 340,000 330,000 $400 $14,060 $2,500 $2,500 $2,500
R 21 R21 Waste Water Disposal Fund Rev 4,000 52,605 10,000 9,578 10,000 E 21 E21 Waste Water Disposal Fund Exp - 88,570 - - -
$4,000 $(35,965) $10,000 $9,578 $10,000