CITY OF REDLANDS
CITY COUNCIL
A G E N D A
MARCH 15, 2022
PAUL BARICH
Mayor
EDDIE TEJEDA
Mayor Pro Tempore
DENISE DAVIS
Council Member
JENNA
GUZMAN-LOWERY
Council Member
MICK GALLAGHER
Council Member
***
JEANNE DONALDSON
City Clerk
ROBERT DAWES
City Treasurer
CHARLES M. DUGGAN JR.
City Manager
DANIEL J. McHUGH
City Attorney
5:00 p.m. Open Public Meeting, Public Comment (Closed Session) 6:00 p.m. Open Session (Public Meeting)
* * *
City Council Chambers
Civic Center, 35 Cajon Street, Redlands, California
March 15, 2022
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A G E N D A
The following information comprises the agenda for the regular meeting of the City Council of the City of Redlands at the times noted below in the City Council Chambers, Civic Center, 35 Cajon Street, Redlands, California, on:
TUESDAY, MARCH 15, 2022
To join via Zoom on a computer, laptop, or smart device Please visit www.zoom.us
, click on Join a Meeting
Enter the Meeting ID 824 4618 0187, then run the Zoom launcher To join via Zoom with audio only (cell phone or landline):
Dial 1-877-853-5247
Enter the Meeting ID 824 4618 0187
Should the City lose connectivity on Zoom, we will halt the meeting until it can be restored. To check on the status of remote connectivity in the event of an outage, go to the City’s website at www.cityofredlands.org or to the City’s Facebook page at @CityofRedlands or the Instagram page at @CityofRedlands_CityHall.
In the event the City cannot reestablish Zoom connectivity in a reasonable amount of time, the mayor will adjourn the meeting to a future date.
Anyone desiring to speak on an agendized item at this meeting may do so during the consideration of that
item. Due to time constraints and the number of persons who may wish to give oral testimony, public comments will be limited to three (3) minutes.
To provide comment while participating from Council Chambers:
Although it is not required, speakers are encouraged to submit a "Speaker Sign Up Sheet" before the meeting is convened. Forms are available in the Office of the City Clerk or in Council Chambers.
After the meeting has convened, you may place the speaker form in the basket at the table along the north wall of the Chambers. Please do not disturb the City Clerk while the meeting is in progress.
To provide comment through Zoom (on a computer, laptop, or smart device):
Click the "Raise Hand" button and the moderator will unmute you when it is your turn to speak
To provide comment via audio only (cell phone or landline):
Dial *9 to "Raise Hand". The moderator will identify you by your area code and last 3 numbers of your telephone number when it is your turn to speak.
PLEASE SILENCE CELL PHONES, PAGERS AND OTHER ELECTRONIC
COMMUNICATION DEVICES UPON ENTERING THE CHAMBERS
5:00 P.M.
A. Call City Council Meeting to Order.
B. Public Comment
(Any person wishing to provide public comment on a closed session matter may do so at this time.)
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C. Recess City Council Meeting to a Closed Session
1. Conference with legal counsel: Anticipated Litigation - Government Code §54956.9(d)(2)(e)(3) (Assistant City Manager Boatman)
One Case:
a. Facts and circumstances: Receipt of threatened litigation against the City by the American Youth Soccer Organization relating to the operation of the Redlands Sports Park.
2. Conference with real property negotiators - Government Code §54956.8 (Assistant City Manager Boatman)
Property: APN 0292-166-08-0000
Agency Negotiators: Charles M. Duggan, Jr.; Chris Boatman Negotiating Party: Andrew Christopherson, The Grove School Under Negotiation: Terms of payment and price of possible lease amendment or purchase of property
3. Conference with labor negotiator - Government Code §54957.6 (Assistant City Manager McConnell)
Agency Negotiator: Assistant City Manager McConnell
Employee Organizations: Redlands Association of Department Directors Redlands Association of Management Employees
Redlands Association of Mid-Management Employees
Redlands Association of Safety Management Employees
Redlands Association of Fire Management Employees
Redlands Police Officers Association
Redlands Professional Firefighters Association
Redlands Civilian Safety Employees
Teamsters Local 1932 Redlands Chapter
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6:00
D. Reconvene City Council Meeting
E. Invocation by Mayor Pro Tem Tejeda - Pledge of Allegiance (In keeping with long-standing traditions of legislative invocations, this City Council meeting may include a brief invocation. Such invocations are not intended to proselytize or advance any one, or to disparage any other, faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation.) F. Closed Session Report
(No reportable action taken in closed session unless otherwise announced by the City Attorney at this time.)
G. Presentations
1. Presentation of Lifesaving Awards to Redlands Residents Nicholas Miller, and Kacey Reineman for their heroic actions in saving a woman from a house fire (Interim Chief Sessler) H. Public Comments - City Council
(At this time, the City Council will provide an opportunity for the public to address them on any subject, within the jurisdiction of the City Council, which is not already scheduled on this agenda. However, any matter that requires action will be referred to staff for a report and possible action at a subsequent meeting. Comments will be limited to three {3} minutes.) I. Consent Calendar
(The following routine items have been recommended for approval and will be acted upon simultaneously unless separate discussion and/or action is requested by a Councilmember or a member of the audience.)
1. Approve minutes of the regular meeting of March 1, 2022 (City Clerk Donaldson)
2. Authorize issuance of a proclamation declaring March 29, 2022, as Vietnam War Veterans Day (Mayor Barich)
3. Authorize issuance of a proclamation declaring March 31, 2022, as Cesar Chavez Day (Mayor Pro Tem Tejeda)
4. Approve Resolution No. 8312 authorizing remote teleconference meetings by the City Council and all Boards, Commissions, and Committees of the City in accordance with Assembly Bill 361 (2021) for a period of 30 days (Council Member Davis)
5. Approve recommendation for an appointment to the Parks and Recreation Advisory Commission (Mayor Barich and Council Member Guzman-Lowery)
6. Approve adoption of Ordinance No. 2931 - Amending Chapter 2.03.030 of the Redlands Municipal Code relating to the adjustment of current City Council Member Election District Boundaries (Development Services Director Desatnik)
7. Approve Resolution No. 8309 establishing a Statement of Investment Policy and Rescinding Resolution No. 8035 (City Treasurer Dawes)
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8. Disclosure of Agreement of Settlement and General Release - Heidi Kirkendoll; San Bernardino County Superior Court Case No. CIVDS1933311 (City Attorney McHugh)
9. Report regarding Emergency Resolution No. 8065 proclaiming the existence of a local emergency in response to COVID-19 (Coronavirus Disease 2019) (Interim Fire Chief Sessler)
10. Approve Resolution No. 8289 Delegating Investment Authority to the City Treasurer Pursuant to Government Code Section 53607 (Management Services / Finance Director Garcia)
11. Approve Resolution No. 8306 approving the destruction of certain public records (Management Services/Finance Director Garcia)
12. Approve a request for the serving and consumption of alcoholic beverages at Sylvan Park for Carol Jones' Retirement Party to be held on June 18, 2022, and determination that approval of the request is exempt from environmental review pursuant to Section 15061(b)(3) of the state’s guidelines implementing the California Environmental Quality Act (Assistant City Manager Boatman)
13. Approve a modification to the purchase order with Universal Protection Service, LP, Doing Business As: Allied Universal Security Services to amend the total to an amount not to exceed $81,071.39, and to the purchase order with Executive Facilities Services to amend the total to an amount not to exceed $94,916.70 (Assistant City Manager Boatman)
14. Approve the Planning Commission's Report on its finding of conformance with the City of Redlands General Plan, determination that approval of the proposed Purchase and Sale agreement is exempt from review under the California Environmental Quality Act, approval of a Purchase and Sale Agreement with San Bernardino Valley Municipal Water District for the acquisition of Assessor's Parcel No. 0168-091-07-0000 in the amount of $22,500, and approval of an additional appropriation in the same amount for the purchase (Assistant City Manager Boatman)
15. Approve Amendment No. 1 to the Agreement with Richard Brady & Associates, Inc. to perform a seismic and structural assessment of the City's water infrastructure (Municipal Utilities and Engineering Director Harris)
16. Approve a Fourth Amendment to the Professional Services Agreement with Rincon Consultants, Inc. to continue providing environmental site assessment at the Alabama Street Septage Disposal Ponds, and determine this action is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris)
17. Approve Amendment No. 1 to the Agreement with RK Engineering Group, Inc. to perform Engineering and Traffic Surveys on various streets within City limits (Municipal Utilities and Engineering Director Harris)
18. Receive and File the Redlands Police Department's Military Equipment Use Policy (Police Chief Catren)
19. Approve Side Letter between the City and the Redlands Association of Department Directors (Assistant City Manager McConnell)
20. Authorize issuance of a Proclamation commending Maestro Frank Paul Fetta for over 40 years of service to the Redlands Bowl (Mayor Barich)
J. Communications
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1. Video Series: Redlands Making Progress (Public Information Officer Baker)
2. Discussion and possible action relating to the use of State and Local Fiscal Recovery Funds (SLFRF) through the American Rescue Plan Act (ARPA) (Assistant City Manager McConnell)
3. Presentation of the City of Redlands Strategic Plan for FY 22-23 through FY 27-28 and consideration of Resolution No. 8315 (Assistant City Manager McConnell)
4. Receive and file the Annual Report from the Measure T Citizens' Oversight Committee for FY 2020-21 (Management Services/Finance Director Garcia)
K. Public Hearings
1. Consideration of Resolution Nos. 8313 and 8314
(Mayor to declare meeting open as a public hearing)
PUBLIC HEARING to consider Resolution No. 8313 - Calling a special election of the question of levying special taxes within the territory to be annexed to Community Facilities District No. 2004-1; and Resolution No. 8314 - Declaring results of special election of Annexation No. 26 to Community Facilities District No. 2004-1 (Municipal Utilities and Engineering Director Harris)
A.
L. New Business
1. Consideration of an agreement for professional auditing services with The Pun Group to provide auditing services for fiscal years ending June 30, 2022, 2023 and 2024 with the option to extend to 2025 and 2026 with a total agreement amount not-to-exceed $318,549 (Management Services/Finance Director Garcia)
2. Consideration of a contract with R-Dependable Construction Inc. in the amount of $888,800.00 for the 2021 CDBG Joslyn Center Renovation Project No.FCS10252021ER, designate $164,551.27 from the Parks and Recreation category of the Nevada Palmetto Grove Proceeds, approve an additional appropriation in the amount of $563,695.49, and determine that the project is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Assistant City Manager Boatman) M. Individual Council Member Announcements and/or Reports on Activities (No collective discussion or action.)
N. Adjournment
The next regular meeting of the City Council will be held on April 5, 2022 If you challenge any proposed development entitlement listed on this agenda 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 this public hearing.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact Goutam Dobey, of the Municipal Utilities and Engineering Department at (909) 798-7584 ext 2. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
(28 CFR 35.102-35.104 ADA Title II)
Any writings or documents distributed to a majority of the City Council regarding an open session agenda March 15, 2022
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item less than 72 hours before this meeting are available for public inspection at the City Clerk's Office or at the dais of the City Clerk once the open session begins.
Staff reports or other written documentation relating to items referred to on the agenda are available at the A. K. Smiley Public Library, 125 West Vine Street, Redlands, California, and on the City’s website referenced below.
Regular meetings are televised live on Redlands TV Channel 3 (Spectrum) and Channel 35 (Frontier) and re-broadcasted at 7:00 P.M. the following Wednesday, Friday and Sunday; and at 9:00 A.M. Thursday, Saturday and Monday. Agendas, staff reports and minutes of the City Council of the City of Redlands are available on the Internet:
http://www.cityofredlands.org
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City Council Meeting G. 1.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Presentation of Lifesaving Awards to Redlands Residents Nicholas Miller, and Kacey Reineman for their heroic actions in saving a woman from a house fire (Interim Chief Sessler)
RECOMMENDATION:
For this evening's City Council meeting, Interim Fire Chief Rich Sessler will present two Lifesaving Awards to residents Nicholas Miller and Kacey Reineman for their actions in saving a woman from a house fire.
DISCUSSION:
On January 20, 2022, the Redlands Fire Department was dispatched to a residential fire at 30520 Palo Alto Drive in Redlands. The structure was a 2-story house set back about 200 feet from the street. Prior to the arrival of fire crews, neighbor Kacey Reineman was the first to spot the smoke coming from the home. She stopped to investigate if anyone was in the home or if anyone had called 911 before reporting the fire. Neighbor Nicholas Miller and another gentleman heard a woman calling for help from the 2nd story window. All three jumped into action to find a ladder. Once a ladder was found the second gentleman held the ladder in place while Nicholas Miller climbed up to the window, helped the woman out, and carried her over his shoulder down the ladder to safety. Soon thereafter, units arrived and fully extinguished the fire.
Interim Fire Chief Sessler and the Fire Department would like to present a Lifesaving Award to Nicholas Miller for his selfless and brave act in rescuing a woman from her burning home. Interim Fire Chief Sessler would also like to present a Lifesaving Award to Kacey Reineman for her caring actions in stopping to make sure everyone was safe and assisting with the rescue. If not for their actions, the homeowner might not have made it out in time. Mr. Miller and Ms. Reineman embody the true meaning of heroes and caring neighbors.
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City Council Meeting I. 1.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve minutes of the regular meeting of March 1, 2022 (City Clerk Donaldson)
MOTION:
I move to approve the minutes of the regular meeting of March 1, 2022.
Attachments
Regular Meeting Minutes of March 1, 2022
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MINUTES
Regular meetings of the City Council and the Board of Directors of the Successor Agency of the former Redevelopment Agency of the City of Redlands held in the Council Chambers, Civic Center, 35 Cajon Street, on March 1, 2022 at 5:00 P.M.
Present: Paul Barich, Mayor
Eddie Tejeda, Mayor Pro Tempore
Denise Davis, Council Member
Jenna Guzman-Lowery, Council Member
Mick Gallagher, Council Member
Staff: Charles M. Duggan, Jr., City Manager; Dan McHugh, City Attorney; Robert Dawes, City Treasurer; Jeanne Donaldson, City Clerk; Janice McConnell, Assistant City Manager; Chris Boatman, Assistant City Manager; Carl Baker, Public Information Officer; Chris Catren, Police Chief; Danielle Garcia, Management Services/Finance Director; Brian Desatnik, Development Services Director; John Harris, Municipal Utilities and Engineering Director; Rich Sessler, Intermin Fire Chief
Mayor Barich called the meeting to order and explained that comments could be presented in-person, via Zoom, via cell phone or landline. He offered the public an opportunity to provide comment on any item on the agenda for the closed session.
PUBLIC COMMENT
None forthcoming
CLOSED SESSION
Conference with legal counsel: Existing Litigation - Government Code §54956.9(d)(1) (City Attorney McHugh)
One Case:
a. Chase Management, Inc vs. City of Redlands, San Bernardino Superior Court Case No.CIVDS 1907758
Conference with labor negotiator - Government Code §54957.6 (Mayor Barich, and Council Member Gallagher)
Agency Negotiators: Paul Barich, and Mick Gallagher
Employment Organization: Redlands Professional Firefighters Association (RPFA)
RECONVENE CITY COUNCIL MEETING
The meeting reconvened at 6:00 P.M.
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2021 By-District Council Member Election Boundaries
Mayor Barich opened the public hearing and called on Development Services Director Desatnik who explained the Council must adopt, by April 17, 2022, boundaries for the five City Council Member election districts based on 2020 U.S. Census data. The data within the five districts must be substantially equal in population and comply with Federal and State laws with regard to drawing district election boundaries. This was the 4th public hearing and provided the Council an opportunity to select a preferred map and introduce Ordinance No. 2931 amending Chapter 2.03.030 of the Redlands Municipal Code related to the adjustment of election district boundaries. Todd Tatum, of National Demographics Corporation (NDC), presented a brief recap of the redistricting process, reviewed the eight draft maps and the demographic data associated with each one, including those from NDC and the public (listed as: NDC 101, 102, 102b, 102c and 103, Public 1, Public 1b and Public 2).
As public comment, Dennis Bell did not see marked differences between the maps, and he recommended District 5 should be adjusted to include part of the downtown area. Michael Tamony participated in drawing one of the public maps and appreciated the website's user-friendly tools. He advocated for Public Map 1 but found Public Map 1b to be an acceptable second option. Randall Morris voiced his disappointment that Council Members were not working for the community as a whole, and he suggested the City move back to at-large elections. Brian Seghers wasn't convinced of the need to change the existing boundaries but of all the proposed options, he suggested Public Map 1b was the best choice. S. Garcia and Sawn M, residents of District 1, complained that much of the agricultural land of District 1 was being consumed by warehouses. They thought Map 102 best addressed their concerns by bringing apartment communities into a larger diverse region so as not to be overshadowed by business development. Lorraine Enriquez liked Public Map 1, stating it offered more equity across boundaries, and it didn't favor one voting block over another.
Mayor Pro Tem Tejeda supported Public Map 1, as he thought it did the best job of creating compact, clean lines, and he also saw the advantages of Map 1b, which offered a lower deviation number and provided for equal representation. Council Member Guzman-Lowery supported Public Map 1 because it maintained communities of interest while increasing equity and accessibility to all citizens. Council Member Davis said this was a very difficult choice, and she saw the pros and cons of each one presented, but her preference was for Public Map 1, Map 1b or even the current map. She expressed concerns, as did members of the public, about the growing number of warehouses, but said it was not simply a district issue but an issue facing the whole City. Mayor Barich and Council Member Gallagher were comfortable keeping the current map, appreciated how the existing boundaries cut across the north-south divide and pointed out the public was already familiar with the existing district boundaries.
On motion of Council Member Mick Gallagher, seconded by Mayor Paul Barich, the City Council failed to approve the existing district boundary map as the preferred map, due to lack of a majority.
Vote: 2 -3 Failed
Nay: Mayor Pro Tempore Eddie Tejeda, Council Member Denise Davis, Council Member Jenna Guzman-Lowery
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Jenna Guzman-Lowery
On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved the selection of Public Map 1 as the Preferred Map; and on motion of Mayor Pro Tempore Eddie Tejeda, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously introduced Ordinance No. 2931 amending Chapter 2.03.030 of the Redlands Municipal Code relating to the adjustment of current City Council Member Election District Boundaries, with the second reading of the ordinance to occur on March 15, 2022.
Vote: 5 - 0 Passed
Pledge of Allegiance
Mayor Barich provided an invocation which was followed by the pledge of allegiance to the American flag.
CLOSED SESSION REPORT
City Attorney McHugh announced that no reportable action was taken during the closed session.
PUBLIC COMMENT
Public comments were presented either in-person, via Zoom, via cell phone or landline.
Replanting Lugonia Grove - Dennis Bell raised concerns with the recently approved replanting of Lugonia Grove and thought if any of the City's groves were replanted, it should be the grove at Prospect Park.
CONSENT CALENDAR
Minutes
On motion of Mayor Pro Tempore Eddie Tejeda, seconded by Council Member Denise Davis, the City Council unanimously approved the minutes of the regular meeting of February 15, 2022.
Vote: 5 - 0 Passed
Proclamation American Red Cross Month
On motion of Mayor Pro Tempore Eddie Tejeda, seconded by Council Member Denise Davis, the City Council unanimously approved the issuance of a Proclamation declaring the month of March 2022 as American Red Cross Month.
Vote: 5 - 0 Passed
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Proclamation Women's History Month
Council Member Davis and Council Member Guzman-Lowery cosponsored the Proclamation declaring the month of March 2022 as Women's History Month and encouraged everyone to read the Proclamation, which coincides with the United Nations' sponsorship of International Women's Day on March 8th as a time to commemorate women's rights and peace.
On motion of Mayor Pro Tempore Eddie Tejeda, seconded by Council Member Denise Davis, the City Council unanimously approved the issuance of a proclamation declaring the month of March 2022 as Women's History Month.
Vote: 5 - 0 Passed
Resolution No. 8310 Remote Teleconference Meetings
Council Member Davis and Mayor Pro Tem Tejeda expressed their support of continuing to hold remote teleconference meetings by the City Council and all Boards, Commissions, and Committees of the City in accordance with Assembly Bill 361 (2021) for a period of 30 days. This resolution provides options and allows people more flexibility while still attending to the business of the City.
On motion of Mayor Pro Tempore Eddie Tejeda, seconded by Council Member Denise Davis, the City Council unanimously approved Resolution No. 8310 authorizing remote teleconference meetings by the City Council and all Boards, Commissions, and Committees of the City in accordance with Assembly Bill 361 (2021) for a period of 30 days.
Vote: 5 - 0 Passed
City-wide Janitorial Services
On motion of Mayor Pro Tempore Eddie Tejeda, seconded by Council Member Denise Davis, the City Council unanimously approved an agreement with Genesis Staffing Firm for City-wide janitorial services in the amount of $21,400.75 per month for a term of six (6) months with a total agreement amount not-to-exceed $128,404.51.
Vote: 5 - 0 Passed
Sanitary Sewer Collection System Trunk Line Emergency Procurement
On motion of Mayor Pro Tempore Eddie Tejeda, seconded by Council Member Denise Davis, the City Council unanimously agreed to receive and file a Municipal Utilities and Engineering Department Emergency Procurement for the construction of a Sanitary Sewer Collection System Trunk Line; and approved an additional appropriation of $109,172.
Vote: 5 - 0 Passed
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COMMUNICATIONS
American Rescue Plan Act SLFRF
Maira Durazo, Grants Coordinator, provided details of staff's recommendations relating to the use of State and Local Fiscal Recovery Funds (SLFRF) through the American Rescue Plan Act (ARPA). Redlands’ total allocation of the $350 Billion SLFRF funding through ARPA is $11,508,106. The City has received the first installment with the second installment expected to be released by midyear 2022. The categories listed to receive funds included: Pandemic Response, Assistance to Households, Small Business Economic Recovery, Services for Unhoused Persons and Community Water Rate Reduction. Staff also offered an overview of various scenarios pertaining to Premium Pay of Eligible Essential Workers and recommended the Council consider the remaining SLFRF fund amount of $4,558,106 for discussion and vote to determine the funding allocation pertaining to Premium Pay and Replacing Lost Public Sector Revenue.
Mayor Pro Tem Tejeda suggested revising certain funding amounts and program timelines as recommended for allocation to the different categories, and it was agreed to have staff rework the allocations and bring the matter back for further examination by Council at the next meeting. City Manager Duggan confirmed that staff will adjust the numbers and incorporate Mayor Pro Tem's suggestions and bring back for Council's review on March 15, 2022. Council Members Davis and Guzman-Lowery raised questions related to the dollar amounts and different options listed under premium pay, and they wondered whether Council could consider a compromise proposal for the Premium Pay allocations. City Manager Duggan clarified the Council can determine the funding amounts they deem are appropriate and are not limited to the suggestions as seen in the staff report. He was pleased to announce the City was in the process of hiring a Homelessness Project Coordinator.
FY 2021-22 Mid-Year General Fund Budget Review
City Manager Duggan painted a broad overview of the Mid-Year budget, indicating the City was in good financial shape, was continuing to monitor that, and he thanked the Department heads for watching their expenditures so closely. Management Services/Finance Director Garcia stated the overall results for fiscal year 2020-21 were favorable. There were higher than anticipated revenues in the amount of roughly $4.75 million and there were savings of approximately $1.4 million due to salary savings and other cost controls. As a result, the ending single year surplus for the year, which was originally projected at $150,177, increased to $6,308,061 due to this roughly $6.15 million favorable variance. Fiscal year 2021-22 saw significant transactions related to property sales and purchases; an unanticipated surge in sales tax revenue; and additional appropriations from the unassigned fund balance for major projects. The passage of Measure T and the state and federal aid the City received added to a favorable economic outlook.
As adopted, the General Fund Budget for FY 2021-22 anticipated a balanced budget, with revenues commensurate with expenditures (or a $0 single year surplus/deficit); and a residual fund balance (unassigned) of $16,635,949. She noted in October 2021, the City negotiated a property sale in the amount of roughly $46 million, with $43.4 million going into the General Fund. This was planned to cover the remaining $11.4 million for the General Fund’s obligation in the purchase of 300 East State Street. The remaining $32.2 million was designated for a strategic reserve. In December 2021, the City entered into CC_SA_March 1, 2022
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million was designated for a strategic reserve. In December 2021, the City entered into negotiations to purchase the former Kmart property located at 1625 West Redlands Boulevard to serve as the future site of the Redlands Police Department Safety Hall. The purchase price is $16.1 million and this reduced the strategic reserve to $16.1 million. To this reserve, staff recommend the addition of $6,000,000. As a result of the purchase of 300 East State Street, there were additional appropriations made in November 2021 to both revenues and expenditures in order to properly manage the building and its occupants. The net result of these various adjustments was an increase in revenue to the General Fund of roughly $798,000.
City Manager Duggan and staff recommended the following one-time expenditures (including one inspector position that will be ongoing); Redlands Bowl Improvements of $700,000; Crafton Park Improvement of $376,000; Israel Beal Park Improvements of $90,000; DSD Bldg & Safety Inspector of $22,000 for rest of year; Animal Shelter Parking Lot of $200,000; Donation-Museum of Redlands of $1,000,000. Council Members expressed their appreciation of staff's efforts that went into this very thorough report.
Council Member Gallagher added he was continuing to work with staff to make sure the City was in receipt of all Measure T sales tax revenue it was due. As public comment, Dennis Bell opposed the recommendation to donate $1 million to the Redlands Museum, and he thought non-profit groups, in general, should be engaged in more fundraising rather than asking for a hand-out from the City.
On motion of Mayor Pro Tempore Eddie Tejeda, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously agreed to appropriate $2,388,000 of Unassigned Fund Balance, resulting from Fiscal Year 2020-21 surplus according to Schedule 1 provided on Attachment A; directed staff to make the corresponding adjustments to revenue and additions to reserves listed therein; and agreed to receive and file this report.
Vote: 5 - 0 Passed
At-Large Mayoral Election
Mayor Pro Tem Tejeda opened a discussion regarding the position of Mayor being elected at large, and he requested Council consider directing staff to develop two district maps to support an elected Mayor. This would allow the Council and public to discuss new districts, and the possibility of placing the elected Mayor question before the City’s voters on the ballot in November 2022. Council Member offered their perspectives, but all were opposed to the idea at this time. Mayor Pro Tem Tejeda thanked his colleagues for the discussion. As public comment, Dennis Bell raised several questions about how the role of an elected Mayor would be defined, and he suggested the City consider adding term limits for Council Members.
NEW BUSINESS
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Alcoholic Consumption Permit Farm to Fork Dinner Fundraiser
Assistant City Manager Boatman introduced a request from the Armantrout Montessori Education Foundation for the serving and consuming of alcoholic beverages at Heritage Park and the Grove School property for the Farm to Fork Dinner Fundraiser supporting the Armantrout Education Foundation to be held on April 30, 2022.
On motion of Council Member Jenna Guzman-Lowery, seconded by Mayor Pro Tempore Eddie Tejeda, the City Council unanimously determined that approval of the request is exempt from environmental review pursuant to Section 15061(b)(3) of the state’s guidelines implementing the California Environmental Quality Act; and approved the request for the serving and consumption of alcoholic beverages at Heritage Park and the Grove School property for the Farm to Fork Dinner Fundraiser supporting the Armantrout Education Foundation to be held on April 30, 2022.
Vote: 5 - 0 Passed
COUNCIL MEMBER ANNOUNCEMENTS AND ACTIVITIES
Mayor Barich participated in Read Across America with 2nd graders at Mission School Mayor Pro Tem Tejeda attended the Airport Advisory Board meeting.
Council Member Davis was pleased to be a part of Read Across America at Kingsbury Elementary School, and she enjoyed the Soul Food Fest, sponsored by StrongerTogetherNow, held at Ed Hales Park last weekend.
Council Member Guzman-Lowery was excited to share her recent conversations with several people participating in programs at the Holy Name of Jesus, Catholic Community of Redlands. She has met with women, in particular, who have been struggling through difficult times, including those facing homelessness, an economic downturn, and even abuse.
Council Member Gallagher and Mayor Barich
attended the inauguration of Krista L.
Newkirk, the 12th President of the University of Redlands.
ADJOURNMENT
There being no further action required the meeting adjourned at 8:18 P.M. The next regular meeting of the City of Redlands City Council will be held on March 15, 2022.
SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS
Chairman Barich called the meeting to order and offered anyone present the opportunity to address the Board on any subject, not already on the agenda, within the jurisdiction of the Successor Agency.
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PUBLIC COMMENT
None forthcoming
CONSENT CALENDAR
Minutes
On motion of Vice Chair Tejeda, seconded by Board Member Davis, the minutes of the regular meeting of February 1, 2022, were unanimously approved.
Vote: 5 - 0 Passed
ROPS Communication Update
On motion of Vice Chair Tejeda, seconded by Board Member Davis, the Board unanimously agreed to receive and file the Successor Agency Board's communication of the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for July 1, 2022, through June 30, 2023. The action furthers the Successor Agency to the Redevelopment Agency of the City of Redlands’ (Successor Agency) dissolution as an annual ROPS is required by DOF as part of the wind-down of the Successor Agency. The FY 2022-23 ROPS represents the last and final ROPS and will fully defease the two outstanding bonds from the former Redevelopment Agency (2016A & 2016B Tax Allocation Refunding Bonds).
Vote: 5 - 0 Passed
Resolution No. 492 Delegating Investment Authority
On motion of Vice Chair Tejeda, seconded by Board Member Davis, the Board unanimously approved Resolution No. 492 delegating investment authority to the City Treasurer, pursuant to Government Code Section 53607.
Vote: 5 - 0 Passed
ADJOURNMENT
There being no further business, the Successor Agency Board of Directors' meeting was adjourned at 8:19 P.M. The next regular meeting of the Agency will be held on April 5, 2022.
CC_SA_March 1, 2022
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City Council Meeting I. 2.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Authorize issuance of a proclamation declaring March 29, 2022, as Vietnam War Veterans Day (Mayor Barich)
MOTION:
I move to authorize the issuance of a Proclamation declaring March 29, 2022, as Vietnam War Veterans Day.
Attachments
Vietnam War Veteran Day Proclamation
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City Council Meeting I. 3.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Authorize issuance of a proclamation declaring March 31, 2022, as Cesar Chavez Day (Mayor Pro Tem Tejeda)
MOTION:
I move to authorize the issuance of a proclamation declaring March 31, 2022, as Cesar Chavez Day.
Attachments
Cesar Chavez Day 2022
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City Council Meeting I. 4.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve Resolution No. 8312 authorizing remote teleconference meetings by the City Council and all Boards, Commissions, and Committees of the City in accordance with Assembly Bill 361 (2021) for a period of 30 days (Council Member Davis)
MOTION:
I move to approve Resolution No. 8312.
DISCUSSION:
On March 1, the City Council adopted Resolution No. 8310 authorizing remote teleconference meetings by the City Council and all Boards, Commissions, and Committees of the City in accordance with Assembly Bill 361 (2021) for a period of 30 days ending March 31, 2022. AB 361, signed into law on September 16, 2021, amends Government Code Section 54953 to provide the authority and specific requirements for public agencies to hold virtual meetings during a proclaimed state of emergency and remain in compliance with the Brown Act.
In accordance with Government Code Section 54953 (e)(3), the City Council must review the need and make findings for continuing the teleconferencing as authorized by AB 361 at least once every thirty days until the Governor terminates the state of emergency. With the adoption of Resolution No. 8312, the City Council is reaffirming its findings and compliance to AB 361 for an additional 30 days ending April 14, 2022.
SUBMITTED BY:
Council Member Denise Davis
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Attachments
Reso. 8312 Teleconference Meeting
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1 L:\ca\Reso\8312 Teleconference Meeting 3.15.22.docx
RESOLUTION NO. 8312
A RESOLUTION OF THE C ITY COUNC IL OF THE CITY OF REDLANDS
AUTHORIZING REM OTE TE LECONFERENCE M EETINGS BY THE CITY
COUNCIL AND ALL BOARDS, COMMISSIONS, AND COMMITTEES OF THE CITY IN ACCORDANCE WITH ASSEMBLY BILL 361 (2021) FOR A PERIOD
OF THIRTY DAYS
WHEREAS, C OVID-19 (also kno wn as the “Coronavirus Dis ease”) is a respiratory disease that has spread across the globe, with thousands of confirmed cases in California, including within the City of Redlands (“City”); and
WHEREAS, on Janu ary 31, 2020, t he Un ited States Secretary of Hea lth and Hu man Services declared a public health emergency based on the threat caused by COVID-19, and the President of the United States issued a proclamation declaring a national emergency concerning COVID-19 beginning March 1, 2020; and
WHEREAS, in response to COVID-19, the Governor of the State of Ca lifornia issued a proclamation of a state of emergency on March 4, 2020; and
WHEREAS, the City Council of the City adopted a p roclamation of a local emergency related to the COVID-19 virus on March 17, 2020; and
WHEREAS, the C ity is co mmitted to pre serving and fost ering pub lic ac cess, transparency, observation, and participation in m eetings of t he City Council and City bo ards, commissions, and committees (hereafter collectively referred to as “legislative bodies;”) and
WHEREAS, all meetings of the City Council and legislative bodies are open and publi c as required by the Ral ph M. Bro wn Act (“Brown Act”) (Government Code s ection 54950 et seq.), so that any member of the public may attend, observe, and participate in a meaningful way; and
WHEREAS, Government Code section 54953(b)(3) of the Bro wn Act allows a lo cal legislative body to ho ld pub lic m eetings by tel econference and to make pub lic m eetings accessible telephonically or o therwise e lectronically to all memb ers of the pub lic seeking to attend and to address the local legislative body, as long as the following requirements are met:
1. Each teleconference location from which a member is par ticipating is no ticed on the agenda;
2. Each teleconference location is accessible to the public;
3. Members of the public must be able to address the body at each teleconference location;
4. At least one member of the legislative body must be physically present at the location specified in the meeting agenda; and
5. During teleconference meetings, at least a quorum of the memb ers of the lo cal body must participate from locations within the local body’s territorial jurisdiction; and
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WHEREAS, the Brown Act, as amended by AB 361 (2021), at Government Code section 54953(e), allows for remote observation and participation in meetings by members of a legislative body and members of the public without compliance with the requirements of Government Code section 54953(b)(3), subject to certain conditions; and
WHEREAS,
the initial required condition of Government Code section 54953(b)(3) is a declaration of a state of em ergency by the Gov ernor p ursuant to the Ca lifornia Em ergency Services Act at Gov ernment Code s ection 8625, pro claiming the existen ce of cond itions of disaster or of extreme peril to the safety of persons and property within the state and within the boundaries of the City, caused by conditions as described in Government Code section 8558; and
WHEREAS, the Governor’s proclamation of a state of e mergency includes area within the jurisdictional boundaries of the City; and
WHEREAS, Government Code section 54953(e)(3)(A-B), added by AB 361, provides an a lternative to h aving pu blic m eetings in accordance wi th Gov ernment Co de S ection 54953(b)(3) when the City Council has r econsidered the circumstances of the COV ID-19 state of emergency and that the following circumstances exist:
1. The state of emergency as a result of COVID-19 continues to directly impact the ability of the members of City Council and the members of the City’s boards, commissions, and committees to meet safely in person; and
2. The State of California and the County of San Bernardino con tinue to recommend measures to promote social distancing; and
WHEREAS, Gov ernment Code S ection 54953(e) fu rther requ ires that state or lo cal officials have imposed, or reco mmended, measures to p romote social d istancing, or the legislative body finds that m eeting in person would present an imminent risk to the h ealth or safety of attendees; and
WHEREAS, such conditions now exist in the City in that (i) state and local officials do recommend social distancing measures, and (ii) emergency conditions evidenced by COVID-19 and its variants create ongoing COVID-19 cases, hospitalizations, and deaths, such that m eeting in person would present imminent risk to health or safety of attendees; and
WHEREAS, the City Council affirms that it will allow for observation and participation by City Coun cil memb ers as well as bo ard, co mmission, and commi ttee members and the public, via Zoom, or other appropriate technology, in an effort to protect the cons titutional and statutory rights of all attendees; and
WHEREAS,
Government Code Section 54953 (e)(3) further requires that the City Council review the need and make findings for continuing the teleconferencing as authorized by AB 361 at least once every thirty days until the Governor terminates the state of emergency;
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDLANDS HEREBY RESOLVES AS FOLLOWS:
Section 1. The abo ve recitals are true and correct and are incorporated herein by th is reference.
Section 2. The City Council finds that the state of emergency conditions related to COVID-19 as set forth in the Governor’s and City’s proclamations of emergency are on-going.
Section 3. The City Council fu rther finds th at State and coun ty officials recommend social distancing conditions causing imminent risk to attendees as described above exist.
Section 4. The City Council hereby recognizes and affirms the existence and conditions of a state of em ergency as proclaimed by the Gov ernor, and the City, and affirms, au thorizes, and proclaims the existence of a local emergency throughout the City.
