Agenda packet — Grand Terrace City Council, June 23, 2026 (part 5 of 6)

01247.0001 2074783.1 12/22/2025

CONTRACT SERVICES AGREEMENT
By and Between

CITY OF GRAND TERRACE
and
Kimley-Horn and Associates, Inc.

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AGREEMENT FOR CONTRACT SERVICES

BETWEEN THE CITY OF GRAND TERRACE AND
Kimley-Horn and Associates, Inc.

This AGREEMENT FOR CONTRACT SERVICES (herein “Agreement”) is made and entered into this 23rd day of June(“Effective Date”) by and between the CITY OF GRAND TERRACE, a California municipal corporation (“City”) and Kimley-Horn and Associates, Inc., (“Contractor”). City and Contractor may be referred to, individually or collectively, as “Party” or “Parties.”

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

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

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

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

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

ARTICLE 1. SERVICES OF CONTRACTOR

1.1 Scope of Services.

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

1.2 Contractor’s Proposal.

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

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Agreement shall govern. No other terms and conditions from Contractor’s proposal or bid, other than description of scope of services or work, shall apply to this Agreement, unless specifically agreed to by City in writing.

1.3 Compliance with Law.

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

1.4 California Labor Law.

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

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compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) days after concluding work pursuant to this Agreement, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement. (f) Eight-Hour Work Day. Contractor acknowledges that eight (8) hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810. (g) Penalties for Excess Hours. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Contractor in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay.
(h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake selfinsurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.” Contractor’s Authorized Initials ___________________
Eugene D. Cowan, PE
(i) Contractor’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Contractor shall be responsible for such subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Agreement.

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

1.5 Licenses, Permits, Fees and Assessments.

Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the services required

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by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.6 Familiarity with Work.

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

1.7 Software and Computer Services.

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

1.8 Care of Work.

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

1.9 Further Responsibilities of Parties.

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

1.10 Additional Services.

City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer (as defined below) to the Contractor, incorporating therein any adjustment in (i) the Contract Sum (or a portion of the compensation due to Contractor) for the actual costs of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor. Any increase in compensation of up to ten percent (10%) of the Contract Sum or $25,000, whichever is less; or, in the time to perform of up to one hundred eighty (180) days, may

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be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors / consultants. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.

1.11 Contract Modifications.

Additional terms and conditions of this Agreement, if any, or any modifications or revisions to the standard terms and conditions herein are made a part hereof as set forth in the “Contract Modifications” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern.

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

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, City agrees to pay 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 Twenty Thousand Dollars ($20,000) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8.

2.2 Reimbursable Expenses.

Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City. Coordination of the performance of the work with City is a critical component of the services. If Contractor is required to attend additional meetings to facilitate such coordination, Contractor shall not be entitled to any additional compensation for attending said meetings.

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2.3 Invoices.

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

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

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

2.4 Waiver.

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

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

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

3.2 Term.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding three (3) years from the date hereof (“Term”), except as otherwise provided in the Schedule of Performance (as shown on Exhibit “D” attached hereto). The City Manager may extend the Term up to one (1) additional one-year terms subject to City Council approval.

3.3 Schedule of Performance.

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

3.4 Force Majeure.

The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to,

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acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of the Term of this Agreement pursuant to this Section.

ARTICLE 4. COORDINATION OF WORK

4.1 Representatives and Personnel of Contractor.

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

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

4.2 Status of Contractor.

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

4.3 Contract Officer.

The Contract Officer shall be Konrad Bolowich, or such person as may be designated by the City Manager. For any project awarded by a Task Order under this Agreement, City will designate a project manager who shall oversee Contractor’s performance of the awarded services. It shall be the Contractor’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer.

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

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4.4 Independent Contractor.

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

4.5 Prohibition Against Subcontracting or Assignment.

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

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages.

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

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option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Contractor will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom.

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

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

ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records.

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

6.2 Reports.

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

6.3 Ownership of Documents.

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All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (“documents and materials”) prepared by Contractor, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership, use, reuse, or assignment of the documents and materials hereunder. Contractor may retain copies of such documents and materials for its own use.

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

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

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law.

This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and Contractor

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covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California.

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

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

7.3 Default of Contractor and Opportunity to Cure.

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

7.4 Termination for Default of Contractor.

If termination is due to the failure of Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.3, take over the work and prosecute the same to completion by contract or otherwise, and Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Contractor for the purpose of set-off or partial payment of the amounts owed City therefor.

7.5 Retention of Funds.

Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Contractor’s acts or

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omissions in performing or failing to perform Contractor’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Contractor to insure, indemnify, and protect City as elsewhere provided herein.

7.6 Waiver.

Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

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

7.7 Rights and Remedies are Cumulative.

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

7.8 Legal Action.

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

7.9 Attorneys’ Fees.

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

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such litigation. Such fees and costs shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees.

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

8.2 Conflict of Interest.

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

Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

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

8.3 Covenant Against Discrimination.

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

8.4 Unauthorized Aliens.

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

ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices.

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

9.2 Interpretation.

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

9.3 Counterparts and Electronic Signatures.

This Agreement may be executed in two or more counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. The words “execution,” “signed,” “signature,” and words of like import in this Agreement or in any other certificate, agreement or document related to this Agreement, shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures in accordance with California Code of Regulations Title 2 Section 22003 (including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the California Uniform Electronic Transactions Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.

9.4 Integration; Amendment.

This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties. It is understood that there are no oral agreements between the Parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the Parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Contractor and by the City Council. The Parties agree that this 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 of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties hereunder unless the invalid provision is so material

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that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

9.6 Warranty & Representation of Non-Collusion.

No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Contractor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Contractor is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.

Contractor’s Authorized Initials ___________________
Eugene D. Cowan, PE

9.7 Corporate Authority.

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

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

CITY:

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

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

By:
_____________________________________
Daysi Alcocer
City Clerk
CONTRACTOR:
(INSERT COMPANY NAME)
By:
_____________________________________
Name: Eugene D. Cowan, PE
Title: Vice President
Email:

Address: Kimley-Horn and Associates, Inc.
3801 University Avenue, Suite 300
Riverside, CA 92501
By:
_______________________________________________
Name: To be provided by the consultant
Title:

Email:

Address:

Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONTRACTOR’S

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

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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

COUNTY OF SAN BERNARDINO
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature: _____________________________________

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

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

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

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

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

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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

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

WITNESS my hand and official seal.

Signature: _____________________________________

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

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

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01247.0001 2074783.1 12/22/2025 On-Call Agreement – Vendor Name (Project Name) Council Date A-1 EXHIBIT “A”

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

A. Planning Services: Selected consultants for Planning Services shall have demonstrated expertise in processing applications for various types of projects including, but not limited to, residential, commercial, industrial, institutional, mixed-use, and transit-oriented development projects.

Services may include projects requiring General Plan Amendments, Zone Changes, Specific Plan Amendments, Development Agreements, Objective Design Standards, and other legislative or discretionary actions. Typical Planning Services tasks include, but are not limited to, the following:

I. Initial project and site assessment;
II. Review projects for completeness and compliance with the General Plan, Zoning Ordinance, Specific Plans, Objective Design Standards, and all applicable codes and ordinances;
III. Prepare correspondence and project review letters for City review; IV. Attend Development Advisory Board meetings and other project coordination meetings;
V. Coordinate comments from City departments and reviewing agencies; VI. Meet with applicants and their representatives;
VII. Coordinate project review with environmental review requirements; VIII. Prepare public hearing notices, staff reports, resolutions, ordinances, findings, and conditionsof approval;
IX. Attend and present projects at Planning Commission and City Council meetings; X. Maintain project files and records related to assigned projects; XI. Conduct plan check review of projects, including but not limited to site plans, architectural plans, grading plans, landscape and irrigation plans, lighting plans, and other related documents for consistency with project approvals and applicable regulations;
XII. Provide staff augmentation services, including counter support and assistance with development application processing;
XIII. Prepare and review zoning verifications, development standards analyses, and entitlement determinations; and

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01247.0001 2074783.1 12/22/2025 On-Call Agreement – Vendor Name (Project Name) Council Date A-2 XIV. Provide long-range planning assistance, including General Plan updates, Housing Element implementation programs, zoning code amendments, Specific Plans, and related planning initiatives.

B. Environmental Review Services. Selected consultants for Environmental Review Services shall have demonstrated expertise in preparing environmental review documents as required by CEQA that include, but not limited to, one or more of the following environmental review tasks:

I. Air quality analyses;
II. Greenhouse gas emissions analyses;
III. Noise studies;
IV. Transportation analyses and vehicle miles traveled (VMT) analyses; V. Water quality and stormwater analyses;
VI. Biological resources assessments and studies;
VII. Cultural resources assessments and studies, including AB 52 and SB 18 consultation support;
VIII. Preparation and peer review of technical studies; IX. Preparation of environmental documents, mitigation measures, findings, and mitigation monitoring and reporting programs;
X. Preparation and distribution of required environmental notices and filings; XI. Coordination with responsible agencies, trustee agencies, and other regulatory agencies;
XII. Presentation of environmental analyses and findings at public meetings and hearings; and
XIII. Coordination of environmental review with project entitlement processing.

C. Staff Augmentation with AB 18 and AB 52 Consultation D. Prepare scope of work, budget, and schedule for assigned projects, to include project coordination meetings with City Staff and applicant and all public meetings and hearings.

E. Coordination with applicable agencies, including San Bernardino County Departments, CalTrans, SCAQMD, Department of Fish and Wildlife, and any other regulatory or advisory agencies related to project processing.

II. As part of the Services, Consultant will prepare and deliver the following tangible work products to the City:

A. Work products and timelines based on agreed upon scope of work for assigned projects.

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01247.0001 2074783.1 12/22/2025 On-Call Agreement – Vendor Name (Project Name) Council Date A-3 III. In addition to the requirements of Section 6.2, during performance of the Services, Consultant will keep the City appraised of the status of performance by delivering the following status reports:

A. Work products and timelines based on agreed upon scope of work for assigned projects.

IV. Consultant shall utilize qualified personnel with appropriate experience and expertise to perform the Services described herein. Consultant may substitute personnel as necessary, subject to approval by the City, provided that any replacement personnel possess qualifications substantially similar to those of the individuals originally proposed.

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EXHIBIT “B”

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

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On-Call List for Planning Services
and Environmental Review Services
Statement of Qualifications for
City of Grand Terrace  EVCARIVE015000.2026  3

CONTRACT EXCEPTIONS
Kimley-Horn has reviewed the Sample Agreement for Contract Services and would like to discuss the following modifications with the City.

ARTICLE 1. SERVICES OF CONTRACTOR

1.1 Scope of Services.
[…] As a material inducement to City entering into this Agreement, Contractor represents and warrants: a) it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement b) all services set forth in the Scope of Services will be performed in a competent and satisfactory manner; c) all materials used for services will be both of good quality as well as fit for the purpose intended; and, d) Contractor shall follow the highest standards and practices of reasonably prudent members of the same profession, practicing under similar circumstances and in the same or similar locality in performing the services required hereunder. […]

1.3 Compliance with Law.

All services rendered hereunder shall be provided in accordance with all applicable ordinances, resolutions, statutes, rules and regulations of City and any federal, State or local governmental agency having jurisdiction in effect at the time services are rendered.

City, and its officers, employees and agents, shall not be liable at law or in equity for failure of Contractor to comply with this Section.

1.6 Familiarity with Work.

By executing this Agreement, Contractor represents and warrants Contractor: a) has thoroughly investigated reviewed and considered services to be performed, b) has carefully considered how services should be performed, and c) fully understands the facilities, difficulties and restrictions attending performance of services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate visit the site and is or will be fully acquainted with the visible conditions there existing, prior to commencement of services hereunder. […] ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.2 Indemnification.
(a) General Obligations. Contractor agrees, to the full extent permitted by law, to indemnify, defend and hold harmless City and its elected and appointed officers, employees and agents (each an “Indemnitee” and collectively, “Indemnitees”) against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “Claims or Liabilities”) that may be asserted or claimed by any person, firm or agency to the extent arising out of the negligence, recklessness, or willful misconduct or in connection with the performance of the work, operations or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or City for which Contractor is legally liable (each an “Indemnitor” and collectively, “Indemnitors”), and in connection therewith: 1) Contractor will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and reasonable attorneys’ fees, incurred by Indemnitee(s) to the extent caused by Contractor’s proportionate percentage of fault in connection therewith; and, 2) Contractor will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities to the extent caused by Cotractor’s proportionate percentage of fault, and will save and hold Indemnitee(s) harmless therefrom.

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EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. Consultant shall perform the on-call services at the rates listed in Exhibit "C-1." The rates provided in Exhibit "C-1" may not be escalated during the term of this Agreement unless otherwise approved by the City through a written amendment to this Agreement.

Consultant shall be compensated based upon the time and rates of the personnel performing the tasks and itemizing materials and equipment utilized and the costs thereof, which shall conform to the requirements provided in Exhibit "A."
II. The City shall compensate Consultant for Services performed upon submission of a valid invoice.

Each invoice shall identify the applicable project and task order and shall include sufficient detail to support the charges invoiced. At a minimum, each invoice shall include:

A. Line items for all personnel describing the work performed, the number of hours worked, and the applicable hourly rate;
B. Line items for all materials and equipment properly charged to the Services; C. Line items for all approved reimbursable expenses claimed, with supporting documentation; and
D. Line items for all approved subconsultant labor, supplies, equipment, materials, and travel properly charged to the Services.

III. The total compensation for the Services shall be as follows:

A. Applicant-Funded Projects. For Services associated with private development projects, the maximum amount of compensation shall be established through a project-specific scope of work, budget, and reimbursement agreement between the City and the applicant.

Consultant shall not commence work until the City has issued a written Notice to Proceed.

B. City-Initiated Projects. For Services associated with City-initiated projects, there shall be a maximum total compensation of $20,000 during the term of this Agreement, unless additional compensation is authorized in accordance with this Agreement.

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EXHIBIT “C-1”

CONTRACTOR BILLING RATES

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On-Call List for Planning Services
and Environmental Review Services
Statement of Qualifications for
City of Grand Terrace  EVCARIVE015000.2026  34
F. FEE SCHEDULE
Kimley-Horn and Associates, Inc.
____________________________________
Hourly Labor Rate Schedule
Classification Rate
Analyst I $145 - $175
Analyst II $185 - $220
Professional $215 - $250
Senior Professional I $265 - $345
Senior Professional II $360 - $430
Senior Technical Support $130 - $310
Technical Support $105 - $180
Support Staff $95 - $160
External Reimbursable Expenses will be charged at 10% mark-up, or per the Contract Sub-Consultants will be billed per the Contract
For each Task Order issued under the On-Call, staff will be billed within the appropriate category range shown above, based on their role, responsibilities, and classification at the time services are performed.

