Redlands City Council
March 21, 2023

CITY OF REDLANDS

CITY COUNCIL

A G E N D A
MARCH 21, 2023

EDDIE TEJEDA
Mayor
PAUL T. BARICH
Mayor Pro Tempore

DENISE DAVIS
Council Member
JENNA

GUZMAN-LOWERY
Council Member

MARIO SAUCEDO
Council Member
***

JEANNE DONALDSON
City Clerk

ROBERT DAWES
City Treasurer
CHARLES M. DUGGAN JR.

City Manager
YVETTE M. ABICH GARCIA
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
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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 21, 2023
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.

PLEASE NOTE: 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
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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.)
C. Recess City Council Meeting to a Closed Session

1. Conference with legal counsel: Existing Litigation - Government Code §54956.9(d)(1) (City Attorney Garcia)
Three Cases:

City of Redlands v. Coyote Aviation, Inc., San Bernardino Superior Court, Case No.

LLTVA2200544
a.

Allen v. City of Redlands, San Bernardino Superior Court, Case No. CIVDS1908766b.

Alvarado-Salcido v. City of Redlands, et al., San Bernardino Superior Court, Case No.

CIVSB2218452
c.

2. Conference with real property negotiators - Government Code §54956.8 (Assistant City Manager Boatman)
Property:  204 E. Redlands Blvd (APN 0171-071-08-0000); 180 Ninth Street (APN 0171-088-06-0000, APN 0171-088-07-0000); 160 Ninth Street (APN 0171-088-05-0000)
Agency
Negotiators:

Charles M. Duggan, Jr. City Manager; Chris Boatman, Assistant City Manager Negotiating
Party:

Lance Lenhert, Redlands Community Investment Group
Under
Negotiation:

Terms of payment and price of possible purchase of property by City Recycled Paper
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6:00 P.M.

D. Reconvene City Council Meeting
E. Invocation by Council Member Saucedo - 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. Proclamation declaring March 31, 2023 as Cesar E. Chavez Day in the City of Redlands presented to Jerry Coyazo, and the Hispanic Caucus Teamster Local No. 1932 H. Public Comment - 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 the regular meeting minutes of March 7, 2023, and the special meeting minutes of March 13, 2023 (City Clerk Donaldson)

2. Authorize issuance of a proclamation declaring March 31, 2023, as Cesar E. Chavez Day (Mayor Tejeda)

3. Approve recommendation for appointment to the Street Tree Committee (Mayor Tejeda)

4. Approve recommendation for an appointment to the Airport Advisory Board (Mayor Tejeda and Councilmember Saucedo)

5. Adopt Ordinance No. 2956 - (Second Reading) - Adding Chapter 10.70 to the Redlands Municipal Code to Prohibit Non-Electric Vehicles from Parking in Designated Electric Vehicle Charging Spots (Interim Police Chief Tolber)

6. Approve the Inter-Agency Instruction Services Agreement with the San Bernardino Community College District for Fire Service Instruction Training by the Redlands Fire Department at the Crafton Hills College site for a five-year term beginning July 1, 2023, to June 30, 2028 (Fire Chief Sessler)

7. Adopt Resolution No. 8450 - A request for the City Council to declare its intention to vacate a Recycled Paper
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7. Adopt Resolution No. 8450 - A request for the City Council to declare its intention to vacate a portion of Reservoir Road, consisting of approximately 1,317 linear feet of public right-of-way, adjacent to the frontage of the vacant parcel located at the northwest corner of Reservoir Road and Wabash Avenue (APN: 0174-281-13-0000) as submitted by property owner Terracina Recovery, LLC. The proposed vacation of public right-of-way is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines Development Services Director Desatnik)

8. Approve Amendment No. 1 to the Cooperative Agreement with the County of San Bernardino for paving rehabilitation work  and determination that 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)

9. Accept the 2020 Homeland Security Grant Program Funding award in the amount of $21,209 for the purchase of mobile radios and authorize an additional appropriation for the same (Fire Chief Sessler)

10. Adopt Resolution No. 8432 to receive an annual report of City of Redlands surplus lands; and determine that approval of the Resolution 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)

11. Approve a request for in-kind support in the amount of $92,524 related to the Redlands Bicycle Classic event hosted by the Redlands Bicycle Classic Inc. to be held on April 14, 2023, through April 16, 2023; authorize temporary street closures related to the event; authorize the sale and consumption of alcoholic beverages at the event; and determine that the sale and consumption of alcoholic beverages at the event is categorically 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)