Section 5. The City Co uncil finds that the state of em ergency as a result of COVID-19 continues to directly impact the ability of members of the City Council and the members of the City’s b oards, c ommissions, and co mmittees to m eet safely in per son and such fac t creates an imminent health risk to such members.
Section 6. The City Council hereby authorizes the City Council, and all of the boards , commissions, and committees of the City, to conduct th eir meetings without compliance with Government Code s ection 54953 (b)(3), and to inst ead comply w ith the remote m eeting requirements as authorized by Government Code section 54953(e).
Section 7. The City Manager and City Clerk are authorized and directed to take all actions reasonably necessary to carry out the intent and purpose of this Resolution, including, conducting open and public meetings remotely in accordance with Government Code section 54953(e), and other applicable provisions of the Brown Act, for a ll City Coun cil meetings, and all boards , commissions, and committee meetings of the City.
Section 8. This Resolution shall take effect immediately upon its adoption and shall be effective until either (i) April 14, 2022 or (ii) such time as the City Council adopts a Subsequent Resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the City Council and all City legislative bodies may continue to meet remotely, without compliance with Gov ernment Code s ection 54953(b )(3), but otherwi se as p ermitted by Government Code section 54953(e).
ADOPTED, SIGNED AND APPROVED this 15th day of March, 2022.
________________________
ATTEST: Paul T. Barich, Mayor
____________________________
Jeanne Donaldson, City Clerk
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City Council Meeting I. 5.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve recommendation for an appointment to the Parks and Recreation Advisory Commission (Mayor Barich and Council Member Guzman-Lowery)
MOTION:
I move to appoint Justin Weekley to serve the remainder of a four-year term on the Parks and Recreation Advisory Commission ending January 6, 2026.
RECOMMENDATION:
It is recommended by Mayor Barich and Council Member Davis that the City Council consider this appointment to the Parks and Recreation Advisory Commission. Pursuant to the Redlands Municipal Code, appointments to this commission are made by the Mayor and approved by the City Council. However, Mayor Barich has expressed his desire to rotate recommendations for commission/board appointments among the City Council Members; therefore, Council Member Guzman-Lowery has been delegated authority by Mayor Barich to make the recommendation for this appointment.
DISCUSSION:
One vacant seat exists on the Parks and Recreation Advisory Commission due to Commissioner Maryn Wells' resignation. A public notice requesting interested residents to submit an application for the Parks and Recreation Advisory Commission was issued in January of this year. In addition, the public notice was concurrently aired on Redlands TV and posted at the community bulletin board at the A. K. Smiley Public Library. The local newspapers also received distribution of the public notice. Five applications were received in response.
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The Parks and Recreation Advisory Commission consists of seven members as follows:
Edward Ferrari
Douglas Gonzales
Adam Hebden
Earl Ryan Johnson
Joanne Lessard
Mu Choi (student)
Vacant
ALTERNATIVE:
The City Council may choose not to support the recommendation and direct staff to seek further applications for consideration.
SUBMITTED BY:
Jennifer Macias, Management Analyst
REVIEWED BY:
Charles M. Duggan, Jr., City Manager
Janice McConnell, Assistant City Manager
Attachments
Parks and Recreation Public Notice
Parks and Recreation Applications Redacted
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Doc ID: ea729726411931f145db9b1482b5887ba9cd2251
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City Council Meeting I. 6.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve adoption of Ordinance No. 2931 - Amending Chapter
2.03.030 of the Redlands Municipal Code relating to the adjustment of current City Council Member Election District Boundaries (Development Services Director Desatnik)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to adopt Ordinance No. 2931.
RECOMMENDATION:
It is recommended that the City Council adopt Ordinance No. 2931, amending Chapter 2.03.030 of the Redlands Municipal Code relating to the adjustment of current City Council Member Election District Boundaries.
DISCUSSION:
The proposed ordinance and staff report prepared for the introduction of this ordinance are available in the City Clerk's office.
ALTERNATIVES:
The City Council may elect to postpone adoption of this ordinance until April 5, 2022. The deadline to adopt the boundaries for the five City Council Member election districts, based on 2020 U.S. Census data, is April 17, 2022,
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STRATEGIC PLAN:
Not Applicable
SUBMITTED BY:
Jeanne Donaldson, City Clerk
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:
Jeanne Donaldson, City Clerk
Fiscal Impact
Discussion:
Codification: $22/per page affected by the change
Legal Publication: $3,500
Attachments
Ordinance No. 2931
Council Member Electoral District Boundaries Map
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1 C:\Users\bclUser\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@E42911C0\@[email protected] ORDINANCE NO. 2931
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING CHAPTER 2.03
OF THE REDLANDS MUNICIPAL CODE ADJUSTING THE COUNCIL
MEMBER ELECTORAL DISTRICT BOUNDARIES
WHEREAS, Ordinance No. 2931 would amend Chapter 2.03 of the Redlands Municipal Code adjusting Council Member electoral district boundaries; and WHEREAS, the U.S. Census Bureau (“Bureau”) is required by Article I, Section 2, of the U.S. Constitution to conduct an accurate count of the population every ten years; and WHEREAS, California Elections Code Section 21600 et seq. requires that “following each federal decennial census for a city whose council is already elected using district-based elections, the council shall, by ordinance or resolution, adopt boundaries for all of the council districts of the city so that the council districts shall be substantially equal in population as required by the United States Constitution;" and
WHEREAS, the City Council held public hearings on September 27, 2021, January 18, 2022, February 15, 2022, and March 1, 2022 with a community forum held on September 29, 2021, to present information from the City’s demographic consultant relating to the redistricting process and state and federal redistricting criteria and communities of interest, including the California Elections Code, the Voting Rights Act and the United States Constitution, heard public testimony, and directed staff and the City's demographic consultant to prepare draft district plans for consideration; and
WHEREAS, pursuant to the provisions of the Fair Maps Act of 2019, as amended in 2020 and codified at California Elections Code section 21600 to 21609, after giving consideration to those provisions and applicable decisions of the courts, the City Council hereby adjusts, changes, and establishes the boundaries of the City Council electoral districts as set forth on the Preferred Map considered by the City Council at its public hearing on March 1, 2022, and reflected in Exhibit “A” hereto, and they shall constitute and are hereby established as the boundaries of the City Council districts of the City of Redlands for subsequent elections until further readjustment is required by law; and
WHEREAS, notwithstanding any other provision of this Ordinance, and pursuant to California Elections Code section 21606, subdivisions (a) and (b), each of the City Council Members in office at the time this Ordinance takes effect shall continue in office until the expiration of the full term to which he or she was elected and until his or her successor is qualified, and any vacancy in a term currently underway shall be filled based on the districts in effect at the time the current Council Members were elected; and
WHEREAS, all information in the staff reports, maps, presentations, City Council discussion and public testimony referenced above is hereby incorporated into this decision and serves as evidentiary basis for these findings and legislative decision; and
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2 C:\Users\bclUser\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@E42911C0\@[email protected] WHEREAS, at the public hearing of March 1, 2022, after considering the verbal and written testimony and comments of the members of the public, the City staff, and the City’s consultant who was retained in connection with the establishment of the districts, among the reasons articulated for the selection of the Preferred Map to be identified as the City Council’s selected map for purposes of this Ordinance were the following:
1. Compliance with the federal requirements of equal population and the Voting Rights Act
2. Geographically contiguous
3. Undivided neighborhoods and “communities of interest” (socio-economic geographic areas that should be kept together)
4. Easily identifiable boundaries
5. Compact (do not bypass one group of people to get to a more distant group of people)
6. Shall not favor or discriminate against a political party
7. Minimize the number of voters delayed from voting in 2022 to 2024 due to redistricting
8. Respect voters’ choices / continuity in office
9. Future population growth
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN AS FOLLOWS:
Section 1. Section 2.03.030 of the Redlands Municipal Code, titled “Establishment of City Council Electoral Districts,” is hereby amended to read as follows:
“2.03.030: ESTABLISHMENT OF CITY COUNCIL ELECTORAL DISTRICTS:
A. Members of the City Council shall be elected on a by-district basis from the five Council districts as hereby established in the City of Redlands. The boundaries and identifying number of each district shall be as described on the Council district map attached to the ordinance codified in this chapter as Exhibit “A” and incorporated herein by this reference.
B. The Council districts specified in subsection A of this section shall continue in effect until they are amended or repealed in accordance with law.”
Section 2. The
adoption of this Ordinance is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the State Guidelines implementing CEQA, which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This Ordinance relates exclusively to the organizational or administrative activities of the City and will not result in direct or indirect changes in the environment. Therefore, there is no possibility that adopting this Ordinance will have a significant effect on the environment. Further, and additionally, the City Council finds this Ordinance to be categorically exempt pursuant to Section 15320 of the CEQA Guidelines (Class 20, changes in
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3 C:\Users\bclUser\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@E42911C0\@[email protected] organization of local government agencies) because the changes do not change the geographical area in which previously existing powers of the City are exercised. Therefore, no environmental analysis is required.
Section 3. This Ordinance is adopted following four noticed public hearings as required by Election Code section 61607.1.
Section 4. The Mayor shall sign this Ordinance and the City Clerk shall certify to the adoption of this Ordinance and shall cause it, or a summary of it, to be published once in the Redlands Daily Facts, a newspaper of general circulation within the City, and thereafter, this Ordinance shall take effect as provided by law.
_____________________________
Paul T. Barich, Mayor
ATTEST:
___________________________
Jeanne Donaldson, City Clerk
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4 C:\Users\bclUser\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@E42911C0\@[email protected] I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the _______ day of _____ 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
Jeanne Donaldson, City Clerk
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5 C:\Users\bclUser\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@E42911C0\@[email protected] EXHIBIT “A”
MAP OF PROPOSED ELECTORAL DISTRICT
[ATTACHED]
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City Council Meeting I. 7.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve Resolution No. 8309 establishing a Statement of Investment Policy and Rescinding Resolution No. 8035 (City Treasurer Dawes)
MOTION(S):
I move that the City Council approve Resolution No. 8309 establishing the City's Statement of Investment Policy and Rescinding Resolution No. 8035 as recommended by the City Treasurer.
RECOMMENDATION:
The City Treasurer recommends that the City Council approve Resolution No. 8309 establishing the City's Statement of Investment Policy and Rescinding Resolution No. 8035.
DISCUSSION:
The investment of City funds is governed by Government Code sections 53600-53610. The purpose of the City's investment policy is to provide guidance for the prudent investment of the City's idle liquidity, to maintain compliance with applicable codes and statutes and to observe investment portfolio guidelines that reflect the City's investment strategies and goals. Accordingly, Government Code Section 53646 provides that the City's investment policy may be reviewed on an annual basis to ensure that it reflects current state law, internal controls, and overall portfolio management approach.
Staff is currently recommending that, in the event of a prolonged absence or vacancy in the Treasurer's position, the City Council have the option to engage the services of one or more external investment managers to assist in the management of the City's investment portfolio. Staff and the Treasurer discussed this option, and, while realizing this is not the most cost effective means of supporting the Treasurer's investment function, do believe this is the best
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solution until such time that staff resources can be developed to adequately make investment decisions in place of the Treasurer, should the situation require it.
Investment Policy changes are referenced in red and italicized font in the attachment.
ALTERNATIVES:
The City Council may make alternative suggestions to the City Treasurer in respect to percentages, allowable investments, and/or changes to the policy, but any change would be governed by the corresponding Government Code Section.
STRATEGIC PLAN:
Not Applicable
SUBMITTED BY:
Danielle Garcia, Management Services/Finance Director
RECOMMENDED BY:
Robert Dawes, City Treasurer
REVIEWED BY:
Charles M. Duggan, Jr., City Manager
Janice McConnell, Assistant City Manager
Daniel J. McHugh, City Attorney
PREPARED BY:
Aimee Hoover, Revenue Supervisor
Fiscal Impact
Discussion:
There is no direct fiscal impact associated with approval of Resolution No. 8035 establishing the City's Investment Policy.
Attachments
Resolution 8309
Investment Policy with Revisions
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1 L:\ca\Reso\8309 Annual Investment Policy.doc
RESOLUTION NO. 8309
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
ESTABLISHING A STATEMENT OF INVESTMENT POLICY AND RESCINDING RESOLUTION NO. 8035
WHEREAS, pursuant to Government Code sections 41001 through 41007, the City Treasurer shall comply with all laws governing the deposit and securing of public funds; and
WHEREAS, investment guidelines and procedures are required to administer the daily investing of the City’s surplus cash; and
WHEREAS, an investment policy serves as the foundation of a local agency’s investment goals and priorities; and
WHEREAS, AB 2853 (2004) amended Government Code section 53646, making the annual review and approval of investment policies of local agencies optional, which was previously compulsory; and
WHEREAS, from time to time the policies related to investing need to be revised to reflect investment instrument changes, economic conditions, and financial market considerations;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS:
Section 1. The City Council herby adopts the Statement of Investment Policy (“Policy”) attached hereto as Exhibit “A”.
Section 2. This Resolution and the Policy established by this Resolution, shall become effective, March 15, 2022.
Section 3. That Resolution No. 8035 is hereby rescinded.
ADOPTED, SIGNED AND APPROVED this 15th day of March, 2022.
___________________________
Paul T. Barich, Mayor
ATTEST:
___________________________
Jeanne Donaldson, City Clerk
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I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 15th day of March, 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_________________________________
Jeanne Donaldson, City Clerk
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EXHIBIT “A”
STATEMENT OF INVESTMENT POLICY
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Revised February 2022
STATEMENT OF INVESTMENT POLICY
FOR THE CITY OF REDLANDS, CALIFORNIA
______________________________________________________________________________
1.0 INTRODUCTION
This Investment Policy (“Policy”) provides formalized framework for the prudent inve stment of unexpended cash of the City of Redlands (“the City”) and its related authorities and agencies .
The City’s policy is to invest public funds in a manner which seeks to provide high investment return consistent with the public trust and the prioritized objectives of safety, liquidity and yield, while meeting the City’s daily cash flow requirement s and conforming to all state and local statutes governing the investment of public funds.
2.0 SCOPE
This Policy applies to all monies under the direct oversight of the City Treasurer, including those of the City, the Successor Agency to the former Redevelopment Agency of the City of Redlands, the Redlands Public Improvement Corporation and the Redlands Financing Authority. This Policy is generally applicable to bond proceeds with consideration given to specific provisions of each issuance. Reports of the investment of bond proceeds are summarized quarterly by the City Treasurer and are attached to the Treasurer's quarterly report of the pooled investment fund. The employees' retirement and deferred compensation funds are not included in this Policy.
3.0 PRUDENCE
Investments shall be made with judgment and care -- under circumstances then prevailing -- which persons of prudence, discretion and intellige nce 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.
3.1 The standard of prudence to be used by investment officials s hall be the "prudent investor standard” as defined in 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 exer cising 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.
4.0 OBJECTIVES
The City's cash management system is designed to accurately monitor and forecast revenues and expenditures thus enabling the City Treasurer to invest funds to the fullest extent possible. The City Treasurer maintains a divers ified portfolio to accomplish the primary objectives of safety, liquidity, and yield (in that order of priority).
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Revised February 2022
4.1 Safety: The safety/risk associated with an investment refers to the potential loss of principal, accrued interest or a combination of t hese. The City seeks to mitigate credit risk by prequalifying and continual monitoring of financial institutions with which it will do business, and by careful scrutiny of the credit worthiness of the investment instruments as well as the institutions. The City seeks to mitigate rate risk through diversification of instruments as well as maturities.
4.2 Liquidity: The portfolio will be structured with sufficient liquidity to allow the City to meet anticipated cash requirements. This will be accomplishe d through diversity of instruments to include those with active secondary markets, those which can match maturities to expected cash needs, and the State Local Agency Investment Fund (“ LAIF”) with immediate withdrawal provision.
4.3 Yield: A competitive market rate of return is the third objective of the City’s investment portfolio after the fundamental requirements of safety and liquidity have been met.
5.0 DELEGATION OF AUTHORITY
California Government Code Section 53607 provides the authority for the City Council to invest the funds of the City or to delegate the full responsibility to the treasurer of the City.
5.1 City Council: By r esolution, the City Council delegates authority to the City Treasurer for invest ing C ity funds in accordance with California Government Code Section 53600, et. seq.
5.2 City Treasurer: The execution of investment transactions on a daily basis will be conducted by the City Treasurer. In the event of a prolonged absence or vacancy in the Treasurers position, the City Council may direct staff to engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external investment managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy.
Such managers must be registered under the Investment Advisers Act of 1940. The City Treasurer has established a system of controls and a segregation of responsi bilities of investment functions to assure maintenance of internal control over the investment functions. At the direction of the City Treasurer, the Revenue Supervisor or Designee will keep a complete record of all investment transactions.
5.3 The City Treasurer has the authority to recommend changes in this Policy at any time in order to carry out the duties as chief investment officer for the City. All such recommended amendments to this Policy shall be approved by the City Council to be effective.
5.4 Government Code Section 36501 states that there must be an office of City Treasurer. The City Treasurer of the City of Redlands is an elected position.
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6.0 ETHICS AND CONFLICTS OF INTEREST
The City Treasurer and employees of the City involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program or which could impair the ability to make impartial investment decisions. The City Treasurer is governed by The Politi cal Reform Act of 1974 regarding disclosure of material financial interests.
7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer shall transact business only with banks, savings and loans, and securities dealers.
7.1 Authorization: The C ity may conduct business with major registered broker/dealers and with dealers designated Primary by the Federal Reserve provided all the following criteria are met. Broker/Dealers must: 1) have offices located in the State of California, 2) be adequatel y capitalized, 3) make markets in securities appropriate to the City's needs, and 4) agree to abide by the conditions set forth in this Policy. The City Treasurer shall investigate all institutions that wish to do business with the City and will annually review the financial condition and registrations of qualified institutions.
7.2 Rating: With the exception of the LAIF and U.S. Treasury and Government Agency issues, investments shall be placed only in those instruments and institutions rated favorably as determined by the City Treasurer.
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8.0 AUTHORIZED AND SUITABLE INVESTMENTS
California Government Code Section 53601 defines eligible securities for the investment of surplus funds by local agencies. Surplus funds of the City are inves ted in compliance with this statute and as further limited in this Policy.
The City’s investments are permitted as listed below and defined in the subsections following.
# Type of Investment CA Gov. Code
% of Funds
Permitted
City of Redlands%
Funds Authorized
CA Gov. Code
Max Final
Maturity
Redlands
Maximum Final
Maturity
8.1 United States Treasury notes, bonds,
bills or certificates of indebtedness
100% 100% 5 Years 5 Years
8.2 Federal Agency or U.S. government
sponsored enterprise (GSE)
obligations
100% 100% 5 years 5 years
8.3 Banker's Acceptances 40%; 30% of a
single issuer
40%; 30% of a single
issuer
180 days 180 days
8.4 Commercial Paper of "Prime" quality 25%; 10% of a single issuer
15%; 10% of a single
issuer
270 days 270 days
8.5 Negotiable Certificates of Deposits 30% 30% 5 years 5 years
8.6 Time Certificates of Deposit (TCD) 100% 30%; 15% of a single institution
5 years 5 Years
8.7 Repurchase Agreements 100% 100% 1 year 1 year
8.8 Medium Term Corporate Notes 30%; 10% of a
single issuer
20%; 10% of a single
issuer
5 years 5 years
8.9 Other State of California Local Agency
bonds, notes, warrants or other
evidence of indebtedness
100% 100% 5 years 5 years
8.10 Shares of beneficial interest, Mutual
Funds
20%; 10% of a
single fund
10% N/A N/A
8.11 Investment Funds: LAIF & CAMP $75 million per
account
$75 million per
account
N/A N/A
8.12 Bonds issued by the City or agency of
the City
100% 100% 5 Years 5 Years
8.13 City of Redlands Specific Program
Short-term Loans
N/A With Council
Approval
N/A N/A
Summary of Authorized Investments
8.1 U.S. Government: United States Treasury Bills, Notes, and Bonds are backed by the full faith and credit of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. Maturities are limited to a maximum of five years.
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8.2 U.S. Agencies: The purchase of instruments of, or issued by, a federal agency or a United States government -sponsored enterprise will be limited to a maximum maturity of five years. Such agencies include, but are not limited to, the Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corporation, Student Loan Marketing Association, Tennessee Valley Authority, and the Federal National Mortgage Association.
8.3 Bankers’ Acceptances: Bills of exchange or time drafts drawn on and accepted by commercial banks which are eligible for purchase by the Federal Reserve System are known as bankers’ acceptances. Purchases of these instruments shall not exceed 180 days to maturity or 40 percent of an agency's surplus funds. A maximum of 30 percent may be invested in the bankers’ acceptances of any one commercial bank.
8.4 Commercial Paper: This short -term unsecured promissory note is issued to finance short-term credit needs. Eligible paper is that which is ranked "P1" by Moody's Investor Services or "A1" by Standard & Poor's, issued by a domestic corporation having assets in excess of $500,000,000, and having an "A" or better rating on issuer's debt. Purchases of commercial paper may not exceed 270 days or represent more than 10 percent of the outstanding paper of an issuing corporation. Commercial paper purchases will be limited to 15 percent of the City's portfolio.
8.5 Negotiable Certificates of Deposit (NCDs): Allowable NCDs are issued by a nationally or state -chartered bank or a state or federal association or by a fed erally licensed or state-licensed branch of a foreign bank. Purchases of these investments shall not exceed 30 percent of surplus funds in NCDs limited to institutions rated "Aa" or better by Moody's or "AA - " or better by Standard & Poor's CD Rating Services. A rating equivalent of A or better is required for those institutions not rated by Moody's or Standard & Poor's. NCDs are considered liquid, trading actively in the secondary market.
8.6 Certificates of Deposit (CDs): Certificates of deposit or " time deposits" of up to $250,000 are federally insured. Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The value of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage-backed securities. CDs shall be limited to a maximum of 30 percent of the portfolio and to a maximum of 15 percent deposited in any one institution. In addition, time deposits shall be placed in institutions meeting all capital requirements and which maintain a rating of superior, excellent, or sound according to at least two bank rating services.
8.7 Repurchase Agreements: The city may invest in repurchase agreements with banks and dealers of primary dealer status recognized by the Federal Reserve with which the city has entered into a master repurchase contract which specifies terms and conditions of repurchase agreements. The maturity of repurchase agreements shall not exceed one year. The market value of securities used as collateral for repurchase agreements shall be monitored by the City Treasurer's office and will not be allowed to fall below 102 percent of the value of the repurchase agreement. In order to conform with provi sions of the Federal Bankruptcy Code, which provide for the liquidation of securities held as collateral for repurchase agreements, the only securities acceptable as collateral shall be eligible negotiable certificates of deposit, bankers' acceptances,
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commercial paper, or securities that are direct obligations of or that are fully guaranteed by the United States or any agency of the United States. These eligible securities are further defined by California Government Code Section 53651.
8.8 Medium Term Notes: These promissory notes are issued by corporations, for a term not to exceed five years, to finance their medium term credit needs. Eligible notes are those which are rated “A” or better by a nationally recognized rating service. These notes are l imited to 20% of the City’s portfolio.
8.9 Local Agencies within California: The City may invest in bonds, notes, warrants, or other indebtedness of other local agencies within California.
8.10 Mutual Funds: Shares of beneficial interest (mutual funds) issued by diversified management companies investing in securities/obligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53630, et. seq., are permitted investments. Section 53601( l) further defines req uirements. A maximum of 10 percent of the portfolio may be so invested.
8.11 Investment Funds: The LAIF has been established by the State Treasurer for the benefit of local agencies. The California Asset Management Program (CAMP) is a California Joint Powers Authority established to provide California Public Agencies with professional investment services similar to the LAIF. The city may invest in both the LAIF and the CAMP up to the maximum permitted by the funds.
8.12 Bond Funds Permitted Investments: The City or the Successor Agency to the former Redevelopment Agency of the City of Redlands, as appropriate, may, with the written approval of the City Treasurer, invest bond proceeds and other monies related to Agency and City bonds in investments permitted by the authorizing documents (including, but not limited to, a resolution of issuance, fiscal agent agreement, trust agreement or bond indenture).
8.13 With the approval of the City Council and concurrence of the City Treasurer, funds may be invested in short- term loans to provide specific funding to City programs.
Ineligible Investments: Government Code Section 53601.6 prohibits the City from investing in inverse floaters, range notes, or mortgage -derived, interest -only strips. It further prohibits investing in securities that would result in zero interest accrual if held to maturity. I nvestments not described herein, including but not limited to common stocks, financial futures contracts and options, and reverse repurchase agreements are prohibited in this fund.
Downgrade Evaluation: In the event that a security’s rating is downgraded below allowable levels, the City Treasurer will evaluate if continuing to hold the security or selling the security is in the best interest of the City.
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9.0 COLLATERAL
The issue of collateral requirements is addressed in California Government Code Section 53652.
All active and inactive deposits must be secured at all times with eligible securities in securities pools pursuant to Government Code Sections 53656 and 53657. Eligible securities held as collateral shall have a market value in excess of the total amount of all deposits of a depository as follows:
--Government securities, at least 10 percent in excess
--Mortgage backed securities, at least 50 percent in excess --Letters of credit, at least 5 percent in excess
10.0 SAFEKEEPING AND CUSTODY
Security transactions entered into by the City shall be conducted on a delivery -versus-payment (DVP) basis. Securities exceeding 30 days to maturity shall be held by a third party custodian designated by the City Treasurer. Evidence of account for each time deposit will be held in the City Treasurer’s office.
11.0 DIVERSIFICATION
In an effort to reduce portfolio risk while attaining market average rate s, the City's portfolio will be suitably diversified by type, institution and maturity.
11.1 Security Type and Institution: With the exception of U.S. Treasury securities and authorized pools, investments are further limited by specific language relating to each investment type as stated in Section 8 of this Policy.
11.2 Maximum Maturities: To the extent possible, the City Treasurer will attempt to match investments with anticipate d cash flow requirements. The City's portfolio will not be directly in vested in securities which mature more than five years from the date of purchase, except for reserve funds which may be invested in securities exceeding five years (maturity of such investments should coincide as nearly as practicable with expected use of funds).
12.0 INTERNAL CONTROLS
A system of internal controls will be maintained to assure compliance with Federal and State regulations, City Council direction, and prudent cash management procedures.
12.1 Investment Portfolio Guidelines: Guidelines (Appendix No. 2) have been established for procedures within the City Treasurer's Office to assure internal investment controls and a segregation of responsibilities of investment functions.
12.2 Annual Audit: The City's portfolio is included in the annual review of the C ity's financial management performed by an outside audit firm.
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13.0 PERFORMANCE STANDARDS
The investment portfolio will be designed to obtain a market -average rate of return during budgetary and economic cycles, taking into account the city's investment risk constraints and cash flow needs. The market -average rate of return is defined as the average return on three - month Treasury bills. In addition, the city portfolio will be compared with LAIF and expected to maintain an annual yield within 0.50 basis points (1/2 of 1 percent) of LAIF's annual yield.
14.0 REPORTING
14.1 Quarterly Report: The City Treasurer will provide quarterly detailed reports of pooled investments and invested bond proceeds held by our Trustees to the City C ouncil and City Manager.
14.2 Annual Report: This Investment Policy may be presented annually to the City Council for approval. Any change in the policy shall be considered by the City Council for approval.
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APPENDIX NO. 1
GLOSSARY
AGENCIES: Federal agency securities.
BANKERS' ACCEPTANCE (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
BROKER: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.
CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP): A California Joint Powers Authority (“JPA”) established in 1989 to provide California public agencies with professional investment services. The CAMP Pool is a permitted investment for all local agencies.
CERTIFICATE OF DEPOSIT (C D): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
DEALER: A dealer, as opposed to a broker acts as a principal in all transactions, buying and selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free). Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below original offering price shortly after sale also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.
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FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.
FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.
FEDERAL HOME LOAN BANKS (FHLB): The institutions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of residential mortgage funds in the United States.
Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA, VA or FMHM mortgages.
The term pass-throughs is often used to describe Ginnie Maes.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
LOCAL AGENCY INVESTMENT FUND (LAIF): Funds from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written contr act covering all future transactions between the parties to repurchase- reverse repurchase 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.
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MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.
MONEY MARKET: The market in which short -term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions and monthl y financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker -dealers, banks, and a few unregulated firms.
RATE OF R ETURN: 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 or the current income return.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security "buyer" in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Federal Reserve Bank is said to be doing RP, it is lending money that is, increasing bank reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the banks' vaults for protection.
SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.
SEC RULE 15C3-1: See uniform net capital rule.
SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.
TREASURY BILLS: A non -interest bearing security issued by the U.S. Treasury to finance t he national debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BONDS: Long-term U.S. Treasury securities having initial maturities of more than ten years.
TREASURY NOTES: Intermediate term coupon bearing U.S. Trea sury securities having initial maturities of from one to ten years.
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UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker -dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwrit ing syndicates. Liquid capital includes cash and assets easily converted into cash.
YIELD: The rate of annual income return on an investment, expressed as a percentage. (a)INCOME YIELD is obtained by dividing the current dollar income by the current ma rket price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
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APPENDIX NO. 2
INVESTMENT PORTFOLIO GUIDELINES
A. INTRODUCTION. These guidelines are established to direct and control investment activities in such a manner to assure that the goals established in this Policy are attained.
B. GENERAL FACTORS. Several factors must be considered in preparation for effective portfolio management.
1. Cash Forecast. The cash flow of the City shall be updated daily with an analysis of cash receipts and expenditures. A close working relationship with city programs having a significant impact on cash flow is maintained to maximize the efficiency of the city's cash management system.
2. Pooled Cash. Whenever practical, the City's cash should be consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated according to specific fund ledger balances. No city bank account may be opened without the knowledge and consent of the City Treasurer.
3. Authorized Institutions. A list of institutions, which meet the criteria of the Investment Policy and have been authorized by the City Treasurer to do business with the City, will be maintained and regularly updated. Investment transactions will be executed only with approved broker/dealers, banks, and savings and loans.
4. Preservation of Portfolio Value. Yield standards are in place in an effort to maintain earnings consistent with the market average rate of return.
C. STRATEGY: Strategy refers to the plan of action for managing financial resources in the most advantageous manner. The City Treasurer uses the following elements in developing strategy.
1. Economic Forecasts. Economic forecast information developed by economists and financial experts, obtained through bankers and brokers, is used to assist the City Treasurer with the formulation of an investment strategy for the city.
2. Investment Implementation. Investment transactions will be executed in conformance with anticipated cash flow requirements, economic conditions, and interest rate trends and must be consistent with the established Investment Policy.
3. Yield Enhancement. Investment techniques will be utilized which increase yield and maintain a fully invested position (i.e., investment in repurchase agreements for overnight and weekend surplus funds).
D. INVESTMENT PROCEDURES. The City Treasurer has developed internal investment procedures to provide for effective cash management. Segregation of responsibilities is maintained to assure an adequate system of internal control over the investment function.
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1. Diversification. The fund should consist of a mix of various types of securities, issuers, and maturities.
2. Investment Transactions. All investment transactions will b e executed by the City Treasure. Daily administrative record keeping functions are delegated to the Revenue Supervisor or Designee. In the event of a prolonged absence or vacancy in the Treasurers position, the City Council may direct staff to engage the services of one or more external investment managers.
3. Wire Transfers. Whenever possible, the city will use repetitive wire transfers to restrict the transfer of funds to preauthorized accounts only. All wire transfers require an initiator plus an approval by an authorized employee as well as verification by tw o bank employees.
4. Safekeeping. Securities purchased from broker/dealers (on which maturity is greater than 30 days) shall be held in third party safekeeping with the Trust Department of Bank of New York acting as third party trustee. All purchases will be on a delivery -versus- payment basis. Evidences of accounts for certificates of deposit will be issued in the city's name and held in City Treasurer's vault.
E. INVESTMENT CRITERIA. All investments will be made in compliance with Federal, State, and Local laws governing the investment of city funds, and in accordance with this Policy.
1. Maturity of Investment. Investments longer than one year may be made if consistent with the city's cash flow needs and related intent of holding until maturity. Securities may be sold prior to maturity for cash flow purposes or to otherwise enhance the portfolio. If the rating of any depository declines to an unacceptable level prior to the maturity of an investment of city funds, the investment will be sold at the earliest possible convenience. If the rating drops below the allowable level of any one of the rating services, the investment will be sold if no significant loss of principal is involved. Such sales will be determined by the City Treasurer.
2. Certificate of Deposit Evaluation.
(a) Time Certificates of Deposit shall be evaluated in terms of FDIC coverage. For deposits in excess of the insured maximum of $250,000, approved collateral shall be required at the percentage above market value as specified by California Government Code Section 53652 and/or 53651.
(b) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer as these deposits are uninsured and uncollateralized promissory notes.
F. PRIMARY GOALS. As set forth in the Investment Policy, the primary goals for the safety, liquidity, and yield, in that priority order.
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1. Safety. The safety/risk associated with an investment refers to the potential loss of principal, accrued interest, or a combination of these. The City employs investment instruments which are considered safe. The primary duty of the City Treasurer is to protect the cash and investments placed in his trust on behalf of the residents of the community.
2. Liquidity. Liquidity refers to the ability to convert investment holdings to cash immediately with a minimal loss of principal or accrued interest. This quality of an investment is important should an unexpected need for funds occur.
3. Yield. Yield is the dollar earnings the investment provides. Yield becomes important only after the fundamental requirements of safety and liquidity have been met.
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APPENDIX NO. 3
CITY OF REDLANDS
OFFICE OF THE CITY TREASURER
BANK/SAVINGS & LOAN QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm ___________________________________________________________
2. Address ________________________________________________________________
3. Telephone No. ____________________ ___________________________________ (Local) (National Headquarters)
4. Primary Representative: Manager:
Name: ___________________________ Name_______________________________
Title _____________________________ Title _______________________________
Telephone No. ___________________ Telephone No. _______________________
5. What is the total of assets of the Bank/Savings & Loan? __________________________
6. What are the current ratios? Prior Year?
Net Worth _______________ _______________
Tangible Capital _______________ _______________
Core-based Capital _______________ _______________
Risk-based Capital _______________ _______________
7. Has there been a year during the past three years in which the Bank/Savings & Loan did not make a profit?
8. What is the education level of the Primary Contact(s)? ____________________________
9. How many years of related experience does the Primary Contact(s) have? _____________
10. Where is the collateral for Time Deposits of the Bank/Savings & Loan held?____________
__________________________________________________________________________
11. Has there been a period during the past five years when Time Deposits of the Bank/Savings & Loan have not been fully collateralized? If Yes, explain.
__________________________________________________________________________
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12. Describe the precautions taken by your Bank/Savings & Loan to protect the interest of the public when dealing with government agencies as depositors or investors. __________________________________________________________________________ __________________________________________________________________________
13. What other banking services would you be interested in providing the City of Redlands? __________________________________________________________________________ __________________________________________________________________________
14. What transaction documents and reports would we receive? ________________________ __________________________________________________________________________
15. What information would you provide to our Investment Officer? ___________________ __________________________________________________________________________
16. Please provide your entity's most recent certified financial statement.
17. Please provide your Contract of Deposit of Moneys pre -signed and sealed by your institution as well as any signature cards that you may require.
18. Please provide your wiring instructions. _________________________________________ __________________________________________________________________________
-- CERTIFICATION --
I hereby certify that I have personally read the City of Redlands' Investment Policy and the California Government Codes pertaining to the investments of the City of Redlands, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of Redlands. All sales personnel will be routinely informed of City of Redlands’ investment objectives, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing the City Treasurer of all foreseeable risks associated with financial transactions conducted with our firm. I attest to the accuracy of our responses to your questionnaire.
NOTE: Completion of Questionnaire is only part of the City of Redlands' Certification process and DOES NOT guarantee that the applicant will be approved to do business with the City.
