Norco City Council
November 1, 2023

AGENDA
City Council
Wednesday, November 1, 2023
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALL TO ORDER 4:30 PM
ROLL CALL Robin Grundmeyer, Mayor
Kevin Bash, Mayor Pro Tem
Katherine Aleman, Council Member
Berwin Hanna, Council Member
Greg Newton, Council Member

WORKSHOP
Department of Toxic Substances Control (DTSC) update on Wyle Lab clean up.

CLOSED SESSION

CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (3 potential cases)

CONFERENCE WITH LABOR NEGOTIATOR
Agency designated representative: City Manager Sassoon
Employee organization: Utility Workers Union of America, AFL-CIO Local 606

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 1004 Parkridge (APN 119-070-021)
Agency negotiator: City Manager
Negotiating parties: City of Norco and NewCastle Partners, INC Under negotiation: Price and terms of payment

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code §54957
Title: City Manager
RECONVENE PUBLIC SESSION 7:00 PM

REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
PLEDGE OF ALLEGIANCE Council Member Kevin Bash
INVOCATION Pastor Michelle Ehrenberg
The Redeemer's Community Church
City Council Agenda - November 1, 2023
PRESENTATIONS Proclamations:

Veterans and Military Families Month
National Native American Heritage
Month

1. CITY COUNCIL REPORTS ON REGIONAL BOARDS

2. CONSENT CALENDAR
All items listed under the Consent Calendar are considered to be routine and may be enacted by one motion. Prior to the motion to consider any action by the presiding governmental body, any public comments on any of the Consent Items will be heard. There will be no separate action unless members of the governmental body or the audience request specific items be removed from the Consent Calendar. Items removed from the Consent Calendar will be separately considered under Item 3 of the Agenda.

2.A. Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.

RECOMMENDATION:

Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.

Staff Report - Pdf

2.B. Approval of City Council Regular Meeting Minutes
RECOMMENDATION:

Approve the City Council Regular Meeting Minutes of October 18, 2023.

Staff Report - Pdf

2.C. Agreement with the County of Riverside for the Community Development Block Grant (CDBG) Program for Fiscal Year 2023-24
RECOMMENDATION:

Approve Agreement with the County of Riverside for the Community Development Block Grant (CDBG) funds in the amount of $73,282 for Fiscal Year 2023-24 and authorize the Mayor to sign and execute supplemental agreement for CDBG funds.

Staff Report - Pdf

City Council Agenda - November 1, 2023

2.D. Acceptance of Bids and Award of Contract for the Sundance Park Boundary Wall Restoration Project, and appropriation of Measure R Funds for the Proposed Project
RECOMMENDATION:

Accept bids and award the contract to Act 1 Construction, Inc. for the Sundance Park Boundary Wall Restoration Project in the amount of $92,502, and authorize the City Manager to approve contract change orders up to 10% of the original contract; Appropriate Measure R Funds in the amount of $120,000 to fund the cost of the project that includes a 10% contingency, design and incidental costs.

Staff Report - Pdf

2.E. Approval of an additional appropriation to fund the Professional Legal Services Contract with Downey Brand, regarding the Riverside Transmission Reliability Project (RTRP)
RECOMMENDATION:

Authorize the Finance Director to move $80,000 from undesignated reserves into the General Fund and appropriate an additional $80,000 for the Downey Brand contract.

Staff Report - Pdf

2.F. Acceptance of the The Barn IT Infrastructure Project as Complete (Project No. 54111.6)
RECOMMENDATION:

Accept The Barn IT Infrastructure Project as complete and authorize the City Clerk to file a Notice of Completion with the County of Riverside.

Staff Report - Pdf

2.G. Approval of a Resolution Ending the Proclamation of Local Emergency Due to Tropical Cyclone Hilary
RECOMMENDATION:

Approve Resolution No. 2023-66 Ending the Proclamation of Local Emergency Due to Tropical Cyclone Hilary.

Staff Report - Pdf

City Council Agenda - November 1, 2023

2.H. Fiscal Year 2022-23 Year-End Budget to Actual Report RECOMMENDATION:

Receive and file Fiscal Year 2022-23 Year-End Budget to Actual Report Staff Report - Pdf

3. ITEM(S) PULLED FROM CONSENT CALENDAR

4. PUBLIC COMMENTS
This is the time when persons wishing to address the presiding governmental body regarding the Consent Calendar, Legislative Matters or items within the subject matter jurisdiction of the legislative body. Please submit a speaker card to the Meeting Clerk. Please limit comments to three minutes or less. The Ralph M. Brown Act limits the governmental body’s ability to respond to comments on non-agendized matters at the time such comments are made. The governmental body shall not discuss or act relative to any general public comment.

5. LEGISLATIVE MATTERS
No new evidence will be heard from the public as the public hearing has been closed regarding the items listed. If new substantial amendments are made to the Ordinance at this time, the Ordinance will require a "Third" reading and public comments will be allowed.

5.A. Ordinance No. 1106: Second Reading, Zone Code Amendment 2023-03 (City of Norco): A City-Initiated proposal to amend Norco Municipal Code Title 18 – “Zoning”, amending Chapter 18.65 – “Residential Density Bonus Provisions” for compliance with State law.

RECOMMENDATION:

Adopt Ordinance No. 1106, Second Reading, approving Zone Code Amendment 2023-03
Staff Report - Pdf

6. CITY COUNCIL / STAFF COMMUNICATIONS

7. ADJOURNMENT
In compliance with the Americans with Disabilities Act, any person who requires a modification or accommodation in order to participate in this meeting is encouraged to contact the City Clerk’s Office at (951) 270-5623 or [email protected] at least 48 hours prior to the meeting so that reasonable arrangements can be made to ensure accessibility. Staff reports are on file in the City Clerk’s Office.

Any writings or documents provided to a majority of the presiding governmental body regarding any item on this agenda will be available for public inspection at the City Clerk’s Office during normal business hours at Norco City Hall, located at 2870 Clark Avenue in Norco. The meeting is recorded.

City Council

STAFF REPORT
Date: November 1, 2023 Agenda Item:

2.A
To: Honorable Mayor and City Council Members
Prepared By: Dana Roa, City Clerk
Department: City Clerk
SUBJECT:

Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.

RECOMMENDATION:

Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.

REVIEWED AND APPROVED BY:

City Council

STAFF REPORT
Date: November 1, 2023 Agenda Item:

2.B.

To: Honorable Mayor and City Council Members
Prepared By: Dana Roa, City Clerk
Department: City Clerk
SUBJECT:

Approval of City Council Regular Meeting Minutes
RECOMMENDATION:

Approve the City Council Regular Meeting Minutes of October 18, 2023.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Draft City Council - Oct 18 2023 - Minutes (1)

DRAFT - MINUTES
City Council
Wednesday, October 18, 2023
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALLED TO ORDER 6:00 PM
ROLL CALL Robin Grundmeyer, Mayor
Kevin Bash, Mayor Pro Tem
Katherine Aleman, Council Member
Berwin Hanna, Council Member
Greg Newton, Council Member

CLOSED SESSION
Mayor Grundmeyer adjourned to Closed Sessions at 6:01 p.m. City Attorney Burns ready the Closed Session items.

CONFERENCE WITH LABOR NEGOTIATOR
Agency designated representative: City Manager Sassoon
Employee organization: Utility Workers Union of America, AFL-CIO Local 606

CONFERENCE WITH LEGAL COUNSEL - REAL PROPERTY NEGOTIATION Property: APN: 152-060-011
City Negotiator: City Manager Lori Sassoon
Under Negotiation: Price and Terms

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Silverlakes Sports Park
Agency negotiator: City Manager; Finance Director: Planning Director Negotiating parties: City of Norco and Balboa Management Group LLC.

Under negotiation: Price and Terms

PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code §54957
Title: City Manager
RECONVENE PUBLIC SESSION 7:01 PM

REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
City Attorney Burns reported that there were no reportable actions on the items heard.

The item related to the City Manager Performance Evaluation was continued to the end of the meeting.

City Council Minutes - October 18, 2023
PLEDGE OF ALLEGIANCE Mayor Grundmeyer
INVOCATION Council Member Katherine Aleman
PRESENTATIONS Council Member Katherine Aleman and the
City Council recognized the Legends FC
Girls 2014 Soccer Team for their
outstanding performance this season.

1. CITY COUNCIL REPORTS ON REGIONAL BOARDS
The Mayor, Mayor Pro Tem and Council Members provided reports on their recent individual participation in committees, commissions, regional boards and community organizations.

2. CONSENT CALENDAR
a) Approval of Consent Calendar
Council Member Newton pulled Item 2.D. for discussion.

M/S BASH/ALEMAN Approve remainder of Consent Calendar as presented. The Motion was carried by the following roll call vote:

AYES: GRUNDMEYER, BASH, ALEMAN, HANNA, AND NEWTON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

2.A. Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only.

Action: Waived reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.

2.B. Approval of City Council Regular Meeting Minutes
Action: Approved the City Council Regular Meeting Minutes of September 6 and 18, and October 4, 2023

City Council Minutes - October 18, 2023

2.C. Recap of Actions Taken by the Planning Commission at its Meeting Held on October 11, 2023
Action: Received and filed the recap of actions taken by the Planning Commission at its meeting held on October 11, 2023.

2.E. Quarterly Investment Report for Quarter Ended September 30, 2023 Action: Received and filed the Quarterly Investment Report for the Quarter Ended September 30, 2023.

2.F. Recycled Water Grant Application
Action: Approved Resolution 2023-63 authorizing the City Manager or their designee to sign and file, for and on behalf of the City, a Financial Assistance Application for a financing agreement from the State Water Resources Control Board.

3. ITEM(S) PULLED FROM CONSENT CALENDAR

2.D. Measure R Citizens' Oversight Committee Policy and Procedures for Additional Budget Appropriation Requests

Mayor Grundmeyer stated she wanted to recognize her "No Vote" from the previous discussion on this topic.

Council Member Newton stated he wanted to reconsider the decision made on June 19, 2023, and made a motion to support Option Number 2 "this option requires additional appropriations to be reviewed and recommended by the Committee before City Council consideration", when over the 10% contingency.

Council Member Aleman had questions and concerns about the 10% contingency.

City Manager Sassoon provided clarity and a suggestion to a new option.

Following further discussion, a motion was made to support Option Number 2 "this option requires additional appropriations to be reviewed and recommended by the Committee before City Council consideration".

M/S NEWTON/GRUNDMEYER Amend and Adopt Resolution 2023-65 Measure R Citizens' Oversight Committee Policy and Procedures for Additional Budget Appropriation Requests, removing "The City Council will approve additional

City Council Minutes - October 18, 2023
Measure R appropriations with follow-up communication to the Measure R Committee" and replace with "Additional appropriations are to be reviewed and recommended by the Measure R Committee before City Council consideration of the adjustment". The Motion was carried by the following roll call vote:

AYES: GRUNDMEYER, BASH, ALEMAN, HANNA, AND NEWTON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

4. PUBLIC COMMENTS
Bill Naylor provided an update on volunteer work being done on the trails. He stated there is a problem with the caps being broken and keeping up with the supply of caps.

5. LEGISLATIVE MATTERS

5.A. Ordinance No. 1105, Second Reading: Amending Norco Municipal Code Section

5.36 “Apiaries” to Modify Beekeeping Requirements on Residential Properties.

Code Amendment 2023-05.

M/S BASH/ALEMAN Adopt Ordinance No. 1105, Second Reading (City of Norco):

An Ordinance of the City Council of the City of Norco, California, Amending the Norco Municipal Code Section 5.36 “Apiaries” to modify beekeeping requirements on residential properties, approve Code Amendment 2023-05. The Motion was carried by the following roll call vote:

AYES: GRUNDMEYER, BASH, ALEMAN, HANNA, AND NEWTON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

6. DISCUSSION / ACTION ITEM(S)

6.A. Adoption of a Resolution by the City Council adopting and authorizing an Accessory Dwelling Unit (ADU) Legalization Pilot Program.

Development Director Robles presented report on the Accessory Dwelling Unit Legalization Pilot Program.

Council Members Newton and Aleman had questions and concerns that were addressed by staff.

City Council Minutes - October 18, 2023
Mayor Grundmeyer opened Public Comment.

Jodie Webber spoke regarding the program and the effects it could have on current applicants and future applicants.

Mayor Grundmeyer closed Public Comment.

Council Members Hanna, Newton and Aleman stated their concerns and asked questions.

Mayor Pro Tem Bash stated his concerns with legislation and why this would benefit the city.

Mayor Grundmeyer discussed the issues and discussed that this will be a tool to protect the mission of the City to stay rural and keep large lots.

Community Development Director Robles, City Attorney Burns and City Manager Sassoon answered questions and addressed concerns.

Following discussion motion was made.

M/S ALEMAN/BASH Approve and adopt Resolution 2023-64, adopting and authorizing the Accessory Dwelling Unit (ADU) Legalization Pilot Program. The Motion was carried by the following roll call vote:

AYES: GRUNDMEYER, BASH, ALEMAN, AND HANNA
NOES: NEWTON
ABSENT: NONE
ABSTAIN: NONE

6.B. Authorization of a letter to the Keeper of the National Register regarding Norco's nomination to expand the Lake Norconian Club Historic District

City Manager Sassoon presented a report regarding authorization of a letter to the Keeper of the National Register regarding Norco's nomination to expand the Lake Norconian Club Historic District.

Mayor Pro Tem Bash gave the past history of the progress of this item.

Council Member Aleman had questions which were addressed.

Mayor Grundmeyer opened Public Comments.

City Council Minutes - October 18, 2023
Jodie Webber spoke in support of the request for a letter and thanked Council for continuing to fight.

Su Bacon stated she supported the letter going to the keeper and gave a history of her involvement with LNCF.

Mayor Grundmeyer closed Public Comments.

Following further discussion, a motion was made to support the letter to be prepared by City Manager Sassoon with review of full City Council prior to it being submitted.

M/S ALEMAN/GRUNDMEYER Authorize the City Manager to work with Mayor Pro Tem Bash to finalize a letter expressing Norco's concerns regarding the process for consideration of the Lake Norconian Club Historic District and requesting that the denial of the nomination be overturned. Final letter to be reviewed by full City Council prior to submittal. The Motion was carried by the following roll call vote:

AYES: GRUNDMEYER, BASH, ALEMAN, HANNA, AND NEWTON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

7. PUBLIC HEARING(S)

7.A. Ordinance No. 1106: First Reading, Zone Code Amendment 2023-03 (City of Norco): A City-Initiated proposal to amend Norco Municipal Code Title 18 – “Zoning”, amending Chapter 18.65 – “Residential Density Bonus Provisions” for compliance with State law.

Community Development Director introduced item and introduced Attorney Erika Vega to present details.

Erika Vega presented a detailed PowerPoint related to the proposed Density Bonus Ordinance.

Mayor Grundmeyer and Council Members Aleman and Hanna had questions and concerns that were addressed by Attorney Vega.

Mayor Grundmeyer opened the Public Hearing.

There were no public comments at this time.

City Council Minutes - October 18, 2023
Mayor Grundmeyer closed the Public Hearing.

Following further discussion, a motion was made.

M/S GRUNDMEYER/HANNA Adopt Ordinance No. 1106, First Reading, approving Zone Code Amendment 2023-03 The Motion was carried by the following roll call vote:

AYES: GRUNDMEYER, BASH, ALEMAN, HANNA, AND NEWTON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

8. CITY COUNCIL / STAFF COMMUNICATIONS

Council Member Aleman thanked CalFire for a great community event.

Mayor Grundmeyer adjourned to Closed Sessions at 9:01 p.m. in honor of Sandy Macgregor, the first woman to be appointed to the Planning Commission and a deeply valued and loved community member.

9. ADJOURNMENT
Mayor Grundmeyer reconvened the regular session at 10:27 p.m.

The City Attorney announced that there was no report action taken in Closed Session.

Mayor Grundmeyer adjourned the meeting at 10:28 p.m.

_________________________________
Dana Roa, CMC
City Clerk

City Council

STAFF REPORT
Date: November 1, 2023 Agenda Item:

2.C.

To: Honorable Mayor and City Council Members
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:

Agreement with the County of Riverside for the Community Development Block Grant (CDBG) Program for Fiscal Year 2023-24
RECOMMENDATION:

Approve Agreement with the County of Riverside for the Community Development Block Grant (CDBG) funds in the amount of $73,282 for Fiscal Year 2023-24 and authorize the Mayor to sign and execute supplemental agreement for CDBG funds.

SUMMARY:

In order to receive Community Development Block Grant funds as a “cooperating city” in the County of Riverside, the City of Norco is required to approve a Supplemental Agreement to administer the approved programs and projects for Fiscal Year 2023-24 for reimbursement.

BACKGROUND:

On September 21, 2022, the City Council approved a specific program and a public project as part of the City’s 2023-24 CDBG Program allocation.

The amount approved by the Federal Housing and Urban Development Department to the County of Riverside Housing and Workforce Solutions for the City of Norco is $73,282. A notice dated August 24, 2023, was received from the County of Riverside Housing and Workforce Solutions stating the City’s proposed CDBG projects for the 2023-24 Program Year were approved.

The attached County of Riverside Supplemental Agreement received from the County confirms that funding is approved for the following projects:

Senior Recreation and Community Services $12,500

Community Center Park ADA Synthetic Poured in Place Surfacing Project $60,782 Total Approved Funding $73,282
Senior Recreation and Community Services
Program funding will assist in sustaining staff who provide services at the Rose M.

Eldridge Senior Center including assisting with the Cooling Center, health and wellness programming, and Senior Congregate Meal Program. Senior Services benefit seniors from numerous communities including Norco, Corona, Eastvale, Jurupa Valley, Ontario and Riverside.

Community Center Park ADA Synthetic Poured in Place Surfacing Project Community Center Park is very popular and is used by many local families with children who participate in our programs held at the Community Center. Currently, ADA wood chips are used on the ground in the designated play area. Additionally, this area was identified in the Citywide ADA Assessment indicating the need for the ground surface to be improved. Existing surface (ADA woodchips) are compliant; however, the frequency of replacement of chip has increased particularly in this area due to winds, and avoiding elevation grade change is a challenge due to the loss of chips. The objective of this project is to remove the current ground cover in the swing-set area and install an ADA synthetic poured-in-place surface.

After the Supplemental Agreement is fully executed, the County will forward it to the City along with the authorization to incur costs. Once completed, funds for programs that are already in progress will be released, and pending invoices for service can be submitted for payment and brought current.

FISCAL IMPACT:

The U.S. Department of Housing and Urban Development will fund these programs and projects through the Riverside County Housing and Workforce Solutions on a reimbursement basis. The approved funding has been appropriated in the City's FY 2023-24 Operating Budget for Senior Recreation and Community Services and Capital Improvement Program for the Community Center Park ADA Synthetic Poured in Place Surfacing Project.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent to Strategic Directive No. 5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

CDBG Supplemental Agreement

File No.1 2.NR.61-23, 2.NR.62-23
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SUPPLEMENTAL AGREEMENT FOR THE USE OF
2023-2024 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
This Supplemental Agreement (“Agreement”) is entered into this day of , 2023, by and between the COUNTY OF RIVERSIDE, a political subdivision of the State of California, herein called, "COUNTY," and the CITY OF NORCO, herein called "CITY " COUNTY and CITY are collectively referred to as “Parties” and individually as “Party.” The COUNTY and CITY mutually agree as follows:

1. GENERAL. COUNTY and CITY have executed a Cooperation Agreement, dated November 10, 2020 (“Cooperation Agreement”), whereby CITY elected to participate with COUNTY, which has quali?ed as an "Urban County" for purposes of receiving Community DevelopmentBlock Grant (CDBG) funds (“CDBG”), and to assist and undertake essential community development and housing assistance activities pursuant to the Housing and Community Development Act of 1974, Title 1, as amended, Public Law 93-383 hereinafter referred to as "Act." Said CooperationAgreement, dated November 10, 2020, is incorporated herein by reference and made a part of this Agreement as if each and every provision was set forth herein.

2. PURPOSE. CITY has been allocated $73,282 in CDBG Entitlement funds for the 2023- 2024 CDBG program year. CITY promises and agrees to undertake and assist with the community development activities, within itsjurisdiction, by utilizing the sum of $73,282 CDBG Entitlement Funds, as speci?cally identi?ed in Exhibit(s) A, and B, attached hereto, and are incorporated herein by this reference, for the following project(s) (collectively, the “Projects”):

A) 2.NR.6l-23 Community Center Park ADA Synthetic Poured In Place Surface Project, $60,782.

B) 2.NR.62-23 Senior Center Recreation and Community Services, $12,500.

3. TERM OF AGREEMENT. The term of this Agreement for the implementation of the Project(s) shall be for a period of one (1) year from July 1, 2023, to termination on June 30, 2024.

4. COMPLETION SCHEDULE. CITY shall proceed consistent with the completion schedule set forth in Exhibit s A and B, attached hereto and incorporated herein.

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5. EXTENSION OF TIME. In the event the Project(s) are not substantially completed by the time set forth in the applicable completion schedule(s) due to a force majeure event (See Section 40 below), the COUNTY may consider extending the schedule for the completion of the proj ect(s). Times of performance for other activities may also be extended in writing by COUNTY. If substantial progress toward completion in conformance with the completion schedule, as determined by COUNTY in its discretion, of the project(s) not made during the term of this Supplemental Agreement, COUNTY may suspend or terminate this Supplemental Agreement pursuant to the termination procedures set forth in the section titled "Termination," and the entitlement funds associated with the Project(s) may be reprogrammed by the COUNTY after appropriate notice is provided to the City.

6. LETTER TO PROCEED. CITY shall not initiate nor incur expenses for the CDBGfunded Projects or activities covered under the terms of this Supplemental Agreement as set forth in Exhibit(s) A, and B, attached hereto, prior to receiving written authorization from COUNTY to proceed.

7. NOTICES. Each notice, request, demand, consent, approval or other communication (hereinafter in this Section referred to collectively as “notices” and referred to singly as a “notice”) which the CITY or COUNTY is required or permitted to give to the other party pursuant to this Agreement shall be in writing and shall be deemed to have been duly and suf?ciently given if: (a) personally delivered with proof of delivery thereof (any notice so delivered shall be deemed to have been received at the time so delivered); or (b) sent by Federal Express (or other similar national overnight courier) designating early morning delivery (any notice so delivered shall be deemed to have been received on the next Business Day following receipt by the courier); or (c) sent by United States registered or certified mail, return receipt requested, postage prepaid, at a post of?ce regularly maintained by the United States Postal Service (any notice so sent shall be deemed to have been received two days after mailing in the United States), addressed to the respective parties as follows:

COUNTY Ql?
Heidi Marshall,Director
Riverside County HWS
P.O. Box 1528
Riverside,CA 92502
Lori Sassoon, City Manager
City of Norco
2870 Clark Avenue
Norco, CA 92860

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8. DISBURSEMENT OF FUNDS.

A. COUNTY'S Board of Supervisors shall determine the ?nal disposition and distribution of all ?mds received by COUNTY under the Act consistent with Sections 2 and 3 of this Supplemental Agreement. COUNTY, through its Department of Housing, and Workforce Solutions , shall make payment of the CDBG funds to CITY as set forth in the attached Exhibit(s) A, and B. It is the CITY’s responsibility to monitor all project activities set forth in the attached Exhibit(s) A, and B, and to ensure compliance with applicable federal regulations and the terms of this Supplementa l
Agreement.

B. CITY shall comply with timely drawdown of CDBG Entitlement funding by expeditiously implementing and completing the COUNTY-approved, CDBG-funded Projects. CITY acknowledges that CITY’s drawdown performance directly impacts the COUNTY’s overall program drawdown rate. If the CITY’s unobligated CDBG fund balance, as of January 31, 2024, exceeds one hundred and seventy-?ve percent (175%) of the CITY’s 2023-2024 CDBG allocation, the COUNTY may, in its sole discretion,take the necessary administrative actions to reduce the CITY’s CDBG fund balance. Necessary actions include, but are not limited to, reprogramming the excess CDBG ?md balance to other eligible activities as selected by COUNTY. COUNTY may, in its sole and absolute discretion, authorize CITY in writing, prior to January 31, 2024, to exceed the CDBG fund balance requirement.

C. CITY shall comply with timely drawdown of CDBG funds by submittingmonthly requests for reimbursement or other COUNTY approved reimbursement schedules. All disbursements of CDBG funds will be on a reimbursement basis and made within thirty (30) days after the COUNTY has received the CITY’s reimbursement request including documentation supporting expenditures.

D. All authorized obligations incurred in the performance of the Supplemental Agreement for projects eligible under the following CDBG regulations must be reported in writing to COUNTY no later than June 1 2024:

1. Acquisition [24 Code of Federal Regulations (CFR) 570.201 (a)] 2 Clearance Activities [24 CFR 570.201 (d)]

3. Interim Assistance [24 CFR 570.201 (f)]
4 Code Enforcement [24 CFR 570.202 (c)]

1 D1‘ ©\D0O\IO\UI-hUJl\J >-—- ;—n p—A [\J U.) 9- 43 00 \] n#@ (11 00 \1 O’\ U1 -D U) I\.) n-— G \O All public service activities [24 CFR 570.201 (e)] and other eligible activities under this Supplemental Agreement must be implemented, completed, and obligations reported in writing to the COUNTY by the CITY no later than the completion schedules set forth in the attached Exhibits to this Supplemental Agreement. ”CFR” as used herein refers to the Code of Federal Regulations.

9. RECORDS AND INSPECTIONS.

A. CITY shall establish and maintain ?nancial, programmatic, statistical, and other supporting records of its operations and ?nancial activities in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards (2 CFR Part 200), and 24 CFR Section 570.502 (a), as they relate to the acceptance and use of federal ?inds under this Agreement. Said records shall be retained for a period of four (4) years from the date that the activity or program funded with the CDBG Grant is closed out by the COUNTY and reported as complete in the Comprehensive Annual Performance and Evaluation Report (CAPER). Exceptions to the four (4) year retention period requirement, pursuant to 2 CFR 200.333 include, but not limited to, the following:
i. if any litigation, claim, or audit is started prior to the expiration of the four (4) year period;
ii. when the CITY is noti?ed in writing by the COUNTY, HUD, or other Federal agency to extend the retention period;
iii. records for real property and equipment acquired with CDBG funds must be retained for four (4) years after ?nal disposition;
iv. when the records are transferred by the CITY to the COUNTY, HUD, or other Federal agency, the four (4) year period is not applicable.

B. CITY shall obtain an external audit in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Section 200.500). Audits shall usually be performed annually but not less ?equently than every two years. Nonpro?t institutions and government agencies that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements, but records must be available for review by appropriate of?cials of the Federal grantor agency or subgranting entity. The audit report shall be submitted to the COUNTY within 180 days after the end of the COUNTY'S ?scal year.

