Highland City Council
September 13, 2022

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4. Pursuant to the Political Reform Act, a person holding a designated position listed in this Conflict of Interest Code that violates any provisions of this Code is subject to administrative, criminal and civil sanctions provided in the Political Reform Act. In addition, if a person who holds a designated position makes, participates in making or otherwise attempts to use his or her official position to influence a decision of the Agency in which he or she has a financial interest, he or she may also be subject to additional administrative, criminal and civil sanctions and the decision may be set aside and voided pursuant to Government Code Section 91003.

PASSED, APPROVED AND ADOPTED this 13th day of September, 2022.

Larry McCallon
Mayor
ATTEST:

Betty Hughes, MMC
City Clerk
Resolution No. 2022-

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APPENDIX A

DESIGNATED EMPLOYEE FILERS

DESIGNATED EMPLOYEE FILERS DISCLOSURE CATEGORIES
Administrative Analyst 3, 4, 5
Administrative Services Manager 3, 4, 5
Assistant City Manager 1
Assistant Community Development Director 1
Assistant Engineer 3, 4, 5
Assistant Public Works Director 1
Building Official 1
City Clerk 3, 4, 5
City Planner 1
Code Compliance Officer 2, 3, 4, 5
Committee/ Board Members 1
Community Development Director 1
Consultants See Appendix C
Deputy City Clerk 3, 4, 5
Economic Development Specialist 2, 3, 4, 5
Maintenance Superintendent 3, 4, 5
Public Services Manager 3, 4, 5
Public Works Manager 3, 4, 5
Public Works Director/ City Engineer 1
Senior Code Compliance Officer 2, 3, 4, 5
The Members of City Council and Planning Commission, City Manager, City Attorney, Director of Administrative Services/ City Treasurer and all other City Officials who manage public investments as defined by 2 Cal. Code of Regs. § 18701 ( b) are not subject to the City' s Code but are subject to the disclosure requirements of the Act.

Government Code Section 87200 et. seq.). [ Regs. § 18730( b)( 3)].

Resolution No. 2022-

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APPENDIX B

DISCLOSURE CATEGORIES
The disclosure categories listed below identify the types of investments, business entities, sources of income, or real property, which the Designated Employee must disclose for each disclosure category to which he or she is assigned.

Category 1. Full Disclosure — Interests in real property located within the City or within two miles of the boundaries of the City or within two miles of any land owned or used by the City, as well as investments, business positions and sources of income, including gifts, loans and travel payments.

Category 2. Reportable interests in real property in the jurisdiction. ( Form 700, Schedule B)
Category 3. Reportable income and business positions. ( Form 700, Schedule C) Category 4. Reportable investments. ( Form 700, Schedules A- 1 and A-2) Category 5. Reportable gifts and travel gifts. ( Form 700, Schedules D and E) Resolution No. 2022-

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DESIGNATED CONSULTANTS

APPENDIX C

CONSULTANT FILERS'

DISCLOSURE CATEGORIES
Consultants who make ( not just recommend)
governmental decisions, such as whether to
approve a rate, rule, or regulation, whether to
issue, deny, suspend, or revoke any permit,
license, application, certificate or similar
authorization, adopt or grant City approval to a
plan, design, report, study, or adopt or grant City
approval of policies, standards, or guidelines for
the City or any subdivision thereof.
1 Consultants who serve in a staff capacity with the Disclosure required at the same level as a City, and in that capacity participate in making a comparable designated position in the same or governmental decision by providing information,
an opinion, or a recommendation for the purpose
of affecting the decision without significant
intervening substantive review.
similar City Department identified elsewhere in this
Code.

Consultants who perform the same or Disclosure required at the same level as the substantially all the same duties for the City that comparable designated position identified would otherwise be performed by an individual
holding a designated position in the City' s Conflict
of Interest Code.
elsewhere in this Code.

Category 1
Designated consultants assigned to this category shall disclose:
a) All business entities or non- profit corporations in which they are a director, officer, partner, trustee, employee or hold a position of management; interests in real property, investments; and income, including gifts, loans and travel payments. 2 b) When the consultant is a corporation or partnership, only individuals from the firm that fit into one of the three categories of designated consultants must file disclosure statements.

Only consultants who make a governmental decision or act in a staff capacity as defined in 2 Cal. Code Regs.

Section 18701, as amended from time to time, shall be subject to economic disclosure requirements. 2 Consultants who make governmental decisions shall disclose pursuant to the broadest disclosure category in the Code subject to the following limitation:

The City Manager may determine in writing that a particular consultant, although a " designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in the section. Such written determination shall include a description of the consultant' s duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager's determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code.

Resolution No. 2022-

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2022 Local Agency Biennial Notice
Name of Agency.

Mailing Address:

Contact Person: Phone No
Email: Alternate Email.

Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency' s code includes disclosure by those agency officials who make or participate in making governmental decisions.

This agency has reviewed its conflict of interest code and has determined that ( check one BOX):

An amendment is required. The following amendments are necessary:

Check all that apply.)
Include new positions
Revise disclosure categories
Revise the titles of existing positions
Delete titles of positions that have been abolished and/ or positions that no longer make or participate in making governmental decisions
Other ( describe)
The code is currently under review by the code reviewing body.

No amendment is required. ( If your code is over five years old, amendments may be necessary.)
Verification ( to be completed if no amendment is required) This agency' s code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302.

Signature of Chief Executive Officer Date
All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 3, 2022, or by the date specified by your agency, if earlier, to:

PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE)
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.
www. fooc. ca. gov
FPPC Advice: advice( a fooc. ca. gov ( 866. 275. 3772)

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STAFF REPORT

TO THE CITY COUNCIL
MEETING DATE: September 13, 2022
FROM: Joseph A. Hughes, City Manager
REVIEWED BY: Carlos Zamano, Public Works Director/ City Engineer Gi PREPARED BY: Jay Tuttle IV, Assistant Engineer
SUBJECT: Resolution No. 2022- Summary Vacation of the westerly portion of Atlantic Avenue right-of-way. ( Johnny Ghazal/ SUM 021- 001), and Grant Deed from City of Highland to Johnny Ghazel to relinquish the northwest corner -cut-off portion of the right-of-way, at Atlantic Avenue and Boulder Avenue, owned in fee by the City, formerly owned by Caltrans.

RECOMMENDATION: ( 1) Adopt Resolution No. 2022- ordering the summary vacation of a portion of street right- of-way located on Atlantic Avenue west of Boulder Avenue; ( 2) Approve grant deed to transfer the northeast corner -cut- off portion of right- of-way at Atlantic Avenue and Boulder Avenue to Johnny and Richelle Ghazal Living Trust; and ( 3) direct the City Clerk to record the Summary Vacation Resolution and Grant Deed.

FISCAL IMPACT: None
PUBLIC NOTICE: The agenda for this item was posted at the three locations per Resolution No. 2011- 047 and on the City' s website.

BACKGROUND: Johnny and Richelle Ghazal are the owners of the vacant property located at the northwest corner of Atlantic Avenue and Boulder Avenue, designated as APN 1200- 071- 20, on the Assessor's Parcel Maps. Mr. Ghazal has applied to the City for vacating and acquiring by Grant Deed, the portions of a " paper street" of Atlantic Avenue, adjacent to his property, as shown on the attached plats, that are not needed for public or utility use. A paper street is a road or street that appears on maps but has no physical street improvements and is not utilized for ingress/ egress. The excess right- of-way, once vacated and relinquished, will increase the size of this parcel, and make it viable for future development by the owner.

Approved Motion Second Agenda Item No. / 1
Denied Ayes
Continued Noes
Tabled Abstain
i Absent
1 City Clerk
File No.
-1-
BACKGROUND, CONTINUED: The southerly portion of the Atlantic Avenue right-of-way, south of centerline, west of Boulder Avenue, is located within the City of San Bernardino and they have indicated in writing that they have no objection with this proposed right- of-way vacation/ relinquishment.

In addition, the various public utilities which serve the City of Highland, have been notified by the property owner. The public utilities have responded in writing that no aerial nor underground utility facilities currently exist within the portions of the Atlantic Avenue right-of-way to be vacated/ relinquished. No request was made to reserve and except from the noted vacation/ relinquishment, a permanent easement upon, under, over and across the vacation/ relinquishment for future utility purposes.

It is the City' s standard practice to vacate excess street right- of-way that is not needed for public use in conjunction with new/future development projects. Since incorporation, the City has vacated street rights -of -way at more than 20 locations. At most of these locations, the City only held a road easement over the area where the City vacated the street right- of-way. In a few locations, the City owned the land in fee title. Vacating and relinquishing excess right- of-way is a good practice as it reduces the City' s liability and maintenance costs.

Attachments: ( 1) Vicinity Map
2) Aerial Map
3) Assessor' s Parcel Map
4) Summary Vacation Resolution with Legal Description & Plat 5) Grant Deed with Legal Description & Plat
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PROPOSED AREA TO BE

VACATED/ RELINQUISHED
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RECORDING REQUESTED BY

BETTY HUGHES, AND
WHEN RECORDED MAIL TO:

CITY CLERK

CITY OF HIGHLAND
27215 BASE LINE
HIGHLAND, CA 92346

SPACE ABOVE THIS LINE FOR RECORDER' S USE
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIGHLAND

ORDERING THE SUMMARY VACATION OF THE NORTHERLY PORTION OF ATLANTIC

AVENUE RIGHT-OF-WAY, WEST OF BOULDER AVENUE, PURSUANT TO THE AUTHORITY PROVIDED BY CHAPTER 4, PART 3, DIVISION 9, OF THE

STREETS AND HIGHWAYS CODE
WHEREAS, Atlantic Avenue right-of-way was originally dedicated by Road Deed, filed under Document Number RD 5, 84/ 85, recorded April 9, 1890, in Book 5, pages 84 & 85, Official Records of San Bernardino County, California.

WHEREAS, the City Council has given its consideration for the summary vacation of a portion of Atlantic Avenue right-of-way; and
WHEREAS, it has been determined by the City Council to vacate a portion of Atlantic Avenue right-ofway, pursuant to the authority provided by Chapter 4, Part 3, Division 9, of the Streets and Highways Code of the State of California.

NOW, THEREFORE, IT IS HEREBY ORDERED that portion of said street lawfully or officially known as Atlantic Avenue described as follows:

SEE EXHIBITS " A" AND " B" ATTACHED HERETO AND MADE PART HEREOF is hereby vacated.

BE IT FURTHER ORDERED that from and after the date the resolution is recorded, Atlantic Avenue right- of-way no longer constitutes land for Public Streets pursuant to Chapter 4, Part 3, Division 9, of the Streets and Highways Code.

L:\Engineering_ Backup\ 030173060 - Atlantic Ave Vacation - Ghazal\ 3060 11 Atlantic Ave Vacation Resol drft.doc -6-
BE IT FURTHER ORDERED that the City Clerk shall cause a certified copy of this Resolution of Summary Vacation, attested by the Clerk under seal, to be recorded without acknowledgment, certificate of acknowledgment, or further proof, in the office of the Recorder of the County of San Bernardino.

APPROVED AND ADOPTED this 13th day of September 2022.

Larry McCallon
Mayor
ATTEST:

Betty Hughes, MMC
City Clerk
L:\Engineering_ Backup\ 030173060 - Atlantic Ave Vacation - Ghazal\ 3060 11 Atlantic Ave Vacation Resol fm.doc -7-
EXHIBIT " A"

LEGAL DESCRIPTION

ATLANTIC AVENUE VACATION

THAT PORTION OF ATLANTIC AVENUE IN THE CITY OF HIGHLAND, COUNTY OF SAN BERNARDINO, STATE

OF CALIFORNIA, LYING WITHIN THE SOUTHEAST CORNER OF THE NORTHWEST CORNER OF THE NORTHEAST CORNER OF SECTION 33, TOWNSHIP 1 NORTH, RANGE 3 WEST, S. B. M., DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF SAID ATLANTIC AVENUE WITH THE SOUTHERLY PROLONGATION OF THE WESTERLY RIGHT OF WAY LINE OF BOULDER AVENUE ( 25. 00 FEET HALF -WIDTH); THENCE SOUTH 89° 46' 05" WEST, ALONG SAID CENTERLINE OF ATLANTIC AVENUE, A DISTANCE OF 74. 98 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 89° 46 05 WEST, ALONG SAID CENTERLINE OF ATLANTIC AVENUE, A DISTANCE OF 210. 69 FEET TO ITS INTERSECTION WITH THE SOUTHEASTERLY RIGHT OF WAY LINE OF STATE HIGHWAY 330 AS SHOWN ON STATE RIGHT OF WAY MAP NO. 49307- 04; THENCE ALONG SAID RIGHT OF WAY LINE NORTH 68°46' 44" EAST, A DISTANCE OF 55. 84 FEET TO THE NORTHERLY RIGHT OF WAY LINE OF SAID ATLANTIC AVENUE ( 20. 00 FEET HALF -WIDTH); THENCE ALONG SAID NORTHERLY RIGHT OF WAY LINE NORTH 89° 46' 05" EAST, A DISTANCE OF 158. 56 FEET; THENCE SOUTH 00° 13' 55" EAST, A DISTANCE OF 20. 00 FEET TO THE TRUE POINT OF BEGINNING.

THE AREA OF THE ABOVE DESCRIBED PROPERTY IS 3, 692 SQUARE FEET, MORE OR LESS.

ALL AS SHOWN ON EXHIBIT " B1" ATTACHED HERETO AND MADE A PART THEREOF. THIS LEGAL DESCRIPTION WAS PREPARED BY ME OR UNDER MY

SUPERVISION
HENRY C. POQUIZ, LS 6
-8-

JURISDICTIONAL

BOUNDARY

JURISDICTIONAL

BOUNDARY
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CITY OF HIGHLAND
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ATLANTIC AVENUE VACATION)

CITY OF HIGHLAND
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IMPROVEMENT)
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-9-
RECORDING REQUESTED BY:

BETTY HUGHES
WHEN RECORDED MAIL TO:

CITY CLERK

CITY OF HIGHLAND
27215 BASE LINE
HIGHLAND, CA 92346

SPACE ABOVE THIS LINE FOR RECORDERS USE

GRANT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the City of Highland, a Municipal Corporation
Hereby GRANT(S) to The Johnny and Richelle Ghazal Living Trust, that real property in the City of Highland, County of San Bernardino, State of California, described as:

SEE EXHIBITS " A" AND " B" ATTACHED HERETO AND MADE A PART HEREOF DATED:

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

STATE OF CALIFORNIA }

COUNTY OF SAN BERNARDINO
On , before me, , Notary Public,
personally appeared
who proved to me on the basis of satisfactory evidence to be the person( s) whose name( 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
This Area for Official Notary Seal)
L:\ Engineering_ Backup\ 030173060 - Atlantic Ave Vacation - Ghazal\ 3060 11 Atlantic Ave ROW GD City to Ghazal. docx -10-
EXHIBIT " A"

LEGAL DESCRIPTION

ATLANTIC AVENUE
THAT PORTION OF ATLANTIC AVENUE CONVEYED BY GRANT DEED # 5336, RECORDED IN BOOK 3355, PAGE 323, LOCATED IN THE CITY OF HIGHLAND, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,

LYING WITHIN THE SOUTHEAST CORNER OF THE NORTHWEST CORNER OF THE NORTHEAST CORNER OF SECTION 33, TOWNSHIP 1 NORTH, RANGE 3 WEST, S. B. M., DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE CENTERLINE OF SAID ATLANTIC AVENUE WITH THE SOUTHERLY PROLONGATION OF THE WESTERLY RIGHT OF WAY LINE OF BOULDER AVENUE ( 25. 00 FEET HALF - WIDTH); THENCE SOUTH 89° 46' 05" WEST, ALONG SAID CENTERLINE OF ATLANTIC AVENUE, A DISTANCE OF 49. 98 FEET; THENCE NORTH 00° 13' 55" WEST, A DISTANCE OF 20.00 FEET TO THE NORTHERLY RIGHT OF WAY LINE OF SAID ATLANTIC AVENUE ( 20. 00 FEET HALF -WIDTH); THENCE NORTH 44° 38' 37" EAST, A DISTANCE OF 70.50 FEET TO ITS INTERSECTION WITH THE WESTERLY LINE OF SAID BOULDER AVENUE; THENCE ALONG SAID WESTERLY LINE SOUTH 00°25' 29" EAST, A DISTANCE OF 69. 96 FEET TO THE POINT OF BEGINNING.

THE AREA OF THE ABOVE DESCRIBED PROPERTY IS 2, 246 SQUARE FEET, MORE OR LESS.

ALL AS SHOWN ON EXHIBIT " B2" ATTACHED HERETO AND MADE A PART THEREOF.

THIS LEGAL DESCRIPTION WAS PREPARED BY ME OR UNDER MY SUPERVISION HENRY C. POQUIZ, LS 604 DATE
-11-

JURISDICTIONAL

BOUNDARY

JURISDICTIONAL

BOUNDARY
P. O. B.