SIGNED ___________________________________________________ DATE _____________________________________________________
(countersigned by company president or person in charge of government security operations)
____________________________________________________________
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APPENDIX NO. 4
CITY OF REDLANDS
OFFICE OF THE CITY TREASURER
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm ____________________________________________________________
2. Address ________________________________________________________________
3. Telephone No. _______________________ _______________________________ (Local) (National Headquarters)
4. Primary Representative: Manager:
Name _____________________________ Name ______________________________
Title ______________________________ Title _______________________________
Telephone No. ____________________ Telephone No.________________________
5. Are you a recognized primary dealer in Government Securities? [ ] YES [ ] NO
6. If yes, how many years has your firm been a primary dealer? ___________
7. What was your firm's total volume in U.S. Government and agency securities trading last year?
Firm-wide $______________________
Your office $______________________
Number of transactions from your office __________________________
8. Which of the following instruments are offered regularly by your trading desk?
[ ] T-Bills [ ] BA's (Domestic)
[ ] T-Notes/Bonds [ ] BA's (Foreign)
[ ] Agencies (specify) [ ] Commercial Paper
_________________ [ ] C D's
_________________
_________________ [ ] Medium Term Notes
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[ ] Repurchase Agreements [ ] Mutual Funds (eligible for public investment)
_________________ __________________________________
9. Identify all personnel who will be trading with or quoting securities to the City Treasurer.
Name Title # of Years in # of Years Telephone
Institutional Sales with Firm
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
10. Please identify your most directly comparable City Local Agenc y clients in our geographical area.
Entity Contact Person Telephone Client since
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
11. Is there anything in your background in the government security business that makes you stand out above the rest? Why should the City of Redlands deal with you? _____________________________________________________________________________ _____________________________________________________________________________
12. Have any of your public sector clients ever sustained a loss on a securities transaction arising from a misunderstandin g or misrepresentation of the risk characteristics of a particular instrument? If so, please explain._______________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
13. Has any public -sector client ever claimed in writing that your firm was responsible for investment losses? Explain.___________________________________________________
14. Has your firm consistently complied with the Federal Reserve Bank's capital adequacy guidelines? Include certified documentation of your current capital adequacy as measured by Federal Reserve Standards._________________________________________________
15. Please provide certified financial statements and other statements regarding your firm's capitalization.
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16. Please provide samples of research reports that your firm regularly supplies to public sector clients.
17. Are you a Broker instead of a Dealer (i.e., you DO NOT own positions of securities)?
[ ] Yes [ ] No
18. What reports, transactions, confirmations and paper trail would the city receive? _________ ______________________________________________________________________________ ______________________________________________________________________________
19. What training information would you provide to our employees and investment officers? ______________________________________________________________________________ ______________________________________________________________________________
20. How many and what percentage of your transactions failed last month?_________________ Last year?_________________________________________________________________
21. What portfolio information do you require from clients?_____________________________ ______________________________________________________________________________
-- CERTIFICATION --
I hereby certify that I have personally read the City of Redlands' Investment Policy and the California Government Codes pertaining to the investments of the City of Redlands, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions conducted between our firm and the City of Redlands. All sales personnel will be routinely informed of City of Redlands' investment objectives, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing the City Treasurer of all foreseeable risks associated with financial transactions conducted with our firm. I attest to the accuracy of our responses to your questionnaire.
NOTE: Completion of Questionnaire is only part of the City of Redlands' Certification process and DOES NOT guarantee that the applicant will be approved to do business with the City.
SIGNED ___________________________________________________ DATE _____________________________________________________
(countersigned by company president or person in charge of government security operations)
____________________________________________________________
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STATEMENT OF INVESTMENT POLICY
FOR THE CITY OF REDLANDS, CALIFORNIA
______________________________________________________________________________
1.0 INTRODUCTION
This Investment Policy (“Policy”) provides guidelines formalized framework for the prudent investment of surplus funds unexpended cash of the City of Redlands (“the City”) and its related authorities and agencies for maximizing the efficiency of the City's cash management system . It is the policy of the City of Redlands The City’s Policy is to invest public funds in a manner which seeks to provide high investment return, after first providing for maximum security and preservation of principal, consistent with the public trust and the prioritized objectives of safety, liquidity and yield, while meeting the daily cash flow demands of the city City’s daily cash flow requirements and conforming to all state and local stat utes governing the investment of public funds.
2.0 SCOPE
This Policy applies to all monies under the direct oversight of the City Treasurer, including those of the City, the Successor Agency to the former Redevelopment Agency of the City of Redlands, the Redlands Public Improvement Corporation and the Redlands Financ ing Authority. This Policy is generally applicable to bond proceeds with consideration given to specific provisions of each issuance. Reports of the investment of bond proceeds are summarized quarterly by the Finance Director City Treasurer and are attached to the City Treasurer's quarterly report of the pooled investment fund. The employees' retir ement and deferred compensation funds are not included in this Policy.
3.0 PRUDENCE
Investments shall be made with judgment a nd care -- under circumstances then prevailing -- which persons of prudence, discretion and intellig ence exercise in the management of their own affairs, not for speculation, but for investment, c onsidering the probable safety of their capital as well as the probable income to be derived.
3.1 The standard of prudence to be used by investment officials shall be the "prudent investor standard” as defined in Government Code Section 53600.3 and shall be applied in the context of managing an overall portfolio. Invest ment 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 fash ion and appropriate acti on is taken to control adverse developments.
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4.0 OBJECTIVES
The City's cash management system is designed to accurately monitor and forecast revenues and expenditures thus enabling the City Treasurer to i nvest funds to the fullest extent possible. The City Treasurer maintains a diversified portfolio to accomplish the primary objectives of safety, liquidity, and yield (in that order of priority).
4.1 Safety: The safety/risk associated with an investment refers to the potential loss of principal, accrued interest or a combination of these. The City seeks to mitigate credit risk by prequalifying and continual monitoring of financia l institutions with which it will do business, and by careful scrutiny of the credit worthiness of the investment instruments as well as the institutions. The City seeks to mitigate rate risk through diversification of instruments as well as maturities.
4.2 Liquidity: The portfolio will be structur ed with sufficient liquidity to allow the City to meet anticipated cash requirements. This will be accomplished through diversity of instruments to include those with active secondary markets, those which can match maturities to expected cash needs, and the State Local Agency Investment Fund (“LAIF”) with immediate withdrawal provision.
4.3 Yield: A competitive market rate of return is the third objective of the City’s investment program portfolio after the fundamental requirements of safety and liquidity have been met.
5.0 DELEGATION OF AUTHORITY
California Government Code Section 53607 provides the authority for the City Council to invest the funds of the City or to delegate the full responsibility to the treasurer of the City.
5.1 City Council: By resolution, the City Council has authorized delegates authority to the City Treasurer for investi ng City funds in accordance with California Government Code Section 53600, et. seq.
5.2 City Treasurer: The execution of investment transactions on a daily basis will be conducted by the City Treasurer or the City Clerk in the Treasurer’s absence . In the event of a prolonged absence or vacancy in the Treasurers position, the City Council may direct staff to engage the services of one or mo re external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external investment managers may be grante d discretion to purchase and se ll investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940. The City Treasurer has established a sy stem of controls and a segregation of responsibilities of investment functions to a ssure maintenance of internal control over the investment function. At the directio n of the City Treasurer, the Revenue Manager Supervisor or Designee will implement the daily administration of the record keeping keep a complete record of the all investment transactions.
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5.3 The City Treasurer has th e authority to recommend cha nges in this Policy at any time in order to carry out the duties as chief investment officer for the City. All such recommended amendments to this Policy shall be approved by the City Council to be effective.
5.4 Government Code Section 36501 states th at there must be an office of City Treasurer. The City Treasurer of the City of Redlands is an elected position.
6.0 ETHICS AND CONFLICTS OF INTEREST
The City Treasurer and employees of the City invol ved in the investment process shall refrain from personal business activity that could conf lict with proper execution of the investment program or which could impair the ability to ma ke impartial investment decisions. The City Treasurer is governed by The Po litical Reform Act of 1974 regard ing disclosure of material financial interests.
7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer shall transact business only with banks, savings and loans, and securities dealers.
7.1 Authorization: The city may c onduct business with major registered broker/dealers and with dealers designated Prim ary by the Federal Reserve provided all the following criteria are met. Broker/Dealers must: 1) have o ffices located in the State of California, 2) be adequately capit alized, 3) make markets in secu rities appropriate to the City's needs, 4) agree to abide by the conditions set forth in this Policy. The City Treasurer shall investigate all institutions that wish to do busin ess with the City and will annually review the financial condition and registrations of qualified institutions.
7.2 Rating: With the exception of the LAIF and U.S. Treasury and Government Agency issues, investments shall be placed onl y in those instruments and institutions rated favorably as determined by the City Treasurer.
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8.0 AUTHORIZED AND SUITABLE INVESTMENTS
California Government Code Section 53601 defines eligible securities for the investment of surplus funds by local agencies. Surplus funds of the C ity are invested in compliance with this statute and as further limited in this Policy.
The City’s investments are permitted as listed below and defined in the subsections following. <Insert table>
# Type of Investment CA Gov. Code
% of Funds
Permitted
City of Redlands%
Funds Authorized
CA Gov. Code
Max Final
Maturity
Redlands
Maximum Final
Maturity
8.1 United States Treasury notes, bonds,
bills or certificates of indebtedness
100% 100% 5 Years 5 Years
8.2 Federal Agency or U.S. government
sponsored enterprise (GSE)
obligations
100% 100% 5 years 5 years
8.3 Banker's Acceptances 40%; 30% of a
single issuer
40%; 30% of a single
issuer
180 days 180 days
8.4 Commercial Paper of "Prime" quality 25%; 10% of a single issuer
15%; 10% of a single
issuer
270 days 270 days
8.5 Negotiable Certificates of Deposits 30% 30% 5 years 5 years
8.6 Time Certificates of Deposit (TCD) 100% 30%; 15% of a single institution
5 years 5 Years
8.7 Repurchase Agreements 100% 100% 1 year 1 year
8.8 Medium Term Corporate Notes 30%; 10% of a
single issuer
20%; 10% of a single
issuer
5 years 5 years
8.9 Other State of California Local Agency
bonds, notes, warrants or other
evidence of indebtedness
100% 100% 5 years 5 years
8.10 Shares of beneficial interest, Mutual
Funds
20%; 10% of a
single fund
10% N/A N/A
8.11 Investment Funds: LAIF & CAMP $75 million per
account
$75 million per
account
N/A N/A
8.12 Bonds issued by the City or agency of
the City
100% 100% 5 Years 5 Years
8.13 City of Redlands Specific Program
Short-term Loans
N/A With Council
Approval
N/A N/A
Summary of Authorized Investments
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8.1 U.S. Government: United States Treasu ry Bills, Notes, and Bonds are backed by the full faith and credit of the United States Government. There shall be no limitation as to the percentage of the portfolio invested in this category. Maturities are limited to a maximum of five years.
8.2 U.S. Agencies: The purchase of instrume nts of, or issued by, a federal agency or a United States government-sponsored enterprise w ill be limited to a maximum maturity of five years. Such agencies include, but are not limited to, the Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortga ge Corporation, Student Loan Marketing Association, Tennessee Valley Authority, and the Federal National Mortgage Association.
8.3 Bankers’ Acceptances: Bills of excha nge or time drafts drawn on and accepted by commercial banks which are eligible for pur chase by the Federal Reserve System are known as bankers’ acceptances. Purchases of these instruments shall not exceed 180 days to maturity or 40 percent of an agency's surplus funds. A ma ximum of 30 percent may be invested in the bankers’ acceptances of any one commercial bank.
8.4 Commercial Paper: This short-term unsecured promissory note is issued to finance short-term credit needs. Eligible paper is that which is ranked "P1" by Moody's Investor Services or "A1" by Standard & Poor's, issued by a domestic co rporation having assets in excess of $500,000,000, and having an "A" or better rating on issuer's debt. Purchases of commercial paper may not exceed 270 days or represent more than 10 percent of the outstanding paper of an issuing corporation. Commercial paper purchases will be limited to 15 percent of the City's portfolio.
8.5 Negotiable Certificates of Deposit (N CDs): Allowable NCDs are issued by a nationally or state-chartered bank or a state or federal associati on or by a federally licensed or state-licensed branch of a foreign bank. Purcha ses of these investments shall not exceed 30 percent of surplus funds in NCDs limited to institutions rated "Aa" or better by Moody's or "AA- " or better by Standard & Poor's CD Rating Services. A rating eq uivalent of A or better is required for those institutions not rated by Moody's or Standard & Poor's. NCDs are considered liquid, trading actively in the secondary market.
8.6 Certificates of Deposit (CDs): Certifi cates of deposit or "time deposits" of up to $250,000 are federally insured. Beyond that amount, these CDs must be collateralized with the collateral held separately from the issuing institution. The valu e of the investment must have collateral of at least 110 percent if government securities, or collateral of at least 150 percent if mortgage-backed securities. CDs shall be limite d to a maximum of 30 pe rcent of the portfolio and to a maximum of 15 percent deposited in any one institution. In addition, time deposits shall be placed in institutions meeting all capital requirements and which maintain a rating of superior, excellent, or sound according to at least two bank rating services.
8.7 Repurchase Agreements: The city may invest in repurchase agreements with banks and dealers of primary dealer status recognized by the Federal Reserve with which the city has entered into a master repurchase contract which specifies terms and conditions of repurchase agreements. The maturity of repurchase agreem ents shall not exceed one year. The market value of securities used as collateral for repur chase agreements shall be monitored by the City
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Treasurer's office and will not be allowed to fall below 102 percent of the value of the repurchase agreement. In order to confor m with provisions of the Federal Bankruptcy Code, which provide for the liquidation of securities held as collatera l for repurchase agreements, the only securities acceptable as collateral shall be eligible negotiable certifi cates of deposit, bankers' acceptances, commercial paper, or securities that are direct ob ligations of or that ar e fully guaranteed by the United States or any agency of the United States. These eligible securities are further defined by California Government Code Section 53651.
8.8 Medium Term Notes: These promissory notes are issued by corporations, for a term not to exceed five years, to finance their medium term credit needs. Eligible notes are those which are rated “A” or better by a nationally recognized rating service. These notes are limited to 20% of the City’s portfolio.
8.9 Local Agencies within California: The City may invest in bonds, notes, warrants, or other indebtedness of other local agencies within California.
8.10 Mutual Funds: Shares of beneficial in terest (mutual funds) issued by diversified management companies investing in securities/o bligations authorized by California Government Code Section 53600, et. seq., and complying with Section 53630, et. seq., are permitted investments. Section 53601(l) further defines requirements. A maximum of 10 percent of the portfolio may be so invested.
8.11 Investment Funds: The LAIF has been established by the State Treasurer for the benefit of local agencies. The California As set Management Program (CAMP) is a California Joint Powers Authority established to provide California Public Agencies with professional investment services similar to the LAIF. The city may invest in both the LAIF and the CAMP up to the maximum permitted by the funds.
8.12 Bond Funds Permitted Investments: Th e City or the Successor Agency to the former Redevelopment Agency of the City of Redlands, as appropriate, may, with the written approval of the City Treasurer, invest bond pro ceeds and other monies related to Agency and City bonds in investments permitted by the author izing documents (including, but not limited to, a resolution of issuance, fiscal agent agreement, trust agreement or bond indenture).
8.13 Ineligible Investments: Government Code Section 53601.6 prohibits the City from investing in inverse floate rs, range notes, or mortgage-der ived, interest-only strips. It further prohibits investing in securities that woul d result in zero intere st accrual if held to maturity. Investments not described herei n, including but not limited to common stocks, financial futures contracts and options, and revers e repurchase agreements are prohibited in this fund.
8.148.13 With the approval of the City Council and concurrence of the City Treasurer, funds may be invested in short- term loans to provide specific funding to City programs.
Ineligible Investments: Government Code Section 53601.6 prohibits the City from investing in inverse floaters, range notes, or mortgage-derived, interest-only strips. It further prohibits investing in securities that would result in zero in terest accrual if held to maturity. Investments
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not described herein, including but not limited to common stocks, financial futures contracts and options, and reverse repurchase agreements are prohibited in this fund.
Downgrade Evaluation: In the event that a security’s ra ting is downgraded below allowable levels, the City Treasurer will evaluate if continuing to hold the security or selling the security is in the best interest of the City.
9.0 COLLATERAL
The issue of collateral requirements is addresse d in California Government Code Section 53652.
All active and inactive deposits must be secured at all times with eligible securities in securities pools pursuant to Government Code Sections 53656 and 53657. Eligible securities held as collateral shall have a market value in excess of the total amount of all deposits of a depository as follows:
-- government securities, at least 10 percent in excess -- mortgage backed securities, at least 50 percent in excess -- letters of credit, at least 5 percent in excess
10.0 SAFEKEEPING AND CUSTODY
Security transactions entered into by the City shall be conducted on a delivery-versus-payment (DVP) basis. Securities exceeding 30 days to matu rity shall be held by a third party custodian designated by the City Treasurer. Evidence of a ccount for each time deposit will be held in the City Treasurer’s office.
11.0 DIVERSIFICATION
In an effort to reduce portfolio risk while attaini ng market average rates, the City's portfolio will be suitably diversified by type, institution and maturity.
11.1 Security Type and Institution: With th e exception of U.S. Treasury securities and authorized pools, no more than 50 percent of the total portfolio will be invested in a single security type and no more than 15 pe rcent with a single financial institution. investments are further limited by specific language relating to each investment type as stated in Section 8 of this Policy.
11.2 Maximum Maturities: To the extent po ssible, the City Trea surer will attempt to match investments with anticipated cash flow re quirements. The City's portfolio will not be directly invested in securities which mature mo re than five years from the date of purchase, except for reserve funds which may be invested in securities exceeding five years (maturity of such investments should coincide as nearly as practicable with expected use of funds).
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12.0 INTERNAL CONTROLS
A system of internal controls will be maintain ed to assure compliance with Federal and State regulations, City Council direction, and prudent cash management procedures.
12.1 Investment Portfolio Guidelines: Guidelines (Appendix No. 2) have been established for procedures within the City Trea surer's Office to assure internal investment controls and a segregation of responsibilities of investment functions.
12.2 Annual Audit: The City's portfolio is included in the annual review of the City's financial management performed by an outside audit firm.
13.0 PERFORMANCE STANDARDS
The investment portfolio will be designed to obtain a market-a verage rate of return during budgetary and economic cycles, taking into account the city's investment risk constraints and cash flow needs. The market-average rate of re turn is defined as the average return on three- month Treasury bills. In addition, the city portfolio will be compared with LAIF and expected to maintain an annual yield within 0.50 basis points (1/2 of 1 percent) of LAIF's annual yield.
14.0 REPORTING
14.1 Quarterly Report: The City Treasurer will provide quarterly detailed reports of pooled investments and invested bond proceeds he ld by our Trustees to the City Council and City Manager.
14.2 Annual Report: This Investment Policy may be presented a nnually to the City Council for approval. Any change in the polic y shall be considered by the City Council for approval.
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APPENDIX NO. 1
GLOSSARY
AGENCIES: Federal agency securities.
BANKERS' ACCEPTANCE (BA): A draft or bi ll of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
BROKER: A broker brings buyers and sellers together for a comm ission paid by the initiator of the transaction or by both sides; he does not position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.
CALIFORNIA ASSET MANAGEME NT PROGRAM (CAMP): A California Joint Powers Authority (“JPA”) established in 1989 to provide California public agencies with professional investment services. The CAMP Pool is a permitted investment for all local agencies.
CERTIFICATE OF DEPOSIT (CD): A time depos it with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a lo an. Also refers to securities pled ged by a bank to secure deposits of public monies.
COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.
DEALER: A dealer, as opposed to a broker acts as a principal in all transactions, buying and selling for his own account.
DEBENTURE: A bond secured only by the general credit of the issuer.
DELIVERY VERSUS PAYMENT: There are two methods of deliv ery of securities: delivery versus payment and delivery versus receipt (als o called free). Delivery versus payment is delivery of securities with an ex change of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.
DISCOUNT: The difference between the cost price of a security and its value at maturity when quoted at lower than face value. A security selling below origin al offering price shortly after sale also is considered to be at a discount.
DISCOUNT SECURITIES: Non-interest bearing m oney market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., U.S. Treasury bills.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.
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FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions and individuals, e.g., S&Ls, sma ll business firms, students, farmers, farm cooperatives, and exporters.
FEDERAL DEPOSIT INSURANCE CORPORATION (F DIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.
FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.
FEDERAL HOME LOAN BANKS (FHLB): The institu tions that regulate and lend to savings and loan associations. The Federal Home Loan Banks play a role analogous to that played by the Federal Reserve Banks vis-a-vis member commercial banks.
FEDERAL NATIONAL MORTGAGE ASSOCIAT ION (FNMA): FNMA, like GNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the ausp ices of the Department of Housing & Urban Development, H.U.D. It is the largest single provider of re sidential mortgage funds in the United States.
Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (GNMA or Ginnie Mae):
Securities guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loans associations and other institutions. Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA, VA or FMHM mortgages.
The term pass-throughs is often used to describe Ginnie Maes.
LIQUIDITY: A liquid asset is one that can be c onverted easily and rapidly into cash without a substantial loss of value. In th e money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes.
LOCAL AGENCY INVESTMENT FUND (LAIF): Funds from local governmental units may be remitted to the California State Treasurer fo r deposit in this special fund for the purpose of investment.
MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.
MASTER REPURCHASE AGREEMENT: A written c ontract covering all future transactions between the parties to repurchase-reverse repurch ase 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 secu rities in the event of default by the seller- borrower.
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MATURITY: The date upon which the principal or stated value of an i nvestment becomes due and payable.
MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.
PORTFOLIO: Collection of securities held by an investor.
PRIMARY DEALER: A group of government securi ties dealers that submit daily reports of market activity and positions and monthly financ ial statements to the Federal Reserve Bank of New York and are subject to its informal overs ight. Primary dealers include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks, and a few unregulated firms.
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amorti zed yield to maturity on a bond or the current income return.
REPURCHASE AGREEMENT (RP OR REPO): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fi xed date. The security "buyer" in effect lends the "seller" money for th e period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Federal Reserve Bank is said to be doing RP, it is lending money that is, increasing bank reserves.
SAFEKEEPING: A service to customers rendered by banks for a fee wh ereby securities and valuables of all types and descriptions are held in the banks' vaults for protection.
SECONDARY MARKET: A market made for th e purchase and sale of outstanding issues following the initial distribution.
SEC RULE 15C3-1: See uniform net capital rule.
SECURITIES & EXCHANGE CO MMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation.
TREASURY BILLS: A non-interest bearing security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.
TREASURY BONDS: Long-term U.S. Treasury securities having initial maturities of more than ten years.
TREASURY NOTES: Intermediate term coupon bearing U.S. Treas ury securities having initial maturities of from one to ten years.
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UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capi tal rule and net capital ratio.
Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
YIELD: The rate of annual inco me return on an investment, expressed as a percentage. (a)INCOME YIELD is obtained by dividing the current dollar in come by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.
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APPENDIX NO. 2
INVESTMENT PORTFOLIO GUIDELINES
A. INTRODUCTION. These guidelines are esta blished to direct an d control investment activities in such a manner to assure that the goals established in this Policy are attained.
B. GENERAL FACTORS. Several factors must be considered in preparation for effective portfolio management.
1. Cash Forecast. The cash flow of the City sh all be updated daily with an analysis of cash receipts and expenditures. A cl ose working relationship with ci ty programs having a significant impact on cash flow is maintained to maximize the efficiency of the city's cash management system.
2. Pooled Cash. Whenever practical, the City 's cash should be consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated according to specific fund ledger balances. No city bank a ccount may be opened without the knowledge and consent of the City Treasurer.
3. Authorized Institutions. A list of institutio ns, which meet the criteria of the Investment Policy and have been authorized by the City Treasurer to do business with the City, will be maintained and regularly updated. Investment transactions will be exec uted only with approved broker/dealers, banks, and savings and loans.
4. Preservation of Portfolio Value. Yield standards are in place in an effort to maintain earnings consistent with the market average rate of return.
C. STRATEGY: Strategy refers to the plan of action for managing financial resources in the most advantageous manner. The City Treasur er uses the following elements in developing strategy.
1. Economic Forecasts. Economic forecast information developed by economists and financial experts, obtained through bankers and brokers, is used to assist the City Treasurer with the formulation of an investment strategy for the city.
2. Investment Implementation. Investment tr ansactions will be executed in conformance with anticipated cash flow requirements, economic conditions, and interest rate trends and must be consistent with the established Investment Policy.
3. Yield Enhancement. Investment technique s will be utilized which increase yield and maintain a fully invested position (i.e., investme nt in repurchase agreements for overnight and weekend surplus funds).
D. INVESTMENT PROCEDURES. The City Treasu rer has developed internal investment procedures to provide for effective cash mana gement. Segregation of responsibilities is maintained to assure an adequate system of internal control over the investment function.
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1. Diversification. The fund should consist of a mix of various types of securities, issuers, and maturities.
2. Investment Transactions. All investment transactions wi ll be executed by the City Treasurer or the City Clerk in the Treasurer’s absence. Daily administrative record keeping functions are de legated to the Revenue Manager Supervisor or Designee. In the event of a prolonged absence or vacancy in the Treasurers position, the City Council may direct staff to engage the services of one or more external investment managers.
3. Wire Transfers. Whenever possible, the city will use repetitive wire transfers to restrict the transfer of funds to preauthorized acc ounts only. All wire transfers require an initiator plus an approval by an authorized employee as well as ve rification by two bank employees.
4. Safekeeping. Securities purchased from broke r/dealers (on which maturity is greater than 30 days) shall be held in third party safek eeping with the Trust Department of Bank of New York acting as third party trustee. All purchases will be on a delivery-versus- payment basis. Evidences of accounts for certif icates of deposit will be issued in the city's name and held in City Treasurer's vault.
E. INVESTMENT CRITERIA. All investments will be made in compliance with Federal, State, and Local laws governing the investment of city funds, and in accordance with this Policy.
1. Maturity of Investment. Investments longe r than one year may be made if consistent with the city's cash flow needs and related in tent of holding until maturity. Securities may be sold prior to maturity for cash flow purposes or to otherwise enhance the portfolio. If the rating of any depository de clines to an unacceptable level prior to the maturity of an investment of city funds, the investment will be sold at the earliest possible convenience. If the rating drops below the allowable level of any one of the rating services, the investment will be sold if no significant loss of principal is involved. Such sales will be determined by the City Treasurer.
2. Certificate of Deposit Evaluation.
(a) Time Certificates of Deposit shall be evaluated in terms of FDIC coverage. For deposits in excess of the insured maxi mum of $250,000, approved collateral shall be required at the percentage above market value as specified by California Government Code Section 53652 and/or 53651.
(b) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer as these deposits are uninsured and uncollateralized promissory notes.
F. PRIMARY GOALS. As set forth in the Invest ment Policy, the primary goals for the safety, liquidity, and yield, in that priority order.
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1. Safety. The safety/risk associated with an investment refers to the potential loss of principal, accrued interest, or a combinati on of these. The City employs investment instruments which are considered safe. The primary duty of the City Treasurer is to protect the cash and investments placed in hi s trust on behalf of the residents of the community.
2. Liquidity. Liquidity refe rs to the ability to convert investment holdings to cash immediately with a minimal loss of principa l or accrued interest. This quality of an investment is important should an unexpected need for funds occur.
3. Yield. Yield is the dollar earnings the investment prov ides. Yield becomes important only after the fundamental requirements of safety and liquidity have been met.
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APPENDIX NO. 3
CITY OF REDLANDS
OFFICE OF THE CITY TREASURER
BANK/SAVINGS & LOAN QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm ___________________________________________________________
2. Address ________________________________________________________________
3. Telephone No. ____________________ ___________________________________ (Local) (National Headquarters)
4. Primary Representative: Manager:
Name: ___________________________ Name_______________________________
Title _____________________________ Title _______________________________
Telephone No. ___________________ Telephone No. _______________________
5. What is the total of assets of the Bank/Savings & Loan? __________________________
6. What are the current ratios? Prior Year?
Net Worth _______________ _______________
Tangible Capital _______________ _______________
Core-based Capital _______________ _______________
Risk-based Capital _______________ _______________
7. Has there been a year during the past three years in which the Bank/Savings & Loan did not make a profit?
8. What is the education level of the Primary Contact(s)? ____________________________
9. How many years of relate d experience does the Primary Contact(s) have? _____________
10. Where is the collateral for Time Deposits of the Bank/Savings & Loan held?____________
__________________________________________________________________________
11. Has there been a period during the past five years when Time Deposits of the Bank/Savings & Loan have not been fully collateralized? If Yes, explain.
__________________________________________________________________________
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12. Describe the precautions taken by your Bank/Savi ngs & Loan to protect the interest of the public when dealing with government agencies as depositors or investors. __________________________________________________________________________ __________________________________________________________________________
13. What other banking services would you be inte rested in providing the City of Redlands? __________________________________________________________________________ __________________________________________________________________________
14. What transaction documents a nd reports would we receive? ________________________ __________________________________________________________________________
15. What information would you provide to our Investment Officer? ___________________ __________________________________________________________________________
16. Please provide your entity's most r ecent certified financial statement.
17. Please provide your Contract of Deposit of Moneys pre-signed and sealed by your institution as well as any signature cards that you may require.
18. Please provide your wiring instructions. _________________________________________ __________________________________________________________________________
-- CERTIFICATION --
I hereby certify that I have pers onally read the City of Redl ands' Investment Policy and the California Government Codes pertaining to the i nvestments of the City of Redlands, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions c onducted between our firm and the City of Redlands. All sales personnel wi ll be routinely informed of C ity of Redlands’ investment objectives, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing the City Treasurer of all foreseeable risks associated with financial transactions conducted with our firm. I atte st to the accuracy of our responses to your questionnaire.
NOTE: Completion of Questionnaire is only part of the City of Redlands' Certification process and DOES NOT guarantee that the applicant wi ll be approved to do business with the City.
SIGNED ___________________________________________________ DATE _____________________________________________________
(countersigned by company president or person in charge of government security operations)
____________________________________________________________
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APPENDIX NO. 4
CITY OF REDLANDS
OFFICE OF THE CITY TREASURER
BROKER/DEALER QUESTIONNAIRE AND CERTIFICATION
1. Name of Firm ____________________________________________________________
2. Address ________________________________________________________________
3. Telephone No. _______________________ _______________________________ (Local) (National Headquarters)
4. Primary Representative: Manager:
Name _____________________________ Name ______________________________
Title ______________________________ Title _______________________________
Telephone No. ____________________ Telephone No.________________________
5. Are you a recognized primary dealer in Government Securities? [ ] YES [ ] NO
6. If yes, how many years has your firm been a primary dealer? ___________
7. What was your firm's total volume in U.S. Government and agency securities trading last year?
Firm-wide $______________________
Your office $______________________
Number of transactions from your office __________________________
8. Which of the following instruments are offered regularly by your trading desk?
[ ] T-Bills [ ] BA's (Domestic)
[ ] T-Notes/Bonds [ ] BA's (Foreign)
[ ] Agencies (specify) [ ] Commercial Paper
_________________ [ ] C D's
_________________
_________________ [ ] Medium Term Notes
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[ ] Repurchase Agreements [ ] Mutu al Funds (eligible for public investment)
_________________ __________________________________
9. Identify all personnel who will be trading with or quoting securities to the City Treasurer.
Name Title # of Years in # of Years Telephone
Institutional Sales with Firm
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
10. Please identify your most directly compar able City Local Agency clients in our geographical area.
Entity Contact Person Telephone Client since
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
11. Is there anything in your background in th e government security business that makes you stand out above the rest? Why should the City of Redlands deal with you? _____________________________________________________________________________ _____________________________________________________________________________
12. Have any of your public sector clients ever sustained a lo ss on a securities transaction arising from a misunderstanding or misrepresentation of th e risk characteristics of a particular instrument? If so, please explain._______________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________
13. Has any public-sector client ever claimed in writing that your firm was responsible for investment losses? Explain.___________________________________________________
14. Has your firm consistently complied with the Federal Reserve Bank's capital adequacy guidelines? Include certified documentation of your current capital adequacy as measured by Federal Reserve Standards._________________________________________________
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15. Please provide certified financial statements and other statements regarding your firm's capitalization.
16. Please provide samples of research reports that your firm regularly s upplies to public sector clients.
17. Are you a Broker instead of a Dealer (i.e., you DO NOT own positions of securities)?
[ ] Yes [ ] No
18. What reports, transactions, confirmations and paper trail would th e city receive? _________ ______________________________________________________________________________ ______________________________________________________________________________
19. What training information would you provide to our employees and investment officers? ______________________________________________________________________________ ______________________________________________________________________________
20. How many and what percentage of your transactions failed last month?_________________ Last year?_________________________________________________________________
21. What portfolio information do you require from clients?_____________________________ ______________________________________________________________________________
-- CERTIFICATION --
I hereby certify that I have pers onally read the City of Redl ands' Investment Policy and the California Government Codes pertaining to the i nvestments of the City of Redlands, and have implemented reasonable procedures and a system of controls designed to preclude imprudent investment activities arising out of transactions c onducted between our firm and the City of Redlands. All sales personnel will be routinely informed of City of Redlands' investment objectives, strategies and risk constraints whenever we are so advised. We pledge to exercise due diligence in informing the City Treasurer of all foreseeable risks associated with financial transactions conducted with our firm. I atte st to the accuracy of our responses to your questionnaire.
NOTE: Completion of Questionnai re is only part of the City of Redlands' Certification process and DOES NOT guarantee that th e applicant will be approved to do business with the City.
SIGNED ___________________________________________________ DATE _____________________________________________________
(countersigned by company president or person in charge of government security operations)
____________________________________________________________
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City Council Meeting I. 8.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Disclosure of Agreement of Settlement and General Release - Heidi Kirkendoll; San Bernardino County Superior Court Case No.
CIVDS1933311 (City Attorney McHugh)
DISCUSSION:
Attached is a copy of the "Agreement of Settlement and General Release," which reflects the terms and conditions for settlement of the above mentioned litigation as authorized by the City Council. In accordance with the City's Municipal Code, and following the spirit of the Brown Act, this matter is on your agenda to notify the public of the settlement negotiated by the City. The litigation involved an injury from a broken and uneven street curb and was settled for the amount of $20,000.
SUBMITTED BY:
Jimmy Nguyen, Administrative Analyst
REVIEWED BY:
Charles M. Duggan, Jr., City Manager
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Christopher Boatman, Assistant City Manager
Attachments
Agreement of Settlement and General Release
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any party.
8.5 In the event oflitigation relating to this Agreement, the prevailing party shall be entitled to attorney's fees and costs.
8.6 This Agreement may be executed in counterparts, and when each party has signed and delivered at least one such counterpart, each counterpart shall be deemed an original, and, ,vhen taken together \\.'ith other signed counterparts, shall constitute one Agreement. which shall be binding upon and effective as to all parties.
8.7 This A__greement, consisting of four pages, is made and entered into on and as of March _..3 ___ , 2022, in Redlands, California, and is effective as of this date.
BY:
BY:
BY:
APPROVED AS TO FORM AND CONTENT:
Lewis W. Duong, Law Office of Lewis W. Duong
Attorney for Plaintiffs Heidi Kirkendoll
Bruce E. Disenhouse, Disenhouse Law APC
A ttomey for Defendant City of Redlands
Agreement of Settlement and General Release
HEIDI KIRKENDOLL, Plaintiff
CITY OF REDLANDS
PAUL T. BARICH, Mayor
CITY OF REDLANDS
JEANNE DONALDSON, City Clerk
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City Council Meeting I. 9.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Report regarding Emergency Resolution No. 8065 proclaiming the existence of a local emergency in response to COVID-19
(Coronavirus Disease 2019) (Interim Fire Chief Sessler) DISCUSSION:
On March 17, 2020, the City Council adopted Resolution No. 8065 proclaiming the existence of a "local emergency" in accordance with Chapter 2.52 of the Redlands Municipal Code and determined that there was substantial evidence to proclaim a local emergency due to COVID-19 Pandemic. This proclamation was done after the declaration of a public emergency by the United States Department of Public Health and Human Services, the State of California, and the County of San Bernardino County Health Officer and the Board of Supervisors.
Since the declaration of the local emergency, the City's Emergency Operations Center was activated and remains at a Level III activation. Additionally, several measures were put in place to adhere to California Department of Public Health and to keep employees and residents safe. As of this time, all City facilities and services listed below are being provided to the public while adhering to state guidelines pertaining to the use of masks and physical distancing:
The City facilities reopened on May 3, 2021, adhering to public health orders that remain in effect.
The Library and the Lincoln Shrine remain open to the public with limited hours of operation.
The gymnasium/community center and Senior Center facilities remain open with no max capacity.
Dance and fitness classes, as well as court rentals remain open between the hours of 10:00am to 7:00pm, Monday through Friday.
Sports fields remain open for recreational activities such as tennis, pickleball, and golf programs, as well as for individual fitness opportunities.
The Household Hazardous Waste facility remains open on Saturdays from 9:00 a.m. to 2:00 p.m.
Regular City Council, Planning Commission, as well as city board and
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Regular City Council, Planning Commission, as well as city board and commission meetings are being held in person.
Updated protocols for the use of Personal Protective Equipment for all Fire Department Operations personnel.
Updated protocols for in-person contact with persons reporting crimes.
Updates for San Bernardino County
San Bernardino County, along with the rest of the state, fully reopened its economy on June 15, 2021, eliminating various restrictions and discontinuing the color-coded county tier system.
Restaurants, bars, retail stores, theaters, hotels and entertainment centers have returned to usual operations with no capacity limitations and no requirements for social distancing.
Fully vaccinated individuals can resume activities without wearing a mask or physically distancing, except where required by federal, state, local, tribal, or territorial laws, rules, and regulations, including local business and workplace guidance.
