Agenda packet — Ontario City Council, December 5, 2023 (part 1 of 4)

CITY OF ONTARIO
Regular City Council/Housing Authority
Meeting

DECEMBER
5, 2023
City Hall
303 East B Street, Ontario, CA 91764

MAYOR PAUL S. LEON • MAYOR PRO TEM DEBRA DORST-PORADA
COUNCIL MEMBERS ALAN D. WAPNER, JIM W. BOWMAN AND RUBEN VALENCIA CITY CLERK SHEILA MAUTZ • TREASURER JAMES R. MILHISER
CITY MANAGER SCOTT OCHOA • CITY ATTORNEY RUBEN DURAN

WELCOME TO A MEETING OF THE ONTARIO CITY COUNCIL

All documents for public review are on ﬁle with the Records Management/City Clerk's Department located at 303 East B Street, Ontario, CA 91764.

Anyone wishing to speak in person during public comment or on a particular item will be required to ﬁll out a blue slip. Blue slips must be turned in prior to public comment beginning or before an agenda item is taken up. The Clerk will not accept blue slips after that time. To comment by email, submit your comments no later than 4:00 p.m. on the day of the meeting by emailing your name, agenda item you are commenting on and your comments to
[email protected].

All
comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and will be entered into the record.

Comments will be limited to 3 minutes. Speakers will be alerted when they have 1 minute remaining and when their time is up. Speakers are then to return to their seats and no further comments will be permitted.

In accordance with State Law, remarks during public comment are to be limited to subjects within Council's jurisdiction. Remarks on other agenda items will be limited to those items.

Remarks from those seated or standing in the back of the chamber will not permitted. All those wishing to speak including Council and Staff need to be recognized by the Chair before speaking.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 1

ACCOMODATIONS

If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's oﬃce at 909-395-2009. Notiﬁcation of 48 hours prior to the meeting will help the City make reasonable arrangements. Equipment for the hearing impaired is available in the Records Management Office.

ORDER OF BUSINESS

The regular City Council and Housing Authority meeting begins Public Comment at 6:30 p.m. immediately followed by the Regular Meeting and Public Hearings. No agenda item will be introduced for consideration after 10:00 p.m. except by majority vote of the City Council.

CALL TO ORDER
(OPEN SESSION)

ROLL CALL

Dorst-Porada, Wapner, Bowman, Valencia, Mayor/Chairman Leon

PLEDGE OF ALLEGIANCE
Council Member Bowman

INVOCATION
Senior Pastor Gresford Thomas, Ontario Seventh-Day Adventist Church PUBLIC COMMENTS 6:30 P.M.

The Public Comment portion of the Council/Housing Authority meeting is limited to 30 minutes with each speaker given a maximum of 3 minutes. An opportunity for further Public Comment may be given at the end of the meeting. Under provisions of the Brown Act, Council is prohibited from taking action on oral requests.

To comment by email, submit your comments by email no later than 4:00 p.m. on the day of the meeting by emailing your name, agenda item you are commenting on and your comment to [email protected]. All Comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and entered into the record. As previously noted -- if you wish to address the Council, fill out one of the blue slips at the rear of the chambers and give it to the City Clerk.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 2

1. APPROVAL OF MINUTES

ATTACHMENT:

20231107 Minutes (Not official until approved)

2. BILLS & PAYROLL

3. RESOLUTIONS UPDATING AUTHORIZED DEPUTY CITY TREASURERS AND UPDATED

INVESTMENT POLICY

AGENDA REVIEW/ANNOUNCEMENTS

The City Manager will go over all updated materials and correspondence received after the Agenda was distributed to ensure Council Members have received them. He will also make any necessary recommendations regarding Agenda modiﬁcations or announcements regarding Agenda items to be considered.

INFORMATION RELATIVE TO POSSIBLE CONFLICT OF INTEREST
Agenda item contractors, subcontractors and agents may require member abstentions due to conflict of interests and financial interests. Council Member abstentions shall be stated under this item for recordation on the appropriate item.

CONSENT CALENDAR

All matters listed under CONSENT CALENDAR will be enacted by one motion in the form listed below – there will be no separate discussion on these items prior to the time Council votes on them, unless a member of the Council requests a speciﬁc item be removed from the Consent Calendar for a separate vote.

Each member of the public wishing to address the City Council on items listed on the Consent Calendar will be given a total of 3 minutes.

Minutes for the regular meetings of the City Council and Housing Authority of November 7, 2023, and approving same as on file in the Records Management Department.

Bills November 3, 2023 through November 16, 2023, and Payroll October 22, 2023 through November 4, 2023.

That the City Council adopt Resolutions rescinding Resolution Nos. 2022-157 and 2022-158; and amending the list of Deputy City Treasurers authorized to invest City funds in the Local Agency Investment Fund (LAIF) and other eligible investment securities and consider and approve the update to the City of Ontario’s Investment Policy.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, PROVIDING FOR CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 3

ATTACHMENT:

Investment Policy (2023)^EXHIBIT A

ATTACHMENT:

Updating Authorized Deputy City Treasurers^02^RESO-Local Agency Investment Fund^RM

ATTACHMENT:

Updating Authorized Deputy City Treasurers^03^RESO- City Funds^RM

4. A RESOLUTION APPROVING FINAL PARCEL MAP NO. 20087, LOCATED AT THE SOUTHWEST

CORNER OF ONTARIO MILLS DRIVE AND FOURTH STREET

ATTACHMENT:

Parcel Map 20087^01 EXH A.pdf

ATTACHMENT:

Parcel Map 20087^02^RESO^RM

5. A CONSTRUCTION CONTRACT WITH RESOURCE ENVIRONMENTAL, INC. FOR THE DEMOLITION OF THE BUILDINGS AT 404 N. EUCLID AVE. AND CONSTRUCTION OF A NEW "D BLOCK" TEMPORARY SURFACE PARKING LOT

ATTACHMENT:

Construction Contract - Environmental Resource.pdf

6. PROFESSIONAL SERVICES AGREEMENTS FOR ON-CALL CONSULTING SERVICES

THE INVESTMENT OF INACTIVE FUNDS IN THE LOCAL AGENCY INVESTMENT FUND OF THE CALIFORNIA STATE TREASURY AND HEREBY RESCINDING RESOLUTION NO. 2022-157.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AUTHORIZING THE INVESTMENT OF CITY FUNDS AND HEREBY RESCINDING RESOLUTION NO. 2022-158.

That the City Council adopt a Resolution approving Final Parcel Map No. 20087 located at the southwest corner of Ontario Mills Drive and Fourth Street.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FINAL PARCEL MAP NO. 20087, LOCATED AT THE SOUTHWEST CORNER OF ONTARIO MILLS DRIVE AND FOURTH STREET.

That the City Council take the following actions:

A
.

Authorize the City Manager or his designee to execute Construction Contract No.

D&C23-002 404 N. Euclid Demolition with Resource Environmental, Inc., of Cerritos, California, for the demolition of 404 N. Euclid Ave and the construction of a temporary surface parking lot in the amount of $1,639,000;
B
.

Authorize a 15% contingency of $245,850 to address any unforeseen issues that may arise during the demolition and construction for a total contract amount not-to-exceed $1,884,850; and
C
.

Authorize the City Manager or his designee to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts and ﬁling a notice of completion at the conclusion of all construction related activities.

ATTACHMENT:

20231205 Professional Services Agreement_EPIC^01

ATTACHMENT:

20231205 Professional Services Agreement_Interwest^02

ATTACHMENT:

20231205 Professional Services Agreement_Monument^03

ATTACHMENT:

20231205 Professional Services Agreement_OPC^04

ATTACHMENT:

20231205 Professional Services Agreement_Paragon^05

ATTACHMENT:

20231205 Professional Services Agreement_BRI^06

ATTACHMENT:

20231205 Professional Services Agreement_BTI^07

ATTACHMENT:

20231205 Professional Services Agreement_CBRE^08

ATTACHMENT:

20231205
Professional Services Agreement_Hendrickson^09

ATTACHMENT:

20231205 Professional Services Agreement_Integra^10

ATTACHMENT:

20231205 Professional Services Agreement_Riggs&Riggs^11

ATTACHMENT:

20231205 Professional Services Agreement_Thompson&Thompson^12

ATTACHMENT:

20231205 Professional Services Agreement_EXP^13

ATTACHMENT:

20231205 Professional Services Agreement_HR Green^14

ATTACHMENT:

20231205 Professional Services Agreement_IMEG^15

ATTACHMENT:

20231205 Professional Services Agreement_KOA^16

ATTACHMENT:

20231205 Professional Services Agreement_MarkThomas^17

ATTACHMENT:

20231205 Professional Services Agreement_MichaelBaker^18

ATTACHMENT:

20231205 Professional Services Agreement_Psomas^19

ATTACHMENT:

20231205 Professional Services Agreement_TKE^20

ATTACHMENT:

20231205 Professional Services Agreement_Transtech^21

ATTACHMENT:

20231205 Professional Services Agreement_WoodRodgers^22

ATTACHMENT:

20231205 Professional Services Agreement_Citadel^23

ATTACHMENT:

20231205 Professional Services Agreement_Converse^24

ATTACHMENT:

20231205 Professional Services Agreement_DeltaGroup^25

ATTACHMENT:

20231205 Professional Services Agreement_Dudek^26

ATTACHMENT:

20231205 Professional Services Agreement_Kleinfelder^27

ATTACHMENT:

20231205 Professional Services Agreement_UES^28

7. A PROFESSIONAL SERVICES AGREEMENT WITH FREEDOM AUTOMATION INC. FOR

SUPERVISORY CONTROL AND DATA ACQUISITION COMPUTER PROGRAMMING AND

MAINTENANCE SERVICES

ATTACHMENT:

20231205 Freedom Automation AGMT
ten engineering and land surveying ﬁrms, and six environmental ﬁrms; and authorize the City Manager or designee to extend the agreements for up to two additional one-year periods. In no event shall the proposed Agreement, with each ﬁrm, exceed $500,000 over a three-year period with an allocation of $166,000 per year.

That the City Council approve and authorize the City Manager, or his designee, to execute a Professional Services Agreement with Freedom Automation Inc., of Oceanside, California, for the City’s Supervisory Control and Data Acquisition (SCADA) computer programming and maintenance services in the amount of $200,000 for Fiscal Year 2023-24, and authorize the cost of $200,000 per Fiscal Year (2024-25 to 2027-28) for a total not-to-exceed amount of $1,000,000, with an initial term from December 5, 2023 to June 30, 2024, with the option to extend the Agreement for up to four consecutive one year periods, at the set pricing levels per Bid No. 1676.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 5

8. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH CALTEK TECHNOLOGIES, INC. FOR THE 208 EMPORIA 2ND FLOOR OFFICE RENOVATION PROJECT

ATTACHMENT:

Model Amendment (non-construction contract) letterhead.pdf

9. A ZONE CHANGE REQUEST (FILE NO. PZC23-003) FOR VARIOUS PROPERTIES THROUGHOUT

THE CITY

ATTACHMENT:

File Nos. PGPA23-001 PZC23-003^06^ORD-ZC^RM

10. A RESOLUTION APPROVING THE FILING OF AN APPLICATION FOR GRANT FUNDS FOR

OUTDOOR EQUITY GRANTS PROGRAM
That the City Council take the following actions:

A
.

Authorize the City Manager or his designee to execute Amendment No. 3 to the Professional Services Agreement with CalTek Technologies, of Ontario, California, for the 208 Emporia 2nd Floor Oﬃce Renovation Project in the amount of $13,972 for a total not-to-exceed contract amount of $163,972; and
B
.

Authorize the City Manager or his designee to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts, and ﬁling a notice of completion at the conclusion of all construction related activities.

That the City Council consider and adopt a
n Ordinance approving a Zone Change application
(File No. PZC23-003) to rezone: [1] 3.8 acres of land from HDR-45 (High-Density Residential,

25.1-45 dus/acre) to MU-1 (Downtown Mixed Use) located north of D Street, south of E Street, and to the west of Laurel Street; [2] 9.8 acres of land from BP (Business Park) to MU-6 (East Holt Mixed Use) located on the north side of Holt Boulevard, 800 feet east of Imperial Street; and [3] 5.75 acres of land from OL (Low-Intensity Oﬃce) to MU-1 (Downtown Mixed Use) located on the southwest corner of Sultana Avenue and D Street.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PZC-23-003, A ZONE CHANGE REQUEST TO AMEND THE OFFICIAL ZONING MAP: [1] REZONING 3.8 ACRES OF LAND FROM HDR-45 (HIGH-DENSITY RESIDENTIAL) TO MU-1 (DOWNTOWN MIXED USE), [2] REZONING OF 9.8 ACRES OF LAND FROM BP (BUSINESS PARK) TO MU-6 (EAST HOLT MIXED USE), AND [3] REZONING 5.75 ACRES OF LAND FROM OL (LOW- INTENSITY OFFICE) TO MU-1 (DOWNTOWN MIXED USE), AND MAKING FINDINGS IN SUPPORT THEREOF - APNS: 0110-072-25, 0110-081-06, 0110-081-07, 1048-344-03, 1048-353-04, 1048- 353-05, 1048-353-09, 1048-353-13, 1048-353-14, 1048-541-15, 1048-576-01, AND 1048-576-02.

That the City Council take the following actions:

A
.

Adopt a Resolution approving the ﬁling of an application for grant funds through the Outdoor Equity Grants Program;
B
.