12. Approve the Memoranda of Understanding between HumanGood and the City of Redlands to provide preference for homeless elderly for certain units at Casa de la Vista and Fern Lodge Senior apartments within the City of Redlands (Assistant City Manager Boatman) J. Communications

1. Annual Report of the Library Board of Trustees by William Hatfield (Library Director McCue)

2. Receive and file the Annual Report from the Measure T Citizens' Oversight Committee for FY 2021-22 (Management Services/Finance Director Garcia)

3. National Mayors Challenge for Water Conservation (Municipal Utilities and Engineering Director Harris)
K. New Business

1. Consideration of a Purchase and Sale Agreement with Cathy Macknet, Mark Macknet, and Kenneth Macknet for the acquisition of APN 0300-451-13-0000, APN 0300-451-14-0000, APN 0300-451-24-0000, and 0300-451-25-0000 for $1,400,000, authorization for the Mayor to execute the contract documents, and determination that this action is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris)

2. Consideration and adoption of Resolution No. 8439 amending the Display Policy for the United Recycled Paper
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2. Consideration and adoption of Resolution No. 8439 amending the Display Policy for the United States, State, Local and Other Flags to Authorize the Flying of the Rainbow Pride Flag at City Hall in the Month of June (City Attorney Abich Garcia)

3. Consideration of Ordinance No. 2922: AN ORDINANCE OF THE CITY OF REDLANDS ADDING CHAPTER 12.45 AND AMENDING CHAPTER 12.44 TO THE REDLANDS MUNICIPAL CODE TO ESTABLISH REGULATIONS GOVERNING SIDEWALK VENDING and a determination that the Ordinance 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)

4. Discussion and possible action relating to the Redlands Downtown Market (Assistant City Manager Boatman)
L. Individual Council Member Announcements and/or Reports on Activities (No collective discussion or action.)
M. Adjournment
The next regular meeting of the City Council will be held on April 4, 2023 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 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-broadcast at 7:00 P.M. the following Wednesday, Friday and Sunday; and at 9:00 A.M. Thursday, Saturday and Monday. Meetings are also streamed live and archived for later viewing on demand on the City’s website at www.cityofredlands.org
. Agendas, staff reports and minutes of the City Council of the City of Redlands are available online at: www.cityofredlands.org.

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City Council Meeting I. 1.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the regular meeting minutes of March 7, 2023, and the special meeting minutes of March 13, 2023 (City Clerk Donaldson) MOTION:

I move to approve the regular meeting minutes of March 7, 2023, and the special meeting minutes of March 13, 2023.

Attachments
Regular meeting minutes of March 7, 2023
Special meeting minutes of March 13, 2023
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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 7, 2023 at 5:00 P.M.

Present:  Eddie Tejeda, Mayor
Paul Barich, Mayor Pro Tempore
Denise Davis, Council Member
Jenna Guzman-Lowery, Council Member
Mario Saucedo, Council Member
Staff: Charles M. Duggan, Jr., City Manager; Yvette M. Abich Garcia, City Attorney; Jeanne Donaldson, City Clerk; Janice McConnell, Assistant City Manager; Chris Boatman, Assistant City Manager; Carl Baker, Public Information Officer; Danielle Garcia, Management Services/Finance Director; Brian Desatnik, Development Services Director; John Harris, Municipal Utilities and Engineering Director; Rich Sessler, Fire Chief; Rachel Tolber, Interim Police Chief

Mayor Tejeda called the meeting to order and explained that comments could be presented in-person, via Zoom, via cell phone or landline, and he offered the public an opportunity to provide comment on any item on the agenda for the closed session. City Attorney Abich Garcia announced Item A-1 should be removed from the agenda because Council Member Saucedo was able to attend the meeting in person tonight instead of attending remotely under AB 2449 "Just Cause".

PUBLIC COMMENT

None forthcoming

CLOSED SESSION

Conference with legal counsel: Existing Litigation - Government Code §54956.9(d)(1) (City Attorney Garcia)
Allen v. City of Redlands, San Bernardino Superior Court, Case No. CIVDS1908766a.

RECONVENE CITY COUNCIL MEETING

The meeting reconvened at 6:00 P.M. with an invocation by Council Member Guzman-Lowery. The pledge of allegiance to the American flag was presented by Mentone Elementary School students.