The County’s primary objective now is to continue expanding vaccinations of residents, and it has made obtaining a vaccine simple, easy and cost free.
Emergency Operations Planning and Response
The Emergency Operations Center (EOC) remains activated at a Level III since it was originally activated on March 16, 2020. A team of Responders was put together consisting of several City Department staff including Fire, Police, Information Technology, Human Resources Risk & Safety Division, Finance, and the City Manager's Office. The objective of the EOC Team, and the City as a whole, is to provide and maintain the safety for all City employees and the community, to keep essential services open and available to the community, provide a consistent message, and reduce the risk of the exposure and spread of COVID-19. Responders met regularly for status briefings and to ensure proper preparation, planning, prevention, and response to the COVID-19 pandemic.
With a focus on preparation, planning, prevention, and response, the EOC Team included specific roles for a PIO (primary and alternate), for the dissemination of consistent and critical information, a Safety Officer, and a Community Liaison. Additional categories were also added for Operations, Logistics, and Finance & Recovery. The focus of Finance & Recovery is to track personnel and non-personnel expenditures related to COVID-19 in order to seek reimbursement from the state.
The Latest COVID-19 Statistics:
As of Wednesday, March 2, 2022, COVID-19 numbers in the city of Redlands are as follows:
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Total Cases: 18,077
Community Cases: 17,576
Deaths: 306
Total Tests: 251,371
Vaccinations and Testing
Vaccinations are in good supply and readily available to any resident aged 12 and over, and there are vaccination sites located throughout the County. For more information on COVID-19 vaccinations please visit
sbcovid19.com/vaccine/
.
Testing appointments can be made through the San Bernardino County COVID-19 Response website as follows: https://sbcovid19.com/testing-sites/ .
SUBMITTED BY:
Rich Sessler, Interim Fire Chief
RECOMMENDED BY:
Charles M. Duggan, Jr., City Manager
Janice McConnell, Assistant City Manager
Fiscal Impact
Discussion:
The fiscal impact to the City due to COVID-19 as of March 2, 2022 is as follows:
Personnel: $2,009,669.73 (Fully Burdened)
Non-Personnel: $485,970.45 (Equipment and Supplies)
Total: $2,495,640.18
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City Council Meeting I. 10.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve Resolution No. 8289 Delegating Investment Authority to the City Treasurer Pursuant to Government Code Section 53607 (Management Services / Finance Director Garcia)
MOTION(S):
If the City Council determines that staff's recommendation is appropriate, the following motion is provided:
I move to adopt Resolution No. 8289.
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 8289 to authorize the annual delegation of duties of investing funds of the City to the City Treasurer in accordance with Government Code Section 53607.
DISCUSSION:
Government Code Section 53607 allows the City Council to delegate the authority of investing funds of the City to the City Treasurer for a one-year period.
ALTERNATIVES:
Not Applicable
STRATEGIC PLAN:
Not Applicable
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SUBMITTED BY:
Danielle Garcia, Management Services/Finance Director
RECOMMENDED BY:
Robert Dawes, City Treasurer
REVIEWED BY:
Charles M. Duggan, Jr. City Manager
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Fiscal Impact
Discussion:
There is no fiscal impact associated with approval of this resolution.
Attachments
Resolution No. 8289
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1 L:\ca\Reso\8289 Delegating Investment Authority to Treasurer.doc RESOLUTION NO. 8289
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
DELEGATING INVESTMENT AUTHORITY TO THE CITY TREASURER
PURSUANT TO GOVERNMENT CODE SECTION 53607
WHEREAS, Government Code section 53607 authorizes the City Council to delegate the duties of investing or reinvesting funds of the City, or to sell or exchange securities so purchased, to the City Treasurer for a period not exceeding one year; and
WHEREAS, it is the desire of the City Council to delegate investment authority of City funds to the City Treasurer;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS:
Section 1. T hat the City Treasurer is hereby delegated the authority to invest, or reinvest funds of the City, or to sell or exchange securities so purchased, for the period commencing on March 16, 2022, through March 15, 2023, pursuant to Government Code Section 53607.
Section 2. T hat the City Treasurer shall prepare a monthly report to the City Council of all transactions subject to this Resolution, as required by Government Code Section 53607.
ADOPTED, SIGNED AND APPROVED this 15th day of March, 2022.
______________________________
Paul T. Barich, Mayor
ATTEST:
______________________________
Jeanne Donaldson, City Clerk
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2 L:\ca\Reso\8289 Delegating Investment Authority to Treasurer.doc I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing Resolution was duly adopted by the City Council at a regular meeting thereof held on the 15th day of March 2022, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
____________________________________
Jeanne Donaldson, City Clerk
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City Council Meeting I. 11.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve Resolution No. 8306 approving the destruction of certain public records (Management Services/Finance Director Garcia) MOTION(S):
I move approval of Resolution No 8306.
RECOMMENDATION:
Staff recommends that Council approve Resolution No. 8306, approving the destruction of certain public records.
DISCUSSION:
Resolution No. 6576, a resolution of the City Council of the City of Redlands Adopting Regulations Governing the Retention and Disposition of Records, was adopted by the City Council on February 20, 2007. The resolution establishes a records retention and destruction policy to meet the City’s requirements under the law and to provide staff with a thorough and useful tool to manage, retain and dispose of public records.
In accordance with Resolution No. 6576, Exhibit A Section 6.02 approval by City Council and City Attorney is required when public records are destroyed without making a duplicate record, an application by the Finance/ Revenue department requesting the destruction of public records was submitted to the City Attorney for review and has been approved by him for presentation to the City Council. A description of the records is included as Exhibit “A” to Resolution No. 8306.
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ALTERNATIVES:
Do not approve destruction of certain public records.
STRATEGIC PLAN:
Not Applicable.
SUBMITTED BY:
Danielle Garcia, Management Services/Finance Director
RECOMMENDED BY:
Charles M. Duggan, Jr., City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
PREPARED BY:
Farrah Jenner, Assistant Finance Director
Fiscal Impact
Fiscal Year: 2021-2022
Revenue Generating: No
Appropriation Required Y/N: No
Amount: 1500
Budgeted Y/N: Y
Account No.: 101502
Discussion:
The cost for shredding services to destroy the documents is included in the Revenue division's budget.
Attachments
Resolution 8306 Destruction of Public Records
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1 L:\ca\Reso\8306 Destruction of Records - Finance.docx RESOLUTION NO. 8306
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS APPROVING
THE DESTRUCTION OF CERTAIN PUBLIC RECORDS
WHEREAS, the City Council of the City of Redlands adopted Resolution No. 6576 on February 20, 2007, which established regulations governing the retention and disposition of records; and
WHEREAS, in accordance with the requirements of Resolution No. 6576, the Management Services/Finance Department Revenue and Customer Service Divi sions have submitted an application for the destruction of certain public records which are described in Exhibit “A” to this Resolution;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as follows:
Section 1. That the application for the destruction of public records as described in Exhibit “A” is hereby approved.
ADOPTED, SIGNED AND APPROVED this 15th day of March, 2022.
______________________________
Paul T. Barich, Mayor
Attest:
______________________________
Jeanne Donaldson, City Clerk
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2 L:\ca\Reso\8306 Destruction of Records - Finance.docx I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was adopted by the City Council at a regular meeting thereof held on the 15 th day of March, 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Jeanne Donaldson, City Clerk
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City Council Meeting I. 12.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve a request for the serving and consumption of alcoholic beverages at Sylvan Park for Carol Jones' Retirement Party to be held on June 18, 2022, and determination that approval of the request is exempt from environmental review pursuant to Section 15061(b)(3) of the state’s guidelines implementing the California Environmental Quality Act (Assistant City Manager Boatman) MOTION(S):
If the City Council determines that staff's recommendation is appropriate, the following motions are provided:
I move that the City Council determine that approval of the request for the consumption of alcoholic beverages within a City park during Carol Jones' Retirement Party is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; and
1. I move to approve the request for the consumption of alcoholic beverages at Carol Jones' Retirement Party to be held on June 18, 2022.
2. RECOMMENDATION:
Staff recommends City Council determine that approval of the request for the serving and consumption of alcoholic beverages at Sylvan Park is exempt from further environmental review pursuant to Section 15061(b)(3) of the state’s guidelines implementing the California Environmental Quality Act; and provide staff with direction regarding the request for the consumption of alcoholic beverages at Sylvan Park for Carol Jones' Retirement Party to be held on June 18, 2022.
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DISCUSSION:
Carol Jones (Applicant) is hosting a party to celebrate her retirement on June 18, 2022. The Applicant has reserved Sylvan park and is requesting permission to serve beer and wine as a courtesy to her party guests. Serving alcohol at the event is scheduled to end no later than 6:00 p.m. The Redlands Municipal Code includes provisions that allow for the reservation of public areas by private parties. Staff’s approval authority for the consumption of alcoholic beverages is limited to only enclosed public spaces in public parks as defined by Resolution No. 7559. Therefore, City Council approval is required for the request for the sale and consumption of alcohol.
The Applicant has provided the City with certificates of insurance for public liability insurance to protect against loss from liability for damages on account of bodily injury and property damage arising from the applicant’s activity. Such insurance shall include not less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate of comprehensive general liability insurance, including bodily injury and property damage coverage, together with such other additional coverage as the City’s Risk Manager may determine to be prudent. Insurance coverage shall be obtained prior to the event and maintained for the duration of the applicant’s activity.
The proposed project is exempt from the requirements of the California Environmental Quality Act’s guidelines pursuant to Section 15061(b)(3). Section 15061(b)(3), referred to as the “general rule,” applies to those activities where it is seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Approval of the project authorizes the consumption of alcoholic beverages within an existing park and City property and will not result in any physical change to the environment.
ALTERNATIVES:
The City Council may deny the request.
STRATEGIC PLAN:
Not applicable.
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SUBMITTED BY:
Chris Boatman, Assistant City Manager
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Christopher R. Catren, Police Chief
PREPARED BY:
Larry Alms, Administrative Assistant II
Fiscal Impact
Fiscal Year: FY 2021-22
Amount: $251
Discussion:
There is no fiscal impact related to the approval of the request to serve alcohol.
The park reservation fee revenue of $251.00 will be applied to the Parks Division Fund (101303).
Attachments
A. Authorization to Serve Alcohol
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City Council Meeting I. 13.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve a modification to the purchase order with Universal Protection Service, LP, Doing Business As: Allied Universal Security Services to amend the total to an amount not to exceed $81,071.39, and to the purchase order with Executive Facilities Services to amend the total to an amount not to exceed $94,916.70 (Assistant City Manager Boatman)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motions are provided:
I move to approve the modification of the Purchase Order with Universal Protection Service, LP, Doing Business As: Allied Universal Security Services to amend the total to an amount not to exceed $81,071.39; and
1. I move to approve the modification of the Purchase Order with Executive Facilities Services, Inc. to amend the total to an amount not to exceed $94,916.70.
2. RECOMMENDATION:
Staff recommends that the City Council approve the modification of the purchase orders with Universal Protection Service, LP, Doing Business As:
Allied Universal Security Services to amend the total to an amount not to exceed $81,071.39, and Executive Facilities Services, Inc. to amend the total to an amount not to exceed $94,916.70.
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DISCUSSION:
In September 2021, the City Council approved an Assignment and Assumption Agreement (Agreement) with Redlands Community Investment Corporation which allowed the City to assume the existing service contracts and tenant agreements for the newly acquired facility located at 300 E. State Street.
Included within the Agreement was the services of Universal Protection Service, LP, Doing Business As: Allied Universal Security Services for security services at the facility and Executive Facilities Services, Inc., for janitorial services at the facility. Pursuant to the approval of the Agreement, staff prepared a sole source purchase order in the amount of $50,860.08 with Allied Universal Security Services and a sole source purchase order in the amount of $47,361.28 with Executive Facilities Services, Inc.
After the acquisition of the new facility, staff determined that additional hours were required to provide adequate security coverage to the tenants of the building. The original schedule included 56 weekly hours with one security officer scheduled on the weekends. The updated schedule includes 72 hours with two security officers opening and closing the building on the weekends. In addition, as of January 1, 2022, the State of California raised the minimum wage, requiring a higher per hour rate for security services. Based on these changes, a modification to the purchase order is required to provide for expenses that will be incurred through June 30, 2022.
Due to the Covid-19 pandemic, additional janitorial services were contracted for the facility. The initial purchase order created included charges for the basic janitorial services. Based on the need to continue the increased cleaning protocols, a modification to the purchase order is required to provide for expenses that will be incurred through June 30, 2022.
ALTERNATIVES:
City Council may elect not to approve the modification to the purchase orders and direct staff accordingly.
STRATEGIC PLAN:
Not Applicable
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SUBMITTED BY:
Chris Boatman, Assistant City Manager
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Dana Abramovitz-Daniel, Procurement Manager
PREPARED BY:
Tricia Swope, Manager, Facilities & Community Services
Fiscal Impact
Fiscal Year: 2021-22
Amount: 77,766.73
Budgeted Y/N: Y
Account No.: 101310
Discussion:
Sufficient funding for these services are included in the City Hall State Street (101310) budget for Fiscal Year 2021-22 as approved by City Council. Costs associated with any future renewal terms of the agreement will be included in subsequent budget requests prepared by the Department.
Attachments
A. Purchase Order - Allied Universal Services
B. Purchase Order - Executive Facilities Services
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Vendor
Bill To
Fiscal Year
Department
Purchase Order Date
Purchase Order Number
Required By
Ship To
VENDOR PHONE NUMBER REQUISITION NUMBERVENDOR NUMBERVENDOR FAX NUMBER DELIVERY REFERENCEBUYER NAME NOTES
ITEM # DESCRIPTION QUANTITY UOM UNIT PRICE EXTENDED PRICE
PURCHASE ORDER
200779
UNIVERSAL PROTECTION SERVICE LP
DBA: ALLIED UNIVERSAL SECURITY SERVICES
PO BOX 31001-2374
PASADENA, CA 91110-2374
CITY OF REDLANDS
PO BOX 3005
REDLANDS, CA 92373
EMAIL: [email protected]
*Emailing invoice and referencing PO No.
is required and will expedite payment*
.
FINBIL
22210846
FACILITIES & COMMUNITY SERVICE
09/30/2021
THIS PURCHASE ORDER NUMBER MUST APPEAR ON
ALL INVOICES, PACKAGES, AND SHIPPING PAPERS.
10/01/2021
FCSD City Hall
35 Cajon St
Suite 222
Redlands, CA 92373
FCSHLL
12211123 Citrus Center - 300 E State St200779 Tricia Swope SECURITY SERVICE-CITRUS CENTER 300 E STATE ST
PURCHAES ORDER TERM:
OCTOBER 1, 2021 - JUNE 30, 2022.
.
PURCHASE ORDER AS PER CITY COUNCIL APPROVAL AND ASSIGNMENT AND ASSUMPTION AGREEMENT DATED SEPTEMBER 21, 2021 .
PURCHASE ORDER WILL BE VALID ONLY WITH A CURRENT APPROVED MINIMUM LIABILITY COVERAGE ON FILE WITH RISK MANAGEMENT. .
NOT TO EXCEED DOLLAR AMOUNT PER PO TERM. THIS PO WILL BE CLOSED WHEN THE TOTAL AMOUNT IS EXHAUSTED. .
1.0000 EA $50,860.0800 $50,860.08PROVIDE UNARMED, UNIFORMED PROFESSIONAL SECURITY OFFICERS FOR THE CITY OF REDLANDS LOCATED AT CITRUS CENTER - 300 E STATE ST. 1 PROCUREMENT MANAGER Purchase Order Total
Total Ext. Price $50,860.08
$50,860.08
PURCHASING DIVISION - 1270 W. PARK AVE. REDLANDS, CA 92373 - Email: [email protected]
PLEASE SEE ATTACHED PURCHASE ORDER TERMS AND CONDITIONS
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CITY OF REDLANDS
PURCHASE ORDER TERMS AND CONDITIONS
unless otherwise specified in an executed agreement, the following shall apply
1. INVOICES: Each purchase order is to be invoiced separately and all invoices shall be submitted to the billing address as shown on the front of the Purchase Order. All invoices, shipping documents, correspondence, and-related papers must have the purchase order number and consignee shown clearly in their face.
2. PACKAGING AND DRAYAGE: Unless so specified on the Purchase Order and evidenced by a copy of the freight bill attached to the invoice, there shall be no charge to the City for either packaging and/or drayage
3. INSPECTION: All materials and workmanship provided under the terms of the Purchase Order are subject to inspection and test by the City to ensure compliance with the requirements and specifications contained therein. In the event that the goods or services delivered are defective, or are not in conformity with the Purchase Order, the City shall have the right to either reject said goods or services, or require that they be corrected or otherwise brought into conformity with the terms set forth in the Purchase Order.
4. RESPONSIBILITIES: Unless otherwise specified in the Purchase Order, the supplier/contractor shall be responsible for all items covered in said Purchase Order until delivered at the designated delivery point and thereafter accepted by the City. Supplier/contractor shall bear all risks as the goods and services provided until they are finally accepted by the City. Upon the City’s notice to supplier/contractor of its rejection of the goods or services provided or the need for the correction thereof. All such defective goods or services shall be removed from City premises, and any and all expenses incurred in the removal and/or correction of such defective goods or services shall be borne entirely by the supplier/contractor.
5. ACCEPTANCE: The City’s final acceptance of the goods or services provided under the Purchase Order shall be conclusive except in those instances where a latent defect or fraud is subsequently discovered, or when a supplier/contractor has committed such gross mistakes that they are tantamount to a fraud. The City’s failure to inspect and either accept or reject the goods or services delivered shall not relieve the supplier/contractor for the responsibility for strict compliance with the terms and specifications of the Purchase Order.
6. CHANGES: This Purchase Order may, at any time, be changed with regard to the materials or services to be furnished, the quantity ordered, the unit price, discount, delivery point or arrangements, terms or any other matters affecting a valid order. However, in order to be effective, any such change or amendment causes an increase or decrease in the cost of performance hereunder, an equitable adjustment shall be made to reflect the increase or the decrease in the cost thereof. Any such adjustment shall be subject to the written approval of the Purchasing Agent. No variation in the quality, quantity, or coat of any item called for by this Purchase Order Shall be acceptable by the City except in pursuance of a written Change Order approved by the Purchasing Agent.
7. TERMINATION: This Purchase Order may be terminated, in whole or in part, at any time, by written notice to the supplier/contractor. Such termination shall be effective with respect to the quantity, manner, and time specified in such notice. The City shall be liable at the stipulated price only for such materials and/or services as have been delivered and/or rendered and accepted as of the effective date of said written notice. The City shall not be liable for any excess cost arising out of such termination, and failure of the supplier/contractor to cease delivery and/or work upon receipt of such termination notice shall not occasion a claim for extra costs.
8. TIME IS OF THE ESSENCE: In the event that the supplier/contractor fails to perform this Purchase Order within the time specified, the Purchasing Agent may, by written notice, order the supplier/contractor to cease further deliveries and may hold the supplier/contractor liable for any damages caused to the City by reason of such delay. If no time is specified, it is expected that the supplier/contractor shall begin performance within a reasonable time after placement of the order. The City may extend periods of performance if the facts as to the cause of the delay, in sole opinion of the Purchasing Agent, justify such an extension.
9. LIABILTIY: The supplier/contractor shall defend, indemnify and hold harmless the City, its elected officials, officers, employees, and agents from all claims, losses, damages, costs, expenses and suits, in law or in equity, because of personal injury, property damage, or alleged or actual patent infringements, based on the performance of this Purchase Order or asserted against it. Further, supplier/contractor warrants that the City shall not be responsible for any damages that may be claimed by reason or death injury of the person of the supplier/contractor’s officer, agents, employees, invitees or licensees or for damage to any property of the supplier/contractor or any other damage that may arise or result at anytime because of personal injury or damage to property sustained by any other person or persons, which may have been caused or contributed by proximately or otherwise by reason of, or in course of, carrying out this Purchase Order.
10. DISPUTES: All disputes concerning questions of fact which may arise under this Purchase Order under this Purchase Order, and not disposed of by mutual agreement and/or consent, shall be decided by the sole discretion of the Purchasing Agent. All disputes concerning questions of law, which may arise under this Purchase Order, shall be decided under applicable laws of the State of California.
11. PAYMENTS: Payments shall be made upon submission of an itemized invoice, presented in duplicate of the prices stipulated in the Purchase Order and within 30 days of becoming due for supplies delivered and accepted or services rendered and accepted, less deductions if any. When requested by the supplier/contractor, payment on partial deliveries may be made whenever, in the sole discretion of the Purchasing Agent, the surrounding circumstances warrant such partial payment. In the event and, if for any reason, an overpayment is made; the City requires prompt refund of said overpayment by way of supplier/contactor’s properly referenced check.
12. LICENSOR: All supplier/contractors who perform work within the City, must have on file at the Redlands City Revenue Office, a current and valid city business license.
13. CONFORMITY WITH SAFETY ORDERS: The goods and/or services covered by this Purchase Order or contract must conform to the safety order of OSHA, CAL-OSHA, and/or NIOSHA and any and all applicable material safety data sheets (MSDS).
14. PREVAILING WAGES: When applicable, the City is subject to the State of California prevailing wage laws as set forth in California Labor Code Section 1770 et seq. The contractor is responsible for determining the appropriate Department of Industrial Relations (DIR) classification for the various employees and subcontractors used for a particular project or service. The rates for each classification are posted on the DIR website at http://www.dir.ca.gov/DIRdatabases.html. All contractors performing work for the City are responsible for abiding by all applicable prevailing wage laws, and must furnish the City with Certified Payroll Records upon request.
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Vendor
Bill To
Fiscal Year
Department
Purchase Order Date
Purchase Order Number
Required By
Ship To
VENDOR PHONE NUMBER REQUISITION NUMBERVENDOR NUMBERVENDOR FAX NUMBER DELIVERY REFERENCEBUYER NAME NOTES
ITEM # DESCRIPTION QUANTITY UOM UNIT PRICE EXTENDED PRICE
PURCHASE ORDER
200776
EXECUTIVE FACILITIES SERVICES INC
6865 WEAVER ST
RIVERSIDE, CA 92504
CITY OF REDLANDS
PO BOX 3005
REDLANDS, CA 92373
EMAIL: [email protected]
*Emailing invoice and referencing PO No.
is required and will expedite payment*
.
FINBIL
22210845
FACILITIES & COMMUNITY SERVICE
09/30/2021
THIS PURCHASE ORDER NUMBER MUST APPEAR ON
ALL INVOICES, PACKAGES, AND SHIPPING PAPERS.
10/01/2021
FCSD City Hall
35 Cajon St
Suite 222
Redlands, CA 92373
FCSHLL
12211122200776 Tricia Swope
JANITORIAL SERVICES-CITRUS CENTER 300 E STATE ST
ORDER TERM: OCTOBER 1, 2021 - JUNE 30, 2022.
.
PURCHASE ORDER AS PER CITY COUNCIL APPROVAL AND ASSIGNMENT AND ASSUMPTION AGREEMENT DATED SEPTEMBER 30, 2021. .
NOT TO EXCEED DOLLAR AMOUNT PER PO TERM. THIS PO WILL BE CLOSED WHEN THE TOTAL AMOUNT IS EXHAUSTED. .
PURCHASE ORDER WILL BE VALID ONLY WITH A CURRENT APPROVED MINIMUM LIABILITY COVERAGE ON FILE WITH RISK MANAGEMENT. .
1.0000 EA $47,361.2800 $47,361.28PROVIDE JANITORIAL SERVICES FOR THE CITY OF REDLANDS CITRUS CENTER LOCATED AT 300 E STATE STREET.
1 PROCUREMENT MANAGER Purchase Order Total
Total Ext. Price $47,361.28
$47,361.28
PURCHASING DIVISION - 1270 W. PARK AVE. REDLANDS, CA 92373 - Email: [email protected]
PLEASE SEE ATTACHED PURCHASE ORDER TERMS AND CONDITIONS
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CITY OF REDLANDS
PURCHASE ORDER TERMS AND CONDITIONS
unless otherwise specified in an executed agreement, the following shall apply
1. INVOICES: Each purchase order is to be invoiced separately and all invoices shall be submitted to the billing address as shown on the front of the Purchase Order. All invoices, shipping documents, correspondence, and-related papers must have the purchase order number and consignee shown clearly in their face.
2. PACKAGING AND DRAYAGE: Unless so specified on the Purchase Order and evidenced by a copy of the freight bill attached to the invoice, there shall be no charge to the City for either packaging and/or drayage
3. INSPECTION: All materials and workmanship provided under the terms of the Purchase Order are subject to inspection and test by the City to ensure compliance with the requirements and specifications contained therein. In the event that the goods or services delivered are defective, or are not in conformity with the Purchase Order, the City shall have the right to either reject said goods or services, or require that they be corrected or otherwise brought into conformity with the terms set forth in the Purchase Order.
4. RESPONSIBILITIES: Unless otherwise specified in the Purchase Order, the supplier/contractor shall be responsible for all items covered in said Purchase Order until delivered at the designated delivery point and thereafter accepted by the City. Supplier/contractor shall bear all risks as the goods and services provided until they are finally accepted by the City. Upon the City’s notice to supplier/contractor of its rejection of the goods or services provided or the need for the correction thereof. All such defective goods or services shall be removed from City premises, and any and all expenses incurred in the removal and/or correction of such defective goods or services shall be borne entirely by the supplier/contractor.
5. ACCEPTANCE: The City’s final acceptance of the goods or services provided under the Purchase Order shall be conclusive except in those instances where a latent defect or fraud is subsequently discovered, or when a supplier/contractor has committed such gross mistakes that they are tantamount to a fraud. The City’s failure to inspect and either accept or reject the goods or services delivered shall not relieve the supplier/contractor for the responsibility for strict compliance with the terms and specifications of the Purchase Order.
6. CHANGES: This Purchase Order may, at any time, be changed with regard to the materials or services to be furnished, the quantity ordered, the unit price, discount, delivery point or arrangements, terms or any other matters affecting a valid order. However, in order to be effective, any such change or amendment causes an increase or decrease in the cost of performance hereunder, an equitable adjustment shall be made to reflect the increase or the decrease in the cost thereof. Any such adjustment shall be subject to the written approval of the Purchasing Agent. No variation in the quality, quantity, or coat of any item called for by this Purchase Order Shall be acceptable by the City except in pursuance of a written Change Order approved by the Purchasing Agent.
7. TERMINATION: This Purchase Order may be terminated, in whole or in part, at any time, by written notice to the supplier/contractor. Such termination shall be effective with respect to the quantity, manner, and time specified in such notice. The City shall be liable at the stipulated price only for such materials and/or services as have been delivered and/or rendered and accepted as of the effective date of said written notice. The City shall not be liable for any excess cost arising out of such termination, and failure of the supplier/contractor to cease delivery and/or work upon receipt of such termination notice shall not occasion a claim for extra costs.
8. TIME IS OF THE ESSENCE: In the event that the supplier/contractor fails to perform this Purchase Order within the time specified, the Purchasing Agent may, by written notice, order the supplier/contractor to cease further deliveries and may hold the supplier/contractor liable for any damages caused to the City by reason of such delay. If no time is specified, it is expected that the supplier/contractor shall begin performance within a reasonable time after placement of the order. The City may extend periods of performance if the facts as to the cause of the delay, in sole opinion of the Purchasing Agent, justify such an extension.
9. LIABILTIY: The supplier/contractor shall defend, indemnify and hold harmless the City, its elected officials, officers, employees, and agents from all claims, losses, damages, costs, expenses and suits, in law or in equity, because of personal injury, property damage, or alleged or actual patent infringements, based on the performance of this Purchase Order or asserted against it. Further, supplier/contractor warrants that the City shall not be responsible for any damages that may be claimed by reason or death injury of the person of the supplier/contractor’s officer, agents, employees, invitees or licensees or for damage to any property of the supplier/contractor or any other damage that may arise or result at anytime because of personal injury or damage to property sustained by any other person or persons, which may have been caused or contributed by proximately or otherwise by reason of, or in course of, carrying out this Purchase Order.
10. DISPUTES: All disputes concerning questions of fact which may arise under this Purchase Order under this Purchase Order, and not disposed of by mutual agreement and/or consent, shall be decided by the sole discretion of the Purchasing Agent. All disputes concerning questions of law, which may arise under this Purchase Order, shall be decided under applicable laws of the State of California.
11. PAYMENTS: Payments shall be made upon submission of an itemized invoice, presented in duplicate of the prices stipulated in the Purchase Order and within 30 days of becoming due for supplies delivered and accepted or services rendered and accepted, less deductions if any. When requested by the supplier/contractor, payment on partial deliveries may be made whenever, in the sole discretion of the Purchasing Agent, the surrounding circumstances warrant such partial payment. In the event and, if for any reason, an overpayment is made; the City requires prompt refund of said overpayment by way of supplier/contactor’s properly referenced check.
12. LICENSOR: All supplier/contractors who perform work within the City, must have on file at the Redlands City Revenue Office, a current and valid city business license.
13. CONFORMITY WITH SAFETY ORDERS: The goods and/or services covered by this Purchase Order or contract must conform to the safety order of OSHA, CAL-OSHA, and/or NIOSHA and any and all applicable material safety data sheets (MSDS).
14. PREVAILING WAGES: When applicable, the City is subject to the State of California prevailing wage laws as set forth in California Labor Code Section 1770 et seq. The contractor is responsible for determining the appropriate Department of Industrial Relations (DIR) classification for the various employees and subcontractors used for a particular project or service. The rates for each classification are posted on the DIR website at http://www.dir.ca.gov/DIRdatabases.html. All contractors performing work for the City are responsible for abiding by all applicable prevailing wage laws, and must furnish the City with Certified Payroll Records upon request.
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City Council Meeting I. 14.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the Planning Commission's Report on its finding of conformance with the City of Redlands General Plan, determination that approval of the proposed Purchase and Sale agreement is exempt from review under the California Environmental Quality Act, approval of a Purchase and Sale Agreement with San Bernardino Valley Municipal Water District for the acquisition of Assessor's Parcel No. 0168-091-07-0000 in the amount of $22,500, and approval of an additional appropriation in the same amount for the purchase (Assistant City Manager Boatman)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motions are provided:
I move that the City Council find that the Purchase and Sale Agreement for Assessor’s Parcel No. 0168-091-07-0000 is exempt from review under the California Environmental Quality Act pursuant to Section 15061(b)(3) of the State Guidelines implementing CEQA; and
1. I move that the City Council approve the Purchase and Sale Agreement with San Bernardino Valley Municipal Water District for the acquisition of Assessor's Parcel No. 0168-091-07-0000 in the amount of $22,500, and approve an additional appropriation of the same.
2. RECOMMENDATION:
Staff recommends that the City Council find that the acquisition of Assessor’s Parcel No. 0168-091-07-0000 is in conformance with the City of Redlands General Plan, determine that the Purchase and Sale Agreement with San Bernardino Valley Municipal Water District is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines, approve the Purchase and Sale Agreement with San Bernardino Valley Municipal Water District, and approve the additional appropriation.
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DISCUSSION:
A 2,500 square foot parcel of land located within the City's Sport Park is owned by the San Bernardino Valley Municipal Water District (District). On November 16, 2021, the City Council reviewed the District's offer as part of its closed session agenda and authorized staff to negotiate a purchase of the property.
The following is a list of salient terms of the attached purchase and sale agreement:
Purchase Price: $22,5001.
Opening of Escrow: Escrow opening shall be the date upon which Escrow receives a fully executed copy of the Purchase and Sale Agreement $1,000 to be deposited with escrow holder within two business days following the opening of escrow
2. Due Diligence Period of 30 days3.
Escrow shall close within five (5) days after waiver of contingencies4.
City accepts property in “as-is” condition5.
Closing Costs: Seller and Buyer each pay one-half of escrow fees6.
Furthermore, approval of the Purchase and Sale Agreement is exempt from review under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3). Staff recommends the City Council determine that there is no possibility that the proposed property acquisition will result in a physical change in the environment. The acquisition includes the purchase of existing property that will continue to be utilized as a public park. Section 15061(b)(3) states that an activity is covered by the "common sense" exemption where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The approval of the agreement will only transfer ownership of the subject property and will not result in a physical change in the environment. Therefore, the proposed purchase is exempt from further CEQA review.
Determination of General Plan Conformity
Prior to acquisition or sale of real property by a local agency, Government Code Section 65402 requires that such acquisition or sale be submitted to the Planning Commission for an evaluation as to its conformity with the General Plan. The proposed sale herein for the property identified as APN 0168-091-07-0000 was submitted to the Planning Commission for evaluation on February 22, 2022.
The Planning Commission (Commission) evaluated the proposed acquisition for General Plan conformity and provided its report through the adoption of a resolution (Attachment B). Through the adoption of this resolution, the Commission found that the sale would be in conformance with the General Plan
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in that it is consistent with General Plan Policies.
While the Commission approved the aforementioned resolution, determining that the acquisition of the property is in conformance with the General Plan, the final determination on General Plan conformity is at the discretion of the City Council, and it is staff's recommendation that the acquisition of the property is in conformance with the General Plan.
ALTERNATIVES:
City Council may elect not to approve the Purchase and Sale Agreement and direct staff accordingly.
STRATEGIC PLAN:
Not applicable
SUBMITTED BY:
Chris Boatman, Assistant City Manager
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:
Tricia Swope, Manager, Facilities & Community Services
Fiscal Impact
Fiscal Year: FY 2021-22
Appropriation Required Y/N: Y
Amount: 22,500
Account No.: 250400
Discussion:
Staff is recommending an additional appropriation in the amount of $22,500, for the purchase of this property which will be offset with the release of Park Development Funds. The current cash balance of Park Development Fund (250) is $1,823,899 with a projected Fiscal Year 2021/22 unrestricted cash balance of $1,872,320.
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Attachments
A. Purchase and Sale Agreement with SBVMWD
B. Map of Property
C. Additional Appropriation Form
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PURCHASE AND SALE AGREEMENT
AND IRREVOCABLE ESCROW INSTRUCTIONS
by and between
SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT,
a California municipal water district,
as
“Seller”,
and
CITY OF REDLANDS,
a California municipality,
as
“Buyer”
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i
TABLE OF CONTENTS
ARTICLE I PURCHASE AND SALE ..................................................................................1 Section 1.1 Agreement of Purchase and Sale. ................................................................1 Section 1.2 Purchase Price. .............................................................................................2 Section 1.3 Payment of Purchase Price...........................................................................2 Section 1.4 Deposit. ........................................................................................................2 Section 1.5 Deposit as Liquidated Damages. ..................................................................2 ARTICLE II TITLE ................................................................................................................3 Section 2.1 Delivery of Title Documents. ......................................................................3 Section 2.2 Title Examination.........................................................................................3 Section 2.3 Permitted Exceptions. ..................................................................................4 ARTICLE III ESCROW AND CLOSING ...............................................................................5 Section 3.1 Opening of Escrow. .....................................................................................5 Section 3.2 Seller’s Deposits. .........................................................................................5 Section 3.3 Buyer’s Deposits. .........................................................................................6 Section 3.4 Concurrent Conditions. ................................................................................6 Section 3.5 Closing. ........................................................................................................6 Section 3.6 Closing Procedure. .......................................................................................6 Section 3.7 Recording and Distribution of Documents. .................................................7 Section 3.8 Conditions Precedent to Obligation of Buyer. .............................................7 Section 3.9 Conditions Precedent to Obligation of Seller. .............................................7 Section 3.10 Credits and Prorations. .................................................................................8 Section 3.11 Transaction Taxes and Closing Costs. .........................................................9 ARTICLE IV DUE DILIGENCE ...........................................................................................10 Section 4.1 Due Diligence. ...........................................................................................10 Section 4.2 Inspection of Seller’s Documents. .............................................................10 Section 4.3 Physical Inspection. ...................................................................................11 ARTICLE V REPRESENTATIONS AND WARRANTIES................................................12 Section 5.1 Representations and Warranties of Seller. .................................................12 Section 5.2 Disclaimer of Further Representations and Warranties. ............................13 Section 5.3 Release. ......................................................................................................16 Section 5.4 Definitions..................................................................................................16
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Section 5.5 Representations and Warranties of Buyer. .................................................17 Section 5.6 Buyer’s Investigations. ..............................................................................18 Section 5.7 Buyer’s Indemnity. ....................................................................................18 Section 5.8 Procedure for Claims. ................................................................................19 ARTICLE VI DEFAULT .......................................................................................................20 Section 6.1 Default........................................................................................................20 Section 6.2 Default by Buyer. .......................................................................................20 Section 6.3 Default by Seller. .......................................................................................20 ARTICLE VII CONDEMNATION .........................................................................................20 Section 7.1 Definition of Terms....................................................................................20 Section 7.2 Taking. .......................................................................................................20 Section 7.3 Distribution of Award. ...............................................................................21 ARTICLE VIII BROKERAGE COMMISSIONS ....................................................................21 Section 8.1 Brokers. ......................................................................................................21 ARTICLE IX MISCELLANEOUS ........................................................................................21 Section 9.1 Incorporation of Recitals and Exhibits. .....................................................21 Section 9.2 Successors and Assigns..............................................................................21 Section 9.3 Notices. ......................................................................................................21 Section 9.4 Entire Agreement. ......................................................................................22 Section 9.5 Modifications. ............................................................................................22 Section 9.6 Further Assurances.....................................................................................22 Section 9.7 Counterparts. ..............................................................................................23 Section 9.8 Electronic Signatures. ................................................................................23 Section 9.9 Severability. ...............................................................................................23 Section 9.10 Applicable Law. .........................................................................................23 Section 9.11 No Third Party Beneficiary. .......................................................................23 Section 9.12 Captions. ....................................................................................................23 Section 9.13 Construction. ..............................................................................................23 Section 9.14 Recordation. ...............................................................................................23 Section 9.15 Date of Performance. .................................................................................23 Section 9.16 Attorneys’ Fees. .........................................................................................23 Section 9.17 Time of Essence. ........................................................................................24
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EXHIBIT “A” – LEGAL DESCRIPTION
EXHIBIT “B” – GRANT DEED
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1 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn
PURCHASE AND SALE AGREEMENT
AND IRREVOCABLE ESCROW INSTRUCTIONS
THIS PURCHASE AND SALE AGREEMENT AND IRREVOCABLE ESCROW INSTRUCTIONS (“Agreement”) is made as of 15th day of March, 2022 (“Effective Date”), by and between San Bernardino Valley Municipal Water District, a California municipal water district organized and existing under the Municipal Water District Law of 1911 (Water Code §71000 et seq.) (“Seller”), and City of Redlands, a California municipality and general law city (“ Buyer”).