Authorize the City Manager, or his designee, to execute any documents or agreements needed to complete the application and implement the grant; and CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 6

ATTACHMENT:

Resolution-Application for Grant funds for Outdoor Equity Grants Program-12-5-23.docx

11. AN AMENDMENT TO SECTION 5.03.363, "SHORT TERM RENTALS," OF DIVISION 5.03 OF CHAPTER 5 OF THE ONTARIO DEVELOPMENT CODE, UPDATING REGULATIONS FOR THE

SHORT-TERM RENTAL OF PROPERTY IN THE CITY

ATTACHMENT:

Short Term Rental ORD^RM

12. AN AMENDMENT TO THE ON-CALL MAINTENANCE SERVICES AGREEMENT WITH WESTERN

ALLIED CORPORATION FOR VARIOUS ONTARIO POLICE DEPARTMENT TENANT

IMPROVEMENT PROJECTS

ATTACHMENT:

Western Allied Contract Amendment No. 1 AA2 letterhead.pdf

13. A CONSTRUCTION CONTRACT WITH MC ELECTRIC FOR THE PARKS POLE REPLACEMENT

PROJECT
C
.

If awarded, accept funding of $100,000 provided by the Outdoor Equity Grants Program.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING THE APPLICATION FOR OUTDOOR EQUITY GRANTS PROGRAM GRANT FUNDS.

Tha
t the City Council adopt an Ordinance amending subsections C, D, E, F, I, J and K of Section

5.03.363 of the Ontario Development Code, relating to regulations of short-term rentals.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING SECTION 5.03.363, “SHORT TERM RENTALS,” OF DIVISION 5.03 OF CHAPTER 5 OF THE ONTARIO

DEVELOPMENT CODE, UPDATING REGULATIONS FOR THE SHORT-TERM RENTAL OF PROPERTY IN THE CITY.

That the City Council take the following actions:

A
.

Authorize the City Manager or his designee to execute Amendment No. 1 to the On-Call Maintenance Services Agreement with Western Allied Corporation, of Santa Fe Springs, California, for Ontario Police Department (OPD) Tenant Improvement Projects in the amount of $135,000 for a total not-to-exceed contract amount of $1,560,000; and B
.

Authorize the City Manager or his designee to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts, and ﬁling a notice of completion at the conclusion of all construction related activities.

That the City Council take the following actions:

A
.

Authorize the City Manager or his designee to execute a Construction Contract with MC Electric, of Chino, California, for the Parks Pole Replacement Project in the amount of $984,300;
B
.

Authorize a 10% contingency of $98,430 to address any unforeseen issues that may arise during construction, for a total contract amount not-to-exceed $1,082,730; and CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 7

ATTACHMENT:

MC Electric Construction Contract.pdf

14. ADOPT A RESOLUTION TO CONFIRM THE APPOINTMENT OF A NEW FIRE CHIEF

ATTACHMENT:

Fire_Chief_Salary_Approval_RESO_RM.docx

15. A PUBLIC HEARING TO CONSIDER A MILLS ACT CONTRACT (PRESERVATION AGREEMENT), FILE NO. PHP23-007, FOR A DESIGNATED HISTORIC PROPERTY

ATTACHMENT:

File No. PHP23-007^01 PC Back-up.pdf

ATTACHMENT:

File No. PHP23-007 Mills Act^02^RESO^RM

ATTACHMENT:

File No. PHP23-007^03 Contract 311 W H St

16. A PUBLIC HEARING REGARDING AN ECONOMIC DEVELOPMENT SUBSIDY REPORT,

RESOLUTION, AND OPERATING COVENANT AGREEMENT BETWEEN THE CITY OF ONTARIO AND HOME DEPOT U.S.A., INC.

C
.

That the City Council a
dopt a Resolution conﬁrming the appointment of a new Fire Chief at a salary range consistent with range EX 9.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, TO CONFIRM THE APPOINTMENT OF FIRE CHIEF.

PUBLIC HEARINGS

Pursuant to Government Code Section 65009, if you challenge the City’s zoning, planning or any other decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the public hearing. Aﬃdavits of posting compliance, for all items below, are on file with the Records Management Department.

That the City Council consider and adopt a Resolution approving and authorizing the City Manager or designee to enter into a Mills Act Contract (Preservation Agreement), for the designated historic property
located at 311 West H Street (APN: 1048-271-09), Michael Kerby and Cynthia L. Kerby.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PHP23-007, AND AUTHORIZING THE CITY OF ONTARIO TO ENTER INTO A HISTORIC

PROPERTY PRESERVATION AGREEMENT (MILLS ACT CONTRACT) WITH MICHAEL KERBY AND CYNTHIA L. KERBY, FOR THE PROPERTY LOCATED AT 311 WEST H STREET (APN: 1048-271-09).

That the City Council take the following actions:

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 8

ATTACHMENT:

Home Depot SDC^01^RESO^RM

ATTACHMENT:

Home Depot SCD- Subsidy Report^02

ATTACHMENT:

Home Depot SCD - OCA Final^03
A
.

Adopt a Resolution accepting the Economic Development Subsidy Report prepared pursuant to Government Code Section 53083.1 regarding an Operating Covenant Agreement with
Home Depot U.S.A., Inc.
;
B
.

Adopt a Resolution approving the Operating Covenant Agreement and authorizing the City Manager or his designee to execute the Agreement; and C
.

Direct City Staﬀ to ﬁle a Notice of Exemption based upon the City Council’s ﬁnding that the impacts for this Agreement is not a project and subject to environmental review and that there is no possibility that the activity in question may have a signiﬁcant eﬀect on the environment.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ACCEPTING THE

ECONOMIC DEVELOPMENT SUBSIDY REPORT PREPARED PURSUANT TO GOVERNMENT CODE SECTION 53083 REGARDING AN OPERATING COVENANT AGREEMENT BY AND BETWEEN THE CITY OF ONTARIO AND HOME DEPOT U.S.A., INC.

STAFF MATTERS

City Manager Ochoa

COUNCIL MATTERS

Mayor Leon
Mayor pro Tem Dorst-Porada
Council Member Wapner
Council Member Bowman
Council Member Valencia

ADJOURNMENT
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 9

ONTARIO CITY COUNCIL/

ONTARIO HOUSING AUTHORITY

MINUTES
NOVEMBER 7, 2023
(Not Official Until Approved)
(Not Official Until Approved)
(Not Official Until Approved)

JOINT MEETINGS

The regular meetings of the Ontario City Council and the Housing Authority were held on Tuesday, November 7, 2023 at Ontario City Hall, 303 E. B Street Ontario, California.

CALL TO ORDER

Mayor Leon called the joint meetings to order at 5:31 p.m.

ROLL CALL

PRESENT: Mayor/Chairman: Paul S. Leon
Mayor pro Tem/Vice Chair: Debra Dorst-Porada
Council/Authority Members: Alan D. Wapner, Jim W. Bowman, and Ruben Valencia.

ABSENT: Council/Authority Members: None.

Also present were City Manager / Executive Director Scott Ochoa, City Attorney/Legal Counsel Ruben Duran, and City Clerk / Secretary Sheila Mautz.

CLOSED SESSION

Mayor Leon inquired whether persons were present who wished to speak to the Closed Session items. Hearing no one, City Attorney Duran announced the matters for discussion as listed on the agenda and recessed to Closed Session at 5:32 p.m. for discussion of the following:

 GC 54956.9 (d)(1), CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION City of Ontario v. Ashish Kumar Patel

 GC 54956.9(d)(1), CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Chino Basin Municipal Water District v. City of Chino et al., San Bernardino Superior Court Case No. RCVRS 51010, 4th District Appellate Case Nos. E079052, E080533, E080457

OPEN MEETING CALLED TO ORDER

Mayor Leon reconvened the meetings at 6:32 p.m. for the regular session.

10 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 7, 2023

Page 2 of 9 ends

PLEDGE OF ALLEGIANCE

The Pledge of Allegiance was led by Council Member Wapner.

INVOCATION

The invocation was led by Pastor Martin Chavez, First Fundamental Bible Church Ontario.

REPORT ON CLOSED SESSION

City Attorney Duran stated there was no reportable action.

PUBLIC COMMENTS

Assistant City Clerk Isbell announced there were two written public comments:

Toni Limas, regarding implementation of AB 2953.

Amanda Coker, upcoming events with the Chino Basin Water Conservation District.

Mayor Leon called upon the first speaker:

Silvano and Kamal Rosas, announced the grand opening of their restaurant located at 112 W. B Street.

Rebecca Arroyo, not present when called upon.

William Mercado, announced upcoming events with the Chino Basin Water Conservation District.

Chris Robles, regarding crime near 4th and Vineyard.

Lucia Robels, regarding crime near 4th and Vineyard.

Mario Huante, spoke regarding the U.S. and Arizona State Constitution.

Jesse Fonseca, spoke on airplane noise.

AGENDA REVIEW/ANNOUNCEMENTS

City Manager Ochoa made no announcements.

INFORMATION RELATIVE TO POSSIBLE CONFLICTS OF INTEREST

There were no conflicts of interest announced by the City Council.

CONSENT CALENDAR

ITEM PULLED FROM CONSENT CALLENDAR: Mayor pro Tem Dorst-Porada pulled Item No. 10 from the Consent Calendar for a separate vote. 11 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 7, 2023

Page 3 of 9 ends

Virginia Shannon, spoke in opposition of Item No. 16.

Terry Weatherby, spoke in opposition of Item No. 16.

Chris Robles, spoke in support of Item No. 17.

MOTION: Moved by Mayor pro Tem Dorst-Porada seconded by Council Member Bowman and carried by a unanimous vote 5-0, to approve the Consent Calendar as presented with the exception of Item No. 10.

1. APPROVAL OF MINUTES

Approved minutes for the regular meetings of the City Council and Housing Authority of October 3, 2023, approving the same as on file in the Records Management Department.

2. BILLS & PAYROLL

Approved bills September 29, 2023 through October 19, 2023 in the amount of $36,271,424.06, and Payroll September 24, 2023 through October 7, 2023 in the amount of $4,955,655.40.

3. A RESOLUTION ORDERING THE SUMMARY VACATION OF AN EASEMENT

FOR PUBLIC UTILITY PURPOSES LOCATED AT THE SOUTHEAST CORNER OF EUCLID AVENUE AND EAST D STREET.

The City Council adopted a Resolution ordering the summary vacation of an easement for public utility purposes located at the southeast corner of Euclid Avenue and East D Street.

RESOLUTION No. 2023-146 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, ORDERING THE SUMMARY VACATION OF

AN EASEMENT FOR PUBLIC UTILITY PURPOSES LOCATED AT THE

SOUTHEAST CORNER OF EUCLID AVENUE AND EAST D STREET

4. AN AMENDMENT TO THE AGREEMENT WITH CONVERGINT TECHNOLOGY,

LLC, FOR THE SUPPORT OF SECURITY CAMERAS, DOOR ACCESS
SYSTEMS AND CITY FACILITY EMERGENCY NOTIFICATIONS.

The City Council authorized the City Manager or his designee to execute Amendment No. 1 to the current Agreement with Convergint Technology, LLC, of Anaheim, California, to include the CCTV Intersection Camera Installation, Citywide Camera Refresh and Expansion, and the City Facilities Notification, Emergency, and Overhead Paging System projects in the amount not-to-exceed $3,551,364.

12 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 7, 2023

Page 4 of 9 ends

5. FISCAL YEAR 2023-24 FIRST QUARTER BUDGET UPDATE REPORT

The City Council approved the budget adjustments and recommendations as presented in the Fiscal Year 2023-24 First Quarter Budget Update Report.

6. AN AMENDMENT TO THE DESIGN SERVICES AGREEMENT WITH ROBERT

BORDERS AND ASSOCIATES FOR ON-CALL ARCHITECTURAL DESIGN

SERVICES FOR THE ARMSTRONG COMMUNITY CENTER ROOF

RESTORATION PROJECT

The City Council took the following actions:

A. Authorized the City Manager or his designee to execute Amendment No. 18 to the Design Services Agreement with Robert Borders and Associates, of Costa Mesa, California, for the Armstrong Community Center Roof Restoration Project in the amount of $40,303 for a not-to-exceed contract amount of $622,842; and
B. Authorized the City Manager or his designee to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts, and filing a notice of completion at the conclusion of all construction related activities.

7. APPROVE WEST COAST LIGHTS AND SIRENS, INC. AS AN AUTHORIZED

SUPPLIER AND AWARD A GOODS & SERVICES AGREEMENT FOR FLEET

VEHICLE EQUIPPING

The City Council took the following actions:

A. Approved West Coast Lights and Sirens, Inc., of Riverside, California, as an authorized supplier for current and future purchases and installation of electronics and equipment associated with the routine replacement of City fleet vehicles; and
B. Authorized the City Manager or his designee to execute a Goods and Services Agreement with West Coast Lights and Sirens, Inc., of Riverside, California, for fleet vehicle equipping for a total not-to-exceed contract amount of $2,250,000 over a three-year term.

8. APPROVAL OF PRE-AUTHORIZED SUPPLIERS TO PROVIDE SERVICES AND

PARTS FOR SPECIALIZED FLEET AND EQUIPMENT

The City Council took the following actions:

A. Approved pre-authorized suppliers to provide parts and maintenance services for specialized fleet and equipment; and
B. Authorized the City Manager or his designee to execute contracts with each vendor for no more than the listed not-to-exceed contract amounts. 13 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 7, 2023

Page 5 of 9 ends

9. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH PLACEWORKS, INC., TO PROVIDE ENVIRONMENTAL CONSULTING
SERVICES FOR PHASE 2 OF THE ONTARIO PLAN (TOP) 2050 UPDATE

The City Council approved and authorized the City Manager or designee to execute Amendment No. 4 to a Professional Services Agreement with PlaceWorks, Inc. of Santa Ana, to increase project funding by $1,625,701, for a total authorized expenditure amount of $4,935,701, to prepare the Ontario Regional Sports Complex (ORSC) Subsequent Environmental Impact Report (SEIR).