)2: ©\D0O\]C\U1- p._A l\) »#LA? >—-» \O GO \] O\ LII >—- 00 U1 DJ l\) C. CITY shall maintain a separate account for the CITY’S CDBG Entitlement funds received as set forth in Exhibit(s) A, and B, attached hereto.

D. Pursuant to 2 CFR 200.336, CITY shall, during the normal business hours, make available to COUNTY, the U.S. Department of Housing and Urban Development (HUD), or other authorized representative, for the examination and copying, all of its records and other materials with respect to matters covered by this Agreement and provide reasonable access to CITY staff for the purpose of interview and discussion related to the records and documents.

E. CITY shall not retain any program income as de?ned in 24 CFR 570.500. Said program income shall be used only for the activities that are the subject of this Agreement. Further, all provisions of this Agreement shall apply to such activities.

F. The CITY shall ensure that at least ?fty-one percent (51%) of the persons bene?ting from all CDBG-funded activities or projects designated as serving limited clientele [24 CFR 570.208(a)(2)(i)] are of low and moderate-income and meet the applicablehousehold income guidelines.

The CITY shall provide the required income certi?cation and direct bene?t documentation, in writing, to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibit(s) A, and B, attached hereto. In the event that CITY engages the services of a sub-contractorto implement CDBG- ?mded activities, the CITY must collect, in writing, all required income certi?cation and direct bene?t documentation from subcontractors prior to submittal to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibit(s) A, and B, attached hereto.

10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal, state, and local laws, regulations, and ordinances and any amendments thereto and the federal regulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY is to comply with those regulations found in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), and 24 CFR Part 570. CITY is to abide by the provisions of the Community Development Block Grant Manual, prepared by COUNTY and cited in the above-mentioned Cooperation Agreement. CITY shall comply, if applicable, with Section 3 of the Housing & Urban Development Act of 1968 (12 U.S.C.A. Section l70lu), as amended, a copy of which is attached hereto as Exhibit “S”, and incorporated herein by this reference. CITY shall adhere to the regulations as set forth in Exhibit “R”, attached hereto and incorporated herein by this reference,

b'—| p_A ©\O0O\10\UI-l>UJt\J p_A U.) l\) r-- C) O0 \] © (J! U) IQ 25 pertaining to inherently religious activities. Further, CITY must comply with the requirements of the Build America, Buy America (“BABA”) Act, 41 USC 8301 note, and all applicable rules and notices, as may be amended, if applicable to the CITY’s infrastructure project. Pursuant to HUD’s Notice, “Public Interest Phased ImplementationWaiverfor FY2022 and 2023 ofBuild America, Buy America Provisions as Applied to Recipients ofHUD Federal Assistance ”(88 FR 17001), any funds obligated by HUD on or after the applicable listed effective dates, are subject to BABA requirements, unless expected by a waiver. Finally, CITY shall comply with the Additional Federal Requirements, if applicable, attached hereto as Exhibit “AFR”, and incorporated herein by this reference.

11. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with COUNTY in undertaking essential community development and housing assistance activities, speci?cally urban renewal and public assistance housing, and shall assist COUNTY in implementing and undertaking the goals and strategies identi?ed in the 2019-2024 Five Year Consolidated Plan, pursuant to 24 CFR Part 91 and other requirements of the CommunityDevelopment Block Grant Program.

12. LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA
ENVIRONMENTAL UALITY ACT CE A . Pursuant to Title 14 CCR Section 1501(d), the CITY is designated as the lead agency for the projects that are the subject matter of this Supplemental Agreement.

13. HOLD HARMLESS AND INDEMNIFICATION. In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as de?ned by Section 895 of the Code, the Parties hereto, pursuant to the authorization contained in Section 895.4 and 895.6 of the Code, agreethat each Party shall be liable for any damages including, but not limited to, claims, demands, losses, liabilities, costs and expenses including reasonable attorneys’ fees, resulting from the negligent or wrongful acts or omissions of their employees or agents in the performance of this Agreement, and each,Party shall indemnify, defend and hold harmless the other Parties from such claims, demands, damages, losses or liabilities for their negligence.

The hold harmless and indemni?cation obligations set forth herein shall survive the termination

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and expiration of this Agreement. In the event there is con?ict between this clause and California Civil Code Section 2782, this clause shall be interpretedto comply with Civil Code 2782. Such interpretatio n
shall not relieve the CITY from indemnifying the Indemniteesto the fullest extent allowed by law.

14. INSURANCE. Without limiting or diminishing the CITY’s obligation to inderrmify or hold the COUNTY harmless, CITY shall procure and maintain or cause to be maintained, at its sole cost and expense, the following insurance coverage’s during the term of this Agreement. As respects to the insurance section only, the COUNTY herein refers to the County of Riverside, its Agencies, Districts, Special Districts, and Departments, their respective directors, of?cers, Board of COUNTY OF RIVERSIDE Supervisors, employees, elected or appointed of?cials, agents, or representatives as Additional Insureds
a. Workers’ Com ensation:

If the CITY has employees as de?ned by the State of California, the CITY shall maintain statutory Workers’ Compensation Insurance (Coverage A) as prescribed by the laws of the State of California. Policy shall include Employers’ Liability (Coverage B) including Occupational Disease with limits not less than $1,000,000 per person per accident. The policy shall be endorsed to waive subrogation in favor of the County of Riverside.
b. Commercial General Liabili :

Commercial General Liability insurance coverage, including but not limited to, premises liability, contractual liability, products and completed operations liability, personal and advertising injury, and cross liability coverage, covering claimswhich may arise from or out of CITY’S performance of its obligations hereunder. Policy shall name the County of Riverside as Additional Insured. Policy’s limit of liability shall not be lessthan $2,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit.
b. 1. If the work will include contact with minors, and the Commercial General Liability policy is not endorsed to include af?rmative coverage for sexual abuse or molestation, Vendor/ Contractor shall obtain and maintain a policy covering Sexual Abuse and Molestation with a limit no less than $2,000,000 per occurrenceor claim.

>—A j-Ap_L ;_A Lo) [\) -K O KO 00 \] C'\ r#U‘I O’\ L)‘: L» [\J I-—A 00 \l c. Vehicle Liabili
If Vehicles or mobile equipment are used in the performance of the obligations under this Agreement, then CITY shall maintain liability insurance for all owned, non-owned or hired vehicles so used in an amount not less than $1,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreementor be no less than two (2) times the occurrence limit. Policy shall name the County of Riverside as Additional Insured. d. General Insurance Provisions - All lines:
(i). Any insurance carrier providing insurance coverage hereunder shall be admitted to the State of California and have an A M BEST rating of not less than A: VIII (A28) unless such requirements are waived, in writing, by the County Risk Manager. If the County’s Risk Manager waives a requirement for a particular insurer such waiver is only valid for that speci?c insurer and only for one policy term.
(ii). The CITY must declare its insurance self-insured retentions. If such selfinsured retentions exceed $500,000 per occurrence such retentions shall have the prior written consent of the County Risk Manager before the commencement of operations under this Agreement. Upon noti?cation of self-insured retention unacceptable to the COUNTY, and at the election of the Country’s Risk Manager, CITY’S carriers shall either; 1) reduce or eliminate such self-insured retention as respects this Agreement with the COUNTY, or 2) procure a bond which guarantees payment of losses and related investigations, claims administration,and defense costs and expenses. (iii).

Riverside with either 1) a properly executed original Certi?cate(s) of Insurance and certi?ed original CITY shall cause CITY’S insurance carrier(s) to ?irnish the County of copies of Endorsements effecting coverage as required herein, and 2) if requested to do so orally or in writing by the County Risk Manager, provide original Certi?ed copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certi?cate(s) and policies of insurance shall contain the covenant of the insurance carrier(s) that thirty (30) days written notice shall be given to the County of Riverside prior to any material modi?cation, cancellation, expiration or reduction in coverage of such insurance. In the event of a

—- p—-A pj Iil ©\OOO\lO\UI- p_n l\) o—A U) r# -D 00 \] C\ 1-: U] »-—A <3 NO »# l\J O\ U1 L») 00 \] material modi?cation, cancellation,expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County of Riverside receives, priorto such effective date, another properly executed original Certi?cate of Insurance and original copies of endorsements or certi?ed original policies, including all endorsements and attachments thereto evidencing coverage’s set forth herein and the insurance required herein is in full force ‘and effect. CITY shall not commence operations until the COUNTY has been furnished original Certi?cate (s) of Insurance and certi?ed original copies of endorsements and if requested, certi?ed original policies of insurance including all endorsements and any and all other attachments as required in this Section. An individual authorized by the insurance carrier to do so on its behalf shall sign the original endorsements for each policy and the Certi?cate of Insurance.
(iv). It is understood and agreed to by the parties hereto that the CITY’S insurance shall be construed as primary insurance, and the COUNTY'S insurance and/or deductibles and/or self-insured retention’s or self-insured programs shall not be construed as contributory. (V). If, during the term of this Agreement or any extension thereof, there is a material change in the scope of services;or, there is a material change in the equipment to be used in the performance of the scope of or, the term of this Agreement, including any extensions thereof, exceeds ?ve (5) years, the COUNTY reserves the right to adjust the types of insurance required under this Agreement and the monetary limits of liability for the insurance coverage’s currently required herein, if; in the County Risk Manager's reasonablejudgment, the amount or type of insurance carried by the CITY has become inadequate.
(vi). CITY shall pass down the insurance obligations contained herein to all tiers of subcontractors working under this Agreement.
(vii). The insurance requirements contained in this Agreement may be met with a program(s) of self—insuranceacceptable to the COUNTY. (viii). CITY agrees to notify COUNTY of any claim by a third party or any incident or event that may give rise to a claim arising from the performance of this Agreement.

15. INDEPENDENT CONTRACTOR. The CITY is, for purposes relating to this Supplemental Agreement, an independent contractor and shall not be deemed an employee of the

)—-A p_n ifCD\D0O\lO\U1-l>L»J[\J p_n U») I\) -I> )# O0 \l O\ U1 U.) IN) —A O \D 00 \l O\ U! COUNTY. It is expressly understood and agreed that the CITY (including its employees, agents and subcontractor’s) shall in no event be entitled to any bene?ts to which the COUNTY employees are entitled, including but not limited to overtime, any retirement bene?ts, worker's compensation bene?ts, and injury leave or other leave bene?ts. There shall be no employer-employee relationship between the parties; and the CITY shall hold the COUNTY harmless from any and all claims that may be made against the COUNTY based upon any contention by a third party that an employer-employee relationship exists by reason of this Supplemental Agreement. It is further understood and agreed by the parties that the CITY in the performance of this SupplementalAgreement is subject to the control or direction of the COUNTY merely as to the results to be accomplished and not as to the means and methods for accomplishing the results.

16. NONDISCRIMINATION. CITY shall abide by 24 CFR Sections 570.601 and 570.602 of Title 24 of the Code of Federal Regulations which requires that no person in the United States shall on the grounds of race, color, national origin, sex, sexual orientation, gender identity, or veterans status be excluded from participation in, be denied the bene?ts of, or be subjected to discrimination under any program or activity funded in whole or in part with Community Developmentfunds.

CITY shall abide by and include in any subcontracts to perform work under this Supplemental Agreement, the following clause:
"During the performance of this Supplemental Agreement, CITY and its subcontractorsshall not unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical disability, medical condition, marital status, veterans status, sexual orientation, gender identity, age (over 40) or sex. CITY and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. CITY and subcontractorsshall comply with the provisions of the Fair Employment and Housing Act (California Government Code Section 12900 et seq.). The applicable regulations of the Fair Employment and Housing Commission are implementing California Government Code Section 12990 et seq., set forth in Chapter 1 of Division 4.1 of Title 2 of the California Administrative Code are incorporated into this Agreement by reference and made a part hereof as if set forth in full. CITY and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which

n—I pj i—l ©©OO\lO\U1- )_A l\) >-—« DJ »—A -R O\ U1 J}- U.) l\) s-—A O KO CO \] O\ —I n#U] 00 \l they have a collective bargaining or other agreement."

17. PROHIBITION AGAINST CONFLICTS OF INTEREST
A. CITY and its assigns, employees, agents, consultants, of?cers and elected and appointed of?cials shall become familiar with and shall comply with the Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and the CDBG regulations prohibiting con?icts of interest contained in 24 CFR 570.611 B. The Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its of?cers, employees or agents engaged in the award and administration of contracts supported by Federal funds.

C. No employee, of?cer or agent of the Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a con?ict of interest, real or apparent, would be involved.

D. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decision—makingprocess or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a ?nancial interest in any contract, subcontract,or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a “covered person” includes any person who is an employee, agent, consultant, of?cer, or elected or appointed of?cial of the Grantee, the Subrecipient, or any designated public agency.

E. CITY understands and agrees that no waiver of exception can be granted to the prohibition against con?ict of interest except upon written approval of HUD pursuant to 24 CFR 570.61 l(d). Any request by CITY for an exception shall ?rst be reviewed by COUNTY to determine whether such request is appropriate for submission to HUD in the COUNTY’S sole and absolute discretion. In determining whether such request is appropriate for submission to HUD, COUNTY will consider the factors listed in 24 CFR 570.61 l(d)(2).

F. Prior to the distribution of any CDBG funding under this Supplemental Agreement, CITY shall provide COUNTY, in writing, a list of all employees, agents, consultants,

»—- )—n y—A ©\OOO\lO\Ul-l>-U.>l\) p—A U.) l\) U! -P D—| O'\ r—-» 00 \I r—-0 00 \] U1 U.) l\.) of?cers and elected and appointed of?cials who are in a position to participate in a decision making process, exercise any functions or responsibilities, or gain inside information with respect to the CDBG activities funded under this Agreement. CITY shall also promptly disclose to COUNTY any potential con?ict, including even the appearance of con?ict that may arise with respect to the CDBG activities funded under this Supplemental Agreement.

G. Any Violation of this Section 17 shall be deemed a material breach of this Supplemental Agreement, and the Supplemental Agreement shall be immediately terminated by the COUNTY.

18. LOBBYING. CITY certi?es to the best of its knowledge and belief, that:
a. No federally-appropriated funds have been paid or will be paid, by or on behalf of the CITY, to any person for in?uencing or attempting to in?uence an of?cer or employee of any agency, a member of Congress, an of?cer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modi?cation of any federal contract, grant, loan, or cooperative agreement.
b. If any funds other than federally-appropriated funds have been paid or will be paid to any person for in?uencing or attempting to in?uence an of?cer or employee of any agency, a member of Congress, an of?cer or employee of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the CITY shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying,“ in accordance with its instructions. c. CITY shall require that the language of this certi?cation be included in the award documents for all subawards at all tiers (including subcontracts,subgrants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.

This certi?cation is a material representation of fact upon which reliance was placed when this transaction was made or entered into.

19. TERMINATION.

A. CITY. CITY may not terminate this Agreement except upon express written consent of COUNTY, pursuant to 2 CFR 200.339 (a)(3).

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28 B. COUNTY. Notwithstanding the provisions of Paragraph 19a above, COUNTY may suspend or terminate this Supplemental Agreement upon a ten (10) day written notice to CITY of action being taken and the reason for such action including, but not limited to, the following reasons:
(1) In the event CITY fails to perform the covenants herein contained at such times and in such manner as provided in this Supplemental Agreement; and (2) In the event there is a con?ict with any federal, state or local law, ordinance, regulation or rule rendering any of the provisions of this Supplemental Agreement invalid or untenable; or
(3) In the event the funding from the Department of Housing and Urban Development referred to in Sections 1 and 2 above is terminated or otherwise becomes unavailable.

C. This Agreement may be terminated and/or funding suspended, in whole or in part, for cause in accordance with the Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200.339). Cause shall be based on the failure of the CITY to materially comply with either the terms or conditions of this Agreement. Upon suspension of funding, the CITY agrees not to incur any costs related thereto, or connected with, any area of con?ict from which the COUNTY has determined that suspension of funds is necessary. CITY acknowledges that failure to comply with Federal statutes, regulations, ‘or the terms and conditions of this Agreement may be considered by the COUNTY in evaluating future CDBG and non-CDBG funding applications submitted by CITY.

D. Upon suspension or termination of this Supplemental Agreement, CITY shall return any unencumbered funds which it has been provided by COUNTY. In accepting said funds, COUNTY does not waive any claim or cause of action it may have against CITY for breach of this Supplemental Agreement.

E. Reversion of Assets

1. Upon expiration or termination of this Supplemental Agreement, the CITY shall transfer to the COUNTY any CDBG funds on hand at the time of expiration of the Supplemental Agreement as well as any accounts receivable held by CITY which are attributable to the use of CDBG funds awarded pursuant to this Supplemental Agreement.

2. Any real property under the CITY’S control that was acquired or improved

1 in whole or in part with CDBG funds (including CDBG funds provided to the CITY in the form of a 2 loan) in excess of $25,000 is either:
0 Above 80% MHI
0 Between 50% and 80% MHI (Low-Income)
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(i) Used to meet one of the National Objectives pursuant to 24 CFR 570.208 until ?ve years after expiration of this agreement, or for such longerperiod of time as determined to be appropriate by the COUNTY; or
(ii) Not used in accordance with Clause (i) above, in which event the CITY shall pay the COUNTY an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, or improvement to, the property.

20. PUBLICITY. Any publicity generated by CITY for the Projects funded pursuant to this Supplemental Agreement will make reference to the contribution of the COUNTY, the Department of Housing, and Workforce Solutions, and the Community DevelopmentBlock Grant Program in making the project possible.

21. PROGRAM MONITORING AND EVALUATION. CITY and its subcontractors shall be monitored and evaluated in terms of its effectiveness and timely compliancewith the provisions of this Supplemental Agreement and the effective and efficient achievement of the CDBG National Objectives as set forth in Exhibit(s)A, and B, attached hereto. Quarterly reports shall be due on the last day of the month immediately following the end of the quarter being reported. The quarterly written reports shall include, but shall not be limited to, the following data elements:

A. Title of program, listing of components, descriptionof activities/operations.

B. The projected goals, indicated numerically, and also the goals achieved (for each report period). In addition, identify by percentage and description, the progress achieved towards meeting the speci?ed goals and identify any problems encountered in meeting goals.

C. If the CDBG-funded activity meets a National Objective under 24 CFR 570.208 (a)(2)(i), CITY will report the following:
1) Total number of direct bene?ciaries (clientele served) with household incomes at:

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>-I p_n ;# ©\OOO\lO‘\Ul-hL»J[\J —- ye U.) l\) ># O \O 00 \l O\ U! -5 0 Between 30% and 50% MHI (Very Low-Income)
0 Less than 30% MHI (Extremely Low-Income)
2) Total number and percent (%) of the clientele served that have household incomes at or below 80% MHI
3) Racial ethnicity of clientele
4) Number of Female-Headed Households
D. CITY shall report, in writing, and cause its subcontractorsto report, in writing, bene?ciary statistics monthly to Housing and Workforce Solutions (HWS) on the pre-approved Direct Bene?tF arm and Self-Certz?cationForm (certifying income, family size, and racial ethnicity) as required by HUD. Updated forms are to be provided to CITY by HWS should HUD implement changes during the term of this Supplemental Agreement. CITY and subcontractors will collect and provide all necessary data required by HUD pertaining to the Speci?c Outcome Indicators as identi?ed in HUD’s Community Planning and Development (CPD) Outcome Performance Measurement System.

22. PRIOR AUTHORIZATION. CITY shall obtain COUNTY'S written approval from HWS prior to implementing the following “high risk” activities funded with CDBG assistance:

A. Construction of public facilities (project plans and speci?cations); B Acquisition of real property;
C Historic Preservation;
D. Relocation; and
F Economic Development
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28 23. PRIOR COUNTY APPROVAL CONSTRUCTION ACTIVITIES CITY shall obtain COUNTY'S written approval, through its HWS, of the project plans, speci?cations, and construction documents prior to CITY’S construction of same for all projects consisting of CDBG-funded construction activities . The COUNTY neither undertakes nor assumes nor will have any responsibility or duty to CITY or to any third party to review, inspect, supervise, pass judgment upon or inform CITY or any third party of any matter in connection with the development or construction of the improvements,whether regarding the quality, adequacy or suitability of the plans, any labor, service, equipment or material furnished to the property, any person furnishing the same, or otherwise. CITY

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28 and all third parties shall rely upon its or their own judgment regarding such matters, and any review, inspection, supervision, exercise of judgment or information supplied to CITY or to any third party by the COUNTY in connection with such matter is for the public purpose of assisting with a community developmentand housing activity pursuant to the Act, and neither CITY (except for the purposes set forth in this Agreement) nor any third party is entitled to rely thereon. The COUNTY shall not be responsible for any of the work of construction, improvement, or development of the property.

It is the responsibility of CITY, without cost to COUNTY, to ensure that all applicable local jurisdiction land use requirements will permit development of the property and construction of the improvements and the use, operation, and maintenance of such Improvements in accordance with the provisions of this Agreement. Nothing contained herein shall be deemed to entitle Sponsor to any local jurisdiction or County permit or other local jurisdiction or County approval necessary for the development of the Property, or waive any applicable local jurisdiction or County requirements relating thereto. This Agreement does not (a) grant any land use entitlement to CITY, (b) supersede, nullify, or amend any condition which may be imposed by the local jurisdiction in connection with approval of the development described herein, (c) guarantee to CITY or any other party any pro?ts from the development of the Property, or (d) amend any local jurisdiction or County laws, codes or rules.

24. PRIOR COUNTY APPROVAL A UISITION ACTIVITIES . CITY shall obtain COUNTY'S written approval and authorization to proceed, through HWS, of all CDBG-funded real property acquisition activities.

25. REAL PROPERTY AC .UIRED OR PUBLIC FACILITY CONSTRUCTED WITH CDBG FUNDS. When CDBG funds are used, in whole or in part, by CITY to acquire real property or to construct a public facility, CITY will comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Section 200.311); National Environmental Policy Act of 1969 (42 U.S.C.A. §4321, et seq.); the California EnviromnentalQuality Act (Cal. Pub. Resources Code §21000, et seq.); the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C.A. §4630, et seq.); and the COUNTY’s Five

_| —A ©\O0O\]O‘\U1-l>UJ[\) y—A 00 \) DJ l\) ># U-‘I [*0 Year Consolidated Plan. In addition, the following is to occur:
a. Title to the real property shall Vest in CITY;
b. The real property will be held by CITY, or the constructed facility will be maintained by the CITY, for a minimum period of ?ve (5) years from the date the CDBGfunded activity is closed-out and reported as complete by the COUNTY through the Comprehensive Annual Performance and Evaluation Report (CAPER);
c. While held by CITY, the real property or the constructed facility is to be used exclusively for the purposes for which acquisition or construction was originally approved by COUNTY;
d. Written approval from COUNTY must be secured if the property or the facility is to be put to an alternate use that is consistent with the COUNTY’S Five Year Consolidated Plan or the applicable federal regulations governing CDBG funds;
e. Should CITY desire to use the real property or the constructed facility, prior to the completion of the mandatory ?ve-year period, for a purpose not consistent with applicable federal regulations governing CDBG funds or to sell the real property or facility, then:
(1) If CITY desires to retain title, CITY will reimburse COUNTY the amount that represents the percentage of current fair market value that is identical to the percentage that CDBG funds initially comprised of monies paid to acquire the property or construct the facility; or (2) If CITY sells the property or facility or is required to sell the property or facility, CITY shall reimburse COUNTY the amount that represents the percentage of proceeds realized by the sale that is identical to the percentage that CDBG funds initially comprised of monies paid to acquire the property or construct the facility. This percentage amount will be calculated after deducting all actual and reasonable cost of sale from the sale proceeds.

26. ENTIRE AGREEMENT. This Supplemental Agreement, including any attachments or exhibits hereto constitutes the entire Supplemental Agreement of the parties with respect to its subject matter and supersedes all prior and contemporaneous representations, proposals, discussions and communications,whether oral or in writing. No oral understanding or agreement not incorporatedherein shall be binding on any of the parties hereto. Each of the attachments and exhibits attached hereto is

—‘©\OOO\]C\U1-l>l.oJl\) ;_A l\J L») 45- O\ £11 G \O 00 \l r—- 00 \l O\ U‘: U.) [U incorporatedherein by this reference.

27. SEVERABILITY. Each section, paragraph and provision of this Supplemental Agreement is severable from each other provision, and if any provision or part thereof is declared invalid, the remaining provisions shall remain in full force and effect.

28. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY agrees to notify in writing, and to cause any subcontractor implementing CDBG-funded Projects to notify, in writing, the Riverside County Workforce Development Center of any and alljob openings that are caused by the CDBG-funded Projects under this Supplemental Agreement.

29. MINISTERIAL ACTS. The Director of Housing and Workforce Solutions or designee(s) are authorized to take such ministerial actions as may be necessary or appropriate to implement the terms, provisions, and conditions of this Supplemental Agreement as it may be amended from time-to-time by COUNTY.

30. PROJECT ELIGIBILITY. As to CITY or its claimants, COUNTY shall bear no liability for any later determination by the United States Government, the U.S. Department of Housing and Urban Development, or any other person or entity that CITY is or is not eligible under 24 CFR Part 570 to receive CDBG entitlement funds from the COUNTY.

31. SOURCE OF FUNDING. CITY acknowledgesthat the source of funding pursuant to this Supplemental Agreement is Community Development Block Grant funds (CFDA 14.218), and the Grant Award Number is B-23-UC-O6-0506.

32. ASSIGNMENT. The CITY shall not make any assignment or transfer in any form with respect to this Supplemental Agreement, without prior written approval of the COUNTY.

33. INTERPRETATION AND GOVERNING LAW. This Supplemental Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. This SupplementalAgreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Supplemental Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.

34. WAIVER. Failure by a party to insist upon the strict performance of any of the

:-A yi p_A ©\OOO\]O\Ul- >—- p—A KI! >—- -5 DJ >—I [\-3 >-A O\ 00 >—\] 00 \I ON U! U.) l\J —t O \O provisions of this Supplemental Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s rights to insist and demand strict compliance by the other party with the terms of this Supplemental Agreement thereafter.

35. JURISDICTION AND VENUE: Any action at law or in equity arising under this Supplemental Agreement or brought by a party hereto for the purpose of enforcing, construing or detennining the validity of any provision of this Supplemental Agreement shall be ?led only in the Superior Court of the State of California, located in Riverside, California, and the parties hereto waive all provisions of law providing for the ?ling, removal or change of venue to any other court or jurisdiction

36. USE OF PROPERTY. Whenever federal CDBG funds or program income are used, in whole or in part, for the purchase of equipment or personal property, the property shall not be transferred from its originally funded use, by CITY or the CITY’S subcontractorimplementing the CDBG-funded activity, for a period of ?ve (5) years from the close-out date of the grant from which CDBG assistance was provided. The CITY shall maintain a current inventory for COUNTY monitoring and review.