CITY OF HIGHLAND
4 CITY OF SAN BERNARDINO
SEC. 33, T. 1 N., R. 3 W., S. B. M.
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ATLANTIC AVENUE)

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BOULDER AVENUE

IMPROVEMENT)

E' LY RIGHT OF WAY
-12-
DATE:

FROM:

REVIEWED BY:

STAFF REPORT

TO THE CITY COUNCIL
September 13, 2022
Joseph A. Hughes, City Manager
Lawrence A. Mainez, Community Development Director &
Kim Stater, Assistant Community Development Director
PREPARED BY: Ash Syed, Associate Plann
SUBJECT: Selection of an Event Date and Budget for the 25th Annual Citrus Harvest Festival
RECOMMENDATION: The Historic and Cultural Preservation Board recommends the City Council:

1. Select March 25, 2023, as the Event Date for the Citrus Harvest Festival with a Rain Date of April 1, 2023; and

2. Adopt the Budget
FISCAL REVIEW: The Festival Account has a balance of $1, 970. 98. Separately, the Home tour Account has a balance of $ 1, 639. 91. All expenses from the prior year have been paid and these funds are available to utilize.

Attached is Budget for the 2023 Citrus Harvest Festival ( Attachment 1). Expenses are estimated to be $ 14, 533 while expected revenues are $ 14, 800.

The Budget does not reflect a Rain Date contingency or Staff' s time. Costs associated with a Rain Date are approximately $ 5, 000 for re -advertising, vendor cancellations and modifications to entertainment and paid demonstrators.

Traditionally, staff time is not charged to the CHF fund. Planning, Public Works and Finance Departments spend many hours on the event. Personnel costs are estimated at $ 18, 000.

Approved Motion Second Agenda Item No. / L2
Denied Ayes
Continued Noes
Tabled Abstain
Absent
File No.

City Clerk City Manager
-1-
PROJECT REVIEW: Consistent with the traditional citrus harvesting seasons, the Board recommends the Festival be held on March 25, 2023, with a Rain Date the following week, April 1, 2023.

ATTACHMENTS: 1) Budget for 2023 Citrus Harvest Festival -2-
Attachment 1:

Budget for 2023 Citrus Harvest Festival
-3-
2023 Citrus Harvest Festival Draft Budget

FESTIVAL EXPENDITURES
Item / Description Budget
Advertising ( HCN $ 0, RDF/ Sun $ 1, 225, EHR $ 535 & Peach Jar $ 518) Radio — Hot 103. 9 $ 1, 200
2, 278
Historic Demonstrators/ Exhibitors ( 17 x $ 200 ea) 3, 400 Entertainment ( Bands & DJ) ( School Bands $ 200, Highland Music Co. 1, 300)
1, 500
Balloons street decorations 1, 200
Insurance 1, 800
Street Banner over Base Line ( date modification) 300
Portable toilets 1, 000
Posters, Flyers, print marketing materials 450
Mobile Stage ( Towing) 400
Paper materials, copying, postage 500
Tables w/ umbrella & chairs for food court & stage area 830 Signs for parking & festival activities 0
Contest ribbons & plaques 240
Kid' s activities 100
Booth refunds for historic displays
CHF Honoree plaque 310
Miscellaneous supplies 50
Staff shirts ( 5) 75
Contest materials 100
TOTAL 14, 533

FESTIVAL REVENUES
Item / Description Budget
Sponsorship 11, 000
Direct Sales vendor Booth spaces ( 70 x $ 40) ( 69 in 2022) 2, 800 Food vendor booth spaces ( 5 x $ 200) ( 4 in 2022) 1, 000 TOTAL 14, 800
Initial Balance: $ 1, 971 Projected Balance: $ 2, 238
-4-
2022 Home Tour Draft Budget

HOME TOUR EXPENDITURES
Item / Description Budgeted
Brochure 25
Flowers 125
Fee paid to property owners for participation 300
Shoe covers 50
TOTAL 500

HOME TOUR REVENUES
Item / Description Budgeted
Sponsors 350
Home Tour ticket sales 0
TOTAL 350
Initial Balance: $ 1, 639. 91 Projected Balance: $ 1, 489. 91 -5-
DATE:

FROM:

STAFF REPORT

TO THE CITY COUNCIL
September 13, 2022
Joseph A. Hughes, City Manager
REVIEWED BY: Lawrence A. Mainez, Community Development Director & Kim Stater, Assistant Community Development Director
PREPARED BY: Ash Syed, Associate Planne
SUBJECT:

LOCATION:

Second Reading of Specific Plan Revision ( SPR 22- 001) Ordinance No. 455 of the City of Highland proposing an
amendment to the Greenspot Village & Marketplace Specific Plan ( SPR 06- 001A) to increase the maximum dwelling count from 700 to 746 within Planning Area 2 and the total buildout number from 800 to 946 for the overall Specific Plan.

A vacant area of approximately 25 acres located on the north side of Greenspot Road between the SR 210 and Boulder
Avenue. Assessor' s Parcel Number: 1201- 341- 30
APPLICANT: Alliance Residential California
RECOMMENDATION: The City Council conduct a second reading of Specific Plan Revision ( SPR 22-001): Ordinance No. 455 amending the
Greenspot Village & Marketplace Specific Plan ( SPR 06- 001A) to increase the maximum dwelling count range from 500- 700 to 500-746 within Planning Area 2 and the total buildout number from 800 to 946 for the overall Specific Plan.

PREVIOUS ACTION: On August 9, 2022, the City Council held a public hearing for the Alliance Residential Complex within Planning Area 2 of the Greenspot Village & Marketplace Specific Plan. The Council adopted Resolution No. 2022- 042, approving Design Review Application ( DRA 22- 004) for the Site Plan, Landscape Plan, Grading Plan, and Building Elevations for a 546- unit apartment complex on approximately 25 acres of vacant land located on the north side of Greenspot Road between the SR 210 and Boulder Avenue.

Approved
Denied
Continue
G
Motion
Ayes
Noes
Abstain
Absent
Second Agenda
Item No.

File No.

City Clerk City Ma
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City Council Hearing of SPR 22- 001
September 13, 2022
The City Council also introduced Ordinance No. 455 to amend the Greenspot Village & Marketplace Specific Plan ( SPR 06- 001) to increase the maximum dwelling count range from 500- 700 to 500- 746 within Planning Area 2 and the total buildout number from 800 to 946 for the overall Specific Plan.

ATTACHMENTS:
1) Ordinance No. 455
Exhibit 1: Proposed Specific Plan Amendments
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Attachment 1:

Ordinance No. 455
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ORDINANCE NO. 455

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF HIGHLAND, CALIFORNIA, AMENDING THE

GREENSPOT VILLAGE & MARKETPLACE SPECIFIC
PLAN ( SPR 06- 001A) AND MAKING A DETERMINATION

THAT THE ADOPTION OF THIS ORDINANCE IS EXEMPT

FROM FURTHER CEQA REVIEW UNDER CEQA
GUIDELINES SECTION 15162, PUBLIC RESOURCES
CODE SECTION 21666 AND GOVERNMENT CODE
SECTION 65457.

APPLICANT: ALLIANCE RESIDENTIAL CALIFORNIA
WHEREAS, on March 17, 2022, the Applicant submitted a Specific Plan Revision application for the Greenspot Village & Marketplace Specific Plan; WHEREAS, the applicant is proposing to increase the maximum dwelling count from 500- 700 to 500- 746 within Planning Area 2 and the total buildout number from 800 to 946 for the whole Specific Plan ;
WHEREAS, the approximate 38. 6 acre portion of the Greenspot Village & Marketplace Specific Plan north of Greenspot Road and West of Boulder Avenue is referred to as Planning Area 2;
WHEREAS, the Planning Commission did hold a duly noticed public hearing on July 5, 2022, at 6: 00 P. M. to consider the environmental review and the proposed ordinance. At the conclusion of the public hearing, the Planning Commission adopted Resolution No. 2022- 013, recommending to the City Council to introduce an ordinance to amend the Greenspot Village & Marketplace Specific Plan ( SPR 06- 001A); WHEREAS, the City Council did hold a public hearing on August 9, 2022, at 6: 00 P. M. with a second reading held on September 13, 2022, and notice of said public hearing( s) having been duly given, as required by law and in accordance with the provisions of the Highland Municipal Code, to hear and consider evidence for and against said Greenspot Village & Marketplace Specific Plan, and investigate the findings and recommendations in connection therewith; and amend said Specific Plan.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF HIGHLAND does ordain as follows:

Section 1. Findings and Intent
The findings and recitals set forth herein above are true and correct. -4-
Section 2. General Plan Consistency Finding
The Specific Plan amendment is consistent with the General Plan as the General Plan designation for this area is Planned Development. The proposed Specific Plan Revision to the overlaying Greenspot Village & Marketplace Specific Plan increases the maximum dwelling unit count range from 500- 700 to 500- 746 within Planning Area 2 and increases the total buildout number from 800 to 946 for the entire Specific Plan in order to satisfy the minimum density of 20 du/ ac within established for Planning Area 2.

Section 3. Specific Plan Revision
Based upon the aforementioned findings, the City Council hereby makes the following amendments to the Greenspot Village & Marketplace Specific Plan ( SPR 06- 001A):

1. The " 800 units" will be modified to " 946 units" on pages 5, 19, 20, 21, 22, 23, 24, 25, 26, 29, 31, 72, and 269.

2. The " 700 units" will be modified to " 746 units" on page 20, 24, 26, and 31.

3. The conceptual site plan on page 33 will incorporate the proposed 546 multifamily home layout in Planning Area 2.

Section 4. Findings of Fact for Specific Plan Revision ( SPR 22- 001) a. The proposed amendment is consistent with the goals, objectives, policies, and programs of the general plan, or the general plan as revised by the proposed amendment, and will not result in any inconsistencies within the plan:

Response: Currently, the Specific Plan calls for a density of 20- 30 du/ac and 18- 40 du/ ac within Planning Areas 2 and 3, respectively, while permitting a a maximum of 500- 700 units and 100- 300 units in Planning Areas 2 and 3, respectively. At the moment, there is an approved 200- unit Multi - Family residential complex within Planning Area 3 by Rexco Development and an additional 200 Multi -Family residential units approved for construction in Planning Area 2 by TREH Partners, LLC. With the current cap at 800 units, the Specific Plan only allows for the construction of an additional 400 residences, well below the 500 required to satisfy the minimum density of 20 du/ ac established for Planning Area 2.

By amending the maximum dwelling unit count range from 500- 700 to 500- 746 within Planning Area 2 and increasing the total buildout number from 800 to 946 for the entire Specific Plan, the Applicant will be able to adequately size 546 dwelling units onto the 25 acre parcel and satisfy the Greenspot Village & Marketplace Specific Plan development standards.
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b. The proposed amendment will not adversely affect the public health, safety or general welfare.

Response: The proposed project has been reviewed by Planning, Engineering, Building and Safety, the Fire Department and the Police Department and certain conditions of approval that are necessary and proper to safeguard and protect the public health, safety, and welfare have been implemented. As aforementioned, the current number dwellings allowed to be constructed under the current cam of 800 dwellings within the Specific plan falls below the minimum density required to satisfy the High Density Residential Overlay encompassing Planning Area 2. That being the case, the approval of a Specific Plan Revision for the proposed project is will not adversely affect the public health, safety, or general welfare.
c. The proposed amendment is consistent with the purposes and intent of this title, unless such amendment proposes to change, supplement, or alter any part of this title, whereas, said amendment must be consistent with all of the applicable sections including these findings.

Response: Government Code section 65454 states that a Specific Plan may not be amended unless the amendment is consistent with the General Plan.

The Specific Plan amendment is consistent with the General Plan as the General Plan designation for this area is Planned Development. The proposed Specific Plan Revision to the maximum unit count within Planning Area 2 as well as the overall Greenspot Village & Marketplace Specific Plan simply allows for the established density that was analyzed in the two EIRs to be satisfied, avoiding the requirement for any further environmental review. d. The potential environmental impacts of the proposed amendment are insignificant or there are overriding considerations which outweigh the potential impacts.

Response: The Applicant seeks to amend the Specific Plan to increase the maximum dwelling unit count from 500- 700 to 500- 746 within Planning Area 2 and increases the total buildout number from 800 to 946 for the whole Specific Plan. As aforementioned, this will allow for the construction of a residential project within Planning Area 2 that is in compliance with the 20- 30 du/ ac density range than what was analyzed in the certified EIR in 2013 and Supplemental EIR in 2019. Considering that this proposed amendment will not affect the density of Planning Area 2, there will be no change to the estimated increase in residents/ consumers and traffic within the project area. As such, the scope of the project was previously analyzed and poses no potential environmental impacts.

Exhibit 1 attached includes the Proposed Specific Plan Amendments -6-
Section 5. Environmental Review
On May 14, 2013, the City Council adopted Resolution No. 13- 008, certifying the Environmental Impact Report for the Greenspot Village & Marketplace Specific Plan ENV 09- 003). The City Council more recently adopted Resolution No. 19- 036 on June 25, 2019, certifying the Supplemental Environmental Impact Report for the Greenspot Village & Marketplace Specific Pan ( ENV 19- 002). The City Council adopted Findings of Fact, the Mitigation Monitoring Reporting Program, and Statement of Overriding Considerations at the same time that it adopt the EIR and Supplement EIR. Resolutions No. 13- 008 and 19- 035 are incorporated herein by this reference as though set forth in full.

The Specific Plan Revision was analyzed in compliance with CEQA. It is hereby determined that the project is exempt from further environmental review under Government Code Section 65457 which provides that:
a) Any residential development project, including any subdivision, or any zoning change that is undertaken to implement and is consistent with a specific plan for which an environmental impact report has been certified after January 1, 1980, is exempt from the requirements of Division 13 ( commencing with Section 21000) of the Public Resources Code. However, if after adoption of the specific plan, an event as specified in Section 21166 of the Public Resources Code occurs, the exemption provided by this subdivision does not apply unless and until a supplemental environmental impact report for the specific plan is prepared and certified in accordance with the provisions of Division 13 ( commencing with Section 21000) of the Public Resources Code. After a supplemental environmental impact report is certified, the exemption specified in this subdivision applies to projects undertaken pursuant to the specific plan.

Public Resources Code Section 21166 and the corresponding CEQA Guidelines Section 15162 provide that when an environmental impact report has been prepared for a project pursuant to this division, no subsequent or supplemental environmental impact report shall be required by the lead agency or by any responsible agency, unless one or more of the following events occurs:
a) Substantial changes are proposed in the project which will require major revisions of the environmental impact report.
b) Substantial changes occur with respect to the circumstances under which the project is being undertaken which will require major revisions in the environmental impact report.
c) New information, which was not known and could not have been known at the time the environmental impact report was certified as complete, becomes available.

The Applicant seeks to amend the Specific Plan to increase the maximum dwelling unit count from 500- 700 to 500- 746 within Planning Area 2 and increases the total buildout number from 800 to 946 for the whole Specific Plan. As aforementioned, this will allow -7-
for the construction of a residential project within Planning Area 2 that is in compliance with the 20- 30 du/ ac density range than what was analyzed in the certified EIR in 2013 and Supplemental EIR in 2019. Considering that this proposed amendment will not affect the density of Planning Area 2, there will be no change to the estimated increase in residents/ consumers and traffic within the project area. As such, the scope of the project was previously analyzed and none of events identified in Public Resources Code Section 21666 or CEQA Guidelines Section 15162 have occurred that would trigger the need for further environmental review.

Section 6. Publication and Posting
Within fifteen ( 15) days following the passage of this Ordinance, the City Clerk shall publish an/or post this Ordinance as required by state law and City resolution.

Section 7. Execution
The Mayor is hereby directed to attest to the adoption of this Ordinance by signing where indicated below and the City Clerk shall publish and/ or post this ordinance according to applicable law.

PASSED, APPROVED and ADOPTED this 13th day of September, 2022 Larry McCallon, Mayor
ATTEST:

Betty Hughes, MMC
City Clerk
APPROVED AS TO FORM:

Maricela E. Marroquin
City Attorney
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Exhibit 1:

Proposed Specific Plan Amendments
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Greenspot Village & Marketplace Specific Plan
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STAFF REPORT
DATE:

FROM:

REVIEWED BY:

PREPARED BY:

SUBJECT:

RECOMMENDATION:

FISCAL IMPACT:

TO THE CITY COUNCIL
September 13, 2022
Joseph A. Hughes, City Manager
Carlos Zamano, Public Works Director/City Engineer
Melissa Morgan, Public Services Manager
The Coalition for Clean Air requests the City to participate in the 2022 California Clean Air Day on October 5, 2022
Staff recommends the City Council adopt a resolution to support and participate in the 2022 California Clean Air Day on October 5, 2022.

None.

PUBLIC NOTICE: Public notice is not required prior to the City Council taking action on this matter. However, the Agenda was posted at the three ( 3) locations within the City, as required by Council Resolution and on the City' s Website.