11. THE EUCLID WALNUT PLANNED UNIT DEVELOPMENT (FILE NO. PUD22-004)

TO ESTABLISH DEVELOPMENT STANDARDS AND DESIGN GUIDELINES FOR A 10.6-ACRE PROJECT SITE LOCATED AT THE NORTHWEST CORNER OF

EUCLID AVENUE AND WALNUT STREET

The City Council adopted an Ordinance approving the Euclid Walnut Planned Unit Development (File No. PUD22-004). Introduction and first reading took place at a regular meeting on October 17, 2023.

ORDINANCE NO. 3262 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADOPTING FILE NO. PUD22-004, THE EUCLID

WALNUT PLANNED UNIT DEVELOPMENT, ESTABLISHING DEVELOPMENT STANDARDS AND DESIGN GUIDELINES FOR A 10.6-ACRE PROJECT SITE

GENERALLY LOCATED AT THE NORTHWEST CORNER OF EUCLID AVENUE

AND WALNUT STREET, AND MAKING FINDINGS IN SUPPORT THEREOF - APNS: 1051-271-67, 1051-271-06, AND 1051-271-66.

12. ACCEPT AND APPROVE LAW ENFORCEMENT EQUIPMENT GRANT
PROGRAM ADDITIONAL AWARD FOR FISCAL YEAR 2022-23

The City Council authorized the City Manager or his designee to execute all documents necessary to accept and approve the Citizen's Option for Public Safety (COPS) / Enhancing Law Enforcement Activities Subaccount (ELEAS) Grant for Fiscal Year 2022-23 in the amount of $277,260.

13. ACCEPTANCE OF GRANT AWARD FROM THE U. S. DEPARTMENT OF

HOMELAND SECURITY AND THE CALIFORNIA OFFICE OF EMERGENCY SERVICES PROVIDED THROUGH THE FISCAL YEAR 2022 URBAN AREA

SECURITY INITIATIVE (UASI) GRANT PROGRAM

The City Council authorized the City Manager or his designee to execute all documents necessary to accept a three-year sub-grant award in the amount of $600,000 from the U.S. Department of Homeland Security and the California Oﬃce of Emergency Services provided through the Fiscal Year 2022 UASI Grant Program.

14 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 7, 2023

Page 6 of 9 ends

14. AUTHORIZE A SOLE SOURCE PURCHASE OF A PUBLIC SAFETY VEHICLE FROM LDV INC.

The City Council approved and authorized the City Manager or his designee to execute all documents necessary for the sole source purchase of a Public Safety Vehicle from LDV Inc., of Burlington, Wisconsin, in the amount of $500,030.

15. ACCEPTANCE OF STATE OF CALIFORNIA HOMELESS HOUSING, ASSISTANCE AND PREVENTION ROUND 3 (HHAP-3) FUNDING

ADMINISTERED BY THE COUNTY OF SAN BERNARDINO TO RAPIDLY

REHOUSE HOMELESS FAMILIES AND INDIVIDUALS

The City Council accepted $135,000 in HHAP-3 funding to provide eight households that are homeless in the west valley of San Bernardino County with move-in costs and up to six months’ rent assistance and services to stabilize their housing.

16. A RESOLUTION OF INTENTION TO RENEW THE DOWNTOWN ONTARIO

COMMUNITY BENEFIT DISTRICT AND TO LEVY AND COLLECT

ASSESSMENTS WITHIN DISTRICT

The City Council took the following actions:

A. Adopted a Resolution of Intention to renew the Downtown Ontario Community Benefit District and to levy and collect assessments within such District pursuant to California Streets and Highways Code 36600; B. Directed Staﬀ to mail the notice of public hearing and assessment ballots to all aﬀected property owners within the proposed district boundaries.

RESOLUTION NO. 2023-147 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA STATING ITS INTENTION TO RENEW THE

DOWNTOWN ONTARIO COMMUNITY BENEFIT DISTRICT AND TO LEVY AND

COLLECT ASSESSMENTS WITHIN SUCH DISTRICT PURSUANT TO THE

ESTABLISHMENT OF PROPERTY BUSINESS IMPROVEMENT DISTRICTS, SECTION 36600 OF THE CALIFORNIA STREETS AND HIGHWAY CODE, AND APPOINTING A TIME AND PLACE FOR HEARING OBJECTIONS THERETO.

17. UPDATED LEGISLATIVE PLATFORMS

The Council approved the 2024 State and Federal Legislative Platforms.

ITEM PULLED FROM CONSENT CALENDAR

10. AN AMENDMENT TO THE DESIGN SERVICES AGREEMENT WITH RJM

DESIGN GROUP FOR ON-CALL LANDSCAPE ARCHITECTURAL SERVICES

FOR THE ONTARIO MILLS LANDSCAPE DESIGN
15 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 7, 2023

Page 7 of 9 ends

The City Council tabled Amendment No. 5 to the Design Services Agreement for Contract No. PM 1819-1 with RJM Design Group of San Juan Capistrano, California, to provide On-Call Landscape Architectural Services for the Ontario Mills Landscape Design Project in a total amount of $102,100 and a total not-to-exceed amount of $527,100.

Mayor pro Tem Dorst-Porada and Council Member Wapner expressed their opposition to the item. Council Member Wapner added he wanted language that held the Ontario Mills responsible. City Council discussed and agreed to table the item until terms were clarified.

ADMINISTRATIVE REPORTS/DISCUSSION/ACTION

18. A RESOLUTION AUTHORIZING THE ISSUANCE OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 56 (PARKSIDE/LA AVENIDA) SPECIAL TAX BONDS, SERIES 2023 AND RELATED MATTERS

The City Council took the following actions:

A. Considered and adopted a Resolution authorizing the issuance of City of Ontario Community Facilities District No. 56 (Parkside/La Avenida) Special Tax Bonds, Series 2023, in an aggregate principal amount of not-to-exceed $21 million, authorizing the execution and delivery of an indenture, a bond purchase agreement, a continuing disclosure agreement, a first amendment to acquisition and funding agreement, authorizing the distribution of an official statement and related actions;
B. Considered and adopted a Resolution of the City of Ontario making a declaration of oﬃcial intent to reimburse facilities expenditures with bond proceeds and related actions;
C. Authorized the issuance of special tax bonds for public improvements required to facilitate the development of the Parkside/La Avenida project and the Ontario Ranch development;
D. Approved the forms of the Indenture, the Bond Purchase Agreement, First Amendment to Acquisition and Funding Agreement; the Continuing Disclosure Agreement, and the Preliminary Official Statement; E. Authorized a negotiated sale of the special tax bonds to Samuel A. Ramirez & Co., in accordance with the terms of the Bond Purchase Agreement; and F. Authorized the execution of the Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement, a deemed final certification in connection with the Preliminary Oﬃcial Statement, a final Oﬃcial Statement and other documents in connection with the issuance of the bonds by the City Manager or the other specified authorized officers.

RESOLUTION NO. 2023-148 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, AUTHORIZING THE ISSUANCE OF CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 56 (PARKSIDE/LA AVENIDA) SPECIAL TAX BONDS, SERIES 2023, IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $21,000,000.00, AUTHORIZING THE EXECUTION AND 16 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 7, 2023

Page 8 of 9 ends

DELIVERY OF AN INDENTURE, A BOND PURCHASE AGREEMENT, AND A

CONTINUING DISCLOSURE AGREEMENT AND A FIRST AMENDMENT TO

ACQUISITION AND FUNDING AGREEMENT, AUTHORIZING THE
DISTRIBUTION OF AN OFFICIAL STATEMENT AND RELATED ACTIONS.

RESOLUTION NO. 2023-149 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, MAKING A DECLARATION OF OFFICIAL

INTENT TO REIMBURSE FACILITIES EXPENDITURES WITH BOND PROCEEDS AND RELATED ACTIONS.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Bowman seconded by Mayor pro Tem Dorst- Porada and carried by a unanimous vote 5-0, to adopt Resolution Nos. 2023-148 and 2023-149.

STAFF MATTERS

City Manager Ochoa made no announcements.

COUNCIL MATTERS

Mayor pro Tem Dorst-Porada acknowledged Staff’s work at the Ontario Museum of History and Art and announced upcoming community events.

Council Member Wapner made no comments.

Council Member Bowman made no comments.

Council Member Valencia offered resources for individuals experiencing loneliness and mental stress during the holidays.

ADJOURNMENT

Mayor Leon adjourned the meetings of the Joint Agencies at 7:33 p.m. in memory of Commissioner John Machado, and announced the next regular meeting was scheduled for November 21, 2023.

17 Ontario City Council/Ontario Housing
Regular Meeting Minutes – November 7, 2023

Page 9 of 9 ends

Respectfully submitted,

___________________________________

SHEILA MAUTZ, CITY CLERK/SECRETARY

APPROVED:

_____________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
18 Department: Financial Services
Prepared By: William B Quan
Staff Member Presenting:

Armen Harkalyan, Executive Director of Finance
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 3
SUBJECT:

RESOLUTIONS UPDATING AUTHORIZED DEPUTY CITY TREASURERS AND

UPDATED INVESTMENT POLICY

CITY OF ONTARIO
Agenda Report
December
5, 2023
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT:

There is no direct ﬁscal impact associated with these updates to the authorized Deputy City Treasurers and Investment Policy.

BACKGROUND & ANALYSIS:

Recent staﬀ movements have necessitated the need to update Resolutions identifying those individuals authorized to invest City funds and to transact with LAIF.

All other Resolution provisions remain unchanged to ensure continuity in the City Treasury management operations. The authorized individuals will be as follows: City Treasurer, Executive Director of Finance, Departmental Administrator (Financial Services Agency), Chief Investment Officer, and the Investments and Treasury Officer.

Section 53646(a) (2) of the California Government Code states that the Treasurer or Chief Fiscal Oﬃcer of a local agency may annually render to the legislative body of that local agency, a Statement of Investment Policy, which the legislative body of the local agency shall consider at a public meeting. Any change in the policy shall also be considered by the legislative body of the local agency at a public meeting.

The current Investment Policy was approved on December 6, 2022. One update is recommended at this time. Section III (Delegation of Authority) of the Investment Policy is updated to reﬂect change of the responsibility for the day-to-day investment of the City’s funds is delegated to the Chief Investment Oﬃcer instead of the Investment Oﬃcer. No other changes to the Investment Policy are being proposed. The updated Investment Policy is attached as Exhibit A. 19 December 5, 2023
City of Ontario
303 East B Street
Ontario, CA 91764
909-395-2000
www.ontarioca.gov

I N V E S T M E N T P O L I C Y
20 Investment Policy Statement
page 1
City of Ontario
Investment Policy Statement

TABLE OF CONTENTS
1 Purpose …........................................................................................................................ 2 2 Scope .….......................................................................................................................... 2 3 Delegation of Authority …...........................................….................................................. 2 4 Prudence …............................................…...................................................................... 3 5 Investment Objectives …............................................…................................................. 3 6 Ethics and Conflicts of Interest …................................................................................... 4 7 Internal Controls ….............................................….......................................................... 4 8 Safekeeping of Securities …............................................…............................................. 4 9 Reporting ….............................................…..................................................................... 5 10 Qualified Dealers ….............................................…......................................................... 5 11 Competitive Bidding …..............................................….................................................... 6 12 Purchase and Sale of Securities …............................….................................................. 6 13 Policy Review …..............................................…............................................................. 6 14 Diversification ….............................................….............................................................. 6 15 Maximum Maturities …..............................................….................................................... 6 16 Table of Authorized Investments …....................................….......................................... 8 17 Description of Authorized Investments …...............................…..................................... 9 18 Investment Pools/Mutual Funds …........................................…....................................... 12 19 Collateralization ….............................................…........................................................... 12 20 Ineligible Investments ….............................................….................................................. 13 21 Glossary of Investments Terms …............................................…................................... 14 APPENDIX A – List of Resolutions for Investment of Inactive Funds in LAIF…..................... 22 APPENDIX B – List of Resolutions for Investment of City Funds ........................................... 23 21 Investment Policy Statement
page 2

CITY OF ONTARIO

INVESTMENT POLICY STATEMENT

1. PURPOSE
This statement is intended to: (a) describe the policies and procedures utilized in the City’s investment management system; (b) put in place guidelines for the prudent investment of the City’s funds, and (c) list and describe suitable investments.

The goals of the City’s investment policy and investment management function are enhancement of the economic status of the City and protection of the City’s funds.

The investment policies and practices of the City of Ontario are based upon federal and state law and prudent money management principles. The primary goals of these policies are:

A. To assure compliance with all laws governing the investments under the control of the City Treasurer.

B. To protect the principal monies entrusted to this office.

C. To generate the maximum amount of investment income consistent with the parameters established in this Statement of Investment Policy.

2. SCOPE
This investment policy applies to all monies belonging to the City of Ontario, and proceeds from bonds or notes issued by the City of Ontario and any authorized special districts. Bond proceeds and any funds associated with bond issues and other monies arising from bond indebtedness are further restricted by the pertinent bond indenture. Funds described above are accounted for in the City’s Annual Comprehensive Financial Report.

The City will comply with all applicable sections of the Internal Revenue Code of 1986, Arbitrage Rebate Regulations and bond covenants with regards to the investment of bond proceeds.