Seller and Buyer are sometimes referred to in this Agreement individually as a “ Party” or collectively as the “Parties.”
RECITALS
A. Seller is the owne r of approximately 2,500 square feet of real property, including all improvements thereon and appurtenances thereto, generally located west of Wabash Avenue along the north line of San Bernardino Avenue in the city of Redlands, county of San Bernardino, State of California, more particularly identified as Assessor Parcel No. 0168-091-07, and more particularly described in the legal description attached as Exhibit “A” hereto and incorporated herein by this reference (“Property”).
B. Seller desires to sell the Property to Buyer and Buyer desires to purchase the Property from Seller on the terms and conditions set forth in this Agreement.
OPERATIVE PROVISIONS
NOW, THEREFORE, incorporating the foregoing Recitals , and in consideration of the mutual covenants and conditions contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:
ARTICLE I
PURCHASE AND SALE
Section 1.1 Agreement of Purchase and Sale. Subject to the terms and co nditions set forth in this Agreement, Seller agrees to sell and convey the Property to Buyer, and Buyer agrees to purchase the Property from Seller , on an AS -IS, WHERE -IS basis with all faults . It is specifically understood that Buyer , as of the Closing Date (as defined in Section 3.5), will have conducted its own due diligence in accordance with this Agreement to satisfy itself with respect to the condition of title of the Property, the physical and environmental condition of the Property, the current and future entitlements to the Property, as well as other conditions of the Property. During Buyer’s due diligence of the Property, Buyer shall not rely on any representations or warranties of Seller regarding the Property, except as expressly set forth in this Agreement. An escrow account for the purpose of consummating the transactions contemplated by this Agreement (“Escrow”) shall be established at First American Title Insurance Company, Attn: Kelly Simoneau, Senior Commercial Escrow Officer, 3281 East Guasti Road, Suite 440, Ontario, California 91761, (909) 510-6200, [email protected] (“Escrow Holder”). Buyer and Seller will execute additional
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2 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn instructions, documents, and forms provided by Escrow Holder that are reasonably necessary to close the Escrow, as directed by Escrow Holder, within seven (7) days after receipt of same.
Section 1.2 Purchase Price. The purchase price for the Property paid by Buyer to Seller will be Twenty -Two Thousand Five Hundred Dollars and Zero Cents ($ 22,500.00) (“Purchase Price”).
Section 1.3 Payment of Purchase Price. The Purchase Price will be paid in full through Escrow at the Closing in cash or by wire transfer of immediately available funds to a bank account designated by Escrow Holder through written instructions provided to Buyer before the Closing.
Section 1.4 Deposit.
Within two (2) business days after the Effective Date, Buyer shall deliver to the Escrow Holder the sum of One Thousand Dollars and Zero Cents ($1,000.00) (“Deposit”), which shall be held in Escrow pursuant to the terms of this Agreement. The Deposit shall be delivered to the Escrow Holder in good funds either by certified bank or cashier’s check or by wire transfer. The Escrow Holder shall place the Deposit in an interest -bearing account on Buyer ’s behalf. The Deposit shall be applied to the Purchase Price in accordance with this Agreement.
The Deposit shall be fully refundable to Buyer during the Title Examination Period (as defined in Section 2.2(a)) and the Contingency Period (as defined in Section 4.1). Provided this Agreement is not terminated as provided in Section 2.2(a) or Section 4.1, then Escrow Holder shall promptly release to Seller the Deposit and the Deposit shall be non -refundable to Buyer, but applicable to the Purchase Price, except as otherwise provided in this Agreement.
Within five (5) business days after Escrow Holder’s receipt of the Deposit, Escrow Holder shall release to Seller the amount of One Hundred Dollars and Zero Cents ($100.00) as and for independent consideration for Seller ’s execution of this Agreement and the granting of the Contingency Period to Buyer as herein provided. Such portion of the Deposit to be released to Seller shall be non-refundable to Buyer, but applicable to the Purchase Price.
Section 1.5 Deposit as Liquidated Damages . THE DEPOSIT SHALL BE
RETAINED BY SELLER AS LIQUIDATED DAMAGES IN THE EVENT THE SALE OF
THE PROPERTY AS CONT EMPLATED IN THIS AGREEMENT IS NOT CONSUMMATED FOR ANY REASON, EXCEPT SELLER’ S DEFAULT, AFTER THE EXPIRATION OF THE CONTINGENCY PERIOD. THE PARTIES ACKNO WLEDGE THAT SELLER’S ACTUAL DAMAGES IN THE EVENT THAT THE S ALE IS NOT SO
CONSUMMATED WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. THEREFOR E, BY SEPARATELY INI TIALING THIS SECTION 1.5 ,
THE PARTIES ACKNOWLEDGE THAT THE DEPOSIT HAS BEEN AGREED UPON, AFTER NEGOTIATION, AS THE PARTIES’ REASONABLE ESTIMATE OF SELLER’S DAMAGES AND AS SELLE R’S EXCLUSIVE REMEDY AGAINST BUYER IN THE
EVENT THE CLOSING DOES NOT OCCUR AFTER THE EXPIRATION OF TH E CONTINGENCY PERIOD F OR REASONS OTHER THA N SELLER ’S DEFAULT.
BUYER AND SELLER AGREE TO EXECUTE ANY ADDITIONAL DOCUMENTS
THAT MAY BE REQUIRED BY ESCROW HOLDER TO EFFECTUATE THE TERMS OF THIS SECTION 1.5 . BY THEIR SEPARATELY INITIALING THIS SECTION 1.5 ,
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BUYER AND SELLER ACKNOWLED GE THAT THEY HAVE READ AND
UNDERSTOOD THE ABOVE PROVISION COVERING LIQUIDATED DAMAGES AND
THAT EACH PARTY WAS REPRESENTED BY COUNS EL WHO EXPLAINED THE
CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION AT THE TIME THIS AGREEMENT WAS EXECUTED.
BUYER’S INITIALS ___________ SELLER’S INITIALS ___________
ARTICLE II
TITLE
Section 2.1 Delivery of Title Documents. Seller will contract with First American Title Insurance Company (“Title Company”), at Seller’s expense, to cause Title Company to issue and deliver to Buyer within five business (5) days after the Effective Date, or a soon thereafter as may be commercially feasible: (a) a current title commitment (“ Title Report”); and (b) legible copies of all documents referred to in the Title Report (“Title Exception Documents”). The Title Report and the Title Exception Documents are collectively referred to in this Agreement as the “ Title Documents.”
Section 2.2 Title Examination.
Buyer shall notify Seller in writing (“Title Notice”) no later than 5:00 p.m. (Pacific Time) on the date which is ten (10) business days after the Effective Date (“Title Examination Period”) which exceptions to title (including survey matters) , if any, will not be accepted by Buyer. If Buyer fails to timely provide Seller with the Title Notice on or before the expiration date of the Title Examination Period, then Buyer shall be deemed to have elected not to proceed with the purchase of the Property. If Buyer delivers the Title Notice to Seller objecting to any exceptions to title, then Seller shall have three (3) business days after receipt of the Title Notice to notify Buyer in writing of the following: (i) that Seller will remove the objectionable exceptions from title on or before the Closing; or (ii) that Seller elects not to cause the exceptions to be removed. If Seller fails to notify Buyer in writing of its election within the three (3) day period, Seller will be deemed to have elected not to cause the exceptions to be cured. The procurement by Seller of a commitment for the issuance of the Title Policy (as defined in Section
3.6) or an endorsement thereto satisfactory to Buyer in its reasonable discretion and insuring Buyer against any title exception which was disapproved pursuant to this Section 2.2 shall be deemed a cure by Seller of Buyer’s disapproval. If Seller gives Buyer notice under clause (ii) above or fails to notify Buyer of its election, then Buyer shall have two (2) business days within which to notify Seller in writing that Buyer will nevertheless proceed with the purchase and take title to the Property subject to such exceptions, or that Buyer will terminate this Agreement (“Buyer Written Title Election”). If Buyer fails to provide Seller with a Buyer Written Title Election before the expiration of the two (2) day period referenced in the preceding sentence, then Buyer shall be deemed to have elected not to proceed with the purchase of the Property. If this Agreement is terminated pursuant to the foregoing provisions of this Section, then neither Party shall have any further rights or obligations under this Agreement (except for any indemnity obligations of Seller and Buyer pursuant to the other provisions of this Agreement), the Deposit and all interest thereon less escrow cancellation fees shall be returned to Buyer, and each Party shall bear its own costs incurred concerning this Agreement.
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4 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn If the Title Company issues an updated Title Report prior to the Closing identifying exceptions that were not included within the original Title Report (“ Additional Exceptions”), Buyer shall notify Seller an d Escrow Holder in writing (the “ Additional Title Notice”) no later than five (5) days immediately following Buyer ’s receipt of the updated Title Report (“Additional Title Examination Period”), which Additional Exceptions to title, if any, will not be accepted by Buyer. If Buyer fails to timely provide Seller with the Additional Title Notice on or before the expiration of the Additional Title Examination Period, then Buyer shall be deemed to have elected not to proceed with the purchase of the Property. If Buyer delivers the Additional Title Notice to Seller and Escrow Holder objecting to any material Additional Exceptions to title, then Seller shall have three (3) business days after receipt of the Additional Title Notice to notify Buyer and Escrow Holder in writing of the following: (i) that Seller will remove such objectionable Additional Exceptions from title on or before the Closing; or ( ii) that Seller elects not to cause such Additional Exceptions to be removed. If Seller fails to notify Buyer and Escrow Holder in writing of its election within said three (3) day period, Seller shall be deemed to have elected not to cause such Additional Exceptions to be cured. The procurement by Seller of a commitment for the issuance of the Title P olicy (as defin ed in
Section 3.6 below) or an endorsement thereto
satisfactory to Buyer in its reasonable discretion and insuring Buyer against any material Additional Exception that was disapproved pursuant to this Section 2.2(b) shall be deemed a cure by Seller of such disapproval. If Seller gives Buyer notice under clause (ii) above or fails to notify Buyer and Escrow Holder in writing of its election , then Buyer shall have two (2) business days within which to notify Seller and Escrow Holder in writing that Buyer will nevertheless proceed with the purchase and take title to the Property subject to such exceptions, or that Buyer will terminate this Agreement (“ Additional Title Election”). If Buyer fails to provide Seller with an Additional Title Election prior to the expiration of the two (2) day period referenced in the preceding sentence, then Buyer shall be deemed to have elected not to proceed with the purchase of the Property. If this Agreement is terminated pursuant to the foregoing provisions of this paragraph, then neither Party shall have any further rights or obligations hereunder (except for any terms which expressly survive termination, including, but not limited to, the indemnity obligations of Seller and Buyer pursuant to the other provisions of this Agreement and except for any escrow fee owed to Escrow Holder which shall be divided equally between the Parties), the Deposit and all interest accrued thereon less escrow cancellation fees shall be returned to Buyer, and each Party shall bear its own costs incurred hereunder.
Section 2.3 Permitted Exceptions . The Property shall be conveyed subject to the following matters, which are hereinafter referred to as the “Permitted Exceptions”:
Those matters shown on Title Report that either are not objected to in writing or deemed objected to within the time periods provided in Section 2.2 above, or if objected to in writing by the Buyer, are those which Seller has elected not to remove or cure, or has been unable to remove or cure, and subject to which Buyer has elected in writing to accept the conveyance of the Property;
The lien of all ad valorem real estate taxes, special taxes , and assessments not yet due and payable as of the Closing Date, subject to adjustment as herein provided, but specifically excluding any escape assessments or supplemental assessments relating to the period before the Closing;
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Seller shall satisfy and discharge any liens attributable to Seller on the Property prior to or at Closing.
ARTICLE III
ESCROW AND CLOSING
Section 3.1 Opening of Escrow. Within two (2) business days after the Effective Date, Buyer and Seller shall deposit a fully executed copy of this Agreement with Escrow Holder. Upon the Opening of Escrow, Buyer shall deliver the Deposit to the Escrow Holder as provided in Section 1.4 above. If the Deposit has not been delivered as required hereunder, this Agreement shall be null and void and of no further force and effect. For purposes of this Agreement, the “Opening of Escrow ” shall be the date on which such executed copy of this Agreement is deposited with Escrow Holder. This Agreement shall also constitute instructions to Escrow Holder. If there is any conflict between the provisions of th is Agreement and the terms of any general escrow provisions agreed upon by Buyer and Seller, the provisions of this Agreement shall control.
Section 3.2 Seller’s Deposits. No later than the business day immediately preceding the Closing, Seller shall deliver to Escrow Holder the following:
A duly executed and notarized grant deed (“Deed”) substantially in the form attached hereto as Exhibit “B” and by this reference made a part hereof; Such evidence as the Title Company may reasonably require as to the authority of the person or persons executing documents on behalf of Seller; Such documents as the Title Company may reasonably require to issue an ALTA Extended Coverage Owner’s Policy of Title (as described in Section 3.6(d) below); provided, however, that Seller’s delivery of such documents to Escrow Holder shall not be a condition to Buyer’s obligation to close Escrow, and Seller’s failure to deliver such documents to Escrow Holder shall not constitute a breach of Seller’s obligations hereunder, if such documents are not reasonably available to Seller and the Title Company is prepared to issue an ALTA Standard Coverage Owner’s Policy of Title Insurance (as described in Section 3.6(d) below); An executed closing statement reasonably acceptable to Seller; A Certification of Non -Foreign Status certifying, pursuant to Internal Revenue Code Section 1445, that Seller is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as these terms are defined in the Internal Revenue Code and U.S.
Department of Treasury Regulations);
A California Real Estate Withholdin g Exemption Certificate, signed by Seller pursuant to Revenue and Taxation Code Sections 18662 and 18668 or any successor statutes; and
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Section 3.3 Buyer’s Deposits. No later than the business day immediately preceding the Closing, Buyer shall deliver to Escrow Holder the following:
The full amount of the Purchase Price, less the Deposit and interest accrued thereon applicable to the Purchase Price;
An executed preliminary change of ownership report in the form prescribed by the San Bernardino County Recorder (“PCOR”);
Such evidence as the Title Company may reasonably require as to the authority of the person or persons executing documents on behalf of Buyer; An executed closing statement reasonably acceptable to Buyer; and Such additional documents as shall be reasonably required to consummate the transaction contemplated by this Agreement.
Section 3.4 Concurrent Conditions. The obligations set forth in Section 3.2 and Section
3.3 above shall be concurrent conditions for Seller and Buyer respectively to close the transaction contemplated by this Agreement.
Section 3.5 Closing. The closing of the transaction contemplated hereby ( “Closing”) shall be held in escrow through Escrow Holder within five (5) business days after expiration of the Contingency Period (as defined in Section 4.1 below) (“ Closing Date ”). Notwithstanding anything contained herein to the contrary, in the event that the Closing has not occurred on or before April 26, 2022, (“Outside Closing Date”), this Agreement shall automatically terminate in all respects, in which case Seller shall be entitled to the Deposit, with accrued interest, from Escrow Holder, unless all contingencies to Closing set forth herein have been satisfied and the failure of Closing to occur is the result of Seller ’s default, in which case Buyer ’s remedies shall be as set forth in Section 6.3.
Section 3.6 Closing Procedure. When each of the items described in Section 3.2 and
Section 3.3 above has been deposited into Escrow and Title Company is prepared to issue the Title Policy, Escrow Holder shall on the Closing Date perform the following:
Record the Deed in the Office of the San Bernardino County Recorder in the order described in Section 3.7 below;
File the PCOR with the San Bernardino County Recorder thereafter; Deliver to Seller all amounts deposited by Buyer in payment of the Purchase Price, less Seller’s share of closing costs and prorations as provided hereafter; and Issue and deliver to Buyer an American Land Title Association (“ALTA”) Standard Coverage Owner’s Policy of Title Insurance with liability in the amount of the Purchase
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7 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn Price (“Title Policy”) insuring title to the Property vested in Buyer subject only to the Permitted Exceptions. Buyer may elect to obtain an ALTA Extended Coverage Owner’s Policy and/or any endorsements to the Title Policy provided that Buyer pays the additional premium for the extended coverage, the cost of any required survey, and the cost of any endorsements. The ability or willingness of the Title Company to issue such extended coverage policy and/or any endorsements shall not be a condition to Buyer’s obligation to close Escrow.
Section 3.7 Recording and Distribution of Documents . Escrow Holder shall cause documents to be recorded concurrently and in the following order: (a) the Deed; and (b) any deeds of trust or other documents to be recorded through Escrow at Buyer’s instruction. All documents delivered for recordation by Escrow Holder shall provide that they are to be returned after recordation to Escrow Holder. When originals of such recorded documents are returned to Escrow Holder, Escrow Holder shall deliver: (i) the original recorded Deed to Buyer with a copy (showing all recording information) to Seller; and (ii) any deeds of trust to the beneficiaries under such documents, with copies (showing all recording information) to Buyer and Seller.
Section 3.8 Conditions Precedent to Obligation of Buyer . The obligation of Buyer to consummate the transaction under this Agreement shall be subject to the fulfillment on or before the Closing Date of all of the following conditions, any or all of which may be waived by Buyer in its sole discretion:
On the Closing Date, the Title Company shall be prepared and committed to issue to Buyer a Title Policy with coverage in the amount of the Purchase Price, showing fee title vested in Buyer, subject only to the Permitted Exceptions, and provided that Buyer may elect to obtain any additional endorsements to the Title Policy at Buyer’s election and at its sole expense (unless such additional endorsement is being provided by Seller to cure a title or survey objection which Seller has elected to cure) ; provided, however, that the availability of any such endorsements shall not constitute a condition to Buyer ’s obligation to proceed with the Closing (unless such endorsement is being provided by Seller to cure a title or survey objection which Seller has elected to cure);
Seller shall have delivered to Escrow Holder all of the items required to be delivered to Escrow Holder pursuant to the terms of this Agreement, including, but not limited to, those provided for in Section 3.2;
All of the representations and warranties of Seller contained in this Agreement shall be true and correct in all material respects as of the Closing Date; Seller shall have performed and obs erved in all material respects all covenants and agreements of this Agreement to be performed and observed by Seller as of the Closing Date; and
No material physical change shall have occurred to the Property from the Effective Date up to the Closing Date, with the exception of reasonable wear and tear and any changes to the Property caused by Buyer.
Section 3.9 Conditions Precedent to Obligation of Seller . The obligation of Seller to consummate the transaction hereunder shall be subject to the fulfillment on or before the Closing
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Seller shall have received the Purchase Price, as adjusted and payable in the manner provided for in this Agreement;
Buyer shall have delivered to Escrow Holder all of the items required to be delivered to Escrow Holder pursuant to the terms of this Agreement, including, but not limited to, those provided for in Section 3.3;
All of the representations and warranties of Buyer contained in this Agreement shall be true and correct in all material respects as of the Closing Date; and Buyer shall have performed and observed in all material respec ts all covenants and agreements of this Agreement to be performed and observed by Buyer as of the Closing Date.
Section 3.10 Credits and Prorations.
All income and expenses of the Property shall be apportioned on the basis of a 30-day month as of 12:01 a.m. (Pacific Time) on the Closing Date as if Buyer were vested with title to the Property during the entire day upon which Closing occurs. Such prorated items include, without limitation, the following:
Taxes and assessments levied against the Property;
Payments on bond and assessments against the Property;
Any owner’s association dues and fees, common area expenses or other expenses related to the Property; and
Any other expenses or other items pertaining to the Property which are customarily prorated between a buyer and a seller in San Bernardino County, California.
Notwithstanding anything contained in Section 3.10(a), any taxes paid at or before Closing shall be prorated based upon the amounts actually paid. If taxes and assessments due and payable during the year of Closing have not been paid before Closing, Seller sha ll be charged at Closing an amount equal to that portion of such taxes and assessments which relates to the period before Closing (as well as any taxes and assessments for any year before the year of the Closing), and Buyer shall pay the taxes and assessments before their becoming delinquent subsequent to the Closing Date. Any such apportionment made with respect to a tax year for which the tax rate or assessed valuation, or both, have not yet been fixed shall be based upon the tax rate and/or assessed valuation fixed. To the extent that the actual taxes and assessments for the current year differ from the amount apportioned at Closing, the Parties shall make all necessary adjustments by appropriate payments between themselves within thirty (30) days after such amounts are determined following Closing. Buyer shall pay all supplemental taxes resulting from the change in ownership and reassessment occurring as of and after the Closing Date.
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9 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn The provisions of this Section 3.10 shall survive Closing.
Section 3.11 Transaction Taxes and Closing Costs.
Seller and Buyer shall execute such returns, questionnaires and other documents as shall be required with regard to all applicable real property transaction taxes imposed by applicable federal, state, or local law or ordinance.
Seller shall pay the following costs and expenses:
The fees of any counsel representing Seller in connection with this transaction, except as otherwise provided in this Agreement; The premium for the Title Policy and the fee for any endorsements to the Title Policy obtained by Seller or at Seller ’s direction to insure against any title objections of Buyer which Seller has agreed to cure;
One-half of t he escrow fee, if any, which may be charged by the Escrow Holder or Title Company;
All recording fees incurred in connection with the transfer of the Property;
Any documentary transfer taxes, including city and county transfer taxes, or similar taxes that become payable by reason of the transfer of the Property; and Such other closing costs, if any, not expressly provided for herein that are customarily charged to seller s of commercial real property for the county in which the Property is located.
Buyer shall pay the following costs and expenses:
The fees of any counsel representing Buyer in connection with this transaction, except as otherwise provided in this Agreement; The fee for any extended coverage policy and/or endorsements to the Title Policy (except for any endorsements obtained by Seller to cure or remove a title objection);
One-half of t he escrow fee, if any, which may be charged by the Escrow Holder or Title Company; and
Such other closing costs, if any, not expressly provided for herein, that are cust omarily charged to buyers of commercial real property for the county in which the Property is located.
All costs and expenses incident to this transaction and the Closing that are not specifically described above, shall be paid by the Party incurring the same.
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ARTICLE IV
DUE DILIGENCE
Section 4.1 Due Diligence.
Buyer shall have until 5:00 p.m. on the thirtieth (30th) day after the Effective Date (“Contingency Period Expiration Date”) to conduct its due diligence regarding the Property in accordance with this Article IV (“Contingency Period”).
Buyer may, in Buyer’s sole discretion, approve the condition of the Property during the Contingency Period by providing written notice to Seller (“ Approval Notice”) on or before the Contingency Period Expiration Date. If Buyer does not provide a timely Approval Notice to Seller, this Agreement and Escrow shall terminate, neither Party shall have any further rights or obligations under this Agreement (except for any indemnity obligations of Seller and Buyer pursuant to the other provisions of this Agreement), the Deposit and all interest thereon less escrow cancellation fees shall be returned to Buyer, and each Party shall bear its own costs incurred concerning this Agreement. If Buyer does provide a timely Approval Notice, the Deposit shall be released to Seller and become non-refundable, but applicable to the Purchase Price.
Section 4.2 Inspection of Seller’s Documents. Within five (5) days after the Effective Date, Seller shall make available to Buyer c opies of all of the following documents in the possession or control of Seller or any affiliate of Seller in connection with the Property , if any :
environmental reports as to the environmental condition of the Property ; environmental permits; applications or correspondence between Seller and any governmental entity in connection with any Hazardous Material (as defined in
Section 5.4(b)) located in, on, or under the Property; soils reports; seismic reports; surveys; maps; tests; plans; licenses; permits (including building permits); governmental regulation documents ; zoning entitlements ; land use documents ; availability of utilities studies ; CC&Rs, easements, contracts, leases, plan studies, reports, building plans, maintenance reports, and property inspection reports, if any, that bind the Property or that will affect the use of the Property after the Close of Escrow; and other studies, reports, documents, and information pertaining to the Property, but excluding any privileged or confidential documents of Seller (collectively, “Seller’s Documents”). Seller’s Documents do not include any information which may be in the possession of a third party consultant, engineer , or other person that is not also in Seller’s actual physical possession; provided, however, if Buyer determines that a relevant document may exist but is in the possession of a third party, Seller shall cooperate with Buyer in good faith to obtain a copy of such document. Seller makes no representation or warranty regarding the accuracy or completeness of any information contained in Seller ’s Documents, all such information being made available on an “ AS-IS” basis. Seller makes no representation or warranty regarding its knowledge of third party consultants and Seller shall have no liability for failure to disclose any third party which may have knowledge regarding the Property, it being understood that Buyer shall conduct its own independent due diligence of the Property during the Contingency Period to determine the suitability of the Property for Buyer’s intended purposes and whether the Seller’s Documents are acceptable to Buyer, in Buyer ’s sole and absolute discretion.
Provided Seller has provided Seller’s Documents to Buyer as contemplated above, Buyer shall be deemed to have acquired the Property subject to all information and matters referenced in Seller’s
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11 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn Documents whether or not Buyer has elected to review Seller’s Documents. If this Agreement is terminated for any reason, Buyer shall, within five (5) business days following such termination, deliver to Seller all information, surveys, studies, documents, reports, and data obtained by Buyer relating to the Property, return to Seller all of Seller ’s Documents, and destroy all electronic or other copies of the Seller’s Documents which cannot be returned to Seller. Buyer shall thereafter continue to keep and hold all information concerning the Property in strict confidence. Buyer ’s obligation to keep all such information confidential shall survive the termination of this Agreement.
Section 4.3 Physical Inspection. During the Contingency Period, Buyer may enter upon the Property and conduct, at its sole expense, such inspections, surveys, tests, studies and investigations as Buyer deems necessary to determine if the physical and environmental condition of any portion of the Property, including the improvements on the Property , are acceptable to Buyer, including, without limitation, a Phase I and/or Phase II Environmental Site Survey (“Investigations”). The Investigations may not include intrusive physical testing (such as soil borings, water samplings, and the like), except as provided below.
Before performing any Investigation, Buyer shall: (a) provide Seller with no less than two (2) business days ’ prior written notice of its intended entry onto the Property ; (b) if Buyer desires to conduct invasive or destructive testing, provide a written description of same to Seller and receive written approval from Seller before conducting the invasive or destructive testing, which approval may be granted or withheld in Seller’s sole discretion; and (c) with respect to any entry onto the Property, including for invasive or destructive test ing, provide to Seller proof of self-insurance or proof of insurance evidencing that Buyer or its contractor has procured and paid premiums for a comprehensive general liability insurance policy written on a per occurrence and not claims made basis with minimum limits of not less than One Million Dollars and Zero Cents ($1,000,000.00) per occurrence with Two Million Dollars and Zero Cents ($2,000,000.00) aggregate, naming Seller as an additional insured, including endorsements evidencing that Seller is actually insured under the policy.
In performing any Investigation, Buyer shall: (i) not disrupt the ongoing activities at the Property; (ii) conduct its activities in a diligent, reasonably quiet, expediti ous, and safe manner and not allow any dangerous or hazardous conditions to occur on the Property; and (iii) comply with all applicable laws . Following any entry upon the Property to perform any Investigation, Buyer shall restore the Property to the condition in which it existed before Buyer’s entry.
Buyer shall keep the Property free and clear of any mechanic’s liens or materialmen’s liens arising out of Buyer’s entry onto the Property. Seller, at any time and from time to time, may, but will not be obli gated to, post on the Property and record in the Office of the County Recorder, a notice or notices of non-responsibility regarding the Investigations.
Prior to the Closing, (A) Buyer shall confer with Seller prior to any meetings or discussions with any governmental agencies in order to establish an appropriate agenda and coordinate any presentations or questions, and ( B) Buyer shall use reasonable efforts to schedule such meetings and discussions after consulting with Seller to ensure Seller’s availability to attend such meetings or discussions. Under no circumstances shall Buyer propose or file any application requesting changes to or raise any issues with any of the existing development approvals without Seller ’s
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12 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn prior written consent, such consent to be granted or withheld in Seller ’s sole discretion. Buyer shall not submit any written recommendations or reports regarding its Investigations or the Property to any governmental agencies or provide them to third parties, other than Buyer ’s attorneys, consultants, lenders, and prospective lenders who have a need to know directly in connection with the transaction contemplated under this Agreement , without the prior written consent of Seller unless required by applicable law or court or administrative order . If Buyer submits such unauthorized reports or studies, Buyer shall indemnify, defend and hold Seller and the Property harmless from any costs, claims, damages, liabilities or expenses (including reasonable attorneys’ fees) associated with or arising from any submitted written recommendations or reports not approved by Seller in writing, including any remedial action required of Seller as a result thereof. A copy of all reports prepared by or for the benefit of Buyer in connection with its Investigations (“Buyer Reports”) shall be made available to Seller, at no additional cost to Seller, upon request. Buyer shall not be deemed to have made any warranty as to the accuracy, completeness, or usefulness of any Buyer Report.
Buyer hereby agrees to indemnif y, defend and hold the Property, Seller, and Seller’s directors, officers, shareholders, employees, affiliates, members, agents, contractors, consultants, representatives, predecessors, heirs, successors, and assigns (collectively, “Seller Indemnitees”) free and harmless from and against any and all losses, damages, liens, liabilities, claims, causes of action, or liabilities (including, without limitation, reasonable attorneys’ fees, expert witness fees and all other costs of litigation) (collectively, “Damages”) arising out of or relating to Buyer’s (or its employees’, consultants’, contractors’, agents’ or representatives’) entry upon, or actions with respect to, the Property, including, without limitation, (1) any loss, damage or liability arising from any liens placed upon the Property because of acts or omission to act by Buyer (or its employees, consultants, contractors, agents or representatives) in connection with Buyer ’s Investigations; (2) any personal injury or death or property damage caused by Buyer (or its em ployees, consultants, contractors, agents or representatives) while conducting its Investigations; and (3) any liability incurred by Seller based upon Buyer ’s breach of this Section 4.3 , including liabilities arising from the submission of unauthorized recommendations or reports by Buyer. The foregoing indemnity obligation shall not apply to Buyer ’s mere discovery of any preexisting condition on the Property or the results of such discovery, unless caused by Buyer ’s negligence or willful misconduct. This provision shall survive termination of this Agreement or the Closing.
ARTICLE V
REPRESENTATIONS AND WARRANTIES
Section 5.1 Representations and Warranties of Seller . Seller hereby makes the following representations and warranties to Buyer as of the Effective Date, which representations and warranties shall continue to be true and correct as of the Closing, as a condition to closing ; provided, however, that to the extent any representation or warranty made by Seller is actually known by Buyer or any of Buyer’s employees or agents before the Contingency Period Expiration Date to be materially untrue or inaccurate and Buy er nevertheless fails to terminate this Agreement, Buyer shall have no right under this Agreement, by reason of that particular untruth or inaccuracy, to thereafter terminate this Agreement; and provided, further, that to the extent any representation or warranty made by Seller is actually known by Buyer or any of Buyer’s employees or agents, before the Closing, to be materially untrue or inaccurate and Buyer nevertheless
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13 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn proceeds with that Closing, Buyer shall be deemed to have waived such representation or warranty and shall have no further rights against Seller with respect thereto:
Seller is a California municipal water district and is organized and validly existing and in good standing under the laws of the State of California. Seller has the full right and authority to enter into this Agreement and to consummate or cause to be consummated the transaction contemplated by this Agreement. The person s signing this Agreement on behalf of Seller are authorized to do so by Seller;
By the Closing Date, t his Agreement and all documents to be executed by Seller hereunder will have been, duly authorized, executed, and delivered by Seller, and will constitute the valid and binding obligations of Seller enforceable against it in accordance with their respective terms; and
The execution and delivery of this Agreement, and all other documents to be executed by Seller hereunder, will not to Seller’s knowledge result in: (i) a breach or violation of (A) any governmental requirement applicable to Seller or the Proper ty now in effect; (B) the organizational documents of Seller; (C) any judgment, order or decree of any governmental authority binding upon Seller; or (D) any agreement or instrument to which Seller is a party or by which it is bound; (ii) the acceleration of any obligation of Seller; or (iii) the creation of any lien, encumbrance, or other matter affecting title (other than the Permitted Exceptions) to the Property.
Section 5.2 Disclaimer of Further Representations and Warranties . Buyer acknowledges that as of the Closing Date, it will have had an adequate opportunity to inspect the Property, and all aspects thereof, and to investigate the Property ’s physical characteristics and conditions and all other matters related or relevant to the Property. Upon the Closing, and except as otherwise expressly provided in this Agreement, Buyer shall be deemed to have waived any and all objections to the physical characteristics and conditions of the Property and all other matters related or relevant to the Property, including, without limitation:
The habitability, merchantability, marketability, profitability, or fitness for a particular purpose of the Property, including , without limitation, Buyer’s intended use of the Property;
The nature, quality , or condition of the Property, including, without limitation, with respect to water conditions, soil, geological, or geotechnical conditions (including, without limitation, soil expansiveness, corrosivity, or stability or seismic, hydrological, geological, and topographical conditions and configurations, including, without limitation, any opinions or conclusions of any soils engineer(s) retained to perform geotechnical and/or soils studies or to oversee any soils engineering aspects of developing the Property); The fact that all or a portion of the Property may be located on or near an earthquake fault line or in or near an earthquake or seismic hazard zone; Climate, air, water rights, utilities, present and future zoning, the state of current entitlements or the ability to obtain future entitlements, soil, subsoil, grading, compaction, the square footage of the Property or the size, configuration, and location of the Property, any applicable parcel maps or any conditions or obligations imposed in connection therewith, the
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14 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn purpose to which the Property is suited, drainage, the existence or effect of any governmentally regulated or protected wetlands, endangered species, flora, fauna , or other natural habitat and the effect of same upon the development of the Property (including the need to obtain any governmental permits or approvals for development of the Property based upon the existence of such wetlands, habitat or other natural conditions);
Any opinions or conclusions of any civil engineer retained in connection with the Property;
Any opinions or conclusions of any environmental engineer or consultant retained to perform environmental or hazardous materials studies or to oversee any environmental related aspects of developing the Property;
Zoning or land use requirements, or the availability of any land use entitlements, including, without limitation, sewer, water, or building permits for the Property; The compliance of the Property or its operation with any codes, laws, rules, ordinances, or regulations of any applicable governmental authority or body, including , without limitation, compliance with any environmental protection, pollution, or land use laws, rules, regulations, orders, codes , or requirements, including, but not limited to, the Americans wi th Disabilities Act of 1990, California Health & Safety Codes, the Federal Water Pollution Control Act, the Federal Resource Conservation and Recovery Act, the U.S. Environmental Protection Agency regulations at 40 CFR, Part 261, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ( “CERCLA”), as amended by the Superfund Amendments and Reauthorization Act of 1986 (42 U.S.C.A. § 9601 et seq.), as the same may be further amended or replaced by any similar law, rule, or regulation, the Resource Conservation and Recovery Act of 1976, the Clean Water Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act, the Toxic Substance Control Act, and regulations promulgated under any of the foregoing;
The existence of any historical, paleontological, or archeological deposits on the Property;
Any assurance, opinion, or conclusion of the availability of any zoning, development, construction, or other land use variances, including, without limitation, any variance from side, rear, or front of lot setback requirements; and Any other matter relating to the Property or to the development or operation of the Property, including, but not limited to, legal requirements, valuations, feasibility, cost, governmental permissions or enti tlements, claims and obligations, license s and other use rights and claims, any matters that would be disclosed or apparent by a survey of the Property, and the future use and operation of the Property. Seller and its agents, contractors, consultants, attorneys, and representatives shall not be liable for any relief, including damages, rescission, reformation, allowance, or adjustments based on the failure of the Property, including, but not limited to, amount of acreage, square footage, and zoning condition, to conform to any s pecific standard or expectation or any third party documents or information.