The category ranges are structured to provide the City access to a broad range of experienced professionals, allowing work to be assigned to the most appropriate level of expertise to support efficient delivery, consistent quality, and cost-effective outcomes across all assignments.

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EXHIBIT “D”

SCHEDULE OF PERFORMANCE
i. Consultant shall perform all Services timely to ensure the prompt and timely processing of all planning related applications and approval thereof by the planning department, Planning Commission, and/or City Council.
ii. Consultant shall timely deliver the any and all documents related to the Services, as described in Section I of Exhibit “A”, to the City for the processing of, and approval, of any and all applications for development by the planning department, Planning iii. Commission, and/or City Council. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2. iv. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect from and after the Effective Date of this Agreement for a term of three (3) years (“Term”).

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01247.0001 2074783.1 12/22/2025 On-Call Agreement – Vendor Name (Project Name) Council Date E-1

EXHIBIT E

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

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

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

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

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

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

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

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

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

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

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01247.0001 2074783.1 12/22/2025 On-Call Agreement – Vendor Name (Project Name) Council Date E-2 by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

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

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

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

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

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

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

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

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

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01247.0001 2074783.1 12/22/2025 On-Call Agreement – Vendor Name (Project Name) Council Date E-3 deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible.

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

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

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

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

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

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

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

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

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

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

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01247.0001 2074783.1 12/22/2025

CONTRACT SERVICES AGREEMENT
By and Between

CITY OF GRAND TERRACE
and
Willdan Engineering

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AGREEMENT FOR CONTRACT SERVICES

BETWEEN THE CITY OF GRAND TERRACE AND
Willdan Engineering
This AGREEMENT FOR CONTRACT SERVICES (herein “Agreement”) is made and entered into this 23rd day of June, 2026 (“Effective Date”) by and between the CITY OF GRAND TERRACE, a California municipal corporation (“City”) and Willdan Engineering (“Contractor”). City and Contractor may be referred to, individually or collectively, as “Party” or “Parties.”

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

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

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

ARTICLE 1. SERVICES OF CONTRACTOR

1.1 Scope of Services.

1.2 Contractor’s Proposal.

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1.3 Compliance with Law.

1.4 California Labor Law.

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compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) days after concluding work pursuant to this Agreement, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement. (f) Eight-Hour Work Day. Contractor acknowledges that eight (8) hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810. (g) Penalties for Excess Hours. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Contractor in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay.
(h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake selfinsurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.” Contractor’s Authorized Initials ___________________
Salvador Lopez Jr.
(i) Contractor’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Contractor shall be responsible for such subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Agreement.

1.5 Licenses, Permits, Fees and Assessments.

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by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.6 Familiarity with Work.

1.7 Software and Computer Services.

1.8 Care of Work.

1.9 Further Responsibilities of Parties.

1.10 Additional Services.

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1.11 Contract Modifications.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

2.2 Reimbursable Expenses.

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2.3 Invoices.

2.4 Waiver.

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

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

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

3.2 Term.

3.3 Schedule of Performance.

3.4 Force Majeure.

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ARTICLE 4. COORDINATION OF WORK

4.1 Representatives and Personnel of Contractor.

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

4.2 Status of Contractor.

4.3 Contract Officer.

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4.4 Independent Contractor.

4.5 Prohibition Against Subcontracting or Assignment.

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages.

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

ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records.

6.2 Reports.

6.3 Ownership of Documents.

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ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law.

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

7.3 Default of Contractor and Opportunity to Cure.

7.4 Termination for Default of Contractor.

7.5 Retention of Funds.

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7.6 Waiver.

7.7 Rights and Remedies are Cumulative.

7.8 Legal Action.

7.9 Attorneys’ Fees.

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such litigation. Such fees and costs shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees.

8.2 Conflict of Interest.

Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

8.3 Covenant Against Discrimination.

8.4 Unauthorized Aliens.

ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices.

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9.2 Interpretation.

9.3 Counterparts and Electronic Signatures.

9.4 Integration; Amendment.

9.5 Severability.

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that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.

9.6 Warranty & Representation of Non-Collusion.

Contractor’s Authorized Initials ___________________
Salvador Lopez Jr.

9.7 Corporate Authority.

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

CITY:

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

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

By:
_____________________________________
Daysi Alcocer
City Clerk
CONTRACTOR:

Willdan
By:
_____________________________________
Name: Salvador Lopez Jr.

Title: Director of Planning
Email: [email protected]
Address: 650 East Hospitality Lane, Suite 400
San Bernardino, CA 92408
By:
_______________________________________________
Name:

Title:

Email:

Address:

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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

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

WITNESS my hand and official seal.

Signature: _____________________________________

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

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

STATE OF CALIFORNIA

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

WITNESS my hand and official seal.

Signature: _____________________________________

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

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT

INDIVIDUAL

CORPORATE OFFICER
_______________________________

TITLE(S)

PARTNER(S) LIMITED

GENERAL

ATTORNEY-IN-FACT

TRUSTEE(S)

TITLE OR TYPE OF DOCUMENT
___________________________________

NUMBER OF PAGES
___________________________________

DATE OF DOCUMENT
___________________________________

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EXHIBIT “A”

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

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XIV. Provide long-range planning assistance, including General Plan updates, Housing Element implementation programs, zoning code amendments, Specific Plans, and related planning initiatives.

II. As part of the Services, Consultant will prepare and deliver the following tangible work products to the City:

A. Work products and timelines based on agreed upon scope of work for assigned projects.

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III. In addition to the requirements of Section 6.2, during performance of the Services, Consultant will keep the City appraised of the status of performance by delivering the following status reports:

A. Work products and timelines based on agreed upon scope of work for assigned projects.

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EXHIBIT “B”

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

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Qualifications for On-Call List for Planning Services
and Environmental Review Services
City of Grand Terrace
10 A.4 Exceptions Proposed
Per page 8 of the RFQ to include proposed exceptions, Willdan has the below exceptions. Red text is for strikeout, and blue text is for additional text.

Willdan’s Exception Suggestions for Terms and Conditions of City’s Standard Agreement

1.1 Scope of Services. “In compliance with all terms and conditions of this Agreement, Contractor shall provide those services specified in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to City entering . . . d) Contractor shall follow the highest standards and practices consistent with the level of care and skill ordinarily exercised under similar conditions by a member of Contractor’s profession currently practicing in California in performing the services required hereunder . . . perform such work.”

4.4 Independent Contractor. “Neither City, nor any of its officers, employees or agents, shall have any control over the manner or means by . . . City shall not be liable for compensation or indemnification to Contractor, its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder, except to the extent due to City’s sole or active negligence.”

5.2 Indemnification. “(a) General Obligations. Contractor agrees, to the full extent permitted by law, to indemnify, defend and hold harmless . . . therewith: 1) Contractor will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Contractor will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom. Notwithstanding the foregoing, Contractor’s obligation to indemnify shall not extend to Claims or Liabilities that arise out of the active or sole negligence or misconduct of the Indemnitees.”

6.3 Ownership of Documents. “All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials . . . exercise by City of its full rights of ownership, use, reuse, or assignment of the documents and materials hereunder. City’s re-use of any documents and materials for any purpose other than as set forth in this Agreement shall be at City’s sole risk.

Contractor may retain copies of such documents . . . hereby deemed “works made for hire” for City.” “(d) As concerning, regarding or related to, in any way, this Agreement and the work performed thereunder: i) Contractor shall immediately notify City . . . or subpoena from any party; ii) City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar . . . control, direct, or rewrite said response.”

7.2 Suspension, or Termination, Prior to Expiration of Term. “This Section shall govern any termination of this Agreement except as specifically provided in Section 7.4 for termination for cause. City reserves . . . Upon submittal of an invoice consistent with Section 2.2, Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City . . . to cure pursuant to Section 7.3.”

7.3 Default of Contractor and Opportunity to Cure. “In the event that Contractor is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, City may give notice . . . warrant, as determined by City, but shall in no event be less than seven (7) days. During the period of time that Contractor is in default, City shall hold . . . any rights arising out of any provision of this Agreement.”

7.5 Retention of Funds. “Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to . . . protect City as elsewhere provided herein. Any amount that is later determined to no longer be in dispute or cover claims which City is not liable for, or for which City is liable due to its sole negligence or misconduct, shall be released to Contractor.”

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EXHIBIT “C”

Each invoice shall identify the applicable project and task order and shall include sufficient detail to support the charges invoiced. At a minimum, each invoice shall include:

III. The total compensation for the Services shall be as follows:

Consultant shall not commence work until the City has issued a written Notice to Proceed.

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EXHIBIT “C-1”

CONTRACTOR BILLING RATES

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WILLDAN ENGINEERING
Schedule of Hourly Rates
Effective July 1, 2026 to June 30,2027
** For Non-Prevailing Wage Project *** For Prevailing Wage Project Mileage/Field Vehicle usage will be charged at the rate in accordance with the current FTR mileage reimbursement rate, subject to negotiation.

Additional billing classifications may be added to the above listing during the year as new positions are created. Consultation in connection with litigation and court appearances will be quoted separately.

The above schedule is for straight time. Overtime will be charged at 1.5 times, and Sundays and holidays, 2.0 times the standard rates. Blueprinting, reproduction, messenger services, and printing will be invoiced at cost plus fifteen percent (15%). A sub consultant management fee of fifteen percent (15%) will be added to the direct cost of all sub consultant services to provide for the cost of administration, consultation, and coordination. Valid July 1, 2026 thru June 30, 2027, thereafter, the rates may be raised once per year to the value between the 12-month % change of the Consumer Price Index for the Los Angeles/Orange County/Sacramento/San Francisco/San Jose area and five percent. For prevailing wage classifications, the increase will be per the prevailing wage increase set by the California Department of Industrial Relations.

Updated 04.15.2026

DESIGN ENGINEERING
Technical Aide $86
Technical Aide II $110
Technical Aide III $128
CAD Operator I $136
CAD Operator II $158
CAD Operator III $176
GIS Analyst I $169
GIS Analyst II $185
GIS Analyst III $193
Environmental Analyst I $154
Environmental Analyst II $171
Environmental Analyst III $183
Environmental Specialist $197
Designer I $180
Designer II $187
Senior Designer I $196
Senior Designer II $205
Design Manager $212
Senior Design Manager $219
Plans Reviewer I $160
Plans Reviewer II $178
Senior Plans Reviewer $195
Project Manager I $206
Project Manager II $229
Project Manager III $248
Project Manager IV $264
Principal Project Manager $277
Assistant Engineer I $151
Assistant Engineer II $165
Assistant Engineer III $175
Assistant Engineer IV $186
Associate Engineer I $195
Associate Engineer II $204
Associate Engineer III $209
Senior Engineer I $212
Senior Engineer II $217
Senior Engineer III $220
Senior Engineer IV $224
Supervising Engineer $238
Traffic Engineer I $238
Traffic Engineer II $266
City Engineer I $254
City Engineer II $266
Deputy Director $284
Director $300
Principal Engineer $342

BUILDING AND SAFETY
Code Enforcement Technician $113
Code Enforcement Officer $129
Senior Code Enforcement Officer $152
Supervisor Code Enforcement $184
Fire Plans Examiner $184
Senior Fire Plans Examiner $201
Fire Inspector $169
Senior Fire Inspector $184
Fire Marshal $217
Plans Examiner Aide $121
Plans Examiner $184
Senior Plans Examiner $201
Assistant Construction Permit
Specialist
$129
Construction Permit Specialist $135
Senior Construction Permit Specialist $160
Supervising Construction Permit
Specialist
$169
Assistant Building Inspector $152
Building Inspector $169
Senior Building Inspector $184
Supervising Building Inspector $201
Inspector of Record $215
Assistant Building Official $191
Deputy Building Official $218
Building Official $228
Plan Check Engineer $211
Supervising Plan Check Engineer $213
Principal Project Manager $277
Deputy Director $284
Director $300

PLANNING
CDBG Technician $100
CDBG Specialist $118
CDBG Analyst $136
Sr. CDBG Analyst $145
CDBG Coordinator $161
CDBG Manager $194
Housing Specialist $143
Housing Program Coordinator $161
Planning Technician $139
Assistant Planner $173
Associate Planner $187
Senior Planner $213
Principal Planner $222
Planning Manager $235
Deputy Director $284
Director $300

CONSTRUCTION SERVICES
Labor Compliance Specialist $155
Senior Labor Compliance
Specialist
$170
Assistant Labor Compliance
Manager
$186
Labor Compliance Manager $206
Utility Coordinator $178
Office Engineer I $156
Office Engineer II $170
Assistant Construction Manager $178
Construction Manager $197
Senior Construction Manager $214
Resident Engineer I $222
Resident Engineer II $230
Project Manager IV $264
Deputy Director $284
Director $300

INSPECTION SERVICES
Public Works Observer ** $140
Public Works Observer *** $179
Senior Public Works Observer** $152
Senior Public Works Observer *** $179

MAPPING AND EXPERT SERVICES
Survey Analyst I $156
Survey Analyst II $180
Senior Survey Analyst $193
Supervisor - Survey & Mapping $216
Principal Project Manager $277

LANDSCAPE ARCHITECTURE
Assistant Landscape Architect $162
Associate Landscape Architect $187
Senior Landscape Architect $205
Principal Landscape Architect $218
Principal Project Manager $277

ADMINISTRATIVE
Administrative Assistant I $108
Administrative Assistant II $130
Administrative Assistant III $152
Project Accountant I $122
Project Accountant II $143
Project Controller I $152
Project Controller II $172

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EXHIBIT “D”

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EXHIBIT E

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

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

Page 621 of 847 ends

by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

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

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

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deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible.

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

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

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

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

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AGENDA REPORT
MEETING DATE: June 23, 2026
TITLE: Authorization to Execute a Business Associate Agreement and Broker of Record with Keenan & Associates
PRESENTED BY: Michelle Fuentes, Sr. Management Analyst
RECOMMENDATION:

AUTHORIZE THE CITY MANAGER TO EXECUTE THE BUSINESS
ASSOCIATE AGREEMENT (BAA) and BROKER OF RECORD (BOR)

BETWEEN THE CITY OF GRAND TERRACE AND KEENAN &
ASSOCIATES.
2030 VISION STATEMENT:

This staff report supports Goal #1: Ensure our fiscal viability.

BACKGROUND:

The City of Grand Terrace has maintained a long-standing relationship with Keenan & Associates as its employee benefits broker and consultant. The City previously executed a Broker of Record (BOR) designation with Keenan on November 2, 2008, and recently updated the designation to reflect current services, contacts, and benefit administration needs.

The Broker of Record designation authorizes Keenan to act as the City's representative for employee benefit coverages and related services, including dental and vision carrier negotiations, claims assistance, eligibility support, and compliance assistance.