All monies entrusted to the City Treasurer will be pooled in an actively managed portfolio and will be referred to as the “fund” or the “portfolio” throughout the remainder of this document.

3. DELEGATION OF AUTHORITY
In accordance with State law (see California Government Code Sec. 53607) and under the authority granted by the City Council (refer to appendix A and B for list of resolutions), the City Treasurer and Deputy City Treasurer(s) are authorized to invest the unexpended cash in the City treasury. The responsibility for the day-to-day investment of the City’s funds is delegated to the Chief Investment Officer. In the absence of the Chief Investment Officer, the Deputy City Treasurers will be responsible for the investment function. 22 Investment Policy Statement
page 3
The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

4. PRUDENCE
Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs; not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used by investment officials shall be the “prudent investor” standard (California Government Code Section 53600.3) and shall be applied in the context of managing an overall portfolio.

Investment officers, acting in accordance with written procedures and the investment policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

5. INVESTMENT OBJECTIVES
A. Safety of Principal
Safety of principal is the foremost objective of the investment policies and practices of the City of Ontario. Investment decisions shall seek to minimize net capital losses on a portfolio basis. This policy recognizes that market conditions may warrant the sale of individual securities incurring losses in order to protect against further and more substantial capital losses. The intent of this policy is to ensure that capital losses are minimized on a portfolio level rather than on each transaction. The City shall seek to preserve principal by mitigating credit risk and market risk.
1) Credit Risk – Defined as the risk of loss due to failure or insolvency of an issuer; shall be mitigated by diversifying the fund so that the failure of any one issuer would not unduly harm the City’s cash flow. No more than 5% of the portfolio may be invested (at time of purchase) in the securities of any one single issuer except the U.S. Government, its agencies, supranational organizations, or the State of California Local Agency Investment Fund.
2) Market Risk – Defined as the risk of market value fluctuations due to changes in the general level of interest rates. Because longer maturity fixed-income securities have greater market risk than shorter maturity securities, market risk will be mitigated by limiting the weighted average maturity of the fund to 2 ½ years. It is explicitly recognized that in an active portfolio, occasional losses are inevitable and must be considered within the context of the overall investment return.
23 Investment Policy Statement
page 4
B. Liquidity
The City’s fund will be structured to ensure that the projected expenditure requirements of the City for the next six months can be met with a combination of anticipated revenues, maturing securities, principal and interest payments and liquid instruments as required by California Government Code Section 53646.

C. Performance Measurement (Yield)
The performance of the City’s investment portfolio will be measured on a total return basis.

The portfolio’s performance will be measured against a benchmark of the ICE BofAML1-3 year Treasury Index. The index’s returns are reported monthly on the City’s current portfolio report.

6. ETHICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as custodians of the public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation.

Thus employees and officials involved in the investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials shall disclose to the Investment Officer any material interests in financial institutions with which they conduct business, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the City.

7. INTERNAL CONTROLS
The City Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Periodically, as deemed appropriate by the City, an independent analysis by an external auditor shall be conducted to review internal controls, account activity and compliance with policies and procedures.

8. SAFEKEEPING OF SECURITIES
With the exception of insured Certificates of Deposit and the Local Agency Investment Fund of the State of California, all securities owned by the City, including collateral for repurchase 24 Investment Policy Statement
page 5
agreements, shall be held in safekeeping by the City’s custodial bank or a third-party bank trust department acting as agent for the City under terms of a custody or trustee agreement executed by the bank and the City. All securities will be received and delivered using standard delivery versus payment (DVP) procedures and in accordance with State Code.

9. REPORTING
The City Treasurer is required to submit an investment report on a quarterly basis to the City Manager, the Internal Auditor, and the City Council, in accordance with California Government Code, Section 53646. The report is required to be submitted within 30 days of the end of the quarter. The City Treasurer has elected to provide this report monthly. This report will include the following information:
 Type of investment instrument (i.e. Treasury Bill, CD)  Issuer name (i.e. US Treasury Note)
 Purchase date (trade and settlement date)
 Maturity date
 Par value
 Purchase price
 Current market value and source of valuation
 Overall portfolio yield based on cost.
 Statement of compliance of the portfolio to the investment policy or an explanation of the manner in which the portfolio is not in compliance.  Description of any of the City’s funds that are under the management of contracted parties.
 Statement denoting the ability of the City to meet its expenditure requirements for the next six months, or an explanation as to why sufficient money may not be available.

10.QUALIFIED DEALERS
The Chief Investment Officer or designee shall maintain a list of financial institutions qualified to do business with the City. Banks and broker/dealers will be selected on the basis of creditworthiness, experience, and capitalization. Prior to approval, they must read and sign the City’s Broker/Dealer Questionnaire and Certification. In accordance with California Government Code, Section 53601, a bank or broker/dealer must be qualified as a dealer regularly reporting to the New York Federal Reserve Bank (a “primary dealer”) to conduct repurchase agreements with the City.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the City may rely on the adviser for selection.

Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations 25 Investment Policy Statement
page 6
for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

11.COMPETITIVE BIDDING
It will be the policy of the City to transact all securities purchases and sales through a formal and competitive process requiring the solicitation and evaluation of at least three bids/offers whenever possible. The City will accept the offer, which provides (a) the highest rate of return; and (b) optimizes the investment objectives of the overall portfolio. On transactions where three bids/offers are not available, the Chief Investment Officer or designee shall make an evaluation regarding the relative attractiveness of various offer using factors such as maturity date, credit ratings, structure and other factors which influence pricing. It will be the responsibility of the City’s staff involved to produce and retain written records, including the name of the financial institutions solicited, price/rate quoted, description of the security, bid/offer selected, and any special considerations that had an impact on their decision.

12.PURCHASE AND SALE OF SECURITIES
Unless the services of an external investment adviser are used, purchases and sales of securities will be executed only by the Chief Investment Officer and in their absence the Deputy City Treasurer. All transactions will be reviewed and approved by the City Treasurer or their designee.

13.POLICY REVIEW
The City Treasurer shall annually render to the City Council an investment policy statement, which shall be considered at a public meeting. Any changes in the policy shall also be considered by the City Council at a public meeting.

14.DIVERSIFICATION
The City will diversify use of investment instructions to avoid unreasonable risks inherent in over-investing in specific instruments, individual financial institutions, or maturities. Market price volatility shall be controlled through maturity diversification, as well as ensuring adequate liquidity is available to meet cash flow requirements, thereby precluding the need to sell instruments at a market loss.

15.MAXIMUM MATURITIES
In accordance to California Government Code Section 53601, the City will not invest in any securities maturing more than five (5) years from the settlement date of purchase. If there is a desire to make investments longer than five years, express authority to make those 26 Investment Policy Statement
page 7
investments, either specifically or as part of an investment program, must be approved by the City Council no less than three months prior to the investment. 27 Investment Policy Statement
page 8

16.TABLE OF AUTHORIZED INVESTMENTS

INVESTMENT TYPE MAXIMUM

MATURITY
MAXIMUM SPECIFIED %

OF PORTFOLIO

MINIMUM QUALITY

REQUIREMENTS

CA GOVERNMENT

CODE SECTIONS
U.S. Treasury Obligations 5 years None None 53601(b)
U.S. Agency Obligations 5 years None, but no more than
20% in any one issuer None 53601(f)
Bankers' Acceptances 180 days 40% and no more than 5%
in any one single bank
Short-term debt rate "A-1" or
better by at least one
NRSRO, Long-term debt
rated "A" or better by at least
one NRSRO
53601(g)
Commercial Paper-Non Pooled Funds 270 days 15% and no more than 10% in any one issuer
Rate "A-1" or better by at
least two NRSRO and rated
"A" or better on long-term
debentures by a NRSRO
53601(h)(2)(c)
Commercial Paper-Pooled Funds 270 days 15% and no more than 10% in any one issuer
Rate "A-1" or better by at
least two NRSRO and rated
"A" or better on long-term
debentures by a NRSRO
53635(a)(1)
Negotiable Certificates of Deposit 5 years 30% Rate "A-1" or better by at least two NRSRO 53601(i)
Repurchase Agreements 1 year
None, but no more than
20% of the cost value of the
fund
Collateral rate shall be
valued at 102% or greater of
the value of the repurchase
agreement
53601(j)(1)(2)
Local Agency Investment Fund (LAIF) N/A None None 16429.1 Time Deposits (Non-Negotiable
Certificate of Deposit) 5 years 25% of the fund None 53630 et seq.

Medium-Term Notes 5 years
30% and no more than 15%
rated below "AA" by at least
two NRSRO; No more than
5% may be in any one
corporate name
Must have rate of "A" or
better by at least two
NRSRO, 30% max and no
more than 15% rated below
"AA" by at lease two
NRSRO; No more than 5%
may be in any one corporate
name
53601(k)
Collateralized Mortgage Obligations,
Mortgage-Backed or Other Pay-
Through Bond, Equipment Leased-
Backed Certificate (Asset-Backed
Securities), or Consumer Receivable-
Back Bond
5 years 20% of the fund Rate "AA" 53601(o)
California Local Agency Obligations 5 years None None 53601(e) California State Obligations 5 years None None 53601(d) Supranational Obligations 5 years 10% Rate "AA" or better by NRSRO 53601(q)
Mutual Funds N/A
20% and no more than 10%
of total portfolio in any one
mutual fund
Attain highest ranking by at
least two NRSROs or have
retained a registered
investment advisor
53601(l) 53601.6(b)
Money Market Mutual Funds N/A
20% and no more than 20%
of total portfolio in any one
money market mutual fund
Attain highest ranking by at
least two NRSROs or have
retained a registered
investment advisor
53601(l) 53601.6(b)
28 Investment Policy Statement
page 9

17.DESCRIPTION OF AUTHORIZED INVESTMENTS
A. The City’s Investment Portfolio is governed by California Government Code, Section 53600 et seq. Percentage holding limits listed in this section apply at the time the security is purchased. Within the context of these limitations, the following investments are authorized, as further limited herein:
1) United States Treasury Bills, Notes, and Bonds, or those securities for which the full faith and credit of the United States are pledged for payment of principal and interest. There is no limitation as to the percentage of the fund, which can be invested in this category.
2) Obligations—including U.S. Government Agency Mortgage pass-through securities- issued by various agencies of the Federal Government including, but not limited to, the Federal Farm Credit Bank System (FFCB), the Federal Home Loan Bank (FHLB), the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) as well as such agencies or enterprises which may be created. There is no percentage limitation on the dollar amount which can be invested in Agency issues in total, no more than 20% of the cost value of the portfolio may be invested in the securities of any one issuer. 3) Bills of exchange or time drafts drawn on and accepted by a commercial bank, commonly known as banker’s acceptances. Banker’s acceptances may not exceed 180 days to maturity. To be eligible for purchase, banker’s acceptances must have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 40% of the cost value of the portfolio may be invested in banker’s acceptances and no more than 5% of the cost value of the portfolio may be invested in banker’s acceptances of any single bank.
4) Commercial paper rated “A-1” or its equivalent by at least two NRSROs and issued by a domestic corporation having assets in excess of $500 million and having at least an “A” or its equivalent rating on its long-term debentures as provided by a NRSRO. Purchases of eligible commercial paper may not exceed 270 days maturity nor represent more than 10% of the outstanding paper on an issuing corporation.

Purchases of commercial paper may not exceed 15% of the portfolio, which may be invested pursuant to this section. An additional 15% or a total of 30% of the City’s money may be invested pursuant to this subdivision. The additional 15% may be so invested only if the dollar weighted average maturity of the entire amount does not exceed 31 days.
5) Negotiable certificates of deposit issued by a nationally or State chartered bank or a State or Federal savings institution, or a State licensed branch of a foreign bank (“Yankee”). Purchases of negotiable certificates of deposit may not exceed 30% of 29 Investment Policy Statement
page 10
the cost value of the portfolio. To be eligible for purchase by the City, the certificate of deposit must be rated “A-1” or its equivalent by at least two NRSROs. 6) Repurchase Agreements – The City may invest in repurchase agreements with primary dealers of the Federal Reserve Bank of New York with which the City has entered into a master repurchase agreement. The Public Securities Association master repurchase agreement is the “master repurchase agreement”. The maturity of repurchase agreements shall not exceed one year. The market value of securities used as collateral for repurchase agreements shall be valued at no less than 102% of the value of the repurchase agreement. Collateral pricing will be monitored no less than monthly by the investment staff and not be allowed to fall below 102% of the value of the repurchase agreement. In order to conform to provisions of the Federal Bankruptcy Code which provide for the liquidation of securities held as collateral for repurchase agreements, the only securities acceptable to the city as collateral shall be securities that are direct obligations of, or that are fully guaranteed as to principal and interest, by the United States or any agency thereof. Investments in repurchase agreements may not exceed 20% of the cost value of the fund. 7) Local Agency Investment Fund - The City may invest in the Local Agency Investment Fund (“LAIF”) established by the State Treasurer for the benefit of local agencies up to the maximum permitted under Section 16429.1 of the California Government Code.
8) Time Deposits – The City may invest in non-negotiable time deposits collateralized in accordance with the California Government Code, which meet the requirements for investment in negotiable certificates of deposit. The City may invest in insured certificates of deposit with individual depository institutions up to the insured limit.

No more than 25% of the fund may be invested in this category. 9) Medium-term notes of a maximum of five years maturity issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any State and operating within the United States.

The issuing corporation must have a minimum rating of “A” or its equivalent by at least two NRSROs and have in excess of $500 million in shareholder equity.