37. AUTHORITY TO EXECUTE. The persons executing this Supplemental Agreement or exhibits attached hereto on behalf of the parties to this Supplemental Agreement hereby warrant and represent that they have the authority to execute this Supplemental Agreement and warrant and represent that they have the authority to bind the respective parties to this Supplemental Agreement to the performance of its obligations hereunder.

38. EFFECTIVE DATE. The effective date of this Supplemental Agreement is the date the parties sign the Supplemental Agreement. If the parties sign the Supplemental Agreement on more than one date, then the last date the Supplemental Agreement is signed by a party shall be the effective date.

39. COUNTERPARTS. This Supplemental Agreement may be signed by the different parties hereto in counterparts, each of which shall be an originalbut all of which together shall constitute one and the same agreement.

40. FORCE MAJ EURE.

A. Performance by either party hereunder shall not be deemed to be in default where delays or defaults are due to war, insurrection, strikes, lock-outs, riots, ?oods, earthquakes, ?res, casualties, acts of God, acts of the public enemy, epidemics, pandemic, quarantine restrictions, freight embargoes, lack of transportation, governmental restrictions or priority, litigation, unusually severe

>—A p—L_n ©\O0O\lO\Ul-BU-)l\) F1‘ p_a [\3 >—-» 4% DJ U1 ># C\ )—| O \O 00 \I r—- 00 \l O\ U1 -JR UJ [Q weather, inability to secure necessary labor, material or tools, delays of any contractor, sub-contractor or supplier, acts of the other party, acts or failure to act of a public or governmental agency or entity, or any causes beyond the control or without the fault of the party claiming an extension of time to perform.

B. An extension of time for any such cause (a “Force Majeure Delay”) shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) calendar days of knowledge of the commencement of the cause. Notwithstanding the foregoing, none of the foregoing events shall constitute a Force Majeure Delay unless and until the party claiming such delay and interference delivers to the other party written notice describing the event, its cause, when and how such party obtained knowledge, the date the event commenced, and the estimated delay resulting therefrom. Any party claiming a Force Majeure Delay shall deliver such written notice within thirty (30) calendar days after it obtains knowledge of the event.

41. MODIFICATION OF AGREEMENT. This Supplemental Agreement may be modi?ed or amended only by a writing signed by the duly authorized and empowered representative of COUNTY and CITY respectively.

42. DIGITAL AND ELECTRONIC SIGNATURES. The parties agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17). The partiesfurther agree that the electronic signatures of the parties included in this Agreement are intended to authenticatethis writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to CUETA as amended from time to time. Digital signature means an electronic identi?er, created by computer, intended by the party using it to have the same force and effectas the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as de?ned in subdivision (i) of Section 1633.2 of the Civil Code.

p—A \D0O\10\UI-bUJl\)
10 IN WITNESS WHEREOF, the COUNTY and the CITY have executed this Agreement as of the dates set forth below.

COUNTY OF RIVERSIDE,
a political subdivision of the
State of California
BY.

Michael Walsh,
Assistant Director HWS
APPROVED AS TO FORM:

MINH C. TRAN

COUNTY COUNSEL
By‘' Paula S. Salcido,
Deputy County Counsel

CITY OF NORCO,
a Charter City
Name:

Title:

ATTEST'

BY:

City Clerk
APPROVED AS TO FORM:

BY:

City Attorney
BY:

Date: Date:

available
p_| I-I ©\O0O\]O\Lll-l>UJ[\) r? pi p._n l\) u—A r#U.) -l> >—- ON>—I K11 r--A 00 \I ># O0 \l O\ U1 -l> U.) l\) hi G \D EXHIBIT "R"
24 C.F.R. § 5.109
Equal participation of faith-based organizations in
HUD programs and activities.

Effective: May 4, 2016
(a) Purpose.

Consistent with (issued on December 12, 2002, ), entitled “Equal Protection of the Laws for Faith—Basedand Community Organizations,” as amended by (issued on November 17, 2010, ), entitled “Fundamental Principles and Policymaking Criteria for Partnerships With Faith—Based and Other Neighborhood Organizations,”, and further amended by Executive Order 13831 (issued on May 3, 2018, 83 FR 20715) entitled “Establishment of a White House Faith and Opportunity Initiative,” this section describes requirements for ensuring the equal participation of faith-based organizations in HUD programs and activities. These requirements apply to all HUD programs and activities, including all of HUD’s Native American Programs, except as may be otherwise noted in the respective program regulations in title 24 of the Code of Federal Regulations(CFR), or unless inconsistent with certain HUD program authorizing statutes. b) De?nitions. The following de?nitions apply to this section:

Direct Federal ?nancial assistance means Federal ?nancial assistance provided when a Federal Government agency or an intermediary, as de?ned in this section, selectsthe provider and either purchases services from that provider (i.e., via a contract) or awards funds to that provider to carry out an activity (e.g., Via grant, sub-grant, sub—award,or cooperative agreement). The recipients of sub-grants or sub-awards that receive Federal ?nancial assistance through State-administered programs (e.g., flow-through programs) are considered recipients of direct Federal ?nancial assistance. In general, Federal ?nancial assistance shall be treated as direct, unless it meets the de?nition of indirect Federal ?nancial assistance.

Federal ?nancial assistance means assistance that non—Federalentities receive or administer in the forms of grants, contracts, loans, loan guarantees, property, cooperative agreements, food commodities, direct appropriations, or other assistance, but does not include a tax credit, deduction, or exemption.

Indirect Federal ?nancial assistance means Federal ?nancial assistance provided when the choice of the provider is placed in the hands of the bene?ciary, and the cost of that service is paid through a voucher, certi?cate, or other similar means of Govemment-funded payment. Federal ?nancial assistance provided to an organization is considered indirectwhen the Government program through which the bene?ciary receives the voucher, certi?cate, or other similar means of Govemment-funded payment is neutral toward religion meaning that it is to providers without regard to the religious or non-religious nature of the institution and there are no program incentives that deliberately skew for or against religious or secular providers; and the organization receives the assistance as a result of a genuine, independent choice of the bene?ciary.

Intermediary means an entity, including a nongovernmental organization, acting under a contract, grant, or other agreement with the Federal Government or with a State, tribal or local government that accepts Federal ?nancial assistance and distributes that assistance to other entities that, in turn, carry out activities under HUD programs. (c) Equal participation of faith-based organizations in HUD programs and activities.

Executive Order 13279 67 FR 77141
Executive Order 13559
75 FR 71319

2000bb 2000bb-4
if y.._A ©\D0O\lO’\LI‘I-l>UJl\J —n l\) r#U) -I5 >—A ON U1 u-t 00 \] 06 \l ON {J1 4% la) I\) r—t O \O Faith-based organizations are eligible, on the same basis as any other organization, to participate in any HUD program or activity, considering any permissible accommodations, particulary under the Religious Freedome Restoration Act. Neither the Federal Government, nor a State, tribal or local government, nor any other entity that administers any HUD program or activity, shall discriminate against an organization on the basis of the organization’s religious character, af?liation, or lack thereof, or on the basis of the organization’s religious exercise. For purposes of this part, to discriminate against an organization on the basis of the organization’s religious exercise means to disfavor an organization, including by failing to select an organization, disqualifying an organization, or imposing any condition or selection criterion that otherwise disfavors or penalizes an organization in the selection process or has such an effect:
(1) Because of conduct that would not be considered groundsto disfavor a secular organization; (2) Because of conduct that must or could be granted an appropriate accommodation in a manner consistent with RFRA ( U.S.C. through or the Religion Clauses of the to the Constitution; or (3) Because of the actual or suspected religious motivation of the organization's religious exercise. (4) In addition, decisions about awards of must be free from political interference or even the appearance of such interference and must be made on the basis of merit, not based on the organization's religious character, af?liation, or lack thereof, or based on the organization's religious exercise. Notices of funding availability, grant agreements, and cooperative agreements shall include language substantially similar to that in appendix A to this subpart, where faith-based organizations are eligible for such opportunities. (d) Independence and identity of faith-based organizations. ( 1) A faith-based organization that applies for, or participates in, a HUD program or activity supported with Federal financial assistance retains its autonomy, right of expression, religious character, authority over its governance, and independence, and may continue to carry out its mission, including the de?nition, development, practice, and expression of its religious beliefs. A faith-based organization that receives Federal ?nancial assistance from HUD does not lose the protections of law. (2) A faith-based organization that receives direct Federal ?nancial assistance may use space (including a sanctuary, chapel, prayer hall, or other space) in its facilities (including a temple, synagogue, church, mosque, or other place of worship) to carry out activities under a HUD program without concealing, altering, or removing religious art, icons, scriptures, or other religious symbols. In addition, a faith-based organization participating in a HUD program or activity retains its authority over its internal governance, and may retain religious terms in its organization’s name, select its board members and employees on the basis of their acceptance of or adherence to the religious tenets of the organization consistent with paragraph (i) of this section), and include religious references in its organization’s mission statements and other governing documents. (e) Explicitly religious activities.

If an organization engages in explicitlyreligious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), the explicitly religious activities must be offered separately, in time or location, from the programs or activities supported by direct Federal ?nancial assistance and participation must be voluntary for the bene?ciaries of the programs or activities that receive direct Federal ?nancial assistance. The use of indirect Federal ?nancial assistance is not subject to this restriction.Nothing in this part restricts HUD’s authority under applicable Federal law to fund activities, that can be directly funded by the Government consistent with the Establishment Clause of the U.S. Constitution. (f) Intermediary responsibilitiesto ensure equal participation of faith-based organizations in HUD programs.

If an intermediary - acting under a contract, grant, or other agreement with the Federal Government or with a State, tribal or local government that is administering a program supported by Federal ?nancial assistance is Federal ?nancial assistance
First Amendment

Federal ?nancial assistance HUD
HHI
intermedia Federal ?nancial assistance HUD
U.S.C. 2000e—
—I ;_Ap_A v-A©\OOO\]O\Ul-PUJN) p—n 00 \l O\ U1 -B U.) l\.) —I G \O>-# COI—A \I>—-» «-4 O\ n—- LII >—-P U) r—- {Q given the authority to select a nongovernmental organization to receive Federal ?nancial assistance under a contract, grant, sub-grant, sub-award, or cooperative agreement, the intermediary must ensure that such organization complies with the requirements of this section. If the intermediary is a nongovernmental organization, it retains all other rights of a nongovernmental organization under the program’s statutory and regulatory provisions.
(g) Nondiscrimination requirements.

Any ornganization that receives under a ro rain or activi shall not, in q u u n n n a providing services with such assistance or carrying out activities with such assistance, discriminate against a bene?ciary or prospective bene?ciary on the basis of religion, religious belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice. However, an organizationthat participates in a program funded by indirect Federal ?nancial assistance need not modify its program or activitiesto accommodate a bene?ciary who chooses to expend the indirect aid on the organization's program and may require attendance at all activities that are fundamental to the program. (h) No additional assurances from faith-based organizations.

A faith-based organization is not rendered ineligible by its religious nature to access and participate in programs. Absent regulatory or statutory authority, no notice of funding availability, grant agreement, cooperative agreement, covenant, memorandum of understanding, policy, or regulation that is used by or a recipient or in administering from shall require otherwise eligible faith-based organizations to provide assurances or notices where they are not required of similarly situated secular organizations. All organizations that participate in programs or activities, including organizations with religious character or af?liations, must carry out eligible activities in accordance with all program requirements, subject to any required or appropriate accommodation, particularly under the Religious Freedom Restoration , and other applicable requirements governing the conduct of -funded activities, including those prohibiting the use of direct financial assistance to engage in explicitly religious activities. No notice of funding availability, grant agreement, cooperative agreement, covenant, memorandum of understanding, policy, or regulation that is used by or a recipient or in administering ?nancial assistance from shall disqualify otherwise eligible faith-based organizations from participating in 's programs or activities because such organization is motivated or in?uenced by religious faith to provide such programs and activities, or because of its religious character or af?liation, or on grounds that discriminate against an organization on the basis of the organization's religious exercise, as de?ned in this part. (i) Exemption from Title VII employment discrimination requirements.

A religious organization’s exemption from the Federal prohibition onemployment discrimination on the basis of religion, set forth in section 702(a) of the Civil Rights Act of 1964 ( ), is not forfeited when the organization participates in a HUD program. Some HUD programs, however, contain independent statutory provisions that impose certain nondiscrimination requirements on all grantees. Accordingly, grantees should consult with the appropriate HUD program of?ce to determine the scope of applicable requirements. (j) Acquisition, construction, and rehabilitation of structures.

Direct Federal ?nancial assistance may be used for the acquisition, construction, or rehabilitation of structures only to the extent that those structures are used for conducting eligible activities under a HUD program or activity.

Where a structure is used for both eligible and explicitly religious activities (including activitiesthat involve overt religious content such as worship, religiousinstruction,or proselytization), direct Federal ?nancial assistance may not exceed the cost of the share of acquisition, construction, or rehabilitation attributable to eligible activities in accordance with the cost accounting requirements applicable to the HUD program or activity. However, HUD
HUD intermedia HUD
HUD
HUD

HUD
applicant
Internal Revenue Code
State secreta State
State
state
HUD
applicant
Internal Revenue Code
n—- pi p_a ©\OOO\lO\U1-l>L»Jl\.) >— )—A [\J U) >—a LII -B O0 \l ON £11 -|>- U.) l\) >—- O \O 00 \l h—ON acquisition, construction, or rehabilitation of sanctuaries, chapels, or other rooms that a HUD—fundedfaith-based organization uses as its principal place of worship, may not be paid with direct Federal ?nancial assistance.

Disposition of real property by a faith-based organization after its use for an authorized purpose, or any change in use of the property from an authorized purpose, is subject to Govemment—wideregulations governing real property disposition (2 CFR part 200, subpart D) and the HUD program regulations, as directed by HUD. (k) Commingling of Federal and State, tribal, and local funds.

If a State, tribal, or local government voluntarily contributes its own funds to supplement direct Federal ?nancial assistance for an activity, the State, tribal or local government has the option to segregate those funds or commingle them with the direct Federal ?nancial assistance. However, if the funds are commingled, the requirements of this section apply to all of the commingled funds. Further, if a State, tribal, or local government is required to contribute matching funds to supplement direct Federal ?nancial assistance for an activity, the matching funds are considered commingled with the direct Federal ?nancial assistance and, therefore, subject to the requirements of this section. Some HUD programs’ requirements govern any activity assisted under those programs. Accordingly, recipients should consult with the appropriate HUD program office to determine the scope of applicable requirements.
(1)Tax exempt organizations.

In general, does not require that a recipient, including a faith-based organization, obtain tax-exempt status under section 501(c)(3) of the to be eligible for funding under programs. Many grant programs, however, do require an organization to be a nonpro?t organization in order to be eligible for funding.

Notices of funding availability that require organizations to have nonpro?t status will speci?cally so indicate in the eligibility section of the notice of funding availability. In addition, if any notice of funding availability requires an organization to maintain tax-exempt status, it will expressly the statutory authority for requiring such status. should consult with the appropriate program of?ce to determine the scope of any applicable requirements. In programs inwhich an must show that it is a nonpro?t organization but this is not statutorily de?ned, the may do so by any of the following means:
(1) Proof that the Internal Revenue Service currently recognizes the contributions are tax deductible under section 501(c)(3) of the , (2) A statement from a for other governmental taxing body or the of (i) The organization is a nonprofit organization operating within the ; and (ii) No part of its net earnings may bene?t any private shareholder or individual; as an organization to which
certifying that -
(3) A certi?ed copy of the 's certi?cate of incorporationor similar document that clearly establishesthe nonprofit status of the ;
(4) Any item described in paragraphs (l)(l) through (3) of this section, if that item applies to a State of national parents organization, together with a statement by the State of parent organization that the applicant is a local nonpro?t af?liate; or
(5) For an entity that holds a sincerely held religious belief that it cannot apply for a determination as an entity that is tax-exempt under section 501(c)(3) of the Internal Revenue Code, evidence suf?cient to establish that the entity would otherwise qualify as a nonpro?t organization under paragraphs (l)(l) through (4) of this section. (In) Rule of construction.
program or activity shall
with
Neither nor any recipient or other receiving funds under any construe these provisions in such a way as to advantage or disadvantage faith-based organizations historic or well-established religions or sects in comparison with other religions or sects.

Credits
af?liated
intermedia
applicant
apglicant
State
applicant
HUD
Applicants

1 )
q)
69FR41717 80FR75934 81 FR 19416
61 FR 5202 61 FR 9041 61 FR 9537 61 FR 11113
61 FR 13616 61 FR 54498 70 FR 77743 73 FR
72340 75 FR 66258 77 FR 5674 80 FR 42352 Q
FR 19416 81 FR 80798 81 FR 90657
12 U.S.C. 1701x 42 U.S.C. 1437 14370 1437d 1437f 1437n 3535(d) Pub.L.109— 115 119 Stat. 2936 Pub.L. 109-162 119 Stat. 3051 42 U.S.C. 14043e et se . E.O. 13279 67 FR 77141 3 E.O. 13559 75 FR 71319 3 29 U.S.C. 794
42 U.S.C. 1437a 1437c 14370-1 d 1437d 1437f 1437n 3535(d) Pub.L. 109-115 119 Stat. 2936 42 U.S.C. 5304 b 42 U.S.C. 12101 et se . 42 U.S.C. 12704 12708 E.O. 11063 27 FR 11527 3 E.O. 12892 59 FR 2939 3
put ;_A p_A L») l\)
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 [ ,July 9, 2004; Dec. 7, 2015; , April 4, 2016; 85 FR 82315, Dec 17, 2020] SOURCE: Feb. 9, 1996; , March 6, 1996; March 8, 1996;
March 18, 1996; , March 27, 1996; , Oct. 18, 1996; Dec. 30, 2005; , Nov. 28, 2008; Oct. 27, 2010; Feb. 3, 2012; July 16, 2015; , April 4, 2016; Nov. 16, 2016; Dec. 14, 2016, unless otherwisenoted.

AUTHORITY: , , , , , ; Sec. 327,
, Sec. 607, (
' CFR, 2010 Comp., p. 273.;
, , , and Sec. 327,
; 42 U.S.C. 3600-3620; ; ;
CFR, 1958-1963 Comp., p. 652;
CFR, 2002 Comp., p. 258; and
CFR, 1994 C0mp., p. 3:49.

Page of2
EXHIBIT “S”
>— ;_i y_i Di ©\OOO\IO\Ul-P-UJ[\) g—n DJ [0 >—a -Jk C\ n—I U] G \O O0 \1 \] O\ U1 L») l\) >—A 00 Economic Opportunities for Low- and Very Low-Income Persons

CONTRACT REQUIREMENTS
24 CFR Part 75

RIVERSIDE COUNTY
Section 75.1 Pur ose
This part establishesthe requirementsto be followed to ensure the objectives of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. l701u) (Section 3) are met. Th purpose of Section 3 is to ensure that economic opportunities, most importantly employment, e generated by certain HUD ?nancial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or resident of the community in which the Federal assistance is spent. s Section 75.3 A licabili
(a) General applicability. Section 3 applies to public housing ?nancial assistance and Section 3 projects, as follows:
(1) Public housing ?nancial assistance. Public housing ?nancial assistance means:
(i) Development assistance provided pursuant to section 5 of the United States Housing Act of 1937 (the 1937 Act);
(ii) Operations and management assistance provided pursuant to section 9(e) of the 1937 Act; (iii) Development,modernization, and management assistance provided pursuant to section 9(d) of the 1937 Act; and
(iv) The entirety of a mixed-?nance development project as described in 24 CFR 905.604, regardless of whether the project is fully or partially assisted with public housing ?nancial assistance as de?ned in paragraphs (a)(1)(i) through (iii) of this section. (2) Section 3 projects. (i) Section 3 projects means housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development ?nancial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The threshold is $100,000 where the assistance is from the Lead Hazard Control and Healthy Homes programs, as authorized by Sections 501 or 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-1 or 170lz-2), the Lead-Based Paint Poisoning Prevention Act (42 U.S.C 4801 et seq.); and the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et seq.). The project is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and ?nancing.

p_n CD\0OO\lC\U1-P-UJI\) #1‘ pg [\3 »-—A U.) \] C‘\ Li‘: -5 >-—¢ 00 \l O\ {/1 U.) l\) r-- O \D 00 (ii) The Secretary must update the thresholds provided in paragraph (a)(2)(i) of this section not less than once every 5 years based on a national construction cost in?ation factor through Federal Register notice not subject to public comment. When the Secretary ?nds it is warranted to ensure compliancewith Section 3, the Secretary may adjust, regardless of the national construction cost factor, such thresholds through Federal Register notice, subject to public comment. (iii) The requirements in this part apply to an entire Section 3 project, regardless of whether the project is fully or partially assisted under HUD programs that provide housing and community development ?nancial assistance.
(b) Contracts for materials. Section 3 requirements do not apply to material supply contracts. (c) Indian and Tribal preferences. Contracts, subcontracts, grants, or subgrantssubject to Section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5307(b))or subject to tribal preference requirements as authorized under 101(k) of the Native American Housing Assistance and Self-Determination Act (25 U.S.C. 411l(k)) must provide preferences in employment, training, and business opportunities to Indians and Indian organizations, and are therefore not subject to the requirements of this part. (d) Other HUD assistance and other Federal assistance. Recipientsthat are not subject to Section 3 are encouraged to consider ways to support the purpose of Section 3.

Section 75. 5 De?nitions.

The terms HUD, Public housing, and Public Housing Agency (PHA) are de?ned in 24 CFR part

5. The following de?nitions also apply to this part:
1937Act means the United States Housing Act of 1937, 42 U.S.C. 1437 et seq.

Contractor means any entity entering into a contract with:
(1) A recipient to perform work in connection with the expenditure of public housing ?nancial assistance or for work in connection with a Section 3 project; or (2) A subrecipientfor work in connection with a Section 3 project.

Labor hours means the number of paid hours worked by persons on a Section 3 project or by persons employed with fundsthat include public housing ?nancial assistance.

Low-income person means a person as de?ned in Section 3(b)(2) of the 1937 Act.

Material supply contracts means contracts for the purchase of products and materials, including, but not limited to, lumber, drywall, wiring, concrete, pipes, toilets, sinks, carpets, and of?ce supplies.

Professionalservices means non-construction services that require an advanced degree or professional licensing, including, but not limited to, contracts for legal services, ?nancial

©©OO\lO‘\U‘I-I>bJl\.) ;_; p_A O0 \] C\ LII U0 l\J U0 —A 24 consulting, accounting services, environmental. assessment, architectural services, and civil engineering services.

Public housing ?nancial assistance means assistance as de?ned in §75.3(a)(1).

Public housing project is de?ned in 24 CFR 905.108.

Recipient means any entity that receives directly from HUD public housing ?nancial assistance or housing and community development assistance that funds Section 3 projects, including, but not limited to, any State, local government, instrumentality, PHA, or other public agency, public or private nonpro?t organization.

Section 3 means Section 3 of the Housing and Urban DevelopmentAct of 1968, as amended (12 U.S.C. 1701u).

Section 3 business concern means:
(1) A business concern meeting at least one of the following criteria, documented within the last six-month period:
(i) It is at least 51 percent owned and controlled by low- or very low-income persons; (ii) Over 75 percent of the labor hours performed for the business over the prior threemonth period are performed by Section 3 workers; or (iii) It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8—assistedhousing. (2) The status of a Section 3 business concern shall not be negatively affected by a prior arrest or conviction of its owner(s) or employees.
(3) Nothing in this part shall be construed to require the contracting or subcontracting of a Section 3 business concern. Section 3 business concerns are not exempt from meeting the speci?cations of the contract.

Section 3 project means a project de?ned in §75.3(a)(2).

Section 3 worker means:
(1) Any worker who currently ?ts or when hired within the past ?ve years ?t at least one of the following categories, as documented:
(i) The worker's income for the previous or armualized calendar year is below the income limit established by HUD.
(ii) The worker is employed by a Section 3 business concern.

;_n ©\OOO\lO’\UI-I>bJ[\) p—a DJ l\) O \o 00 \l ON U1 -P i—| ON U1 U.) l\) 00 \I (iii) The worker is a YouthBuild participant.
(2) The status of a Section 3 worker shall not be negatively affected by a prior arrest or conviction. (3) Nothing in this part shall be construed to require the employment of someone who meets this de?nition of a Section 3 worker. Section 3 workers are not exempt from meeting the quali?cations of the position to be ?lled.

Section 8-assisted housing refers to housing receiving project-based rental assistance or tenantbased assistance under Section 8 of the 1937 Act.

Service area or the neighborhood ofthe project means an area within one mile of the Section 3 project or, if fewer than 5,000 people live within one mile of a Section 3 project, within a circle centered on the Section 3 project that is suf?cient to encompass a population of 5,000 people according to the most recent U.S. Census.

Small PHA means a public housing authority that manages or operates fewer than 250 public housing units.

Subcontractor means any entity that has a contract with a contractor to undertake a portion of the contractor's obligation to perform work in connection with the expenditure of public housing ?nancial assistance or for a Section 3 project.

Subrecipient hasthe meaning provided in the applicableprogram regulations or in 2 CFR 200.93.

Targeted Section 3 worker has the meanings provided in §§75.1 1, 75.21, or 75.29, and does not exclude an individual that has a prior arrest or conviction.

Very low-income person means the de?nition for this term set forth in section 3(b)(2) of the 1937 Act.

YouthBuild programs refers to YouthBuild programs receiving assistance under the Workforce Innovation and Opportunity Act (29 U.S.C. 3226).