BACKGROUND: The California Clean Air Coalition was founded in 1971 and is California' s only statewide organization working exclusively on -air quality issues. From creating the idea for California' s original Smog Check program in 1981 to ensuring the first national ban on the toxic drycleaning chemical " perc" to helping pass legislation to put 1 million electric vehicles on California' s roads by 2025, CCA has paved the way for socially and environmentally responsible air policy nationally and worldwide.

California Clean Air Day is built on the idea that shared experiences unite people to action to improve our community health. By joining together for a unified day of action we can create new habits to clear the air for all members of California' s diverse communities. This year' s California Clean Air Day is October 5, 2022. Cities and local governments have the ability to lead their communities to a more breathable future. Cities, counties, school districts, water districts, and other local and special districts all have a responsibility to take action and inspire constituents and stakeholders.

Approved Motion Second Agenda Item No. 1
Denied Ayes
Continued Noes File No.

Tabled Abstain
Absent
City Clerk City Manager
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RESOLUTION NO. 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIGHLAND, CALIFORNIA, DECLARING OCTOBER 5, 2022 AS CLEAN AIR DAY
WHEREAS, Air pollution contributes to higher rates of cancer and heart and lung diseases, which adversely affect health; and
WHEREAS, California has some of the worst air quality in the United States; and WHEREAS, It is vital that we protect the health and well- being of our residents, visitors, and workforce; and
WHEREAS, Emissions from vehicles, industry, and even household sources significantly affects the natural environment, air quality and well- being of City of Highland residents; and
WHEREAS, Individual actions such as not idling vehicles, walking or biking to work and school, carpooling, and conserving energy can directly improve air quality in our region; and
WHEREAS, State, County and local employees, vendors and elected officials have tremendous power to help lower emissions; and
WHEREAS, Pledges by individuals have shown to result in action; and WHEREAS, Education about air quality can raise community awareness, encourage our community to develop better habits, and improve our community health; and WHEREAS, Californians will be joining together across the state to clear the air on October 5, 2022; and
WHEREAS, the City of Highland is committed to the health of our residents, workforce, visitors, and community at large;
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Highland that October 5, 2022 be declared " Clean Air Day" in the city; and be it further RESOLVED, That we encourage all residents, businesses, employees, and community members to participate in Clean Air Day and help clear the air for all Californians.

Resolution No. 2022-

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PASSED, APPROVED AND ADOPTED this 13th day of September, 2022.

Larry McCallon
Mayor
ATTEST:

Betty Hughes, MMC
City Clerk
Resolution No. 2022-

-3-

STAFF REPORT

TO THE CITY COUNCIL
DATE: September 13, 2022
FROM: Joseph Hughes, City Manager
REVIEWED BY: Carlos Zamano, Public Works Director/ City Engineer 67, PREPARED BY: Alondra Munoz, Engineering Technician II 10.4 SUBJECT: Measure I Capital Project Needs Analysis (2023/ 24 - 2027/ 28) RECOMMENDATION: Approve the Five -Year Capital Project Needs Analysis (2023/24- 2027/28) for the Measure I Major Street and Freeway Interchange Programs FISCAL IMPACT: The Capital Project Needs Analysis is a planning guide for the City' s projected use of Measure I funds in the Major Street and Freeway Interchange Programs. Since Measure I Funds are restricted to roadway/ traffic/transit type improvements, approval of the Analysis will not affect other City services.

PUBLIC NOTICE: The agenda for this item was posted at the three locations per Resolution No. 2011- 047 and on the City' s website.

BACKGROUND: The Measure I Strategy Plan requires each local jurisdiction to annually adopt a five- year Capital Project Needs Analysis ( CPNA) to include arterial street projects and interchange projects that can be realistically funded with Measure I Arterial Sub -Program Funds or Valley Freeway Interchange Program Funds.

Each year, SBCTA allocates 6. 777% of Measure I Arterial revenues to the City of Highland.

SBCTA keeps the City' s allocated Arterial funds until claimed by the City to pay for SBCTA' s share of an arterial project that is listed in the SBCTA Nexus Study.

The City' s allocated Arterial funds can also be used on a temporary basis as an internal loan to pay for the City' s share of an interchange project. Under this arrangement, the City needs to eventually pay back the loan with Development Impact Fees so as to free up the allocated Arterial funds to pay for SBCTA' s share of future City arterial projects.

Approved Motion Second Agenda Item No. / C
Denied Ayes
Continued Noes File No.

Tabled Abstain
Absent
77) cii->hf) L---
City Clerk City Manager
-1-
In the past 11 years ( FY2010/ 11 thru FY2022/ 23), SBCTA allocated $ 15, 081, 238 Measure I Arterial funds to the City of Highland. Based on SBCTA estimates, an additional $ 10, 603, 109 will be allocated to the City in the next 5 years ( FY2023/ 24 thru FY2027/ 28). Therefore, the total amount of Measure I Arterial funds that are available for programing in the City's CPNA is anticipated to be $ 21, 393, 678.

The proposed CPNA for FY 2023/ 24 - 2027/28 includes one freeway interchange project, SR210/ 5th Street Interchange Project and one arterial project, the Victoria Avenue Improvements Project.

The 5th Street Interchange Project is in the preliminary planning stage. It consists of widening of 5th Street/ Greenspot Road between the City Creek Bridge and the westbound ramps and widening of all on and off -ramps. This project is not fully funded. The total estimated project cost is $ 15, 827, 000 with a funding breakdown as follows:

SBCTA $ 5, 590,000 (Valley Freeway Interchange Program) IVDA Agreement 2, 529, 000
2007 RDA Bond Proceeds 750, 000
Caltrans 1, 250, 000 ( Cooperative Agreement)
DIF Loan 3, 805, 330 ( Future allocations of Measure I Arterial Program funds) Shortfall 1, 902, 670 ( Seek future grant opportunities) 15, 827, 000
The estimated fair share costs from the cities of San Bernardino and Redlands are $ 121, 000 and 450, 000. City staff will seek separate cooperative agreements with these funding agency partners to help reduce the project shortfall. City staff will continue to go after future grant opportunities to eliminate need for another DIF Loan from SBCTA.

The Victoria Avenue Improvements Project between 3rd Street and 9th Street includes drainage, pavement reconstruction, traffic signal modifications, curbs, gutters, driveways, sidewalk, raised median, undergrounding of existing overhead utility lines, and striping. Design of the project is 85% complete. The current project cost estimate is approximately $ 11. 3 million. The City was awarded $ 2 million of federal funds under the 2022 Appropriations Act which will be used in the construction phase. The total estimated project cost breakdown is as follows:

Community Credit Fund $ 7, 310,000
2022 Appropriations Earmarks 2, 000, 000
DIF Loan 1, 287, 000 ( Future Allocations of Measure I Arterial Program Funds) SBCTA 536, 000 ( Valley Major Street Program)
Indian Gaming Special District Fund 132, 000
11, 265, 000
Attachments: 2024- 2028 CPNA Resolution
2024-2028 Capital Project Needs Analysis SR-210 & 5th Street 2024- 2028 Capital Project Needs Analysis Victoria Avenue Improvements Project 2024- 2028 CPNA Allocations
2024- 2028 CPNA Arterial Revenue Estimate
M:\ SBCTA ( formerly SANBAG)\ 2024- 2028 MSR I CPNA\ 2024- 2028 CPNA staff report. doc -2-
RESOLUTION NO. 2022-

RESOLUTION OFTHE COUNCIL OF THE CITY HIGHLAND, STATE OF CALIFORNIA,

ADOPTING THE MEASURE I FIVE- YEAR CAPITAL PROJECT NEEDS ANALYSIS FOR FISCAL YEARS 2023/ 2024 THROUGH 2027/ 2028
WHEREAS, San Bernardino County voters approved passage of Measure I in November 2004, authorizing the San Bernardino County Transportation Authority to impose a one- half of one percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino; and WHEREAS, revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plan set forth in Ordinance No. 04- 01 of the Authority; and
WHEREAS, the Strategic Plan requires each local jurisdiction applying for revenue from certain Measure I Programs to annually adopt and update a Five -Year Capital Project Needs Analysis; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Highland, State of California, that the Measure I Five -Year Capital Project Needs Analysis for Fiscal Years 2023/2024 through 2027/ 2028, attached to this resolution, is hereby adopted.

PASSED AND ADOPTED at a meeting of the Council of the City of Highland held on September 13, 2022.

Larry McCallon, Mayor
ATTEST:

Betty Hughes, MMC, City Clerk
FY23/ 24 thru FY27/ 28 CPNA Resolution
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City of Highland
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STAFF REPORT

TO THE CITY COUNCIL
DATE: September 13, 2022
FROM: Joseph Hughes, City Manager
PREPARED BY: Carlos Zamano, Public Works Director/City Engineer SUBJECT: Bid Award — Bid No. 2022- 02, " 3rd Street/ 5th Street Corridor Improvement Project" ( Project str18001)
RECOMMENDATION: It is recommended that the City Council award the construction contract for Bid No. 2022- 02 " 3rd Street/ 51h Street Corridor Improvement Project ( Project str18001)" to the responsible low bidder, Granite Construction Company ( Granite), in the amount of $9, 395, 939. 00. / k
FISCAL IMPACT: The project construction cost will be funded as follows:

Federal Economic Development Administration ( EDA) Grant State Local Partnership Program SB- 1 Grant
San Manuel Band of Mission Indians
Inland Valley Development Agency
City of Highland
Total
3, 955, 263. 87 ( 42%)
1, 700,000.00 ( 18%)
1, 246, 891. 71 ( 13%)
1, 246,891. 71 ( 13%)
1, 246, 891. 71 ( 13%)
9, 395, 939. 00 ( 100%)
The adopted two-year budget includes $ 774,000 in RDA 2007 funds for completion of this project. Since additional funds were necessary to complete all phases of this project, on May 19, 2022, the City Council approved the following budget adjustments:

1. Reallocation of $900,000 of RDA 2007 funds from the Sycamore Strom Drain; and

2. Allocation of $ 145, 025 of General Capital Financing ( MOE) for FY 2022- 23.

PUBLIC NOTICE: The Notice Inviting Bids was advertised on two newspapers and a number of trade papers.

BACKGROUND: Complete construction of the 3rd Street/5th Street Corridor Improvement Project is an HP+ priority item in the 2021/ 2022 Work Program. This Project will construct curbs and gutters, sidewalks, storm drain, traffic signal, street lights and pavement Approved Motion
Denied Ayes
Second Agenda Item No. /
Continued Noes
Tabled Abstain
Absent
City Clerk
File No.

City anager
-1-
improvements along 3rd Street, 5th Street, Palm Avenue and Central Avenue. Improvements also include extending 3rd Street to 5th Street at the Church Avenue intersection. ( See attached project location map.)
Three ( 3) bids were received and opened on April 7, 2022. Following are the bid results:

Bidder Total Bid
Granite Construction Company $ 9, 395, 939. 00
Griffith Company $ 9, 422, 570.08
All American Asphalt $ 9, 517, 909.00
The Engineer' s estimate for this project is $ 7, 658, 400. The low bid was received from Granite of Indio in the amount of $ 9, 395, 939. 00.

Based on staff's review of the bids, the following comments are provided to help explain the high cost of the bids being $ 1. 7 million over the engineer' s estimate:

1. There is an undocumented slope adjacent to Palm Avenue at 3rd Street that will be reconstructed. A retaining wall also needs to be reconstructed within Robertson' s Ready Mix. These improvements are necessary to construct a northbound dedicated right -turn lane at the intersection of Palm Avenue and 3rd Street. The challenges with the slope and retaining are going to cost nearly a quarter of a million over the engineer' s estimate.

2. Three traffic signals require major modifications at 5th Street/ Palm Avenue, 5th Street/ Church Avenue and 3rd Street/ Palm Avenue. Traffic signal material is a long lead item. Higher cost of steel has resulted in these items being a quarter of a million over the engineer' s estimate.

3. Due to heavy truck traffic, this project is constructing jointed concrete pavement on Palm Avenue between 3rd Street and 5th Street including the intersections.

Additionally, this project is constructing curbs, gutters, sidewalks, and driveways. Concrete is more expensive and has become difficult to get. The concrete items combined are close to a million over the engineer's estimate.

4. Finally, there are several miscellaneous bid items with lower quantities that were noticeably higher than the engineer's estimate.

Granite provided a letter to the City stating they will hold their bid price through September 30, 2022. Staff recommends the City Council award this project to the responsible lowest bidder, Granite. Staff is familiar with the quality of work performed by Granite. A recent reference check has also confirmed that this contractor possesses the qualifications and experience necessary to perform the contract scope of work.

Attachments: Location Map
M:\ PUBWRK\ str18001 - 3rd St- 5th St Corridor Improvements\ Construction\ Bid Award Stf Rpt 05- 10- 22. doc -2-
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STAFF REPORT

TO THE CITY COUNCIL
DATE: September 13, 2022
FROM: Joseph Hughes, City Manager
PREPARED BY: Carlos Zamano, Public Works Director/ City Engineer tl/ SUBJECT: HKA Contract 2nd Amendment for Professional Services - 3rd Street and 5th Street Corridors Improvement Project (Project No. str18001)
RECOMMENDATION: It is recommended that the City Council ( 1) approve a second amendment to the professional services agreement with HKA, and ( 2) authorize the City Manager to approve any future contract amendments up to 10% of the new contract amount.

FISCAL IMPACT: The 2nd amendment will increase the fee for professional services by $457, 840.66, for a total fee of $ 1, 932, 630. 24, 31. 0% increase of the 1st amendment. Funding sources for the fee increase are:

Federal Economic Development Administration ( EDA)' Grant $ 192, 730. 15 ( 42. 10%) San Manuel Band of Mission Indians 88, 370. 17 ( 19. 30%) Inland Valley Development Agency 88, 370. 17 ( 19. 30%) City of Highland ( RDA 07) 88, 370. 17 ( 19. 30%)
Total $ 457,840. 66 ( 100%)
A 10% contingency of the revised total fee is also requested. It will be used to cover any additional services if needed and requested by City staff during the course of the project. The contingency amount, if used, will be provided by San Manuel Band of Missions Indians, Inland Valley Development Agency and the City of Highland.

PUBLIC NOTICE: Notices of Council Meeting agenda were posted at the three locations required by resolution. The Notice inviting bids was advertised in two newspapers and a number of trade papers.

BACKGROUND: The 3rd Street and 5th Street Corridors Improvement Project will construct curbs and gutters, sidewalks, storm drain, traffic signal, street lights and pavement improvements along 3rd Street, 5th Street, Palm Avenue and Central Avenue. Improvements also include extending 3rd Street to 5th Street at the Church Avenue intersection. ( See attached project location map.) Approved Motion Second Agenda Item No. . 26
Denied Ayes
Continued Noes
Tabled Abstain
Absent
City Clerk
File No.

City Manager
-1-
On April 28, 2022, the City Council approved the first amendment to the professional services agreement with HKA for a total fee of $1, 474, 789. 58. This fee increase was related to additional design of a retaining wall at the southeast corner of Palm Avenue and 3rd Street and landscaped median on 5th Street from Palm Avenue to Church Avenue. Additional effort was also needed to research and secure right of way on Central Avenue from 3rd Street to 5th Street.

With this project moving into the construction phase, it is necessary to process a second amendment to the agreement with HKA. Additional construction management and inspection services include:

Additional effort due to the expanded construction schedule from 180 to 397 working days. The increase of 217 working is more than double the original construction period.

The original contract with HKA was executed on December 11, 2018. While HKA is providing the City discounted rates, their rates have increased.

Expanded scope of work for the retaining wall at Robertson' s Ready Mix and landscape median on 5th Street.

It is recommended that the second amendment for additional professional services with HKA be approved.

Attachments: Location Map
Second Amendment
M:\ PUBWRK\ str18001 - 3rd St- 5th St Corridor Improvements\ City Council\ HKA 2nd Amendment Staff Report 091322. doc -2-
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LOCATION MAP
-3-

SECOND AMENDMENT TO

AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN

CITY OF HIGHLAND AND HERNANDEZ, KROONE AND ASSOCIATES ( HKA) This Second Amendment to the Agreement for Professional Services is made and entered into the 13th day of September, 2022, by and between the CITY OF HIGHLAND (" City") and Hernandez, Kroone and Associates ( HKA).

HKA entered into an agreement to provide Engineering, Right of Way, Construction Management and Inspection Services for the 3rd and 5th Street Corridor Improvements Project; and, on December 11, 2018. Payment for services in the Agreement provides an authorized amount of $1, 279, 004. 31 unless otherwise approved by the City.

The City and HKA amended the original agreement on April 28, 2020, to include additional research and secure right of way on Central Avenue, addition of a retaining wall at the southeast corner of Palm Avenue & 3rd Street, and addition of a landscaped median in 5th Street from Church Avenue to Palm Avenue at an amount not -to -exceed $ 1, 474, 789. 58.

The City and HKA desire to amend the construction management and inspections services due to the expanded construction schedule from 180 to 397 working days, increased discounted billing rates and additional scope of work for the retaining wall at Robertson' s Ready Mix and landscape median on 5th Street.