City Attorney Abich Garcia announced that Council Member Saucedo had planned to attend the meeting remotely under the AB 2449 "Just Cause", but due to a change in plans, he attended the meeting in person.

CLOSED SESSION REPORT
CC_SA_March 7, 2023

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CLOSED SESSION REPORT

City Attorney Abich Garcia announced that no reportable action was taken during the closed session.

PRESENTATIONS

Redlands Pet Adoption
Animal Services Supervisor Jodi Kroeger and Animal Services Officer Kaitlyn Giroux introduced "Iris", a two-year-old female Siberian Husky mix, who is available for adoption, along with thirty-eight other dogs and eight cats at the Redlands Animal Shelter. Ms. Kroeger informed the Council there had been fifteen dogs and seven cats adopted in February 2023.

PUBLIC COMMENT

No Parking Signs & Morning Market - Dennis Bell wondered who authorized non-city personnel to post "no parking" signs related to the Run Through Redlands event, and he was disappointed with the attendance for the Morning Market reintroduction held last Saturday.

Teamsters Support - Fourteen City employees including, Eric Breazil, Steven Lujan, Phillip Buyak, Lawrence Amardor, Dave Gianinni, Gabriel Jimenez, Jonathan Martinez, Jared Adams, Nick Quintana, Miguel Gomez, Samantha Bortoli, Gabriel Cortez, Elizabeth Wright and Shannon Simmers briefly introduced themselves to the City Council, explaining they proudly represented the Teamsters Local 1932 Redlands Chapter. Council Members expressed their appreciation and support of all the City Teamsters and what they do for this community.

CONSENT CALENDAR

Minutes

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously approved, by roll call vote, the regular meeting minutes of February 21, 2023, and the special meeting minutes of February 22, 2023.

Vote: 5 - 0 Passed

Proclamation Women's History Month

Mayor Tejeda introduced the Proclamation declaring the month of March 2023 as Women's History Month and each Council Member provided their strong support of this important event. As public comment, Peter Hall and Joshua David Hall voiced opposition to the proclamation, suggesting that to be fair, the City should declare a Men's History Month, and they said that society was trying to erase gender, so they weren't clear who the proclamation was celebrating.

On motion of Mayor Eddie Tejeda, seconded by Council Member Jenna Guzman-Lowery, the CC_SA_March 7, 2023

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On motion of Mayor Eddie Tejeda, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously approved, by roll call vote, the issuance of a proclamation declaring the month of March 2023 as Women's History Month.

Vote: 5 - 0 Passed

Proclamation Hero of the Arts Award Dave and Robin Maupin

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously approved, by roll call vote, the issuance of a proclamation honoring Dave and Robin Maupin on their Hero of the Arts Award.

Vote: 5 - 0 Passed

Resolution No. 8446 Statement of Investment Policy

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously approved, by roll call vote, Resolution No. 8446 establishing a Statement of Investment Policy and Rescinding Resolution No. 8309.

Vote: 5 - 0 Passed

Resolution No. 8447 Investment Authority

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously approved, by roll call vote, Resolution No. 8447 delegating investment authority to the City Treasurer pursuant to Government Code Section 53607.

Vote: 5 - 0 Passed

Amending Michael Baker International Agreement

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously approved, by roll call vote, the Third Amendment to the Professional Services Agreement with Michael Baker International, Inc. increasing the existing agreement from $299,990 by $100,000 for a total aggregate amount not-to-exceed $399,990 for professional planning, environmental, and development review services, extending the end-term of the agreement from March 31, 2023, to June 30, 2024; and approved an additional appropriation in the amount of $50,000.

Vote: 5 - 0 Passed

CC_SA_March 7, 2023

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Resolution No. 8444 Street Vacation No. 182

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously approved, by roll call vote, Resolution No. 8444 for Street Vacation No. 182, for summary vacation of excess public alley right-of-way that is 15 feet wide and approximately 354 feet in length located adjacent to 26849 Barton Road and 26863 Ladera Street (APNs: 0293-082-12-0000, 0293-082-13-0000, 0293-082-14-0000, 0293-082-15-0000, and 0293-082-05-0000), (Joseph E. Bonadiman, Applicant). This proposal is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines.