Purchase of medium-term notes may not exceed 30% of the cost value of the portfolio with no more than 15% of the cost value of the portfolio rated below “AA” or its equivalent by at least two NRSROs. No more than 5% of the portfolio (at time of purchase) may be invested in any one corporate name, including the parent corporation or subsidiaries.
10)Asset Backed Securities - Any collateralized mortgage obligations, mortgage- backed or other pay-through bond, equipment lease-backed certificate, or consumer receivable-backed bond. Securities eligible for investment under this section shall be rated in a rating category of “AA” by a nationally recognized statistical rating organization and have a maximum remaining maturity of 5 years or less. Purchase of securities authorized by this subdivision may not exceed 20% of the cost value of the portfolio.
30 Investment Policy Statement
page 11
11)Bonds, notes, warrants or other evidences of indebtedness of any local agency of this state, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. 12)Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled or operated by the state or by a department, board, agency or authority of the state.
13)Supranational Obligations - United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated "AA" or better by an NRSRO and shall not exceed 10 percent of the City's moneys that may be invested pursuant to this section.
14)Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
a) Mutual Funds that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
i. Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
ii. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million. iii. No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
b) Money Market Mutual Funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
i. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
31 Investment Policy Statement
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ii. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million. iii. No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
c) No more than 20% of the total portfolio may be invested in these securities.

B. In the event of a rating downgrade of security in the City’s portfolio by any of the applicable rating agencies (Standard and Poor’s or Moody’s) to a rating category below the minimum required for purchase, the Chief Investment Officer or designee will document such downgrade in writing. The Chief Investment Officer or designee will also communicate to the City Treasurer a recommended course of action for said security.

18.INVESTMENT POOLS/MUTUAL FUNDS
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Treasurer or their designee shall develop a questionnaire which will answer the following general questions:
 A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.  A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
 A schedule for receiving statements and portfolio listings.  A description of how the pool/fund utilizes reserves, retained earnings, etc.  A fee schedule, including when and how is it assessed.  The eligibility of the pool/fund to invest in bond proceeds and special district funds, and a description of its practices.

19.COLLATERALIZATION
Certificates of Deposit (CDs). The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security. 32 Investment Policy Statement
page 13
Collateralization of Bank Deposits. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

Repurchase Agreements. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:

1. The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.

2. Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.

3. The City shall receive monthly statements of collateral.

20.INELIGIBLE INVESTMENTS
Ineligible investments – investments not described herein-, are prohibited for purchase in the City’s portfolio. Specifically prohibited as of January 1, 1996 are: Inverse floaters, range notes, interest-only strips derived from a pool of mortgages, or any security that could result in zero interest accrual if held to maturity.
33 Investment Policy Statement
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21.GLOSSARY OF INVESTMENT TERMS
Agencies. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.

FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

Asset Backed Securities. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

Banker’s Acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

Basis Point. One one-hundredth of a percent (i.e., 0.01 percent) Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

Bond Equivalent Yield. The basis on which yields on notes and bonds are quoted.

Book Value (Cost Value). The purchase price of the security as recorded on the City’s books.

Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

California Debt & Investment Advisory Commission (CDIAC). The California Debt and Investment Advisory Commission (CDIAC) provides information, education and technical assistance on debt issuance and public fund investments to local public agencies and other public finance professionals. The Commission was created in 1981 with the passage of Chapter 1088, Statutes of 1981 (Assembly Bill (AB) 1192, Costa). This legislation established the California Debt Advisory Commission as the State's clearinghouse for 34 Investment Policy Statement
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public debt issuance information and required it to assist state and local agencies with the monitoring, issuance and management of public debt.

Callable. A callable security gives the issuer the option to call/redeem it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.

Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate.

Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

Collateralized Bank Deposit. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

Collateralized Time Deposit. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

Commercial Paper. The short-term unsecured debt of corporations.

Corporate Medium Term Note. A security issued by a corporation doing business in the U.S. with a maturity not to exceed five years.

Cost Value (Book Value). The purchase price of the security as recorded on the City’s books.

Coupon. The rate of return at which interest is paid on a bond.

Credit Risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

Debenture. A bond secured only by the general credit of the issuer. 35 Investment Policy Statement
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Delivery vs. Payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

Federal Deposit Insurance Corporation (FDIC).The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

Federal Open Market Committee (FOMC). Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of the bank credit and money.

Federally Insured Time Deposit. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.

Fiscal Agent. A financial institution which performs payment of principal and interest to bondholders, and certain administrative duties on the bond issuer’s behalf. 36 Investment Policy Statement
page 17
Liquidity. The speed and ease with which an asset can be converted to cash.

Local Agency Investment Fund (LAIF) . A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

Local Agency Investment Guidelines (LAIG). Published by CDIAC, these guidelines are intended to aid local officials in their efforts to implement existing laws pertaining to the investment of public funds. Each year, CDIAC staff convenes a working group of public- and private-sector professionals to support its efforts to revise and update these Guidelines Local Government Investment Pool. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
Margin. The difference between the market value of a security and the loan a broker makes using that security as collateral.

Market Risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

Market Value. The price at which a security can be traded.

Master Repurchase Agreement. A written contract covering all future transactions between the parties to repurchase-reverse repurchases agreements that establishes each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller borrower.

Maturity. The final date upon which the principal of a security becomes due and payable.

Medium Term Notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences. 37 Investment Policy Statement
page 18
Modified Duration. The percent change in price for a 100-basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

Money Market. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

Money Market Mutual Fund. A mutual fund that invests exclusively in short-term securities.

Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

Mortgage Pass-Through Securities. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

Municipal Securities. Securities issued by state and local agencies to finance capital and operating expenses.

Mutual Fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

Nationally Recognized Statistical Rating Organization (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

Negotiable Certificate of Deposit (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state- licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor).

Paper Gain Or Loss. Term used for unrealized gain or loss on securities being held in a portfolio based on comparison of current market quotes and their original cost. This situation exists as long as the security is held while there is a difference between cost value (book value) and the market value.

Portfolio. Collection of securities held by an investor. 38 Investment Policy Statement
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Primary Dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.

Government securities market.

Prudent Person (Prudent Investor) Rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” Rate of Return. The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity; on a bond, the current income return.

Repurchase Agreement (REPO). Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

Reverse Repurchase Agreement (Reverse REPO). A reverse-repurchase agreement (reverse repo) involves an investor borrowing cash from a financial institution in exchange for securities. This investor agrees to repurchase the securities at a specific date for the same cash value plus an agreed upon interest rate. Although the transaction is similar to repo, the purpose of entering into a reverse repo is quite different. While a repo is straightforward investment of public funds, the reverse repo is a borrowing.

Safekeeping. A service to bank customers whereby securities are held by the bank in the customer’s name.

Securities and Exchange Commission (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

Securities and Exchange Commission SEC) Rule 15c3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client. 39 Investment Policy Statement
page 20
Spread. a) The yield or price difference between the bid and offer on an issue. b) The yield or price difference between different issues.

Structured Note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

Supranational. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries. There are three supranational institutions that issue obligations that are eligible investments for California local agencies: the International Bank of Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Inter-American Development Bank (IADB).

Swap. The sale of one issue and the simultaneous purchase of another for some perceived advantage.

Total Rate of Return. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. Treasury Obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

Treasury Bills. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

Treasury Bonds. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

Treasury Notes. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

Trustee. A financial institution with trust powers that acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract. 40 Investment Policy Statement
page 21
Yield Curve. Yield calculations of various maturities at a given time to observe spread difference.

Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.
41 Investment Policy Statement
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APPENDIX A – LIST OF RESOLUTIONS FOR INVESTMENT OF INACTIVE FUNDS IN LAIF Resolution Number City Council Approval Date
2022-157 Decemebr 6, 2022
2021-164 November 2, 2021
2020-171 October 20, 2020
2020-128 July 21, 2020
2019-090 July 2, 2019
2019-008 February 19, 2019
2018-154 November 20, 2018
42 Investment Policy Statement
page 23
APPENDIX B – LIST OF RESOLUTIONS FOR INVESTMENT OF CITY FUNDS Resolution Number City Council Approval Date
2022-158 Decemebr 6, 2022
2021-165 November 2, 2021
2020-172 October 20, 2020
2020-129 July 21, 2020
2019-091 July 2, 2019
2019-009 February 19, 2019
2018-155 November 20, 2018
43 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, PROVIDING FOR THE INVESTMENT OF INACTIVE

FUNDS IN THE LOCAL AGENCY INVESTMENT FUND OF THE

CALIFORNIA STATE TREASURY AND HEREBY RESCINDING
RESOLUTION NO. 2022-157.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ONTARIO DOES HEREBY RESOLVE AND FIND AS FOLLOWS:

SECTION 1. The California State Legislature has, pursuant to Chapter 730 of the Statutes of 1976, Sections 16429.1 et seq., added to the Government Code and created the Local Agency Investment Fund as a special fund in the California State Treasury. The pooling of funds by many California local agencies will create a fund allowing for high rates of return due to the use of large denomination instruments.

SECTION 2. The City of Ontario has money in its treasury not required for immediate needs and it is in the best interest of the city to place said money in approved investments yielding maximum returns.

SECTION 3. The City of Ontario, 303 East "B" Street, Civic Center, Ontario, California 91764-4196, will participate in the Local Agency Investment Fund of the California State Treasury.

SECTION 4. The City of Ontario agrees to deposit or withdraw money in the Local Agency Investment Fund in the California State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein.

SECTION 5. The following persons are authorized to order the deposit or withdrawal of money in the Local Agency Investment Fund or their successors.

James R. Milhiser, City Treasurer
Armen Harkalyan, Deputy City Treasurer
Michelle Nguyen, Deputy City Treasurer
William Quan, Deputy City Treasurer
Daniel Becerra, Deputy City Treasurer
SECTION 6. Resolution No. 2022-157 is hereby rescinded.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.
44 PASSED, APPROVED, AND ADOPTED this 5th day of December 2023. _
PAUL S. LEON, MAYOR
ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
45 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2023- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held December 5, 2023 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2023- duly passed and adopted by the Ontario City Council at their regular meeting held December 5, 2023. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
46 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, AUTHORIZING THE INVESTMENT OF CITY FUNDS AND HEREBY RESCINDING RESOLUTION NO. 2022-158.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ONTARIO DOES HEREBY RESOLVE AND FIND AS FOLLOWS:

SECTION 1. That the City Treasurer and/or any duly-appointed Deputy City Treasurers whose names appear in this resolution are hereby authorized to open investment accounts for the City of Ontario with any bank, savings and loan association, broker dealer or other financial institution, hereinafter referred to as "broker", to purchase, sell and or deal in such notes, bonds, bills, certificates of indebtedness, warrants or registered warrants and/or other investments as are authorized for general law cities in the State of California by Chapter 4 of Part 1 Division 2 of Title 5 of the Government Code (commencing with section 53600) (hereinafter "authorized investments"), and as limited by the current investment policy of the City Council of the City of Ontario, a copy of which is attached to and made a part of this resolution, and/or such other investment policy which may be adopted by said City Council, and that all orders and instructions, written or oral, which may be given by either the City Treasurer or a duly-appointed Deputy City Treasurer; and each of whom is hereby authorized and directed to purchase, sell and/or deal in authorized investment instruments through said broker on behalf of the City of Ontario, which they may deem necessary or advisable for the City of Ontario for cash and also to make payments and to sign checks or drafts drawn upon the funds of the City of Ontario and also, to withdraw from said broker from time to time, to deliver or accept delivery of, and/or to endorse, and/or to direct the transfer of record title of, all authorized investments, and/or assets or funds that may be carried by said broker for the account of the City of Ontario, and
SECTION 2. That each of the aforesaid officers of the City of Ontario be and hereby authorized and directed to execute and deliver on behalf of the City of Ontario any customer's agreement required by broker and to enter into, execute, and deliver, any and all other agreements, documents, releases, and writings that may be required by said broker for the opening and/or continuing of said account in connection with any transaction relating to said account or to any securities or moneys of the City of Ontario whether or not in said account, provided, however, that no customer's agreement shall authorize investment in other than authorized investments, and
SECTION 3. That until broker shall receive duly written notices of change or rescission of these resolutions, said broker may rely upon the authority contained in this resolution as continuing fully effective, and the said broker may rely upon any certified copy of resolutions, specimen signatures or other writings, signed on behalf of the City of Ontario by any officer thereof; the acceptance of any other form of notice shall not constitute a waiver, of this provision, nor shall the fact that any person hereby empowered ceases to be an officer or becomes an officer under some other title, in any way affect the powers hereby conferred, until broker shall receive due written notice of change or rescission, as 47 aforesaid, and
SECTION 4. That in the event of any change in the office or powers of persons hereby empowered, the City Council shall certify those changes to broker in writing, in the manner herein above specified, which notification, when received, shall be adequate both to terminate the powers of the person theretofore authorized, and to empower the persons thereby substituted, and
SECTION 5. That any and all orders and instructions heretofore given to said broker on behalf of the City of Ontario by any officer of the City of Ontario, are hereby in all respects ratified, confirmed and approved, and
SECTION 6. That the foregoing resolutions and the certificates actually furnished to broker by any officer of the City of Ontario, be and they hereby are made irrevocable, and shall be fully effective as to any transaction for the account of the City of Ontario notwithstanding that the account may have been temporarily closed or inactive, until written notice of the revocation thereof shall have been received by broker.

SECTION 7. That Resolution No. 2022-158 is hereby rescinded.