As part of a recent compliance review, Keenan requested that the City execute a Business Associate Agreement (BAA) related to employee benefit plan administration and compliance with federal privacy regulations.

DISCUSSION:

The proposed Business Associate Agreement is separate from the Broker of Record designation and serves a different purpose. While the BOR establishes the brokerage relationship and scope of services provided by Keenan, the BAA is a HIPAA compliance document that outlines each party's responsibilities regarding the use, disclosure, safeguarding, and reporting of Protected Health Information (PHI) that may be accessed in connection with employee benefit plan administration.

The BAA includes provisions related to privacy and security requirements, breach notification procedures, and compliance with applicable federal regulations, including the Health Insurance

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Portability and Accountability Act (HIPAA). Execution of the agreement will help ensure that the City and Keenan maintain compliance with current federal privacy requirements associated with employee benefits administration.

The proposed agreement does not modify the services currently provided by Keenan, nor does it create any additional costs, fees, or financial obligations for the City. Rather, it formalizes the responsibilities of each party regarding the protection of employee health information.

The proposed agreement has been reviewed by the City Attorney and is being presented to the City Council for authorization.

ENVIRONMENTAL IMPACT:

There is no environmental impact associated with this item.

FISCAL IMPACT:

There is no cost to the City associated with the execution of the Business Associate Agreement. The agreement does not create any additional fees, expenses, or financial obligations for the City and serves solely as a compliance document related to the administration of employee benefit plans.

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Business Associate Agreement 260306

BUSINESS ASSOCIATE AGREEMENT
This Business Associate Agreement (“Agreement”) is entered into on July 1, 2026 (the “Effective Date”), by and between City of Grand Terrace (“Covered Entity”) and Keenan & Associates and its affiliates and subsidiaries (collectively, “Business Associate”).

RECITALS
WHEREAS, Business Associate provides, or intends to provide, certain services to Covered Entity described in an underlying agreement (“Underlying Agreement”); WHEREAS, to the extent that Covered Entity and Business Associate qualify as a “covered entity” and “business associate” (as such terms are defined in 45 C.F.R. § 160.103) with regard to any Protected Health Information (“PHI”) processed as part of the Underlying Agreement, Covered Entity and Business Associate mutually desire to outline their individual responsibilities with respect to the use, disclosure and security of PHI under the Health Insurance Portability and Accountability Act of 1996, as codified at 42 U.S.C. § 1320d (“HIPAA”), the Health Information Technology for Economic and Clinical Health Act of 2009, as codified at 42 U.S.C. § 17901 et seq. (“HITECH Act”), and any current and future regulations promulgated under HIPAA or the HITECH Act, including without limitation, the Confidentiality of Substance Use Disorder Patient Records, 42 C.F.R.

Part 2 (“Part 2”) (HIPAA, HITECH Act, and any current and future regulations promulgated under either are collectively referred to as the “Regulations”); and WHEREAS, in the event and only to the extent that the Regulations apply to any data received by Business Associate from or on behalf of Covered Entity, Covered Entity and Business Associate understand and agree that the Regulations require Covered Entity and Business Associate to enter into this Business Associate Agreement, which shall govern the use, disclosure and security of PHI.

NOW, THEREFORE, the parties hereto agree as follows:

1. Definitions. When used in this Agreement and capitalized, the following terms have the following meanings:
(a) “Breach” shall have the same meaning as the term “breach” in 45 C.F.R. § 164.402.
(b) “Electronic Protected Health Information” or “ePHI” shall mean Protected Health Information transmitted by electronic media or maintained in electronic media. (c) “Individual” shall have the same meaning as the term “individual” in 45 C.F.R. § 160.103 and shall include a person who qualifies as a personal representative in accordance with 45 C.F.R. § 164.502(g).
(d) “Privacy Rule” shall mean the Standards for Privacy of Individual Identifiable Health Information as set forth at 45 C.F.R. Parts 160 and 164 Subparts A and E. (e) “Protected Health Information” or “PHI” shall have the same meaning as the term “protected health information” in 45 C.F.R. § 160.103, limited to the information created or received by Business Associate from or on behalf of Covered Entity.

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(f) “Required by Law” shall have the same meaning as the term “required by law” in 45 C.F.R. § 164.103.
(g) “Secretary” shall mean the Secretary of the Department of Health and Human Services or their designee.
(h) “Security Incident” shall mean a successful unauthorized access, use, disclosure, modification or destruction of Unsecured PHI; (i) “Security Rule” shall mean the Standards for Security of ePHI, as set forth at 45 C.F.R. Parts 160 and 164 Subparts A and C.
(j) “Unsecured PHI” shall have the same meaning as the term “unsecured protected health information” in 45 C.F.R. § 164.402.

Capitalized terms used but not defined in this Agreement shall have the same meaning as those terms are defined in the Regulations.

2. Obligations and Activities of Business Associate Regarding PHI. (a) Business Associate shall only use or disclose PHI as permitted or required by this Agreement.
(b) Business Associate shall use appropriate safeguards to prevent use or disclosure of the PHI other than as provided for by this Agreement. (c) Business Associate agrees to take reasonable steps, including providing adequate training to its employees, to ensure compliance with this Agreement and the Regulations.
(d) Business Associate shall ensure that any agents and sub-contractors that create, receive, maintain or transmit PHI on behalf of Business Associate agree to comply with substantially the same restrictions, conditions and requirements that apply to Business Associate with respect to such information. Business Associate shall enter into written agreements with any such agents and subcontractors, and the terms of such agreements shall incorporate the applicable requirements of, and otherwise comply with, the Regulations. (e) Upon request of Covered Entity and to the extent that Business Associate maintains PHI in a Designated Record Set that is not also in Covered Entity’s possession, Business Associate shall provide Covered Entity with access to the PHI in the Designated Record Set in a reasonable time and manner as designated by Covered Entity, in order for Covered Entity to comply with the requirements under 45 C.F.R. § 164.524. (f) To the extent that Business Associate maintains PHI in a Designated Record Set, Business Associate shall make any amendment to PHI in a Designated Record Set that Covered Entity directs or agrees to pursuant to 45 C.F.R. § 164.526 in a reasonable time and manner as designated by Covered Entity.
(g) Upon request of Covered Entity, Business Associate shall provide Covered Entity with documentation of any disclosures by Business Associate that would be required for

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an accounting of disclosures to an Individual under 45 C.F.R. § 164.528 in a reasonable time and manner as designated by Covered Entity.
(h) Business Associate shall give notice to Covered Entity of any request under 45 C.F.R. §§ 164.524, 164.526 or 164.528 that it receives directly from an Individual in order for Covered Entity to comply with its requirements under the Regulations. (i) To the extent Business Associate performs any of Covered Entity’s obligations under the Privacy Rule, Business Associate shall comply with the requirements of the Privacy Rule that apply to Covered Entity in the performance of such obligations. (j) Business Associate shall make its internal practices, books and records relating to the use and disclosure of PHI available to the Secretary, in a reasonable time and manner as designated by the Secretary, for purposes of the Secretary determining Covered Entity’s compliance with the Regulations, subject to any attorney-client or other applicable legal privileges.

3. Permitted Uses and Disclosures of PHI by Business Associate. (a) Business Associate may use or disclose PHI to perform functions, activities or services for, or on behalf of, Covered Entity, including as necessary to perform the services set forth in the Underlying Agreement.
(b) Business Associate may use or disclose PHI as Required by Law. (c) Business Associate must not use or disclose PHI in a manner that is prohibited under the Privacy Rule, 45 C.F.R. § 164.502(a)(5), or Part 2, or would otherwise violate the Privacy Rule or Part 2 if done by Covered Entity, except for the specific uses and disclosures permitted in this Agreement.
(d) Business Associate may use PHI for the proper management and administration of Business Associate and to carry out the legal responsibilities of Business Associate. (e) Business Associate may disclose PHI for the proper management and administration of Business Associate and to carry out the legal responsibilities of Business Associate if:
(i) Such disclosure is Required by Law, or
(ii) Business Associate obtains reasonable assurances from the person to whom the information is disclosed that such information will remain confidential and used or further disclosed only as Required by Law or for the purposes for which it was disclosed to the person, and the person agrees to notify Business Associate of any instances of which it is aware that the confidentiality of the information has been Breached.
(f) Business Associate shall limit its uses and disclosures of, and requests for, PHI, to the minimum amount of PHI necessary to accomplish the intended purpose of such use, disclosure or request subject to the exceptions set forth in the Privacy Rule.

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(g) Business Associate may de-identify PHI in accordance with 45 C.F.R. § 164.514(a)-(c) (“De-Identified Information”) and may use and disclose such De-Identified Information for lawful purposes provided that the De-Identified Information cannot be reasonably linked to Covered Entity or any Individual.
(h) Business Associate may use PHI to provide Data Aggregation services related to the health care operations of Covered Entity as permitted by 45 C.F.R. § 164.504(e)(2)(i)(B). (i) Business Associate shall comply with any requests for restrictions on certain uses and disclosures of PHI to which Covered Entity has agreed in accordance with 45 C.F.R. § 164.522 and of which Business Associate has been notified by Covered Entity.

4. Obligations of Covered Entity Regarding PHI.
(a) Covered Entity agrees that the permitted and required uses and disclosures of PHI by Business Associate pursuant to this Agreement are and, at the time of execution and throughout the term of this Agreement, will be consistent with the form of the notice of privacy practices that Covered Entity provides to Individuals in accordance with 45 C.F.R. § 164.520.

Covered Entity shall provide notice to Business Associate of any changes to its notice of privacy practices if such changes affect Business Associate’s permitted or required uses and disclosures of PHI.
(b) Covered Entity shall provide notice to Business Associate of any changes in, or revocation of, an authorization by an Individual to use or disclose PHI, if such changes affect Business Associate’s permitted or required uses and disclosures of PHI. (c) Covered Entity shall provide notice to Business Associate of any restrictions to the use or disclosure of PHI that Covered Entity has agreed to in accordance with 45 C.F.R. § 164.522, if such restrictions affect Business Associate’s permitted or required uses and disclosures of PHI.
(d) Covered Entity shall obtain any consent or authorization from Individuals that may be required under the Regulations or otherwise Required by Law. (e) Covered Entity shall only provide Business Associate with the minimum amount of PHI necessary in order for Business Associate to perform the services set forth in the Underlying Agreement, including, where possible, only providing Business Associate with PHI that has been de-identified in accordance with 45 C.F.R. § 164.514(a)-(c). (f) Covered Entity shall require its employees, agents and representatives to be appropriately informed of its legal obligations pursuant to this Agreement and the Regulations and will reasonably cooperate with Business Associate in the performance of the mutual obligations under this Agreement.

5. Security of Protected Health Information.
(a) Business Associate has implemented policies and procedures to ensure that its receipt, maintenance or transmission of PHI on behalf of Covered Entity complies with the applicable administrative, physical and technical safeguards of the Security Rule.

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(b) Business Associate shall ensure that its agents or subcontractors agree to implement the applicable administrative, physical and technical safeguards of the Security Rule. (c) Business Associate shall establish procedures to mitigate, to the extent possible, any harmful effect that is known to Business Associate of a use or disclosure of PHI by Business Associate in violation of this Agreement.
(d) Business Associate agrees to notify Covered Entity as soon as practicable, but not later than sixty (60) days after Discovery (as defined by 45 C.F.R. § 164.410) of any Security Incident or Breach of Unsecured PHI and, to the extent available to Business Associate, provide the following information relating to a Breach of Unsecured PHI to Covered Entity:
(1) The date of the Breach;
(2) The date of the discovery of the Breach;
(3) A description of the type of Unsecured PHI that was involved; (4) The identity of each Individual whose Unsecured PHI has been, or is reasonably believed to have been, accessed, acquired or disclosed; and (5) Any other information reasonably necessary to permit Covered Entity to comply with the requirements of 45 C.F.R. Part 164 Subpart D. (e) Covered Entity acknowledges and agrees that Covered Entity is independently responsible for the security of all PHI in its possession, including all PHI that it receives from any third party (including from Business Associate).

6. Term and Termination.
(a) Term. This Agreement shall be effective as of the Effective Date and shall remain in effect until this Agreement is terminated and all PHI is returned, destroyed or is otherwise protected as set forth in Section 6(d).
(b) Termination for Cause by Covered Entity. Upon Covered Entity’s knowledge of a material breach by Business Associate, Covered Entity shall provide an opportunity for Business Associate to cure the breach. If Business Associate does not cure the breach within thirty (30) days from the date that Covered Entity provides notice of such breach to Business Associate, Covered Entity shall have the right to immediately terminate this Agreement and the Underlying Agreement.
(c) Termination by Business Associate. This Agreement may be terminated by Business Associate upon thirty (30) days prior written notice to Covered Entity if Business Associate, acting in good faith, believes that the requirements of any law, legislation, consent decree, judicial action, governmental regulation or agency opinion (enacted, issued or otherwise effective after the date of this Agreement and applicable to PHI or to this Agreement) cannot be met by Business Associate in a commercially reasonable manner and without significant additional expense.

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(d) Effect of Termination. Upon termination of this Agreement for any reason, at the written request of Covered Entity, Business Associate shall:
(1) Return or destroy all PHI received from Covered Entity, or created or received by Business Associate on behalf of Covered Entity, without unreasonable delay, except as set forth below;
(2) Retain a copy of any PHI only as necessary for Business Associate to continue its proper management and administration of its business or to carry out its legal responsibilities;
(3) Continue to use appropriate safeguards and comply with the Security Rule with respect to the PHI for as long as Business Associate retains the PHI, and shall not use or disclose the PHI other than the purposes for which it was retained; and (4) Shall return or destroy all PHI retained by Business Associate when it is no longer needed by Business Associate for its proper management and administration of its business or to carry out its legal responsibilities. (e) Survival. The obligations of Business Associate under this Section shall survive the termination of the Agreement until all PHI is returned or destroyed.

7. Amendment.

The parties may agree to amend this Agreement from time to time as is necessary for compliance with the requirements of the Regulations, other applicable laws, and any other respect that they deem appropriate. This Agreement shall only be amended by written instrument executed by the parties.

8. Indemnification.

Each party agrees to indemnify, defend and hold harmless the other party and its directors, officers, employees and agents, from any and all third-party losses, damages, claims, fines, penalties, costs and expenses, arising from, in connection with, or based on a breach of this Agreement or a violation of the Regulations by the indemnifying party; provided, however, that any indemnification obligations shall be reduced to the extent such losses, damages, claims, costs and expenses arise from or are caused by the acts or omissions of the other party or its employees, agents or subcontractors. Each party shall promptly provide written notice to the other party of any claimed indemnification obligations; provided, however, that the failure to give prompt notice shall only absolve or release the indemnifying party from its indemnification obligations to the extent actual prejudice results from the failed or delayed notice. The indemnification obligations provided for in this Section will commence on the Effective Date of this Agreement and will survive its termination.