Vote: 5 - 0 Passed

Resolution No. 8448 Four-Way Stop Intersection

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously approved, by roll call vote, Resolution No. 8448 establishing a four-way stop intersection to replace the current two-way stop at the Kansas Street/State Street intersection; and determined that approval of the resolution is exempt from environmental review pursuant to Section 15301(c) of the State's guidelines implementing the California Environmental Quality Act.

Vote: 5 - 0 Passed

MOU Salt and Nutrient Management Plan & Feasibility Study

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously determined, by roll call vote, that approval of the Salt and Nutrient Management Plan Memorandum of Understanding and Funding Agreement is exempt from environmental review pursuant to Section 15378 of the state's guidelines implementing the California Environmental Quality Act; approved the Salt and Nutrient Management Plan Memorandum of Understanding and Funding Agreement with San Bernardino Valley Municipal Water District, East Valley Water District, and San Bernardino Municipal Water Department; appointed the City Manager or his designee as the City's representative; and approved an additional appropriation in an amount not-to-exceed $117,000 for this project.

Vote: 5 - 0 Passed

Omnitrans Pass Distributor Sales Agreement

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously determined, by roll call vote, that approval of the Pass Distributor Sales Agreement with Omnitrans for the distribution of transit passes to senior citizens 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 Pass Distributor Sales Agreement with Omnitrans for the distribution of transit passes to senior citizens.

Vote: 5 - 0 Passed

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Request to Consume Alcohol at Israel Beal Park

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously determined, by roll call vote, that approval of the request for the consumption of alcoholic beverages within a City park during Kobi Fletcher's Wedding 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 consumption of alcoholic beverages at Kobi Fletcher's Wedding to be held on March 17, 2023.

Vote: 5 - 0 Passed

Police Vehicle Equipment

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously authorized, by roll call vote, the sole source purchase of equipment from West Coast Lights and Sirens to outfit 25 police vehicles for an amount not to exceed $177,046.80.

Vote: 5 - 0 Passed

Art Piece Donation

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously authorized, by roll call vote, to accept the donation of the painted steel art piece Peloton Takes the Curve, from and by artist Kathleen King-Page; and directed staff to install the sculpture in Simonds Parkway.

Vote: 5 - 0 Passed

COMMUNICATIONS

Municipal Utilities/Public Works Commission Annual Report

Commissioner Adekunle Ojo presented the Annual Report of the Municipal Utilities/Public Works Commission, adding it was a very busy year for the Commission. Accomplishments included project review of Pavement Management Program, WWTP Improvement – Phase 1B Completed, Water Systems & Wastewater System Master Plan Updates, Groundwater Well & Booster Pump Rehabilitation, Waterline Replacement, Wastewater Replacement & Slip-Lining, Water System SCADA Expansion, Citywide Water Meter Replacement and Sidewalk/ADA Ramp Replacement. He highlighted a few of the goals planned for next year, including, Transition to WWTP Improvement Project – Phase 2, Implement Utility Planning Document Project recommendations and continued review of Groundwater Well Rehabilitation Project.

Cultural Arts Commission Annual Report

Vice Chair Daniel Gohman provided the Annual Report of the Cultural Arts CC_SA_March 7, 2023

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Vice Chair Daniel Gohman provided the Annual Report of the Cultural Arts Commission, reviewing the Commission's Mission and Initiatives, which included efforts to promote public interest in the Arts, recommending new art programs, recommending policies to encourage, develop, and support the Arts in Redlands and advising the Council on the City's Art in Public Places program. Art initiatives and special projects include murals, public art, Art on Loan program, public & private developments, meetings with the planning, parks and recreation commissions, collaborating with local non-profits to increase cultural arts in Redlands, presentation to Redlands Art Association and collaborating with RUSD and Redlands University. One project under consideration was to establish an art gallery at the new City Hall to increase access to the arts, and he said the Commission desired to increase the number of murals located on the north side of town to promote a deeper sense of community.

Parks and Recreation Advisory Commission Annual Report

Commissioner Justin Weekley presented the Annual Report of the Parks and Recreation Advisory Commission, highlighting activities and accomplishments for the year. These included a thorough review and reimagining of the Morning Market program, continued oversight of the Joslyn Senior Center Rehabilitation project, field allocations for spring and fall and onsite park tours to develop a list of recommendations for improving the parks. Looking ahead, he said the Commission was exploring installing a BMX pump track, considering adding murals within the Community Center and was excited to work with the Cultural Arts Commission to develop a mural project at the skate park.