Subpart C—Additional Provisions for Housing and Community Development Financial Assistance
§75.19 Requirements.
(a) Employment and training. (1) To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this Subpart shall ensure that employment and training opportunities arising in connection with Section 3 projects are provided to Section 3 workers within the metropolitan area (or nonmetropolitan county) in which the project is located.
(2) Where feasible, priority for opportunities and training described in paragraph (a)(1) of this section should be given to:

|—-I ;_.A D1‘ ©\.OOO\lO‘\Ul-l>-UJl\.) p_| O \O 00 \] ON U1 -K DJ l\) r—- 00 \l O'\ U1 [\J (i) Section 3 workers residing within the service area or the neighborhood of the project, and (ii) Participantsin YouthBuild programs.
(b) Contracting. (1) To the greatest extent feasible, and consistent with existing Federal, state, an local laws and regulations, recipients covered by this subpart shall ensure contracts for work awardedd in connection with Section 3 projects are provided to business concerns that provide economic opportunities to Section 3 workers residing within the metropolitan area (or nonmetropolitan county) in which the project is located.
(2) Where feasible, priority for contracting opportunities described in paragraph (b)(1) of this section should be given to:
(i) Section 3 business concerns that provide economic opportunities to Section 3 Workersresiding within the service area or the neighborhood of the project, and (ii) YouthBuild programs.
§75.21 Targeted Section 3 worker for housing and community development financial assistance. (a) Targeted Section 3 worker. A Targeted Section 3 worker for housing and community development ?nancial assistance means a Section 3 worker who is:
(1) A worker employed by a Section 3 business concern; or (2) A worker who currently ?ts or when hired ?t at least one of the following categories, as documented within the past ?ve years:
(i) Living within the service area or the neighborhood of the project, as de?ned in §75.5; or (ii) A YouthBuild participant.
§75.23 Section 3 safe harbor.
(a) General. Recipientswill be considered to have complied with requirements in this part, in the absence of evidence to the contrary if they:
(1) Certify that they have followed the prioritization of effort in §75.l9; and (2) Meet or exceed the applicable Section 3 benchmark as described in paragraph (b) of this section.
(b) Establishing benchmarks. (1) HUD will establish Section 3 benchmarks for Section 3 workers or Targeted Section 3 workers or both through a document published in the FEDERALREGISTER.HUD may establish a single nationwide benchmark for Section 3 workers and a single nationwide (b) [Reserved]

)—A ;_A »—©\OOO\lO\U'I-bUJl\) )——| -5 DJ l\J >—-» U1 r—--» O KO 00 Q O\ I—I 00 \l C\ U1 U.) [Q benchmark for Targeted Section 3 workers, or may establish multiple benchmarks based on geography, the nature of the Section 3 project, or other variables. HUD will update the benchmarks through a document published in the FEDERALREGISTER,subject to public comment, not less frequently than once every 3 years. Such notice shall include aggregate data on labor hours and the proportion of recipients meeting benchmarks, as well as other metrics reported pursuant to §75.25 as deemed appropriate by HUD, for the 3 most recent reporting years. (2) In establishing the Section 3 benchmarks, HUD may consider the industry averages for labor hours worked by speci?c categories of workers or in different localities or regions; averages for labor hours worked by Section 3 workers and Targeted Section 3 workers as reported by recipients pursuant to this section; and any other factors HUD deems important. In establishing the Section 3 benchmarks, HUD will exclude professional services from the total number of labor hours as such hours are excluded from the total number of labor hours to be reported per §75.25(a)(4). (3) Section 3 benchmarks will consist of the following two ratios:
(i) The number of labor hours worked by Section 3 workers divided by the total number of labor hours worked by all workers on a Section 3 project in the recipient's program year. (ii) The number of labor hours worked by Targeted Section 3 workers as de?ned in §75.21(a), divided by the total number of labor hours worked by all workers on a Section 3 project in the recipient's program year.
§75.25 Reporting.
(a) Reporting oflabor hours. (1) For Section 3 projects, recipientsmust report in a manner prescribed by HUD:
(i) The total number of labor hours worked;
(ii) The total number of labor hours worked by Section 3 workers; and (iii) The total number of labor hours worked by Targeted Section 3 workers. (2) Section 3 workers’ and Targeted Section 3 workers’ labor hours may be counted for ?ve years from when their status as a Section 3 worker or Targeted Section 3 worker is established pursuant to §75.31.
(3) The labor hours reported under paragraph (a)(l) of this section must include the total number of labor hours worked on a Section 3 project, including labor hours worked by any subrecipients, contractors and subcontractors that the recipient is required, or elects pursuant to paragraph (a)(4) of this section, to report.
(4) Recipients reporting under this section, as well as subrecipients, contractors and subcontractors who report to recipients, may report labor hours by Section 3 workers, under paragraph (a)(l)(ii) of this section, and labor hours by Targeted Section 3 workers, under paragraph (a)(1)(iii) of this section, from professional services without including labor hours from professional services in the

>—©\O0O\10\Ul-l>U)l\.) p_n —A _A_A 00 \l O\ U1 -B L») [\J u-- O '\D u—I O0 \] O\ »—n r#U‘: >—I -P y_. D.) [U total number of labor hours worked under paragraph (a)(l)(i) of this section. If a contract covers both professional services and other work and the recipient or contractor or subcontractor chooses not to report labor hours from professional services,the labor hours under the contract that are not from professional services must still be reported.
(5) Recipients may report their own labor hours or that of a subrecipient,contractor, or subcontractor based on the employer's good faith assessment of the labor hours of a full-time or parttime employee informed by the employer's existing salary or time and attendance based payroll systems, unless the project or activity is otherwise subject to requirements specifying time and attendance reporting.
(b) Additional reporting ifSection 3 benchmarks are not met. If the recipient'sreporting under paragraph (a) of this section indicates that the recipient has not met the Section 3 benchmarks described in §75.23, the recipient must report in a form prescribed by HUD on the qualitative nature of its activities and those its contractors and subcontractors pursued. Such qualitative efforts may, for example, include but are not limited to the following:
(1) Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers. (2) Provided training or apprenticeship opportunities.
(3) Provided technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance,coaching).
(4) Provided or connected Section 3 workers with assistance in seeking employment including:
drafting resumes, preparing for interviews,and finding job opportunities connecting residents to job placement services.
(5) Held one or more job fairs.
(6) Provided or referred Section 3 workers to services supporting work readiness and retention (e.g., work readiness activities, interview clothing, test fees, transportation,child care). (7) Provided assistance to apply for/or attend community college, a four-year educational institution, or vocational/technical training.
(8) Assisted Section 3 workers to obtain ?nancial literacy training and/or coaching. (9) Engaged in outreach efforts to identify and secure bids from Section 3 business concerns. (10) Provided technical assistance to help Section 3 business concerns understand and bid on contracts.
(11) Divided contracts into smallerjobs to facilitate participation by Section 3 business concerns. (12) Provided bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.

I“

D—‘ pj ;_A »—©\O0O\]O\Ul-l>L»J[\) ,_n G \O 00 \] ON LII -5 U) l\J ># O0 \) Q U1 La.) l\) (13) Promoted use of business registries designed to create opportunities for disadvantaged and small businesses.
(14) Outreach, engagement, or referrals with the state one-stop system as de?ned in Section 121(c)(2) of the Workforce Innovation and Opportunity Act. (c) Reporting frequency. Unless otherwise provided, recipients must report armually to HUD under paragraph (a) of this section, and, where required, under paragraph (b) of this section, on all projects completed within the reporting year in a manner consistent with reporting requirements for the applicable HUD program.
§75.27 Contract provisions.
(a) Recipientsmust include language applying Section 3 requirements in any subrecipient agreement or contract for a Section 3 project.
(b) Recipients of Section 3 ?inding must require subrecipients, contractors, and subcontractorsto meet the requirementsof §75.l9, regardless of whether Section 3 language is included in recipient or subrecipient agreements, program regulatory agreements, or contracts.

Subpart D—Provisions for Multiple Funding Sources, Recordkeeping, and Compliance
§75.29 Multiple funding sources.
(a) If a housing rehabilitation, housing constructionor other public construction project is subject to Section 3 pursuant to §75.3(a)(l) and (2), the recipientmust follow subpart B of this part for the public housing ?nancial assistance and may follow either subpart B or C of this part for the housing and community development ?nancial assistance. For such a project, the following applies:
(1) For housing and community development ?nancial assistance, a Targeted Section 3 worker is any worker who meets the de?nition of a Targeted Section 3 worker in either subpart B or C of this part; and
(2) The recipients of both sources of funding shall report on the housing rehabilitation, housing construction, or other public construction project as a whole and shall identify the multiple associated recipients. PHAS and other recipients must report the following information:
(i) The total number of labor hours worked on the project; (ii) The total number of labor hours worked by Section 3 workers on the project; and (iii) The total number of labor hours worked by Targeted Section 3 workers on the project. (b) If a housing rehabilitation, housing construction,or other public construction project is subject to Section 3 because the project is assisted with fimding from multiple sources of housing and community development assistance that exceed the thresholds in §75.3(a)(2), the recipient or recipients

y_; )—l ©\O0O\]O\U1-¥>UJl\) )—n ,_n )—A O\ LII -§ DJ l\.) O \O O0 \l r—- 00 \l O\ U1 A L») [O must follow subpartC of this part, and must report to the applicableHUD program office, as prescribed by HUD.
§75.31 Recordkeeping.
(a) HUD shall have access to all records, reports, and other documents or items of the recipient that are maintained to demonstrate compliance with the requirements of this part, or that are maintained in accordance with the regulations governing the speci?c HUD program by which the Section 3 project is governed, or the public housing ?nancial assistance is provided or otherwise made available to the recipient, subrecipient, contractor, or subcontractor. (b) Recipients must maintain documentation, or ensure that a subrecipient, contractor, or subcontractor that employs the worker maintains documentation, to ensure that workers meet the de?nition of a Section 3 worker or Targeted Section 3 worker, at the time of hire or the ?rst reporting period, as follows:
(1) For a worker to qualify as a Section 3 worker, one of the following must be maintained:
(i) A worker's self-certi?cation that their income is below the income limit from the prior calendar Year;
(ii) A worker's self-certi?cation of participation in a means-tested program such as public housing or Section 8-assisted housing;
(iii) Certi?cation from a PHA, or the owner or property manager of project-based Section 8- assisted housing, or the administrator of tenant-based Section 8-assisted housing that the worker is a participant in one of their programs;
(iv) An employer's certi?cation that the worker's income from that employer is below the income limit when based on an employer's calculation of what the worker's wage rate would translate to if annualized on a full-time basis; or
(V)An employer's certi?cation that the worker is employed by a Section 3 business concern. (2) For a worker to qualify as a Targeted Section 3 worker, one of the following must be maintained:
(i) For a worker to qualify as a Targeted Section 3 worker under subpart B of this part:
(A) A worker's self-certi?cation of participation in public housing or Section 8-assisted housing programs;
(B) Certi?cation from a PHA, or the owner or property manager of project-based Section 8— assisted housing, or the administrator of tenant—basedSection 8-assisted housing that the worker is a participant in one of their programs;
(C) An employer's certi?cation that the worker is employed by a Section 3 business concern; or

O0 ONUI-I}-UJl\J
10 ll
12 13
14 15
16 17
18 19
20 21
(D) A worker's certi?cation that the worker is a YouthBuild participant. (ii) For a worker to qualify as a Targeted Section 3 worker under subpart C of this part:
(A) An employer's con?rmation that a worker's residence is within one mile of the work site or, if fewer than 5,000 people live within one mile of a work site, within a circle centered on the work site that is suf?cient to encompass a population of 5,000 people according to the most recent U.S. Census; (B) An employer's certi?cation that the worker is employed by a Section 3 business concern; or (C) A worker's self-certi?cation that the worker is a YouthBuild participant. (c) The documentation described in paragraph (b) of this section must be maintained for the time period required for recordretentions in accordance with applicable program regulations or, in the absence of applicable program regulations, in accordance with 2 CFR part 200. (d) A PHA or recipient may report on Section 3 workers and Targeted Section 3 workers for ?ve years from when their certi?cation as a Section 3 worker or Targeted Section 3 worker is established. §75.33 Compliance.
(a) Records ofcompliance. Each recipient shall maintain adequate records demonstrating compliance with this part, consistent with other recordkeeping requirements in 2 CFR part 200. (b) Complaints. Complaints alleging failure of compliance with this part may be reported to the HUD program of?ce responsible for the public housing ?nancial assistance or the Section 3 project, or to the local HUD ?eld of?ce.
(c) Monitoring. HUD will monitor compliance with the requirements of this part. The applicable HUD program of?ce will determine appropriate methods by which to oversee Section 3 compliance. HUD may impose appropriate remedies and sanctions in accordance with the laws and regulations for the program under which the violation was found
22 23
24 25
27 28
26

U .MV 2VM93DW7M6
PHONE: 951-270-5633 FAX: 951 270-5681
E-MAIL: lsassoon ci.norco.ca.us
I. GENERAL INFORMATION
CITY NAME: Ci of Norco
ADDRESS: 2870 Clark Avenue

SUPPLEMENTAL AGREEMENT

SCOPE OF WORK
(NON-PUBLIC SERVICE)

EXHIBIT
FileNo.: 2.NR.61-23
PROJECT NAME: Communi Center Park ADA S nthetic Poured In Place Surface Pro'ect PROJECT LOCATION: 3900 Acacia Avenue, Norco, CA 92860
LEVEL OF ENVIRONMENTAL CLEARANCE: [24 CFR 58.35 (a)(1)] CDBG ELIGIBILITY CODE: 570.201 (c)
PROJECT FUNDING SUMMARY: $60,782
Project to be administered by County (I-IWS) on behalf of City: YES E] NO II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2023-2024 Community Development Block Grant for the Community Center Park ADA Synthetic Poured In Place Surface Project in a manner satisfactory to the County of Riverside and consistent with any standardsrequired as a condition of providing these funds.

Such program will include the following activities eligible under the Community Development Block Grant pro gram:

Activity #1 The City ofNorco will use CDBG fundsto remove the ground surfaceat Community Center Park and replace it with ADA-compliantsynthetic surfacing. CDBG fundswill be used to pay for the design, construction, project management, compliance monitoring, inspection, and other related expenses.

PROGRAM CONTACTS: Lori Sassoon, Ci Mana er
Norco, CA 92860
EI

( )(_)Q( )

EXHIBITA
FileNo.: 2.NR.61-23
B. National Objective
All activities funded with CDBG funds must comply with one of more of the CDBG program’s National Objective Criteria as required under 24 CFR 570.200(a)(2). City certi?es that the activity(ies) carried out under this Agreement will meet the following National Objective:

National Objective Criteria: 570.208 a 2 i A
CFR Reference: Low Mod Limited Clientele Presumed
C. Levels of Accomplishment - Goals and Performance Measures The City agrees to implement and complete the following activity(ies):

Activity #1: Remove the ground surfaceat Community Center Park and replace withADA compliant synthetic surfacing
Activity #2: Design, construction, project management, compliance monitoring, inspection, and other related expenses.

CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives (select one): Creating Suitable Living Environments Providing Decent Affordable Housing
Creating Economic Opportunities
Outcome (select one): Availability/Accessibility
Affordability
Sustainability (promoting livable or viable communities) D. City Capacity
By executing this Supplemental Agreement, the City certi?es that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and suf?cient amount of ?nancial resources necessary to implement and carry out the activities funded with CDBG funds.

City will immediately notify County of any signi?cant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient’s performance under this Agreement.

Any changes in the above items are subject to the prior approval of the County.

E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as detennined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being noti?ed by the County, contract suspension or termination procedures will be initiated.

EDD EDD

EXHIBITA
FileNo.: 2.NR.61-23
F. Program Budget
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $60,782 Drawdowns for the payment of eligible expenses shall be made against the line item budgets speci?ed in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient’s ?nancial management system in accordance with the Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).

The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City.

Line Item Total of Non- Total Activity/Project Notes
CDBG Funds Budget
$9,500 $70,282
Design/Engineering Costs
Project Administration Costs
Construction Costs
Acquisition Costs
Relocations Costs
Capital Equipment Costs
Code Enforcement
Interim Assistance
Indirect Costs:

TOTAL CDBG BUDGET $60,782 $9,500 $70,282

Clearance
CDBG Granted
Funds

SOURCE AMOUNT TOTAL
G. Total Amount of Non- CDBG Leveraging

EXHIBITA
File No.2 2.NR.61-23
III.

1. ADMINISTRATIVE REQUIREMENTS
Accounting Standards
The City agrees to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.

Cost Principles
The City shall administer its program in conformance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).

These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.

Documentation and Record Keeping
Records to be Maintained
The Subrecipient shall maintainall records required by the Federal regulations speci?ed in 24 CFR 570.506 that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:

I
ii.
iii.
iv.

V.
vi.

Records providing a full description of each activity undertaken; Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program;
Records required to determine the eligibility of activities; Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance;
Records documenting compliance with the fair housing and equal opportunity components of the CDBG program;
Financial records as required by 24 CFR 570.502, and 2 CFR 200; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570.

SOURCE AMOUNT
Measure R $9,500
TOTAL: $9,500
OTHER

PRIVATE
STATE/LOCAL $9,500

FEDERAL
AMOUNT r*““”*“

I SOURCE

EXHIBITA
FileNo.: 2.NR.61-23

2. Records Retention
The City shall retain all CDBG-related ?nancial records, supporting documents, contracts, and agreements for a period of four (4) years. The retention period begins on the date of the submission of the County’s annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported for the ?nal time. The City will retain all National Objective documentation, including low-moderate income certi?cation, ethnicity, and other pertinent data for a period of four (4) years after submission of the County’s annual performance and evaluation report to HUD.

Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actionsthat involve any of the records cited and that have started before the expiration of the four-year period, then such records must be retained until completion of the actions and resolution of all issues.

3. Client Data
The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review unon reauest.

4. Disclosure
The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County’s or City’s responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.

5. Close-outs
The City’s obligation to the County shall not end until all close—outrequirements are completed.

Activities during this close-out period shall include, but are not limited to: making ?nal payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income.

6. Audits & Ins ections
All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any de?ciencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits the Single Audit Act, and the Of?ce of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre-approved by County, City will perform and completethe activities described in Section II in conformance with the schedule of tasks and milestones listed below:

Tasks / Milestone Start Date Com letion Date
Complete CDBG Training September 2023 September 2023
Implement Project Activities Upon Noti?cation from HWS
Execute Supplemental Agreement September 2023 January 2024 & Notice to Incur Cost
Tasks / Milestone Start Date Com letion Date

EXHIBIT
FileNo.: 2.NR.61-23

1. City executes Supplemental Agreement; receives Authorization to Incur Cost letter

2. City prepares ?nal construction documents (incorporating Special Federal Provisions) for HWSreview and S eci?c Pro'ect Activities
Submit Quarterly Performance Reports to County October 2023 Through June 2025 County Monitoring of City Program/Performance To be determined by Program Manager To be determined by Program Manager
City Submits Reimbursement Requests
Monthly Submittal D
Other Schedule El
CDBG-funded Pr0'ect Com lete
HWS authorizes City to advertisefor bids
HWS reviews and approves bidding process
City awards construction contract
City and HWS conduct “pre-construction meeting”
HWS authorizes City to issue “Notice to Proceed”
June 15, 2025

approval

,.

EXHIBITA
FileNo.: 2.NR.61—
23 V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS
The City must follow proper procurement and construction policies and proceduresof the City and CDBG regulations. Construction shall commence using CDBG funding with a Notice to Proceed.

A pre-construction meeting is required. The City must contact the CDBG Program Manager for review before submitting RFP, construction activity, or cost without prior written approval. The County must be contacted 10(ten) days in advance for attendance of the Pre-Construction meeting.

Original signed Certi?ed payrolls are to be submitted on a weekly basis to the HWS-CDBG program manager once construction starts.

CITY PROGRAM CONTACTS: Lori Sassoon, City Manager
SUBRECIPIENT NAME: City of Norco
ADDRESS: 2870 Clark Avenue, Norco, CA 92860

SUPPLEMENTAL AGREEMENT

SCOPE OF WORK
(PUBLIC SERVICE)
E-MAIL: lsassoon ci.norco.ca.us
PHONE: 951-270-5647 FAX: 951 371-1553
PROJECT NAME: Senior Center Recreation and Communi Services PROJECT LOCATION: 2690 Clark Avenue Norco CA 92860
LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT [24 CFR 58.34 (a)(4)] CDBG ELIGIBILITY CODE: 24 CFR 570.201 (e) Public Services PROJECTFUNDING SUMMARY: $12,500
Project to be administered by County (HWS) on behalf of CITY: YES I:] NO IE H. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2023-2024 Community Development Block Grant for the Senior Center Recreation and Community Services in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:

Activity #1 The City will provide various health, recreational, educational, and social programs for seniors at the Rose M Eldridge Senior Center in the City ofNorco. CDBGfundswill be used to pay forsta? salaries (direct cost) and other program-related expenses.

I. GENERAL INFORMATION
CITY NAME: City of Norco Department of Community Services UEI#: MV2VM93DW7M6 ADDRESS: 2870 Clark Avenue
Norco, CA 92860

EXHIBIT B
File No.: 2.NR.62-23

B. National Objective
All activities funded with CDBG funds must comply with one of more of the CDBG program’s National Objective Criteria as required under 24 CFR 570.200(a)(2). CITY certi?es that the activity (ies) carried out under this Agreement will meet the following National Objective:

National Objective Criteria: 570.208 (a)(2)(i)(A)
CFR Reference: Low Mod Limited Clientele Presumed
C. Levels of Accomplishment — Goals and Performance Measures The City agrees to provide the following levels of program services:

Units Total Total
er Month Units/Year Undu licated Persons
Activity #1 Provide various health, recreational, educational, and social programs for seniors at the Rose M Eldridge Senior Center in the City ofNorco.

Unit of Service is de?ned as: seniors served

CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives (select one): XICreating Suitable Living Environments E] Providing Decent Affordable Housing
I:] Creating Economic Opportunities
Outcome (select one): IXAvailability/Accessibility
I:IAffordability
I:] Sustainability (promoting livable or viable communities) D. City Capacity
By executing this Supplemental Agreement, the City certi?es that it and its subrecipients have the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and pennitting, and sufficient amount of ?nancial resources necessary to implement and carry out the activities funded with CDBG funds.

City will immediately notify County of any signi?cant changesin organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact City’s performance under this Agreement. Any changes in the above items are subject to the prior approval of the County.

E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being noti?ed by the County, contract suspension or termination procedures will be initiated.

150 150
Activity

EXHIBIT B
File No.: 2.NR.62-23

CDBG Granted
Funds

EXHIBIT B
File No.: 2.NR.62-23
F. Program Budget
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $12,500. Drawdowns for the payment of eligible expenses shall be made against the line item budgets speci?ed in this Section and in accordance with performance. Payments may be contingent upon certi?cation of the Subrecipient’s?nancial management system in accordance with the standards speci?ed in Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).

The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementarybudget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City.

Line Item Total Non- Total Notes
CDBG Funds Activity/Project
Bud et
Total Direct Program $134,281 $146, 781
Expenses
Salaries
Fringe
Of?ce Space (Program Only)
Utilities
Communications
Reproduction/Printing
Supplies and Materials
Mileage
Equipment (Program Only)
Audit
Transportation
Other:
><i><!
Total Indirect Program 33
Expenses
Indirect Costs (Specify)*
TOTAL CDBG BUDGET $12,500 $134,281 $146,781
All indirect costs must be pre-approved by the County. City must submit an Indirect Cost Allocation Plan to County, in a form specified by County, demonstrating the appropriate share of general and administrative costs.

$ 12,500

__- "
?aft I‘ ,- 1:.if
"mm “ SOUIE13_A‘1'\716tTNT‘* SOURCE l_T0

FEDERAL

PRIVATE
OTHER
$3,200
TOTAL: $134 281
RCTC $6,
Grant
__i”%"T

SOURCE AMOUNT
G. Total Amount of Non- CDBG Leveraging
III.

C.
l.

ADMINISTRATIVE REQUIREMENTS
Accounting Standards
The City agrees to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.

Cost Principles
The City shall administer its program in conformance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).

These principles shall be appliedfor all costs incurred whether charged on a direct or indirect basis.

Documentation and Record Keeping
Records to be Maintained.

The City and its subrecipients will maintain all records required by the Federal regulations speci?ed in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:
'
Records providing a full description of each activity undertaken; .p_n.
1i. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program;
iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; v. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program;
vi. Financial records as required by 24 CFR 570.502, and 2 CFR 200; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570.

RCTC
Match
Program
Revenues $1,200 Donations $1,200
(“
STATE/LOCAL $130,981

EXHIBIT B
File No.2 2.NR.62—

EXHIBIT B
File No.: 2.NR.62-23

2. Records Retention:

The City shall retain all CDBG-related ?nancial records, supporting documents, contracts, and agreements for a period of four (4) years. The retention period begins on the date of the submission of the County’s annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported for the ?nal time. The City will retain all National Objective documentation, including lowmoderate income certi?cation, ethnicity, and other pertinent data for a period of four (4) years after submission of the County’s annual performance and evaluation report to HUD. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the four-year period, then such records must be retained until completion of the actions and resolution of all issues.

3. Client Data:

The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such informationshall be made available to County monitors or their designees for review upon request.

4. Disclosure:

The City understandsthat client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County’s or City’s responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and;in the case of a minor, that of a responsible parent/guardian.

5. Close-outs:

The City’s obligationto the County shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making ?nal payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records.

Notwithstanding the foregoing, the terms of this Agreement shallremain in effect during any period that the City has control over CDBG funds, including program income.

6. Audits & Ins ections:

All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any de?ciencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits, the Single Audit Act, and the Of?ce of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

Tasks / Milestone Start Date Com letion Date
Complete Sponsor September 2023 September 2023
Training
Implement Program Activities July 1, 2023 ‘ March 29, 2024 Execute Supplemental Agreement September 2023 January 2024 & Notice to Incur Cost
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre-approved by County, CITY will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below:

City Submits Quarterly October 2023 March 29, 2024 2
Performance Reports to County
County Monitoring of City TBD
Performance
City Submits Monthly October 2023 March 29, 2024 3 Direct Bene?t Reports City Submits Reimbursement October 2023 March 29, 2024 4 Requests 1 The Notice to Incur Cost Letter will providethe speci?c program implementation date for this CDBG-funded activity.
2, 3, 4 Submittal of required documentation is determined by the speci?c bene?t period of the CDBGfunded activity. Con?rm performance requirements with CDBG Program Manager.

CDBG PrograinServices Complete March 29, 2024
V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS
Sponsor must collect eligibility Self—Certi?cations from EVERY artici ant in the CDBGfunded ro ram. At a minimum, participants must certify that they are 55 years of age or older, and they must report their race. This documentation must be submitted to HWS on a monthly basis for new participants unless otherwise authorized in writing by CDBG program staff.

Once the Notice to Incur Cost letter is received, City must submit monthly reimbursement requests unless another schedule is approved, in writing, by HWS. Further, at least 75% of all 2023-24 CDBG funds must be drawn down by January 12, 2024, and 100% of all 2023-24 CDBG funds must be drawn down by March 29, 2024.

EXHIBIT B
File No.: 2.NR.62-23

City Council

STAFF REPORT
Date: November 1, 2023 Agenda Item:

2.D.

To: Honorable Mayor and City Council Members
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:

Acceptance of Bids and Award of Contract for the Sundance Park Boundary Wall Restoration Project, and appropriation of Measure R Funds for the Proposed Project RECOMMENDATION:

Accept bids and award the contract to Act 1 Construction, Inc. for the Sundance Park Boundary Wall Restoration Project in the amount of $92,502, and authorize the City Manager to approve contract change orders up to 10% of the original contract; Appropriate Measure R Funds in the amount of $120,000 to fund the cost of the project that includes a 10% contingency, design and incidental costs.

SUMMARY:

The concrete masonry unit (CMU) block wall that borders the northern and westerly sections of the park is in disrepair and requires reconstruction to ensure the stability of the block wall. Currently, there are sections of the wall that have failed and there is a need to have this wall reconstructed before any additional damage occurs. The funding request for Measure R funds was approved by the Measure R Committee on September 27, 2023 for this project.