9. Limitation of Liability.

Notwithstanding anything to the contrary in this Agreement, the parties agree that all liabilities between them under this Agreement will be subject to the limitations and exclusions of liability in the Underlying Agreement.

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10. Severability.

The parties intend this Agreement to be enforced as written. Should any provision of this Agreement be held unenforceable or invalid under the laws of any jurisdiction, then the parties agree that the remaining provisions of the Agreement shall be severed therefrom and unaffected thereby, and that this Agreement, without the unenforceable or invalid provisions, shall remain in full force and effect.

11. Notices.
(a) The following are the primary contacts for purposes of any co-operation, communications or notices with respect to this Agreement:
(1) Covered Entity contact: See signature block below.
(2) Gallagher contact for Security Incidents or Breaches of Unsecured PHI: [email protected].

Gallagher contact for all other communications or notices relating to this Agreement: [email protected].
(b) Each party shall promptly notify the other if any of the above contact information changes.

12. Regulatory Compliance.

The parties shall comply with their respective obligations under the Regulations. A reference in this Agreement to a section in the Regulations means the referenced section or its successor, and for which compliance is required to the extent that the Regulations apply to the party.

13. Headings and Captions.

The headings and captions of the various subdivisions of the Agreement are for convenience or reference only and will in no way modify or affect the meaning or construction of any of the terms or provisions hereof.

14. Entire Agreement.

This Agreement sets forth the entire understanding of the parties with respect to the subject matter herein and supersedes all prior agreements, arrangements and communications, whether oral or written, pertaining to the subject matter hereof. In the event of any conflict between the terms and conditions of this Agreement and the Underlying Agreement, the terms and conditions of this Agreement shall prevail.

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15. Binding Effect.

The provisions of this Agreement shall be binding upon and shall inure to the benefit of both parties and their respective successors and assigns.

16. No Waiver.

No change, waiver or discharge of any liability or obligation hereunder on any one or more occasions by either party shall be deemed a waiver of performance of any continuing or other obligation, or shall prohibit enforcement of any obligation, on any other occasion.

17. Governing Law.

This Agreement will be governed by and construed in accordance with the laws of the State of Illinois.

IN WITNESS WHEREOF, the parties have executed this Business Associate Agreement as of the Effective Date.

BUSINESS ASSOCIATE:

Keenan & Associates
By:

Name: Ju Anderson
Title: Senior Vice President, Employee Benefits
Practice Leader
2355 Crenshaw Blvd., Ste. 200
Torrance, CA 90501
COVERED ENTITY:

City of Grand Terrace
By:

Name: Konrad Bolowich
Title: City Manager
Contact for Notice:

Name: Michelle DeGrande-Fuentes
Address: 22795 Barton Rd
Grand Terrace, CA 92313
E-mail: [email protected]
Telephone: (909) 954-5185

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Keenan & Associates – License #0451271
Broker of Record Designation (Rev. 03/06/26)

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Broker of Record Designation
As of City of Grand Terrace, the organization listed below (“Client”) appoints Keenan & Associates (“Keenan”) as the Broker of Record in connection with the following coverages: Dental, Vision, Life, AD&D, Long Term Disability, Short Term Disability, Section 125, Voluntary Insurance and EAP Services and such additional coverages or insurance as Client may from time-to-time request from Keenan (the “Coverages”). This appointment rescinds any and all previous appointments Client may have made with respect to the Coverages, and shall remain in full force and effect until cancelled in writing with sixty (60) days advance notice. The parties hereby agree to the following additional terms:

With respect to the Coverages, Keenan shall have the exclusive authority and right to negotiate with insurance carriers and other coverage providers on Client’s behalf. Keenan shall provide those services as listed on Exhibit A attached to and made a part of this document. Client shall provide Keenan with timely and accurate information necessary to obtain the Coverages and authorizes Keenan to provide such information to prospective insurers and other coverage providers. Except for Keenan’s responsibilities with respect to funds obtained from or on behalf of Client, Keenan shall not be a fiduciary of Client. As compensation for its services, Keenan shall receive commissions from insurance carriers and/or other vendors for the placement of insurance coverage. Client shall have no responsibility for the payment of any such commission to Keenan. Additional information concerning Keenan’s compensation Disclosure Policy is available online at www.Keenan.com or from your Keenan account representative.

Disputes arising out of or relating to this designation, other agreements between the parties, or any other relationship involving Client and Keenan (whether occurring prior to, as part of, or after the signing of this Agreement) shall first be resolved by good faith negotiations between representatives of the parties with decision-making authority. If either party determines that the dispute cannot be resolved through informal negotiation, then the dispute shall be submitted to non-binding mediation. The site of the mediation and the selection of a mediator shall be determined by mutual agreement of the parties. If the dispute is not resolved through mediation within sixty (60) days following the first notification of a request to mediate, then either party shall have the right to require the matter to be resolved by final and binding arbitration by JAMS dispute resolution service pursuant to its Streamlined Arbitration Rules and Procedures, or such other arbitration procedures as may be agreed to in writing by the parties. Negotiation, mediation, and arbitration shall be the exclusive means of dispute resolution between Client and Keenan and their respective members, agents, employees and officers. The arbitration shall be conducted in the County of Los Angeles, California.

City of Grand Terrace Keenan & Associates
Signature: Signature:

By: Konrad Bolowich By: Ju Anderson
Title: City Manager Title: Senior Vice President
Employee Practice Leader
Address: 22795 Barton Road
Grand Terrace, CA 92313
Address: 2355 Crenshaw Blvd., Ste. 200
Torrance, CA 90501
Telephone: (909) 954-5175 Telephone: 310 212-0363
Attention: Michelle DeGrande-Fuentes Attention: Ju Anderson E-mail: mfuentes@grandterraceca.govE-mail: [email protected]

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Keenan & Associates – License #0451271
Broker of Record Designation (Rev. 03/06/26)

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EXHIBIT A

KEENAN SERVICES
Keenan shall provide the following Services:

1. Plan Review – Keenan shall review applicable benefit plan(s) and provide information and recommendations regarding insured and/or self-insured options, as requested by Client.

2. Insurance Needs Assessment – Keenan shall work with Client to determine Client’s insurance needs.

3. Insurance Marketing Plan – Review, evaluate and negotiate insurance renewals on Client’s behalf.

Keenan shall prepare and present to Client its plan for marketing Client to various carriers and/or Coverage providers. In furtherance of its plan, Keenan shall contact those markets that it has determined most likely to meet Client’s needs, as made known to Keenan, but shall not necessarily contact every available market for the particular Coverage being sought. In so far as practical, Keenan shall honor Client’s timely and reasonable requests to contact specific markets, but Keenan shall not be obligated to present Client to any carrier or Coverage provider which Keenan has determined would not be willing to quote Client’s business or would not give a competitive quote.

4. Insurance Marketing Results – Keenan shall present to the client, in summary format, information concerning all markets and carriers approached. The summary shall include, as applicable: name of carrier and Coverage providers approached, limits, premium, and deductible. The summary shall also include the names of any carriers or Coverage providers who declined to provide a quote.

5. Review of Insurance Options – Keenan shall present, along with the Marketing Results, a comparison summary highlighting the significant terms and/or differences among the various Coverages quoted.

This summary is provided for Client’s convenience only. It is Client’s responsibility to ask questions and to request any additional information that it deems necessary for it to make an informed decision regarding its insurance or self-insurance program.

6. Obtain Coverage – Once the Client has made its decision, Keenan shall take all steps necessary to communicate Client’s decision to the carrier selected and to have the carrier or other Coverage provider bind Coverage on behalf of the Client.

7. Implementation – Keenan shall assist Client in the preparation and distribution of materials relating to the implementation of its coverage, for which client shall give final approval.

8. Ongoing Service -- Keenan will provide the following Client support services:
– Continued analysis of benefit plan design and performance noting available alternatives as appropriate;
– Direction and support with claims resolution and other related issues; – Review of claims experience and trends;
– Support with billing/eligibility concerns;
– Acting as a liaison between Client and carriers and vendors and serving as a proactive Client advocate;
– Responding to day-to-day benefit questions from Client; – Assisting Client with governmental reporting and filings (e.g., 5500’s and Summary Annual Reports), as applicable;
– Providing information concerning current developments and trends in employee benefits and new legislation that may affect Client’s plans;
– Assisting in drafting, review and/or amendment of benefit plan and related documents. Any document drafted or reviewed by Keenan and approved by Client under this Agreement shall

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Keenan & Associates – License #0451271
Broker of Record Designation (Rev. 03/06/26)

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apply solely to the plan year for which the Service was provided. They are not intended for use beyond the plan year for which they were created, reviewed or revised. Keenan shall not be held liable for any direct, punitive, special, consequential or incidental damages, loss of profit or revenue, loss of business, loss or inaccuracy of data or scope of insurance resulting from the continued use of such plan documents or SPD beyond the dates for which they were intended;
– Notwithstanding the foregoing, benefit guides shall not be part of the services contemplated herein, unless Keenan has explicitly agreed in writing to include them pursuant to the current agreement;
– Assisting in the coordination and preparation of open enrollment, orientation, health fairs, and/or question and answer meetings for Client’s employees. and – Attendance at 2 meetings of the Client’s Insurance Committee.

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AGENDA REPORT
MEETING DATE: June 23, 2026
TITLE: First Reading & Introduction of an Ordinance approving Zone Code Amendment (ZCA) 26-03, Zone Change (ZC) 26-02, and Environmental Review (E) 26-03 and a Resolution approving General Plan Amendment (GPA) 26-02
PRESENTED BY: Gabriel Arguelles, Associate Planner, Scott Hutter, Planning & Development Services Director, Daniel Wery Principal Community Planner, Hannah Krietman AICP Planner
RECOMMENDATION: INTRODUCE FOR FIRST READING BY TITLE ONLY WITH FURTHER

READING WAIVED THE ORDINANCE APPROVING ZONING CODE
AMENDMENT (ZCA) 26-03, ZONE CHANGE (ZC) 26-02, AND
ENVIRONMENTAL REVIEW (E) 26-04 TO ESTABLISH THE R3-40 HIGH

DENSITY MULTIPLE FAMILY RESIDENTIAL DISTRICT AND REZONE APPROXIMATELY 97.1 ACRES CONSISTENT WITH HOUSING ELEMENT PROGRAM 1; ADOPT THE RESOLUTION APPROVING GENERAL PLAN
AMENDMENT (GPA) 26-02 TO REDESIGNATE APPROXIMATELY 97.1 ACRES TO HIGH DENSITY RESIDENTIAL R3-40 TO IMPLEMENT
HOUSING ELEMENT PROGRAM 1; FIND THAT GENERAL PLAN
AMENDMENT (GPA) 26-02, ZONING CODE AMENDMENT (ZCA) 26-03, ZONE CHANGE (ZC) 26-02, AND ENVIRONMENTAL REVIEW (E) 26-04

ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY

ACT (CEQA) PURSUANT TO PUBLIC RESOURCES CODE SECTION
21080.085; AND DIRECT STAFF TO RETURN WITH THE ORDINANCE

FOR SECOND READING AND ADOPTION
2030 VISION STATEMENT:

This This staff report supports the City Council's 2030 Vision by implementing the City's adopted 2021–2029 Housing Element and ensuring consistency between the Housing Element, General Plan, Zoning Map, and Municipal Code. The proposed amendments establish a framework for future housing opportunities while helping the City maintain compliance with State housing requirements.

BACKGROUND:

The Housing Element is one of eight mandatory elements of the General Plan and, under California State law, must be updated every eight years. The City of Grand Terrace is currently within the 6th Cycle Housing Element planning period (2021–2029). The City Council adopted the 2021–2029 Housing Element on March 25, 2025, through General Plan Amendment 25-01.

The City's Regional Housing Needs Allocation (RHNA) for the 6th Cycle is 630 housing units across all income levels, as determined by the Southern California Association of Governments (SCAG). To maintain compliance with State Housing Element Law, the City must demonstrate that it has

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adequate sites, at appropriate densities, to accommodate this housing need.

Program 1 of the adopted Housing Element, Adequate Sites to Accommodate Regional Housing Needs, identified a shortfall of adequate sites and requires the City to complete a rezoning program to accommodate the remaining RHNA obligation. Specifically, Program 1 requires the City to rezone approximately 97 acres throughout the City to allow residential development at densities ranging from 20 to 40 dwelling units per acre through the establishment of a new R3-40 High Density Multiple Family Residential District.

Currently, the City's residential development pattern is predominantly composed of lower-density single-family neighborhoods, with limited opportunities for higher-density multifamily housing. The proposed amendments are intended to expand housing opportunities, facilitate reinvestment in underutilized properties, and ensure consistency between the Housing Element, General Plan, Zoning Map, and Title 18 of the Grand Terrace Municipal Code. The proposed amendments do not approve any specific development project and do not require property owners to develop their property.

State Housing Element Law requires that sites identified to accommodate lower-income housing be zoned at a minimum density of 20 dwelling units per acre and allow for by-right residential development when affordability requirements are met. Approximately 24.2 acres of the proposed

97.1-acre rezoning area have been identified to satisfy these requirements.

HCD REVIEW AND HOUSING ELEMENT COMPLIANCE
On November 13, 2024, HCD issued a letter indicating that the Housing Element would be in substantial compliance with State Housing Element Law upon adoption of the Housing Element and completion of the required rezonings identified in Program 1.

Following adoption of the Housing Element, HCD issued a second letter dated May 22, 2025, advising the City that the adopted Housing Element met most statutory requirements but could not be found in substantial compliance until the City completed the rezonings necessary to address the remaining RHNA site shortfall.

On December 17, 2025, representatives of the City and Michael Baker International met with HCD to discuss the status of the rezoning program and the anticipated schedule for completion. During that meeting, HCD advised that failure to complete the required rezonings could expose the City to potential consequences under State law, including reduced eligibility for certain State funding programs, carryover of unmet RHNA obligations into future planning cycles, litigation, fines or judicial remedies, limitations on local land use authority, and increased exposure to housing development applications submitted pursuant to the Builder's Remedy provisions of State law.

Completion of Program 1 is necessary for the City to maintain substantial compliance with State Housing Element Law.

PUBLIC OUTREACH:

Public outreach for these amendments was conducted in coordination with Michael Baker International and included a Joint Planning Commission and City Council Study Session held on January 27, 2026, and a Property Owner and Community Study Session held on February 5, 2026.

The purpose of these meetings was to present the proposed rezonings and development standards, explain the requirements of the Housing Element, and solicit feedback from residents, property

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owners, and decision-makers. More than 50 residents participated in the community study session, and over half of the participants provided comments.