SECTION 8. I DO FURTHER CERTIFY that the following are the signatures and titles of the persons authorized and empowered to act on behalf of the City of Ontario, pursuant to the foregoing resolutions, and this resolution is in accordance with and does not conflict with the existing ordinances and/or resolutions. ________________________________ ________________________________ James R. Milhiser, City Treasurer Armen Harkalyan, Deputy City Treasurer _________________________________ ________________________________ Michelle Nguyen, Deputy City Treasurer William Quan, Deputy City Treasurer _________________________________
Daniel Becerra, Deputy City Treasurer
SECTION 9. This Resolution shall take effect immediately upon its adoption.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution. 48 PASSED, APPROVED, AND ADOPTED this 5th day of December 2023. _
PAUL S. LEON, MAYOR
ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
_______________________________

BEST BEST & KRIEGER, LLP

CITY ATTORNEY
49 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
50 Department: Engineering
Prepared By: David Zurita
Staff Member Presenting:

Scott Murphy, Executive Director Community
Development
Reviewed By: Raymond Lee, Khoi Do
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 4
SUBJECT:

A RESOLUTION APPROVING FINAL PARCEL MAP NO. 20087, LOCATED AT THE

SOUTHWEST CORNER OF ONTARIO MILLS DRIVE AND FOURTH STREET

CITY OF ONTARIO
Agenda Report
December
5, 2023
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council adopt a Resolution approving Final Parcel Map No. 20087 located at the southwest corner of Ontario Mills Drive and Fourth Street.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Focus Resources in Ontario's Commercial and Residential Neighborhoods Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

There is not a direct ﬁscal impact associated with this action. All public infrastructure improvements required have been constructed.

BACKGROUND & ANALYSIS:

Final Parcel Map No. 20087, consisting of 2 numbered lots on approximately 18 acres of land, as shown on Exhibit A, has been submitted by KRG Ontario 4th Street LLC, a California Limited Liability Company. Tentative Parcel Map No. 20087 was approved by the Planning Commission on July 23, 2019.

Improvements included streetlight upgrades along the project frontage on Fourth Street, Ontario Mills Drive, and Franklin Avenue.

This map meets all conditions of the Subdivision Map Act and the Ontario Municipal Code and has been reviewed and approved by the City Engineer.
51 52
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FINAL PARCEL MAP NO. 20087 LOCATED

AT THE SOUTHWEST CORNER OF ONTARIO MILLS DRIVE AND
FOURTH STREET.

WHEREAS, Tentative Parcel Map No. 20087 submitted for approval by KRG Ontario 4th Street LLC, was approved by the Planning Commission of the City of Ontario on July 23, 2019; and
WHEREAS, Tentative Tract Map No. 20087 consists of 2 numbered lots, being a subdivision of portions of lots 15, 16, and 49 through 52, inclusive, of Rochester as per plat recorded in Book 9 Page 20, of Maps, described as parcel 1 in special warranty deed recorded May 16, 2005 as Document No. 2005-0346322, of official records, both in the Office of the County Recorder of the County of San Bernardino, State of California; and WHEREAS, the requirement for the preparation of Covenants, Conditions and Restriction (CC&R’s), approved by the City Attorney’s Office, to ensure the right to mutual ingress and egress and continued maintenance of common facilities by the commonly affected property owners has been deferred to a date that coincides with the recordation of the subject Parcel Map; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Ontario, California, that Final Parcel Map No. 20087 be approved and that the City Clerk be authorized to execute the statement thereon on behalf of said City.

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

PASSED, APPROVED, AND ADOPTED this 5th day of December 2023. _____________________________________
PAUL S. LEON, MAYOR
ATTEST:
________________________________

SHEILA MAUTZ, CITY CLERK
53 APPROVED AS TO LEGAL FORM:
_______________________________

BEST, BEST & KREIGER, LLP

CITY ATTORNEY
54 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2023- duly passed and adopted by the Ontario City Council at their regular meeting held December 5th, 2023. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
55 Department: Public Works
Prepared By: Daniel P Beers
Staff Member Presenting:

Tito Haes, Executive Director Public Works
Reviewed By: Bonnie Tam, Andrea Ampig
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 5
SUBJECT:

A CONSTRUCTION CONTRACT WITH RESOURCE ENVIRONMENTAL, INC. FOR THE DEMOLITION OF THE BUILDINGS AT 404 N. EUCLID AVE. AND CONSTRUCTION OF A NEW "D BLOCK" TEMPORARY SURFACE PARKING LOT

CITY OF ONTARIO
Agenda Report
December
5, 2023
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council take the following actions:

A
.

Authorize the City Manager or his designee to execute Construction Contract No. D&C23-002 404 N. Euclid Demolition with Resource Environmental, Inc., of Cerritos, California, for the demolition of 404 N. Euclid Ave and the construction of a temporary surface parking lot in the amount of $1,639,000;
B
.

Authorize a 15% contingency of $245,850 to address any unforeseen issues that may arise during the demolition and construction for a total contract amount not-to-exceed $1,884,850; and
C
.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

The Fiscal Year 2023-24 Adopted Budget includes appropriations in the Capital Projects Fund for the City Hall Campus Expansion Project. The recommended demolition and construction services for the construction of the "D Block" Temporary Surface Parking Lot is $1,639,000 with a 15% contingency of $245,850 for a total contract amount not-to-exceed $1,884,850.

BACKGROUND & ANALYSIS:

The Civic Center Expansion Project, which includes the new Fire Station No. 1, Parking Structure, and a new City Services Building, will require closing the parking lots behind City Hall in order to commence construction. The vacant structure located at 404 N. 56 Euclid Ave. will be demolished and converted into a temporary parking lot to oﬀset the loss of existing parking. Conversion of this location will add approximately 100 temporary parking stalls.

This is a critical path for the construction of the new Parking Structure and the Fire Station No. 1 to be built.

On November 7, 2023, the City solicited proposals for the demolition of the structures located at 404 N. Euclid Ave. and the construction of the temporary surface parking lot. Five bids were received. Resource Environmental, Inc. was the apparent lowest bidder at $1,639,000.

Staﬀ then reviewed the remaining bids and found that they met the bid criteria and standards necessary to perform the work.

VENDOR

LOCATION
AMOUNT
Resource Environmental,
Inc.

Cerritos, CA
$1,639,000
Danny Ryan Contracting, Inc.
dba ADEP Precision
Contracting
Irvine, CA
$1,749,000
Unlimited Environmental,
Inc.

Long Beach, CA
$1,864,000
CSI Services
San Pedro, CA
$2,712,000
ABNY General Engineering,
Inc.

Glendora, CA
$3,348,000

Resource Environmental, Inc., located in Cerritos, California, submitted the lowest, responsible bid that met all the required speciﬁcations with a base cost of $1,639,000. Based on the bid, credentials, pricing and favorable reference checks, Staﬀ recommends awarding Construction Contract D&C23-002 404 N. Euclid Ave Demolition to Resource Environmental, Inc., and anticipates the demolition and construction to be completed by March 2024. 57 D&C23-002 404 N Euclid Demolition 1 PLANS AND DRAWINGS

SECTION 00500 – CONTRACT FOR CONSTRUCTION
This Contract for Construction (“Contract”), No. D&C23-002 is made and entered as of ____________, by and between City of Ontario, with its principal place of business at 303 East “B” Street, Ontario, CA 91764, sometimes hereinafter called the “City” and Resource Environmental, Inc., sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:

ARTICLE 1. SCOPE OF WORK.

The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5 , below, for the following Project:

D&C23-002 404 N Euclid Demolition
Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

ARTICLE 2. TIME FOR COMPLETION.

Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 45 calendar days from the CalTrans approval but no more than 90 calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE.

The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of One Million Six Hundred Thirty-Nine Thousand Five Hundred Dollars ($1,639,000.00). Payment shall be made as set forth in the General Conditions.

The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule. 58 D&C23-002 404 N Euclid Demolition 2 PLANS AND DRAWINGS

ARTICLE 4. LIQUIDATED DAMAGES.

Contractor acknowledges that the City will sustain actual damages for each and every day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages.

Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $200 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not ex clude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor.

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT.

The “Contract Documents” include the following:

Notice Inviting Bids
Instructions to Bidders
Bid Forms
Bid Acknowledgement
Bid Schedule
Bid Guarantee
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration Form
Iran Contracting Act Certification
Public Works Contractor DIR Registration Certification
Performance Bond
Payment (Labor and Materials) Bond
Contract for Construction
General Conditions
Special Conditions
Specifications
Addenda
Construction Plans and Drawings
Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9
Applicable Local Agency Standards and Specifications, as last revised Reference Specifications
Approved and fully executed Change Orders
Permits
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.

All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, 59 D&C23-002 404 N Euclid Demolition 3 PLANS AND DRAWINGS

the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties.

ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE.

Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.

ARTICLE 7. INDEMNIFICATION.

Contractor shall provide indemnification and defense as set forth in the General Conditions.

ARTICLE 8. PREVAILING WAGES.

Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site.

ARTICLE 9. FALSE CLAIMS.

Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims m ade with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

60 D&C23-002 404 N Euclid Demolition 4 PLANS AND DRAWINGS

IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.

CITY OF ONTARIO
By:

Scott Ochoa
City Manager

ATTEST:

By:

Sheila Mautz, City Clerk

APPROVED AS TO FORM:

By:

Best Best & Krieger LLP
City Attorney

Environmental Resource, Inc.

By:

Its:

Printed Name:

By:

Its:

Printed Name:

____________________________________
Contractor’s License Number and
Classification

____________________________________
DIR Registration Number

END OF CONTRACT
61 Department: Economic Development
Prepared By: Peter Pallesen
Staff Member Presenting:

Jennifer McLain Hiramoto, Economic
Development Director
Reviewed By: Charity Hernandez
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 6
SUBJECT:

PROFESSIONAL SERVICES AGREEMENTS FOR ON-CALL CONSULTING SERVICES

CITY OF ONTARIO
Agenda Report
December
5, 2023
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council and Authority Board approve and authorize the City Manager or designee to execute three-year On-Call Professional Services Agreements with ﬁve acquisition, relocation, and property management ﬁrms, seven real estate valuation and appraisal ﬁrms, ten engineering and land surveying ﬁrms, and six environmental ﬁrms; and authorize the City Manager or designee to extend the agreements for up to two additional one-year periods. In no event shall the proposed Agreement, with each ﬁrm, exceed $500,000 over a three-year period with an allocation of $166,000 per year.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Operate in a Businesslike Manner
FISCAL IMPACT:

The Fiscal Year 2023-24 Adopted Budget includes, and future year budgets will include appropriations from the General Fund and/or the Ontario Housing Authority Fund for these services. In no event shall the proposed Agreement, with each ﬁrm, exceed $500,000 over a three- year period with an allocation of $166,000 per year. The consultants have agreed to the proposed ﬁxed billing rates and will be compensated for the scope of work at the approved billing rates, as set forth in the subject agreements.

BACKGROUND & ANALYSIS:

The City's Five-Year Projected Capital Improvement Project Budget includes several real property acquisitions for both City facilities and aﬀordable housing development opportunities. In order to facilitate the purchase and sale of these properties, Staﬀ has identiﬁed a need to contract with multiple ﬁrms to provide on-call consulting services. These services include, but are not limited to, acquisition, relocation, property management, real estate valuation, civil engineering, surveying, traﬃc engineering, asbestos and lead paint surveys, environmental site assessments, remediation services, and regulatory compliance.

On April 19, 2023, the City solicited statements of qualiﬁcations for professional engineering, environmental, and acquisition, relocation, and property management services. On July 24, 2023, 62 the City solicited statements of qualiﬁcations for professional real estate valuation and appraisal services. The City received ten responses for Acquisition, Relocation, and Property Management Services; and ﬁve were deemed responsive and the most qualiﬁed. The City received eighteen responses for Engineering Services; and ten were deemed responsive and the most qualiﬁed. The City received twelve responses for Environmental Services; and six were deemed responsive and the most qualiﬁed. The City received seven responses for Real Estate Valuation and Appraisal Services; and all seven were deemed responsive and qualified.

A panel of City Staﬀ from the Ontario Municipal Utilities Company, Economic Development Agency, Public Works, Management Services, Community Development Agency, and the Ontario Housing Authority reviewed the statements of qualiﬁcations using a qualiﬁcations-based selection process.

The ﬁrms listed in the table above were deemed to be the most qualiﬁed ﬁrms in their respective categories based on their broad range of expertise demonstrated by their services provided to municipal agencies and capability to perform the work in a timely manner.

Staﬀ is recommending on-call contracts (described in the table below) with ﬁve acquisition, relocation, and property management ﬁrms, seven real estate valuation and appraisal ﬁrms, ten engineering and land surveying ﬁrms, and six environmental ﬁrms. Contracting with numerous ﬁrms will ensure a cost-eﬀective option and that suﬃcient resources are always available for projects and task orders as they arise. In addition, Staﬀ is recommending that all contracts be executed between the ﬁrms, the City, and the Ontario Housing Authority, so that any City department can make use of these services for their respective projects.

COMPANY

LOCATION

SERVICES
Bender Rosenthal, Inc.

Sacramento, CA
Real Estate Valuation
BTI Appraisal, Inc.

Glendale, CA
Real Estate Valuation
CBRE, Inc.

Dallas, TX
Real Estate Valuation
Hendrickson Appraisal Company, Inc.

San Diego, CA
Real Estate Valuation
Integra Realty Resources, Inc.

Rocklin, CA
Real Estate Valuation
Riggs & Riggs, Inc.

Simi Valley, CA
Real Estate Valuation
Thompson & Thompson Real Estate
Valuation & Consulting, Inc.

Monrovia, CA
Real Estate Valuation
Epic Land Solutions, Inc.

Los Angeles, CA
Acquisition,
Relocation, &
Property
Management
Interwest Consulting Group, Inc.