Resolution No. 8451 City Council Dress Standards

Mayor Tejeda opened the discussion regarding Resolution No. 8451, relating to the dress standards for City Council and explained that currently there were no formal policies or regulations governing attire. City Attorney Abich Garcia clarified the decision to establish standards was within the Council's discretion to approve, but she added that standards can be difficult to enforce. As public comment, Rudi Whitmore and Jenn Kim were opposed to establishing a dress code, thought it unnecessary and stated that what an elected official chooses to wear has no bearing on their leadership abilities. Dennis Bell said this discussion was a waste of the Council's time. Kenneth Ford pointed out that what people wear can play a role in how they are perceived by others. A lengthy dialogue provided an opportunity for Council Members to offer their thoughts and perspectives concerning dress standards in general and it was agreed there was no need to take action on this matter. They determined that what each one chose to wear was completely their own decision.

On motion of Mayor Eddie Tejeda, seconded by Council Member Denise Davis, the City Council unanimously agreed, by roll call vote, to take no action on Resolution No. 8451 related to the Dress Standards for City Council.

Vote: 5 - 0 Passed

NEW BUSINESS

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Ordinance No. 2956 Non-Electric Vehicle Parking Prohibitions

Interim Chief Tolber reviewed Ordinance No. 2956 adding Chapter 10.70 to the Redlands Municipal Code to Prohibit Non-Electric Vehicles from Parking in Designated Electric Vehicle Charging Spots. Since the opening of the parking garage located at 250 W. Stuart Avenue, there has been an increasing problem with non-electric vehicles parking in designated charging spaces for electric vehicles. The City does not currently have a municipal code to enforce this issue, and with the increase in electric vehicle charging stations, it is necessary to have a municipal code that can be used to enforce this violation. As public comment, Andrew Hartzell supported the new regulations.

On motion of Mayor Eddie Tejeda, seconded by Mayor Pro Tempore Paul Barich, the City Council unanimously introduced, by roll call vote, Ordinance No. 2956 adding Chapter 10.70 to the Redlands Municipal Code to prohibit non-electric vehicles from parking in designated electric vehicle charging spots.

Vote: 5 - 0 Passed

Redlands Animal Shelter Response to Grand Jury Report

Assistant City Manager Boatman provided background of the City's written response to the findings and recommendations included in the County of San Bernardino's Civil Grand Jury Report issued on December 16, 2022, regarding the Redlands Animal Shelter. In 2022, the San Bernardino Civil Grand Jury initiated an investigation of the Redlands Animal Shelter and as part of their investigation, Grand Jury members visited the Animal Shelter on July 1, 2022, and August 12, 2022. On December 16, 2022, the San Bernardino Civil Grand Jury issued its report regarding the Redlands Animal Shelter. The City is required to submit a written response, approved by City Council at a public meeting, within 90 days, with the final submission due by March 16, 2023.

On motion of Council Member Jenna Guzman-Lowery, seconded by Mayor Pro Tempore Paul Barich, the City Council unanimously approved, by roll call vote, the written response to the County of San Bernardino's Civil Grand Jury Report issued on December 16, 2022, regarding the Redlands Animal Shelter; authorized the Mayor and City Manager to execute the response; and directed staff to submit by March 16, 2023, as required by Penal Code Section 933.05.

Vote: 5 - 0 Passed

Lugonia Citrus Grove Replanting

Assistant City Manager Boatman detailed an Agreement with Mariposa Landscapes, Inc. for an irrigation system installation, and replanting of Lugonia Citrus Grove and the removal of the existing citrus trees with Washburn Grove Management and a purchase order with Gless Ranch Nursery for the purchase of 2,500 Washington Navel orange trees. The Redlands Fire Department identified one acre of Lugonia Grove as an ideal location for a future Fire Station located at the corner of Lugonia Avenue and Judson Street, as a way to reduce response times.

The Citrus Preservation Commission recommended reserving approximately 1 acre of Lugonia CC_SA_March 7, 2023

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Grove for use as a future fire station site and in exchange, the city would identify 1 acre within existing grove properties to supplant the lost acreage. Council Member Saucedo supported the proposal to locate a future fire station in this area, and he and Mayor Tejeda stressed the importance of informing the neighborhood and the general public so they will fully understand the timing of the project.