Key topics raised during the outreach process included density, building height, setbacks, sightlines, legal nonconforming uses and structures, the ability to construct additions and Accessory Dwelling Units (ADUs), fire access, utility capacity, stormwater infrastructure, and the potential buildout of the rezoned sites.

In response to community feedback, the proposed ordinance was refined while maintaining consistency with State Housing Element Law. The maximum building height was reduced to 45 feet, stepback requirements were incorporated adjacent to single-family residential uses, and revisions were made to Section 18.76.040 to clarify that existing residential properties may continue to be maintained, repaired, altered, and expanded, including the construction of ADUs and JADUs, without triggering the development standards applicable to the R3-40 District.

PUBLIC COMMENT:

In addition to the public outreach efforts described above, the City received written correspondence from nine residents, property owners, and agencies regarding the proposed amendments. The comments received generally addressed topics related to traffic and circulation, neighborhood character and compatibility, water and infrastructure capacity, environmental review, the scale and intensity of future residential development, and the City's approach to accommodating its Regional Housing Needs Allocation (RHNA). Copies of the written comments received by the City are included as Attachment 5 and incorporated into the administrative record for these proceedings.

Several residents expressed concerns regarding the potential increase in traffic and congestion associated with future residential development. Although the proposed rezonings are exempt from CEQA pursuant to Public Resources Code Section 21080.085, future development projects proposed on rezoned properties would be subject to applicable environmental review requirements, including evaluation of transportation impacts, vehicle miles traveled (VMT), air quality, utilities, infrastructure capacity, and other environmental considerations, unless otherwise exempt under State law. Where required, project-specific mitigation measures would be incorporated through the development review process.

Comments were also received regarding neighborhood compatibility, building scale, and preserving the existing character of Grand Terrace. In response to community feedback received throughout the process, revisions were incorporated into the proposed ordinance, including reducing the maximum building height to 45 feet, establishing stepback requirements adjacent to single-family neighborhoods, and clarifying the regulations applicable to legal nonconforming buildings and structures to ensure that existing residential properties may continue to be maintained and improved, including the construction of Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs), consistent with State law.

Questions were also raised regarding the City's strategy for accommodating future housing needs and whether alternative housing types could be encouraged. The proposed R3-40 district establishes a range of housing opportunities and does not require development in the form of large apartment complexes. In many cases, the minimum density requirements of the new zone could be achieved through smaller-scale multifamily development, including duplexes, triplexes, and fourplexes.

Additionally, the City is preparing pre-approved ADU plans and updating its Objective Design Standards to help ensure that future residential development is compatible with the surrounding community.

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Comments related to infrastructure capacity, including water, sewer, and public services, were also considered. The proposed legislative actions do not approve any specific development project or require property owners to redevelop their properties. Any future development proposal would be required to demonstrate compliance with applicable utility, public service, building, fire, and stormwater requirements in effect at the time of project review.

Overall, the public comments received helped inform the proposed amendments and contributed to refinements intended to balance community concerns with the City's obligation to implement Program 1 of the adopted 2021–2029 Housing Element and maintain compliance with State Housing Element Law.

PLANNING COMMISSION:

The Planning Commission conducted a duly noticed public hearing on April 2, 2026, in accordance with Section 18.03.070 of the Grand Terrace Municipal Code.

Two of the five Planning Commissioners owned property located within 500 feet of the proposed rezoning areas and were therefore precluded from participating in discussions or decisions affecting those areas. To maximize participation and avoid conflicts of interest, the Planning Commission considered the proposed rezonings through two separate actions, with each Commissioner participating only in the matters that did not affect their property interests.

Collectively, the Planning Commission's separate actions constituted a single recommendation to the City Council. The Planning Commission recommended approval of the proposed amendments and directed two revisions to the draft ordinance. First, Table 18.10.030 was revised to separate the combined residential land use category titled "Single-Family (Attached) (Duplexes, Triplexes, and Fourplexes)" into separate classifications for clarity and consistency with current housing terminology and State law. Second, Section 18.76.040(B) and (C) was revised to clarify regulations applicable to legal nonconforming buildings and structures. These revisions have been incorporated into the ordinance presented to the City Council and do not alter the overall intent or implementation of Housing Element Program 1.

Because no City Council members own property within 500 feet of the proposed rezoning areas, the separate Planning Commission actions have been recombined into a single legislative action for City Council consideration.

CITY COUNCIL:

On May 12, 2026, the City Council conducted a duly noticed public hearing to consider General Plan Amendment (GPA) 26-01, Zoning Code Amendment (ZCA) 26-02, Zone Change (ZC) 26-01, and Environmental Review (E) 26-03. Following staff presentations, public testimony, and City Council deliberation, a motion to approve the proposed amendments did not pass. The public hearing was subsequently adjourned and continued to May 26, 2026.

On May 26, 2026, the City Council received additional information from the City Attorney regarding the potential ramifications associated with failing to complete the rezonings required under Program 1 of the Housing Element. Following discussion, the City Council voted unanimously to reconsider the proposed amendments and directed staff to return with the item at a future re-noticed public hearing.

To maintain a clear and distinct administrative record following the City's prior consideration of the

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project, new application numbers were assigned to the current proceedings. The amendments are now identified as General Plan Amendment (GPA) 26-02, Zoning Code Amendment (ZCA) 26-03, Zone Change (ZC) 26-02, and Environmental Review (E) 26-04.

SUMMARY:

City staff recommends approval of General Plan Amendment (GPA) 26-02, Zoning Code Amendment (ZCA) 26-03, Zone Change (ZC) 26-02, and Environmental Review (E) 26-04 to implement Program 1 (Adequate Sites) of the City's adopted 2021–2029 Housing Element. The proposed amendments establish the R3-40 High Density Multiple Family Residential District and rezone approximately 97.1 acres of property located throughout the City to allow residential development at densities ranging from 20 to 40 dwelling units per acre.

The proposed amendments are necessary to address the City's housing site shortfall and demonstrate that the City has adequate sites to accommodate its Regional Housing Needs Allocation (RHNA), consistent with State Housing Element Law. The amendments also establish objective development standards for the new R3-40 District and include updates to provisions related to legal nonconforming uses and structures to ensure consistency with State law and compatibility with existing development.

The draft Ordinance approving Zoning Code Amendment (ZCA) 26-03, Zone Change (ZC) 26-02, and Environmental Review (E) 26-04 is included as Attachment 1, together with the November 13, 2024 HCD letter (EXHIBIT A), the May 22, 2025 HCD conditional compliance letter (EXHIBIT B), the redline copy of the proposed code amendments (EXHIBIT C), the proposed Zoning Map (EXHIBIT D), the Assessor Parcel Numbers of the properties proposed for rezoning (EXHIBIT E), the Notice of Exemption (EXHIBIT F), and the SB 131 Statutory Exemption Report (EXHIBIT G).

The draft Resolution approving General Plan Amendment (GPA) 26-02 is included as Attachment 2, together with the proposed Land Use Element (EXHIBIT AA) and proposed Land Use Map (EXHIBIT BB). The RHNA Sites Inventory Map is included as Attachment 3.

For informational purposes, Attachment 4 includes the May 26, 2026 City Council staff report discussing the legal and policy ramifications associated with failing to complete the rezonings required under Program 1 of the City's 2021–2029 Housing Element.

DISCUSSION:

PROPERTIES TO BE REZONED:

The properties proposed to be rezoned to the R3-40 High Density Multiple Family Residential District are shown in Figure 1 below. The proposed Zone Change would apply the R3-40 designation to approximately 97.1 acres across 196 parcels located throughout the City. The corresponding Assessor Parcel Numbers (APNs) for the affected properties are identified in EXHIBIT E to Attachment 1.

Figure 1: Parcels Proposed to be Rezoned to the R3-40 High Density Multiple Family Residential District (20–40 dwelling units per acre)

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Table 1 summarizes the existing zoning classifications, number of parcels, and acreage proposed for rezoning to the R3-40 District. The majority of the affected properties are currently located within the R1-7.2 and R2-10 zoning districts, with additional properties located within other residential, commercial, and specific plan districts.

Table 1: Existing Zoning Classifications Proposed for Rezoning to R3-40 Current Zone Number of
Parcels
Acreage
R1-20 1 2.2
R1-10 2 2.3

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R1-7.2 133 53.2
R2-10 51 31.5
R3-12 1 2.8
R3-24 1 2.0
BRSP 2 1.0
CM 4 2.0
TOTAL 195 97.1
ZONING CODE AMENDMENT (ZCA) 26-03:

The amendments include revisions to several sections of Title 18. Section 18.03.080 (Conditions Requiring Ministerial Review) is updated to clarify categories of housing developments and other projects that are subject to ministerial review in accordance with State law. Chapter 18.06 (Definitions) is amended to establish definitions for Common Open Space and Private Open Space to support the implementation of objective development standards applicable to multifamily residential development.

Section 18.09.020 (Districts Established) is amended to add the R3-40 High Density Multiple Family Residential District to the list of residential zoning districts adopted by the City. Table 18.10.030 (Residential Land Use Regulations) is revised to identify the residential land uses permitted within the R3-40 District and clarify existing residential land use classifications. Table 18.10.040 (Residential Development Standards) establishes objective standards applicable to the R3-40 District, including regulations related to density, building height, setbacks, open space, and site design.

The amendments also include revisions to Section 18.76.040 (Nonconforming Buildings) to clarify the regulations applicable to legally established nonconforming buildings and structures. These revisions are intended to ensure that existing residential properties located within the rezoned areas may continue to be maintained, repaired, altered, and expanded in a clear and administratively workable manner, including the construction of Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs), consistent with State law.

The development standards for the R3-40 District were refined through public outreach and Planning Commission review. Revisions incorporated into the draft ordinance include a reduction in the maximum building height to 45 feet, the addition of stepback requirements adjacent to single-family residential uses, clarification of residential land use classifications, and updates to the City's legal nonconforming provisions. These revisions maintain the City's ability to implement Program 1 while responding to concerns raised by residents, property owners, and decision-makers throughout the public process.

The code amendments are presented in clean format within the draft ordinance included as Attachment 1. A redline version illustrating the proposed changes to the existing Municipal Code has also been prepared for reference purposes and is included as EXHIBIT C to Attachment 1.

ZONE CHANGE (ZC) 26-02:

Zone Change (ZC) 26-02 amends the City Zoning Map to apply the R3-40 High Density Multiple Family Residential District designation to approximately 97.1 acres across 195 parcels located

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throughout the City. The proposed Zoning Map is included as EXHIBIT D to Attachment 1, and the corresponding Assessor Parcel Numbers (APNs) for the affected properties are identified in EXHIBIT E to Attachment 1.

The prezone area includes properties currently designated under a variety of zoning classifications.

The selection of these sites was informed by both State housing requirements and local planning considerations. Factors evaluated included the ability of sites to accommodate residential development at densities necessary to meet RHNA obligations, existing land use patterns, redevelopment potential, parcel characteristics, and the likelihood that sites could reasonably develop during the Housing Element planning period.

GENERAL PLAN AMENDMENT (GPA) 26-02:

General Plan Amendment (GPA) 26-02 amends the General Plan Land Use Element and Land Use Map to establish the R3-40 High Density Multiple Family Residential land use designation and redesignate approximately 97.1 acres of property located throughout the City to support residential development at densities ranging from 20 to 40 dwelling units per acre. These amendments are necessary to maintain consistency between the General Plan and the implementing zoning regulations proposed through Zoning Code Amendment (ZCA) 26-03 and Zone Change (ZC) 26-02.

The General Plan serves as the City's long-range policy framework and establishes the distribution, location, and intensity of land uses throughout the community. The proposed amendments ensure that the General Plan remains consistent with the City's adopted 2021–2029 Housing Element and Program 1 (Adequate Sites), which identified the need to establish additional capacity to accommodate the City's Regional Housing Needs Allocation (RHNA).

In addition to revising the Land Use Map, the proposed amendments update the Land Use Element text to incorporate the R3-40 designation, identify the associated residential density range, and recognize higher-density residential development as part of the City's overall land use framework.

These amendments provide the policy basis necessary to support the corresponding zoning changes and implementation measures required under State Housing Element Law.

The General Plan amendments do not approve any specific development project, nor do they require property owners to redevelop their properties. Rather, they establish the land use framework necessary to accommodate future housing opportunities while maintaining consistency among the Housing Element, General Plan, Zoning Map, and Municipal Code.

The Land Use Element and Land Use Map are included as EXHIBIT AA and EXHIBIT BB, respectively, to Attachment 2.

YIELD CALCULATIONS:

For Housing Element planning purposes, the City uses a yield assumption to estimate how many housing units are realistically likely to be constructed on sites identified to accommodate the Regional Housing Needs Allocation (RHNA). This recognizes that development at the maximum allowable density is less likely due to factors such as existing development patterns, market conditions, sitespecific constraints, redevelopment feasibility, and property owner participation.

Based on historical development patterns and regional trends, the City assumed that sites identified to meet the RHNA would develop at approximately 70 percent of the maximum allowable density.

Actual development may be higher or lower depending on the characteristics of individual properties.

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If all 97.1 acres for rezoning were redeveloped at the maximum density of 40 dwelling units per acre, the rezoning could theoretically accommodate approximately 3,600 net additional dwelling units.

However, this represents a long-term planning scenario used to evaluate zoning capacity and does not reflect an expected development outcome.

The Southern California Association of Governments (SCAG) projects that Grand Terrace will grow from approximately 4,900 households to 5,700 households by 2050, representing approximately 800 additional households over the next 25 years, or an average of approximately 32 housing units per year. Historically, Grand Terrace has experienced substantially lower levels of residential growth, adding approximately 500 housing units between 2000 and 2020, or an average of approximately 25 housing units annually, and fewer than five new housing units annually in recent years.

Accordingly, while the rezoning establishes sufficient housing capacity to comply with State Housing Element requirements, actual residential development is expected to occur incrementally over time and will continue to depend on market conditions, infrastructure availability, financing, and individual property owner decisions.

NO NET LOSS:

State Housing Element Law requires the City to maintain adequate housing capacity throughout the Housing Element planning period, commonly referred to as "No Net Loss." If a site identified in the Housing Element develops at a lower density than anticipated, or is developed with units serving a different income category than originally assumed, the City may be required to identify additional sites or complete additional rezonings to replace the lost capacity.

For example, if a site identified in the Housing Element is assumed to accommodate 100 housing units but ultimately develops with only 70 units, the City would experience a net loss of 30 units of housing capacity. Similarly, if a site identified to accommodate lower-income housing develops with only market-rate units, the City may be required to replace the lost lower-income capacity.

The rezoning establishes housing capacity beyond the minimum amount necessary to satisfy the City's current Regional Housing Needs Allocation (RHNA). This additional capacity provides flexibility should future development occur at lower densities than anticipated and reduces the likelihood that the City would need to complete additional rezonings during the remainder of the Housing Element planning period.