BACKGROUND:

The primary factors behind the failed sections of the CMU block wall stem from a lack of reinforcement materials, rebar and core fill grout. The scope of work includes the reuse of the existing CMU block to repair the westerly section of the block wall. The westerly section would also receive a new foundation to ensure the structure is built to the required standards. The northern block wall and foundation will be removed and replaced with a 6' high chain link fence with a privacy screen. The chain link fencing will allow for a cost savings in addition to allowing for potential modifications to the fencing for future developments in the area. The plans for this project have been completed by RKA Consultants and are a supplemental attachment to this report.

On September 10, 2023, the Notice of Inviting Bids was released for the Sundance Wall Boundary Wall Restoration Project with a bid opening date of October 5, 2023. Six bids were received and evaluated. The bids ranged from $92,502 to $146,620 with one bidder being declared unresponsive by not including the required bid documents in their bid package.

On September 27, 2023, before the sealed bids were opened for the project, a request was made to the Measure R Committee for the addition of the Sundance Park Wall Rehabilitation Project to the FY 2023-24 Measure R Capital Improvement Program Budget. The Measure R Committee recommend that the City Council provide Measure R Funding in the amount of $120,000 for the project.

Act 1 Construction, Inc. of Norco, California has provided similar services for the City of Norco by completing The Barn, Veterans Memorial, and most recently the Kathy Azevedo Monument. Staff has verified that Act 1 Construction has a valid Class A license to perform the work described in the Notice of Inviting Bids for the project.

FISCAL IMPACT:

The cost of this project, including contingencies, is $120,000.

Based on the FY 2023-24 Measure R approved budget, the estimated fund balance is $4.3 million. Therefore, Measure R funds are available to support the request for the new project.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction No. 5 Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Contract Agreement Sundance Park Boundary Wall Restoration Project Sundace Wall Restoration Bid Breakdown
Sundance Park Boundary Wall Restoration Plans

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CONTRACT AGREEMENT

CITY OF NORCO

SUNDANCE PARK BOUNDARY WALL RESTORATION

1. Parties and Date.

This Agreement is made and entered into this 1st day of November 2023 by and between the City of Norco, a municipal corporation of the State of California, located at 2870 Clark Avenue, Norco, California 92860, County of Riverside, State of California, (hereinafter referred to as “City”) and Act 1 Construction, a corporation with its principal place of business at (hereinafter referred to as “Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

2. Recitals.

2.1 Contractor.

The contractor desires to perform and assume responsibility for the provisions of the “SUNDANCE PARK BOUNDARY WALL RESTORATION” on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in constructing street improvements for public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of the City.

2.2 Project.

The City desires to engage the Contractor to render such services for the “SUNDANCE PARK BOUNDARY WALL RESTORATION” (“Project”) as set forth in this Agreement.

3. Terms.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. The contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to construct the improvements outlined by the “SUNDANCE PARK BOUNDARY WALL RESTORATION". The Project is more particularly described in Exhibit A attached hereto and incorporated herein by reference. The Project shall be subject to, and performed in accordance with this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The terms of this Agreement shall begin at the Notice to Proceed and shall extend 20 working days. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.

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3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor. The Project shall be constructed by Contractor or under its supervision. Contractor will determine the means, methods, and details of constructing the Project subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Any additional personnel constructing the Project under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor’s exclusive direction and control. The contractor shall pay all wages, salaries, and other amounts due such personnel in connection with the construction of the Project under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Schedule of Services. Contractor shall construct the Project expeditiously, within the term of this Agreement, and in accordance with the Project timeframe set forth herein. The contractor represents that it has the professional and technical personnel required to construct the Project in conformance with such conditions. In order to facilitate Contractor’s conformance with the Project timeframe, City shall respond to Contractor’s Requests for Information in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Project timeframe.

3.2.3 Conformance to Applicable Requirements. All work prepared by the Contractor shall be subject to the approval of City.

3.2.4 City’s Representative. The City hereby designates the Director of Facilities and Maintenance, or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.5 Contractor’s Representative. Contractor hereby designates Don Trenholm, President, or his designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). The contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s Representative shall supervise and direct the Project, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Project under this Agreement.

3.2.6 Coordination of Project. Contractor agrees to work closely with City staff in the construction of the Project and shall be available to City’s staff, consultants, and other staff at all reasonable times.

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3.2.7 Standard of Care; Performance of Employees. Contractor shall construct the Project under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. The contractor represents and maintains that it is skilled in the professional calling necessary to construct the Project. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to construct the Project. Finally, Contractor represents that it, its employees, and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to construct the Project, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. Any employee of the Contractor or its subcontractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to construct the Project in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any work on the Project.

3.2.7.1 Period of Performance and Liquidated Damages. Contractor shall perform and complete the Project under this Agreement within the term set forth in Section

3.1.2 above (“Term”). Contractor shall construct the Project in strict accordance with any timeframe provided herein, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Project is not completed within the Term and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum of $500.00 per working day:

3.2.8 Laws and Regulations. Contractor shall keep itself fully informed of and in compliance with all local, state, and federal laws, rules and regulations in any manner affecting the performance of the Project, including all Cal/OSHA requirements, and shall give all notices required by law. The contractor shall be liable for all violations of such laws and regulations in connection with the Project. If the Contractor performs any work knowing it to be contrary to such laws, rules, and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom.

Contractor shall defend, indemnify, and hold City, its officials, directors, officers, employees, and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

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3.2.9 Insurance.

3.2.9.1 Time for Compliance. Contractor shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section.

3.2.9.2 Minimum Requirements. Throughout the life of this Contract, Contractor shall pay for and maintain in full force and effect all policies of insurance required hereunder with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated not less than “A- VII” in Best’s Insurance Rating Guide, or (ii) as may be authorized in writing by City Manager or his/her designee at any time and in his/her sole discretion. The following policies of insurance are required:
(i) COMMERCIAL GENERAL LIABILITY insurance which shall be at least as broad as the most current version of Insurance Services Office (ISO) Commercial General Liability Coverage Form CG 00 01 and include insurance for “bodily injury,” “property damage” and “personal and advertising injury” with coverage for premises and operations (including the use of owned and non-owned equipment), products and completed operations, and contractual liability (including, without limitation, indemnity obligations under the Contract) with limits of liability of not less than the following:
$2,000,000 per occurrence for bodily injury and property damage $1,000,000 per occurrence for personal and advertising injury $2,000,000 aggregate for products and completed operations $4,000,000 general aggregate
(ii) COMMERCIAL AUTOMOBILE LIABILITY insurance which shall be at least as broad as the most current version of Insurance Service Office (ISO) Business Auto Coverage Form CA 00 01, and include coverage for all owned, hired, and non-owned automobiles or other licensed vehicles (Code 1 Any Auto) with limits of liability of not less than $1,000,000 per accident for bodily injury and property damage. (iii) WORKERS’ COMPENSATION insurance as required under the California Labor Code.
(iv) EMPLOYERS’ LIABILITY insurance with limits of liability of not less than $1,000,000 each accident, $1,000,000 disease policy limit and $1,000,000 disease each employee.
(v) BUILDERS RISK (Course of Construction) insurance in an amount equal to the completed value of the project with no coinsurance penalty provisions. (Only required if

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the project includes new construction of a building; or renovation of, or addition to, an existing building.)
(vi) CONTRACTORS POLLUTION LIABILITY (Unless waived in writing by the City Manager or his/her designee in his/her sole discretion, Contractors Pollution Liability is required for all environmental and water remediation work and for all work transporting fuel. Unless waived in writing by the City Manager or his/her designee in his/her sole discretion, Contractors Pollution Liability is also required for demolition, renovation, HVAC, plumbing or electrical (including, without limitation, lighting) work on any structure built prior to the year 1990.) insurance with limits of liability of not less than the following:
$1,000,000 per occurrence or claim
$2,000,000 general aggregate per annual policy period
In the event Contractor purchases an Umbrella or Excess insurance policy(ies) to meet the minimum limits of insurance set forth above, this insurance policy(ies) shall “follow form” and afford no less coverage than the primary insurance policy(ies).

Should this Contract involve any lead based, mold or asbestos environmental hazard, either the Automobile Liability insurance policy or the Contractors Pollution Liability insurance policy shall be endorsed to include Transportation Pollution Liability insurance covering materials to be transported by Contractor pursuant to the Contract.

In the event this Contract involves any lead-based environmental hazard (e.g., lead based paint), the Contractors Pollution Liability insurance policy shall be endorsed to include coverage for lead based environmental hazards. In the event this Contract involves any asbestos environmental hazard (e.g., asbestos remediation), the Contractors Pollution Liability insurance policy shall be endorsed to include coverage for asbestos environmental hazards. In the event this Contract involves any mold environmental hazard (e.g., mold remediation), the Contractors Pollution Liability insurance policy shall be endorsed to include coverage for mold environmental hazards and “microbial matter including mold” within the definition of “Pollution” under the policy.

Contractor shall be responsible for payment of any deductibles contained in any insurance policies required hereunder and Contractor shall also be responsible for payment of any self-insured retentions. Any deductibles or self-insured retentions must be declared to, and approved by, the City Manager or his/her designee in his/her sole discretion. At the option of the City Manager or his/her designee, either (i) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its officers, officials, employees, and agents; or (ii) Contractor shall provide a financial guarantee, satisfactory to the City Manager or his/her designee in his/her sole discretion, guaranteeing payment of losses and related investigations, claim administration and defense expenses. At no time shall the City be responsible for the payment of any deductibles or self-insured retentions.

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All policies of insurance required hereunder shall be endorsed to provide that the coverage shall not be cancelled, non-renewed, reduced in coverage or in limits except after 30 calendar day written notice has been given to City. Upon issuance by the insurer, broker, or agent of a notice of cancellation, non-renewal, or reduction in coverage or in limits, the Contractor shall furnish City with a new certificate and applicable endorsements for such policy(ies). In the event any policy is due to expire during the work to be performed for City, Contractor shall provide a new certificate, and applicable endorsements, evidencing renewal of such policy not less than 15 calendar days prior to the expiration date of the expiring policy.

The General Liability and Automobile Liability insurance policies shall be written on an occurrence form. The Contractors Pollution Liability insurance policy shall be written on either an occurrence form, or a claims-made form. The General Liability (including ongoing operations and completed operations), Automobile Liability and Contractors Pollution Liability insurance policies shall name City, its officers, officials, employees and agents as an additional insured. All such policies of insurance shall be endorsed so Contractor’s insurance shall be primary and no contribution shall be required of City, its officers, officials, employees and agents. The Builders Risk (Course of Construction) insurance policy shall be endorsed to name the City as a loss payee. Any Workers’ Compensation insurance policy shall contain a waiver of subrogation as to City, its officers, officials, employees and agents. The coverage(s) shall contain no special limitations on the scope of protection afforded to City, its officers, officials, employees and agents. If Contractor maintains higher limits of liability than the minimums shown above, City requires and shall be entitled to coverage for the higher limits of liability maintained by Contractor.

Claims-Made Policies – If any coverage required is written on a claims-made coverage form:
(i) The retroactive date must be shown and must be before the effective date of the Contract or the commencement of work by Contractor.
(ii) Insurance must be maintained, and evidence of insurance must be provided for at least 5 years after completion of the work or termination of the Contract, whichever first occurs.
(iii) If coverage is canceled or non-renewed, and not replaced with another claimsmade policy form with a retroactive date prior to the effective date of the Contract, or work commencement date, Contractor must purchase extended reporting period coverage for a minimum of 5 years after completion of the work or termination of the Contract, whichever first occurs.
(iv) A copy of the claims reporting requirements must be submitted to City for review. (v) These requirements shall survive expiration or termination of the Contract.

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The contractor shall furnish City with all certificates and applicable endorsements effecting coverage required hereunder. All certificates and applicable endorsements are to be received and approved by the City’s Risk Manager or his/her designee in his/her sole discretion prior to City’s execution of the Contract and before work commences. Upon request of City, Contractor shall immediately furnish City with a complete copy of any insurance policy required under this Contract, including all endorsements, with said copy certified by the underwriter to be a true and correct copy of the original policy. This requirement shall survive expiration or termination of this Contract.

If at any time during the life of the Contract or any extension, Contractor or any of its subcontractors fail to maintain any required insurance in full force and effect, all work under this Contract shall be discontinued immediately, and all payments due or that become due to Contractor shall be withheld until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City. Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Contract. No action taken by City hereunder shall in any way relieve the Contractor of its responsibilities under this Contract.

The fact that insurance is obtained by the Contractor shall not be deemed to release or diminish the liability of the Contractor, including, without limitation, liability under the indemnity provisions of this Contract. The duty to indemnify City shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Contractor.

Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Contractor, its principals, officers, agents, employees, persons under the supervision of Contractor, vendors, suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone employed directly or indirectly by any of them.

In the event of a partial or total destruction by the perils insured against of any or all of the work and/or materials herein provided for at any time prior to the final completion of the Contract and the final acceptance by the City of the work or materials to be performed or supplied thereunder, the Contractor shall promptly reconstruct, repair, replace, or restore all work or materials so destroyed or injured at his/her sole cost and expense. Nothing herein provided for shall in any way excuse the Contractor or his/her insurance company from the obligation of furnishing all the required materials and completing the work in full compliance with the terms of the Contract.

If Contractor should subcontract all or any portion of the services to be performed under this Contract, Contractor shall require each subcontractor to provide insurance protection in favor of City, its officers, officials, employees and agents in accordance with the terms of each of the preceding paragraphs, except that the subcontractors’ certificates and endorsements shall be on file with Contractor and City prior to the commencement of any work by the subcontractor.

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3.2.10 Safety. The Contractor shall execute and maintain its work to avoid injury or damage to any person or property. In constructing the Project, the Contractor shall always be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.11 Bonds.

3.2.11.1 Performance Bond. The contractor shall execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-toexceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.

3.2.11.2 Payment Bond. The contractor shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-toexceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such a bond is required, no payment will be made to the Contractor until it has been received and approved by City.

3.2.11.3 Bond Provisions. Should, in the City’s sole opinion, any bond become insufficient, or any surety be found to be unsatisfactory, the Contractor shall renew or replace the affected bond within 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause.

3.2.11.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in the Code of Civil Procedure Section 995.120, shall be accepted.

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The surety must be a California admitted surety with a current A.M. Best’s rating no less than A:VIII and satisfactory to the City. If a California admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all construction services rendered under this Agreement at the rates set forth in Exhibit B attached hereto and incorporated herein by reference.

Extra work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation. Contractor shall submit to City a monthly itemized statement which indicates work completed by Contractor. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon.

3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City.

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative.

3.3.5 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 1600, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement.

Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at the Contractor's principal place of business and at the project site. The contractor shall defend, indemnify, and hold the City, its elected officials, officers, employees, and agents free and harmless from any claim or

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liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement.

All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds for Termination. City may, by written notice to Contractor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Contractor shall be compensated only for those services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation. Contractor may not terminate this Agreement except for cause.

3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished Documents and Data and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. The contractor shall be required to provide such documents and other information within fifteen (15) days of the request.

3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the follow address, or at such other address as the respective parties may provide in writing for this purpose:

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Contractor: Act 1 Construction
444 Sixth Street
Norco, CA 92860
Attention: Don Trenholm
City: City of Norco
2870 Clark Avenue
Norco, CA 92860
Attention: Director of Facilities and Maintenance
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the US Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.

3.5.4 Attorney’s Fees. If either party commences an action against the other party, either legal, administrative, or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action.

3.5.5 Indemnification. To the furthest extent allowed by law, including California Civil Code section 2782, Contractor shall indemnify, hold harmless and defend City and its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Contractor or any other person, and from any and all claims, demands and actions in law or equity (including attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of performance of this Agreement.

Contractor’s obligations under the preceding sentence shall apply regardless of whether City or any of its officers, officials, employees, agents or volunteers are passively negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused by the active or sole negligence, or the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers.

12 November 1, 2023 - Sundance Park Boundary Wall Restora�on Contract Agreement
If Contractor should subcontract all or any portion of the work to be performed under this Agreement, Contractor shall require each subcontractor to indemnify, hold harmless and defend City and its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph.

This section shall survive termination or expiration of this Agreement.

3.5.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County.

3.5.8 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.9 City’s Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project.

3.5.10 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

3.5.11 Assignment or Transfer. Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation, or transfer.

3.5.12 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be work days (Monday through Friday, excluding holidays). All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Agreement.

3.5.13 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit,

13 November 1, 2023 - Sundance Park Boundary Wall Restora�on Contract Agreement
privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.

3.5.15 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties.

3.5.16 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.17 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor further agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.18 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer, and it shall not discriminate against any subcontractor, employee, or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, or termination. Contractor shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.5.19 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake selfinsurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services.

3.5.20 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement.

Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

14 November 1, 2023 - Sundance Park Boundary Wall Restora�on Contract Agreement

3.5.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.6 Subcontracting.

3.6.1 Prior Approval Required. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

15 November 1, 2023 - Sundance Park Boundary Wall Restora�on Contract Agreement
NAME OF CONTRACTOR: Act 1 Construction, Inc.
*By:
________________________________________________
Signature
________________________________________________
Name and Title
NOTE: SIGNATURES OF CORPORATE OFFICIALS MUST BE NOTARIZED OWNER: CITY OF NORCO, a municipal corporation
*By:
________________________________________________
Robin Grundmeyer - Mayor
ATTEST:
________________________________________________
Dana Roa, CMC, City Clerk
APPROVED AS TO FORM:
________________________________________________
Harper & Burns, LLP

16 November 1, 2023 - Sundance Park Boundary Wall Restora�on Contract Agreement

EXHIBIT A

SUNDANCE PARK BOUNDARY WALL RESTORATION
The work to be done consists of furnishing all materials, equipment, tools, labor, and incidentals as required by the Plans, Specifications, and Contract Documents for the above stated project. The general items of work to be done hereunder consist of dismantling the existing Concrete Masonry Unit (CMU) Block Wall, salvaging unimpaired CMU blocks, reconstruction of CMU Block Wall, Installing Chain Link Fence with Privacy Mesh Screen, and all appurtenant related work to the satisfaction of the City Engineer.

The services shall be performed in accordance with the Standard Specifications for Public Works Construction (Green Book), latest edition, including all current supplements, addenda, and revisions thereof (hereinafter referred to as “Standard Specifications”) incorporated herein by this reference. Any provisions which supplement or modify the Standard Specifications are attached hereto as Special Provisions and incorporated herein by this reference.

17 November 1, 2023 - Sundance Park Boundary Wall Restora�on Contract Agreement

EXHIBIT B

PROPOSAL DOCUMENT

ol Nowo Budnesnlu lo! Project snnuznceRm Boundary Wzll Restoration (rmzuxm Issued on 09/13/2023 Did we on Oclohems, 21:23 11:00 AM (van Exported on 10/15/2023 erouls UnilPvic£‘Quzn '
Soulhmesl Soulhmesl
Er[;Ir|eenr|;uL— ergineenrguL— M: M: Reausue Reausue us Buildersax us Buildersax uniun u xP ce unermal Cormmclion Inc Cormmclion Inc Cons1mr:lion— Cons1mr:lion— Consu|IanE— Consu|IanE— we R Bui|ders— we R Bui|ders— mmconumirg, mmconumirg, nem Mum Measuve ouanmy [uNn£sPoNsIvE) [um1£sPoNsIvE) uniuniue unermal unermal unimice unermal uniurnce unermal lnc.—UnilPvice lnc.—LineYma| Clearing &Grubb|ng, Mobilization at
[maximum of5% onne Total and Amount)
1 une nem Description Here L5 1 5359999 5359999 $4,525.00 $4,525.00 $5,000.00 $5,000.00 $5,200.00 $5,200.00 $6,500.00 $6,500.00 $5,000.00 $5,000.00 Remove and Dispose of Existing Concrete
2 Masonry unns [CML|5) m zone In L5 1 53.29999 53.29999 $2,500.00 $2,500.00 $10,000.00 $10,000.00 $7,000.00 $7,000.00 $5,212.00 $5,212.00 $3,000.00 $3,000.00 Remove the RemaInderofCML|5 m zone I
3 and Store Them for Relnslallallon LS 1 $945999; $945999; $15,000.00 $15,000.00 $15,000.00 $15,000.00 $10,000.00 $10,000.00 $13,500.00 $13,500.00 $13,000.00 $13,000.00 Remove the CMU5 and Demo Concrete
Foollngs m zone Ill and Store CMU5 for
4 Relnslallallon LS 1 $='§n999.4;9 $='§,-999.439 $21,500.00 $21,500.00 $20,000.00 $20,000.00 $10,000.00 $10,000.00 $23,500.00 $23,500.00 $23,000.00 $23,000.00 Reconstruct the Mas/only Wall as per the Details m zone I and zone InIncluding 5 Relllfofcemelll and Grout SF 1320 $5439 $3%;999.4;9 $22.74 $30,016.80 $L§.94 $15,000.80 $49.24 $64,996.80 $37.12 $48,993.40 $51.00 $67,320.00 Furnish and Install 5' HighChem [Ink Fence with Green Fence Privacy Mesh Screen Net 6 per SPPWC Std. Plan 6004 LF 230 $45439 519559.439 $82.00 $L§,a60.00 $130.43 $29,993.90 $39.73 $20,649.40 $145.65 $33,499.50 $110.00 $25,300.00 sumoul swrasese $92,501.91: $104,999.71: $117,545.21: $u7,ao9.9u $1aa,a2u.ou rmal sskasaee $92.5m.au $104,999.71) $mMs.2u $137AIo9.9u $1.ss,4s2u. ou

City Council

STAFF REPORT
Date: November 1, 2023 Agenda Item:

2.E.

To: Honorable Mayor and City Council Members
Prepared By: Lori Sassoon, City Manager
Department: Administration
SUBJECT:

Approval of an additional appropriation to fund the Professional Legal Services Contract with Downey Brand, regarding the Riverside Transmission Reliability Project (RTRP) RECOMMENDATION:

Authorize the Finance Director to move $80,000 from undesignated reserves into the General Fund and appropriate an additional $80,000 for the Downey Brand contract.

SUMMARY:

The City of Norco strongly opposes placement of above-ground powerlines over the Santa Ana River and in adjacent neighborhoods, and strongly supports undergrounding of said powerlines. In April of 2023, the City Council approved a legal services agreement with Downey Brand and appropriated $175,000 for the firm to take action on the City's behalf and prepare a Petition for Modification with the California Public Utilities Commission. That work required more legal resources than originally anticipated. It is recommended that an additional $80,000 be appropriated to fund this work through the end of October 2023, as well as additional work in early November related to subsequent responses to the petition filing.

BACKGROUND:

Southern California Edison obtained approval from the California Public Utilities Commission (CPUC) to install powerlines over and across the Santa Ana River.

Installation of overhead powerlines will permanently and negatively impact the scenic viewshed. The City Council has for years been opposed to the placement of overhead powerlines in this important viewshed and has advocated for undergrounding of the powerlines to protect this important view resource for the citizens of Norco and the greater community.

Attorney Mike Day of Downey Brand is an expert on legal issues relating to powerlines and the CPUC, and has already performed substantial work advocating for the undergrounding of powerlines through neighboring Jurupa Valley. He brings a wealth of

knowledge and experience to assist Norco in its effort to avoid new wildfire dangers and protect the aesthetics of the Santa Ana River viewshed.

In April of 2023, and at the recommendation of the City's RTRP Subcommittee, the City Council approved a legal services agreement with Downey Brand and appropriated $175,000 for the City's efforts to underground the RTRP.

Since that time, the City has worked closely with Michael Day of Downey Brand to prepare the petition for reconsideration of the CPUC's original decision on the RTRP.

The petition process ultimately consumed more legal resources than initially estimated, for a variety of reasons related to securing expert witnesses, preparing additional visual documentation that was not originally planned, and analyzing the original Environmental Impact Report (EIR) and Single Environmental Impact Report (SEIR) in light of changes in state environmental law. In total, this additional work has resulted in an additional $50,000 in costs incurred above the original estimate.

Furthermore, it is anticipated that another party is likely to file a response to our Petition; responses from other parties are due by November 1. If that is filed, we will need the assistance of Downey Brand to request that the Administrative Law Judge allow Norco to respond; and if that is granted, we will want Downey Brand to review the response of the other parties, and draft Norco's response letter within the permitted 10 day window.

Downey Brand has estimated 57 hours for this work, at a cost of approximately $30,000. If no response is filed to the City's Petition, this expense will not be incurred, but given the narrow 10 day window to respond if permitted, it is recommended that funds for this purpose be appropriated so they are available if necessary.

For the two purposes noted above, it is recommended that the Council approve an additional appropriation of $80,000 for the Downey Brand contract, for a total of $255,000.

In the coming months, if the CPUC determines to hear the City's Petition, additional legal services will be needed at that time to prepare for that hearing. If or when that occurs, this matter will be brought back to the City Council for further appropriations for legal services.

FISCAL IMPACT:

This action requires the appropriation of an additional $80,000 from the General Fund for the Downey Brand legal services agreement.

RELATIONSHIP TO STRATEGIC PLAN:

This item is in accordance with Strategic Direction # 5 - Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager

Approved as to Form: Harper and Burns, LLC, City Attorney

City Council

STAFF REPORT
Date: November 1, 2023 Agenda Item:

2.F.

To: Honorable Mayor and City Council Members
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:

Acceptance of the The Barn IT Infrastructure Project as Complete (Project No. 54111.6) RECOMMENDATION:

Accept The Barn IT Infrastructure Project as complete and authorize the City Clerk to file a Notice of Completion with the County of Riverside.

SUMMARY:

The Barn IT Infrastructure Project was approved as a Capital Improvement Project (CIP) in the Measure R Fund for Fiscal Year 2022-23. The project was based on the need for state of the art technology at the new Barn to provide a marketable space for a variety of users. The new sound system provides clear sound during events and connects with the sound system at The Arenas to allow for a public address system in the event of an emergency.

BACKGROUND:

The Barn IT Infrastructure Project included the installation of a new sound system for the exterior and interior of The Barn. The project also included the installation of a Wi-Fi system for the facility with the installation of a fiber optic line to the new facility from The Hall. Along with the larger components of the project, a control touch panel for the sound system was installed in the office. One additional control center was also installed at the center stage area for easy access during banquets or larger events. The project also include wireless microphones, body packs, and necessary components to operate the sound system.

On June 21, 2023, the City Council awarded a contract to Sunset Electrical Contractors, Inc. for The Barn IT Infrastructure Project in the amount of $167,076 with City Manager approval for change orders up to 10% of the original contract amount. One contract change order was approved for additional fiber optic cabling and hardware in the

amount of $3,371 (Attachment A). Sunset Electrical Contractors, Inc. completed their scope of work for the project at a total cost of $170,447.