THIS SECOND AMENDMENT ALTERS THE AGREEMENT AS FOLLOWS:

1. " Scope of Services" is amended by adding additional construction management and inspection services as set forth in the HKA letter dated September 7, 2022 ( Task 3 only) attached and incorporated by this Amendment.

2. The maximum compensation amount under this second amendment to this agreement is Two million one hundred twenty- five thousand eight hundred ninety- three dollars and twenty- six cents ($ 2, 125, 893. 26) including additional scope of services unless otherwise authorized in advance by the City in writing.

3. The term of the agreement shall terminate 6 months after the notice of construction completion has been excepted by the City Council, unless teiiiiinated earlier as set forth in Section 26 of the original agreement.

4. All other terms, conditions, and provisions of the original agreement to the extent not modified by this Amendment, shall remain in full force and effect. -4-
Except as expressly modified above, the terms of the original agreement dated December 11, 2018, shall control the respective rights and obligations of the parties hereto.

CITY OF HIGHLAD CONSULTANT: HKA
Larry McCallon, Mayor
By:

Anne M. Hernandez
ATTEST: By:

Betty Hughes, City Clerk Richard R. Hernandez
-5-
Hernandez, Kroone & Associates
Engineers & Land Surveyors
September 7, 2022
Mr. Carlos Zamano, PE 2nd Amendment Request
Director of Public Works / City Engineer 3rd Street / 5th Street Corridor Improvements 27215 Base Line HKA Project No. 18- 1037
Highland, CA 92346 STR18001
RE: 2nd Amendment Request 3rd Street / 5th Street Construction Management Dear Mr. Carlos Zamano, PE:

With this letter, Hernandez, Kroone & Associates ( HKA) is requesting a second formal contract amendment. This is necessary due to schedule adjustments and expansion of scope of services in design, right of way, bid support, and construction inspection as outlined below.

History:

HKA' s original contract provided for the following:
8- month schedule for design services
180 working days for construction
Additional design and right of way services added to the contract through a prior amendment include:

Landscape median island on 5th Street from Palm Avenue to Church Avenue Soil nail wall or soldier pile wall at southeast corner of 3rd Street / Palm Avenue Geotechnical testing for the retaining wall and slope paving Additional project management costs for an extension in design services Discrepancies in City owned right of way along Central Avenue On April 28, 2020, HKA received an amendment request for the additional design and right of way services listed above. The design schedule changed from 100% delivery date.

Additional Scope Items:

In April of 2020, HKA provided notice to proceed to Terracon Geotechnical for the additional borings and testing required to support the design of a soil nail wall or soldier pile wall. Terracon had issues with the geotechnical borings due to resistance and the City authorized a few more boring locations. The end result of the borings is that the hill in the southeast corner of 3rd Street and Palm Avenue contains debris of an unknown quantity and unknown materials with several points of resistance which could be due to boulders. Therefore, a soil nail wall or solder pile wall, which rely on frictional forces with the soil, are no longer viable alternatives.
234 East Drake Drive San Bernardino, California 92408
Phone: ( 909) 884- 3222 Fax: ( 909) 383- 1577 www.hkagroup. com K:\ 2018 Contracts\ 18- 1037 Highland - 3rd & 5th St Corridor Improvements\ 2022- 09- 07 amendment request construction - revised. docx -6-
Mr. Carlos Zamano, PE
September 7, 2022
2 of 3
Hernandez, Kroone & Associates
Civil Engineers and Land Surveyors
HKA and the City pursued other alternatives which is an expansion of HKA' s scope outside of the above amendment request. One of the alternatives the City and HKA reviewed included the practicality of a Caltrans type retaining wall. HKA contacted several structural firms who stated that due to the peak ground acceleration factor and the soil conditions, a retaining wall was not recommended, and these firms confirmed that the Caltrans Standard Plan retaining walls were not designed for this type of seismic forces.

The City and HKA prepared several alternatives to present to the property owner, Robertson' s Ready Mix, regarding the slope grading, permanent and temporary right of way acquisition, and impacts to the equipment / materials at the top of their slope. The alternatives considered different slope options at 2: 1, 3: 1, and 4: 1, resulting in additional right of way costs, and construction costs. These setbacks in the design and additional alternatives expanded the design schedule and increased the project management costs.

Compounding the issues with the design were the acquisition issues along Central Avenue. It was assumed that the City had easement rights for the full width of Central Avenue as indicated on the Original Plans prepared by others. The rights to Central Avenue needed to be acquired from the property owners on the west side of the original subdivision. The City, HKA, IVDA, and East Valley Water District all participated at various times in trying to secure rights from one specific property owner. These rights were not obtained due to issues with a clouded title regarding ownership. Therefore, HKA was required to redesign the improvements on Central Avenue to skip this property owner which included a through lane and curb and gutter transitions. This right of way delay was concurrent with the design delay.

HKA' s original construction schedule was for 180 working days. The schedule impacts were discussed during the 1st amendment request but were postponed until final design was completed. This postponement was deemed necessary in order to determine the final design and the construction elements that required full time inspection versus part time inspection. It is the City' s desire to have full time inspection on asphalt paving, jointed concrete pavement, and the construction of the slope paving and earth retaining system by Orco Block. In summary, the construction schedule has been expanded from 180 to 397 workings days for construction inspection, an increase of 217 days. The jointed plain concrete will take more days to construction than asphalt paving and the slope paving and Orco Block retaining wall require specialty inspection. Therefore, the days of full- time inspection has also been increased.

HKA' s original contract was awarded in 2018. Since 2018, our employees have received merit increases and cost of living wage increases, and these increases have been included in the amendment request.

However, HKA is still offering discounted prices to the City of Highland and is reducing the increases in the upper management categories.

Task 1st Amendment
Cost
Increased
Cost
Total Cost
Task 1 Preliminary Engineering 140, 040. 83 0 140, 040. 83 Task 2 Right of Way Engineering and
Acquisition
267, 000. 00 0 267, 000. 00
Task 3 PS& E 565, 200. 00 0 565, 200. 00
Task 4 Bid Support, Construction Management .

Inspection
502, 548. 75 457, 840. 66 960, 389. 41
Total Costs 1, 474, 789. 58 457, 840. 66 1, 932, 630. 24 234 East Drake Drive San Bernardino, California 92408
Phone: ( 909) 884- 3222 Fax: ( 909) 383- 1577 www. hkagroup. com K:\ 2018 Contracts\ 18- 1037 Highland - 3rd & 5th St Corridor Improvements\ 2022- 09- 07 amendment request construction - revised. docx -7-
Mr. Carlos Zamano, PE
September 7, 2022
3 of 3
Hernandez, Kroone & Associates
Civil Engineers and Land Surveyors
If you have any concerns or questions regarding the attached spreadsheet or this request, please feel free to contact me at 909- 884- 3222.

Sincerely,
4414.1"
Anne M. Hernandez, PEa4t
Principal
Attachment: Excel Spreadsheet of Cost Projections
234 East Drake Drive San Bernardino, California 92408
Phone: ( 909) 884- 3222 Fax: ( 909) 383- 1577 www.hkagroup. com K:\ 2018 Contracts\ 18- 1037 Highland - 3rd & 5th St Corridor Improvements\ 2022- 09- 07 amendment request construction - revised. docx -8-
Hernandez, Kroone and Associates
Civil Engineers and Land Surveyors
Hernandez, Kroone Associates
Civil Engineers Land Surveyors
Original
Task No.
4A. 1
4A. 1 a
Proposal
Number:
18- 1037 Cost for Construction Services Amendment
Request No. 2
Client Name: City of Highland - Note Discounted Rates
Date: 4/ 26/ 2022 Rev 4. 0
Job Title: STR18001 3rd and 5th Street Corridors Improvement Project
Task No.

Cost Proposal Summary
Task Name
Project Managemen
OH Rate
Billing Rate 2022- 2023
City of Highland Discounted Rates
Cost, $ ( USD)
10 11 12 13 14 16 17 18 19 20
1 AH
J
JSH PE RH JF AA 1AH YL TG YL/ Gl TG JT YL JR YL
Assigned Person: Subject to
Change ( Use Initials)
Principal
Pmject
Manager
Assistant PM Assistant PM
Quality
Control
Quality
Control
Project Engineer Project Engineer
Assistant
Project
Engineer
Field Inspector
PW)- SC- 23- 63- 2-
2021-1D Group 2
2 Man Survey
Crew ( PW) " CP

86. 38, IM =

82. 81, CM =
8 2. 18"
Engineering
Tech
Office
Surveyor Y
Assistant
Office
Surveyor
Labor
Compliance P
Assistant
Office
Engineer
Subconsultant A -
Hilltop
Geotechnical
Subconsultant B -
RT Engineering 8 8
Subconsultant
C - TY Lin
Mileage, Misc.

Expenses P
ODC Rate Category ( Per Cost Sheet):
165% 165% 165% 165% 165% 165% 165% 165% 130% 130% 165% 165% 165% 165% 165% 300. 56 217. 00 168. 54 293. 65 154. 50 109. 55 96. 91 95. 51 176. 00 366. 00 84. 27 188. 20 95. 51 104. 21 95. 51 215. 00 S 175. 00 4 00 154. 50 109. 55 36. 91 1 145. 72 88. 20 95. 51 104. 21 1. 00 1. 00 1. 00 Rate, USD ($) 3, 900. 00 0. 00 10. 00 10, 00 0. 00 0. 00 0. 00 0. 00

1. 1 ' Original Contract Hours ( 1) 3, 900. 00 10. 00 10. 00 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 Total Hours

20. 00
Total Cost, True Original Cost, True
3, 900. 00 $ 3, 208. 20 $
Cost Difference Sum Programing Code
691. 80 Main Task
00 20. 00 3,900. 00 I $ 3, 208. 20 I
691. 80

0. 00 0. 00 0. 00 34. 00 6, 350, 00 $ 5, 030. 30 $ 1, 319. 70 Main Task 4A. 2
4A. 2a
2 2. 1
Preconstruction Services
Job Walk ( 1)
5 6, 350. UU
1, 560. 00
u. vu u. vu

4. 00
2v. vu

4. 00
o. 00 00

8. 00 1, 560. 00 1, 293. 48 266. 52
4A. 2b 2. 2 Pre -bid inquiries and addendums ( 1) 1, 560. 00 4. 00 4. 00

8. 00 1, 560. 00 1, 414. 90 145. 10
4A. 2c 2. 3 Engineer' s Construction Schedule ( 1) 3, 230. 00 2. 00 16. 00 r r t nn nn n nn

18. 00
a7n nn C
3, 230. 00
ca SRt a0 C
2, 321. 92
aA 071 17
908. 08
14-610- 07
4B. 1

46. 1a
3 3. 1
Project Management
Original Contract Hours ( 1)
5 53, 59U. UU
45, 000. 00
u. uu s. vu
116. 00
ilv. vu

72. 00
v. v., V. V. v... vs.

75. 00 10. 00 94. 00 273. 00 44, 996. 39 38, 971. 32 6, 025. 07 pe and Cast Increase rim' taming Wall and Median Island n) Consolidation of Addrnonai Work to Tasks 3 l
4, 4%U'.
50 p. and Cost Increase ( 1PCP and Slope Paving)
o!, cf: ilion of Addit anal Work to Task, 1 l

4. 120 ii .
t t t , rnn nn rn nn n nn 1Kg nn < 7[ [ 127 7a < 17 149 16 < R. 411. 07 4B, 2
4B. 2a
4 4. 1
Preconstruction Services
Prepare for and Attend Pre -construction meeting ( 1)
5 25, 560. UU
5, 770. 00
u. vu 44. 01/

12. 00
oo. w

12. 00
V. v•,,

8. 00 2. 00 50. 00 34. 00 5, 774. 95 4, 887. 20 687. 75 413. 21) 4. 2
Review Contractor' s construction schedule and Schedule of 470. 00

1. 00 1. 00 1. 00 3. 00 474. 27 400. 29 73. 98
4B. 2c 4. 3
Values ( 1)
Review Contractor' s Submittals ( 1) 7, 120. 00 1. 00 12. 00 24. 00 8. 00 1, 500. 00 45. 00 7, 118. 38 5, 937. 01 1, 181. 37

48. 2d 4. 4 Review Contractor' s Traffic Control Plans ( 1) 2, 150. 00 1. 00 0. 00 20. 00 21. 00 2, 153. 21 2, 127. 89 25. 32

46. 2e 4. 5 Respond to Requests for Information ( 1) 1, 620. 00 1. 00 8. 00

9. 00 1, 615. 00 1, 199. 81 415. 19
4B. 2f 4. 6 Review of Cal OSHA project criteria ( 1) 670. 00

8. 00 8. 00 6714. 16 555. 68 118. 48
4$. 2g 4, 7 Training for Environmental Clearance on Job site ( 1) 2, 900. 00 4. 00 4. 00 4. 00 4. 00 4. 00 20. 00 2, 902. 26 2, 041. 28 860. 98 pe and Cost Inc' ease ( fteteining Wan ano Median Island lion) Consolidation of Additional Work to Tasks 4 1 4 UU o and Cost Increase ( JPCP and Slope Paving)
Iicl Ii , n c, f G, Iditic al tri,„ F lr, Ta. k• 4 1 -, 1 7 7C10 ,
t ,,,,, ,,,, ,,,, t nn nn r n n nn n no
00 A, 1Y[ cn C A77 eao 07 4S4 QR7 R1 A67- S17. 11
413. 3
4B. 3a
5 5. 1
Construction Services
Field Inspection ( Full Time Inspection) ( 1)
5 32z, 520. 00
220, 750. 00
u. uu 3Lo. JU oow. uu Z. U. vv
1296. 00 26, 000. 00 3, 500. 00 2, 400. 00 1296. 00 220, 753. 12 241, 736. 80 20, 983. 68)

48. 3b 5. 2 Certificates of Compliance ( 1) 4, 720. 00 1. 00 8. 00 16. 00 16. 00 41. 00 4, 716. 14 3, 767. 81 948. 33

48. 3c 5, 3 Utility Coordination ( 1) 12, 330. 00 1. 00 60. 00 40. 00 101. 00 12, 329. 00 11, 728. 29 600. 71

48. 3d 5. 4
Weekly Statement of Working days and other administrative 19, 640. 00

8. 00 8. 00 80. 00 80. 00 176. 00 19, 636. 92 17, 614. 64 2, 022. 28

48. 3e 5, 5
papers ( 1)
Labor Compliance Interviews ( 1) 1, 220. 00 0. 25 8. 00 8. 25 1, 219. 51 1, 217. 43 2. 08

48. 3f 5. 6 Certified Payroll ( 1) 11, 150. 00 0. 25

8. 00 100. 00 108. 25 11, 149. 30 8, 144. 35 3, 004. 95

48. 3g 5, 7 Contractor' s pay request ( 1) 5, 910. 00 9. 00

36. 00 9. 00 54. 00 5, 906. 65 5, 039. 10 867. 55

48. 3h 5. 8 Respond to Requests for Information ( 1) 10, 250. 00 4. 00 15. 00 36. 00 18. 00 73. 00 10, 247. 78 9, 185. 06 1, 062. 72

46. 3i 5. 9 Coordination with Businesses and Residents ( 1) 3, 960. 00 2. 00 8. 00 10. 00 8. 00 28. 00 3, 961. 36 3, 419. 38 541. 98

48. 3j 5. 10 Material Testing / Geotechnical ( Allowance) ( 1) 67, 820. 00

32. 00 8. 00 62, 485. 00 40. 00 67, 822. 20 67, 703. 72 118. 48

48. 3k 5. 11 Permit Coordination ( 1) 5, 510. 00 2. 00 8. 00 4. 00 16. 00 8. 00 38. 00 5, 509. 84 4, 745. 06 764. 78

48. 31 5. 12 Contractor' s claims - process / negotiate ( 1) 6, 040. 00 8. 00 8. 00 8. 00 16. 00 40. 00 6, 036. 32 5, 328. 88 707. 44

46. 3m 5. 13 Construction Staking ( 1) 71, 770. 00 3. 00 40. 00 8. 00 171. 00 8. 00 0. 00 270. 00 71, 773. 56 68, 102. 00 3, 671. 56 4B. 3n 5. 14 Final Job Walk ( 1) 7, 970. 00 8. 00 8. 00 24. 00 16. 00 56. 00 7, 965. 60 7, 255. 28 710. 32 IS
Scope and nrrease ( Retaining Wall and Median island
Addition) Consolidation of Additional Work to Tasks 5. 1 5 S20., Scope and c ost Inc' rid Slope Paving) 74. 385. 84
Coo, n of Addition. Ta_ sks 5. 1- 5. 14
Sci
t r n r non nn nc, cn as A, 7 co 70f, 74 z 4B. 9- 9041 6 4 48.
4a 4B.
4b 48.
4c 4B.
4d 4
B. 4e 48.
4f 6