Ontario, CA
Acquisition,
Relocation, &
Property
Management
63 Monument ROW, Inc.

Irvine, CA
Acquisition,
Relocation, &
Property
Management
Overland, Pacific, & Cutler, LLC
Long Beach, CA
Acquisition,
Relocation, &
Property
Management
Paragon Partners Consultants, Inc.

Cypress, CA
Acquisition,
Relocation, &
Property
Management
EXP U.S. Services, Inc.

San Bernardino, CA
Engineering
HR Green Pacific, Inc.

Corona, CA
Engineering
IMEG, Inc.

Ontario, CA
Engineering
KOA Corporation
Ontario, CA
Engineering
Mark Thomas & Company, Inc.

San Jose, CA
Engineering
Michael Baker International, Inc.

Pittsburgh, PA
Engineering
Psomas, Inc.

Culver City, CA
Engineering
TKE Engineering, Inc.

Riverside, CA
Engineering
Transtech Engineers, Inc.

Chino, CA
Engineering
Wood Rodgers, Inc.

Sacramento, CA
Engineering
Citadel Environmental Services, Inc.

Signal Hill, CA
Environmental
Converse Consultants, Inc.

Monrovia, CA
Environmental
Dudek, Inc.

Encinitas, CA
Environmental
Group Delta Consultants, Inc.

Ontario, CA
Environmental
Kleinfelder, Inc.

San Diego, CA
Environmental
Nova Geotechnical & Inspection Services -
SoCal, Inc.

Irvine, CA
Environmental

The execution of these Agreements do not guarantee any payment or assignment to any ﬁrm. The pre-selection of ﬁrms on the basis of qualiﬁcation permits the assignment of tasks on the basis of best value or on the basis of specialized expertise or availability, as needed. Funds shall only be encumbered for each consultant when the City has an assigned project for said consultant, at which time a purchase order for said project will be opened and the dollar amount will be based on the consultant's proposal for the services to be rendered.
64 46700.00100\40935195.1

BB&K (2023) -1- PROFESSIONAL SERVICES AGREEMENT

CITY OF ONTARIO

PROFESSIONAL SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this 5th day of December, 2023, by and between the City of Ontario, a municipal corporation and the Ontario Housing Authority, a public body, corporate and politic, organized under the laws of the State of California with its principal place of business at 303 East “B” Street, Ontario, California 91764-4196, County of San Bernardino, State of California ("City") and Epic Land Solutions, Inc., a California Corporation, with its principal place of business at 1971 W. 190th Street, Suite 200, Torrance, CA 90504 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Professional On-Call Consulting Services.

Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement.

Consultant represents that it is experienced in providing Professional On-Call Acquisition and Relocation Consulting Services to public clients, is licensed in the State of California, and is familiar with the plans of City.

2.2 Project.

City desires to engage Consultant to render such professional services for the Professional On-Call Acquisition and Relocation Consulting Services project ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional acquisition and relocation consulting services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agree ment, the exhibits attached her eto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from December 5, 2023 to December 5, 2026, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than two (2) additional one -year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services. 65 46700.00100\40935195.1

BB&K (2023) -2- PROFESSIONAL SERVICES AGREEMENT

3.2 Compensation.

3.2.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "B" attached hereto and incorporated herein by reference. The total compensation shall not exceed Five Hundred Thousand Dollars ($500,000) without written approval of the City Council or City Manager, as applicable. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.2.2 Payment of Compensation . Consultant shall submit to City a monthly invoice which indicates work completed and hours of Services rendered by Consultant. The invoice shall describe the amount of Services provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the invoice.

City shall, within 30 days of receiving such invoice, review the invoice and pay all non -disputed and approved charges. If the City disputes any of Consultan t's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payme nt shall not constitute a waiver of any claims by the City for any reason whatsoever.

3.2.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "B" of this Agreement.

3.2.4 Extra Work . At any time during the term of this Agreement, City may request that Consultant 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.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3 Responsibilities of Consultant.

3.3.1 Independent Contractor; Control and Payment of Subordinates . The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee.

Any personnel performing the Services on behalf of Consultant shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law.

Consultant shall be responsible for all reports and obligations respecting such ad ditional personnel, in cluding, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance.

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

66 46700.00100\40935195.1

BB&K (2023) -3- PROFESSIONAL SERVICES AGREEMENT

3.3.3 Substitution of Key Personnel . Consultant has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Karen Starr, Senior Vice President.

3.3.4 City's Representative . The City hereby designates Charity Hernandez, Real Estate Administrative Director, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative").

City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.3.5 Consultant's Representative. Consultant hereby designates Kari Anvick, Advisory Manager, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her 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 Services under this Agreement.

3.3.6 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times.

3.3.7 Standard of Care; Performance of Employees. Consultant shall perform all Services 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. Consultant represent s and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant 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 Consultant's failure t o comply with the standard of care provided for herein. Any employ ee of the Consultant or its subconsultants 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 perform the Services in a manne r acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.
67 46700.00100\40935195.1

BB&K (2023) -4- PROFESSIONAL SERVICES AGREEMENT

3.3.8 Period of Performance.

3.3.8.1 Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to pr ovisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage.

3.3.8.2 Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement.

3.3.8.3 Should a Force Majeure Event occur, the non -performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation.

Notwithstanding the foregoing in this section, the City may stil l terminate this Agreement in accordance with the termination provisions of this Agreement.

3.3.9 Laws and Regulations; Employee/Labor Certification.

3.3.9.1 Compliance with Laws . Consultant 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 or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause.

3.3.9.2 Employment Eligibility; Consultant . Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended f rom time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed 68 46700.00100\40935195.1

BB&K (2023) -5- PROFESSIONAL SERVICES AGREEMENT

a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement.

3.3.9.3 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, 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. Consultant 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.

3.3.9.4 Air Quality . To the extent applicable, Consultant must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Consultant shall indemnify City against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Consultant, its subconsultants, or others for whom Consultant is responsible under its indemnity obligations provided for in this Agreement.

3.3.9.5 Water Quality Management and Compliance . Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, w ithout limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter -Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must additionally comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. City may seek damages from Consultant for delay in completing the Services caused by Consultant ’s failure to comply with the laws, regulations and policies described in this Section, or any other relevant water quality law, regulation, or policy.

3.3.9.6 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times 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.

3.3.10 Insurance.

3.3.10.1 Time for Compliance . Consultant 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, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to the City that the subconsultant has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Agreement for cause. 69 46700.00100\40935195.1

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3.3.10.2 Types of Insurance Required . As a condition precedent to the effectiveness of this Agreement for work to be performed hereunder, and without limiting the indemnity provisions of the Agreement, the Consultant, in partial performance of its obligations under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, suppl ement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01, or the exact equivalent, with limits of not less than $ 2,000,000 per occurrence and no less than $4,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $2,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $ 2,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, polluti on, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least five (5) years from termination or expiration of this Agreement.

3.3.10.3 Insurance Endorsements . Required insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms approved by the City to add the following provisions to the insurance policies:
(A) Commercial General Liability : (1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement.

Additional Insured Endorsements shall not (1) be restricted to "ongoing operations"; (2) exclude "contractual liability"; (3) restrict coverage to "sole" liability of Consultant; or (4) contain any other exclusions contrary to the terms or purposes of t his Agreement. For all policies of Commercial General Liability insurance, Consultant shall provide endorsements in the form of ISO CG 20 10 10 01 and 20 37 10 01 (or endorsements providing the exact same coverage) to effectuate this requirement. (2) Cancellation: Required insurance policies shall not be canceled or the coverage 70 46700.00100\40935195.1

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reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (B) Automobile Liability : (1) Additional Insured: The City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Vendor or for which the Vendor is responsible. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served u pon the City except ten (10) days shall be allowed for non-payment of premium.
(C) Professional Liability (Errors & Omissions): (1) Cancellation:

Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non -payment of premium. (2) This insurance shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.
(D) Workers' Compensation: (1) Cancellation: Required
insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.

3.3.10.4 Primary and Non -Contributing Insurance . All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the City, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.

3.3.10.5 Waiver of Subrogation . All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.

3.3.10.6 Deductibles and Self-Insured Retentions. Any deductible or self- insured retention must be approved in writing by the City and shall protect the City, its officials, officers, employees, agents, and volunteers in the same manner and to the same extent as they would have been protected had the p olicy or policies not contained a deductible or self -insured retention.

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the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and endors ements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has b een renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.3.10.8 Acceptability of Insurers . Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to transact business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

3.3.10.9 Enforcement of Agreement Provisions (non estoppel) .

Consultant acknowledges and agrees that actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligation on the City nor does it waive any rights hereunder.

3.3.10.10 Requirements Not Limiting . Requirement of specific coverage or minimum limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.

3.3.10.11 Additional Insurance Provisions
(A) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(B) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
(C) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (D) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
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(E) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
(F) Consultant shall report to the City, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.

3.3.10.12 Insurance for Subconsultants . Consultant shall include all subconsultants engaged in any work for Consultant relating to this Agreement as additional insureds under the Consultant's policies, or the Consultant shall be responsible for causing subconsultants to purchase the appropria te insurance in compliance with the terms of these Insurance Requirements, including adding the City, its officials, officers, employees, agents, and volunteers as additional insureds to the subconsultant's policies. All polici es of Commercial General Liability insurance provided by Consultant’s subconsultants performing work relating to this Agreement shall be endorsed to name the City, its officials, officers, employees, agents and volunteers as additional insureds using endor sement form ISO CG 20 38 04 13 or an endorsement providing equivalent coverage. Consultant shall not allow any subconsultant to commence work on any subcontract relating to this Agreement until it has received satisfactory evidence of subconsultant’s compliance with all insurance requirements under this Agreement, to the extent applicable. The Consultant shall provide satisfactory evidence of compliance with this section upon request of the City.

3.4 Labor Code Requirements.

3.4.1 Prevailing Wages. Consultant 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 16000, 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, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant s hall 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 Consultant's principal place of busine ss and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Con sultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, and volunteers free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

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1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants.

3.4.3 Compliance Monitoring. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused de lay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant.

3.4.4 Labor Certification. By its signature hereunder, Consultant 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 Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5 Termination of Agreement.

3.5.1.1 Grounds for Termination . City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consult ant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement.

3.5.1.2 Effect of Termination . If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this A greement. Consultant shall be required to provide such document 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.

3.6 Indemnification.

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omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payme nt of all damages, expert witness fees and attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or te rmination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

3.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2 782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

3.7 General Provisions.

3.7.1 Accounting Records . Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant 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. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agree ment for a period of three (3) years from the date of final payment under this Agreement.

3.7.2 Independent Contractors and Subcontracting.

3.7.2.1 Use of Consultants. Consultant is aware of statutory and case law regarding classification of workers as independent contractors, including California Labor Code Section 2750.3 and Dynamex Operations West, Inc. v. Superior Court , 4 Cal. 5th 903 (2018). To ensure that Consultant is in compliance with the California Labor Code, Consultant shall only utilize its employees to provide the Services. Consultant may not provide the services through any independent contractor, subcontractor or subconsultant (“Subcontractor(s)”) unless approved by the City as set forth in Section 3.7 .2.2 below. Consultant represents and warrants that all personnel who perform the Services on Consultant’s behalf are Consultant’s employees, and that Consultant complies with all applicable laws, rules and regulations governing its employees, including, but not limited to, the California Labor Code, Unemployment Insurance Code and all applicable Industrial Welfare Commission Wage Orders.

3.7.2.2 Prior Approval Required . Consultant shall not use any Subcontractor to provide the Services, or any portion of the work required by this Agreement, without prior written approval of City. In the event that City authorizes Consultant to use a Subcontractor, Consultant shall enter into a written agreement with the Subcontractor, which must include all provisions of the Agreement, including a restriction on the Subcontractor’s use of further independent contractors, subcontractors or subconsultants without the City’s prior written consent.
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3.7.3 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Consultant: Epic Land Solutions, Inc.
1971 W. 190th Street, Suite 200
Torrance, CA 90504
ATTN: Karen Starr, Senior Vice President
City: City of Ontario
303 East “B” Street
Ontario, CA 91764
ATTN: Charity Hernandez, Real Estate Administrative
Director
Such notice shall be deemed made when personally delivered or when mailed, forty -eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate not ice on the date actual notice occurred, regardless of the method of service.

3.7.4 Ownership of Materials and Confidentiality.

3.7.4.1 Documents & Data; Licensing of Intellectual Property . This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are pre pared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail t o provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents.

3.7.4.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non -exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design 76 46700.00100\40935195.1

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professionals other than Consultant or its subconsultants, or those provided to Consultant by the City.

3.7.4.3 Right to Use . City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a pro ject other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re -use of the Documents & Data on such other project. Consultant shall be responsible and liable for its D ocuments & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant.

3.7.4.4 Indemnification. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted.

3.7.4.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be di sclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed c onfidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

3.7.4.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information.

Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal 77 46700.00100\40935195.1

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action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

3.7.5 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.

3.7.6 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.

3.7.7 Attorneys’ 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 pa rty reasonable attorneys’ fees and all costs of such action.

3.7.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Bernardino County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Consultant must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City.

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

3.7.10 City's Right to Employ Other Consultants . City reserves right to employ other consultants in connection with this Project.

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

Consultant shall not subcontract any portion of the Services 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.

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of Consultant, 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 pa ragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.

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

3.7.15 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, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.

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

3.7.17 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.

3.7.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Consultant 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 Consultant, any fee, commission, percentage, brokerage fee, gift or other co nsideration contingent upon or resulting from the award or making of this Agr eement. Consultant further agrees to file, or shall cause its employees or subconsultants 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.