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15 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn Buyer further acknowledges that Seller shall have no obligation to undertake the construction or completion of any on-site or off-site improvements of any kind or nature.
Buyer further acknowledges and agrees that, except for Seller ’s express representations and warranties set forth in this Agreement, the Property is being purchased, conveyed, and accepted by Buyer in its present condition, “AS-IS,” “WHERE-IS”, and “WITH ALL FAULTS,” and that Buyer accepts the Property subject to all patent and/or latent physical conditions of the Property, whether or not known or discovered. Buyer acknowledges and agrees that Seller shall have no obligations whatsoever to undertake or construct any improvements or facilities to, upon, or about the Property , or any portion thereof , or on any adjacent or other property , or to process any entitlements in any way affecting the Property, or any other property, after the Closing. Buyer has investigated and has knowledge of all operative or imposed governmental laws and regulations (including, but not limited to, zoning and environmental laws and regulations, including specifically, but without limitation , the regulations of the Environmental Protection Agency, the U.S. Army Corps of Engineers, the U.S. Fish & Wildlife Service, the California Department of Fish and Wildlife, and the California Regional Water Quality Control Board, and all applicable land use laws and regulations) to which the Property may be subject, and is acquiring the Property on the basis of its review and determination of the application and effect of such laws and regulations. Buyer acknowledges that, after the Closing, it is Buyer’s responsibility as the owner of the Property to comply with any such laws and regulations, including any environmental and/or biological mitigation requirements. Buyer has neither received nor relied upon any representations concerning such laws and regulations made by Seller, Seller’ s employees, Seller’s agents, or any other person acting on behalf of Seller. Any agreements, warranties , or representations not expressly contained in this Agreement shall in no way bind Seller.
Without limiting the generality of the foregoing, Buyer understands and agrees that it takes the Property without any representations or warranties by Seller, or by any member, official, employee, or agent of Seller, regarding the existence, use, generation, manufacture, storage, transportation, release, or disp osal of Hazardous Material and/or oil wells and/or underground storage tanks and/or pipelines on, under, or about the Property, or that the Property is or may be in violation of any federal, state, or local law, ordinance or regulation relating to Hazardous Material and/or oil wells and/or underground storage tanks and/or pipelines on, under or about the Property including, without limitation, soil and ground water conditions. Buyer acknowledges and understands that it must perform its own “due diligence” with respect to all environmental matters relating to the Property, inclusive of any environmental audits or assessments, and that Buyer is not relying on any environmental audits or assessments performed by or on behalf of Seller.
Buyer further understand s and agrees that in the event Buyer incurs any loss or liability concerning Hazardous Material and/or oil wells and/or underground storage tanks and/or pipelines and/or other conditions relative to the Property attributable to conduct or conditions occurr ing or existing before Buyer’s acquisition of the Property, then Buyer may look to prior owners or lessees of the Property or adjacent property, but under no circumstances shall Buyer look to Seller for any liability, contribution, or indemnification regarding Hazardous Material and/or oil wells and/or underground storage tanks and/or pipelines and/or other conditions relative to the Property. Buyer further understands and agrees that in the event it acquires the Property or any portion thereof pursuant to this Agreement, such acquisition will be done without any representations or warranties by Seller regarding responsibility for loss or liability incurred with respect to the use,
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16 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn generation, manufacture, storage, transportation, release, or disposal of any Hazardous Material and/or oil wells and/or underground storage tanks and/or pipelines and/or other conditions relative to the Property. Notwithstanding anything to the contrary in this Agreement, Seller understands and agrees that: (i) a prior owner of a property containing Hazardous Material may be sued as a liable party under Environmental Law (as defined in Section 5.4(a)) for potential remediation costs as required by an applicable governmental entity, and (ii) in the event that any governmental entity or a third party asserts a claim against Seller, as the prior owner of the Property, as a result of the presence of Hazardous Material under the Property, which was present on the Property before the Closing Date, but only during such time of Seller’s ownership of the Property (collectively “Seller Third Party Environmental Claims”), no Seller Third Party Environmental Claims shall create or give rise in any manner to any obligation of Buyer to indemnify, defend, and hold harmless Seller from any Seller Third Party Environmental Claims.
Section 5.3 Release. At such time as Buyer takes title to the Property and at all times thereafter, Buyer releases Seller from all liability relating to the Property, including , without limitation, any claims, losses, or damages that Buyer may have against Seller with respect to the Property. Buyer expressly waives any and all rights which it may have under California Civil Code section 1542, which provides:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER
FAVOR AT THE TIME OF EXECUTING THE RELEASE
AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE
MATERIALLY AFFECTE D HIS OR HER SETTLEMENT
WITH THE DEBTOR OR RELEASED PARTY.”
BUYER AND SELLER ACKNOWLEDGE AND AGREE T HAT THE FOREGOING PROVISIONS OF SECTION 5.2 AND SECTION 5.3 HAVE BEEN FREELY BARGAINED
FOR BY THE PARTIES A ND CONSTITUTE A MATERIAL CONSIDERATION T O
SELLER FOR THE SALE OF THE PROPERTY AND BUT FOR THIS PROVISI ON SELLER WOULD NOT SELL THE PROPERTY TO BUYER.
BUYER’S INITIALS ________ SELLER’S INITIALS _______
The release set forth immediately above does not extend to the obligations of Seller under this Agreement or the breach thereof by Seller.
Section 5.4 Definitions. For purposes of this Article V , the following terms shall have
the following meanings:
“Environmental Law” means any federal, state, or local statute, ordinance, rule, regulation, order, consent decree, judgment , or common-law doctrine, and provisions and conditions of permits, licenses , and other operating authorizations relating to: ( i) pollution or protection of the environment, including natural resources, ( ii) exposure of persons, including employees, to Hazardous Materials or other products, raw materials, chemicals , or other substances, (iii) protection of the public health or welfare from the effects of by-products, wastes,
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17 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn emissions, discharges, or releases of chemical substances from industrial or commercial activities, or (iv) regulation of the manufacture, use, or introduction into commerce of chemical substances, including, without limitation, their manufacture, formulation, labeling, distribution, transportation, handling, storage, and disposal.
“Hazardous Material” is defined to include any chemical or hazardous or toxic substance, material , or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government. The term “Hazardous Material” includes, without limitation, any material or substance which is: (i) petroleum or oil or gas or any direct or derivative product or byproduct thereof; ( ii) defined as a “hazardous waste,” “extremely hazardous waste,” or “ restricted hazardous waste ” under Sections 25115, 25117, or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law); ( iii) defined as a “ hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter - Presley-Tanner Hazardous Substance Account Act); ( iv) defined as a “ hazardous material, ” “hazardous substance,” or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory); (v) defined as a “ hazardous substance” under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); ( vi) “used oil ” as defined under Section 25250.1 of the California Health and Safety Code; ( vii) asbestos; ( viii) listed under Chapter 11 of Division 4.5 of Title 22 of the California Code o f Regulations or defined as hazardous or extremely hazardous pursuant to Chapter 10 of Division
4.5 of Title 22 of the California Code of Regulations; ( ix) defined as waste or a hazardous substance pursuant to the Porter -Cologne Act, Section 13050 of the C alifornia Water Code; ( x) designated as a “toxic pollutant” pursuant to the Federal Water Pollution Control Act, 33 U.S.C. § 1317; (xi) defined as a “hazardous waste” pursuant to the Federal Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq .; (xii) defined as a “hazardous substance” pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601 et seq.; (xiii) defined as “ Hazardous Material” pursuant to the Hazardous Materials Transportation Act, 49 U.S.C. § 5101 et seq.; (xiv) defined as such or regulated by any “Superfund” or “Superlien” law, or any other federal, state or local law, statute, ordinance, code, rule, regulation, order , or decree regulating, relating to, or imposing liability or standards of conduct concerning Hazardous Materials and/or oil wells and/or underground storage tanks and/or pipelines, as now, or at any time hereafter, in effect; and/or ( xv) substances known by the State of California to cause cancer and/or reproductive toxicity.
Section 5.5 Representations and Warranties of Buyer . Buyer hereby makes the following representations and warranties to Seller as of the Effective Date, which representations and warranties shall continue to be true and correct as of the Closing, as a condition to closing:
Buyer is a California municipality and is organized and validly existing and in good standing under the laws of the State of California. Buyer has the full right and authority to enter into this Agreemen t and to consummate or cause to be consumm ated the transaction contemplated by this Agreement. The person signing this Agreement on behalf of Buyer is authorized to do so;
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18 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn The execution and delivery of this Agreement does not, and the performance by Buyer of its obligations under this Agreement will not, to Buyer ’s knowledge, conflict with any provision of any law or regulation to which Buyer is subject or conflict with or result in a material breach of or constitute a material default under any of the terms, conditions, or provisions of any enforceable agreement or instrument to which Buyer is a party, or result in the creation or imposition of any lien on any of its assets or property which could materially and adversely affect the ability of Buyer to discharge its obligations hereunder and compl ete the transactions contemplated by this Agreement; and
Buyer is a sophisticated investor and Buyer’s offer and decision to purchase the Property is and will be based upon its own independent expert evaluation of the Property and any other matters deemed relevant by Buyer and its agents and advisors. Buyer has not relied upon any oral or written information from Seller, or any of Seller ’s employees, affiliates, brokers, agents, legal counsel ors, or other representatives. Buyer further acknowledges that e xcept for express representations and warranties contained in this Agreement , no employee, agent, broker, legal counsel, or other representative of Seller has been authorized to make, and that Buyer has not relied upon, any statements or representations.
Section 5.6 Buyer’s Investigations. By entering into this Agreement, and except for Seller’s express representations and warranties set forth in this Agreement , Buyer has agreed to perform a thorough and its own independent investigation and evaluation of the Propert y and all other aspects of the transactions contemplated by this Agreement, and Buyer agrees that Buyer shall be charged with knowledge of all information which is acquired by Buyer as a result of such an investigation and evaluation or which would or should have been acquired by Buyer as a result of such investigation and evaluation. Before the Contingency Period Expiration Date, and except for Seller’s express representations and warranties set forth in this Agreement, Buyer will have determined solely in reliance upon Buyer ’s independent investigation and evaluation of the Property, including all soil and geological conditions of the Property , that the physical condition of the Property is either acceptable or is not acceptable to Buyer and whether all present and future entitlements, zoning regulations , and other governmental requirements, site and physical conditions, title matters, and all other matters affecting the use, occupancy, value, and condition of the Property are acceptable or not acceptable to Buyer. Except for Seller ’s express representations and warranties set forth in this Agreement, B uyer specifically acknowledges that Buyer is not relying on Seller to indicate the relative importance or materiality of any of the instruments, records, documents, or other information made available to Buyer for review, that Buyer shall make its own determination as to the level of scrutiny it applies to such instruments, records, and documents made available to Buyer, and that Buyer will act solely in rel iance upon its own investigation and evaluation of such matters.
Section 5.7 Buyer’s Indemnity. In addition to and without limiting Buyer’s obligations set forth above, Buyer shall indemnify, defend, and hold harmless the Seller Indemnitees (including Seller) from and against any Damages arising out of or relating to events concerning the Property occurring on and after the Closing Date, including, without limitation, any liabilities relating to Hazardous Material, the presence of which first occurred on the Property on or after the Closing Date, and liabilities arising from or relating to any construction, marketing, sale, or use of any commercial or retail use of the Property, including , without limitation, the transaction contemplated herein or other improvements constructed on the Property (collectively,
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19 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn “Liabilities”), including, without limitation: bodily injury and/or property damage claims from third parties for construction defects; errors and omissions by Buyer and/or its contractors or subcontractors, and/or its professional soils, civil, geological, surveying, and engineering firms; soils-related issues , including, without limitation, land subsidence, slope failures, sinking, slippage, drainage, mudslide, landslide, over -watering, floods, changes to underground water resources or aquifers, or damages as a result of earthquakes or other acts of God, and/or any environmental health issues; provided, however, that the Liabilities indemnified and Buyer ’s indemnification hereunder shall not apply to any liability, cause of action, loss, cost, expense, claim, or damages arising solely from the negligence or willful misconduct of Seller , its agents, employees or contractors. Further, as set forth in Section 5.2, no Seller Third Party Environmental Claims shall create or give rise in any manner to any obligation of Buyer to indemnify, defend, and hold harmless Seller from any Seller Third Party Environmental Claims . The provisions of this Section 5.7 shall survive the Closing.
Section 5.8 Procedure for Claims . In the case of any claim asserted by a third party against a party entitled to indemnification under this Agreement (“ Indemnified Party”), notice shall be given by the Indemnified Party to the Party required to provide indemnification (“Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and the Indemnified Party shall permit the Indemnifying Party (at the expense of such Indemnifying Party ) to assume the defense of any claim or any litigation resulting therefrom; provided, that (i) the Indemnifying Party acknowledges its obligation to indemnify the Indemnified Party in writing, (ii) the counsel for the Indemnifying Party who shall conduct the defense of such claim or litigation shall be reasonably satisfactory to the Indemnified Party, and (iii) the omission by any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its indemnification obligation under this Agreement, except to the extent that such omission results in a failure of actual notice to the Indemnifying Party and such Indemnifying Party is materially prejudiced as a result of such failure to give notice. Except with the prior written consent of the Indemnified Party, no Indemnif ying Party, in the defense of any such claim or litigation, shall consent to entry of any judgment or enter into any settlement that provides for injunctive or other nonmonetary relief affecting the Indemnified Party or that does not include as an uncondit ional term thereof the giving by each claimant or plaintiff to such Indemnified Party of a release from all liability with respect to such claim or litigation. In the event that the Indemnified Party shall in good faith determine that the conduct of the defense of any claim subject to indemnification hereunder or any proposed settlement of any such claim by the Indemnifying Party might be expected to affect adversely the Indemnified Party’s tax liability or that the Indemnified Party may have available to it one or more defenses or counterclaims that are inconsistent with one or more of those that may be available to the Indemnifying Party in respect of such claim or any litigation relating thereto, the Indemnified Party shall have the right at all times to take over and assume control over the defense, settlement, negotiations, or litigation relating to any such claim at the sole cost of the Indemnifying Party. In the event that the Indemnifying Party does not accept the defense of any matter as above provided, the Indemnified Party shall have the full right to defend, at the Indemnifying Party’s cost, against any such claim or demand and shall be entitled to settle or agree to pay in full such claim or demand. The Indemnifying Party and the Indemnified Party shall cooperate in the defense of any claim or litigation subject to this
Section 5.8. The provisions of this Section 5.8 shall survive the Closing.
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20 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn
ARTICLE VI
DEFAULT
Section 6.1 Default. A Party shall be deemed to be in default under this Agreement if it fails to meet, comply with, or perform any material covenant, agreement, or obligation on its part required under this Agreement.
Section 6.2 Default by Buyer. If the sale of the Property as contemplated hereunder is not consummated due to Buyer’s default hereunder, Seller shall be entitled, as its sole remedy, to terminate this Agreement and receive liquidated damages pursuant to Section 1.5 hereof plus any attorneys’ fees to which it is entitled under Section 9.16 (subject to any indemnification obligations which expressly survive termination of this Agreement).
Section 6.3 Default by Seller. If the sale of the Property as contemplated hereunder is not consummated due to Seller ’s default hereunder, Buyer ’s sole remedy shall be to either (a) terminate this Agreement and receive a refund of the Deposit and all interest accrued thereo n, or (b) seek specific performance of Seller’s obligations under this Agreement plus any attorneys’ fees to which it is entitled under Section 9.16 (subject to any indemnification obligations which expressly survive termination of this Agreement).
ARTICLE VII
CONDEMNATION
Section 7.1 Definition of Terms. The following terms used in this Article VII shall have the meanings ascribed to them below:
“Condemnation” or “Condemned” shall mean the exercise of, or intent to exercise, the power of eminent domain expressed in writing, or the filing of any action or proceeding for such purpose by any person, entity, body, agency or authority having the right or power of eminent domain (the “ Condemning Authority” herein), and shall include a voluntary sale by Seller to any such Condemning Authority, either under the threat of condemnation or while condemnation proceedings are pending, and the Condemnation shall be deemed to occur upon the actual physical taking of possession pursuant to the exercise of said power of eminent domain. “Minor Taking” shall mean that only a portion of the Property is Condemned and that such taking does not materially adversely affect Buyer’s plan for the Property, all as determined by Buyer in its sole and absolute discretion. In the event of a Minor Taking (as determined in Buyer ’s sole and absolute discretion), this Agreement shall continue in full force and effect as to the remainder of the Property, the Condemnation proceeds shall be paid to Seller and the Purchase Price shall be reduced by an amount equal to such proceeds.
Section 7.2 Taking. If there is a taking before the Closing and only a portion of the Property is Condemned, but Buyer determines in its sole and absolute discretion that such taking is not a Minor Taking, Buyer shall have the right to terminate this Agreement by written notice to Seller for a period of fifteen (15) business days following receipt of written notice from Seller of such taking and upon the date in which Buyer provides such written notice of termination, this Agreement and Escrow shall terminate and neither Party shall have any further rights or obligations hereunder (except for any indemnity obligations of Seller and Buyer pursuant to the
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21 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn other provisions of this Agreement), the Deposit and all interest thereon less escrow cancellation fees shall be returned to Buyer, and each Party shall bear its own costs incurred hereunder.
Section 7.3 Distribution of Award. If the Property or any portion thereof is condemned (other than through a Minor Taking) before the Closing and Buyer does not terminate this Agreement, the award from the Condemning Authority up to the amount of the Purchase Price (adjusted for prorations and closing costs as set forth herein) shall be paid to Seller, the Purchase Price shall be reduced by the amount so paid to Seller and Buyer shall acquire the remaining portions of the Property at the Closing as set forth herein. If all of the Property is taken throug h Condemnation before the Closing, this Agreement shall terminate, the Deposit and accrued interest less escrow cancellation fees shall be immediately returned to Buyer and neither Party shall have any further obligation hereunder (except for only indemnity obligations of Seller and Buyer pursuant to the other provisions of this Agreement).
ARTICLE VIII
BROKERAGE COMMISSIONS
Section 8.1 Brokers. Unless otherwise stated herein, Buyer and Seller each represents to the other that it has not employed, dealt with or incurred any obligation to any broker, agent or finder in connection with the Property, and that it has not incurred any obligation to pay any other real estate brokerage or other commission or fee in connection with the conveyance of the Property to Buyer. Each Party agrees that if any person or entity makes a claim for brokerage commissions or finder’s fees related to the sale of the Property by Seller to Buyer, and such claim is made by, through or on account of any acts or alleged acts of said Party or its representatives, that Party will protect, indemnify, defend, and hold harmless the other Party from and against any and all Damages in connection therewith. The provisions of this Section 8.1 shall survive Closing or any
termination of this Agreement.
ARTICLE IX
MISCELLANEOUS
Section 9.1 Incorporation of Recitals and Exhibits. The Recitals set forth above and all exhibits attached to this Agreement are incorporated herein by reference.
Section 9.2 Successors and Assigns. The terms and provisions of this Agreement are to apply to and bind the heirs, executors, administrators, successors, and assigns of the Parties. Buyer may assign its rights under this Agreement without the written consent of Seller.
Section 9.3 Notices. Any notice pursuant to this Agreement shall be given in writing by: (a) personal delivery; (b) reputable overnight delivery service with proof of delivery; (c) United States Mail, postage prepaid, registered or certified mail, return receipt requested; or (d) electronic mail transmission, sent to the intended addressee at the address set forth below, or to such other address or to the attention of such other person as a Party may designate by written notice sent in accordance with this Section. Notices sent in accordance with this Section shall be deemed to have been given upon receipt or refusal to accept delivery, or, in the case of electronic mail transmission, as of the date of the electronic mail transmission provided that an original of such transmission is
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22 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn also sent to the intended addressee by means described in clauses (a), (b) or (c) above. Unless changed, the addresses for notices given pursuant to this Agreement are as follows:
If to Seller: San Bernardino Valley Municipal Water District Attn: Heather Dyer
380 East Vanderbilt Way
San Bernardino, California 92408
Telephone No.: (909) 387-9200
E-Mail: [email protected]
with a copy to: Varner & Brandt LLP
Attn: Scott R. Heil
3750 University Avenue, 6th Floor
Riverside, California 92501
Telephone No.: (951) 274-7777
E-mail: [email protected]
If to Buyer: City of Redlands
Attn: City Clerk
35 Cajon Street, Suite 4
Redlands, California 92373
Telephone No.: (909) 798-7531
E-mail: [email protected]
If to Escrow Holder: First American Title Insurance Company Attn: Kelly Simoneau, Senior Commercial Escrow Officer
3281 East Guasti Road, Suite 440
Ontario, California 91761
Telephone No.: (909) 510-6200
E-Mail: [email protected]
Section 9.4 Entire Agreement. This Agreement, including the exhibits and schedules hereto, contains the entire agreement between the P arties pertaining to the subject matter hereof and fully supersedes all prior written or oral agreements and understandings between the Parties pertaining to such subject matter, other than any confidentiality agreement executed in connection with the Property.
Section 9.5 Modifications. This Agreement cannot be changed orally, and no executory agreement shall be effective to waive, change, modify , or discharge it in whole or in part unless such executory agreement is in writing and is signed by the Parties against whom enforcement of any waiver, change, modification, or discharge is sought.
Section 9.6 Further Assurances. Each Party agrees that it will execute and deliver such other documents and take such other action, whether before or after the Closing, as may be reasonably reque sted by the other Party to consummate the transaction contemplated by this Agreement. The provisions of this Section 9.6 shall survive the Closing.
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23 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn Section 9.7 Counterparts. T his Agreement may be executed in counterparts, all such executed counterparts shall constitute the same agreement, and the signature of any Party to any counterpart shall be deemed a signature to, and may be appended to, any other counterpart.
Section 9.8 Electronic Signatures. In order to expedite the transaction contemplated by this Agreement, signatures may be delivered by electronic means. Seller and Buyer hereby waive any defenses to the enforcement of the terms of this Agreement based on the form of signature.
Documents which are to be recorded with the San Bernardino County Recorder, however, must bear original signatures.
Section 9.9 Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect; provided that the invalidity or unenforceability of such provision does not materially adversely affect the benefits accruing to any Party.
Section 9.10 Applicable Law. This Agreement shal l be governed by and construed in accordance with the laws of the State of California, excluding any choice of laws provisions. The exclusive venue for any legal action arising out of this Agreement shall be in San Bernardino County, California. Buyer and Seller agree that the provisions of this Section 9.10 shall survive the Closing or any termination of this Agreement.
Section 9.11 No Third Party Beneficiary . The provisions of this Agreement and of the documents to be executed and delivered at Closing are and will be for the benefit of Seller and Buyer only and are not for the benefit of any third party; and, accordingly, no third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing.
Section 9.12 Captions. The section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any section or any subsection of this Agreement.
Section 9.13 Construction. The Parties acknowledge that the P arties and their counsel have reviewed and revised this Agreement and that the normal rule of construction to take effect that any ambi guities are to be resolved against the drafting Party shall not be employed in the interpretation of this Agreement or any exhibits.
Section 9.14 Recordation. This Agreement may not be recorded by any Party without the prior written consent of the other Party. The provisions of this Section 9.14 shall survive the Closing or any termination of this Agreement.
Section 9.15 Date of Performance. If the date on which any performance required hereunder is other than a business day, then such performance shall be required as of the next following business day.
Section 9.16 Attorneys’ Fees. If either Party fails to perform any of its obligations under this Agreement or if any dispute arises between the Parties concerning the meaning or interpretation of any provision of this Agreement, then the defaulting Party or the Party not prevailing in such dispute, as the case may be, shall pay any and all costs and expenses incurred
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24 L:\ca\djm\Agreements\SBVMWD Purchase and Sale Agreement-Sport Park.docx.jn by the other Party on account of such default and/or in enforcing or establishing its rights hereunder, including, without limitation, court costs and reasonable attorneys’ fees, including fees for a Party’s use of in -house counsel, and disbursements. Any such attorneys ’ fees and other expenses incurred by either Party in enforcing a judgment in its favor under this Agreement shall be recoverable separately from and in addition to any other amount included in such judgment, and such attorneys ’ fees obligation is intended to be severable from the other provisions of this Agreement and to survive and not be merged into any such judgment.
Section 9.17 Time of Essence. Time is of the essence regarding each and every term, condition, obligation, and provision of this Agreement.
[Signature Page Follows]
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[Signature Page for Purchase and Sale Agreement]
25 IN WITNESS WHEREOF, the P arties have duly executed this Agreement as of the Effective Date.
BUYER: SELLER:
CITY OF REDLANDS, SAN BERNARDINO VALLEY
a California municipality MUNICIPAL WATER DISTRICT, a California municipal water district
By: ______________________________ By: ________________________________ Paul T. Barich, Mayor Heather P. Dyer , CEO/General Manager
ATTEST:
By: ______________________________
Jeanne Donaldson, City Clerk
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[Signature Page for Purchase and Sale Agreement]
26 ACKNOWLEDGED
Escrow Holder executes this Agreement below for the purpose of acknowledging that it agrees to be bound by the provisions hereof.
ESCROW HOLDER:
FIRST AMERICAN TITLE INSURANCE
COMPANY
By:
Name: ______________________________
Its: ______________________________
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EXHIBIT “A”
LEGAL DESCRIPTION
[To Be Inserted by Escrow Company]
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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
First American Title Insurance Company
Attn: Kelly Simoneau
3281 East Guasti Road, Suite 440
Ontario, California 91761
MAIL TAX STATEMENTS TO:
City of Redlands
Attn: Charles M. Duggan, Jr., City Manager
35 Cajon Street, Suite 200
Redlands, California 92373
APN: 0168-091-07 SPACE ABOVE LINE FOR RECORDER'S USE
NO FEE PER GOVERNMENT CODE SECTIONS 6103, 27383
EXHIBIT “B”
GRANT DEED
The undersigned Grantor(s) declare(s): Documentary Transfer Tax $______; City Transfer Tax $______ [ ] computed on the consideration or full value of property conveyed, OR [ ] computed on the consideration or full value less value of liens and/or encumbrances remaining a t time of sale,
[ ] unincorporated area; [ X ] City of Redlands
EXEMPT FROM TRANSFER TAXES PER REVENUE & TAXATION CODE SECTION 11922
FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT , a California municipal water district organized and existing under the Municipal Water District Law of 1911 (Water Code § 71000 et seq.), does hereby GRANT to CITY OF REDLANDS, a California municipality, the following described real property located in the County of San Bernardino, State of California:
See Exhibit “1”
SAID PROPERTY IS CONVEYED SUBJECT TO all liens, encumbrances, easements, covenants, conditions and restrictions of record, and all matters that would be disclosed or apparent by a survey and/or an inspection of the Property.
Dated: __________________, 2022. SAN BERNARDINO VALLEY MUNICIPAL
WATER DISTRICT
[Exhibit purposes only; not for execution]
By: ______________________________
Heather P. Dyer
CEO/General Manager
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EXHIBIT “1” TO GRANT DEED
LEGAL DESCRIPTION
[To Be Inserted by Escrow Company]
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ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
On _____________________ before me, ___________________________, Notary Public, personally appeared HEATHER P. DYER, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
[Exhibit purposes only; not for execution]
_____________________________________ (Seal)
Notary Public
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Site Map
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City Council Meeting I. 15.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve Amendment No. 1 to the Agreement with Richard Brady & Associates, Inc. to perform a seismic and structural assessment of the City's water infrastructure (Municipal Utilities and Engineering Director Harris)
MOTION(S):
If City Council determines the staff recommendation is appropriate, the following motion is provided:
I move that the City Council approve Amendment No. 1 to the Agreement with Richard Brady & Associates, Inc.
RECOMMENDATION:
Staff recommends City Council approve Amendment No. 1 to the Agreement with Richard Brady & Associates, Inc.
DISCUSSION:
The California State Water Resources Control Board (Water Board) recently issued a mandate for utility providers to assess and evaluate the condition, ability to resist seismic failure, and structural security of water infrastructure assets. On March 16, 2021, City Council executed an Agreement with Richard Brady & Associates, Inc. (Brady) to perform a seismic and structural assessment of the City's water infrastructure (Project) for an amount not-to-exceed $1,495,555.50.
Brady has worked diligently and has nearly completed the assessment.
However, the assessment will not be completed prior to the April 30, 2022 Agreement deadline. Staff recommends a First Amendment to the Agreement that extends the date for termination of the services to July 31, 2022.
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ALTERNATIVES:
City Council may deny approval of the First Amendment to the Agreement, although doing so will prevent completion of this project.
STRATEGIC PLAN:
N/A
SUBMITTED BY:
John R. Harris, Municipal Utilities and Engineering Director RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Goutam K. Dobey, Engineering Manager
PREPARED BY:
Veronica Medina, Assistant Engineer
Fiscal Impact
Discussion:
There is no fiscal impact associated with approval of First Amendment to the Agreement.
Attachments
A. First Amendment to Brady Agreement
B. Executed Agreement with Brady (Reference Only)
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1 L:\ca\djm\Agreements\Richard Brady & Asso. First Amend.FY21-0080.docx.jn
FIRST AMENDMENT TO AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This first amendment (“First Amendment”) to the agreement to perform condition, seismic, and structural assessment for the City of Redlands’ water facilities infrastructure (“Agreement”), dated March 16, 2021, by and between the City of Redlands, a municipal corporation and a general law city (“City”), and Richard Brady & Associates, Inc., a California corporation (“Consultant”), is made and entered into this 15th day of March, 2022.
RECITALS
WHEREAS, it is the desire of the City and Consultant to amend their existing Agreement to extend the time for completion of the services to July 31, 2022;
NOW, THEREFORE, for good and valuable consideration in the receipt of which is hereby acknowledge City and Consultant agree as follows:
AGREEMENT
Section 1. Section 4.2 of the Agreement, titled “Performance of Services,” is her eby amended to read as follows:
“4.2 The Services shall commence on the Effective Date of this Agreement, and Consultant shall complete the Services on or before July 31, 2022, unless the Services are terminated earlier as provided for herein.”
Section 2. All other provisions of the Agreement shall remain unchanged by this First Amendment and in effect.
IN WITNESS WHEREOF, the parties have executed this First Amendment, to be effective as of March 15, 2022.
CITY OF REDLANDS RICHARD BRADY & ASSOCIATES,
INC.
________________________________ By: ________________________________ Paul T. Barich, Mayor Richard Brady, Chief Executive Officer
ATTEST:
__________________________________
Jeanne Donaldson, City Clerk
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City Council Meeting I. 16.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve a Fourth Amendment to the Professional Services Agreement with Rincon Consultants, Inc. to continue providing environmental site assessment at the Alabama Street
Septage Disposal Ponds, and determine this action is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris) MOTION(S):
If City Council determines the staff recommendation is appropriate, the following motions are provided:
I move to approve that the Fourth Amendment to the Professional Services Agreement between the City of Redlands and Rincon Consultants, Inc. is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; and
1. I move to approve the Fourth Amendment to the Professional Services Agreement between the City of Redlands and Rincon Consultants, Inc. to continue providing environmental site assessment services at the Alabama Street Septage Disposal Ponds.
2. RECOMMENDATION:
Staff recommends City Council find the approval of the Fourth Amendment to the Professional Services Agreement between the City of Redlands and Rincon Consultants, Inc. is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act. Staff also recommends City Council approve the Fourth Amendment to the Professional Services Agreement between the City of Redlands and Rincon Consultants, Inc. to continue the environmental site assessment for the amended scope of services at the Alabama Street Septage Disposal Ponds.
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DISCUSSION:
The Alabama Septage Disposal Ponds were used from the 1920s through the late 1980s as a disposal site for septic tank waste. In 2003, the ponds, located east of Alabama Street and adjacent to the south bank of the Santa Ana River, were permanently closed and a five-year monitoring plan was implemented. In 2017, a fire developed on the site, which disturbed the pond surface and required a new mitigation plan. On October 30, 2018, the City executed an Agreement with Rincon Consultants, Inc. (Rincon) in an amount not to exceed $23,450 for an environmental site assessment at the ponds. The Agreement was amended on October 15, 2019, to revise the name of the City’s representative, extend the initial term, amend the scope of service, and increase the Agreement value to $34,315 due to additional on-site sampling mandated by regulatory agencies. The second amendment was approved by City Council on December 1, 2020, to change the name of the City's representative, amend the scope of services, and increase the Agreement value to $230,215 due to additional on-site sampling and sub-surface investigation mandated by the California State Water Resources Control Board (Water Board). The third amendment increased the Agreement value to $334,635, revised the Scope of Services to included additional work to further examine the impacts of per- and polyfluoroalkyl substances (PFAS) and lead to native soils beneath the septage waste material required by the Water Board, and updates the City Representative's name.
During the soil sampling, Rincon discovered a layer of river cobble rock that prevented the hollow stem auger to drill deeper than seventy-five feet (75'). In order to install the groundwater monitoring wells mandated by the Water Board, a new drilling approach is necessary. Rincon recommended an air rotary casing hammer (ARCH) drill rig for installation of two (2) groundwater monitoring wells, and a sonic rig for installation of the remaining groundwater monitoring well in order to collect the continuous cores required by the Water Board. The Water Board approved the revised drilling plan on January 18, 2022, which will not require an amendment to the work plan. The change to the drilling approach is beyond Rincon's current scope of work, and requires a fourth amendment to the Agreement. This amendment increases the Agreement value by $48,250 to $382,885, and revises the Scope of Services to reflect the new drilling approach.
Approval of the Fourth Amendment to the Agreement is exempt from environmental review pursuant to Section 15061 (b)(3) of the State's guidelines implementing the California Environmental Quality Act (CEQA) which provides that CEQA applies only to projects which have the potential for causing a significant effect on the environment. There is no possibility that the approval of this amendment will result in a significant effect on the environment.
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ALTERNATIVES:
City Council may decline approval of the Fourth Amendment to the Agreement, although doing so places the City at risk for unknown penalties that may be issued by the Water Board.
STRATEGIC PLAN:
N/A
SUBMITTED BY:
John R. Harris, Municipal Utilities and Engineering Director RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Kevin Watson, Utilities Operations Manager
Goutam K. Dobey, Engineering Manager
PREPARED BY:
Johana Silva, Assistant Engineer
Fiscal Impact
Fiscal Year: FY 2021-22
Appropriation Required Y/N: No
Budgeted Y/N: Yes
Account No.: 521910
Discussion:
There is no fiscal impact associated with approval of this Agreement amendment. The adopted FY 21/22 Wastewater Project (521910) budget includes adequate funding for this fee increase.
Attachments
A. Fourth Amendment to Rincon Agreement
B. Executed Agreement (Reference only)
C. Executed First Amendment (Reference only)
D. Executed Second Amendment (Reference only)
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E. Executed Third Amendment (Reference only)
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1 L:\ca\djm\Agreements\Rincon Fourth Amend-Alabama St.FY21-0079.docx.jn
FOURTH AMENDMENT TO AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This fourth amendment (“Fourth Amendment”) to the agreement for the preparation of an environmental site assessment for the city of Redlands’ Alabama Street septic disposal ponds dated October 30, 2018 (“Agreement”), by and between the City of Redlands, a municipal corporation and general law city (“City”), and Rincon Consultants, Inc., a California corporation (“Consultant”), is made and entered into this 15th day of March, 2022.
RECITALS
WHEREAS, it is the desire of City and Consultant to amend Exhibit “A” of the Agreement, titled “Scope of Services,” to increase the scope of services to include those described in Exhibit “1,” which is attached hereto and incorporated herein by reference; and
WHEREAS, it is the desire of the City and Consultant to amend Article 5.1 of the Agreement to increase Consultant’s total compensation of Three Hundred Thirty Four Thousand Six Hundred Thirty Five Dollars ($334,635) to the amount of T hree Hundred Eighty Two Thousand Eight Hundred Eight Five Dollars ($382,885);
NOW, THEREFORE, for good and valuable consideration in the receipt of which is hereby acknowledge City and Consultant agree as follows:
AGREEMENT
Section 1. The scope of work performed by Consultant pursuant to Exhibit “A” of the Agreement, titled “Scope of Services,” is hereby amended to include the work that is identified in Exhibit “1,” which is attached hereto and incorporated herein by this reference.
Section 2. Section 5.1 of the Agreement, titled “Payment to Consultant," is hereby amended to read as follows:
“5.1 Total compensation for Consultant’s performance of the Services shall not exceed the amount of Three Hundred Eighty Two Thousand Eight Hundred Eight Five Dollars ($382,885).