6. 1 6.
2 6.
3 6.
4 6.
5 6.
6 Post
Construction Services Contractor'
s Claims settlement / final pay (1) Asbuilts ( 1) 39,
660. 00 10,
120. 00 Permit
Closeouts (1) Deliver
Final Completed Project to City and EDA (1) Survey Monument Preservation (1) 6, 480. 00 Obtain
New Traffic Count Volumes and readjust signal timing 1) Scope
and Cost Increase ( RetaininC, Wali and IViedian island Addition) Consolidation ofAdditional Work to Tasks 61 r 0.
00 7,
210. 00 3,
830. 00 7,
540. 00 6.
8 Scope
and Cost Increase ( JPCP and Slope Pavir n„,,
hrf, tion Tasks 6. 1)
Indicated Original Scope of Work Item Total
Cost for Construction Services• Note does not include credit for remaining contract amount; See Summary Table Below
for Contract Amendment Request Limits
of Cost Proposal Summaryt The cost proposal summary is subject to the list of services, scope of work, assumptions, as noted and shown in the complete written proposal. This sheet Is for reference only and Is not valid as an individual document. Cost estimate is valid for only 60 days. Costs shown are not lump sum; Actual costs will be based on time and materials. Cost estimation is for budgeting purposes only; Summary
of Cost Adjustments Cost
Difference due to Rate Change 11,
395. 03 Cost
Difference due to Scope of Work Additions 209,
509. 87 Cost
Difference due to Increase in Schedule ( 180 WD to 397
WD) 181,
566.08 Total
Cost Increase in Cost from Original Contract 402,
470.98 Original
Scope of Work Contract Amount 549,
110. 15 Total
Cost for Task 4A and 48 (Construction Services) 951,
581.13 Summary
of Contract Balance Original
Contract Amount for Construction 549,
110. 15 Borrowed
Cost from Construction for Additional Design 42,
369. 68) Contract
Balance Remaining as of March 31, 2022 506,
740.47 Estimated
April Invoice 13,
000. 00) Estimated
Contract Balance April 30, 2022 493,
740. 47 Total
Cost for Task 4A and 4B (Construction Services) 951,
581. 13 0.
00 16. 50 66. 00 0. 00 0, 00 2. 00 20. 00 8. 00 0. 00 0. 00 8. 00 8. 00 8. 00 8. 00 60. 00 74. 00 25.
00 25. 00 4.
00 8.
00 15. 00 20. 00 8. 00 8.
00 2. 00 8. 00 0.
50 2. 00 2. 00 8. 00 6, 000. 00 84.
00 10, 120. 99 7, 798. 52 2, 322. 47 50.
00 6, 481. 75 4, 840. 00 1, 641. 75 4.
00 337. 08 277. 84 59. 24 51.
00 7, 210. 18 5, 892. 10 1, 318. 08 18.
00 3, 827. 49 3, 609. 12 218. 37 12.
50 16
00 7,
541. 77 7, 345. 79 195. 99 16.
00 Total
Hours ( Break Down) Total Direct Costs 951,
600. 00 0. 00 511. 00 599. 00 56. 00 11. 00 92. 00 246. 00 162. 00 0. 00 2643. 00 179. 00 545. 00 16. 00 0. 00 179. 00 8. 00 109, 553. 00 $ 26, 000. 00 $ 5, 000. 00 2618. 00 6000. 00 5277. 00 951, 581. 13 $ 549, 110. 15 $ 402, 470. 98 Revised Contract Amount Revised Contract Different Line
1 = Rate Raises Line
2 =Scope of Work Additions Line
3 = Schedule Addition Line
4 = Line 1 + Line 2 + Line 3Line
5 = Original Contract Amount Line
6 = Line 4+ Line 5 Line
7 = Original Contract Amount Line
8 = Borrowed Cost from Contract Categories
Line
9 = Line 8 - Line 7Line
10 = Estimated Invoice Line
11 = Line 9 - Line 10 Line
12 = Line 6 Percent
Based on Hours 0.
00% 9. 68% 11. 35% 1. 06% 0. 21% 1. 74% 4. 66% 3. 07% 0. 00% 50. 09% 3. 39% 10. 33% 0. 87% 0. 00% 3. 39% 0. 15% Percent Based on Costs 100%
109,
865. 00 $ 104, 825. 00 $ 9, 438. 24 $ 2, 156. 00 $ 14, 213. 54 $ 26, 949. 55 $ 15, 699. 50 $ - $ 385, 137. 96 $ 60, 122. 52 $ 45, 927. 15 $ 8, 657. 34 $ - $ 18, 654. 29 $ 764. 05 $ 109, 553. 00 $ 26, 000. 00 $ 5, 000. 00 $ 2, 618. 00 $ 6, 000. 00 $ 951, 581. 13 0. 00% 11. 55% 11. 02% 0. 99% 0. 23% 1. 49% 2. 83% 1. 65% 0. 00% 40. 47% 6. 32% 4. 83% 0. 91% 0. 00% 1. 96% 0. 08% 11. 51% 2. 73% 0. 53% 0. 28% 0. 63% 100% 506, 740. 47 $ 444, 840. 66 Additional
Cost Incurred Final Ammendment Amount 13,
000. 00 $ 457, 840. 66 Main
Task Main
Task Main
Task Main
Task Contract
Amendment Request Amount for Construction Services
457,
840. 66) Line 13 = Line 11 - Line 12 Corridor
improvemem, Cost rstimate\ Scope Addaion Coe; rst, r-,ate ( r' osi f,c Con_ t ruction Servvices, AH Post Bid Con:; ri,:;ion Stunt_ Amr,,,,, cre • Rey 4 o. xisx
-9-
MEETING DATE:

FROM:

REVIEWED BY:

PREPARED BY:

SUBJECT:

STAFF REPORT

TO THE CITY COUNCIL
September 13, 2022
Joseph Hughes, City Manager
Carlos Zamano, Public Works Director/City Engineer G?i
Matt Bennett, Assistant Public Works Director 0
Public Improvement Reimbursement Agreement Amendment No. 1 with East Valley Water District for Traffic Signal Modifications at 5th Street and Del Rosa Drive
RECOMMENDATION: It is recommended that the City Council:
1) Approve the Public Improvement Reimbursement Agreement Amendment No. 1 with East Valley Water District ( EVWD) for Traffic Signal Modifications at 5th Street and Del Rosa Drive;
2) Authorize the Mayor to sign the Agreement Amendment No. 1; and 3) Approve the following Budget Adjustment: Transfer $267,786.07 from 007-2100 ( DIFFund Balance) to be expended from 007- 8330- 6550 ( Traffic Improvements).

FISCAL IMPACT: The City' s cost for design, construction and construction management was estimated to be $ 316,000 for traffic signal modifications at 5th Street and Del Rosa Drive as per the Public Improvement Reimbursement Agreement (Agreement) approved by the City Council on September 21, 2020. Funds were allocated from Development Impact Fees ( DIF) for the traffic signal improvements included with the Design/ Build Sterling Natural Resources Center project being constructed by EVWD. EVWD has provided the necessary backup for the change order associated with the traffic signal improvements for design, construction and construction management, and extra shared cost items that were not included in the original Agreement. The revised estimated City share cost of the traffic signal improvements is $ 583, 786. 07, with a $ 267, 786. 07 ( 84. 7%) increase. There are sufficient DIF funds to cover this increase to the City.

PUBLIC NOTICE: The agenda for this item was posted at the three locations per Resolution No. 2011- 047 and on the City' s website.

Approved Motion Second Agenda Item No. ,, 1 1
Denied _ Ayes
Continued Noes File No.

Tabled Abstain
Absent
1!) ditttILY
City Clerk City Manager
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BACKGROUND: EVWD is constructing a recycled water treatment plant referred to as the Sterling Natural Resource Center (SNRC). It is located on the east side of Del Rosa Drive between 5th Street and 6th Street. The facility will treat up to 10 million gallons a day and provide a sustainable new water supply that will benefit Highland residents as well as the region. The project is also constructing an Administration Center on the west side of Del Rosa Drive. It will provide opportunities in the form of education and training, community space, neighborhood improvements, and new habitat for the Santa Ana Sucker fish.

The SNRC project is also required to construct off -site improvements including, but not limited to pavement widening, slurry seal, curbs, gutters, sidewalks, curb ramps, bus pad, driveways, catch basin modification and parkway landscape As a result of EVWD' s Project constructing the intersection of Del Rosa Drive and 5th Street to its ultimate width, the City agreed to partner with EVWD to modify the traffic signal at this intersection using eligible DIF funds.

The change order for the traffic signal modifications at 5th Street and Del Rosa Drive has been negotiated with the SNRC contractor at a cost of $583, 786. 07. The increase of $267, 786. 07

84. 7%) is due to the following unforeseen factors:

1. Rise of inflation in the United States and construction costs.

2. It was assumed that the traffic signal equipment in the controller would be salvaged.

However, during design it was determined that all the signal equipment in the cabinet needed to be replaced.

3. Acquisition of permanent easements at the southeast and southwest corners of the intersection to construct the traffic signal at its ultimate location and provide ADA complaint curb ramps.

4. Additional cost of share items for traffic control, slurry seal and striping due to existing poor pavement condition on 5th Street and Del Rosa Drive.

Amendment No. 1 of the Public Improvement Reimbursement Agreement has been reviewed and approved by staff at both agencies. It is scheduled for approval by EVWD' s Board on September 14, 2022.

Attachments:

1. Location Map

2. Public Improvement Reimbursement Agreement

3. Amendment No. 1
M:\ PUBWRK\ sig21002 Traffic Signal Modifications at 5th St & Del Rosa Dr\ City Council\ EVWD and Highland Reimbursement Amendment Staff Report 9- 13- 22. doc -2-
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PUBLIC IMPROVEMENT REIMBURSEMENT AGREEMENT
This PUBLIC IMPROVEMENT REIMBURSEMENT AGREEMENT (" Agreement") is entered into by and between East Valley Water District, a County Water District, (" District") and the City ofHighland, a California Municipal Corporation (" City"). The Agreement is effective the date of execution by the last party to execute this Agreement ( Effective Date) for the purpose stated herein.

RECITALS:

WHEREAS, District is building a recycled water plant known as the Sterling Natural Resource Center (" SNRC") which is located on Del Rosa Drive between 5th Street and 6th Street within the City of Highland, see attached location map hereto as Exhibit " A"; and WHEREAS, District and City have identified certain public improvements at Del Rosa Drive and 5tt, Street intersection (" Improvements") to be constructed in conjunction with the construction of the SNRC; and
WHEREAS, subject to the terms of this Agreement, District has agreed to design and construct the Improvements and. City has agreed to reimburse District for the costs associated therewith; COVENANTS:

NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:

A. The District shall:

1. Serve as the lead agency in the execution of the Improvements and assign a project manager. All work contemplated and performed under this Agreement shall be processed as a change order to the SNRC progressive design -build contract with Balfour -Beatty as general contractor. As such, the District shall be sole party that contracts with consultant( s) and contractor( s), coordinates the activities of the consultant( s) and contractor( s), and resolves any issues with these contracts.

2. Complete the design plans, specifications, and schedule for the Improvements as shown in Exhibit "B" attached hereto and incorporated herein by this reference.

3. Administer contract( s) for construction ofthe Improvements. The Improvements shall be processed and constructed as a change order to the SNRC progressive design -build agreement and shall comply with the terms of that agreement. The provisions set forth in Section 6.3 of the design -build agreement regarding insurance shall apply and are incorporated herein by this reference as if set forth fully herein. Certificates of insurance and endorsements shall be issued and shall

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contain language requiring City and its directors, employees, and agents to be included as additionally named insured on all policies of insurance required for the Improvements, and such policies of insurance shall be primary with respect to City and its directors, employees, and agents, and that any and all coverage that may be available to City shall be considered excess and non- contributory. Within ten business days after the Effective Date ofthis agreement, District shall provide to City copies of the certificates of insurance and endorsements showing the City as an additionally named insured.

4. The District agrees that the procurement of any contractors or subcontractors that will be constructing the Improvements shall comply with any and all applicable local, State, and federal laws including, but not limited to, provisions of the California Public Contract Code and Labor Code applicable to public works requiring public bidding and payment of prevailing wages, maintenance of certified payroll records, and registration with the Department of Industrial Relations.

5. Administer professional services contract(s) to provide construction management services for the Improvements.

6. Complete the Improvements in compliance with all applicable legal requirements and in a manner reasonably acceptable to the City.

7. Respond to change order requests and requests for information related to the Improvements, and make changes or modifications to final plans and specifications as needed throughout construction.

8. Submit change order requests and requests for information for Improvements to the City.

9. Be responsible for the following costs of the Improvements:
i) One hundred percent of design, construction and construction management for the civil improvements such as, but not limited to, construction of additional paving, slurry seal, curbs, gutters, sidewalk, ADA ramps, relocation of the existing the storm drain catch basin north of 5th Street, and signage.
ii) Any design fee in excess of $26, 000 for traffic signal modifications. iii)Fifty percent (50%) of shared items ofwork as mutually agreed by the District and City and listed in Exhibit " C" titled " Listing of Shared Cost Items," which is attached hereto and incorporated herein by this reference.

The parties agree that if either party determines that the benefit to the other is more than fifty percent ( 50%), the parties will meet and confer

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regarding re -allocating the costs related to the shared items of work. Any re -allocation of costs will require an amendment to this Agreement.

10. Notify City of completion of construction.

11. Send detailed itemized invoices to City as follows:
i) During design and construction of the Improvements, send monthly invoices to the City in the amount equal to the total amount of the contract( s) regarding traffic signal modification improvements and half of that month' s shared costs as mutually agreed by the District and City. The design and construction management invoices shall include a breakdown of man- hours and billings rate for each task. The construction invoices shall include bid item quantity, description, unit cost and executed contract change orders.
ii) After the City' s acceptance of the Improvements, send a final invoice to the City in an amount equal to the final costs incurred for the traffic signal modification improvements and half ofthe remaining shared costs, including all contract payments, change orders, extra work and other contingency expenditures as mutually agreed upon by both parties and described below.

B. The City shall:

1. Review the design plans and specifications for the Improvements within ten ( 10) business days from submission by District and either approve the plans and specifications or provide written comments to the plans and specifications.

2. Cooperate with the District in regards to timely City inspections of the Improvements.

3. Respond to material submittals, change order requests and requests for information related to the Improvements within ten ( 10) business days of notice thereof.

4. Upon notification by the District of completion of construction of the Improvements, City staff shall, within twenty (20) business days or as soon thereafter as is feasible, place on a City Council agenda an agenda item recommending that the City Council accept the Improvements.

5. Be responsible for the following costs of the Improvements:
i) Design fee not -to -exceed $ 26, 000 for traffic signal modifications.

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ii) One hundred percent ( 100%) of construction and construction management for traffic signal modifications at an estimated cost of 290, 000.
iii) Fifty percent ( 50%) of shared items of the Improvements as mutually agreed by the City and District and listed in Exhibit " C." iv) One hundred percent ( 100%) of City' s staff time and consultant fees to coordinate with the District, monitor construction, and other administrative work relative to the traffic signal modifications.

6. Make the following payments to the District:
i) During design and construction of the Improvements, unless the City disputes a fee, City shall send each progress payment within thirty (30) days of notice of the monthly itemized invoice from the District for the Improvements, and shared items of work as mutually agreed by the District and City. In the event that the City disputes that amounts stated on any itemized invoice, the City shall submit within ten ( 10) business days of receipt ofthe invoice, notice of such dispute and the basis for the dispute. The parties shall endeavor to resolve any such dispute within a reasonable time after the District' s receipt of notice of dispute. Any dispute that is not resolved within five (5) business days shall be referred to the City Manager and the General Manager for resolution. ii) City shall send a final payment within thirty ( 30) days of notice of the final itemized invoice from the District, unless City disputes any of the fees set forth in the final invoice. If City disputes any fee set forth in the monthly invoice, the City shall submit within ten ( 10) business days of receipt ofthe invoice, notice of such dispute and the basis for the dispute.

The parties shall endeavor to resolve any such dispute within a reasonable time after the District' s receipt of notice of dispute. Any dispute that is not resolved within five ( 5) business days shall be referred to the City Manager and the District Manager for resolution.

GENERAL TERMS:

I . Once accepted, the Improvements shall be the property ofthe City, and the City shall be responsible for the operation and maintenance.

2. District agrees to obtain for each contractor performing any aspect of the Improvements a warranty in the City' s favor for the repair or replacement of faulty work or materials for a period of one year following completion of the Improvements and the City' s acceptance thereof. District shall provide City with the warranty before the City Council accepts the Improvements.

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3. The District and City agree to cooperate with each other in good faith and acknowledge that, for all matters in this Agreement, time is of the essence.

4. This Agreement shall commence on the Effective Date and shall terminate until such time as a certificate of completion has been issued for the Improvements, unless otherwise extended or terminated by mutual written consent of both parties.

5. Each party' s performance under this Agreement is subject to acts of God, war, government regulation, pandemic, terrorism, disaster, strikes, civil disorder, curtailment of transportation facilities, or any other emergency beyond said party' s control making it inadvisable, illegal, or impossible to perform its respective obligations under this Agreement.