The City will continue to monitor housing production and remaining site capacity through its annual reporting requirements to the California Department of Housing and Community Development (HCD).

If a future development results in a net loss of housing capacity, the City would evaluate the remaining inventory of rezoned sites and take any actions necessary to maintain compliance with State Housing Element Law.

ENVIRONMENTAL IMPACT:

A Notice of Exemption (NOE) was prepared in accordance with the California Environmental Quality Act (CEQA). The proposed amendments implement Program 1 of the City's adopted 2021–2029 Housing Element through amendments to the General Plan, City Zoning Map, and Title 18 (Zoning) of the Grand Terrace Municipal Code.

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The legislative actions are exempt from CEQA pursuant to Public Resources Code Section 21080.085, which provides a statutory exemption for rezonings undertaken to implement an adopted Housing Element. The amendments do not approve any specific development project, but instead establish the regulatory framework and zoning capacity necessary to accommodate future housing opportunities consistent with State Housing Element Law.

The Notice of Exemption and SB 131 Statutory Exemption Report are included as EXHIBITS F and G to Attachment 1, respectively, and will be filed following approval and adoption of the proposed amendments. Based on this determination, no further environmental review is required.

FISCAL IMPACT:

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

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

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

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CC Ord No. xxx Page 1 of 30 June 23, 2026
ORDINANCE NO. xxx

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND

TERRACE, CALIFORNIA, APPROVING ZONING CODE AMENDMENT
(ZCA) 26-03, ZONE CHANGE (ZC) 26-02, AND ENVIRONMENTAL
REVIEW (E) 26-04, AMENDING THE CITY ZONING MAP AND TITLE 18 (ZONING) OF THE GRAND TERRACE MUNICIPAL CODE; TO
ESTABLISH THE R3-40 HIGH DENSITY MULTIPLE FAMILY
RESIDENTIAL DISTRICT; TO ALLOW RESIDENTIAL DEVELOPMENT
AT A DENSITY OF 20 TO 40 DWELLING UNITS PER ACRE; AND TO REZONE APPROXIMATELY 97.1 ACRES OF PROPERTY LOCATED
THROUGHOUT THE CITY TO THE R3-40 DESIGNATION, CONSISTENT WITH HOUSING ELEMENT PROGRAM NO. 1 OF THE CITY’S 2021–
2029 HOUSING ELEMENT

WHEREAS, the City of Grand Terrace (“City”) has adopted a Zoning Code set forth in Title 18 of the Grand Terrace Municipal Code (“GTMC”), which regulates land use and development within the City; and
WHEREAS, Government Code Section 65580 et seq. requires cities to adopt and maintain a Housing Element that identifies and plans for the housing needs of all economic segments of the community; and
WHEREAS, on November 13, 2024, the California Department of Housing and Community Development (HCD) issued a letter (EXHIBIT A) finding that the City’s Housing Element will be in substantial compliance with State Housing Element Law upon adoption of the Housing Element and completion of the required rezoning; and WHEREAS, on March 25, 2025, the City Council adopted the 2021–2029 Housing Element (General Plan Amendment 25-01), which identifies policies and programs to accommodate the City’s Regional Housing Needs Allocation (RHNA); and WHEREAS, the City’s RHNA for the 6th Cycle (2021–2029) is 630 housing units across all income levels, as determined by the Southern California Association of Governments (SCAG); and
WHEREAS, the adopted Housing Element identified a shortfall of adequate sites to accommodate the RHNA and includes Program 1 (Adequate Sites), which requires the City to rezone land to allow higher-density residential development; and WHEREAS, Program 1 requires the City to rezone approximately 97.1 acres to allow residential development at densities of 20 to 40 dwelling units per acre under a new HDR R3-40 Multiple Family Residential District; and

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CC Ord No. xxx Page 2 of 30 June 23, 2026
WHEREAS, State Housing Element law requires that sites identified to accommodate lower-income housing be zoned at a minimum density of at least 20 dwelling units per acre and allow for by-right residential development when affordability requirements are met; and
WHEREAS, Housing Element Program 1 commits the City of Grand Terrace to rezoning 97.1 acres of the City to “High Density Residential R3-40” multiple-family residential zone on the Zoning Map and designated as “High Density Residential (HDR)” on the General Plan Land Use Map, which is comprised of one-hundred and ninety-five (195) parcels of land that are identified as Assessor’s Parcel Numbers 0275-211-05, 0275-211-09, 0275-211-16, 0275-211-17, 0275-211-26, 0275-211-30, 0275-211-32, 0275-211-34, 0275-211-36, 0275-211-37, 0275-211-38, 0275-211-39, 0275-211-41, 0275-211-42, 0275-211-43, 0275-211-46, 0275-211-47, 0275-211-50, 0275-211-51, 0275-211-52, 0275-211-56, 0275-211-57, 0275-211-58, 0275-212-04, 0275-212-06, 0275-212-09, 0275-212-12, 0275-212-13, 0275-212-15, 0275-212-16, 0275-212-17, 0275-212-18, 0275-212-19, 0275-223-12, 0275-223-31, 0275-223-36, 0275-223-38, 0275-223-40, 0275-223-41, 0275-223-49, 0275-223-50, 0275-223-51, 0275-223-53, 0275-223-54, 0275-223-55, 0275-223-59, 0275-223-60, 0275-231-12, 0275-231-17, 0275-231-22, 0275-231-26, 0275-231-31, 0275-231-32, 0275-231-33, 0275-231-39, 0275-231-40, 0275-231-41, 0275-231-42, 0275-231-43, 0275-231-71, 0275-231-73, 0275-232-09, 0275-232-10, 0275-241-32, 0275-251-45, 0275-251-53, 0275-251-54, 0275-271-01, 0275-271-02, 0275-271-03, 0275-271-04, 0275-271-05, 0275-271-06, 0275-271-07, 0275-271-08, 0275-271-09, 0275-271-10, 0275-271-11, 0275-271-12, 0275-271-13, 0275-271-14, 0275-271-15, 0275-271-16, 0275-271-17, 0275-272-01, 0275-272-02, 0275-272-03, 0275-272-04, 0275-272-05, 0275-272-07, 0275-272-11, 0275-272-12, 0275-272-13, 0275-272-14, 0275-272-15, 0275-272-16, 0275-272-17, 0275-272-18, 0275-272-19, 0275-273-01, 0275-273-02, 0275-273-03, 0275-273-04, 0275-273-05, 0275-273-06, 0275-273-07, 0275-273-08, 0275-273-09, 0275-273-10, 0275-273-13, 0276-202-47, 0276-202-61, 0276-411-27, 0276-411-28, 0276-451-34, 1167-161-07, 1167-161-10, 1167-161-12, 1167-161-15, 1167-161-16, 1167-161-17, 1167-161-18, 1167-161-19, 1167-161-22, 1167-161-23, 1167-161-24, 1167-161-25, 1167-161-26, 1167-161-27, 1167-161-31, 1167-161-32, 1167-171-01, 1167-171-02, 1167-171-03, 1167-171-04, 1167-171-05, 1167-171-06, 1167-171-07, 1167-171-08, 1167-171-09, 1167-171-10, 1167-181-08, 1167-181-09, 1167-181-10, 1167-181-11, 1167-201-03, 1167-201-04, 1167-201-05, 1167-201-06, 1167-201-07, 1167-201-08, 1167-201-09, 1167-201-10, 1167-201-11, 1167-201-12, 1167-241-01, 1167-241-02, 1167-241-03, 1167-241-04, 1167-241-05, 1167-241-06, 1167-241-07, 1167-241-09, 1167-241-10, 1167-241-13, 1167-241-15, 1167-241-17, 1167-241-18, 1167-241-19, 1167-241-54, 1167-241-55, 1167-241-56, 1167-251-08, 1167-251-09, 1167-251-10, 1167-251-11, 1167-251-12, 1167-251-13, 1167-251-14, 1167-251-18, 1167-251-19, 1167-251-20, 1167-251-69, 1167-251-71, 1167-271-01, 1167-271-02, 1167-271-03, 1167-271-10, 1167-271-12, 1167-271-67, 1167-271-68, 1167-271-69, 1167-271-70, 1167-281-01, 1167-281-02; and

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CC Ord No. xxx Page 3 of 30 June 23, 2026
WHEREAS, following adoption of the City's 2021–2029 Housing Element, the California Department of Housing and Community Development (HCD), by letter dated May 22, 2025, attached hereto as EXHIBIT B, advised the City that the adopted Housing Element met most of the statutory requirements of State Housing Element Law but could not be found in substantial compliance until the City completed the necessary rezonings to address the shortfall of sites needed to accommodate the RHNA; and WHEREAS, on December 17, 2025, representatives of the City and it’s housing consultant Michael Baker International met with HCD to discuss the status of the Housing Element rezoning program, the anticipated schedule for completion of the required rezonings, and the City's ongoing efforts to implement Program 1; and WHEREAS, during that discussion, HCD advised the City that failure to complete the required rezonings in a timely manner could result in the loss of Housing Element compliance and expose the City to potential consequences under State law, including but not limited to reduced eligibility for certain state funding programs, the carryover of unmet Regional Housing Needs Allocation obligations into future planning cycles, litigation, fines or other judicial remedies, limitations on local land use authority, and increased exposure to housing development applications submitted pursuant to the Housing Accountability Act and related provisions of State law; and
WHEREAS, completion of the rezonings required under Program 1 is necessary for the City to maintain substantial compliance with State Housing Element Law; and WHEREAS, these actions increase housing capacity, facilitate reinvestment in underutilized properties, and ensure continued compliance with State Housing Element law; and
WHEREAS, these actions do not approve any specific development project and do not require property owners to develop their property; and WHEREAS, public outreach for these actions included a Joint Planning Commission and City Council Study Session held on January 27, 2026, and a Property Owner and Community Study Session held on February 5, 2026; and WHEREAS, On April 2,2026, the Planning Commission conducted duly noticed public hearing, and considered all testimony and evidence for Zoning Code Amendment (ZCA) 26-02, Zone Change (ZC) 26-01, and Environmental Review (E) 26-03; and WHEREAS, due to potential conflicts of interest involving Planning Commissioners, the Planning Commission considered these actions in two separate actions (ZCA 26-02-A / ZC 26-01-A and ZCA 26-02-B / ZC 26-01-B); and WHEREAS, the Planning Commission’s separate actions collectively constitute a single recommendation to the City Council; and

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CC Ord No. xxx Page 4 of 30 June 23, 2026
WHEREAS, in making its recommendation, the Planning Commission directed two revisions to the draft ordinance, including updates to Table 18.10.030 (Residential Land Use Regulations) to clarify residential land use classifications, and revisions to Section

18.76.040(B) and (C) to clarify the regulations applicable to legal nonconforming buildings and structures; and
WHEREAS, the Planning Commission adopted separate resolutions recommending approval of these actions to the City Council; and WHEREAS, the City Council conducted a duly noticed public hearing on May 12, 2026, and considered all testimony and evidence for Zoning Code Amendment (ZCA) 26- 02, Zone Change (ZC) 26-01, and Environmental Review (E) 26-03; and WHEREAS, the Grand Terrace City Council rejected this project on May 12, 2026; and
WHEREAS, at the conclusion of the May 12, 2026, public hearing, the City Council did not pass the motion to approve General Plan Amendment (GPA) 26-01, Zoning Code Amendment (ZCA) 26-02, Zone Change (ZC) 26-01, and Environmental Review (E) 26- 03, and the hearing was adjourned for continuation to May 26, 2026; and WHEREAS, on May 26, 2026, the City Council was briefed by the city attorney on the ramifications of failing to adopt the amendments necessary to implement Program 1 of the City's 2021–2029 Housing Element, including potential impacts to the City's compliance with State Housing Element Law; and
WHEREAS, following discussion, the City Council voted to reconsider General Plan Amendment (GPA) 26-01, Zoning Code Amendment (ZCA) 26-02, Zone Change (ZC) 26-01, and Environmental Review (E) 26-03 and directed that the matter be brought back to a future re-noticed public hearing to ensure the public was properly informed prior to final action; and
WHEREAS, On May 26,2026, the Grand Terrace City Council unanimously moved to reconsider this project; and
WHEREAS, to maintain a clear and distinct administrative record following the City Council's prior consideration of GPA 26-01, ZCA 26-02, ZC 26-01, and E 26-03, the City assigned new application numbers to the current proceedings, consisting of General Plan Amendment (GPA) 26-02, Zoning Code Amendment (ZCA) 26-03, Zone Change (ZC) 26-02, and Environmental Review (E) 26-04; and
WHEREAS, Zoning Code Amendment (ZCA) 26-03 amends Title 18 Zoning to establish the R3-40 High Density Multiple Family Residential District and includes residential development standards to facilitate higher-density residential development consistent with State law; and

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CC Ord No. xxx Page 5 of 30 June 23, 2026
WHEREAS, the amendments to the Grand Terrace Municipal Code are set forth in clean format within this Ordinance, and a redline version depicting the changes to the existing code text has been prepared for reference purposes and attached hereto as EXHIBIT C, incorporated herein by this reference; and
WHEREAS, Section 18.03.080 (Conditions Requiring Ministerial Review) identifies categories of housing developments and other projects that are subject to ministerial review in accordance with State law; and
WHEREAS, Zoning Code Amendment (ZCA) 26-03 amends Section 18.03.080 (Conditions Requiring Ministerial Review) to clarify the types of residential projects eligible for ministerial processing and ensure continued consistency with State housing laws applicable to lower-income housing developments, supportive housing, and other projects for which ministerial review is required; and
WHEREAS, Chapter 18.06 (Definitions) establishes definitions applicable to the interpretation and administration of the Zoning Ordinance; and WHEREAS, Zoning Code Amendment (ZCA) 26-03 amends Chapter 18.06 (Definitions) to establish definitions for "Common Open Space" and "Private Open Space" to support the implementation of objective development standards applicable to multiple family residential development; and
WHEREAS, Section 18.09.020 "Districts Established" of Chapter 18.09 – Residential Districts and Zoning Map identifies the residential zoning districts adopted by the City and incorporated into the Official Zoning Map; and WHEREAS, Zoning Code Amendment (ZCA) 26-03 amends Section 18.09.020 "Districts Established" to add the R3-40 High Density Multiple Family Residential District to the list of residential zoning districts in order to implement Housing Element Program 1 and provide additional capacity to accommodate the City's Regional Housing Needs Allocation consistent with State housing law; and
WHEREAS, Table 18.10.030 "Residential Land Use Regulations" of Chapter