3.7.19 Authority to Enter Agreement. Consultant 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.

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

3.7.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination.

SIGNATURES ON NEXT PAGE
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SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ONTARIO AND
EPIC LAND SOLUTIONS, INC.

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

CITY OF ONTARIO EPIC LAND SOLUTIONS, INC.

By:

Its:

Printed Name:

By:

Its:

Printed Name:

Approved By:

Scott Ochoa
City Manager
Approved as to Form:

_____________________________________
Best Best & Krieger LLP
City Attorney

Attested By:

Assistant City Clerk

ONTARIO HOUSING AUTHORITY

Approved By:

Scott Ochoa
Executive Director

Attested By:

Authority Secretary

80 46700.00100\40935195.1

BB&K (2023) Exhibit “A”-1 PROFESSIONAL SERVICES AGREEMENT

EXHIBIT "A"

SCOPE OF SERVICES
All qualified consultants must be capable of furnishing all necessary professional and technical services set forth below. The City will be utilizing General, Federal, State and other funds for the projects. The list is not exhaustive and may include oth er services as directed or requested by City staff. The actual Scope of services will be determined on a project-by-project basis.

WORKING KNOWLEDGE OF THE FOLLOWING:

Land Acquisition

1. Assist City staff with the coordination of all the various aspects of the real property acquisition process.

2. Meet on an ongoing basis with property owners or business tenants (or their appointed representatives) to coordinate and negotiate the purchase and sale transaction.

3. Present written purchase offers to property owners as directed by City staff.

4. Review and analyze litigation guarantees in order to identify those specific title exceptions (i.e., easements, oil rights, etc.) that may require removal before conveyance. Also, assist City to resolve any adverse matters that may prevent the acquisition of parcels.

5. Prepare all acquisition agreements, deeds and other documents necessary to complete the acquisition.

6. Act as liaison between City, title companies and escrow agents.

7. Process all executed acquisition and escrow documents. Transmit such documents to the appropriate parties (i.e., escrow, property owner, City staff, etc.)

8. Obtain reconveyance and subordination agreements as necessary.

9. Maintain an accurate and current record of all-pertinent information and contacts concerning the property owners and tenants.

Relocation

1. Interview displaced persons to determine housing relocation and special needs.

2. Inform displaced persons of available relocation assistance, the relocation process and benefits.

3. Search for relocation sites and provide referrals of sites to displacees.

4. Prepare and distribute informational brochures, Notices of Eligibility, 90 -Day Notices to Vacate, Rental Agreements, and other required notices and documents.

5. Determine relocation eligibility and amount for relocation benefits.

6. Prepare and transmit to City all applicable invoices and relocation claim forms.

7. Inspect replacement dwellings in accordance with the Uniform Relocation Act or state relocation laws.

8. Provide referrals and advice, as appropriate and as needed, to displacees on available social services, social service City and community organizations.

9. Prepare Relocation Plans, Relocation Guidelines, relocation cost estimates, project area surveys and other specialized reports.
81 46700.00100\40935195.1

BB&K (2023) Exhibit “A”-2 PROFESSIONAL SERVICES AGREEMENT

10. Provide outside representation for City in the form of participation in citizen group meetings, court appearances, presentations, hearings, etc.

11. Advise and update City staff on various aspects of state and federal relocation law.

Property Management

1. Coordinate all of the property management tasks with City staff and the demolition contractor as deemed necessary.

2. Enforce existing terms of any rental agreements pertaining to the property.

3. Coordinate any necessary repairs on occupied structures, and landscape maintenance, with the tenants and the City maintenance contractor.

4. Coordinate with displac ees to leave structure and grounds in a reasonably clean and environmentally safe condition, free of hazardous materials.

5. Collect and manage rent monies from tenants residing on City properties during relocation.

6. Order and verify (through an inspection) the shut off and proper removal and cap off of all utilities and public services, including sewer, water, gas, electricity, telephone pedestals and/or lines and trash receptacles on unoccupied properties expeditiously and as directed by staff.

7. Coordinate the transfer of all utilities to the new property owners’ and/or tenants’ name as directed by City staff.

8. Order and verify (through an inspection) necessary board -ups and security of vacant structures as requested by City.

The aforementioned tasks represent the general scope of services and are not definitive, but meant to provide a general description of the anticipated duties.

82 46700.00100\40935195.1

BB&K (2023) Exhibit “B”-1 PROFESSIONAL SERVICES AGREEMENT

EXHIBIT "B"

COMPENSATION
In accordance with section 3.2 of this Agreement, the Consultant shall be compensated for performance of the Services as follows:

Staff Hourly Rate
Advisory Manager $221.36
Project Manager $175.15
Senior Right of Way Agent IV $124.70
Senior Right of Way Agent III $119.10
Senior Right of Way Agent II $110.74
Senior Right of Way Agent I $98.06
Right of Way Agent II $93.87
Right of Way Agent I $87.57
Budget & Financial Controls $115.58
Administrative Support $84.08

83 46700.00100\40935195.1

(BB&K 2017)

Exhibit “B”-2

EXHIBIT "B" CONT’D

COMPENSATION
Reimbursable cost and expenses, subject to the requirement of prior written authorization by the City, Housing Authority, and/or Agency’s representative pursuant to this Agreement, may include the following:

Actual out-of-pocket costs and expenses, plus handling fees not to exceed ten percent (10%) of the actual out-of-pocket costs and expenses for the following:
• Printing/reproduction
• Graphic aids
• Travel (airfare, meals, etc.), excepting travel to and from Ontario, California, which is specifically excluded
• Fees of governmental entities
• Computer services
• Photography
• Subcontract services
• Postage
• Telephone/facsimile
• Mileage/deliveries-Mileage rate will be adjusted from time to time to equal the U.S.

General Services Administration Mileage Reimbursement Rates • Visual simulation
• CADD/computer time
• Other reimbursable costs and expenses at the discretion of the Ontario Agencies 84 46700.00100\40935195.1

BB&K (2023) -1- PROFESSIONAL SERVICES AGREEMENT

CITY OF ONTARIO

PROFESSIONAL SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this 5th day of December, 2023, by and between the City of Ontario, a municipal corporation and the Ontario Housing Authority, a public body, corporate and politic, organized under the laws of the State of California with its principal place of business at 303 East “B” Street, Ontario, California 91764-4196, County of San Bernardino, State of California ("City") and Interwest Consulting Group, Inc , a California Corporation, with its principal place of business at 1500 S. Haven Ave. , Suite 220, Ontario, California, 91761 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties."

2. RECITALS.

2.1 Professional On-Call Consulting Services.

Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement.

2.2 Project.

City desires to engage Consultant to render such professional services for the Professional On-call Acquisition and Relocation Consulting Services project ("Project") as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

BB&K (2023) -2- PROFESSIONAL SERVICES AGREEMENT

3.2 Compensation.

3.2.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "B" of this Agreement.

Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City.

3.3 Responsibilities of Consultant.

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

86 46700.00100\40935195.1

BB&K (2023) -3- PROFESSIONAL SERVICES AGREEMENT

Marcie Jorgensen, Director, Real Estate Services.

City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the Scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all neces sary documents which enlarge the Scope of Services or change the Consultant's total compensation subject to the provisions contained in this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee.

3.3.5 Consultant's Representative . Consultant hereby designates Marcie Jorgensen, Director, Real Estate Services, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her 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 Services under this Agreement.

BB&K (2023) -4- PROFESSIONAL SERVICES AGREEMENT

3.3.8 Period of Performance.

Notwithstanding the foregoing in this section, the City may stil l terminate this Agreement in accordance with the termination provisions of this Agreement.

3.3.9 Laws and Regulations; Employee/Labor Certification.

BB&K (2023) -5- PROFESSIONAL SERVICES AGREEMENT

3.3.10 Insurance.

BB&K (2023) -6- PROFESSIONAL SERVICES AGREEMENT

under such Agreement, shall procure and maintain in full force and effect during the term of the Agreement the following policies of insurance. If the existing policies do not meet the insurance requirements set forth herein, Consultant agrees to amend, s upplement or endorse the policies to do so.
(A) Commercial General Liability: Commercial General Liability Insurance which affords coverage at least as broad as Insurance Services Office "occurrence" form CG 00 01, or the exact equivalent, with limits of not less than $ 2,000,000 per occurrence and no less than $4,000,000 in the general aggregate. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions (1) limiting coverage for contractual liability; (2) excluding coverage for claims or suits by one insured against another (cross-liability); (3) products/completed operations liability; or (4) containing any other exclusion(s) contrary to the terms or purposes of this Agreement. (B) Automobile Liability Insurance: Automobile Liability Insurance with coverage at least as broad as Insurance Services Office Form CA 00 01 covering "Any Auto" (Symbol 1), or the exact equivalent, covering bodily injury and property damage for all activities with limits of not less than $2,000,000 combined limit for each occurrence. (C) Workers' Compensation: Workers' Compensation
Insurance, as required by the State of California and Employer's Liability Insurance with a limit of not less than $1,000,000 per accident for bodily injury and disease. (D) Professional Liability (Errors & Omissions): Professional Liability insurance or Errors & Omissions insurance appropriate to Consultant’s profession with limits of not less than $ 2,000,000. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, polluti on, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least five (5) years from termination or expiration of this Agreement.

BB&K (2023) -7- PROFESSIONAL SERVICES AGREEMENT

(B) Automobile Liability : (1) Additional Insured: The City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Vendor or for which the Vendor is responsible. (2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served u pon the City except ten (10) days shall be allowed for non-payment of premium.
(C) Professional Liability (Errors & Omissions): (1) Cancellation:

Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non -payment of premium. (2) This insurance shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreemen t. The policy must “pay on behalf of” the insured and include a provision establishing the insurer’s duty to defend.
(D) Workers' Compensation: (1) Cancellation: Required
insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City except ten (10) days shall be allowed for non-payment of premium. (2) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the City, its officials, officers, employees, agents, and volunteers.

3.3.10.5 Waiver of Subrogation . All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written expr ess waivers and insurance clauses from each of its subconsultants.

3.3.10.7 Evidence of Insurance . The Consultant, concurrently with the execution of the Agreement, and as a condition precedent to the effectiveness thereof, shall deliver either certified copies of the required policies, or original certificates on forms approved by the City, together with all endorsements affecting each policy. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval. The certificates and end orsements for each insurance policy 91 46700.00100\40935195.1

BB&K (2023) -8- PROFESSIONAL SERVICES AGREEMENT

shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15 days) prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced and not replaced immediately so as to avoid a lapse in the required coverage, Consultant shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverag e, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

3.3.10.9 Enforcement of Agreement Provisions (non estoppel) .

BB&K (2023) -9- PROFESSIONAL SERVICES AGREEMENT

to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
(F) Consultant shall report to the City, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.

3.4 Labor Code Requirements.

3.4.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants.
93 46700.00100\40935195.1

BB&K (2023) -10- PROFESSIONAL SERVICES AGREEMENT

3.4.3 Compliance Monitoring. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant.

3.5 Termination of Agreement.

3.6 Indemnification.

3.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing and selected from Consultant’s insurance carrier’s panel counsel ), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property o r persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other 94 46700.00100\40935195.1

BB&K (2023) -11- PROFESSIONAL SERVICES AGREEMENT

related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant’s obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

3.6.3 Consultant shall have the right to defend and settle any action for which indemnification is sought, provided that it shall not enter into any settlement that requires an admission of wrongdoing by any indemnitee without that indemnitee’s approval.

3.7 General Provisions.

3.7.2 Independent Contractors and Subcontracting.

BB&K (2023) -12- PROFESSIONAL SERVICES AGREEMENT

Consultant: Interwest Consulting Group, Inc.
1500 S. Haven Ave., Suite 220
Ontario, California, 91761
ATTN: Marcie Jorgensen, Director, Real Estate Services City: City of Ontario
303 East “B” Street
Ontario, CA 91764
ATTN: Charity Hernandez, Real Estate Administrative
Director
Such notice shall be deemed made when personally delivered or when mailed, forty -eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate not ice on the date actual notice occurred, regardless of the method of service.

3.7.4 Ownership of Materials and Confidentiality.

BB&K (2023) -13- PROFESSIONAL SERVICES AGREEMENT

professionals other than Consultant or its subconsultants, or those provided to Consultant by the City.

BB&K (2023) -14- PROFESSIONAL SERVICES AGREEMENT

action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information.

3.7.6 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.

3.7.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in San Bernardino County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Consultant must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Consultant. If no such Government Code cl aim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against the City.

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

3.7.10 City's Right to Employ Other Consultants . City reserves right to employ other consultants in connection with this Project.

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

3.7.12 Assignment or Transfer. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services 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.

BB&K (2023) -15- PROFESSIONAL SERVICES AGREEMENT

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

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

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

SIGNATURES ON NEXT PAGE
99 46700.00100\40935195.1

BB&K (2023) -16- PROFESSIONAL SERVICES AGREEMENT

SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF ONTARIO AND
INTERWEST CONSULTING GROUP, INC.

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written.

CITY OF ONTARIO INTERWEST CONSULTING GROUP, INC.

By:

Its:

Printed Name:

By:

Its:

Printed Name:

Approved By:

Scott Ochoa
City Manager
Approved as to Form:

_____________________________________
Best Best & Krieger LLP
City Attorney

Attested By:

Assistant City Clerk

ONTARIO HOUSING AUTHORITY

Approved By:

Scott Ochoa
Executive Director

Attested By:

Authority Secretary

100
46700.00100\40935195.1