6. This Agreement contains the full and complete understanding of the parties regarding the subject matter of this Agreement and shall not be construed against either party as the drafter of the Agreement, which shall be deemed to have been written by both parties.

7. If any term, clause, or provision of this Agreement is held to be illegal, invalid, or unenforceable, the remainder ofthis Agreement shall not be affected, but shall remain in full force and effect in accordance with the terms hereof

8. This Agreement shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the State of California, excluding California' s choice of law rules. Venue for any such action relating to this Agreement shall be in the San Bernardino County Superior Court.

9. No variation, modification, change, or amendment of this Agreement shall be binding upon either party unless such variation, modification, change, or amendment is in writing and duly authorized and executed by the District and City. This Agreement shall not be amended or modified by oral agreement or understanding between the parties or by any acts or conduct of the parties.

10. No waiver of any breach or default by either party shall constitute a waiver of any other breach or default, nor shall any such waiver constitute a continuing waiver.

11. Neither party shall assign this Agreement or any of such party' s interest, rights, or obligations under this Agreement without the prior written consent ofthe other party, which consent shall not be unreasonably withheld, except that either party may assign this Agreement or any part thereof to any successor governmental agency legally performing the functions of the assigning party as its successor.

12. The Recitals are hereby incorporated into this Agreement.

13. The parties are and shall at all times remain, as to each other, wholly independent entities. Neither party shall have power to incur any debt, obligation, or liability on behalf of the other party or otherwise act on behalf of any other party as an

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agent except as expressly provided by this Agreement. No official, employee, agent, or officer of a party shall represent that he, she or anyone else from that party is in any manner an official, agent, employee or officer of the other party.

14. Each person executing this Agreement on behalf of a party warrants and represents that he or she has the authority to execute this Agreement on behalf of that party and has the authority to bind that party to the performance of its obligations hereunder.

15. Waiver by either party of any one or more of the conditions ofperformance under this Agreement shall not be a waiver ofany other condition of performance under this Agreement.

16. In the event of any dispute arising under this Agreement, the injured party shall notify the injuring party of its contentions by submitting a claim in writing, therefore. The injured party shall continue performing its obligations incurred herein so long as the injuring party commences to cure such injuring action within ten ( 10) days of service of such notice and completes the cure within forty-five 45) days after the notification, or such longer period as may be necessary or agreed upon by the parties to this Agreement.

17. If either party commences an action against the other arising out of or in connection with this Agreement, including the filing of a legal action to compel payment of the reimbursement, the prevailing party shall be entitled to recover reasonable attorney' s fees and legal costs from the losing party related to enforcement of the provisions of this Agreement.

18. Each party shall indemnify, defend and hold harmless the other party, including its officials, officers, employees, volunteers. agents, successors, assigns and those agents serving as independent contractors in the role of officials ( collectively Employees) from and against any and all claims ( including, but not limited to, claims for bodily injury, death or property damage), demands, liability, obligations, damages, actions, causes of action, proceedings, suits, losses, judgments, fines, liens, penalties, liabilities, costs and expenses of every kind and nature whatsoever ( including, but not limited to, consequential damages, attorneys' fees, experts' fees and other litigation expenses) ( collectively Claims) to the extent arising from or incident to the negligent, reckless or willful acts or omissions of the indemnifying party or any of its Employees arising out of the Agreement. However, in any case, the District will not indemnify, defend or hold harmless the City or its Employees from or against Claims arising from or incident to any acts or omissions of any consultant or contractor who works on or provides any service regarding these Improvements; provided that all contracts with consultants and contractors who provide any work or service regarding the Improvements contains language requiring the City and its directors, employees and agents to be indemnified and held harmless in the same manner as the District. The District expressly indemnifies the City for any and all claims related to public works labor requirements contained in the Public Contract Code and

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Labor Code, including bidding, bonding and the payment of prevailing wages.

This indemnity will survive termination or expiration of the Agreement.

19. The Improvements shall be constructed in conjunction with the SNRC and as a change order to the SNRC progressive design build contract, and all of the provisions ofthat Agreement dealing with insurance shall remain in full force and effect during construction of the Improvements

20. Neither party to this Agreement relies upon any warranty or representation not contained in this Agreement.
2 1 . Any notice, demand, request, consent, approval, or communication either party desires or is required to give to the other party or any person shall be in writing and either served personally or sent by prepaid,. First Class mail to the address set forth below. Notice shall be deemed communicated 48 hours from the time of mailing if mailed as provided in this section.

To City: City of Highland
Attn: Joseph Hughes, City Manager
27215 Base Line
Highland, CA 92346
Tel.: ( 909) 864- 6861
Fax: ( 909) 862- 3180
To District: East Valley Water District
Attn: John Mura, General Manager
31111 Greenspot Road
Highland, CA 92346
Tel.: ( 909) 889- 9501
Fax: ( 909) 889- 5732
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their respective and duly and duly authorized officers on the Effective Date listed below.

CITY OF HIGHLAND
rry MIlo Mayor/
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U, EAST
VALLEY WATER DISTRICT John
ura General
Manager/ CE Page
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ATTEST:

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Betty Hu
City Cler
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ATTEST:

John
Secretary to the Board bf Directors

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GRAPHIC SCALE
5TH STREET & DEL ROSA
AVENUE CURB RETURNS 1
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EXHIBIT " C"
Sterling Natural Resources Center
Joint Public Improvements
Listing of Shared Cost Items
Construction Management Services provided by Balfour Beatty will be shared based on apportionment of the amount for the respective bid schedules provided in the Specifications ( Contract Documents).

Following are the 50% shared items of the Improvements as mutually agreed by the City and District:

Construction Items

1. Prepare and maintain critical path method project schedule

2. Mobilization ( shall not exceed 5% of bid amount)

3. Implement and update Traffic Control Plan

4. Trench pavement repairs ( hot mix asphalt and aggregate base) for installation of traffic signal conduit.

5. Striping
Additional construction items may be added to the listing of shared cost items upon mutual agreement by the District and City. The percentage of share is also subject to change upon mutual agreement by the District and City ifit is determined an agency should be responsible for more than half the cost of shared work. -14-
AMENDMENT No. 1

PUBLIC IMPROVEMENT REIMBURSEMENT AGREEMENT
This first Amendment to the Agreement for .Public Improvement Reimbursement Agreement is made and entered into the 13tt' day of September 2022, by and between the City of Highland City") and East Valley Water District (" EVWD").

City and EVWD entered into an agreement to design and construct Public Improvements at 5th Street and Del Rosa Drive, on September 21, 2020. As per the Public Improvement Reimbursement Agreement the City authorized the amount of $316, 000. 00 for traffic signal modifications at the intersection of 5th Street and Del Rosa Drive.

The City and EVWD desire to amend the original agreement to include additional cost, in amount of $267,786.07, for the traffic signal, preparation oflegals and plats to secure permanent easements at the southwest and southeast corners, and increased shared cost for traffic control, slurry seal and striping.

THIS FIRST AMENDMENT ALTERS THE AGREEMENT AS FOLLOWS:

1. The maximum reimbursement amount under this first amendment to this agreement is Five hundred and eighty- three thousand seven hundred eighty- six dollars and seven cents 583, 786. 07) including additional Public Improvements and scope of services unless otherwise authorized in advance by the City in writing.

2. All other terms, conditions, and provisions of the original agreement to the extent not modified by this Amendment, shall remain in full force and effect.

Except as expressly modified above, the terms ofthe original agreement dated September 21, 2020, shall control the respective rights and obligations of the parties hereto. 1N WITNESS THEREOF, this Amendment has been executed by the Parties hereto:

SIGNATURES ON FOLLOWING PAGE
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CITY OF HIGHLAND EAST VALLEY WATER DISTRICT
Larry McCallon, Mayor
By:

Print Name
ATTEST: ATTEST:

Betty Hughes, City Clerk
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STAFF REPORT

TO THE CITY COUNCIL
DATE: September 13, 2022
FROM: Joseph A. Hughes, City Manager
PREPARED BY: Lawrence A. Mainez, Community Development Director SUBJECT: Alliance Residential Company — request for Parkland Acquisition & Park Facilities Development Impact Fee credit in accordance with Highland Municipal Code Section

16. 40. 200, Park and Recreational Facilities
RECOMMENDATION: Staff recommends that the City Council take the following action;

1. Approve Alliance Residential Company' s request for a fifty percent ( 50%) Parkland Acquisition & Park Facilities Development Impact Fee credit in the amount of
S1, 235. 374. 14
FISCAL IMPACT: In accordance with City Council Resolution Nos. 2021- 007, Alliance Residential Company is required to pay an estimated $ 12, 267, 921. 12 in Development Impact Fees ( DIFs) for its 546- unit Alliance multi -family residential development located in Planning Area 2 within the Greenspot Village & Marketplace Specific Plan on Greenspot Road ( inclusive of the City' s Parkland Acquisition & Park Facilities Development Impact Fee). The City' s Parkland Acquisition & Park Facilities Development Impact Fee portion is estimated at $ 2, 470, 748. 28 ( 546 units x $ 4, 525. 18 per unit for Park Facilities DIF).

According to information provided by Alliance Residential Company and the City' s Landscape Architect ( Community Works Design Group), the construction of ` private' active park areas within the Alliance project could cost an estimated $ 4, 687, 500 or 2, 216, 751. 72 more than the City' s DIFs collects for the City' s Parkland Acquisition & Park Facilities ( excluding the clubhouse construction costs).

Approved Motion
1) eniecl Ayes
Continued Noes
Tabled Abstain
Absent
A2A1_14
City Clerk
Second Agenda item No.

File No.

City Ma , ger
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City Council Meeting of
September 13, 2022
Alliance Residential Dev DIF Credit Request
The Highland Municipal Code Section 16.40.200 permits DIF credit up to 50% for proposed privately owned park and recreational facilities if the City determines it is in the public interest to allow such credit — and after certain standards have been met.

This Section of the Municipal Code also includes a park fee credit for the reasonable value of park and recreational improvements provided by the developer for land dedicated to the City for use as a public park as approved by the City. In the case of the Alliance Residential Development Company all park facilities will be owned and maintained by Alliance, and accessible only to the residents and their visitors.

The City' s parkland needs will be met and extensively exceeded by Alliance Development Company as required within their Greenspot Village & Marketplace Specific Plan entitlement documents, and the Alliance Residential Development Company will be maintaining all related park facilities. The estimated construction cost noted above is considered a reasonable value, and excludes the fees for utility connections, off -site street improvements, and the land value ( estimated at $ 224, 000 per acre, or $ 1, 400, 000. 00). Since there will be no dedication of land to the City for park development, no appraisal was requested to justify the estimated land value.

There will be no direct impacts to the City' s existing DIF Fund because the proposed planned park facilities as identified in the Alliance Development Documents exceeds the City' s Active Parkland Ratio, and the facilities will be constructed by Alliance Residential Development Company ( with extensive amenities as reviewed by the City' s Landscape Architect and the Highland Planning Commission, and City Council). In addition, there will be no on -going impacts to the City' s General Fund since Alliance Residential Development Company will maintain all park facilities in perpetuity.

PUBLIC NOTICE: No Public Notice is required prior to the City Council taking action on this item. However, the Agenda has been posted in the three ( 3) locations in accordance with City Council policy.

BACKGROUND/ PROPOSAL: The Alliance Residential Development project was approved on August 9, 2022 ( DRA- 22- 004, and SPR-22- 001). Design Review Application Planning Condition Number 11 ( DRA- 22- 004) stipulates that related recreational amenities be constructed in advance of the first occupancy.

In July 2022, Alliance Residential Development Company requested the City estimate the City' s Parkland Acquisition & Park Facilities Development Impact Fee credits for the Alliance Development project.
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City Council Meeting of
September 13, 2022
Alliance Residential Dev DIF Credit Request
The City' s Development Impact Fees in effective on April 28, 2021, were used to estimate the amount of DIF credits ( as adopted by City Council Resolution No. 2021- 007) ( see Attachment A — Development Impact Fees as adopted by City Council Resolution No. 2021- 007).

Parkland Acquisition & Park Facilities Development Impact Fee credit request The current Parkland Acquisition & Park Facilities Development Impact Fee is 4,525. 18 per unit ( City Council Resolution No. 2021- 007). The Alliance Development project will include 546 attached units; therefore, the total Parkland Acquisition & Park Facilities Development Impact Fee is $ 2, 470, 748. 28.

In accordance with the Highland Municipal Code Section 16.40.200( D)( 6)( h)( iv)(B), a subdivider or developer may receive a DIF credit against the requirements for the payment or the dedication of land for the reasonable value of park and recreation improvements provided by the subdivider or developer. As noted in the Fiscal Impact Section above, the proposed Alliance Development park facilities will be owned and maintained by the Alliance Development Company - which will be accessible only to the Alliance residents and their visitors.

Parkland Ratio (Quimby Act):

The City' s General Plan ( Conservation and Open Space Element — Chapter 5) establishes the City' s Park Ratio at 2. 5 acres per 1, 000 residents, which includes a Ratio of 2. 0 acres of developed park acreage and 0. 5 acre of undeveloped natural parkland. In California, park standards are provided by the Quimby Act of 1975, which gave cities the authority to pass parkland impact fees or dedication ordinances, recognizing the tremendous strain that local cities where under to provide enough parkland and open space for their residents. The City' s current Quimby fees and the City' s Development Impact Fee Resolutions are both updated periodically. As noted above, should the City Council deny the DIF credit request, Alliance Residential Development Company would be required to pay the City' s Park DIF fees listed in City Council Resolution 2021- 007 totaling $ 2, 407, 748. 28 ( 546 units @ $ 4, 525. 18 each).

The parkland requirement for the Alliance Development' s 546 units ( or 1, 884 new residents), as established by the City' s General Plan and implemented by its DIF Resolution, is 3. 76 acres of active park facilities. The proposed 6. 25 acres of active park facilities in the Alliance Development exceeds the City' s park facilities requirement while incorporating unique park standards inclusive of the landscaped Village Paseo that spans the entire length of the southern portion of the development to create a buffer 3 -3-
City Council Meeting of
September 13, 2022
Alliance Residential Dev DIF Credit Request
from the future retail uses. The proposed private club house will be approximately 7, 500 square feet and will include meeting rooms and a fully equipped gym.

In accordance with the Highland Municipal Code Section 16. 40. 200( D)( 6)( h)( iv)( B), Alliance estimates the construction of the required active and passive park areas within the project will cost an estimated $ 4, 687, 500. 00, or $ 2, 216,751. 72 more than the City's DIFs collected for the Parkland Acquisition & Park Facilities ( excluding fees for utility connections, off -site improvements, and land acquisition).

Standards required for fee credit:

Approval of such credit( s) shall be based on a determination by the City that it is in the public interest to allow such credit( s), and that all the following standards have been met or will be met prior to approval of the final map or development permit):

1. That yards, court area, setbacks, and other open space areas, which are required to be established and maintained by other provision of this title ( i.e., Highland Municipal Code), are satisfactorily incorporated into the project design.

Response: The Alliance Residential Development project was approved via a Design Review Application ( DRA-22-004) and consistent with the Greenspot Village and Marketplace Specific Plan which set forth unique and detailed development standards that help achieve a 546- unit master planned community with extensive recreational amenities that serve the residents and their visitors. The Alliance Residential Development requires that each residential unit within the project incorporate a small private yard/ courtyard for each individual housing unit in addition to the shared open space/park amenities.

2. Evidence is provided that the private ownership and maintenance of the area will be adequately provided for by recorded written agreement, covenants or restrictions.

Response: The Alliance Residential Development Company will be responsible for maintenance of all parkland landscaping, and recreational facilities, including the landscaping and trail located within the Village Paseo ( linear park and buffer for the retail uses along the southerly boundary).

3. That the use of the private area is restricted to park and recreational purposes by an open space easement or other instrument in favor of, or enforceable by, the City.

Response: The Alliance development project was approved with a condition restricting the fragmentation of ownership and maintenance by stipulating the residential construction shall be tied to and remain under 4 -4-
City Council Meeting of
September 13, 2022
Alliance Residential Dev DIF Credit Request
common ownership or subject to the establishment of an overall management entity (DRA-22- 004, Planning Condition No. 26).

4. That the proposed private area is reasonably adaptable for use for park or recreational purposes, taking into consideration such factors as size, shape, topography, geology, access, and location.

Response: The Alliance development park and recreational facilities locations were reviewed and approved by the City' s Landscape Architect, Planning Commission and City Council. The Alliance Development document includes unique design standards for the park facilities to serve residents and their visitors. The design and location of the proposed park facilities make it easy to access from all units within the project. Final park facility designs will also be reviewed through the plan check process by the City' s Landscape Architect before park construction permits are issued.

5. That the private recreational areas can be utilized by project residents in a manner which would reduce the need for public recreational facilities in proportion to the requested park land credit.