Sunset Electrical Contractors coordinated with the prime and all subcontractors on the The Barn Project for the successful installation of the Bose Sound System and Aruba WiFi system within the timeframe specified in the contract documents. The work has been inspected by the Facilities and Maintenance Director and the IT Manager and is found to be in full conformance with the plans and specifications on the contract documents.

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

Strategic Directive No. 5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Attachment A_Executed CO
Notice of Completion_Barn Infrastructure Project

President
8/15/2023

RECORDING REQUESTED BY: THIS DOCUMENT IS FILED AT THE

REQUESTCITY OF NORCO OF THE CITY OF NORCO PURSUANT TO
WHEN RECORDED MAIL TO: SECTION 6103 OF THE GOVERNMENT
2870 CLARK AVENUE CODE. NO FEE IS CHARGED THEREFORE.

NORCO, CA 92860
ATTN: CITY CLERK

NOTICE OF COMPLETION

NOTICE IS HEREBY GIVEN BY THE CITY OF NORCO, A MUNICIPAL CORPORATION, STATE OF CALIFORNIA THAT

THE WORK DESCRIBED AS THE BARN IT INFRASTRUCTURE PROJECT IN THE CITY OF NORCO IN ACCORDANCE

WITH THE TERMS AND WRITTEN CONTRACT DATED BETWEEN THE CITY OF NORCO AND SUNSET ELECTRICAL CONTRACTORS INC. WAS COMPLETED AND ACCEPTED BY THE CITY OF NORCO ON THE 1ST DAY OF NOVEMBER 2023.

THE WORK DONE: CONSISTED OF THE INSTALLATION OF A NEW SOUND SYSTEM FOR THE EXTERIOR AND

INTERIOR OF THE BARN AND THE INSTALLATION OF A WI-FI SYSTEM FOR THE FACILITY WITH THE INSTALLATION OF A FIBER OPTIC LINE TO THE NEW FACILITY FROM THE HALL. ALONG WITH THE LARGER

COMPONENTS OF THE PROJECT, A CONTROL TOUCH PANEL FOR THE SOUND SYSTEM WAS INSTALLED IN THE OFFICE. ONE ADDITIONAL CONTROL CENTER WAS ALSO INSTALLED AT THE CENTER STAGE AREA FOR EASY ACCESS DURING BANQUETS OR LARGER EVENTS. THE PROJECT ALSO INCLUDE WIRELESS MICROPHONES,

BODY PACKS, AND NECESSARY COMPONENTS TO OPERATE THE SOUND SYSTEM AT THE BARN, IN THE CITY OF NORCO, CALIFORNIA.

THAT THE CITY OF NORCO, A PUBLIC BODY, CORPORATE AND POLITIC, WHOSE ADDRESS IS 2870 CLARK AVENUE, NORCO, CALIFORNIA, 92860 IS THE OWNER OF SAID IMPROVEMENT WORK; AND THAT SAID WORK WAS PERFORMED BEGINNING JUNE 21, 2023, IN THE CITY OF NORCO, CALIFORNIA. THE NATURE OF INTEREST IS VENDEE UNDER CONTRACT.

THAT SAID WORK OF IMPROVEMENT WAS SO PERFORMED BY SUNSET ELECTRICAL CONTRACTORS INC. OF UPLAND, CALIFORNIA, IN ACCORDANCE WITH SAID WRITTEN AGREEMENT DATED JUNE 21, 2023, AND THE SPECIFICATIONS, WHICH WERE A PART OF SAID CONTRACT.

THIS NOTICE OF COMPLETION IS GIVEN BY THE CITY OF NORCO PURSUANT TO THE APPROPRIATE PROVISIONS OF TITLE XV, PART IV, DIVISION 1 OF THE CIVIL CODE OF THE STATE OF CALIFORNIA, AND UPON ORDER OF THE CITY OF NORCO.

November 1, 2023
DATED: CITY OF NORCO

A MUNICIPAL CORPORATION
BY: __________________________

DANA ROA, CMC

CITY CLERK
VERIFICATION FOR NON-INDIVIDUAL OWNER:

I, THE UNDERSIGNED, DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT I AM THE DEPUTY CITY CLERK OF THE CITY OF NORCO; THAT I HAVE SIGNED THE SAID

NOTICE, THAT I KNOW AND UNDERSTAND THE CONTENTS THEREOF, AND THAT THE FACTS STATED THEREIN ARE TRUE AND CORRECT.

NOVEMBER 1, 2023 ______________________________

DATE DANA ROA, CMC

CITY CLERKCITY OF NORCO

City Council

STAFF REPORT
Date: November 1, 2023 Agenda Item:

2.G.

To: Honorable Mayor and City Council Members
Prepared By: Colin Burns, City Attorney
Department: Administration
SUBJECT:

Approval of a Resolution Ending the Proclamation of Local Emergency Due to Tropical Cyclone Hilary
RECOMMENDATION:

Approve Resolution No. 2023-66 Ending the Proclamation of Local Emergency Due to Tropical Cyclone Hilary.

SUMMARY:

Excessive wind and rain from Tropical Cyclone Hillary resulted in widespread damage to public roadways, horse trails, and facilities. The damage has been assessed and has, or is, being remediated. Requests for reimbursement have been submitted through the Emergency Management Department (EMD). There is no longer a need to continue the Local Emergency and Staff requests the City Council adopt a Resolution ending the Local Emergency.

BACKGROUND:

On August 20, 2023, excessive wind and rain from Tropical Cyclone Hillary resulted in widespread damage to public roadways, horse trails, and facilities. On August 22, 2023, pursuant to Section 2.28.110 of the City of Norco Municipal Code, the City Manager acting as Director of Emergency Services declared a Local Emergency.

Per Norco Municipal Code Section 2.28.110 (4), the City Manager authorized the immediate expenditure of funds to obtain vital supplies, equipment, and other resources needed for the preservation of life and property.

On August 24, 2023, the City Council ratified the Declaration of Local Emergency. On August 25, 2023, Staff submitted an Initial Damage Estimate to the Emergency Management Department (EMD), Western Riverside County. On August 30, 2023, Staff submitted the locations listed below table to Riverside County for their initial damage inspection.

Location Name Address Description of Damage Point-OfContact Nellie Weaver Hall 90 Sixth Street,
Norco
Damage to roof and
insulation. Insulation
falling down and severe
roof leaks
Amanda
Hamilton (951)
270-5633
Norco LMD
Districts Maps Provided
Wash out of trail
system. Contract crews
working to install DG
and recompact trails
along with debris
cleanup.

Amanda
Hamilton (951)
270-5633
Fire Station 47 3902 Hillside
Avenue, Norco
Damage to roof with
multiple areas of leaks.

Amanda
Hamilton (951)
270-5633
Shadow Canyon 2677 Shadow
Canyon, Norco
Damage to recently
constructed rip rap to
control slope erosion.

Amanda
Hamilton (951)
270-5633
Sixth St. Roadway
Collapse
Directly adjacent
to storm channel
and Rite Aid
Driveway
AC trench collapsed
near trenching
Chad Blais
(951) 270-5678
Temescal Ave
Roadway
Collapse
Near Temescal
and Raquel
AC roadway collapsed
near open trench
Chad Blais
(951) 270-5678
Fourth St
Roadway
Collapse
1523 Fourth St AC roadway collapsed
near trenching
Chad Blais
(951) 270-5678
Staff has not received further information or requests from EMD about additional reporting. EMD notified that continuance of the Local Emergency is not required to receive reimbursement. The emergency conditions have abated, and Staff recommends the City Council declare an end to the Local Emergency.

ALTERNATIVES:

Alternative No.1: Adopt Resolution 2023-66 Declaring an End to the Local Emergency Created by Tropical Cyclone Hilary.

Alternative No. 2: Do not adopt the Resolution.

FISCAL IMPACT:

There is no fiscal impact to ending the Local Emergency.

RELATIONSHIP TO STRATEGIC PLAN:

Not Applicable.

REVIEWED AND APPROVED BY:

ATTACHMENT(S):

Resolution 2023-66 Hilary End of Local Emergency

RESOLUTION NO. 2023 - 66

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NORCO TERMINATING THE DECLARATION OF LOCAL

EMERGENCY THAT WAS CAUSED BY TROPICAL

CYCLONE HILARY
WHEREAS, California Government Code Section 8630 and Norco Municipal Code Section 2.28.110 empowers the Director of Emergency Services to proclaim the existence or threatened existence of a local emergency when the City of Norco is affected or likely to be affected by a public calamity when the City Council is not in session; and WHEREAS, on August 22, 2023, the Director of Emergency Services of the City of Norco found that conditions of extreme peril to the safety of persons and property arose within the City caused by Tropical Cyclone Hilary; and
WHEREAS, on August 24, 2023, the City Council of the City of Norco ratified the Declaration of Local Emergency; and
WHEREAS, the conditions constituting the Local Emergency have abated and City Staff has, or is, repairing damage caused by Tropical Cyclone Hilary; and WHEREAS, pursuant to Government Code section 8630(d), the City Council should proclaim the termination of the local emergency at the earliest possible date that conditions warrant; and
WHEREAS, the City Council finds that conditions warrant termination of the proclamation of local emergency.

NOW, THEREFORE, the City Council of the City of Norco hereby RESOLVES:

Section 1. Pursuant to California Government Code Section 8630, the City Council hereby terminates the proclamation of local emergency declared on August 22, 2023 and ratified on August 24, 2023.

Section 2. The Norco City Clerk shall certify the passage of this Resolution. This Resolution shall take effect immediately upon its adoption by the City Council.

Section 3. The City Clerk shall forward a copy of this Resolution to the Riverside County Operational Area.

PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held on November 1, 2023.
_______________________
Robin Grundmeyer, Mayor
City of Norco, California
ATTEST:
________________________
Dana Roa, CMC, City Clerk
City of Norco, California
I, Dana Roa, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on November 1, 2023, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Norco, California, on November 1, 2023.
________________________
Dana Roa, CMC, City Clerk
City of Norco, California

City Council

STAFF REPORT
Date: November 1, 2023 Agenda Item:

2.H.

To: Honorable Mayor and City Council Members
Prepared By: Lisette Free, Finance Director
Department: Finance
SUBJECT:

Fiscal Year 2022-23 Year-End Budget to Actual Report
RECOMMENDATION:

Receive and file Fiscal Year 2022-23 Year-End Budget to Actual Report SUMMARY:

During Fiscal Year (FY) 2022-23, all key Operating Funds of the City, including General Fund, Water Fund and Sewer Fund showed positive financial performance with total actual revenues for each Fund exceeding total actual expenditures/expenses.

For the General Fund (Attachment #1), total actual revenues of $29,487,188 were more than total amended budget amount of $28,493,833 by $993,354. The favorable revenue performance was largely due to community development revenues, other revenues and sales taxes. Total actual expenditures of $24,770,510 were lower than total amended budget of $27,883,654 by $3,113,144. Combining better than anticipated revenue performance and expenditure savings resulted in a net increase of $4,716,679 to fund balance (Attachment #2). In addition, City Council approved the Reserve Policy on June 21, 2023 resulting in the transfer of $4,756,218 from the Special Asset Fund to the General Fund to be designated for economic development reserves. The estimated fund balance as of the end of Fiscal Year 2022-23 is $33,471,532. This fund balance does not include the spendable balance in the $14 million available in Measure R Transactions and Use Tax Fund as of June 30, 2023.

Regarding the Water Fund, total actual revenues of $12,674,236 exceeded total actual expenses of $11,705,723 by $968,513 (Attachment #4). The Sewer Fund’s financial performance during the year was also positive as total revenues of $7,434,406 exceeded total expenses of $6,639,595 by $794,812 (Attachment #5). A summary schedule of all other Operating Funds is included as Attachment #6. A schedule of revenues, expenditures and fund balance for the Landscape Maintenance Districts has also been presented as additional information (Attachment #7).

BACKGROUND:

The City’s independent auditors, CliftonLarsonAllen, LLP are in the process of completing the City audit for the Fiscal Year ended June 30, 2023. The Annual Comprehensive Financial Report (ACFR) prepared in accordance with Generally Accepted Accounting Principles (GAAP) will be submitted to the Council at a later date.

A presentation will be scheduled with the independent auditors to further review and discuss the ACFR with the City Council. At this time, staff is presenting this important report as information to show how the various Operating Funds performed relative to the approved budget for Fiscal Year 2022-23.

FY 2022-23 General Fund Performance Summary
When the FY 2022-23 Budget was adopted on June 15, 2022, a projected surplus of $2,476,514 was anticipated for the General Fund for the new fiscal year that began on July 1, 2022 mainly due to the funding from the American Rescue Plan Act (ARPA) Fund.

On February 15, 2023, staff presented Mid-Year Budget Amendments to City Council, which amended the projected surplus to $2,155,536 because of the $1,803,151 decrease in projected revenues and $1,588,299 decrease in projected expenditures.

With additional budget amendments that were subsequently approved, the amended budget for the fiscal year estimated a surplus of $610,179. At the end of the fiscal year, total actual revenues exceeded total actual expenditures by $4,716,679 resulting in increase to the fund balance.

American Rescue Plan Act (ARPA)
The American Rescue Plan Act Fund was adopted by the City Council on October 20, 2021. ARPA provides Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) to all cities in the United States. The purpose of the funding is to help cities respond and recover from world-wide Coronavirus Pandemic (COVID-19) health and economic impacts. City Council approved FY 2021-22 appropriation in the amount of $3.2 million and FY 2022-23 appropriation in the amount of $3.3 from the City's total allocation of $6.4 million. In addition, the City Council approved additional appropriations from ARPA funds under the lost revenue replacement provisions that included COVID-19 related salaries, unemployment, special departmental expenses, public safety contractual services, utility subsidy program, small business grant programs, equipment, and homeless programs and services that provided emergency clean up and environmental observation of work to be performed at the Santa Ana River homeless encampments.

Overall, ARPA funding was fully expensed by the end of the fiscal year (Attachment No. 3). It is important to note because the City's allocation of ARPA funds is less than $10 million, Department of Treasury Regulations allows the City to use all of its allocation as lost revenue replacement. This allows the City Council to appropriate ARPA funds for any legal government purpose except those that are prohibited. The City treated all of its allocation as lost revenue replacement.

Explanation of FY 2022-23 General Fund Revenue Budget to Actual Variances

Attachment #1 is a schedule showing General Fund budget to actual data for the Fiscal Year ended June 30, 2023. For the Fiscal Year, total actual revenues were higher than the final amended budget by $993,354. The following is a recap of the major revenue categories that make up the General Fund and explanation of the variances.  Sales Tax: Revenue receipts totaled $11,229,237 or $110,596 higher than the amended budget amount. The amended budget amount was based on information available during the FY 2022-23 budget process as provided by our sales tax consultant, HDL. The City sales tax receipt during the fiscal year was boosted by strong performance in most major industry groups including, autos and transportation; state and county pools; restaurants and hotels; fuel and service stations; general consumer goods; building and construction; food and drugs; and business and industry. The largest group is autos and transportation which represents about 36% of total sales tax revenue. Revenues grew by 1.1% over Fiscal Year 2021-22 aided by the building and construction category which saw higher increases. For the year, total sales tax revenues represent 38% of total General Fund revenues.

The chart below provides a ten-year trend of the City’s sales tax receipts by fiscal year. The dip in FY 2019-2020 was largely due to the onset of COVID-19 economic impact along with sales deferrals and other programs instituted by California Department of Tax and Fee Administration (CDTFA) to assist businesses.
 Property Tax: Revenue receipts totaled $2,766,808 or $56,119 more than the amended budget amount. The favorable performance is largely due to the increase in the residual tax increment amount received from Successor Agency Redevelopment Property Tax Trust Fund (RPTTF). For the year, total property tax receipts represent 9% of total General Fund revenues.  Other Taxes: Other Taxes include Public Safety Sales Tax, Property Transfer Tax, Business Licenses and Transient Occupancy Tax (TOT). Revenue receipts totaled $3,364,406. This amount is within the total amended budget amount of

$3,362,820. The following chart provides a five-year trend of TOT revenues. With COVID-19 behind us, FY 2022-23 numbers reflect an uptrend that staff believes will continue in subsequent fiscal years. Other Taxes represent 8% of General Fund revenues.
 Franchise Fees: Franchise Fees include revenue from Refuse, Electricity, Gas and Cable TV franchises. Revenue receipts totaled $2,128,390 which is $181,764 lower than the amended budget amount. The variance is mostly attributed to the refuse franchise coming in lower than the budget anticipated; however, these revenues were still about 3% higher than FY 2021-22. Cable TV and gas franchise revenues performed slightly higher than budget. Franchise Fees represent 7% of General Fund revenues.
 Intergovernmental: Revenue receipts totaled $77,577 for the year and includes state-mandated cost reimbursements for public safety related activities, such as administrative license suspension, domestic violence arrests and assistance activities. Revenues are budgeted conservatively due to collecting reimbursement from the State at any time for these items is unknown.  Fines and Penalties: Revenue receipts totaled $357,463 or $120,836 more than the amended budget amount. The variance is attributed to parking citations and code fines which performed better than anticipated. Fines and Penalties represent 1% of total General Fund revenues.
 Interest/Lease Income: Interest/Lease Income includes revenue from the lease cell sites and interest derived from investment of General Fund operating cash balance. During Fiscal Year 2022-23, Silverlakes began making their lease payments in September 2022. The lease payment deferment from July 2021 until September 2021 resumed in September 2023. From all sources, revenue receipts totaled $649,595 or $182,209 lower than the amended budget amount.

The decrease is due to the fair market value of investments as of June 2023 and the result of the lease revenue recognition criteria from GASB-87 requirements.

Interest/Lease Income represents 2% of General Fund revenues.

 Community Development Fees: Community Development Fees include planning, building and engineering fees. Revenue receipts totaled $2,570,460 or $535,821 more than the amended budget amount. The favorable performance was largely due to better receipts from the Building and Safety’s plan check and building permit fees, specifically due to the forfeit of construction and demolition deposits (which are then transferred to a designated account, and held for their specific uses pursuant to state law). Community Development Fees represent 9% of General Fund revenues.
 Community Services/Recreation: Community Services/Recreation fees are related to events and activities associated with recreation programs. The actual year-end revenues were $864,468 or $87,058 more than the amended budget amount. Community Services/Recreation fees represent 3% of General Fund revenues.
 Other Revenues: Other Revenues include emergency medical subscription fees, dog licenses, penalties, refuse billing collection fees, fire inspection fees, business license renewal fees and other miscellaneous City fees. Revenue receipts totaled $1,593,774 or $232,664 higher than the amended budget amount. Emergency medical services, penalties, dog license, miscellaneous, refuse billing and business license renewal all performed better than budgeted.

The increase in these items was partially offset by less revenue received from fire inspection services. Other Revenues represents 5% of General Fund revenues.
 Administrative Overhead/Operation Transfers: Administrative Overhead/ Operation Transfers revenues include administrative overhead reimbursements and transfers from other funds to the General Fund. Revenue receipts totaled $1,660,131 compared to the total amended budget amount of $1,579,524.

Administrative Overhead/Operation Transfers represents 6% of General Fund revenues.

Explanation of FY 2022-23 General Fund Expenditure Budget to Actual Variances Total General Fund expenditures for the fiscal year were below amended budget by $3,113,144. Most of the savings came from sheriff, community services, animal control, non-departmental, administration, finance, city council, city attorney, and community development. It is important to note that the adopted General Fund expenditure budget was reduced by shifting $3,418,629 costs from the General Fund to ARPA. The City Council approved additional appropriations from ARPA funds under the lost revenue replacement provisions.

The expenditure variances are further explained below.
 Sheriff’s Department: Total actual expenditures of $5,632,799 were lower than the amended budget amount of $6,277,576 resulting in savings of $644,777.

These savings were primarily due to estimated contract rate reduction and delays in filling vacancies for dedicated Traffic Deputy and Community Services Officer.

At the time FY 2022-23 budget was approved, the contract rate was estimated to increase by 2.5%. The County's contract rate increased by 1.63% instead of the

previously estimated 2.5%. This reduction in rate and delays in filling vacancies generated a cost reduction from the adopted budget. In addition, $1,446,599 of public safety sheriff costs were shifted from the General Fund to ARPA.

Additionally, the City received $65,271 more than anticipated from the Supplemental Law Enforcement Grant. This additional receipt was applied to reduce General Fund Sheriff expenditures.
 Fire Suppression & EMS (CAL FIRE) Department: Total actual expenditures of $4,108,319 were higher than the amended budget amount of $3,920,104 due to contractual services salary increases. In FY 2022-23, $1,150,000 of public safety fire costs were shifted from the General Fund to ARPA.
 Community Services: Total actual expenditures of $1,777,744 were lower than the budgeted amount of $2,189,711 resulting in savings of $411,967. These savings were primarily due to salaries and benefits allocated to the Senior Transportation Grant program and due to vacancies and contractual costs savings in the youth and teen programs.
 Non-Departmental: Total actual expenditures of $3,416,850 were lower than the amended budget amount of $3,837,063 resulting in savings of $420,213. These savings were primarily due to the pension contributions reclassified as cash with fiscal agent.
 Administration, Economic Development and Finance: Total actual expenditures of $2,533,642 were within the amended budget amount of $2,544,115.  City Council and City Attorney: Total actual expenditures of $341,605 were within the amended budget amount of $349,767.
 Public Works and Engineering Division: Total actual expenditures of $603,774 were within the amended budget amount of $618,756.
 Community Development: Total actual expenditures of $1,746,088 were lower than amended budget amount of $3,452,676 resulting in savings of $1,706,588.

These savings were primarily due to contractual services for the General Plan Update that were carried over to FY 2023-24 Operating Budget for this multi-year project.
 Facilities and Maintenance: Total actual expenditures of $3,631,173 were within the amended budget amount of $3,680,414.

General Fund (Fund Balance)
The City Council has taken significant steps in recent years to restore the City's financial condition and designate funds toward long-range capital needs. On June 21, 2023, City Council approved the Reserve Policy that will serve as the framework to enable the City to meets its financial commitments, address unexpected future events in a fiscally prudent manner and ensure the long-term financial health of the City. The chart below provides a ten-year fund balance trend for the General Fund, which includes all designated reserve funds.

The audited fund balance at the beginning of the fiscal year, was $23,998,636 (Attachment #2). During the fiscal year, fund balance increased to $33,018,376 due to total revenues exceeding total expenditures by $4,716,679 and $4,756,216 from reclassifying the Special Asset Fund to the General Fund due to the Reserve Policy. As of June 30, 2023, the ending fund balance is $33,471,532.

In light of the approved Reserve Policy, the following is committed fund balances:
 $6,970,914 - Operating Reserves (25% of total General Fund budget expenditures)
 $4,756,218 - Economic Development Reserves
 $1,515,494 - Designated for donations and deposits for special projects, events and/or programs.

The spendable balance of the designated funds for economic development reserve can be appropriated for any legal expenditure of the City by the City Council, subject to a super majority approval. As of June 30, 2023, the estimated total fund balance represents 135% of total FY 2022-23 General Fund expenditures. This results in an uncommitted fund balance of $20,228,907. At a future Council meeting, staff will bring back another item with recommended allocations of this fund balance to the various reserves pursuant to the City's Reserve Policy.

Other Fund Balances
Measure R Fund: The Measure R Transactions and Use Tax Fund receipts and interest earnings totaled $8,359,224 or $83,762 more than the amended budget amount. The original approved budget amount for Measure R Transactions and Use Tax was $7,867,462 while the amended budget amount was $8,275,462.

Measure R’s FY 2022-23 fund balance increased due to total revenues exceeding expenditures by $1,417,978. The beginning fund balance on July 1, 2022 was $12,607,574 resulting in an ending fund balance of $14,025,552. The ending fund balance will cover the continuing projects of $9,699,382 and result in $4,326,169 available for future projects. The FY 2022-23 Measure R budget to actual report was presented to Measure R Citizens’ Oversight Committee at their September 27, 2023 meeting (see attachment #8).

Other Operating Funds
Attachment #6 also provides a summary of revenues and expenditures for other Operating Funds. Other Operating Funds included in this report are Water, Sewer, Gas Tax, NPDES, CDBG and Miscellaneous Grants.

Water Fund: Total actual Water Fund revenues of $12.7 million were less than budgeted revenues of $13.6 million by $888,080 primarily due to charges for water services exceeding budget. Total actual Water Fund expenses of $11.7 million were less than budgeted expenses of $13.8 million by $2.1 million primarily because of savings in salaries and benefits savings, professional services, maintenance and rentals, small equipment and self-insurance settlements.

Working capital increased by $968,513 to $5.4 million as of June 30, 2023, because total revenues exceeded total expenses. A water rate resolution approved by City Council requires that a rate stabilization and operating reserve be maintained to ensure adequate operating cash flows and rate stability. The City’s Bond Indenture also requires a rate stabilization reserve. As of June 30, 2023, $3.4 million of the total working capital was required as operating reserve while $1.3 million was required for rate stabilization reserve leaving $1.3 million available for transfer to Water Capital Projects Fund for future projects. For more details regarding Water Fund budget to actual revenues and expenses, refer to Attachment #4.

Sewer Fund: Total actual Sewer Fund revenues of $7.4 million were less than budgeted revenues of $7.9 million by $481,303 primarily due to the charges for sewer services.

Total actual Sewer Fund expenses of $6.6 million were less than budgeted expenses of $7.4 million by $785,821. These savings came from less than anticipated cost for salaries and benefits, professional and contractual services and miscellaneous small equipment. Working capital increased by $794,812. As of June 30, 2023, the Sewer Fund had estimated working capital balance of $6.3 million. Based on the working capital balance of $6.3 million and required operating reserve of $1.9 million, the estimated amount available for transfer to the Sewer Capital Projects Fund is $1.5 million for future sewer capital projects. In addition, for FY 2023-24, the Sewer Fund will provide a $3.2 million loan to the Recycled Water Fund. For more details regarding Sewer Fund budget to actual revenues and expenses, refer to Attachment #5.

Other Funds: Total actual Gas Tax revenues were within the State of California’s projection. Gas Tax Fund revenues are used for street maintenance. Actual expenditures were less than budgeted but exceeded actual revenues for the fiscal year resulting in a fund balance of $93,279 as of June 30, 2023.

National Pollutant Discharge Elimination System (NPDES) total revenues were $120,484 compared to actual expenditures of $150,907. The difference of $30,423

between actual revenues and actual expenditures decreased the fund balance. The Fund Balance for NPDES, as of June 30, 2023, is $16,968.

Capital Project Funds: Capital Project Funds are used to account for financial resources and uses pertaining to the acquisition and construction of governmental infrastructure and other assets, such as streets, storm drains, public buildings, trails, park improvements, water, and sewer infrastructure. Except for the water and sewer capital projects, which are funded with ongoing revenues derived from user rates, the other capital project categories have no dedicated ongoing revenue source and, therefore, will rely on funding from Measure R and infrequent impact fees to fund new projects once the remaining cash balances are depleted. Please note, street projects are partially funded from limited Measure A and SB 1 receipts.