City shall pay Consultant on a time and materials basis up to the not to exceed amount, in accordance with Exhibit "B ," titled "Cost Proposal ,” which is attached hereto and incorporated herein by this reference.”
Section 3. All other provisions of the Agreement shall remain unchanged by this Fourth Amendment and in effect.
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2 L:\ca\djm\Agreements\Rincon Fourth Amend-Alabama St.FY21-0079.docx.jn IN WITNESS WHEREOF, the parties have executed this Fourth A mendment, to be effective as of March 15, 2022.
CITY OF REDLANDS RINCON CONSULTANTS, INC.
________________________________ By: ________________________________ Paul T. Barich, Mayor Torin Snyder, Principal
ATTEST:
__________________________________
Jeanne Donaldson, City Clerk
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3 L:\ca\djm\Agreements\Rincon Fourth Amend-Alabama St.FY21-0079.docx.jn EXHIBIT “1”
SCOPE OF SERVICES
The changes to the scope of work are described below.
Septage Ponds Sub-surface Investigation
Task 4: Soil and Groundwater Investigation
Rincon will conduct the soil and groundwater investigation consistent with the RWQCB-approved Work Plan. The soil and groundwater investigation will include the following elements:
Health and Safety Plan: No changes are anticipated with respect to costs of preparation of a Health and Safety Plan.
Initial Proposal Budget $430
Additional Budget $ -
Total Budget $430
Boring Mark-outs and USA Notification: Because installation of groundwater monitoring wells will occur more than 14 days after Utility Services Alert (USA) notification associated with the soil sampling scope of work, an additional mark-out will be required.
Initial Proposal Budget $840
Additional Budget $250
Total Budget $1,090
Permitting: San Bernardino County Well Permits require information pertaining to well construction and drilling activities. As such, a new San Bernardino County Well Permit will be required prior to mobilizing for well installation activities.
Initial Proposal Budget $1,972
Additional Budget $1,100
Total Budget $3,072
Monitoring Well Installation, Well Development, Groundwater Sampling and Soil Sampling: Additional costs associated with monitoring well installation, well development, groundwater sampling, and soil sampling include increased drilling costs based on revised methods (i.e., air rotary casing hammer (ARCH) and sonic drill rigs) (revised quote was provided January 2022).
Initial Proposal Budget + August 2021 Addendum $182,030 Additional Driller Costs $33,600
Additional Labor Cost $5,350
Total Additional Cost $38,950
Total Budget $217,330
Soil and Groundwater Sample Analysis: No additional costs are anticipated at this time.
Initial Proposal Budget + August 2021 Addendum $33,140
Additional Groundwater Analytical $ -
Additional Soil Analytical $ -
Total Additional Cost $ -
Total Budget $33,140
Investigation Derived Waste: In the initial proposal, it was assumed that groundwater monitoring well installation would occur within the same time period as soil sampling activities; therefore, rental of the roll-off bins was assumed for a shorter period of time. Rincon assumed a cost for removal of the bins by the end of February 2022. If the bins are required to remain onsite past February 28, 2022, an additional $37.03 per day fee will be incurred.
Initial Proposal Budget + August 2021 Addendum $3,392.50 Bin Costs, including bin rental, removal from site, and disposal $4,550.00 Total Additional Cost $4,550.00
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4 L:\ca\djm\Agreements\Rincon Fourth Amend-Alabama St.FY21-0079.docx.jn Total Budget $7,942.50
Task 5: Meetings and Project Management
Rincon anticipates three one-hour meetings with the City and/or the RWQCB will be required to review the CSM, and to develop and finalize the work plan for soil and groundwater assessment at the Septage Ponds. In addition, administrative project management costs are included in this task.
Initial Proposal Budget + August 2021 Addendum $4,750
Total Additional Cost $2,030
Total Budget $6,780
Additional costs associated with Reporting are summarized below.
Initial Proposal Budget+ August 2021 Addendum $7,000
Additional Budget $1,370
Total Budget $8,370
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5 L:\ca\djm\Agreements\Rincon Fourth Amend-Alabama St.FY21-0079.docx.jn EXHIBIT “B”
COST PROPOSAL
Tasks
Task
Approved
Budget
Total Additional Costs
Total Budget
Environmental Site Assessment
Task 1: Environmental Site
Assessment $34,315
$ - $34,315
Task: Septage Pond Sub-Surface Investigation
Task 1: Preparation of Conceptual
Site Model
$9,600 $ - $9,600
Task 2: Request for Proposal
Development
$5,500 $ - $5,500
Task 3: Soil Sampling Work Plan $6,800 $ - $6,800
Task 4: Soil and Groundwater
Investigation
$220,600 $44,850 $265,450
Task 5: Meetings, Reporting, and
Project Management
$19,520 $3,400 $22,920
Contingency: 20-percent $38,300 $ - $38,300
TOTAL PROJECT BUDGET $334,635 $48,250 $382,885
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City Council Meeting I. 17.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve Amendment No. 1 to the Agreement with RK Engineering Group, Inc. to perform Engineering and Traffic Surveys on various streets within City limits (Municipal Utilities and Engineering Director Harris)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motions are provided:
I move that the City Council approve Amendment No. 1 to the Agreement with RK Engineering Group, Inc.
1. RECOMMENDATION:
Staff recommends City Council approve Amendment No.1 to the Professional Services Agreement between the City of Redlands and RK Engineering Group, Inc.
DISCUSSION:
The City of Redlands (City) routinely prepares Engineering and Traffic Surveys (E&TS) to justify posted speed limits throughout the City and to allow the Police Department to enforce the speed limits using an electronic device. In compliance with California Vehicle Code (CVC) Section 40802, State and local agencies conduct engineering studies at least once every five to ten years to reevaluate non-statutory speed limits on roadway segments that have undergone significant changes since the last review. The last speed survey was conducted in July 2015. The City has a total of 133 street segments on 54 streets within the City limits that have expired speed surveys. The City requires the assistance of a qualified consultant to perform E&TS on the expired speed surveys as necessary to provide sufficient information to document that the conditions of the latest edition of the CVC have been satisfied.
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On July 6, 2021, City Council executed an Agreement with RK Engineering Group, Inc. (RK) to perform E&TS on various streets within City limits (Project) for an amount not-to-exceed $39,490. RK has worked diligently and has nearly completed the Project. However, the Project will not be completed prior to the March 31, 2022, Agreement deadline. Staff recommends a First Amendment to the Agreement that extends the date for termination of the services to June 30, 2022.
ALTERNATIVES:
City Council may deny approval of the First Amendment to the Agreement, although doing so will prevent the completion of this project.
STRATEGIC PLAN:
N/A
SUBMITTED BY:
John R. Harris, Municipal Utilities and Engineering Director RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Goutam K. Dobey, Engineering Manager
PREPARED BY:
Johana Silva, Assistant Engineer
Fiscal Impact
Discussion:
There is no fiscal impact associated with approval of First Amendment to the Agreement.
Attachments
A. First Amendment to RK Engineering Group
B. Executed Agreement with RK Engineering (Reference Only)
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1 L:\ca\djm\Agreements\RK Engineering Group First Amend.FY21-0086.docx.jn
FIRST AMENDMENT TO AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This first amendment (“First Amendment”) to the agreement of professional engineering and traffic survey services ( “Agreement”), dated July 6, 2021, by and between the City of Redlands, a municipal corporation and a general law city ( “City”), and RK Engineering Group, Inc., a California corporation (“Consultant”) , is made and entered into this 15 th day of March , 2022.
RECITALS
WHEREAS, it is the desire of the City and Consultant to amend Article 4.2 of the Agreement to extend the date for termination of the Services to June 30, 2022;
NOW, THEREFORE, for good and valuable consideration in the receipt of which is hereby acknowledge City and Consultant agree as follows:
AGREEMENT
Section 1. Section 4.2 of the Agreement, titled “Performance of Services,” is her eby amended to read as follows:
“4.2 Consultant shall complete the Services by June 30, 2022, unless the Services are terminated earlier as provided for herein.”
Section 2. All other provisions of the Agreement shall remain unchanged by this First Amendment and in effect.
IN WITNESS WHEREOF, the parties have executed this First Amendment, to be effective as of March 15, 2022.
CITY OF REDLANDS RK ENGINEERING GROUP, INC.
________________________________ By: ________________________________ Paul T. Barich, Mayor Rogier Goedecke, President
ATTEST:
__________________________________
Jeanne Donaldson, City Clerk
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City Council Meeting I. 18.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Receive and File the Redlands Police Department's Military Equipment Use Policy (Police Chief Catren)
MOTION:
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to receive and file the Redlands Police Department's Military Equipment Use Policy.
RECOMMENDATION:
Staff recommends City Council receive and file the Redlands Police Department's Military Equipment Use Policy.
DISCUSSION:
Effective January 1, 2022, all law enforcement agencies in California are required to adopt a policy concerning the funding, acquisition and use of military equipment as defined by Government Code § 7070; Government Code § 7071; Government Code § 7072.
Section 7071 requires each law enforcement agency to obtain approval of the applicable governing body, by adoption of a military equipment use policy, by ordinance at a regular meeting held pursuant to specified open meeting laws, prior to taking certain actions relating to the funding, acquisition, use, or collaboration with another agency in the use, of military equipment. The section requires similar approval for the continued use of military equipment acquired before January 1, 2022 with May 1, 2022 as the deadline for an agency to begin a governing body approval process.
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The law provides a definition of military equipment, requires the Chief of Police to designate a military equipment coordinator and obtain approval from the governing body (Redlands City Council) by way of an ordinance adopting the military equipment policy. The policy must include: a description of each type of military equipment; the quantity sought; its capabilities; lifespan; the manufacturer’s product description; the purposes and authorized uses; the fiscal impact; the legal and procedural rules that govern each use; the training that must be completed before any member is allowed to use the equipment; the mechanisms to ensure compliance with the policy; the procedures by which members of the public may register complaints or concerns or submit questions about the use of military equipment; and how the department will ensure that each complaint, concern, or question receives a response in a timely manner.
The attached policy meets all the legal requirements set forth in the aforementioned Government Code sections. Prior to this meeting, the policy has been posted on the Redlands Police Department's (RPD) website for public review for more than 30 days, and the policy will continue to be posted within the RPD's "Training Materials and Policies" for review by the public. The RPD will subsequently, after allowing for an additional 30 days of review by the public of the policy, present an ordinance to the City Council for consideration and adoption of the military equipment use policy.
The law further requires that the policy be reviewed annually; and, within 30 days of submitting and publicly releasing the annual report, the RPD must hold at least one well-publicized and conveniently located community engagement meeting, at which the RPD will discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.
SUBMITTED BY:
Christopher R. Catren, Chief of Police
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Attachments
Military Equipment Policy
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Policy
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Military Equipment
706.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
706.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):
Governing body
– The elected or appointed body that oversees the Department.
Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.
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706.2 POLICY
It is the policy of the Redlands Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 706.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Redlands Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:
1. Publicizing the details of the meeting.
2. Preparing for public questions regarding the department’s funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
706.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:
Robot (Category 1)
Description, quantity, capabilities, and purchase cost:
ROBOTEX AVATAR 3, cost: approximately $12,500, quantity: 1. This equipment is a battery powered, remote operated device, equipped with a camera and two way radio capabilities. This equipment is for (potential) use during high-risk incidents. Use is limited to members of the Departments Special Weapons and Tactics Team (SWAT). Incidents that may qualify for its use include, but are not limited to, a high risk warrant service, barricaded subject, and hostage negotiation/rescue. Before entering a structure, particularly in a tactically compromised and dangerous situation, knowledge of a subject’s location is very important, and the robot can provide that without placing anyone at risk. Cameras can
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also help determine if a subject is armed and also if there are other subjects inside that need assistance. The two-way speakers can be used to de-escalate and determine resistance level. The ROBOTEX AVATAR 3 can be hand carried and both can be remotely operated from a safe distance, reducing the risk to the operator.
Purpose:
To be used to remotely gain visual/audio data, deliver HNT phone, open doors, disrupt packages, and clear buildings.
Authorized Use:
Only assigned operators who have completed the required training shall be permitted to operate the robot. Use is established by the SWAT Commander and or Incident Commander.
Expected Life Span:
Approximately 5-10 years.
Fiscal Impact:
No annual maintenance.
Training:
All tactical robot operators are trained in the use and operation of the robot.
Legal and Procedural Rules:
It is the policy of the RPD to utilize a robot only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law.
Unmanned Aerial System (Category 1)
Description, quantity, capabilities, and purchase cost:
An unmanned aerial system (UAS) is an unmanned aircraft along with the associated equipment necessary to control it remotely. The UAS has also proven to be useful to public safety agencies in firefighting, search and rescue, pre-operational surveillance, and other tactical situations where aerial views enhance the safety and efficiency of law enforcement and fire personnel.
DJI MATRICE M210, cost: approximately $6,500 each, quantity: 1. UAS that weighs approximately 3800 grams and is able to record video and audio with approximately 30 minutes of flight time.
DJI PHANTOM 4 PRO, cost: approximately $1,600 each, quantity: 5. UAS that weighs approximately 1375 grams and has video recording capabilities, approximately 30 minutes of flight time.
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DJI MAVIC ENTERPRISE DUALS, cost: approximately $5,500 each, quantity: 2. UAS that has a color and infrared camera as well as audible speaker and light. Capable of video recording and weighs 899 grams, approximately 30 minutes of flight time.
Purpose:
To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:
Major collision investigations.
Search for missing persons.
Natural disaster management.
Crime scene photography.
SWAT, tactical or other public safety and life preservation missions.
In response to specific requests from local, state or federal fire authorities for fire response and/or prevention.
Authorized Use:
Only assigned operators who have completed the required training shall be permitted to operate UAS equipment during approved missions.
Expected Life Span:
All UAS equipment, approximately 3-5 years.
Fiscal Impact:
Annual maintenance and battery replacement cost is approximately $700.
Training:
All Department UAS operators are licensed by the Federal Aviation Administration for UAS operation. In addition, each operator must attend a 40-hour department training and ongoing quarterly training.
Legal and Procedural Rules:
Use is established under Policy 604 (Unmanned Aerial System Operations) and FAA Regulation 14 CFR Part 107. It is the policy of the RPD to utilize UAS only for official law enforcement purposes, and in a manner that respects the privacy of our community, pursuant to State and Federal law.
Armored Vehicles (Category 2 & 3)
Description, quantity, capabilities, and purchase cost:
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Commercially produced wheeled armored personnel vehicle utilized for law enforcement purposes.
LENCO BEARCAT, G3, cost: approximately $350,000, quantity: 1. The Lenco Bearcat, G3, is an armored vehicle that seats 10-12 personnel with open floor plan that allows for rescue of down personnel. The Bearcat G3 has increased ground clearance and a robust suspension which allows for an emergency response to almost any situation. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor.
Navistar MaxxPro MRAP, cost: free, quantity: 1. The MaxxPro MRAP vehicle that seats 8 personnel that allows for rescue of down personnel. It can stop various projectiles, which provides greater safety to citizens and officers beyond the protection level of shield and personal body armor.
Purpose:
To be used in response to critical incidents to enhance officer and community safety, improve scene containment and stabilization, and assist in resolving critical incidents.
Authorized Use:
The use of armored vehicles shall only be authorized by a watch commander or SWAT commander, based on the specific circumstances of a given critical incident. Armored vehicles shall be used only by officers trained in their deployment and in a manner consistent with Department policy and training. The driver of the vehicle shall have a valid California driver’s license.
Lifespan:
Lenco Bearcat model G3, approximately 25 years.
Navistar MAxxPro MRAP, approximately 25 years.
Fiscal Impact:
Lenco Bearcat: Annual maintenance cost: Approximately $5,000.
MRAP: Approximately $4,500.
Training:
All driver/operators shall attend formalized instruction and be trained in vehicle operations and practical driving instruction.
Legal and Procedural Rules:
Use is established under policy 405 (Ballistic Rescue Vehicle) and 704 (Federally Controlled Equipment). It is the policy of the Department to utilize armored vehicles only for official law enforcement purposes, and pursuant to State and Federal law.
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Command and Control Vehicle (Category 5)
Description, quantity, capabilities, and purchase cost:
5th wheel trailer vehicle, cost: approximately $200,000, quantity: 1. The Mobile Command Unit (MCU) is a custom built, 5th wheel trailer vehicle containing a mobile office that provides shelter, access to Police Department computer systems, and restroom facilities on extended events. The MCU can also be utilized for SWAT/CNT and other critical incidents, preplanned large events, searching for missing persons, natural disasters, and community events.
Purpose:
To be used based on the specific circumstances of a given critical incident, large event, natural disaster or community event that is taking place.
Authorized Use:
The MCU shall be used by officers trained in their deployment and in a manner consistent with Department policy and training. The driver of the vehicle shall have a valid California driver’s license.
Lifespan:
The MCU: Approximately 20-year lifespan on chassis and vehicle structure. Upgrades needed to maintain IT systems.
Fiscal Impact:
Annual maintenance cost is approximately $2,000.
Training:
The driver/operator shall receive training in the safe handling of the vehicle on a closed training course. Once the operator has shown competence in vehicle handling, the driver/ operator will drive the vehicle throughout the city with an experienced driver.
Legal and Procedural Rules:
It is the policy of the Department to use the MCU only for official law enforcement purposes, and in accordance with California State law regarding the operation of motor vehicles.
Projectile Launch Platforms and associated munitions (Category 14) Description, quantity, capabilities, and purchase cost:
40MM Launchers are utilized by department personnel as a less lethal tool to launch impact rounds. The Less-Lethal launcher is a single launcher, which allows the Officer to assess after every spent munition.
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DEFENSE TECHNOLOGY, 40MM SINGLE SHOT LAUNCHER, #1425, cost: $1000, quantity: approximately 15. The 40MM Single Launcher is a tactical single shot launcher that features an expandable ROGERS Super Stoc and an adjustable Integrated Front Grip (IFG) with light rail. It will fire standard 40mm less lethal ammunition, up to 4.8 inches in cartridge length. It will launch a 40MM less lethal round up to 131 feet.
DEFENSE TECHNOLOGY, 40MM EXACT IMPACT SPONGE, #6325, cost: $18, quantity:
approximately 100. A less lethal 40mm lightweight plastic and foam projectile fired from a single or multi-round purpose built 40mm grenade launcher with a rifled barrel at 325 FPS.
The 30-gram foam projectile delivers 120 ft/lbs. of energy on impact. The 40mm Exact Impact Sponge Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 131 feet from the target.
DEFENSE TECHNOLOGY, 40MM DIRECT IMPACT OC, #6320, cost: $30, quantity:
approximately 100. A less lethal 40MM lightweight plastic and crushable foam projectile fired from a single or multi-round purpose-built 40mm grenade launcher with a rifled barrel at 295 FPS. The 39-gram crushable foam projectile delivers 120 ft/lbs of energy upon impact in addition to dispersion of 5 grams of OC irritant. The 40mm Direct Impact OC Round provides accurate and effective performance when fired from the approved distance of not less than five (5) feet and as far as 120 feet from the target.
DEFENSE TECHNOLOGY, 40MM LIQUID FERRET ROUND CS, #1262, cost:
approximately $30, quantity: approximately 25. Minimizes the risk to all parties through pain compliance, temporary discomfort and/or incapacitation of potentially violent subjects.
DEFENSE TECHNOLOGY, 40MM POWDER FERRET ROUND CS, #1292, cost:
approximately $30, quantity: approximately 25. Minimizes the risk to all parties through pain compliance, temporary discomfort and/or incapacitation of potentially violent subjects.
DEFENSE TECHNOLOGY, 40MM POWDER FERRET ROUND OC, #1290, cost:
approximately $30, quantity: approximately 25. Minimizes the risk to all parties through pain compliance, temporary discomfort and/or incapacitation of potentially violent subjects.
Purpose:
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
Authorized Use:
Situations for use of the less lethal weapon systems may include, but are not limited to:
Self-destructive, dangerous and/or combative individuals.
Riot/crowd control and civil unrest incidents.
Circumstances where a tactical advantage can be obtained.
Potentially vicious animals.
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Training exercises or approved demonstrations.
Training:
Sworn members utilizing 40MM less lethal chemical agents or impact rounds are trained in there use by POST certified less lethal and chemical agents instructors.
Lifespan:
Defense Technology #1425: approximately 25 years
Model 6325 Exact Impact Sponge: approximately 5 years
Model 6320 Direct Impact OC: approximately 5 years.
Fiscal Impact:
Annual maintenance is approximately $50 for each launcher.
Legal and Procedural Rules:
Use is established under policy 303.9 (Kinetic Energy Projectile Guidelines), 303.6 (Tear Gas Guidelines) and 303.7 (Oleoresin Capsicum Guidelines). It is the policy of the RPD to utilize the 40mm only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.
Noise-Flash Diversionary Devices (Category 12)
Description, quantity, capabilities, and purchase cost:
A distraction device is used to distract dangerous suspects during assaults, hostage rescue, room entry or other high-risk arrest situations.
DEFENSE TECHNOLOGY, TACTICAL DIVERSIONARY DEVICE, #8909 NR, cost:
approximately $50, quantity: approximately 25. The Defense Technology Tactical Diversionary Device produces a thunderous bang with an intense bright light. Ideal for distracting dangerous suspects during assaults, hostage rescue, room entry or other high- risk arrest situations.
Purpose:
To produce atmospheric over-pressure and brilliant white light and, as a result, can cause short-term (6 - 8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.
Authorized Use:
Diversionary Devices shall only be used:
By officers who have been trained in their proper use.
In hostage and barricaded subject situations.
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In high risk warrant (search/arrest) services where there may be extreme hazards to officers.
During other high-risk situations where their use would enhance officer safety.
During training exercises.
Lifespan:
Until used.
Fiscal Impact:
No annual maintenance.
Training:
Prior to use, officers must attend diversionary device training that is conducted by Post certified instructors.
Legal and Procedural Rules:
Use is established under policy 704.3 (Federally Controlled Equipment). It is the policy of the RPD to utilize diversion devices only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Specialized Firearms and Ammunition (Category 10)
Description, quantity, capabilities, and purchase cost:
The Carbine Rifle is a firearm, capable of accurately stopping an armed subject at various distances. The Carbine Rifle is a lightweight, air-cooled, gas operated, magazine fed, shoulder fired weapon, designed for semi-automatic & selective fire. Submachine guns are magazine fed automatic firearms designed to fire handgun cartridges.
SIG SAUER 716 DMR AR-10.308 CALIBER RIFLE, MODEL LR-308: cost: $1500, quantity:
1. The Sig Sauer 716 DMR AR-15 is a high precision rifle that fires.308 cartridges accurately at long range. This rifle is primarily used in an overwatch capacity to protect the community during large events
REMINGTON POLICE LTR.308 BOLT ACTION RIFLE: cost: approximately $1,200, quantity:
4. The Remington Police LTR is a highly accurate bolt action centerfire rifle. This rifle is primarily used in an overwatch capacity to protect the community during large events.
AR-15 RIFLE (Manufactured by Colt, Bushmaster, Sig Sauer, Fabrique Nationale): cost:
approximately $1,200, quantity: approximately 100. A rifle that fires both.223 (duty) and
5.56 (practice) cartridges. The AR-15 allows a trained officer to engage threats with greater accuracy than a handgun.
HECKLER & KOCH MP-5: cost: approximately $2,800, quantity: approximately 6. A submachinegun that fires 9mm cartridges. The MP-5 allows a trained officer to engage
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threats at close range or within a structure with less likelihood of over penetrating the target.
It should be noted that the MP-5’s are not issued to officers and not deployed in the field.
WINCHESTER RANGER CENTERFIRE RIFLE CARTRIDGES.223 REM, 55 GRAIN, POINTED SOFT POINT, cost: approximately $630 per case of 1000, quantity: 50 cases.
This Winchester Ranger 223 Remington ammo features a 55 Grain Pointed Soft Point bullet.
Winchester Ranger is the highest quality hollow point ammunition money can buy. This Winchester Ranger.223 55 grain Power Point Soft Point is intended for Law Enforcement use, Ranger is Winchesters Highest Quality. This Winchester Ranger 223 Remington is new ammo not Police Department surplus. This Winchester Ranger 223 Remington has a muzzle velocity of 3240 feet per second and a muzzle energy of 1262 foot pounds. Winchester Ranger ammo is reloadable, features brass cases and Boxer primers. This ammunition is non-corrosive.
WINCHESTER CENTERFIRE CARTRIDGES 5.56MM, 55 GRAIN, FULL METAL JACKET, cost: approximately $370 per case of 1000, quantity: approximately 500 cases. USA Ammunition is the ideal choice for training, competition or a long session at the range. The easily identifiable white box means high quality and reliability at a low price. This ammunition is new production, non-corrosive, in boxer primed, reloadable brass cases. 308 WIN TAP 168 gr A-MAX TAP PRECISION: cost: approximately $35 per box of 20, quantity: approximately 375 boxes. The168 gr. A-MAX bullet is a traditional match grade bullet with the performance advantages of a polymer tip. This bullet demonstrates an increase in penetration and retained weight over the 155 gr. A-MAX bullet. Standard barrier performance is exemplary and this load demonstrates controlled and impressive soft tissue expansion without over penetration. The Hornady 168 gr. A-MAX TAP Precision offers industry leading all-around performance for law enforcement precision marksmen providing the ability to stop a threat.
Purpose:
To be used as precision weapons to address a threat with more precision and/or greater distances than a handgun, if present and feasible.
Authorized Use:
Only members that are POST certified are authorized to use a rifle.
Lifespan:
Sig Sauer 716 DMR AR-10.308 Caliber Rifle, Model LR-308: No expiration.
Remington Police LTR.308 Bolt Action Rifle: No expiration.
AR-15 Rifle (Manufactured by Colt, Bushmaster, Sig Sauer, Fabrique Nationale): No expiration.
Heckler & Koch MP-5: No expiration.
Winchester.223 Ammunition: No expiration.
Winchester 5.56mm Ammunition: No expiration.
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308 WIN TAP 168 gr A-MAX Tap Precision: No expiration.
Fiscal Impact:
Annual maintenance is approximately $50 for each rifle.
Training:
Officers shall not carry or utilize the patrol rifle unless they have successfully completed departmental training. Officers shall thereafter be required to successfully complete trimester training and qualification conducted by a certified patrol rifle instructor.
Legal and Procedural Rules:
Use is established under policy 417 (Patrol Rifles). It is the policy of the RPD to utilize rifles only for official law enforcement purposes, and pursuant to State and Federal law regarding the use of force.
Chemical Agent and Smoke Canisters (Category 12)
Description, quantity, capabilities, and purchase cost:
Canisters that contain chemical agents that are released when deployed.
DEFENSE TECHNOLOGY, FLAMELESS TRI-CHAMBER CS GRENADE, #1032, cost $45, quantity: approximately 10. The design of the Tri-Chamber Flameless CS Grenade allows the contents to burn within an internal can and disperse the agent safely with reduced risk of fire. The grenade is designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject. This grenade will deliver approximately.70 oz. of agent during its 20-25 seconds burn time. The Tri-Chamber Flameless Grenade can be used in crowd control as well as tactical deployment situations by Law Enforcement and Corrections but was designed with the barricade situation in mind. Its applications in tactical situations are primarily to detect and/or dislodge barricaded subjects. The purpose of the Tri-Chamber Flameless Grenade is to minimize the risks to all parties through pain compliance, temporary discomfort, and/ or incapacitation of potentially violent or dangerous subjects. The Tri-Chamber Flameless Grenade provides the option of delivering a pyrotechnic chemical device indoors, maximizing the chemicals’ effectiveness via heat and vaporization, while minimizing or negating the chance of fire to the structure. The Tri-Chamber Flameless Grenade is NOT to be launched utilizing a launching cup.
DEFENSE TECHNOLOGY, OC/CS AEROSOL GRENADE, #1050, cost: approximately $49, quantity: approximately 16. The Defense Technology OC/CS Aerosol Grenade is for law enforcement and corrections use to deliver a high concentration of OC and CS in a powerful mist. The grenade is designed for indoor use in confined areas and, once deployed, inflames the mucous membranes and exposed skin resulting in an intense burning sensation. The incapacitating effect of the OC/CS on the subject is dramatic with minimal decontamination needed. Removing the subject from the affected area to fresh air will resolve respiratory
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effects within minutes. The OC Aerosol Grenade is ideal for cell extractions or barricade situations where the use of pyrotechnic, powder or liquid devices is not practical or desired.
Purpose:
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to:
Self-destructive, dangerous and/or combative individuals.
Riot/crowd control and civil unrest incidents.
Circumstances where a tactical advantage can be obtained.
Potentially vicious animals.
Training exercises or approved demonstrations.
Authorized Use:
Only officers who have received POST certification in the use chemical agents are authorized to deploy chemical agents.
Training:
Sworn members utilizing chemical agent canisters are certified by POST less lethal and chemical agent instructors.
Lifespan:
5 years from manufacturing date
Fiscal Impact:
No annual maintenance.
Legal and Procedural Rules:
Use is established under policy 303.6 (Tear Gas Guidelines). It is the policy of the RPD to utilize chemical agents only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.
Less Lethal Shotgun (Category 12)
Description, quantity, capabilities, and purchase cost:
The Less Shotgun is used to deploy the less lethal 12-Gauge Ferret Rounds.
REMINGTON 870 SHOTGUN, cost: $946, quantity: 1. The Remington 870 Shotgun is used to deploy the less lethal 12-Gauge Ferret Rounds up to a distance of 35 feet. The range of the weapon system helps to maintain space between officers and a suspect reducing the immediacy of the threat which is a principle of De-escalation.
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DEFENSE TECHNOLOGY, 12-GAUGE LIQUID FERRET ROUND, CS, #3012, cost:
approximately $8, quantity: approximately 20. The Ferret 12-Gauge Liquid CS non pyrotechnical properties also eliminate the fire hazard common with other products. The Ferret round is available with either liquid or powder carriers for the agent. These munitions are a 2.5 in. 12-Gauge round deploying.025 oz. of active agent.
DEFENSE TECHNOLOGY, 12-GAUGE POWDER FERRET ROUND, CS, #3092, cost:
approximately $8, quantity: approximately 20. The Ferret 12-Gauge Powder CS non pyrotechnical properties also eliminate the fire hazard common with other products. The Ferret round is available with either liquid or powder carriers for the agent. These munitions are a 2.5 in. 12-Gauge round deploying.025 oz. of active agent.
Purpose:
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.
Authorized Use:
Situations for use of the less lethal weapon systems may include, but are not limited to:
Self-destructive, dangerous and/or combative individuals.
Riot/crowd control and civil unrest incidents.
Circumstances where a tactical advantage can be obtained.
Potentially vicious animals.
Training exercises or approved demonstrations.
Lifespan:
Remington 870 Shotgun: 25 years.
Defense Technology Ferret 12-Gauge Liquid Barricade Round: 5 years.
Defense Technology Ferret 12-Gauge Powder Barricade Round: 5 years.
Fiscal Impact:
Annual maintenance is approximately $50.
Training:
SWAT operators who utilize these munitions have been through and successfully completed a POST approved gas school and/or trained in house by POST certified chemical agent instructors for muzzle blast training.
Legal and Procedural Rules:
Use is established under Policy 303.9.3. It is the policy of the RPD to utilize the less lethal shotgun only for official law enforcement purposes, and pursuant to State and Federal law, including those regarding the use of force.
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Breaching Tools (Category 7)
Description, quantity, capabilities, and purchase cost:
Material or equipment that is used to create a breach point opening in a structure during a hostage rescue operation or other high risk entry.
KBT 3-1000, cost: approximately $18,000, quantity: 1. This device allows breachers to safely utilize blank cartridge rounds to deliver kinetic energy into a steal ram in order to destroy deadbolts, locks, and hinges. No projectile or explosive energy leaves the device except for the force of the ram, which is permanently captured in the tool.
Purpose:
To safely gain entry into a structure.
Authorized Use
:
KBT breaching may only occur after authorization by the Incident Commander or SWAT Commander in the field, and during training exercises.
Lifespan:
Breaching Tool: 25 years
Fiscal Impact:
Annual maintenance is approximately $500.
Training:
All officers who use KBT shall receive instruction on the safe and proper use of the KBT and must periodically receive refresher training.
Legal and Procedural Rules:
It is the policy of the RPD to utilize breaching tools only for official law enforcement purposes, and pursuant to State and Federal law
.
706.5 MAINTENANCE OF MILITARY EQUIPMENT SUPPLIES
When stocks of military equipment have reached significantly low levels or have been exhausted, the Department may order up to 25% of stock in a fiscal quarter without city council approval to maintain essential availability for the Department’s needs. 706.6 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior
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Redlands Police Department
Redlands PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2022/01/31, All Rights Reserved.
Published with permission by Redlands Police Department Military Equipment - 15
to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 706.7 COORDINATION WITH OTHER JURISDICTIONS
Military equipment used by any member of this jurisdiction shall be approved for use and in accordance with this Department policy. Military equipment used by other jurisdictions that are providing mutual aid to this jurisdiction shall comply with their respective military equipment use policies in rendering mutual aid.
706.8 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).
The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 706.9 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.
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City Council Meeting I. 19.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Approve Side Letter between the City and the Redlands Association of Department Directors (Assistant City Manager McConnell)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to approve the side letter of agreement between the City and the Redlands Association of Department Directors.
RECOMMENDATION:
Staff recommends that City Council approve the side letter of agreement between the City and the Redlands Association of Department Directors.
DISCUSSION:
On March 21, 2022, Richard Sessler will be promoted to the position of Fire Chief. This position is covered by the Memorandum of Understanding (MOU) between the City and the Redlands Association of Department Directors (RADD). The RADD MOU provides for annual leave with a cap of 900 hours.
Previously, Chief Sessler belonged to the Redlands Association of Fire Management Employees which provides vacation, executive leave, and sick leave without the restriction of a cap. Due to Chief Sessler's tenure with the City, his leave balances exceed the 900-hour leave cap currently provided under the RADD MOU. The attached side letter provides Chief Sessler up until August 31, 2023, to utilize or sell his earned leave while continuing to accrue leave.
All other provisions of the MOU are unaffected by this agreement.
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ALTERNATIVES:
N/A
STRATEGIC PLAN:
N/A
SUBMITTED BY:
Janice McConnell, Assistant City Manager
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Christopher Boatman, RADD President
PREPARED BY:
Tommi Ng, Assistant Director, HR/Risk Management
Fiscal Impact
Discussion:
There is no fiscal impact associated with the approval of this side letter of agreement.
In effect, the side letter will reduce the City's compensated absences balance by an amount commensurate with hours accrued in excess of the 900-hour limit by the August 2023 date. This liability could be liquidated (reduced) in the form of compensated time off or cash payouts to employee deferred compensation plans.
Attachments
RADD Side Letter
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SIDE LETTER TO THE CURRENT MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF REDLANDS AND THE REDLANDS ASSOCIATION OF
DEPARTMENT DIRECTORS (RADD)
On December 5, 2017 the City Council approved a Memorandum of Understanding between the City of Redlands (“the City”) and the Redlands Association of Department Directors (“RADD”), effective July 1, 2018 – June 30, 2023.
This side letter agreement between the City of Redlands (“the City”) and the Redlands Association of Department Directors (“ RADD”) is hereby entered into this 15 th day of Ma rch,
2022. The parties agree to the following:
Commencing March 21, 2022, Chief Sessler shall have up to and including the date of August 31, 2023, to decrease his accrued unused hours of leave (“Director’s Accumulated Leave”), as of the commencement date, to nine hundred (900) hours or less. In the event Chief Sessler’ s leave balance is in excess of 900 hours as of September 1, 2023, Chief Sessler will no longer accrue leave until his balance is below 900 hours.
CITY OF REDLANDS REDLANDS ASSOCIATION OF
DEPARTMENT DIRECTORS
_________________________________ _________________________________ Paul T. Barich., Mayor Christopher Boatman, President
ATTEST:
_________________________________
Jeanne Donaldson, City Clerk
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City Council Meeting I. 20.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Authorize issuance of a Proclamation commending Maestro Frank Paul Fetta for over 40 years of service to the Redlands Bowl (Mayor Barich)
MOTION:
I move to authorize the issuance of a Proclamation commending Maestro Frank Paul Fetta for over 40 years of service to the Redlands Bowl.
Attachments
Retirement Proclamation
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City Council Meeting J. 1.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Video Series: Redlands Making Progress (Public Information Officer Baker)
DISCUSSION:
For this evening's City Council meeting, staff is introducing a new video series “Redlands Making Progress.” The series will highlight progress on capital and maintenance projects that benefit the public. The videos will be available for viewing on the City’s website and social media platforms in addition to being shown in rotation on Redlands TV.