18.10 – Residential Districts establishes the residential land use classifications and identifies the zoning districts in which such uses are permitted, conditionally permitted, or prohibited; and
WHEREAS, Zoning Code Amendment (ZCA) 26-03 amends Table 18.10.030 "Residential Land Use Regulations" to incorporate the R3-40 High Density Multiple Family Residential District, establish the uses permitted within the new district, and ensure consistency between the City's residential land use regulations, Housing Element Program 1, and State housing law; and
WHEREAS, Table 18.10.040 "Residential Development Standards" of Chapter

18.10 – Residential Districts establishes the development standards applicable to

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CC Ord No. xxx Page 6 of 30 June 23, 2026
residential zoning districts within the City, including standards related to density, setbacks, building height, lot coverage, and open space; and WHEREAS, Zoning Code Amendment (ZCA) 26-03 amends Table 18.10.040 "Residential Development Standards" to establish development standards applicable to the R3-40 High Density Multiple Family Residential District and to incorporate revisions to residential development standards in response to public outreach, Planning Commission recommendations, and City Council direction while maintaining consistency with Housing Element Program 1 and State housing law; and WHEREAS, Section 18.76.040 "Nonconforming Buildings" of Chapter 18.76 – Nonconforming Uses and Buildings establishes the regulations governing the maintenance, repair, alteration, expansion, and reconstruction of legally established buildings that do not conform to subsequently adopted zoning regulations; and WHEREAS, Zoning Code Amendment (ZCA) 26-03 amends Section 18.76.040 "Nonconforming Buildings" to clarify the regulations applicable to legal nonconforming buildings, including the circumstances under which additions, repairs, Accessory Dwelling Units (ADUs), and Junior Accessory Dwelling Units (JADUs) may be permitted, consistent with State law and Housing Element Program 1; and
WHEREAS, Zone Change (ZC) 26-02 amends the City Zoning Map to apply the R3-40 designation to approximately 97.1 acres across 195 parcels located throughout the City, as shown on the zoning map attached hereto as EXHIBIT D and incorporated herein by this reference; and
WHEREAS, the Assessor's Parcel Numbers ("APNs") corresponding to the properties identified for rezoning under Zone Change (ZC) 26-01 are set forth in EXHIBIT E, attached hereto and incorporated herein by this reference; and WHEREAS, the City duly noticed the public hearing and provided notice in accordance with applicable provisions of State law and Section 18.03.070 of the Grand Terrace Municipal Code; and
WHEREAS, the City of Grand Terrace Planning and Community Development Department, on June 11, 2026, posted two (2) true and correct copies of the legal notice at the Grand Terrace City Hall Bulletin Board and at the Grand Terrace Public Library, and posted the notice on the City's website in accordance with Section 18.03.070 of the Grand Terrace Municipal Code; and
WHEREAS, the City received nine (9) written public comments regarding these proceedings, and notices of the re-noticed public hearing were mailed to the commenters on June 11, 2026; and
WHEREAS, the City of Grand Terrace Planning and Community Development Department, on June 11, 2026, mailed 2,322 copies of the Notice of Public Hearing to

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CC Ord No. xxx Page 7 of 30 June 23, 2026
affected property owners, stakeholders, and surrounding jurisdictions in accordance with applicable provisions of State law and the Grand Terrace Municipal Code; and WHEREAS, the City of Grand Terrace Planning and Community Development Department, on June 11, 2026, published a legal notice in the Terrace City News, a newspaper of general circulation, indicating the date, time, and place of the public hearing in accordance with applicable provisions of State law and the Grand Terrace Municipal Code; and
WHEREAS, the City Council conducted a duly noticed public hearing on June 23, 2026, and considered all oral and written testimony, evidence, and the administrative record prior to taking action on this Ordinance; and
WHEREAS, Environmental Review (E) 26-04, including the Notice of Exemption (EXHIBIT F) and SB 131 Statutory Exemption Report (EXHIBIT G), demonstrate that these actions are exempt from the California Environmental Quality Act ("CEQA") pursuant to Public Resources Code Section 21080.085; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

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

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

SECTION 2. Environmental Determination (CEQA). The City Council finds that this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Public Resources Code Section 21080.085, as documented in Environmental Review (E) 26-04, including the Notice of Exemption (EXHIBIT F) and SB 131 Statutory Exemption Report (EXHIBIT G).

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

Facts in Support of Finding: Zoning Code Amendment (ZCA) 26-03 establishes the R3-40 High Density Multiple Family Residential District to implement Program 1 of the City's adopted 2021–2029 Housing Element and facilitate compliance with State Housing Element Law.

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CC Ord No. xxx Page 8 of 30 June 23, 2026
The amendment establishes development standards governing future residential development, including standards related to building placement, height, setbacks, parking, open space, landscaping, and site design. The amendment does not approve any specific development project, and any future development proposals will be required to comply with all applicable provisions of the Grand Terrace Municipal Code, Building Code, Fire Code, and other local, regional, and state regulations.

The City conducted extensive public outreach during the development of the amendment, including study sessions with the Planning Commission, City Council, affected property owners, and the broader community. Based on public input received through this process, revisions were made to the development standards, including modifications to accessory dwelling unit allowances, legal nonconforming use provisions, and other zoning regulations intended to address community concerns while maintaining consistency with State law.

The establishment of objective and predictable zoning standards to accommodate housing opportunities consistent with the City's Housing Element supports orderly growth and development and will not be detrimental to the public health, safety, morals, comfort, or general welfare of the community.
2) Finding: The amendment will not be: Injurious to property or improvements in the neighborhood or within the City.

Facts in Support of Finding: The amendment modifies the City's Zoning Code to permit higher-density residential development consistent with the City's Housing Element and applicable State housing laws. The amendment establishes a regulatory framework for future development but does not authorize construction of any specific project.

All future development within the R3-40 District will be subject to applicable zoning regulations, objective development standards, building permit review, and inspection requirements to ensure that new development is appropriately designed and constructed.

As a result of public outreach and feedback received during the public review process, the City revised the development standards to reduce maximum building heights and increase setback requirements in certain circumstances to improve compatibility with surrounding neighborhoods. These modifications further ensure that future residential development within the R3-40 District is compatible with adjacent uses and will not be injurious to property or improvements within the City.

Because the amendment establishes standards for the review of future development rather than approving a specific project, the amendment itself will not

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CC Ord No. xxx Page 9 of 30 June 23, 2026
result in direct impacts to surrounding properties and instead provides a consistent and predictable framework for future development.
3) Finding: The amendment will be consistent with the latest adopted general plan.

Facts in Support of Finding: Zoning Code Amendment (ZCA) 26-03 implements Program 1 (Adequate Sites) of the City's adopted 2021–2029 Housing Element, which is one of 21 implementation programs intended to address the City's housing needs throughout the planning period.

The Housing Element is one of the mandatory elements of the General Plan and functions as part of a larger, coordinated planning effort. In conjunction with the Housing Element update, the City has completed updates to the Safety Element and the Local Hazard Mitigation Plan, and is preparing an Environmental Justice Element, all of which work together to ensure the General Plan remains comprehensive, internally consistent, and responsive to evolving State requirements.

The amendment establishes the R3-40 High Density Multiple Family Residential District to accommodate higher-density residential development consistent with the goals, policies, and programs of the Housing Element and Land Use Element.

The amendment ensures that the City maintains compliance with State Housing Element Law, accommodates its Regional Housing Needs Allocation (RHNA), and advances implementation of the General Plan. Therefore, the proposed amendment is consistent with the latest adopted General Plan.

SECTION 4. Section 18.03.080, "Conditions Requiring Ministerial Review," of Chapter 18.03 (General Provisions) of Title 18 (Zoning) of the Grand Terrace Municipal Code is hereby amended to update and clarify the categories of projects subject to ministerial review, to read in its entirety as follows:
“18.03.080 Conditions requiring ministerial review.

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

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

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

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

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

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

C. Any other use or project for which State law requires the City to utilize a ministerial review process.”
SECTION 5. Sections 18.06.172 "Common Open Space" and 18.06.607 "Private Open Space" of Chapter 18.06 – DEFINITIONS of the Grand Terrace Municipal Code are hereby added to read as follows:
“18.06.172 Common open space.
"Common open space" means a court, landscape, recreation building/facility or other outdoor area which is used for landscape and/or recreation and that has common access from more than one dwelling unit. Common open space may also include the water area of a pool and common recreation facilities or gardens located on top of a building or parking structure. Open space does not include off-street parking and loading areas or driveways.

18.06.607 Private open space.
"Private open space" means any private balcony, porch, deck, patio, court, ground level yard or roof deck that is accessible from only one unit. Open space does not include off-street parking and loading areas or driveways.”
SECTION 6. Chapter 18.09, "Residential Districts and Zoning Map," of Title 18 (Zoning) of the Grand Terrace Municipal Code is hereby amended to add the R3-40 High Density Multiple Family Residential District to the list of established residential zoning districts and make related conforming updates to Chapter 18.09. The final adopted version of Chapter 18.09, as amended herein, shall read as follows:
“Chapter 18.09 RESIDENTIAL DISTRICTS AND ZONING MAP

18.09.010 Purpose.

The purpose of this Chapter is to establish the various residential zoning districts within the City.

A. (Ord. No. 357, § 4, 8-13-2024; Ord. 126 § 2, Exh. A(part), 1990)

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18.09.020 Districts established.

The following residential zoning districts are established:

RH Hillside Single Family Residential District
R1-20 Very Low Density Single Family Residential District R1-10 Low Density Single Family Residential District
R1-7.2 Single Family Residential District
R2-10 Low Density Multiple Family Residential District
R3-12 Medium Density Multiple Family Residential District R3-20 Medium High Density Multiple Family Residential District R3-40 High Density Multiple Family Residential District BRSP Barton Road Specific Plan District
AP Administrative Professional Office District
C2 General Business District
CM Commercial Manufacturing District
MR Restricted Manufacturing District
M2 Industrial District
PUB Public Facilities District
B. (Ord. No. 357, § 4, 8-13-2024; Ord. No. 298, § 7, 10-11-2016; Ord. No. 264, § 10, 6-12- 2012; Ord. 126 § 2, Exh. A(part), 1990)

18.09.021 Overlays established.

AG-1 Agricultural Overlay No. 1
AG-2 Agricultural Overlay No. 2
FP Floodplain Overlay
O-40 High Density Multiple Family Residential Overlay

18.09.022 Specific Plans established.

BMSP The Blue Mountain Specific Plan
BMSVSP The Blue Mountain Senior Villas Specific Plan

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BRSP The Barton Road Specific Plan
GBSP The Greenbriar Specific Plan
GSP The Gateway at Grand Terrace Specific Plan
“
SECTION 7. Chapter 18.10, "Residential Districts," of Title 18 (Zoning) of the Grand Terrace Municipal Code is hereby amended to update the purpose and applicability provisions of the residential districts; establish the R3-40 High Density Multiple Family Residential District; clarify the application of State housing laws related to ministerial review, small lot subdivisions, and urban lot splits; correct miscellaneous grammatical and formatting errors; and amend Table 18.10.030, "Residential Land Use Regulations," to incorporate the R3-40 district, revise residential land use classifications, and identify the uses permitted within each residential zoning district. The final adopted version of Chapter 18.10, as amended herein, shall read as follows:
“Chapter 18.10 RESIDENTIAL DISTRICTS1

18.10.010 Purpose.

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

A. To provide for development in accordance with the General Plan; B. To promote the most appropriate and efficient use of the land while providing a variety of housing opportunities to the community;
C. To promote a compatible relationship between residential, commercial and other types of land uses located in the community;
D. To promote the public health, safety and welfare through encouraging the appropriate type and size of development for the community;
E. To manage development with respect to its type, size and location in order to prevent harmful encroachment of disruptive development into the community's residential neighborhoods.
(Ord. 146 § 1(part), 1993: Ord. 126 § 2, Exh. A(part), 1990) The provisions of Section 18.03.080 shall apply in determining projects that shall not require a permit, conditional use permit, or other discretionary review or approval. 1Ord. No. 264, § 11, adopted June 12, 2012, changed the title of Chapter 18.10 from "RH, R1, R2, R3 and R3-S Residential districts" to "Residential districts."

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18.10.020 Residential districts.

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

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

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

C. R1-10, Low Density Single Family Residential District. This district is intended for low density single-family residential use. The minimum lot size is 10,000 square feet with a maximum density of four (4) dwelling units per gross acre.

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

E. R2-10, Low Density Multiple Family Residential District. This district is intended for single-family residential use and low density multiple family development. The minimum lot size is 10,000 square feet with a maximum density of nine (9) dwelling units per gross acre.

F. R3-12, Medium Density Multiple Family Residential District. This district is intended for medium density multiple family development. The minimum lot size is 12,000 square feet with a maximum density of twelve (12) dwelling units per gross acre.

G. R3-20, Medium High Density Multiple Family Residential District. This district is intended for medium high density multiple family development, which may include affordable housing. The minimum lot size is 12,000 square feet with a maximum density of twenty (20) units per acre.

H. R3-40, High Density Multiple Family Residential District. This district is intended for high density multiple family development, which may include affordable housing. The minimum lot size is 5,500 square feet with a minimum density of twenty (20) units per acre and a maximum density of forty (40) units per acre. Example project types may include garden-style apartments, courtyard buildings, townhomes, multiplexes, and other multiple family housing types. Single-family residential development or any residential development at a density less than twenty (20) dwelling units per acre is prohibited.
(Ord. No. 298, § 8, 10-11-2016; Ord. No. 264, §§ 12, 13, 6-12-2012; Ord. No. 231, § 1(Exh. D), 9- 11-2007; Ord. 126 § 2, Exh. A(part), 1990)

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18.10.021 Small lot subdivisions.