Landscape Maintenance Districts (LMD): As information for the benefits of residents whose property is assessed to pay for the cost of maintaining Landscape Maintenance Districts (LMD), this year-end budget to actual report provides revenue and expenditure information for each District. For all Districts, actual revenues and expenditures for the Fiscal Year were reasonably within the amount in the Engineer’s Estimate. Also included in the schedule is each District’s beginning and ending fund balance. LMD #1 and LMD #2 reflect a negative fund balance. For additional details on the LMD’s, refer to Attachment #7.

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

The FY 2022-23 Year-End Budget to Actual Report is consistent with Strategic Direction #3 - Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Attachment 1
Attachment 2
Attachment 3
Attachment 4
Attachment 5
Attachment 6
Attachment 7
Attachment 8

Attachment 1
City of Norco
General Fund Budget to Actual
For the Fiscal Year Ended June 30, 2023
Actual vs
Adopted Amended Year-End Amended
General Fund Budget Budget Actual Budget

REVENUES
Property Taxes $ 2,370,071 $ 2,710,689 $ 2,766,808 $ 56,119 Sales Taxes 10,925,331 11,118,641 11,229,237 110,596
Motor Vehicle License Fees 3,026,965 3,362,820 3,364,406 1,585 Other Taxes 2,215,176 2,145,115 2,224,880 79,765
Franchise Fees 2,112,013 2,310,154 2,128,390 (181,764)
Intergovernmental 300 25,300 77,577 52,277
Fines and Penalties 239,645 236,627 357,463 120,836
Interest/Lease Income 807,804 831,804 649,595 (182,209) Community Development Fees 4,874,243 2,034,639 2,570,460 535,821 Community Services/Recreation 760,777 777,410 864,468 87,058 Other Revenues 1,375,135 1,361,110 1,593,774 232,664
Administrative Overhead/Operating Transfers 1,580,032 1,579,524 1,660,131 80,607 Total Revenues $ 30,287,492 $ 28,493,833 $ 29,487,188 $ 993,354

EXPENDITURES
Sheriff $ 7,552,955 $ 6,177,969 $ 5,539,581 $ 638,388
Citizens on Patrol 24,037 27,607 25,611 1,996
Crossing Guards 56,000 72,000 67,607 4,393
Total Sheriff Protection 7,632,992 6,277,576 5,632,799 644,777 Fire Suppression & EMS (CalFire) 5,044,412 3,894,412 4,082,165 (187,753) Norco Animal Rescue Team 8,876 25,692 26,153 (461)
Total Fire 5,053,288 3,920,104 4,108,319 (188,215)
Recreation 1,047,524 1,069,505 1,014,968 54,537
Special Events 160,023 160,023 114,166 45,857
Youth, Sports & Family Services 598,186 609,786 407,833 201,953 Senior Citizens 288,078 304,470 193,634 110,836
Senior-RCTC 45,927 45,927 47,142 (1,215)
Total Community Services 2,139,738 2,189,711 1,777,744 411,967 Animal Services 953,852 1,013,472 978,517 34,955
Non-Departmental 3,377,863 3,837,063 3,416,850 420,213
City Clerk 574,217 584,629 576,404 8,225
City Manager 452,670 452,670 536,817 (84,147)
Communications 260,422 325,822 339,437 (13,615)
Human Resources 237,354 247,523 246,904 619
Economic Development 122,669 122,669 55,974 66,695
Finance 802,202 810,802 778,105 32,697
Total Admin, Econ. Dev & Finance 2,449,534 2,544,115 2,533,642 10,473 City Council 99,767 99,767 98,969 798
City Attorney 250,000 250,000 242,637 7,363
Total City Council & City Attorney 349,767 349,767 341,605 8,162 Engineering 443,914 494,094 495,504 (1,410)
Inspection 20,000 20,000 19,932 68
Parkway Maintenance 102,642 104,662 88,338 16,324
Total Public Works & Engineering 566,556 618,756 603,774 14,982 Code Enforcement 382,293 376,005 217,536 158,469
Building & Safety 1,080,878 1,081,928 845,373 236,555
Planning 648,849 1,994,743 683,179 1,311,564
Total Community Development 2,112,020 3,452,676 1,746,088 1,706,588 Park Maintenance 1,338,641 1,487,586 1,414,805 72,781
Facilities Maintenance 1,836,727 2,192,828 2,216,368 (23,540) Total Facilities and Maintenance 3,175,368 3,680,414 3,631,173 49,241 Total Expenditures $ 27,810,978 $ 27,883,654 $ 24,770,510 $ 3,113,144 Revenues Over (Under) Expenditures $ 2,476,514 $ 610,179 $ 4,716,679 $ 4,106,499

Attachment 2
City of Norco
General Fund - Fund Balance
For Fiscal Year-Ended June 30, 2023
Rev/Exp Fund
GENERAL FUND Total Balance
Audited Beginning Balance, July 1, 2022 $ 23,998,636
FY 22-23 Actual Revenues/Transfers In 29,487,188
FY 22-23 Actual Expenditures/Transfers Out (24,770,510) Revenues Over (Under) Expenditures FY 2022-23 4,716,679 Restated Special Asset Fund 4,756,218
Estimated Ending Fund Balance, June 30, 2023 (Unaudited) $ 33,471,532 City of Norco
General Fund - Fund Balance Designations
For Fiscal Year-Ended June 30, 2023
Estimated Ending Fund Balance, June 30, 2023 $ 33,471,532 Designated for Opearting Reserves (6,970,914)
Designated for Donations and Deposits for Special Projects and Programs (1,515,494) Designated for Economic Development Reserve (4,756,218) Estimated Uncommitted Fund Balanced June 30, 2023 $ 20,228,907

Attachment 3
City of Norco
Schedule of American Rescue Plan Act Revenues & Expenditures For the Fiscal Year Ended June 30, 2023
Actual vs
Amended Year-End Amended
American Rescue Plan Act (ARPA) Budget Actual Budget
Revenues:

ARPA Revenues $ 3,380,221 $ 3,380,221 $ -
Interest Income 17,500 38,408 20,908
Total Revenues $ 3,397,721 $ 3,418,629 $ 20,908
Expenditures - Revenue Loss:

Covid-19 Related Salaries $ 37,438 $ 37,438 $ -
Unemployment 4,678 4,678 -
Special Departmental 57,552 57,552 -
CalFire Contractual Services 1,150,000 1,150,000 -
Law Enforcement Contractual Services 1,345,942 1,446,599 (100,657) Utility Subsidy Program 107,111 107,111 -
Homeless Programs and Services 500,000 422,083 77,917
Small Business Grant Program 45,000 45,000 -
Equipment 150,000 148,168 1,832
Total Expenditures $ 3,397,721 $ 3,418,629 $ (20,908)
Revenues Over (Under) Expenditures $ - $ -

Attachment 4
City of Norco
Water Fund Budget to Actual Report
For the Fiscal Year Ended June 30, 2023
Actual vs
Amended Year-End Amended
Water Fund Budget Actual Budget
Operating Revenues:

Charges for Water Services $ 13,531,992 $ 12,347,497 $ (1,184,495) Interest Income 20,000 142,286 122,286
Miscellaneous 10,324 184,453 174,129
Total Revenues $ 13,562,316 $ 12,674,236 $ (888,080)
Expenses:

Salaries and Benefits $ 1,520,109 $ 1,446,968 $ 73,141
Employee Related Expense 30,150 20,962 9,188
Supplies and Services 512,300 390,576 121,724
Maintenance and Rentals 184,300 89,984 94,316
Water Purchases, Operations and Utilities 7,577,200 6,015,774 1,561,427 Professional & Contractual 1,266,689 1,221,359 45,330
Miscellaneous Expenses 1,000 75 925
Debt Service Related Payments 1,401,125 1,401,633 (508) Computer, Vehicle Operations & Replacement Charges 419,119 419,119 - Self-Insurance Settlements 32,000 - 32,000
Miscellaneous/Small Equipment 145,000 - 145,000
Administrative Overhead & Reimbursements to Other Funds 685,462 699,275 (13,813) Total Operating Expenses $ 13,774,454 $ 11,705,723 $ 2,068,731 Revenues Over (Under) Expenses $ (212,138) $ 968,513 $ 1,180,651

Attachment 5
City of Norco
Sewer Fund Budget to Actual Report
For the Fiscal Year Ended June 30, 2023
Actual vs
Amended Year-End Amended
Sewer Fund Budget Actual Budget
Operating Revenues:

Charges for Sewer Services $ 7,531,053 $ 7,222,693 $ (308,360) Interest Income 25,000 99,927 74,927
Corona Loan Interest 111,786 111,786 -
Corona Loan Principal 247,869 - (247,869)
Total Revenues $ 7,915,708 $ 7,434,406 $ (481,303)
Expenses:

Salaries and Benefits $ 1,514,497 1,293,932 $ 220,565
Employee Related Expense 25,050 19,825 5,225
Supplies and Services 116,550 148,744 (32,194)
Maintenance and Rentals 74,300 11,244 63,056
Operations and Utilities 91,000 87,530 3,470
Professional & Contractual 3,016,688 2,645,482 371,206
Debt Service Related Payments 1,614,579 1,615,086 (507) Computer, Vehicle Operations & Replacement Charges 338,460 338,460 - Self-Insurance Settlements 10,000 - 10,000
Miscellaneous/Small Equipment 145,000 - 145,000
Administrative Overhead & Reimbursements to Other Funds 479,292 479,292 - Total Operating Expenses $ 7,425,416 $ 6,639,595 $ 785,821 Revenues Over (Under) Expenses $ 490,292 $ 794,812 $ 304,519

Attachment 6
City of Norco
Schedule of Other Funds Budget to Actual Report
For the Fiscal Year Ended June 30, 2023
Actual vs
Amended Year-End Amended
Fund Description Budget Actual Budget

WATER FUND
Revenues $ 13,562,316 $ 12,674,236 $ (888,080)
Expenses 13,774,454 11,705,723 2,068,731
Revenues Over (Under) Expenses $ (212,138) $ 968,513 $ 1,180,651

SEWER FUND
Revenues $ 7,915,708 $ 7,434,406 $ (481,302)
Expenses 7,425,416 6,639,595 785,821
Revenues Over (Under) Expenses $ 490,292 $ 794,812 $ 304,520

GAS TAX
Revenues $ 692,662 $ 686,944 $ (5,718)
Expenditures 965,848 792,667 173,181
Revenues Over (Under) Expenditures $ (273,186) $ (105,723) $ 167,463

NPDES FUND
Revenues $ 133,000 $ 120,484 $ (12,516)
Expenditures 182,237 150,907 31,330
Revenues Over (Under) Expenditures $ (49,237) $ (30,423) $ 18,814 CDBG
Revenues $ 230,089 $ 12,934 $ (217,155)
Expenditures 230,089 12,934 217,155
Revenues Over (Under) Expenditures $ - $ - $ -

MISCELLANEOUS GRANTS
Revenues $ 2,367,892 $ 255,345 $ (2,112,547)
Expenditures 2,367,892 255,345 2,112,547
Revenues Over (Under) Expenditures $ - $ - $ -

NANCY ADRIAN NEWMAN TRUST FUND
Revenues $ 36,264 $ 1,967 $ (34,297)
Expenditures 36,264 11,987 24,277
Revenues Over (Under) Expenditures $ - $ (10,019) $ (10,019)

SUPPLEMENTAL LAW ENFORCEMENT
Revenues $ 165,271 $ 165,271 $ -
Expenditures 165,271 165,271 -
Revenues Over (Under) Expenditures $ - $ - $ -

MEASURE R
Revenues $ 8,275,462 $ 8,359,224 $ 83,762
Expenditures 17,888,136 6,941,246 10,946,890
Revenues Over (Under) Expenditures $ (9,612,674) $ 1,417,978 $ 11,030,652 Page 137 of 170 Attachment 7 Page 1
City of Norco
Budget to Actual Report
For the Fiscal Year Ended June 30, 2023
Actual vs
Amended Year-End Amended
Landscape Maintenance District #1 Budget Actual Budget
Revenues:

LMD #1 Assessments $ 11,667 $ 11,808 $ 141
Total Revenues $ 11,667 $ 11,808 $ 141
Expenditures:

Observation $ 4,546 $ 3,068 $ 1,478
Tree Replacement 250 - 250
Water Charges 4,425 3,452 973
Electricity Charges 150 38 112
Telephone Charges 200 374 (174)
Landscape Maintenance 3,198 3,803 (605)
Contractual 11,470 5,099 6,371
Administrative Overhead 537 537 -
Admin Fees-Property Taxes 150 111 39
Incidentals 400 - 400
Fuel - 18 (18)
Total Expenditures $ 25,326 $ 16,499 $ 8,827
Revenues Over (Under) Expenditures $ (13,659) $ (4,691) Fund Balance:

Beginning Fund Balance $ 735
FY Change in Fund Balance (4,691)
Ending Fund Balance June 30, 2023 $ (3,956)

Attachment 7 Page 2
City of Norco
Budget to Actual Report
For the Fiscal Year Ended June 30, 2023
Actual vs
Amended Year-End Amended
Landscape Maintenance District #2 Budget Actual Budget
Revenues:

LMD #2 Assessments $ 174,963 $ 172,977 $ (1,986)
Interest Income - (726) (726)
Total Revenues $ 174,963 $ 172,251 $ (2,712)
Expenditures:

Observation $ 22,570 $ 15,340 $ 7,230
Tree Replacement 3,000 - 3,000
Equestrian Trails 44,885 46,029 (1,144)
Water Charges 34,710 33,816 894
Electricity Charges 2,000 1,422 578
Telephone Charges 206 - 206
Landscape Maintenance 44,353 50,505 (6,152)
Wet Lands Area 534 - 534
Park Maintenance 9,614 12,815 (3,201)
Contractual 13,150 6,334 6,816
Administrative Overhead 7,340 7,340 -
Admin Fees-Property Taxes 242 166 76
Incidentals 1,000 1,715 (715)
Fuel - 89 (89)
Operating Contingency 3,186 - 3,186
Land Improvements - 2,322 (2,322)
Total Expenditures $ 186,790 $ 177,893 $ 8,897
Revenues Over (Under) Expenditures $ (11,827) $ (5,642) Fund Balance:

Beginning Fund Balance $ (756)
FY Change in Fund Balance (5,642)
Ending Fund Balance June 30, 2023 $ (6,398)

Attachment 7 Page 3
City of Norco
Budget to Actual Report
For the Fiscal Year Ended June 30, 2023
Actual vs
Amended Year-End Amended
Landscape Maintenance District #3 Budget Actual Budget
Revenues:

LMD #3 Assessments $ 98,120 $ 99,381 $ 1,261
Interest Income - 45 45
Total Revenues $ 98,120 $ 99,426 $ 1,306
Expenditures:

Observation $ 18,182 $ 12,272 $ 5,910
Equestrian Trails 7,040 12,747 (5,707)
Tree Replacement 2,500 - 2,500
Water Charges 41,870 28,560 13,310
Electricity Charges 1,200 818 382
Telephone Charges 65 - 65
Landscape Maintenance 34,235 39,971 (5,736)
Contractual 12,704 6,505 6,199
Administrative Overhead 5,068 5,068 -
Admin Fees-Property Taxes 266 117 149
Incidentals 1,000 253 747
Fuel - 71 (71)
Operating Contingency 3,476 - 3,476
Total Expenditures $ 127,606 $ 106,383 $ 21,223
Revenues Over (Under) Expenditures $ (29,486) $ (6,957) Fund Balance:

Beginning Fund Balance $ 9,222
FY Change in Fund Balance (6,957)
Ending Fund Balance June 30, 2023 $ 2,265

Attachment 7 Page 4
City of Norco
Budget to Actual Report
For the Fiscal Year Ended June 30, 2023
Actual vs
Amended Amended
Landscape Maintenance District #4 Budget Actual Budget
Revenues:

LMD #4 Assessments $ 494,209 $ 489,400 $ (4,809)
Interest Income - 5,151 5,151
Miscellaneous Revenue - 6,400 6,400
Total Revenues $ 494,209 $ 500,951 $ 6,742
Expenditures:

Observation $ 31,818 $ 21,476 $ 10,342
Equestrian Trails 88,516 111,579 (23,063)
Tree Replacement 5,000 1,980 3,020
Water Charges 131,852 92,792 39,060
Electricity Charges 7,827 7,359 468
Telephone Charges 739 353 386
Landscape Maintenance 161,814 205,637 (43,823)
Natural Open Space 14,472 1,000 13,472
Wet Lands Area 5,884 - 5,884
Park Maintenance 19,215 13,172 6,043
Contractual 3,893 4,079 (186)
Administrative Overhead 30,724 30,724 -
Admin Fees-Property Taxes 401 288 113
Incidentals 10,000 15,071 (5,071)
Fuel - 125 (125)
Operating Contingency 17,412 358 17,054
Land Improvements - 4,716 (4,716)
Storm Sewer Lines 20,000 10,982 9,018
Total Expenditures $ 549,567 $ 521,692 $ 27,875
Revenues Over (Under) Expenditures $ (55,358) $ (20,741) Fund Balance:

Beginning Fund Balance $ 331,081
FY Change in Fund Balance (20,741)
Ending Fund Balance June 30, 2023 $ 310,340

Attachment 7 Page 5
City of Norco
Budget to Actual Report
For the Fiscal Year Ended June 30, 2023
Actual vs
Amended Amended
Landscape Maintenance District #5 Budget Actual Budget
Revenues:

LMD #5 Assessments $ 65,096 $ 65,096 $ -
Interest Income - 2,855 2,855
Total Revenues $ 65,096 $ 67,951 $ 2,855
Expenditures:

Observation $ 13,638 $ 9,204 $ 4,434
Equestrian Trails 8,924 12,925 (4,001)
Tree Replacement 500 - 500
Water Charges 11,726 9,658 2,068
Electricity Charges 621 427 194
Telephone Charges 68 - 68
Landscape Maintenance 17,842 16,493 1,349
Park Maintenance - 8,587 (8,587)
Contractual 2,704 2,490 214
Administrative Overhead 2,956 2,956 -
Admin Fees-Property Taxes 253 105 148
Incidentals 1,000 253 747
Fuel - 54 (54)
Operating Contingency 3,825 - 3,825
Storm Sewer Lines 75,000 51,733 23,267
Total Expenditures $ 139,057 $ 114,884 $ 24,173
Revenues Over (Under) Expenditures $ (73,961) $ (46,933) Fund Balance:

Beginning Fund Balance $ 151,517
FY Change in Fund Balance (46,933)
Ending Fund Balance June 30, 2023 $ 104,585

Measure R Citizens' Oversight
Committee

STAFF REPORT
Date: September 27, 2023 Agenda Item:

6.B.

To: Honorable Chair and Committee Members
Prepared By: Lisette Free, Finance Director
Department: Finance
SUBJECT:

Measure R Fund FY 2022-23 Budget to Actual Report
RECOMMENDATION:

Receive and File Measure R Fund FY 2022-23 Budget to Actual Report.

SUMMARY:

During Fiscal Year 2022-23, total Measure R Fund revenues exceeded the original and came in slightly under the amended budget amounts. Total Measure R expenditures for the fiscal year were less than total budget amount because many of the projects are yet to be completed. For projects that were not completed during the fiscal year, the remaining unspent amounts have been carried over to Fiscal Year 2023-24. Staff recommends that the Measure R Citizens' Oversight Committee (COC) receive and file the FY 2022-23 Measure R Fund Budget to Actual Report.

BACKGROUND:

Measure R Citizens' Oversight Committee Bylaws require that an annual financial audit performed by an independent certified public accounting firm be presented and reviewed by the COC. The City’s independent auditors, CliftonLarsonAllen, are in the process of completing their work on the City audit for the Fiscal Year ended June 30, 2023. The Measure R Fund Financial Statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) will be submitted to the Committee at a later date after the completion of the audit. In the meantime, staff is presenting this important report as information to show how Measure R Fund performed relative to the approved budget for Fiscal Year 2022-23.

Measure R Revenues

1. Measure R Transactions and Use Tax: Transactions and Use Tax receipts totaled $8,129,336 or $81,212 less than the amended budget amount. The original approved budget amount for Measure R Sales and Use Tax was $7,802,548 while Attachment 8 Page 1

the amended budget amount was $8,210,548. Both the original budget and amended budget amounts were established based on estimates provided by HDL, the City’s Sales Tax Consultant. The Consultant recommended an increase to the original budget amount since revenues were trending favorably.

2. Investment Earnings: Interest earnings totaled $229,888 or $164,974 more than anticipated at year-end. The variance is largely due to the higher than anticipated earnings on investments from interest rates as well as the fair market value adjustments as of June 30, 2023.

Measure R Expenditures
Total Measure R expenditures for the fiscal year were $6,941,246 compared to total amended budget amount of $17,888,136. The difference between the budget and actual expenditures is mainly because many of the projects approved during the fiscal year are in process of completion. In addition, there are delays in construction projects due to contractors and supplies availability. The remaining budget for the projects that were not completed during the fiscal year have been carried over to Fiscal Year 2023-24.

Attachment A provides a summary of FY 2022-23 Measure R budget and actual unaudited expenditures including unspent amounts that have been carried over.

Attachment B provides a summary of Measure R project's life-to-date budget to actual expenditures.

Measure R Fund Balance
Measure R’s FY 2022-23 fund balance increased due to total revenues exceeding total expenditures by $1,417,945. The beginning fund balance at July 1, 2022 was $12,607,574 resulting in an ending fund balance of $14,025,552. The FY 2023-24 Measure R budget includes $9,699,382 for carryover projects based on estimated FY 2022-23 expenditures. The FY 2023-24 Measure R Budget will be amended to reflect the project's carryover amounts based on actual FY 2022-23 expenditures. As a result, the ending fund balance will cover the carryover projects of $9,699,382 and result in $4,326,169 being available for future projects. It is important to note that some of the amount available for future projects as of June 30, 2023 was used for new projects approved in the FY 2023-24 Measure R Capital Improvement Program Budget.

FISCAL IMPACT:

The FY 2023-24 Measure R Capital Improvement Program Budget will be amended to reflect the project's carryover amounts based on actual FY 2022-23 expenditures.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction No. 3. Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Attachment 8 Page 2

ATTACHMENT(S):

Attachment A
Attachment B
Attachment 8 Page 3

Revenue Description
FY 2022-23
Approved
Budget
FY 2022-23
Amended
Budget
FY 2022-23
Actual
Budget Less
FY 2022-23
Actual Carryover
Measure R Tax Revenues $ 7,802,548 $ 8,210,548 $ 8,129,336 $ 81,212 $ - Investment Earnings 64,914 64,914 229,888 (164,974) -
Total Revenues $ 7,867,462 $ 8,275,462 $ 8,359,224 $ (83,762) - Expenditures
Operating and Maintenance
Trail System Maintenance $ 567,000 $ 567,000 $ 517,287 $ 49,713 $ - Committee Stipends 1,400 1,400 - 1,400 -
Professional Services 10,000 10,000 6,150 3,850 -
Subtotal 578,400 578,400 523,437 54,963 -
Measure R Capital Projects
Facilities Improvements
City Hall Remodel - Efficiency Assessment $ 100,000 $ 100,000 $ - $ 100,000 $ 100,000 City Hall/Sheriff Sub-Station Improvements 500,000 249,295 43,492 205,803 205,803 Citywide ADA Improvement Project 396,770 396,770 213,654 183,116 183,116 Citywide Facility Painting & Treating 100,000 134,173 - 134,173 134,173 Citywide Flooring 250,000 250,000 646 249,354 249,354
Facilities and Maintenance Office 300,000 100,000 - 100,000 100,000 Mobile Storage Unit - Special Events - 30,000 15,740 14,260 14,260 Moreno Arena Emergency Bleacher Lighting 100,000 20,000 - 20,000 20,000 Moreno Arena Sound System 130,000 154,882 154,870 12 -
Nellie Weaver Hall Improvements 408,710 276,110 24,707 251,403 251,403 Pole Barns 3,227,284 3,355,233 2,400,175 955,058 955,058 Pole Barn IT Infrastructure 200,000 200,000 673 199,327 199,327 Security System Upgrade 60,000 60,000 14,999 45,001 45,001 Land Improvements
Animal Control, Parmenter & Wayne Makin Parking Lots 150,000 153,945 3,073 150,873 150,873 Citywide Irrigation System Upgrades 420,000 420,000 1,103 418,897 418,897 Wayne Makin LED Lighting Upgrade 2,500,000 2,500,000 880 2,499,120 2,499,120 Park Improvements
Citywide Park Enhancements 504,240 504,240 104,882 399,358 399,358 Citywide Rec Programs and Facilities Assessment 50,000 50,000 - 50,000 50,000 Street Improvements
Canyon Ridge Circle Pavement Project 120,000 120,000 94,473 25,527 - Citywide Urban Forest Tree Planting Project 49,843 34,260 9,817 24,443 - Slurry Seal Street Improvement - 250,000 203,995 46,005 - Electronic Feedback Signs 100,000 100,000 79,756 20,244 - Hillside Ave Pavement Project 710,000 288,032 86,741 201,291 - Kingman Drive Pavement Project 190,000 190,000 151,425 38,575 - Oak Ridge Circle Pavement Project 130,000 130,000 101,173 28,827 - Parkridge Avenue Pavement Project 225,000 190,000 32,770 157,230 - Queens Road Pavement Project 100,000 100,000 77,722 22,278 - Rim Crest Drive Pavement Project 400,000 400,000 251,929 148,071 - River Drive Stabilization Project - 90,209 48,702 41,507 41,507 Second Street Pavement Project - East Side 1,200,000 1,839,927 844,260 995,667 995,667 Shadow Canyon Circle Payment Project 600,000 687,000 651,507 35,493 - Sixth Street Decorative LED Light Pole Project 30,000 30,000 17,657 12,343 - Third Street Pavement Project 500,000 1,002,933 4,317 998,616 998,616 Valley View Ave - Third St to Fourth St 1,000,000 1,701,270 77,802 1,623,468 1,623,468 Vista Ridge Circle Pavement Project 130,000 130,000 97,823 32,177 - Woodward Avenue Pavement Project 300,000 300,000 41,440 258,560 - Trails Improvements
Silverlakes Causeway 201,457 71,457 7,075 64,382 64,382 Trail Fencing Replacement for FY 22-23 700,000 700,000 558,530 141,470 - Subtotal $ 16,083,304 $ 17,309,736 $ 6,417,809 $ 10,891,927 $ 9,699,382 Total Expenditures $ 16,661,704 $ 17,888,136 $ 6,941,246 $ 10,946,890 $ 9,699,382 Revenues Over (Under) Expenditures $ 1,417,978
Beginning Fund Balance July 1, 2022 12,607,574
Ending Fund Balance June 30, 2023 $ 14,025,552
Carryover Projects $ (9,699,382)
Amount Available for Future Projects $ 4,326,169
Measure R Transactions and Use Tax
Budget to Actual Report
Attachment A
Attachment 8 Page 4