Response: The Alliance development recreational areas are within short walking distance from each of the 546 residential units ( connected by lineal parks and paved trails/pathways), and the project Developer will construct 6.25 acres of active parkland and pathway networks to serve the estimated 1, 883 residents. The proposed development will offer a variety of amenities for its residents and visitors, which include two ( 2) community pools and a gym inside the 7, 500 square foot clubhouse. Additionally, there will be two ( 2) tot lots, two ( 2) dog parks, and an entertainment terrace featuring bar-b- que grills and outside dinning space, a citrus garden, and a gaming lawn. The Developer' s cost to construct the park facilities is estimated at $ 4, 687,500. 00. The proposed acreage exceeds the 3. 76 acres envisioned by the City's General Plan and the City' s Land Use and Development Code Section 16. 40.200 ( Park and Recreational Facilities). The current Parkland and Park Facilities DIF is $ 2, 470, 748. 00, or $ 2, 216, 751. 72 less than the reasonable construction costs of the park and recreational facilities proposed for the Alliance Development project.

Constructing additional park facilities beyond the City' s minimum Quimby Ratio and being connected to shopping and employment opportunities within the Greenspot Village & Marketplace Specific and future regional trails along City Creek and Boulder Avenue helps reduce the need for the City to construct additional public recreational facilities in proportion to the requested parkland credit.
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City Council Meeting of
September 13, 2022
Alliance Residential Dev DIF Credit Request
Based on the required findings listed above, staff recommends the City Council consider Alliance Residential Development' s request for a 50% " Parkland Acquisition and Park Facilities" DIF credit in the amount of $ 1, 235, 374. 14 ($ 4, 525. 18 Park DIFs x 546 units = $ 2, 470,748. 2812).

Attachments:

A - Development Impact Fees ( City Council Resolution No. 2021- 007, April 28, 2021)
B - Alliance Parks & Recreation Facilities Exhibits
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ATTACHMENT A
Development Impact Fees Table
City Council Resolution No. 2021- 007, April 28, 2021)
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CITY OF HIGHLAND

DEVELOPMENT IMPACT FEES
Effective 4/ 28/ 21
Detached Attached Mobile Commercial Commercial/
Dwelling Dwelling Horne Lodging Office Industrial
Law Enforcement $ 284. 05 $ 449. 19 $ 243. 46 $ 188. 92 $ 0. 160 $ 0. 010 Facilities
Fire Suppression $ 1, 008. 86 $ 327.43 $ 1, 057. 84 $ 1, 603. 54 $ 0. 250 $ 0. 072 Facilities, Vehicles &
Equipment
Local Circulation $ 4, 957. 93 $ 3, 309. 38 $ 2, 595. 60 $ 2, 607. 84 $ 4. 65 $ 3. 478 System
Regional Circulation $ 14, 377.74 $ 9, 598.99 $ 7, 525. 84 $ 7, 563. 37 $ 13. 51 $ 10. 39 System
Regional Flood $ 1, 155. 73 $ 494. 57 $ 406. 86 $ 189. 42 $ 0. 26 $ 0. 32 Control Facilities
General Facilities, $ 1, 259. 33 $ 1, 259. 33 $ 1, 259. 33 $ 214. 11 $ 0. 298 $ 0. 298 Vehicles & Equipment
Library Facilities & $ 1, 158. 57 $ 1, 259. 33 $ 797. 57 N/ A N/ A N/ A Collection
Public Use ( Community $ 1, 444. 06 $ 1, 389. 46 $ 994. 88 N/ A N/ A N/ A Center Facilities)
4/ Park Land Acquisition & $ 4, 702. 87 $ 4, 525. 18 $ 3, 242. 07 N/ A N/ A N/ A Park Facilities Development
TOTAL: $ 30, 349. 14 $ 22, 468. 72 $ 18, 123. 45 $ 12, 367. 21 $ 19. 120 $ 14. 572 Notes:

1. Fees applicable City- wide except for East Highlands Ranch which is subject to a different fee schedule. Certain properties fronting Greenspot Road, between Gold Buckle Road and Santa Paula Street, must also pay a Greenspot Impact Fee ( Resolution No. 1994- 037).

2. Fees are per dwelling unit for residential, per lodging unit for commercial lodging, and per gross square footage for commercial or industrial.

3. Fee locked in at time of permit application. ( Reso. 2007- 060)

4. Fee collected at time of occupancy. ( Reso. 2018- 002 & 2018- 003)

5. Additional inclusionary housing fees of $3, 750 required per Resolution 2006- 020 & Ordinance 306.

6. Certain projects may be charged an impact fee based on the Alternative Cost Methodology for Regional Circulation ($ 383. 95 per trip -mile), and for Local Circulation ($ 156. 00 per trip - mile.)

IMPACT FEE FOR BUILDING EXPANSION
no charge for first 499 square feet of residential building expansion) DETACHED DWELLING $ 20. 232 per square foot
ATTACHED DWELLING $ 14. 979 per square foot
MOBILE HOME $ 12. 082 per square foot
COMMERICIAL LODGING $ 8. 245 per square foot
COMMERCIAL/ OFFICE $ 19. 120 per square foot
INDUSTRIAL $ 14. 572 per square foot
C:\ Users\ atafolla\ AppData\ Local\ Microsoft\ Windows\ INetCache\ Content. Outlook\ W5KVKE6J\ DIF Fees Handout 5- 3- 21. doc Last Updated 5/ 3/ 21
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ALLIANCE RESIDENTIAL CALIFORNIA
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ATTACHMENT B
Alliance Parks & Recreation Facilities Exhibits
-10-

6. 25 ac of Active Park
60, 113 sf)

1. 38 ac
70, 132 sf)

1. 61 ac
14, NN.0 4 4C117404SduuIb 7A4iti hmotioimingfblig z.V.Ittorai N 8, 712 sf)

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11 10, 670 sf)

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10, 019 sf)

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10, 454 sf)

0. 24 ac
-11-
DATE:

FROM:

PREPARED BY
SUBJECT:

RECOMMENDATION:

PUBLIC NOTICE:

STAFF REPORT

TO THE CITY COUNCIL
September 13, 2022
Joseph A. Hughes, City Manager
Lawrence A. Mainez, Community Development Director
Senate Bill 972 — Amendments to the California Retail Food Code to allow Cottage Food Operations and Microenterprise Home Kitchens to serve as a commissary or mobile support for food vendors, among other provisions ( pending approval by Governor Gavin Newsom).

Staff recommends the City Council provide direction
concerning Senate Bill 972.

No public notice is required prior to the City Council
providing direction to staff on the subject Senate Bill. However, the Agenda has been posted in the three ( 3) locations and on the City' s webpage pursuant to City Council policy.

BACKGROUND: Under existing law, pursuant to the California Food Code, there are established uniform health and sanitation standards for retail food facilities and requirements for local health agencies to enforce these provisions ( in the case of the City of Highland, the San Bernardino County Department of Public Health serves as the local health agency).

Existing law defines a " cottage food operation" as an enterprise that has no more that a specified amount in gross annual sales, is operated by a cottage food operator, and has no more that one ( 1) full-time employee within the registered or permitted area of a private home where the food products are prepared and packaged.

Existing law provides for the regulation of " microenterprise home kitchen operations" and limits those operations to serving no more than thirty ( 30) individual meals per day and not more that sixty ( 60) individual meals pre week and generate no more than 50,000 in verifiable gross annual sales.

Approved Motion Second Agenda Item No.

Denied Ayes
Continued Noes File No.

Tabled Abstain
Absent
City Clerk City Man ger
-1-
City Council Meeting of
September 13. 2022
SB 972 — Amendments to the California Retail Food Code
Senate Bill 972:

This Bill would authorize a cottage food operation or microenterprise home kitchen operation to serve as a commissary or mobile support unit for up to two ( 2) compact mobile food operations ( small food vendors) if the cottage food operation or microenterprise home kitchen operation permit ( issued by the San Bernardino County Department of Public Health) includes an endorsement from the local enforcement agency ( also the San Bernardino County Department of Public Health). Providing an endorsement means that the local enforcement agency finds that the cottage food operation or the microenterprise home kitchen operation is capable of supporting the preparation and storage of the food being sold from the small food vendor, and capable of storage and cleaning of related food vendor equipment.

The Bill would further authorize non -potentially hazardous foods prepared in a cottage food operation and a microenterprise home kitchen operation to be served from a small food vendor and allow limited food preparation.

The Bill would define " compact mobile food operation" as a mobile food facility that operates from an individual or from a pushcart, stand, display, pedal driven cart, wagon, showcase, rack, or other non -motorized conveyance.

League of California Cities:

The League of California Cities has not taken a formal position on the subject Bill beyond a " watch" position.

San Bernardino County Department of Public Health:

As of the time of drafting this report, staff was not able to determine whether the County of San Bernardino has taken a position on the subject Bill.

Bill Status:

As of September 6, 2022, staff was advised by the office of the Governor that the Bill is on the Governor' s desk for review. The Governor has until September 30, 2022, to sign or veto the Bill. If no action is taken by the Governor by September 30th the Bill will be considered vetoed.

Staff is bringing this Bill to the full City Council to determine their level of interest and obtain direction as appropriate.

Attachments: 1. Copy of Senate Bill No. 972 — California Retail Food Code 2 -2-
Attachment 1
-3-
Senate Bill No. 972
Passed the Senate August 30, 2022
Secretary of the Senate
Passed the Assembly August 24, 2022
Chief Clerk ofthe Assembly
This bill was received by the Governor this day
of . 2022, at . o' clock : Ms.

Private Secretary ofthe Governor
-4-
SB 972 — 2

CHAPTER
An act to amend Sections 113818, 113831, and 113868 of, and to add Chapter 11. 7 ( commencing with Section 114368) to Part 7 of Division 104 of, the Health and Safety Code, relating to retail food.

LEGISLATIVE COUNSEL' S DIGkST
SB 972, Gonzalez. California Retail Food Code.
1) Existing law, the California Retail Food Code ( the code), establishes uniform health and sanitation standards for, and provides for regulation by the State Department of Public Health of, retail food facilities and requires local health agencies to enforce these provisions. Existing law, for purposes of the code, defines a " cottage food operation" as an enterprise that has no more than a specified amount in gross annual sales, is operated by a cottage food operator, and has no more than 1 full-tirne employee within the registered or permitted area of a private home where the food products are prepared and packaged. Existing law provides for the regulation of microenterprise home kitchen operations and limits those operations to not serving more than 30 individual meals per day and not more than 60 individual meals per week and to no more than S50, 000 in verifiable gross annual sales, as adjusted for inflation. Existing law authorizes the local enforcement agency to decrease the limit on the number of individual meals prepared based on the food preparation capacity of the operation, This bill would authorize a cottage food operation or
microenterprise home kitchen operation to serve as a corntnissary or mobile support unit for up to 2 compact mobile food operations if the cottage food operation or microenterprise home kitchen operation permit includes an endorsement from the local enforcement agency that the cottage food operation or
microenterprise home kitchen operation is capable of supporting the preparation and storage of the food being sold from the compact mobile food operation and the storage and cleaning of the compact mobile food operation, The bill would authorize nonpotentially hazardous foods prepared in a cottage food operation to be served from a compact mobile food operation. The bill would define 93 -5-
3 — SB 972
compact mobile food operation" as a mobile food facility that operates from an individual or from a pushcart, stand, display, pedal -driven cart, wagon, showcase, rack, or other nonmotorized conveyance. The bill would require cornpact food operations to conduct only limited food preparation.
2) The code defines " limited food preparation" as food preparation that is restricted to specified activities, including dispensing or portioning ofnonpotentially hazardous food, slicing and chopping of food on a heated cooking surface during the cooking process, and holding, portioning, and dispensing foods that are prepared at a satellite food service or catering operation.

This bill would include in the definition of " limited food preparation" dispensing and portioning for immediate service to a customer of food that has been temperature controlled until immediately prior to portioning or dispensing, slicing and chopping ofnonpotentially hazardous food or produce that has been washed at an approved facility, hot and cold holding of food previously prepared at an approved permanent food facility, and reheating of food that has been previously prepared at an approved permanent food facility and held at the approved temperatures.
3) The code defines " mobile food facility" and regulates what types of food may be provided at a mobile food facility. The code requires mobile food facilities to meet specified health and safety standards, including access to warewashing sinks, restroorns, and handwashing facilities and required quantities of potable water.

This bill would require a compact mobile food operation to meet the applicable requirements of mobile food facilities, except as specified. The bill wouldexempt a compact mobile food operation that has 25 square feet or less of display area and sells only prepackaged, nonpotentially hazardous foods or whole uncooked produce from the code, except as specified. The bill would authorize a compact mobile food operation to display or sell food outdoors, if certain conditions are met, including, among other things, overhead protection provided above all food display areas.

The bill would require a compact mobile food operation that engages in the preparation of raw meat, raw poultry, or raw fish to meet additional specified requirements. The bill would authorize the enforcement agency to preapprove a standard plan for a standardized or mass-produced facility intended to serve as a coanpact mobile food operation and would authorize a compact 93 -6-
SB 972 — 4 —
mobile food operation to use that standardized or mass- produced facility after a final inspection, but without submitting plans for the individual unit. The bill would authorize the enforcement agency to collect a fee for the final inspection.
4) Existing law requires commissaries and other approved facilities servicing mobile support units, mobile food facilities, and vending machines to meet specified standards.

This bill would authorize an enforcement agency to approve a facility with nonconforming structural conditions ifthose conditions do not pose a public health hazard. The bill would also require an enforcement agency to approve the storage of a compact mobile food facility in a permitted permanent food facility if, after initial inspection, the agency determines that the compact mobile food facility is protected from contamination. The bill would authorize the enforcement agency to charge a fee to administer these provisions.
5) The code requires a food facility to have a valid permit to be open for business and authorizes the local enforcement agency to charge a fee for the permit or registration or related services.

This bill would authorize the local enforcement agency to reduce the fee for the permit, registration, or related service for an applicant seeking approval of a compact mobile food operation or related operations.
6) Under existing law, violation of the code is a misdemeanor, unless otherwise specified.

This bill would make violations of the code by an operator or employee of a compact mobile food facility or a sidewalk vendor punishable only by an administrative fine. Additionally, by making changes to the definition of various crimes and by adding new crimes under the code, this bill would impose a state -mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.
93 -7-
5 — SS 972
The people of the State of California do enact as follows:

SECTION I. Section 113818 of the Health and Safety Code is amended to read:
113818. ( a) " Limited foodpreparation" means food preparation that is restricted to one or more of the following:
1) Heating, frying, baking, roasting., popping, shaving of ice, blending, steaming or boiling of hot dogs, or assembly of nonprepackaged food.
2) Dispensing and portioning ofnonpotentially hazardous food or dispensing and portioning for immediate service to a customer of food that has. been temperature controlled until immediately prior to portioning or dispensing. .
3) Holding, portioning, and dispensing of any foods that are prepared for satellite food service by the onsite permanent food facility or prepackaged by another approved source.
4) Holding, portioning, and dispensing of any foods that are prepared by a catering operation.
5) Slicing and chopping of nonpotentially hazardous food or produce that has been washed at an approved facility or slicing and chopping of food on a heated cooking surface during the cooking process.
6) Cooking and seasoning to order.
7) Juicing or preparing beverages that are for immediate service, in response to an individual consumer order, that do not contain frozen milk products.
8) Hot and cold holding of food that has been prepared at an approved permanent food. facility.
9) Reheating of food that has been previously prepared at an approved permanent food facility and. held at temperatures required by this chapter.
b) " Limited food preparation" does not include any of the following:
1) Slicing and chopping potentially hazardous food, other than produce, unless it is on the heated cooking surface.
2) Thawing.
3) Cooling of cooked, potentially hazardous food.
4) Grinding raw ingredients or potentially hazardous food. 5) Washing of foods.
6) Cooking of potentially hazardous foods for later use_ 93 -8-
SB 972 — 6 —
7) Handling, manufacturing, freezing, processing, or packaging of milk, milk products, or products resembling milk products subject to licensing under Division 15 ( commencing with Section 32501) of the Food and Agricultural Code.

SEC. 2. Section 113831 of the Health and Safety Code is amended to read:
113831. ( a) " Mobile food facility" means any vehicle used in conjunction with a commissary or other permanent food facility upon which food is sold or distributed at retail, " Mobile food facility" does not include a " transporter" used to transport packaged food from a food facility, or other approved source to the consumer. b) " Single operating site mobile food facilities" means at least one, but not more than four, unenclosed mobile food facilities, and their auxiliary units, that operate adjacent to each other at a single location.
c) " Compact mobile food operation" means a mobile food facility that operates from an individual or from a pushcart, stand. display, pedal -driven cart, wagon, showcase, rack, or other nonmotorized conveyance.

SEC. 3. Section 113868 of the Health and Safety Code is amended to read:
113868. " Portable" means equipment that is capable of being lifted and moved or has utility connections that are designed to be disconnected or of sufficient length to permit the unit to be moved for cleaning, and does not exceed 100 pounds ( 46 kg) in weight or is otherwise designed to be mobile.