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

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

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

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

18.10.030 Use regulations.

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

TABLE 18.10.030

RESIDENTIAL LAND USE REGULATIONS
Permitted Uses RH R1-20 R1-10 R1-7.2 R2-10 R3-12 R3-20 R3-40 A. Residential Uses
Single-Family (Detached), Full Sized P P P P P
a Pb
- -
Second Units (Subject to Chapter

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

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Permitted Uses RH R1-20 R1-10 R1-7.2 R2-10 R3-12 R3-20 R3-40 Multiple Family Units - - - - P P P P
Manufactured Housing (As Permitted
Per Chapter 18.66)

P P P P P P P P
Mobile Home Park - - - - C C C C
Senior Citizen Housing - - - - - - P P
Small Lot Subdivision "Starter Home
Revitalization Act" (Subject to
Chapters 17.29 and 18.10)

P P P P P P P P
Urban Lot Splits “Housing
Opportunity and More Efficiency”
(HOME) Act of 2021 (Subject to
Chapters 17.29 and 18.65)
- P P P - - - -
Planned Residential Development (As
Permitted Per Section 18.10.090)
- - - - P P P P
B. Residential Accessory Structures
Accessory Structure P P P P P P P P
Accessory Dwelling Unit (Subject to
Chapter

17.30 and 18.69)

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

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

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

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

P P P P P P P P
C. Other Uses
Churches (Minimum Three-Acre
Parcel)e

C C C C C C C C
d
Electric Vehicle Charging Stations
(accessory use)i

P P P P P P P P
Schools (Private and Parochial)e C C C C C C C C
d
Public Park and Playgrounde P P P P P P P P
d
Public Facilities (and Quasi- Public)e C C C C C C - -
Family Day Care Small (Eight or Less
Children)e

P P P P P P P P

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Permitted Uses RH R1-20 R1-10 R1-7.2 R2-10 R3-12 R3-20 R3-40 Family Day Care Large (Nine or More
Children)e

P P P P P - P P
Residential Care Facility (Six or Less
Persons)

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

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

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

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d. Churches, schools (private and parochial), public parks, and playgrounds shall be permitted in the R3-40 zone for projects where at least fifty percent (50%) of the gross floor area is multiple family residential use.
e. Notwithstanding anything indicating otherwise in this Table, this use is prohibited on a parcel that was created by an urban lot split, pursuant to Subsection 17.30.050(A). f. Subject to administrative conditional use permit.
g. Notwithstanding anything indicating otherwise in this Table, this use shall be prohibited if the finding of a specific, adverse impact is made in accordance with Subsection

18.65.020(C).
h. CLHFs are required to comply with the City's Objective Design Standards (ODS) and a State license is required to operate as a Congregate Living Health Facility (CLHF) in California. A CLHF means a residential home with a capacity of no more than 18 beds (except a facility operated by a city and county for purposes of delivering services may have a capacity of 59 beds; or, a facility not operated by a city and county servicing persons who are terminally ill, persons who have been diagnosed with a life-threatening illness, or both, that is located in a county with a population of 500,000 or more persons, or located in a county of the 16th class pursuant to Section 28020 of the Government Code, may have not more than 25 beds for the purpose of serving persons who are terminally ill) that provides inpatient care, including the following basic services: medical supervision, 24-hour skilled nursing and supportive care, pharmacy, dietary, social, recreational, and at least one type of the following service:
(A) Services for people who are mentally alert, people with physical disabilities, who may be ventilator dependent.
(B) Services for people who have a diagnosis of terminal illness, a diagnosis of a lifethreatening illness, or both. Terminal illness means the individual has a life expectancy of six months or less as stated in writing by his or her attending physician and surgeon. A "life-threatening illness" means the individual has an illness that can lead to a possibility of a termination of life within five years or less as stated in writing by his or her attending physician and surgeon. (C) Services for persons who are catastrophically and severely disabled. A person who is catastrophically and severely disabled means a person whose origin of disability was acquired through trauma or nondegenerative neurologic illness, for whom it has been determined that active rehabilitation would be beneficial and to whom these services are being provided. Services offered by a congregate living health facility to a person who is catastrophically disabled shall include, but not be limited to, speech, physical and occupational therapy.
i. Residential Electric Vehicle Charging Stations shall be processed by the City in compliance with AB 970 (McCarty, 2021) subject to the specific binding timelines for the expedited, streamlined, ministerial review and approval of Electric Vehicle Charging Station (EVCS) permit applications per Assembly Bill 1236 (Chiu, 2015). The review periods for Electric Vehicle Charging Stations are determined based on the size of the proposed project.

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Application Completeness
• 1-25 Electric Vehicle Charging Stations at a single site: 5 business days • 26 or more stations at a single site: 10 business days Application Approval
• 1-25 Electric Vehicle Charging Stations at a single site: 20 business days • 26 or more stations at a single site: 40 business days Conditions of Approval for Expedited Review
• A completed Submittal Requirements Checklist.
• All proposed Electric Vehicle Charging Stations and equipment shall conform with the City of Grand Terrace Objective Design Standards (ODS) • Electric Vehicle Charging Station equipment including transformers, generating stations, energy storage units, and any other electric vehicle charging station related equipment must be adequately screened from visible view to the satisfaction of the City by one or combination of the following:
• Permanent masonry enclosure with decorative block wall and metal roof covering. Access gates/doors to be lockable and secure. • Shrink wrap material acceptable to the City's Objective Design Standards k. State Law SB 234 known as the “California Child Day Care Facilities Act” of 2021 designates small and large family daycare homes as a residential use of property. SB234 prohibits a local jurisdiction from imposing a business license, fee, or tax for the privilege of operating a small family daycare home and large family daycare home. (Ord. No. 359, § 6, 8-13-2024; Ord. No. 338, § 13, 5-24-2022; Ord. No. 336-U, § 16, 1-25-2022; Ord. No. 298, § 9, 10-11-2016; Ord. No. 264, §§ 14, 15, 6-12-2012; Ord. No. 231, § 1(Exh. D), 9- 11-2007; Ord. 199 §§ 4, 5, 2002; Ord. 126 § 2, Exh. A(part), 1990) SECTION 8. Table 18.10.040, "Site Development Standards," of Chapter 18.10 (Residential Districts) of Title 18 (Zoning) of the Grand Terrace Municipal Code is hereby amended to establish development standards for the R3-40 High Density Multiple Family Residential District, including standards related to density, setbacks, building height, open space, and other site design requirements. The final adopted version of Table 18.10.040 shall read as follows:

18.10.040 Site development standards.

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

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TABLE 18.10.040

RESIDENTIAL BUILDING SITE DEVELOPMENT STANDARDS
Development Feature RH R1-20 R1-10
R1-

7.2 R2-10 R3-12 R3-20 R3-40h
Lot Area1 _
a 20,00
0 10,00
0 7,200 10,00
0 12,000 12,00
0 5,500
Lot Area (Small Lot Subdivision)1 _
a 1,200 1,200 1,200 600 600 600 600
Lot Width2 _
a 100 60 60 60 60 60 50
Lot Depth2 _
a 150 100 100 100 100 100 90
Front Yard Setback2 _
a 25b 25b 25b 25b 25b 25b 15b
Rear Yard Setback2 _
a 35b 35b 20b 20b 20b 20b 15b
Side Yard Setback2 _
a _b _b _b _b _b _b _b
Setback from Single Family Zone for
Portion of Multiple Family Building over
25 Feet in Height2
_
a
- - - - - - 20k
Density3 _
a 1-2 1-4 1-5 1-9 1-12c 13-
20c
20-40c
Density3 (Small Lot Subdivision) _
a
- - - - - - -
Living Area (Minimum square feet)
Single Family _
a 1,350
d
1,350
d
1,350
d
1,350
d
1,350d- -
Duplex, Triplex, Four-plex and
Multiple Family
_
a
- - - - - _
g
-
Height4 _
a 35 35 35 35 35 35 45
Lot Coverage (Maximum percent) _
a 40 50 50 60 60 60 75
Distance Between Buildings2 _
a 5 5 5 10 10 10 10
Private Open Space1 _
i _i _i _i _i _i _i 50 sf/du
for not less
than
twentyfive
percent
(25%) of
total units i
Common Open Space _
i _i _i _i _i _i _i 50 sf/du i
Footnotes:
1 Minimum Square Feet
2 Minimum Linear Feet
3 Residential Dwelling Units per Gross Acre not counting any density bonus 4 Maximum Linear Feet

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a. A specific plan shall be required for all proposed projects (including tentative parcel or tract maps) which include any property located within this district, except that a specific plan shall not be required for existing parcels that are one acre or less in size, are readily served by existing infrastructure, have public access, and fire services can be readily provided. Such specific plan shall establish site development standards on a project by project basis in consideration of the existing topography and other physical constraints.

The specific plan shall not create a density greater than one (1) dwelling unit per gross acre and shall be consistent with the City's General Plan. The specific plan may consider a clustered development concept in order to preserve large areas of open space and minimize the project's impact on the physical environment. b. The following apply to front, rear and side yard requirements as noted:

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

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

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

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

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

6. No portion of any multiple family building over 25 feet in height shall be closer than 20 feet to a property line abutting a single family zone. c. A density bonus shall be permitted in accordance with the California Government Code and this Title.
d. For the purposes of this Chapter, the following terms shall be defined as follows:
"Living area" means the enclosed area of a residential dwelling unit, excluding porches, patios, carports, garages, storage areas or auxiliary rooms. "Multiple-family" means one- or two-bedroom units only. f. Not more than the permitted percent of the total parcel may be devoted to main and accessory structures, parking areas, driveways and covered patios. The remaining percent of the total parcel shall be devoted to open areas such as landscaping, lawn, outdoor recreational facilities, incidental to residential development, including swimming pools,

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

A(part), 1990)
SECTION 9. Table 18.10.041, "Required Setbacks for Accessory Structures," of Section 18.10.041, "Residential Supplemental Development Standards," of Chapter

18.10 (Residential Districts) of Title 18 (Zoning) of the Grand Terrace Municipal Code is hereby added to establish setback requirements applicable to accessory structures associated with residential uses. The final adopted version of Table 18.10.041 shall read as follows:

18.10.041 Residential supplemental development standards.

A. Accessory uses and structures.

1. Required setbacks.

Table 18.10.041
Required Setbacks For Accessory Structures
Accessory Structure Type of Setback
Minimum Required
Setback
(Single Family)
Minimum
Required Setback
(Multiple Family)

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Interior side yarda,b 5 feet -
Street side yard 5 feet -
Rear yard 5 feet -
Patio covers, gazebos,
storage
shedsd, e, stationary
barbecues, gas
fireplaces, gas fire pits,
canopies and similar
structures
Between structures
over 120 square feet
of area
6 feet -
Interior side yard 5 feet 5 feet
Street side yard 5 feet 5 feet
Rear yard 15 feet 15 feet
Enclosed patios
Rear yard when
backing up to an
arterial roadway,
railroad right-of-way,
Southern California
Edison right-of-way,
County flood control
channel, or
nonresidential zoned
property
10 feet 10 feet
Interior side yard 5 feet 5 feet
Street side yard 5 feet 5 feet
Workshops
Rear yard 10 feet 10 feet
Front setback – above
yard area
15 feet 15 feet
Front setback – front
entry garagec
23 feet 23 feet
Interior side yard 10 feet 10 feet
Street side yard 5 feet 5 feet
Rear yard 15 feet 15 feet
Balconies
Rear yard when
backing up to a street,
railroad right-of-way,
Southern California
Edison right-of-way,
County flood control
channel, or
nonresidential zoned
property
10 feet 10 feet
Interior side yard 5 feet 5 feet
Street side yard 10 feet 10 feet
Rear yard 5 feet 5 feet
Swimming pool
Front yard 15 feet 15 feet

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Notes:
a. On lots with only one side yard, the minimum required side setback for patio covers shall be three (3) feet.
b. Condominiums and townhouses shall have a minimum side yard setback of three (3) feet for patio covers.
c. For side entry garages, setback to be determined by City Council at the time of Site and Architectural Review or amendment to Site and Architectural approval. d. Storage sheds requiring building permit per California Building Code Section 105.1 must adhere to zoning setbacks. Storage sheds exempt from building permits per the California Building Code Section 105.2 are exempt from zoning setback requirements. e. The total number of exempt storage sheds allowed on a single-family district lot shall not exceed four hundred eighty (480) square feet of total aggregate area.

2. Maximum height for an accessory structure.

Table 18.10.050-2
Maximum Height For Accessory Structures
Accessory Structure Maximum Height
Patio covers and gazebos 12 feet
Storage sheds and similar structures 8 feet
Workshops 12 feet
Stationary barbecue, gas fireplaces, and gas fire pits 8 feet Canopies 10 feet

3. Specific accessory structure development standards.
a. Balconies or decks for single-family structures.
i. Outside stairway. There shall be no outside stairway in single-family districts.
ii. Screen or guardrail. A minimum thirty-six (36) inch high screen or guardrail shall be constructed of materials compatible with the design of the structure.
iii. Screen wall. A screen wall, a minimum of six (6) feet in height, shall be constructed on both sides (ends) of the balcony or deck for the full depth of the balcony or deck or as required by the conditions of approval. This requirement may be waived by the Planning and Community Development

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Director where it is clear that the balcony will not negatively impact adjacent residential properties.
iv. Maximum size. The maximum size of a balcony or deck shall be one hundred twenty (120) feet square feet.
v. Doors. There shall be no outside doors above the first story except when allowed with an approved balcony or deck.
vi. Enclosure. Balconies or decks shall not be enclosed except by the adjoining residential unit and any required screen walls.
b. Patio covers. Patio covers shall not cover more than fifty percent (50%) of the required rear yard area.
c. Storage sheds. Storage sheds shall not exceed one hundred twenty (120) square feet in area. Permanent electrical service shall not be allowed within storage sheds.
d. Workshops.
i. Minimum/maximum. Workshops shall have a minimum area of one hundred twenty (120) square feet and not exceed a maximum area of four hundred (400) square feet.
ii. Habitable area. Workshops shall not contain any habitable areas and shall not be used for habitation of humans.
iii. Enclosure. Workshops shall be fully enclosed and shall contain at least one (1) door not less than thirty-two (32) inches in width and may contain no interior walls. If greater than two hundred (200) square feet, workshops shall contain a window with a minimum dimension of twenty-four (24) inches by thirty-six (36) inches.
iv. Permit. Building permits are required for workshops. v. Separation. Workshops shall be located at least ten (10) feet from any portion of a residential structure.
e. Canopies.
i. Location. Canopies are not to be permitted in the front yard area or visible from the public-right-of-way.
ii. Maintenance. Canopies shall be maintained and remain in good condition at all times.
iii. Temporary permitted use. Canopies may be located in a front yard area or be visible from the public right-of-way for up to seventy-two (72) hours, with a temporary use permit.

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18.10.060 Mechanical Equipment
A. Mechanical equipment.

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

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

3. Chimney structures.
a. Chimney structures that are incorporated within or affixed to the exterior of a residential structure shall be enclosed within a chassis and finished with brick, rock, stucco, or wood/metal siding. All materials, except for brick and rock, used for the chimney are required to be painted with colors that are compatible with the residence and any other chimney structure on the residence. b. Round metal pipes, clay pipes, guy wires, and straps for chimneys shall be fully enclosed within the chassis and shall not be visible from the property line. c. Gas vent pipes and other mechanical ducts that are less than six (6) inches in diameter when leaving the interior of the structure are exempted from these requirements.

SECTION 10. Section 18.76.040 "Nonconforming Buildings" of Chapter 18.76 – NONCONFORMING USES AND BUILDINGS of the Grand Terrace Municipal Code is hereby amended to read in its entirety as follows:
“Chapter 18.76 NONCONFORMING USES AND BUILDINGS
Sections:

18.76.010 Purpose.

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

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Created: 2025-08-06 12:43:11 [EST]
(Supp. No. 15)

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Grand Terrace City CouncilJune 23, 2026

Grand Terrace City Council
June 23, 2026