Attachment B
Projects
Total Approved
Budget
FY 2022-23
Approved
Budget
Expenditures as
of 06/30/22
FY 2022-23
Actual
Cumulative
Expenditures
as of 06/30/23
Budget
Remaining
Measure R Capital Projects
Facilities Improvements
City Hall Remodel - Efficiency Assessment $ 100,000 $ 100,000 $ - $ - $ - $ 100,000 City Hall/Sheriff Sub-Station Improvements 312,206 249,295 62,911 43,492 106,403 205,803 Citywide ADA Improvement Project 400,000 396,770 3,230 213,654 216,884 183,116 Citywide Facility Painting & Treating 250,000 134,173 115,827 - 115,827 134,173 Citywide Flooring 250,000 250,000 - 646 646 249,354
Facilities and Maintenance Office 100,000 100,000 - - - 100,000 Mobile Storage Unit - Special Events 30,000 30,000 - 15,740 15,740 14,260 Moreno Arena Emergency Bleacher Lighting 20,000 20,000 - - - 20,000 Moreno Arena Sound System 154,882 154,882 - 154,870 154,870 - Nellie Weaver Hall Improvements 369,000 276,110 92,891 24,707 117,597 251,403 Pole Barns 4,247,190 3,355,233 891,957 2,400,175 3,292,132 955,058 Pole Barn IT Infrastructure 200,000 200,000 - 673 673 199,327 Security System Upgrade 60,000 60,000 - 14,999 14,999 45,001 Land Improvements
Animal Control, Parmenter & Wayne Makin Parking Lots 301,557 153,945 147,612 3,073 150,684 150,873 Citywide Irrigation System Upgrades 420,000 420,000 - 1,103 1,103 418,897 Wayne Makin LED Lighting Upgrade 2,554,051 2,500,000 54,051 880 54,931 2,499,120 Park Improvements
Cityside Park Enhancements 510,000 504,240 5,760 104,882 110,642 399,358 Citywide Rec Programs and Facilities Assessment 50,000 50,000 - - - 50,000 Street Improvements
Canyon Ridge Circle Pavement Project 120,000 120,000 - 94,473 94,473 - Citywide Urban Forest Tree Planting Project 82,000 34,260 47,740 9,817 57,557 - Slurry Seal Street Improvement 250,000 250,000 203,995 203,995 - Electronic Feedback Signs 100,000 100,000 - 79,756 79,756 - Hillside Ave Pavement Project 910,000 288,032 621,968 86,741 708,709 - Kingman Drive Pavement Project 190,000 190,000 - 151,425 151,425 - Oak Ridge Circle Pavement Project 130,000 130,000 - 101,173 101,173 - Parkridge Avenue Pavement Project 190,000 190,000 - 32,770 32,770 - Queens Road Pavement Project 100,000 100,000 - 77,722 77,722 - Rim Crest Drive Pavement Project 400,000 400,000 - 251,929 251,929 - River Drive Stabilization Project 90,209 90,209 48,702 48,702 41,507 Second Street Pavement Project - East Side 1,839,927 1,839,927 844,260 844,260 995,667 Shadow Canyon Circle Payment Project 701,350 687,000 14,350 651,507 665,857 - Sixth Street Decorative LED Light Pole Project 30,000 30,000 17,657 17,657 - Third Street Pavement Project 1,050,000 1,002,933 47,068 4,317 51,385 998,615 Valley View Ave - Third St to Fourth St 1,770,629 1,701,270 69,359 77,802 147,161 1,623,468 Vista Ridge Circle Pavement Project 130,000 130,000 - 97,823 97,823 - Woodward Avenue Pavement Project 541,000 300,000 - 41,440 41,440 - Trails Improvements
Silverlakes Causeway 71,600 71,457 143 7,075 7,218 64,383 Trail Fencing Replacement for FY 22-23 700,000 700,000 - 558,530 558,530 - Total Expenditures $ 19,725,601 $ 17,309,736 $ 2,174,866 $ 6,417,809 $ 8,592,675 $ 9,699,382 Measure R Transactions and Use Tax
FY 2022-23 Fiscal Year Project Life-to-Date Status
Attachment 8 Page 5

City Council

STAFF REPORT
Date: November 1, 2023 Agenda Item:

5.A.

To: Honorable Mayor and City Council Members
Prepared By: Dana Roa, City Clerk
Department: City Clerk
SUBJECT:

Ordinance No. 1106: Second Reading, Zone Code Amendment 2023-03 (City of Norco): A City-Initiated proposal to amend Norco Municipal Code Title 18 – “Zoning”, amending Chapter 18.65 – “Residential Density Bonus Provisions” for compliance with State law.

RECOMMENDATION:

Adopt Ordinance No. 1106, Second Reading, approving Zone Code Amendment 2023- 03 SUMMARY:

The First Reading of Ordinance No. 1106, was held on October 18, 2023 and was adopted by the City Council.

BACKGROUND:

Government Code Section 65915 (“State Density Bonus Law”) requires the City to provide a density bonus, incentives, concessions, and waivers of development standards to qualifying housing development projects. The State Density Bonus Law also requires the City to adopt an ordinance that specifies how the State Density Bonus Law will be implemented.

Chapter 18.65 of the Norco Municipal Code (“Density Bonus Ordinance”) was adopted in 2013. In the ten years since that Ordinance was adopted, there have been numerous bills modifying the State Density Bonus Law. The purpose of this ordinance is to amend the Density Bonus Ordinance to bring it into compliance with current State law. The City is required to comply with the State Density Bonus Law regardless of any conflicting provisions within the City’s Density Bonus Ordinance. Therefore, the proposed ordinance is essentially a clean-up item and does not represent any substantive change to how the City would handle a proposed project that has applied for a density bonus.

The changes to the Density Bonus Ordinance proposed in this ordinance does not exceed or deviate from the requirements of the Density Bonus Law.

The Planning Commission reviewed the proposed update/changes to Chapter 18.65 at their meeting on August 9, 2023, and has recommended approval of Zone Code Amendment 2023-03.

Summary of State Density Bonus Law & Proposed Ordinance The State Density Bonus Law allows an applicant for a housing development project that contains affordable units or is a development for a special population (senior citizens, lower income students, transitional foster youth, disabled veterans, homeless) to request an increase to the permissible density of the project. For projects serving special populations, the density bonus is a flat amount of 20%, or 35% for lower income student housing. For projects that include affordable units, the density bonus will vary depending on the number of units set aside as affordable and the affordability level. A density bonus generally will range from 5% to 50%, however, for projects that are 100% affordable the density bonus can be up to 80%, or unlimited if within ½ mile of a major transit stop. Additional density bonus can be obtained if the project donates land to the City for the construction of affordable housing or includes a childcare facility within the project.

A housing project that qualifies for a density bonus may also request incentives or concessions that result in identifiable and actual cost reductions to provide for affordable housing. The number of incentives or concessions that an applicant may receive will vary between one and four, depending on amount of affordable units being provided. The applicant is entitled to receive a certain number of incentives or concessions but specific incentive or concession requests made can be denied if certain findings are made.

In addition, a housing project that qualifies for a density bonus may request a waiver or reduction of any development standard that physically precludes the construction of the proposed housing development at the density or with the concessions or incentives the project is entitled to under the State Density Bonus Law. There is no limit to the number of development standard waivers or reductions that can be requested. The request can only be denied if certain findings are made.

Finally, the State Density Bonus law allows the applicant for a project that qualifies for a density bonus to request a reduction in the parking ratios that are applied to the project.

If requested, the maximum parking ratios are one on-site space for each studio or one bedroom unit, one and a half on-site spaces for each two or three bedroom unit, and two and a half on-site spaces for each four bedroom unit or larger. If an applicant requests a reduced parking ratio, it does not count as one of the incentives or concessions that the project is entitled to receive.

Attached Ordinance No. 1106 includes the proposed update to Chapter 18.65 – “Residential Density Bonus Provisions”, which will replace the existing Chapter in its entirely. Existing Chapter 18.65 has been attached as Exhibit "A" for reference.

CEQA: The adoption of the proposed ordinance is exempt from review under the California Environmental Quality Act (CEQA) as it is not considered a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378 because this Ordinance will not result in a direct physical change in the environment or a

reasonably foreseeable indirect physical change in the environment. Alternatively, if the adoption of the Ordinance is a project under CEQA, it is covered by the common sense exemption in CEQA Guideline 15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance would have a significant effect on the environment. This Ordinance simply implements the State Density Bonus Law and if the Ordinance were not adopted the City would still be required to implement the State Density Bonus Law.

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction #3 - Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Lisette Free, Finance Director Approved by: Lori Sassoon, City Manager
Approved as to Form: Harper and Burns, LLC, City Attorney ATTACHMENT(S):

Ordinance No. 1106 for Zone Code Amendment 2023-03

ORDINANCE NO. 1106

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NORCO,
CALIFORNIA, APPROVING ZONE CODE AMENDMENT 2023-03: A CITYINITIATED PROPOSAL TO AMEND NORCO MUNICIPAL CODE TITLE 18 – “ZONING”, AMENDING CHAPTER 18.65 – “RESIDENTIAL DENSITY BONUS PROVISIONS” FOR COMPLIANCE WITH STATE LAW..

WHEREAS, the CITY OF NORCO initiated Zone Code Amendment 2023-03, a proposal to amend Chapter 18.65 of the Norco Municipal Code Title 18 (Zoning Code), relating to residential accessory buildings; and
WHEREAS, the Zone Code Amendment was duly submitted to said City’s Planning Commission for decision at a public hearing for which proper notice was given; and WHEREAS, the Zone Code Amendment was scheduled for public hearing on August 9, 2023 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, at the time set, the Planning Commission held a public hearing and received both oral and written testimony pertaining to the Zone Code Amendment; and WHEREAS, the Planning Commission adopted Resolution 2023-17, recommending approval of Zone Code Amendment 2023-03 to the City Council; and WHEREAS, the Zone Code Amendment was duly submitted to said City’s City Council for decision at a public hearing for which proper notice was given; and WHEREAS, the Zone Code Amendment was scheduled for public hearing on October 18, 2023 on or about 7 p.m. in the Council Chambers at 2820 Clark Avenue, Norco, California 92860; and
WHEREAS, at the time set, the City Council held a public hearing and received both oral and written testimony pertaining to the Zone Code Amendment; and WHEREAS, the City of Norco acting as the Lead Agency has determined that this Zone Code Amendment is exempt from review under the California Environmental Quality Act (CEQA).

NOW, THEREFORE, the City Council of the City of Norco does hereby make the following FINDINGS AND DETERMINATIONS:

I. FINDINGS.

A. The proposed Zone Code Amendment is necessary for compliance with current laws pertaining to density bonuses and other incentives and concessions available to qualified applicants under Government Code Sections 65915 through 65918.

Ordinance No. 1106 for Zone Code Amendment 2023-03
November 1, 2023

B. The proposed Zone Code Amendment is necessary for compliance with the objectives, policies, programs, and actions of the Housing Element of the General Plan. Therefore, the proposed Zone Code Amendment does not conflict with City of Norco General Plan.

C. The proposed amendment will not be detrimental to the public convenience, health, safety, or general welfare of the City because the amendment will update the existing Density Bonus Ordinance for compliance with State Law.

D. The adoption of the proposed Zone Code Amendment (ZCA) is exempt from review under the California Environmental Quality Act (CEQA) as it is not considered a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378 because this ZCA will not result in a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Alternatively, if the adoption of the ZCA is a project under CEQA, it is covered by the common sense exemption in CEQA Guideline 15061(b)(3) because it can be seen with certainty that there is no possibility that the ZCA would have a significant effect on the environment. This ZCA simply implements the State Density Bonus Law and if the ZCA were not adopted the City would still be required to implement the State Density Bonus Law.

II. DETERMINATION:

NOW THEREFORE, the City Council for the City of Norco, California, does hereby approve as follows:

SECTION 1:

Title 18 (Zoning) of the Norco Municipal Code, Chapter 18.65 (Residential Density Bonus Provisions), is hereby amended in its entirety to read as follows:

Chapter 18.65

RESIDENTIAL DENSITY BONUS PROVISIONS
Sections:

18.65.02 Intent and Purpose.

18.65.04 Definitions.

18.65.06 General Density Bonus Provisions

Ordinance No. 1106 for Zone Code Amendment 2023-03
November 1, 2023

18.65.08 Calculation of Density Bonus

18.65.10 Incentives and Concessions

18.65.12 Waiver or Reduction of Development Standards

18.65.14 Additional Density Bonus Through Donation of Land

18.65.16 Additional Density Bonus or Concession or Incentive Through Provision of Child Care Facility,

18.65.18 City’s Discretion in ranting Density Bonus

18.65.20 Parking Standards

18.65.22 Interpretation

18.65.02 Intent and Purpose.

The intent and purpose of Chapter 18.65 is: (1) to facilitate the production of housing for all income levels and special needs households, including senior citizen housing; (2) facilitate the development of rental housing for households in all income categories identified by the California Government Code as it pertains to the development of affordable housing; and (3) to implement Sections 65915, 65915.5 and 65917 of the California Government Code as required by Section 65915(a). In enacting this chapter, the City also intends to implement the goals, objectives, and policies of the City’s general plan housing element to encourage the construction of affordable housing in the City. It is also the City’s intent to encourage the development of rental housing to serve an economically diverse community.

Accordingly, the City desires to provide a density bonus upon the request of an applicant when the applicant includes affordable or senior citizen restricted units in a project. This chapter implements the laws for density bonuses and other incentives and concessions available to qualified applicants under Government Code Sections 65915 through 65918. In the event these Government Code sections are amended, those amended provisions shall be incorporated into this chapter as if fully set forth herein.

18.65.04 Definitions.

For purposes of this chapter, the following definitions apply:
“Affordable housing cost” has the definition set forth in California Health and Safety Code Section 50052.5.
“Affordable rent” has the definition set forth in California Health and Safety Code Section 50053.
“Approval authority” means the City Council, Planning Commission, or Director. The approval authority shall be the person or body that has the authority to approve the plot plan or other applications for the subject housing development under the Zoning Ordinance or Subdivision Ordinance.

Ordinance No. 1106 for Zone Code Amendment 2023-03
November 1, 2023

“Child care facility” means a child daycare facility other than a family day care home, including, but not limited to, infant centers, preschools, extended day care facilities, and school age child care centers.
“Common interest development” has the definition set forth in California Civil Code Section 4100.
“Concession” or “incentive” means any of the following:

1. A reduction in site development standards or a modification of Zoning Ordinance requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission, as provided in Part 2.5 (the State Building Code commencing with Health and Safety Code Section 18901) of Division 13 of the Health and Safety Code, including, but not limited to, a reduction in setback and square footage requirements, and in the ratio of vehicular parking spaces that would otherwise be required, that results in identifiable and actual cost reductions to provide for affordable housing costs or affordable rents.

2. Approval of mixed-use zoning in conjunction with a housing project, if commercial, office, industrial or other land uses will reduce the cost of a housing development, and if the commercial, office, industrial or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located.

3. Other regulatory incentives or concessions proposed by the applicant or the City that result in identifiable and actual cost reductions to provide for affordable housing costs or affordable rents.

This definition does not limit or require the provision of direct financial incentives for a housing development, including the provision of publicly owned land by the City or the waiver of fees or dedication requirements.
“Density bonus” means a density increase over the otherwise maximum allowable residential density as of the date of application by the applicant to the City. “Development standard” means a site or construction condition, including but not limited to, a height limitation, a setback requirement, a floor area ratio, an onsite open-space requirement, a minimum lot area per unit requirement, or a parking ratio that applies to a residential development pursuant to any ordinance, General Plan element, specific plan, or other city condition, law, policy, resolution or regulation. “Director” means the Planning Director or the Director’s designee. “Housing development” means a development project for five or more residential units, including mixed use developments. “Housing development” also includes a subdivision or common interest development consisting of residential units or

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unimproved residential lots and either a project to substantially rehabilitate and convert an existing commercial building to residential use or the substantial rehabilitation of an existing multifamily dwelling where the result of the rehabilitation would be a net increase in the number of residential units. For the purpose of calculating a density bonus, the residential units shall be on contiguous sites that are the subject of one development application, but do not have to be based upon individual subdivision maps or parcels. The density bonus is permitted in geographic areas of the housing development other than the areas where the units for the lower income households are located.
“Lower income households” has the definition set forth in California Health and Safety Code Section 50079.5.
“Major transit stop” has the same meaning as defined in Public Resources Code Section 21155(b).
“Maximum allowable residential density” or “base density” means the maximum number of units allowed under the Zoning Ordinance, Specific Plan, or land use element of the General Plan, or if a range of density is permitted, the maximum number of units allowed by the specific zoning range, specific plan, or land use element of the General Plan applicable to the project. If the density allowed under the zoning ordinance is inconsistent with the density allowed under the land use element of the general plan or specific plan, the greater shall prevail. Density shall be determined using dwelling units per acre. However, if the applicable zoning ordinance, specific plan, or land use element of the general plan does not provide a dwelling-units-per-acre standard for density, then the City shall calculate the number of units as provided for in Government Code Section 65915(o)(6). “Moderate income households” has the definition for “persons or families of moderate income” set forth in California Health and Safety Code Section 50093(b). “Multifamily dwelling” has the definition set forth in California Government Code Section 65863.4(d).
“Qualified nonprofit housing corporation” is a nonprofit housing corporation organized pursuant to Section 501(c)(3) of the Internal Revenue Code that has received a welfare exemption under Section 214.15 of the Revenue and Taxation Code for properties intended to be sold to low-income families who participate in a special nointerest loan program. “Senior citizen housing development” has the definition set forth in California Civil Code Section 51.3.
“Shared housing building” means a residential or mixed-use structure, with five or more shared housing units and one or more common kitchens and dining areas designed for permanent residence of more than 30 days by its tenants. The kitchens and dining areas within the shared housing building shall be able to adequately

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accommodate all residents. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of this section. A “shared housing building” may include other dwelling units that are not shared housing units, provided that those dwelling units do not occupy more than 25 percent of the floor area of the shared housing building. A shared housing building may include 100 percent shared housing units. When an applicant proposes to construct a housing development that conforms to the requirements of Section

18.65.020(B)(1) or (2) that is a shared housing building, the city shall not require any minimum unit size requirements or minimum bedroom requirements that are in conflict with this definition.
“Shared housing unit” means one or more habitable rooms, not within another dwelling unit, that includes a bathroom, sink, refrigerator, and microwave, is used for permanent residence, that meets the “minimum room area” specified in Section R304 of the California Residential Code (Part 2.5 of Title 24 of the California Code of Regulations) and complies with the definition of “guestroom” in Section R202 of the California Residential Code. If a local ordinance further restricts the attributes of a shared housing building beyond the requirements established in this section, the local definition shall apply to the extent that it does not conflict with the requirements of Government Code section 65915. For purposes of calculating a density bonus granted pursuant to this section for a shared housing building, “unit” means one shared housing unit and its pro rata share of associated common area facilities. “Specific, adverse impact” has the definition set forth in California Government Code Section 65589.5(d)(2).
“Total units,” “total dwelling units,” or “total rental beds” does not include units added by a density bonus awarded pursuant to this section or any local law granting a greater density bonus.
“Very low income households” has the definition set forth in California Health & Safety Code Section 50105.
“Very low vehicle travel area” means an urbanized area, as designated by the United States Census Bureau, where the existing residential development generates vehicle miles traveled per capita that is below 85 percent of either regional vehicle miles traveled per capita, or city vehicle miles traveled per capita. For purposes of this paragraph, “area” may include a travel analysis zone, hexagon, or grid. For the purposes of determining “regional vehicle miles traveled per capita” pursuant to this paragraph, a “region” is the entirety of incorporated and unincorporated areas governed by a multicounty or single-county metropolitan planning organization, or the entirety of the incorporated and unincorporated areas of an individual county that is not part of a metropolitan planning organization.

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18.65.06 General density bonus provisions.

A. Application. Any person that desires a density bonus pursuant to this chapter must make an application on a form approved by the Director at the time of submitting an entitlement application for the housing development for which a density bonus is requested.

B. Available Density Bonus Options. The approval authority will grant one density bonus, the amount of which will not exceed the amounts specified in Section 18.65.030, when an applicant for a housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this chapter, that satisfies one of the following criteria:

1. 10% percent of the total units of a housing development, including a shared housing building development, are for lower income households.

2. 5% of the total units of a housing development, including a shared housing building development, are for very low income households.

3. The housing development is a senior citizen housing development. For purposes of this subparagraph, “development” includes a shared housing building development.

4. The housing development is a common interest development and 10% of the total dwelling units in are for moderate income households, provided that all units in the housing development are offered to the public for purchase.

5. 10% of the total units are for transitional foster youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.).

6. 20% of the total units are for lower income students in a student housing development that meets the requirements of Government Code Section 65915(b)(1)(F).

7. 100% of all units in the development, including total units and density bonus units, but exclusive of a manger’s unit or units, are for lower income households, except that up to 20% of the units in the development, including total units and density bonus units, may be for moderate-income households. For purposes of this subparagraph, “development” includes a shared housing building development.

C. Applicant’s Election of Basis for Bonus. For purposes of calculating the amount of the density bonus pursuant to Section 18.65.030, the applicant who requests

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a density bonus pursuant to this section must elect whether the bonus will be awarded on the basis of subsection (B)(1), (2), (3), (4), (5), (6), or (7) of this section.

D. Continued Affordability.

1. An applicant must agree to the continued affordability of all low and very low income rental units that qualified the applicant for the award of the density bonus for 55 years or a longer period of time if required by any applicable construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.
a. Rents for the lower income density bonus units must be set at an affordable rent.
b. Rents for all units in a housing development receiving a density bonus under subsection (B)(7) shall be as follows:
i. The rent for at least 20 percent of the units in the development shall be set at an affordable rent.
ii. The rent for the remaining units in the development shall be set at an amount consistent with the maximum rent levels for lower income households, as those rents and incomes are determined by the California Tax Credit Allocation Committee.

2. The City will require an equity-sharing agreement pursuant to Section 65915(c)(2), unless such an agreement would be in conflict with the requirements of another public funding source or law or may defer to the recapture provisions of the public funding source. The following apply to the equity sharing agreement:
a. Upon resale, the seller of the unit may retain the value of any improvements, the down payment, and the seller’s proportionate share of appreciation. The City will recapture any initial subsidy and its proportionate share of appreciation, if any, which amount must then be used within five years for any of the purposes that promote home ownership, as described in California Health and Safety Code Section 33334.2(e).
b. The City’s initial subsidy will be equal to the fair market value of the home at the time of initial sale, minus the initial sale price to the moderate income household, plus the amount of any down payment assistance or mortgage assistance. If upon resale the market value is lower than the initial market value, then the value at the time of the resale will be used as the initial market value.

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c. The City’s proportionate share of appreciation will be equal to the ratio of the initial subsidy to the fair market value of the unit at the time of initial sale.

3. Notwithstanding paragraph D.2 above, for-sale units may be purchased by a qualified nonprofit housing corporation pursuant to a recorded contract that satisfies all of the requirements specified in paragraph (10) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code and includes all of the requirements stated in Government Code section 65915(c)(2)(A)(ii).

F. Eligibility. An applicant shall be ineligible for a density bonus or any other incentives or concessions under this chapter if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the five-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through a public entity’s valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units, as “replace” is defined in Government Code Section 65915(c)(3)(B), and either of the following applies:
a. The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in subsection (B) of this section.
b. Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household.

18.65.08 Calculation of density bonus.

A. The amount of density bonus to which the applicant is entitled will vary according to the amount by which the percentage of affordable housing units exceeds the percentage established in Section 18.65.020(B). The applicant may elect to accept a lesser percentage of density bonus.

B. For housing developments meeting the criteria of Section 18.65.020(B)(1) [10% percent of the total units are for lower income households], the density bonus will be calculated as follows:

Percentage (%) of Low Income Units Percentage (%) Density Bonus 10 20
11 21.5
12 23

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13 24.5
14 26
15 27.5
16 29
17 30.5
18 32
19 33.5
20 35
21 38.75
22 42.5
23 46.25
24 50
C. For housing developments meeting the criteria of Section 18.65.020(B)(2) [5% of the total units are for very low income households], the density bonus will be calculated as follows:

Percentage (%) of Very Low Income Units Percentage (%) Density Bonus 5 20
6 22.5
7 25
8 27.5
9 30
10 32.5
11 35
12 38.75
13 42.5
14 46.25
15 50
D. For housing developments meeting the criteria of Section 18.65.020(B)(3) [senior citizen housing development] the density bonus will be 20% of the number of senior housing units.

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E. For housing developments meeting the criteria of Section 18.65.020(B)(4) [common interest development with 10% of the total dwelling units for moderate income households], the density bonus will be calculated as follows:

Percentage (%) of Moderate Income Units Percentage (%) Density Bonus 10 5
11 6
12 7
13 8
14 9
15 10
16 11
17 12
18 13
19 14
20 15
21 16
22 17
23 18
24 19
25 20
26 21
27 22
28 23
29 24
30 25
31 26
32 27
33 28
34 29
35 30
36 31
37 32
38 33
39 34
40 35

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41 38.75
42 42.5
43 46.25
44 50
F. For housing developments meeting the criteria of Section 18.65.020(B)(5) [10% of the total units are for transitional foster youth, disabled veterans, or homeless persons] the density bonus shall be 20% of the number of the type of units giving rise to a density bonus under that subsection.

G. For housing developments meeting the criteria of Section 18.65.020(B)(6) [20% of the total units are for lower income students] the density bonus shall be 35% of the student housing units.

H. For housing developments meeting the criteria of Section 18.65.020(B)(7) [100% units are for affordable], the following shall apply:

1. Except as otherwise provided in clauses (ii) and (iii), the density bonus shall be 80% of the number of units for lower income households.

2. If the housing development is located within one-half mile of a major transit stop, the city shall not impose any maximum controls on density.

3. If the housing development is located in a very low vehicle travel area, the city shall not impose any maximum controls on density.

I. All density calculations resulting in fractional units will be rounded up to the next whole number.

18.65.10 Incentives and concessions.

A. Application. Any person that desires incentives and/or concessions pursuant to this chapter must make an application on a form approved by the Director at the time of submitting an entitlement application for the housing development for which a density bonus is requested.

B. Number of Incentives. Subject to subsection C of this section, the applicant will receive the following number of incentives or concessions:

1. One incentive or concession for housing developments that include at least 10% of the total units for lower income households, at least 5% for very low income households, or at least 10% for moderate income households in a common interest development.