SEC, 4. Chapter 11. 7 ( commencing with Section 114368) is added to Part 7 ofDivision 104 of the Health and Safety Code, to read:

CHAPTER 11. 7. CoMPACT 1V1OBI.LE FOOD O1' EI2ATION
114368. A compact mobile food operation, as defined in
subdivision ( c) of Section 113831, shall meet the applicable requirements of Chapter 10 ( commencing with Section 114294). except as provided in this chapter.
114368. 1. ( a) Any compact mobile food operation with 25 square feet or less of display area from which only prepackaged nonpotentially hazardous food and whole uncooked produce is 93 -9-
7 — SB 972
sold is exempt from the requirements of this part, except that the facility shall comply with all of the following:
1) Sections 113980, 114047, 114049, 114390, 114393, 114397, and 114399.
2) Chapter 1 ( commencing with Section 113700).
3) Chapter 2 ( commencing with Section 113728).
b) ( 1) A local enforcement agency may inspect a compact mobile food operation that is exempt, as specified in subdivision a), during the facility' s hours of operation and other reasonable times on the basis of a consumer complaint or just cause. 2) For the purposes of determining compliance with this chapter, a compact mobile food operation that is not exempt as specified in subdivision (a) is subject to permitting and routine inspections or inspections on the basis of a consumer complaint or just cause.
c) The local enforcement agency may recover the costs of investigation and enforcement of this section, subject to any limitations in this part on fines issuable to compact mobile food operations.
114368. 2. ( a) Compact mobile food operations shall conduct only limited food preparation, as defined in Section 113818.

Notwithstanding any other provision of this part, a compact mobile food operation, as defined in subdivision ( c) of Section 113831, may display or sell food outdoors, if all of the following conditions are satisfied:
1) Overhead protection are provided above all food display areas.
2) Food items from the outdoor display are stored consistent with this chapter at all titres other than during business hours. 3) Outdoor displays comply with Section 113980 and have been approved by the enforcement agency if the compact mobile food operation is required to obtain a pertnit.
b) A compact mobile food operation shall not sell food other than nonpotentially hazardous prepackaged food or whole produce, or conduct any food preparation, unless it meets the applicable operational requirements of this chapter, including applicable requirements for integral equipment, handwashing, and restroom access.
c) Equipment that is required to be integral to a compact mobile food operation shall either be permanently attached to the primary 93 -10-
SB 972 — 8 ---
unit or securely fastened to the primary unit by means that would prevent unintentional removal. Equipment may be considered integral despite being portable or otherwise removable for cleaning, maintenance, or as part of its regular function.
d) A compact mobile food operation operating from an
individual shall not conduct any food preparation or sell foods other than nonpotentially hazardous prepackaged food or whole produce. 114368.3 ( a) ( 1) A permitted cottage food operation or microenterprise home kitchen operation may serve as a commissary or mobile support unit for up to two compact mobile food operations if the cottage food operation or microenterprise home kitchen operation permit includes an endorsement from the local enforcement agency that the cottage food operation or
microenterprise home kitchen operation is capable of supporting the preparation and storage ofthe food being sold from the compact mobile food operation and the storage and cleaning of the compact mobile food operation.
2) Transactions at a compact mobile food operation operated by a cottage food operator shall constitute " direct sales" for the purposes of paragraph (4) of subdivision (b) of Section 113758. 3) Transactions at up to two compact mobile food operations operated by a cottage. food operator shall not count toward the annual gross sales restrictions in Section 113758 applicable to cottage food operations ifthe governing body has authorized this action.
4) Nonpotentially hazardous foods prepared in a cottage food operation may be served from a compact mobile food operation. 5) Food prepared in a microenterprise home kitchen operation may be served from a compact mobile food operation operated by the microenterprise home kitchen operation pernnitholder. 6) The meal and gross annual sales limitations in paragraphs 7) and ( 8) of subdivision ( a) of Section 113825 do not apply to the sale of nonpotentially hazardous food or produce for up to two compact mobile food operations operated by the microenterprise home kitchen operation ifthe governing body has authorized this action.
7) With the authorization of the governing body and if the enforcement agency determines that the operation does not pose a public health hazard, a permitted microenterprise home kitchen 93 -11-
9 - SB 972
operation may serve as a commissary for up to two compact mobile food operations. The meal and gross annual sales limitations in paragraphs ( 7) and ( 8) of subdivision ( a) of Section 113825 apply unless the governing body sets a higher meal and income limitation. 8) The governing body of a local jurisdiction that permits microenterprise home kitchen operations pursuant to Section 114367, may set the meal and income limitations in paragraphs 7) and ( 8) of subdivision (a) of Section 113825 at a higher level than provided in those paragraphs for microenterprise home kitchen operations that operate inconjunction with a compact mobile food operation. Notwithstanding this subdivision, the levels in effect. by statute or ordinance, as ofJanuary. 1, 2023, shall remain in effect until changed by the local jurisdiction.
b) ( 1) Existing pennanent food facilities may be permitted to support the operations and storage of compact mobile food operations pursuant to the requirements of this section. 2) Notwithstanding any other provision of this part, upon an evaluation verifying that a permanent food facility satisfies subdivisions ( a) to (f), inclusive, of Section 114326, an enforcement agency shall approve the use ofa permitted permanent food facility to satisfy the requirements of Section 114295 for a compact mobile food operation.
3) Notwithstanding any other provision of this part, upon an evaluation verifying that the compact mobile food operation will be stored in a manner that protects the compact mobile food operation from contamination, an enforcement agency shall approve .the storage of a compact mobile food operation in a permitted permanent food facility.
4) Except when a determination is made by the enforcement agency that any nonconfonning structural conditions pose a public health hazard, the enforcement agency may approve a facility to support operations of a compact mobile food operation.
5) Plan submission shall not be required for an existing permanent food facility to support the operations of a compact mobile food operation when a determination is made by the local enforcement agency that. the current operation and structural facilities of the permanent food facility can successfully provide the necessary functions of a commissary for a compact mobile food operation.
93 -12-
SB 972 --- 14 —
6) An approved permanent food facility that will be used for cooling of food for a compact mobile food operation shall be approved by the. enforcement agency for cooling.
c) ( l) Unless prohibited by local ordinance, an enforcement agency may allow the use of a private home for the storage of a compact mobile food operation ifit determines, after an evaluation, that storage in the private home would not pose a public health hazard and that the compact mobile food operation will be stored in a manner that protects the compact mobile food operation from contamination.
2) No more than two compact mobile food operations may be stored in a private home unless the enforcement agency finds that storage of more than two compact mobile food operations in a private home would not pose a public health hazard.
3) The storage area within the home shall be designated and clearly identified upon approval and shall not be relocated without the review and approval of the local enforcement agency. 4) Prepackaged nonpotentially hazardous food, whole fruits, and whole vegetables may be stored in the home prior to sale or preparation of that food in a compact mobile food operation. 5) Food prepared in a private home shall not be used or offered for sale on a compact mobile food operation, unless it is a perrnitted cottage food operation or microenterprise home kitchen operation pursuant to subdivision ( a). Violation of this paragraph may result in suspension or revocation of the permit to operate the compact mobile food operation.
6) For purposes of determining compliance with this
subdivision, a local enforcement agency may access, for inspection purposes, a private home where a compact mobile food operation is stored only ifthe representative has, on the basis of a consumer complaint, reason to suspect that the home is being used for food preparation, food storage, or unauthorized storage of utensils or other food facility equipment in violation of this subdivision. d) At the end of the operating day, potentially hazardous food that is prepared on or served from a compact mobile food operation shall be destroyed in a manner approved by the enforcement agency.
e) For the purposes ofthis chapter, an endorsement by the local enforcement agency shall be a documented. and recorded approval of compliance with applicable sections. An endorsement may 93 -13-
11— SB 972
include an inspection or evaluation, but shall not require a registration or permit.
f) The enforcement agency may collect a fee for any permit, endorsement, inspection, or evaluation issued or conducted pursuant to this chapter in an amount that does not exceed the reasonable administrative costs of the enforcement. agency. 114368. 4. ( a) Except as provided in subdivision ( b), a compact mobile food operation that is approved for limited food preparation that prepares raw meat. raw poultry, or raw fish is subject to warewashing and handwashing facility requirements as outlined in Chapter 10 ( commencing with Section 114294).
b) ( 1) A compact mobile food operation may satisfy the requirements of Sections 114313 and 114314 by demonstrating access to a permitted auxiliary conveyance containing the necessary handwashing and warewashing sinks when operating at a
site -specific location. The auxiliary conveyance may be operated by the same or a different permitholder. An enforcement agency may permit an auxiliary conveyance to serve multiple compact mobile food operations operating in close proximity to the auxiliary conveyance, as determined by the enforcement agency.
2) If an auxiliary conveyance is not operated by the
permitholder of the compact mobile food operation, the operator of the auxiliary conveyance shall obtain a permit from the enforcement agency to operate the auxiliary conveyance and service compact mobile food operations.
3) The permit application for an auxiliary conveyance not operated by a compact mobile food operation shall include a site plan and shall be submitted to the enforcement agency at least two weeks prior to the operation of any food facility in conjunction with the auxiliary conveyance.
4) The site plan for an auxiliary conveyance not operated by a compact mobile food operator shall show the proposed location and storage of the auxiliary conveyance, the proposed locations of any food facilities that will utilize the auxiliary conveyance, restrooms, refuse containers, potable water supply faucets, waste water disposal facilities, and all shared warewashing and handwashing facilities.
c) A compact mobile food operation that is approved for limited food preparation that does not prepare raw meat, raw poultry, or raw fish shall do one of the following:
93 -14-
SB 972 — 12—
1) Provide a three -compartment sink as described in subdivision a) of Section 114313.
2) Provide at least one two -compartment sink that complies with subdivision ( e) of Section 114099. 3.
3) Provide a one -compartment sink with at least one integral metal drainboard, an adequate supply of spare preparation and serving utensils to replace those that become soiled or contaminated, and warewashing facilities that comply with subdivision ( a) of Section 114313 in reasonable proximity to, and readily accessible for use by, food employees at all times. 4) Maintain an adequate supply of spare preparation and serving utensils on the compact mobile food operation to ensure that utensils used for potentially hazardous foods .are replaced with clean and sanitized utensils every four hours or as needed to replace those that become soiled or contaminated. A compact mobile food operation that complies with this paragraph is not required to provide a warewashing sink.
d) A compact mobile food operation that is approved for limited food preparation that does not prepare raw meat. raw poultry: or raw fish shall provide an integral handwashing sink with at least five gallons of potable water to operate with a potable water tank with a capacity of at least five gallons for handwashing. e) An enforcement agency may permit a compact mobile food operation to operate with an integral water tank smaller than specified under subdivision ( c) or ( d) of Section 114217 if the enforcement agency finds that the compact mobile food operation is operating in an area and manner that would allow for replenishment of the water supply as needed during operations. f) A compact mobile food operation shall submit., to the enforcement agency, written operating procedures that include the process offilling potable water tanks ifit will operate with a water tank with a capacity of less than five gallons specified in subdivisions ( c) and ( d) of Section 114217.
g) A compact mobile food operation that does not prepare raw meat, raw poultry, or raw fish is exempt from any provision ofthis part requiring it be equipped with a water heater or otherwise be supplied with warm water.
114368. 5. ( a) Upon receipt ofcomplete, easily readable plans drawn to scale, and specifications satisfactory to the enforcement agency, an enforcement agency may preapprove a standard plan 93 -15-
13 - SB 972
for a standardized or mass- produced individual unit intended to serve as a compact mobile food operation.
b) A person proposing to operate a compact mobile food
operation who has acquired an individual unit for which the construction ofthe compact mobile food operation has been built to approved plans shall not be required to submit plans for the individual unit, but instead shall be subject to a final inspection of the compact mobile food operation to ensure that the individual unit and proposed method of operation conform to the standard plans preapproved pursuant to subdivision ( a). The permit application for a compact mobile food operation utilizing a preapproved individual unit shall include a certification that the applicant has not substantially altered the individual units from the plans preapproved pursuant to subdivision (a). The enforcement agency may collect a fee in the final inspection in an amount that does not exceed the reasonable administrative costs to the enforcement agency.
c) The repair of equipment or integral fixtures on a compact mobile food operation or the. replacement ofequipment and fixtures on a compact mobile food operation with substantially similar equipment or fixtures is not a remodel, and the repair or replacement of equipment or fixtures does not require the submission of plans to an enforcement agency.
d) A local governing body may waive or reduce a fee for the permit, registration, or related services for an applicant seeking approval of a compact mobile food operation or related operations. e) All new and replacement food -related and utensil -related equipment for a compact mobile food operation shall be certified or classified for sanitation by an American National Standards Institute accredited certification program, or a certification program accredited by another accreditation body recognized by the enforcement agency as providing substantially similar food safety and operational standards. In the absence ofan applicable certified sanitation standard, food -related and utensil -related equipment shall be evaluated for approval by the enforcement agency. f) All new and replacement electrical appliances for a compact mobile food operation shall meet applicable Underwriters Laboratories standards for electrical equipment as determined by an American National Standards Institute accredited certification program or a certification program accredited by another 93 -16-
SB 972 — 14 —
accreditation body recognized by the enforcement agency as providing substantially similar food safety and operational standards.
114368.6. A compact mobile food operation is exempt from Section 113947. 1 ifthe operator and any individual who is involved in the preparation, storage, or service of food for the compact mobile food operation has obtained a food handler card that. meets the requirements of Section 113948.
114368. 7. A compact mobile food operation is exempt from the requirements of Section 114315 ifthe compact. mobile food operation operates with multiple employees or operators and the compact mobile food operation may remain operable by a single individual so that employees or operators may alternate use of a restroom.
114368. 8. ( a) Notwithstanding subdivision ( a) of Section 114395, a violation of this part by an operator or employee of a compact mobile . food operation is punishable only by an administrative fine.
b) Aviolation ofany provision ofthis part or regulation adopted pursuant to this part by an operator or employee of a compact mobile food operation or a sidewalk vendor shall not be punishable as an infraction or misdemeanor, and an operator or employee of a compact mobile food operation or a sidewalk vendor alleged to have violated any of those provisions is not subject to arrest except when independent grounds for that arrest exist under law. c) Except as provided in paragraph ( d), each offense by an operator or employee of a compact mobile food operation or a sidewalk vendor may only be punished by a fine consistent with the following:
1) A notice of violation detailing the violation, including the applicable provision of this part or regulation adopted pursuant to this part.
2) An administrative fine not exceeding one hundred dollars 100) for a second violation within one year ofthe first violation. 3) An administrative fine not exceeding two hundred dollars 200) for a third violation within one year of the first violation. 4) An administrative fine not exceeding five hundred dollars 500) for each additional violation within one year of the first violation.
93 -17-
15 — SB 972
d) If a compact mobile food operation is required to obtain a permit from the enforcement agency, operating without a permit may be punishable by a fine not to exceed three times the cost of the permit in lieu of the administrative fines referenced in subdivision (c). An enforcement agency shall not issue any fines in excess of the amounts allowable pursuant to subdivision ( c) prior to January 1, 2024.
e) ( 1) When assessing an administrative fine for a first-time offense, pursuant to this section, the hearing officer shall take into consideration the person' s ability to pay the fine. The enforcement agency shall provide the person with notice of their right to request an ability -to -pay determination and shall make available instructions or other materials for requesting an ability -to -pay determination. The person may request an ability -to -pay determination at adjudication or while the judgment remains unpaid, including when a case is delinquent or has been referred to a comprehensive collection program.
2) If the person meets the criteria described in subdivision ( a) or (b) of Section 68632 of the Government Code, the enforcement agency shall accept, in full satisfaction, 20 percent of the administrative fine imposed. pursuant to this section.
3) The enforcement agency may waive the administrative fine or may offer an alternative disposition.

SEC. 5. No reimbursement is required by this act pursuant to Section 6 ofArticle XIiIB of the California Constitution because the only. costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime of infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
93 -18-
Approved ) 092
Goi' entor
-19-
DATE:

FROM:

PREPARED BY:

STAFF REPORT

TO THE CITY COUNCIL
September 13, 2022
Joseph A. Hughes, City Manager
Betty Hughes, MMC, City Clerk
SUBJECT: City Manager Report and Comments
Work Program, Regional/ Legislative/ Development Issues, Subcommittees, etc.)
RECOMMENDATION: Discussion and possible action.

Approved Motion Second Agenda Item No.

Denied Ayes
Continued Noes
Tabled Abstain
Absent
1W1, L
City Clerk
File No.

City Manager
-1-
DATE:

FROM:

PREPARED BY:

SUBJECT:

STAFF REPORT

TO THE CITY COUNCIL
September 13, 2022
Joseph A. Hughes, City Manager
Betty Hughes, MMC, City Clerk
Council Member Comments
Agency/ Committee!AB1234 Reports, District Updates, etc.) RECOMMENDATION: Discussion and possible action.

Approved Motion Second Agenda item No.

Denied
Continued
Tabled
Ayes
Noes File No.

Abstain
Absent
City Clerk City Manager
-1-