SUBMITTED BY:
Janice McConnell, Assistant City Manager
REVIEWED BY:
Charles M. Duggan, Jr., City Manager
Carl Baker, Public Information Officer
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City Council Meeting J. 2.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Discussion and possible action relating to the use of State and Local Fiscal Recovery Funds (SLFRF) through the American Rescue Plan Act (ARPA) (Assistant City Manager McConnell)
MOTION:
If the City Council determines that staff’s recommendation is appropriate, the following motions are provided:
I move to direct staff to initiate the program and authorize the expenditures of $11,508,106 of American Rescue Plan Act SLFRF funds for the programs described; and
1. I move to approve two limited-term, full-time Administrative Assistant I/II positions for the administrative support and facilitation of community programs under the City’s American Rescue Plan Act SLFRF allocation; and
2. I move to authorize Finance to move American Rescue Plan Act SLFRF funds as needed in the future within the approved categories.
3. RECOMMENDATION:
Staff recommends that the City Council approve and direct staff for initial programming, authorizing the expenditures of $11,508,106 of American Rescue Plan Act SLFRF funds for the programs as described below, and authorize Finance to move SLFRF funds as needed in the future within the approved categories.
In addition, staff recommends that the City Council approve two limited-term, full-time Administrative Assistant I/II positions for the administrative support and facilitation of community programs under the City's allocation of American Rescue Plan Act funding.
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DISCUSSION:
During the City Council meeting discussion on March 1, 2022, the Council provided staff with programming recommendations for the use of State and Local Fiscal Recover Funds through the American Rescue Plan Act.
Staff is returning with revised program options for the Council’s consideration.
The overall concept and categories of the programs remain unchanged with the revisions focused on the total program budget, number of beneficiaries to be served, benefit amount, and program duration.
The program revisions are presented in the table below with adjustments based on the March 1st discussion.
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SUBMITTED BY:
Janice McConnell, Assistant City Manager
REVIEWED BY:
Charles M. Duggan, Jr., City Manager
Danielle J. McHugh, City Attorney
Danielle Garcia, Management Services/Finance Director
PREPARED BY:
Maira Durazo, Grants Coordinator
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Fiscal Impact
Discussion:
The total grant award to Redlands is $11,508,106.
Attachments
ARPA Program Details Table
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Ca
tegory Program Name Total Budget Beneficiaries Benefit Amount Program Duration 11,508,106.00$
Throug
h 2024
Total
Pa
ndemic
Response
Limited-term
Administrative
Assistants
$ 232,000.00 ARPA Program
Participants N/A 2-years
Public Health
Response 2,000,906.00$ Residents and Staff N/A
Premium
Pa
y Prem
ium Pay for
Eligible
Employees
3,100,500.00$ approx. 477 eligible
City employees
Up to $6,500 - $125
per payperiod (52
payperiods)
one time benefit
Waste Water
Rate
Reduc
tion Wast
e
WaterTreatment
Plant Project
$ 1,000,000.00 All Residents and Rate
Payers
Decrease rate from
15% down to 8% Through 2025
Unhoused Individuals N/A Fully Funded until
2025
Business
Econo
mic
Recovery
Busi
ness Gift
Voucher Match 2,250,000.00$ 300 Eligible small
businesses each year
$5,000 match year 1;
then $2,500 match
year 2
2-year
$25 bi-monthly 3 - years
Ser
vices for
Unhoused
Steps 4
Life $ 126,750.00 Unhoused Individuals Not to exceed $30,000 per fiscal year
51 months (April
2022-June 2026)
Homeless Sol.
Coordinator 323,250.00$
Progra
m Details
As
sistance to
Households
Gr
ocery Gift Card
Program 2,024,400.00$ 1687 Households $100 Monthly 12 months Utility Bill
Assistance 450,300.00$
1,002 households 1st
year;
1,000 households
each
years 2 & 3
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City Council Meeting J. 3.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Presentation of the City of Redlands Strategic Plan for FY 22-23 through FY 27-28 and consideration of Resolution No.
8315 (Assistant City Manager McConnell)
MOTION:
Should the City Council concur with staff's recommendation, the following motion is provided.
I move to approve Resolution No. 8315.
RECOMMENDATION:
Staff recommends the City Council approve Resolution No. 8315 adopting the City's Strategic Plan for FY 22-23 through FY 27-28.
DISCUSSION:
Representing the City's Strategic Planning consultants, Ms. Michelle Kennedy of BerryDunn will present the City's proposed Strategic Plan for FY 22-23 through FY 27-28. The proposed Strategic Plan resulted from a collaborative process that engaged our community. The City invited our residents and businesses to let us know how we are doing, to share their ideas and to envision the future of Redlands. Through our consultants, the City reached out and met with a wide array of community stakeholders, including residents, community organizations and service clubs, business groups, educators, faith-based communities and churches, minority groups, youth organizations, labor groups as well as our own advisory boards and commissions and City staff.
In December 2021, the City Council was presented with the information gathered through the community engagement process and honed in on the vision and goals for the City and guided this effort to outline a mission, a vision, core values and strategic priorities. Subsequently, a strategic planning workshop
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was held with the City's management team to develop objectives in support of the City Council's strategic priorities. The Strategic Plan is a living document that will focus the City's energy and resources, ensure that City officials and staff are working toward common goals, establish consensus around intended outcomes and allow us to regularly assess and adjust the organization’s direction in a changing environment.
SUBMITTED BY:
Janice McConnell, Assistant City Manager
RECOMMENDED BY:
Charles M. Duggan, Jr, City Manager
REVIEWED BY:
Daniel J. McHugh, City Attorney
Attachments
1. Resolution No. 8315
2. Strategic Plan
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1 C:\Users\bclUser\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@A008AC8A\@[email protected] RESOLUTION NO. 8315
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
ADOPTING THE REDLANDS STRATEGIC PLAN
FOR FY 22-23 through FY 27-28
BE IT RESOLVED, by the City Council of the City of Redlands as follows:
Section 1. The Redlands Strategic Plan for FY 22-23 through FY 27-28 attached hereto as Exhibit “A” is hereby adopted by the City Council.
ADOPTED, SIGNED AND APPROVED this 15th day of March, 2022. ________________________
Paul T. Barich, Mayor
ATTEST:
______________________________
Jeanne Donaldson, City Clerk
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2 C:\Users\bclUser\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@A008AC8A\@[email protected] I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at a regular meeting thereof held on the 15th day of March, 2022 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Jeanne Donaldson, City Clerk
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3 C:\Users\bclUser\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@A008AC8A\@[email protected] Exhibit “A”
Redlands Strategic Plan for FY 22-23 through FY 27-28
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REDLANDS
City of
STRATEGIC PLAN
FY 22 – 23 through FY 27 – 28
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REDLANDS
2 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
TABLE OF CONTENTS
Mayor’s Message 3
City C
ouncil
3 L
etter from the City Manager
4 Mis
sion, Vision and Values
5 Multi-
Year Strategic Priorities
6 Priority A: Quality of Lif
e
7 Priority B: P
ublic Health and Safety
11 Priority C: E
quity and Inclusion
16 Priority D: Sus
tainability
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REDLANDS
3 MAYOR’S MESSAGE
The City of Redlands, its elected officials, its management team and its employees take seriously the stewardship entrusted to us for the City’s resources along with the City’s rich history and the promise of a bright future.
This strategic plan is an essential tool in understanding who we are, who we want to be and – importantly – how we get there! But a plan alone won’t get us anywhere. It is only a starting point. Its success depends on all of us working together – City Council, City staff and our residents – to implement the plan, report and evaluate its progress and make the adjustments necessary to continue moving the City of Redlands forward.
I want to thank my City Council colleagues for their thoughtful vision for our future and City Manager Charlie Duggan and the Executive Team, as well as the consultants from BerryDunn for taking that vision and creating this living document.
And I want to thank you, the residents, for participating and sharing your dreams and aspirations for what Our Town is and all that we can be.
Sincerely,
Mayor Paul Barich
City Council
The City Council is dedicated to responding to the changing needs in our community and to ensuring that Redlands remains a distinctive place in which to live and work. The City of Redlands is a general law city incorporated in 1888. It is governed by the City Council/City Manager form of government.
The City Council consists of five representatives chosen by district by the electorate. The Mayor and Mayor Pro Tempore are then elected by the Council. The Mayor and Council set policy, enact legislation, and adopt the budget under which the city operates. The City Manager, appointed by the Council, is the chief administrator of the City.
E
ddie Tejeda
Denise Da
vis
Jenna Guzman-L
owery
Mick G
allagher
MA
YOR PRO TEM
C
OUNCIL MEMBER
C
OUNCIL MEMBER
C
OUNCIL MEMBER
Paul Barich
MAYOR
Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
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REDLANDS
Dear Citizens of Redlands
I am proud to present the City of Redlands six-year Strategic Plan for FY 2022-23 through FY 2027-28. More than a blueprint for City oper- ations, this Strategic Plan is an aspirational endeavor for the future of Redlands and a framework for achieving our vision for the community:
“a connected, conscientious, safe community with a small town feel in which all people and businesses can thrive.”
While your City government continues with a clear focus on delivering excellent service each and every day, this document represents our commitment to work at a higher level of operation to expand and achieve Redlands’ full potential.
This Strategic Plan resulted from a collaborative process that engaged our community. We invited you, our residents and businesses, to let us know how we are doing, to share your ideas and to envision the future of Redlands. We reached out and met with a wide array of community stakeholders, including residents, community organizations and service clubs, business groups, educators, faith-based communities and churches, minority groups, youth organizations, labor groups as well as our own advisory boards and commissions and City staff.
We took what we learned from all of you and presented those findings to our City Council, who honed in on the vision and goals for the City and guided this effort to outline a mission, a vision, core values and strategic priorities. This plan is a living document that will focus our energy and resources, ensure that City officials and staff are working toward common goals, establish consensus around intended outcomes and allow us to regularly assess and adjust the organization’s direction in a changing environment.
I would like to thank Mayor Barich and the City Council for their support and leadership in this process.
I would also like to recognize the members of the City’s Executive Leadership Team for their thoughtful and conscientious contributions to this plan. Finally, I would like to recognize our steering committee and our partners at BerryDunn who participated in countless meetings and approached the project with diligence and seriousness of purpose and a healthy dose of good humor.
In Redlands, we realize that by stretching ourselves we reach new levels of excellence. We also realize that striving to be perfect, although unachievable, can still be a useful target which prompts us to ask “What are we doing on our journey toward perfection?” This plan represents the next step on that journey.
Sincerely,
Charles M. Duggan, Jr.
4 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
LETTER FROM THE CITY MANAGER
Charles M. Duggan Jr.
CITY MANAGER
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REDLANDS
5 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
MISSION, VISION AND VALUES
Redlands City Values
Vision
“In Redlands, we envision a connected,
conscientious, safe community with
a small town feel in which all
people and businesses can thrive.”
Mission
“Providing superior services to elevate
the quality of life, to cultivate community
and encourage a thriving economy
while preparing for the future.”
We strive for excellence and are innovative
We aim to deliver the best service possible
and measure quality outcomes and results.
We strive to exceed expectations and to
bring out the best in each other.
We are flexible and adapt to the
ever-changing needs of our community.
We seek traditional as well as non-traditional
solutions and embrace creativity.
We are fiscally responsible
We take seriously financial stability and our
stewardship in carefully managing and
constantly ensuring the best use of all
public funds and other resources.
We seek sustainability
We pursue sustainability as the key
to optimal use of all resources.
We measure progress through improvement
to the health and well-being of our residents,
environment, and local economy.
We are responsive
As public servants we exist to serve
Redlands citizens and to exceed expectations.
That is and should always be our constant focus.
We listen, are empathetic and
take appropriate action.
We pursue good and timely solutions,
and are alert to modifying strategies in
response to unintended consequences.
We are fair, honest, and act with integrity
We align our values, words and actions.
We are honorable, trustworthy and sincere.
We consistently go not just beyond the
legal minimum to do what is right, but strive
for the highest moral and ethical behavior.
We are accountable and make
sound decisions based on clear rationale
We take responsibility for
our decisions and actions.
We are accountable to our community
and to each other so that future generations
will have as many opportunities available
to them as we do today.
We encourage and practice servant leadership.
We treat everyone with respect
We acknowledge the dignity of every employee,
citizen, resident, and visitor in our City.
We work actively to eliminate barriers
to full participation in community life.
We conduct City business with
courtesy, civility, and respect.
We embrace diversity and inclusiveness
We value the strengths that result from
varied experiences, ideas and perspectives.
Our collective histories, both employee
and citizen, and natural setting create the
fabric that makes Redlands a
special place to live, work, and play.
We communicate openly,
clearly and frequently
We seek shared understanding with our
community and across City organizations.
We are engaged and our interactions
are meaningful.
We engage in participatory governance
and transparent processes.
We strive to create a culture of collaboration
that encourages innovation, sharing of resources,
and jointly shared accountability for results.
We take pleasure in the work we do
While maintaining a professional environment,
we recognize the importance of building and
maintaining an enjoyable workplace that
will attract and retain employees.
We value a sense of humor and remember
not to take ourselves too seriously.
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REDLANDS
6 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
MULTI-YEAR STRATEGIC PRIORITIES
A. Quality of Lif e
Ensur e Redlands continues to be a vibrant community that honors its heritage and pr
ovides a broad range of opportunities to live, work and play.
B Public Health and Saf ety
Enhanc e services and programs so that all community members are safe, sheltered and ha
ve access to Redlands’ core services.
C E quity and Inclusion
Cultiv ate wide-ranging community engagement and a work force that strives to ensur
e everyone in the community has access to City services and facilities.
D Sustainability
Pr eserve and protect what makes Redlands special by maintaining core services, infr
astructure and community values.
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PRIORITY A
7 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
QUALITY OF LIFE
Current State
Redlands is imbued with a cultural richness that comes from its historical background, its social diversity, an active contemporary art scene and a varied business community that consists of retail, entertainment, manufacturing, health care, education, technology and logistics. The City’s physical setting, iconic architecture and citrus heritage have all contributed to the community’s development in ways that are evident in its historic districts, characteristic structures and neighborhoods, its greenbelt and working private and municipal citrus groves. The community’s long tradition of celebrating arts and culture remains strong through its festivals— such as the Redlands Bowl Summer Music Festival, Redlands Theatre Festival and Redlands Art Festival—and the eclectic public art that documents its history of agriculture, commerce, architecture, creativity and civic pride.
Redlands’ unique pride of place is exemplified by the many philanthropic contributions to the community including the A. K. Smiley Public Library, the Redlands Bowl, Heritage Park, Lincoln Memorial Shrine and many others. Redlanders also take pride in their community and the distinct neighborhoods that define the City. Redlands’ history remains strongly visible in the form of mature street trees, citrus groves and exquisitely detailed historic buildings. Many Redlands residents feel strongly about preserving the community’s rich agricultural heritage and architectural character. There are some physical challenges to unity in the city: sections of the community are divided by Interstate 10 and Highway 210, which contributes both in fact and in perception to a lingering north/south division with roots in historic cultural, racial, ethnic and economic factors. With the City’s active civic cultures, residents are interested in creating more opportunities to nurture a stronger and more cohesive community, embracing diversity and social interaction, and ensuring that a physical and cultural environment with ample gathering places and community-wide events exists to foster these qualities. Residents want to embrace the qualities that make their neighborhoods special—including landmarks, art, cultural events, gathering places, activity centers, as well as the size, scale, and architectural features of buildings—in order to preserve and strengthen their identities. Community members seek stronger linkages between neighborhoods to ensure that no part of the community feels isolated or neglected and that the entire City is connected as a whole.
Redlands provides opportunities to promote the health of its residents with its park and trail system, its recreational areas, and community centers that help promote active lifestyles for residents of diverse ages and abilities. The Redlands community takes advantage of these features to organize events such as A Run Through Redlands, the Redlands Bicycle Classic and the Believe Walk that provide opportunities to enjoy the outdoors and socialize with fellow residents.
The City has charted a path of fiscal responsibility while expanding services to its residents. It has embraced technology to improve efficiency in delivering those services. The diversity of Redlands’ business community has made the economy more resilient in the face of downturns. The City boasts a vibrant Downtown, which provides retail, services, restaurants, entertainment, arts and civic spaces in the heart of the community. Our vibrant business community provides opportunities for work in addition to play.
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PRIORITY A
8 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
QUALITY OF LIFE
Future State
Redlands recognizes the importance of preserving our community’s rich agricultural heritage and architectural character. The City is committed to the preservation of our historic citrus groves.
We continue to protect and value our historic districts, distinctive neighborhoods and the philanthropic contributions throughout our community. Redlanders believe in nurturing a stronger and more cohesive community that embraces diversity and social interactions. The City has enhanced community-wide events that reflect Redlands’ diversity and shifting demographics. Redlands is a cohesive and connected community that surpasses physical barriers. The community is unified and provides opportunities that consider all cultural, racial and socio-economic factors in order to provide access and opportunities to our diverse residents and businesses. Redlands’ improved parks and open spaces provide accessible opportunities for everyone in the community to enjoy trails, parks and an active, healthy lifestyle.
Our business community is vibrant, diverse and resilient and provides opportunities for residents to live and work right here in Redlands.
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PRIORITY A
9 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
QUALITY OF LIFE
Ensure Redlands continues to be a vibrant community that honors its heritage and provides a broad range of opportunities to live, work and play.
Strategic Objectives
1. Beautifica tion, Arts and Culture
•
Enhanc
e community events to better reflect Redlands’ diversity and demographics. •
Cr
eate a strategic vision for the arts within the community.
•
Ensur
e that the Redlands Bowl remains a vibrant cultural centerpiece for the City
b
y updating and modernizing Bowl facilities.
•
Enhanc
e the Art in Public Places Program.
2. Economic Vitality
•
Implement electr
onic plan review and permitting process.
•
Incr
ease accessibility to businesses and essential services through improvements
t
o mobility and parking.
•
Implement policies and pr
ograms to expand the City’s affordable housing opportunities. •
Enc
ourage redevelopment efforts in the transit corridor (i.e. University Village and mall site).
3. His toric Preservation and Small Town Feel
•
A
dopt Historic Design Guidelines to assist property owners with improvements
t
o historic resources.
•
Expand his
toric surveys to include areas that were not previously surveyed and
pr
operties with historically eligible buildings built in the 1950s and 1960s. •
Pr
omote the City’s historic preservation programs through new user-friendly
educa
tional materials.
4. P arks, Recreation and Open Space
•
De
velop an assessment and improvement plan for City parks and open spaces
tha
t includes adherence to industry standards.
•
Pr
omote awareness of recreational opportunities through a Citywide recreation newsletter. •
Enhanc
e recreational program opportunities
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PRIORITY A
10 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
QUALITY OF LIFE
Outcome Measure Examples
• Seek and support thr ee new community events that reflect Redlands’ diverse community. •
A
dopt an Arts Master Plan.
•
R
edlands Bowl
–
Ins
tall new sound and lighting system.
–
R
eplace bench seating.
–
A
esthetically improve the Prosellis.
•
Fund an art-on-loan pr
ogram to complete the installation of art pieces at the designa
ted locations within the City.
•
Electr
onic Plan Review and Permitting processes implemented.
•
R
educe time frames for plan review by 30%.
•
Incr
eased accessibility to businesses and essential services through improvements t
o mobility and parking.
•
Implementa
tion of a wayfinding sign program to direct the public to parking facilities t
o increase utilization of available parking lots and garages, with a goal of increasing oc
cupancy of underused lots/garages by 50%.
•
A
dopt strategies to promote development of affordable housing units, which may include f
ee waivers, density bonuses, inclusionary housing requirements, and streamlining of Accessory Dw
elling Unit (ADU) construction, with the goal of adopting three new strategies and/or programs. •
W
ork with developers to secure entitlements to redevelop the 12 acre Redlands Mall site and the 16 acr
e University Village site south of the University of Redlands campus, to provide new c
ommercial and residential opportunities that support the community and local economy. •
Incr
eased community satisfaction with the City’s parks and open spaces, as measured periodically thr
ough a citizen survey.
•
R
ecreational program offers expanded by 25%.
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PRIORITY B
11 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
PUBLIC HEALTH AND SAFETY
Current State
The City of Redlands is a full-service City that, in addition to providing police and fire services, operates its own water and wastewater utilities, cemetery, airport, landfill and solid waste services.
For more than 90 years, the City of Redlands has been in charge of providing high quality drinking water to more than 75,000 local residents. By supplying a blend of local groundwater, local surface water, and imported water from the State Water Project, Redlands Municipal Utilities & Engineering Department is able to meet the daily demands of these customers.
As Southern California often faces the challenges of prolonged droughts that strain water supplies, improving water conservation is becoming more important. The City of Redlands maintains a robust Water Conservation effort that includes non-potable water systems, commercial and residential watering restrictions, conservation programs, drought tolerant landscaping and education programs.
The City’s Wastewater Treatment Plant, originally built in 1962, treats an average of six million gallons of wastewater daily. In the last 60 years, multiple upgrades to the existing infrastructure and new construction have taken place. In 2019 the City embarked on an assessment and developed a plan to implement immediate and long-term improvements to the plant. The current two-phase expansion project produces high-quality water at half the energy cost and will satisfy stringent air quality regulations and reduce the use of natural gas. The City is currently in a design phase for a project that will address additional required upgrades to all critical areas to keep up with regional growth. Over the next five years, the City of Redlands is slated to begin and complete upgrades to 12 treatment plant processes that will secure a sustainable and innovative approach to wastewater treatment.
The California Street Landfill is owned and operated by the City of Redlands. The County of San Bernardino began waste disposal operations at the site in 1963. In 1970, the City took possession of the site and continued waste disposal operation. In 2017, the City Council adopted a new solid waste rate structure, which included funding designated for capital improvement projects and the purchase of more efficient landfill equipment. Many routine alterations and additions to the landfill infrastructure and equipment have occurred throughout City ownership of the landfill; however, the recent rate adjustment provided the most significant positive impact on the landfill of the last 25 years. Landfill airspace, the amount of remaining space available for waste, is limited by the size of the site and its design. The more debris that is received, the faster that airspace is consumed.
Proactive measures by the City to improve the life expectancy of the landfill, including equipment upgrades and operational changes, have increased the usable capacity of the landfill by 42 percent, saved approximately $8.5 million in avoided soil purchase import costs over the life of the landfill, and provided annual savings in equipment and operator costs of $63,000 annually. In 2012, the City received a report indicating that the landfill would reach its capacity in the year 2042. With the recent improvements, the life of the landfill has been extended another 11 years to 2053. Improvements to the California Street Landfill ensure that this valuable asset will continue to serve Redlands residents for many more years.
The City has met and exceeded all required state mandates outlined in SB1383. The City of Redlands began offering food waste collection for commercial businesses in 2016 and a voluntary drop-off program for residential customers in September 2021.
Over the next few years significant improvements are planned to the landfill collection and control systems that will accommodate new and existing environmental regulations.
New residents to Redlands often cite safety as one of their primary reasons for moving to Redlands and longtime residents say it is one of the reasons they stay. The City’s police and fire services are exemplary and enjoy tremendous support from the community. Under local control, the community is ensured that its public safety services focus on the priorities of the community and remain dedicated to local service.
In recent years, the City dedicated funding to modernizing and upgrading both Police and Fire vehicles and equipment. The City has identified the need for new public safety facilities. Currently the Police Department operates out of multiple locations, each of them inadequate to the department’s needs.
The City is in the process of purchasing an existing commercial site that will be converted to a modern Police facility. The City is also exploring plans for new Fire stations, strategically located throughout the City to address the growth in population and both residential and commercial/retail buildings.
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PRIORITY B
12 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
PUBLIC HEALTH AND SAFETY
In 2021, the annual Point-In-Time-Count of unsheltered individuals identified Redlands as the City with the third highest population of individuals experiencing homelessness in San Bernardino County. The issue of homelessness is a multifaceted problem that affects the individuals involved as well as other residents, visitors and local businesses. For many years, the City has addressed the issue with limited resources including dedicated police teams and partnerships with social service agencies and non-profits to provide resources and services to the homeless while addressing the concerns of businesses and residents. A Homeless Emergency Aid Program (HEAP) grant provided for two Community Outreach Coordinators and additional resources until the grant ended in March 2021.
Periodically the City partners with other agencies to perform cleanups of multiple encampments on state and county land. None of these efforts addressed the scale of the problem facing the City and those individuals affected. In November 2021 the City Council approved an MOU with two non-profits and a joint application to participate in the Homekey Grant Program. If successful, the City will convert an existing 99-unit hotel into permanent supportive housing for families and individuals experiencing homelessness that incorporates an all-inclusive model framework of wrap-around support provided by local partner agencies.
Future State
Redlands remains committed to providing safety, shelter and excellent core services to the residents and businesses in our community. Our city recognizes that in order to provide excellent core services, sustainability and water conservation must continue to be a priority. We have completed upgrades to 12 water treatment plant processes to secure sustainable and innovative ways to treat wastewater.
Our City has also invested in more efficient landfill equipment that allows us to continue to increase capacity at the California Street Landfill. These efficiencies have enabled Redlands to continually extend the life expectancy of the site and increase landfill airspace. Significant improvements to the landfill’s collection and control systems have also been completed. With these improvements, Redlands is proud to be able to meet all new and existing environmental regulations. We are also proud of our continued excellence in public safety services to our community. Our Police Department is now housed in a modern facility that allows our officers to better respond to and support the community. We have also focused on locating fire stations throughout our growing community. Our firefighters are now better equipped to more quickly respond to calls throughout the City. Our community is not only even safer, but more sheltered. The success of the Homekey Grant Program allows Redlands to provide shelter and wrap-around services to families and individuals experiencing homelessness.
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PRIORITY B
13 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
PUBLIC HEALTH AND SAFETY
Enhance services and programs so that all community members are safe, sheltered and have access to Redlands’ core services.
Strategic Objectives
1. W ater/Wastewater/Solid Waste
• C
omplete Wastewater Treatment Plant Phase 2 Project Construction. •
R
educe non-revenue water (water loss) by 25%.
•
C
omplete California Landfill flair upgrade project to ensure facility compliance.
2. Police
•
C
omplete steps to prepare for construction of a police station. •
R
educe public safety response times by 10%.
•
E
valuate public safety workforce to determine if staffing levels are consistent with
popula
tion growth. Develop a plan for workforce growth based upon results.
3. Fire
•
Complete process for the construction of additional fire stations which will maintain critical
r
esponse times based on the distribution and concentration of resources and ensure that service
le
vels are being maintained based on call volume impacts, community growth and development •
Provide additional emergency response personnel to ensure an effective response force is
maintained t
o meet City development and population growth.
•
Determine current and projected administrative staffing needs. Develop and implement
adminis
trative growth based upon findings.
4. Homelessness
•
De
velop and implement a method by which to measure the success of the Homeless Housing Plan.
Outcome Measure Examples
• W astewater Plant upgrades completed.
•
Impr
oved police response time to emergency calls for service. •
P
olice staffing plan developed.
•
S
teps for construction of new public safety facilities are identified •
L
ocations for additional fire stations identified and procured. •
Fir
e staffing plan developed.
•
S
teps for construction of additional fire stations identified. •
Method de
veloped to measure success of the Homeless Housing Plan
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PRIORITY C
14 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
EQUITY AND INCLUSION
Current State
The City of Redlands Communications and Community Relations Office provides outreach through various methods and platforms to provide information regarding City operations, programs and events to all segments of the community. Current communication methods include a variety of social media platforms and pages that combine to reach more than 27,000 followers; the City’s website, which saw more than 690,000 individual visits in 2021 alone; Redlands TV government access channel which, in addition to televising City Council and Planning Commission meetings, produces videos in house regarding a wide variety of City programs and functions as well as a community bulletin board; and a variety of periodic publications and outreach efforts to inform the public about individual department operations. The Communications and Community Relations Office also provides frequent information to a variety of local and regional media.
The City of Redlands Human Resources Division develops and administers programs designed to increase the effectiveness of staff and the organization. Human Resources staff facilitates the recruitment and selection, development and retention of individuals to promote a talented, diverse and inclusive workforce with the goal of representing the community we serve. Currently, the City recruits through various electronic means and websites that reach a large group of individuals. The City has implemented training on gender identity, inclusion and bias for all new employees and recognizes the need to increase the education of our workforce to ensure equity and inclusivity. Our current workforce demographics are 49.3% White, 32.1% Hispanic, 2.4% Black, and 2.18% Asian, with the remaining personnel listed as other or undisclosed. Additional efforts are needed to help bring the overall workforce in line with the demographics of our surrounding area. The City is implementing policies and practices that reflect a con- scious effort to ensure equity of access and services and further ensure the equitable treatment of all people.
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PRIORITY C
15 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
EQUITY AND INCLUSION
Future State
The City of Redlands recognizes the importance of community engagement with Redlands stakeholders to ensure the City’s initiatives are properly communicated to them. Moreover, the City recognizes the importance stakeholders play in the development of these initiatives to ensure the City’s vision aligns with the vision of the community. It is only through this collaboration that stakeholders can ensure the City is not only hearing the needs and wants of the community, but also that the City is implementing policies that promote the Redlands where they desire to live and work. In order to increase outreach to a greater segment of the community, the Communications and Community Relations Office has implemented a strategic communications and engagement plan that serves as a guide for the City in its pursuit of forward thinking initiatives and explains what Redlands stakeholders can expect from the City.
It establishes the structure for communication and engagement of stakeholders in the development of initiatives and identifies strategies for seeking out involvement and establishing measureable goals to de- termine the success of the City’s collaborative efforts with stakeholders. Finally, it serves as a living tool for community engagement that may be followed in the development of any City goal, objective or initiative.
The City of Redlands understands the importance of providing an environment where diversity, equity and inclusion are key considerations in the recruitment and retention of a talented workforce that reflects the community it serves and brings a variety of perspectives to citywide decision making. Continually implementing policies and procedures that provide access and equity for applicants, residents and staff is imperative in maintaining the representation of the workforce. Job descriptions, personnel rules and regulations, and recruitment strategies are reviewed regularly and evaluated to determine bias or adverse impact. The City engages in targeted recruitments to increase the diversity of our applicant pools and ensure that the workforce reflects the demographics of the City’s population. The City’s workforce is trained regularly on topics specific to equality, bias, gender identity, harassment and inclusion.
This training provides a culture that is focused on valuing employees and providing an environment where different perspectives can be shared openly. The City engages in workforce strategies that include initiatives to create a diverse and inclusive workplace in a sustainable way.
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PRIORITY C
16 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
EQUITY AND INCLUSION
Cultivate wide-ranging community engagement and a work force that strives to ensure everyone in the community has access to city services and facilities.
Strategic Objectives
1. C ommunication and Engagement
•
E
valuate alternative and/or additional means of communication to help ensure all parts
of the c
ommunity have the opportunity to receive, understand and participate in City life. •
De
velop centralized messaging, outreach and awareness campaigns that focus on identifying
and r
eaching all residents within the community.
2. Workforce
•
Pr
ovide diversity, equity and inclusion (DEI) training for all City staff. •
R
ecruit, hire and train a diverse and inclusive workforce that represents the community.
Outcome Measure Examples
• De velop and implement a Communications Plan by December 31, 2022. •
Method established to measure effectiveness of City’s communication methodology t
o provide baseline for improvement in future years.
•
100% of City s
taff receive initial DEI training by December 31, 2023. •
C
omprehensive employee training plan developed.
•
Es
tablish baseline metrics for current staffing demographics in comparison to community. •
Identify gaps or areas of focus for future recruiting, hiring and training. –
De
velop plan to address the identified gaps.
•
Incr
eased diversity of City workforce.
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PRIORITY D
17 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
SUSTAINABILITY
Current State
A sustainable city is one that ensures a livable environment for its residents over the long term through thoughtful stewardship of its resources, including financial resources.
For more than a decade following the Great Recession of 2008 the City of Redlands worked diligently to implement sustainable fiscal and financial policies, including consistently balanced budgets, based on recurring revenue sources and sound management, focusing on core services and capital needs, building healthy reserves and reducing debt.
In the spring of 2020, the COVID-19 pandemic created not only a public health crisis but a financial crisis for local governments. Working essentially in emergency-response mode to prevent the spread of COVID-19 while also providing municipal services in pandemic conditions, the City of Redlands drastically reduced its budget and staffing levels in response to the impact COVID had on its revenue streams and the impact it had on taxpayers. By June of 2021 when the City Council approved the Fiscal Year 2021-2022 budget, however, the City’s fiscal picture was quite different. Revenues began approaching pre-pandemic levels and Redlands voters approved a one-cent sales tax. The City began restoring staffing levels and resources in areas such as Police, Fire, Library and Facilities.
Additionally, the City not only restored previous cuts, it also enhanced services in the areas of public safety and general infrastructure needs.
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PRIORITY D
18 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
SUSTAINABILITY
Future State
The budgeting process is one of the most important activities a City undertakes. In order to align the City’s resources with the future vision for the community, the City developed a Biennial Budgeting process that links objectives to the resources necessary to accomplish them, sets meaningful objectives with realistic timelines for completion and incorporates a multifaceted approach toward developing the strategic vision for Redlands, including this Six-Year Strategic Plan and regular Citizen Satisfaction Surveys. The City continues to consider the long-term extent of the economic impact resulting from the COVID-19 pandemic and the effects of CalPERS investment earnings/losses and potential policy changes they would have on future pension costs. The revenues from Measure T, post-pandemic economic gains and the strategic planning process have positioned the City to provide the services and programs valued by the community.
The City understands the need to be a competitive employer and maintain a sustainable workforce to ensure its future success. The City provides an environment where employees feel engaged and encouraged and have opportunities for growth. The City’s onboarding program for new employees begins that engagement from day one. The year-long onboarding program is centered on acclimating new employees to their roles and the City’s culture, giving employees a sense of belonging and commitment to the City and increasing retention. As part of the City’s efforts to maintain its workforce and develop a succession plan, the City has created a focus on training and professional development for staff that increases engagement of employees at all levels, improves employee skill levels, enables career progression and results in employees who stay longer with the City and minimizes the institutional knowledge loss when long-term employees transition out of the organization.
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PRIORITY D
19 Redlands Strategic Plan
FY 22 – 23 through FY 27 - 28
SUSTAINABILITY
Preserve and protect what makes Redlands special by
maintaining core services, infrastructure and community values.
Strategic Objectives
1. Fiscal
•
De
velop a Long-Term Financial Plan that sustains core services and programs
and helps prioritiz
e funding for new initiatives.
2. Environmental
•
Expand the non-potable w
ater system
•
De
velop a landscape ordinance to provide guidelines for commercial and residential
pr
operties to include drought tolerant or water conservation landscaping measures.
3. Infrastructure
•
De
velop and implement Water and Wastewater Utility Master Plans to ensure facilities
ar
e improved and maintained to meet the needs of our expanding community
•
Engineer and c
onstruct transportation facilities to accommodate all potential users –
mot
orists, cyclists and pedestrians
•
De
velop a facilities capital improvement program to ensure that adequate funding
is planned f
or industry standard maintenance.
4. Workforce
•
Cr
eate an onboarding plan for new employees.
•
Cr
eate an employee retention plan that addresses career development and
mid-car
eer development.
•
Cr
eate a succession plan that addresses knowledge transfer.
5. Climate Change
•
Explor
e City initiatives to address the effect of climate change.
Outcome Measure Examples
• L ong-Term Finance Plan developed.
•
F
our additional miles of nonpotable water system constructed by December 31, 2024. •
W
ater and Wastewater Utility Master Plans developed and implemented •
Landscape Or
dinance adopted by December 31, 2023.
•
F
acilities capital improvement program developed.
•
Onboar
ding program developed and implemented for new employees by January 2023. •
Emplo
yee Retention and Succession Plan Developed and Implemented by December 31, 2024. •
C
omprehensive climate change briefing delivered to the City Council by December 2023.
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We strive for excellence
and are innovative
We are fiscally responsible
We seek sustainability
We are responsive
We are fair, honest, and
act with integrity
We are accountable and
make sound decisions
based on clear rationale
We treat everyone with respect
We embrace diversity
and inclusiveness
We communicate openly,
clearly and frequently
We take pleasure
in the work we do
Redlands City Values
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City Council Meeting J. 4.
DATE: 03/15/2022
TO: Honorable Mayor and City Council Members
SUBJECT: Receive and file the Annual Report from the Measure T Citizens' Oversight Committee for FY 2020-21 (Management
Services/Finance Director Garcia)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to receive and file the annual report from the Measure T Citizens' Oversight Committee for FY 2020-21.
RECOMMENDATION:
Staff recommends that Council receive and file the annual report from the Measure T Citizens' Oversight Committee for FY 2020-21.
DISCUSSION:
For this evening's City Council meeting, Chairwoman Toni Momberger will be presenting the annual report of the Measure T Citizens' Oversight Committee for FY 2020-21.
ALTERNATIVES:
N/A
STRATEGIC PLAN:
N/A
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SUBMITTED BY:
Danielle Garcia, Management Services/Finance Director
REVIEWED BY:
Charles M. Duggan Jr., City Manager
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Fiscal Impact
Discussion:
N/A
Attachments
Annual Report - Measure T - FY 2020-21
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