On motion of Council Member Mario Saucedo, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously determined, by roll call vote, that the project is categorically exempt from environmental review in accordance with Section 15304 of the State's guidelines implementing the California Environmental Quality Act; approved an Agreement with Mariposa Landscapes, Inc. for the installation of a new irrigation system and replanting of Lugonia Citrus Grove for an amount not to exceed $105,100; approved a sole source purchase order with Washburn Grove Management for the removal of the existing citrus trees at Lugonia Grove for an amount not to exceed $59,400; approved a sole source purchase order with Gless Ranch Nursery for the purchase of 2,500 Washington Navel orange trees for an amount not to exceed $42,500; and approved the additional appropriation and re-allocation of funds from the Agricultural Open Space-Acquisition/Conservation Easement category of the Nevada Palmetto Grove sale proceeds in the amount of $227,700.

Vote: 5 - 0 Passed

Contract Award Prospect Park Lighting Upgrades Project

Assistant City Manager Boatman discussed the Public Works Contract with VT Electric, Inc. for an amount not-to-exceed $471,975 for the Prospect Park Lighting Upgrades Project. The Friends of Prospect Park (FOPP) generously provided funding for this project through a monetary donation to the City in the amount of $363,000. The FOPP stated, "this project will replace the existing obsolete and inoperable lighting with a modern energy-efficient lighting system. The new system will substantially enhance the safety of the park and will greatly enhance the aesthetic of the park while saving the city approximately 30% of the current operating costs". As public comment, Andrew Hartzell, of FOPP, was pleased to deliver a check to the City in the amount of $363,000 that is earmarked for the improvements. Richard O'Donnell thought that Measure T funds should be utilized to fund the project and not the FOPP donation. He said the donation would be better suited for park enhancements and not basic infrastructure needs.

On motion of Council Member Jenna Guzman-Lowery, seconded by Mayor Pro Tempore Paul Barich, the City Council unanimously determined, by roll call vote, that approval of the public works contract with VT Electric, Inc. for the Prospect Park Lighting Upgrades Project is exempt from environmental review pursuant to Section 15303(d) of the State's guidelines implementing the California Environmental Quality Act; accepted the monetary donation in the amount of $363,000 from the Friends of Prospect Park for construction of the project and approved an additional appropriation of the same; designated $156,172.50 from the Unappropriated Funds within the Parks and Recreation category of the Nevada Palmetto Grove Proceeds to the Prospect Park Lighting Upgrades Project and appropriated $519,172.50 as detailed in the staff report; and approved an award of the public works construction contract to VT Electric, Inc. in the amount of $471,975.00 for the Prospect Park Lighting Upgrades Project No. FCS11012022JN.

Vote: 5 - 0 Passed

COUNCIL MEMBER ANNOUNCEMENTS AND ACTIVITIES
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COUNCIL MEMBER ANNOUNCEMENTS AND ACTIVITIES

Council Member Saucedo reported he participated in putting together boxes of dry goods and food to help those trapped in the local mountain communities. He stressed the critical need for updating disaster preparedness plans to be better prepared for all emergencies.

ADJOURNMENT

There being no further action required the meeting adjourned at 8:21 P.M. The next regular meeting of the City of Redlands City Council will be held on March 21, 2023.

SUCCESSOR AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF

REDLANDS

Chairman Tejeda 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.

PUBLIC COMMENT

None forthcoming

CONSENT CALENDAR

Minutes

On motion of Board Member Davis, seconded by Chairman Tejeda, the minutes of the regular meeting of February 7, 2023 were unanimously approved by roll call vote.

Vote:  5 - 0 Passed

Resolution No. 493 Delegating Investment Authority

On motion of Board Member Davis, seconded by Chairman Tejeda, Resolution No. 493, delegating investment authority to the City Treasurer pursuant to Government Code Section 53607, was unanimously approved by roll call vote.

Vote:  5 - 0 Passed

ADJOURNMENT

There being no further business, the Successor Agency Board of Directors' meeting was adjourned at 8:22 P.M. The next regular meeting of the Agency will be held on April 4, 2023.

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MINUTES

Special meeting of the City Council of the City of Redlands held in the Council Chambers, Civic Center, 35 Cajon Street, on March 13, 2023 at 6:00 P.M.

Present:  Eddie Tejeda, Mayor
Paul Barich, Mayor Pro Tempore
Jenna Guzman-Lowery, Council Member
Mario Saucedo, Council Member

Absent: Denise Davis, Council Member
Staff: Charles M. Duggan, Jr., City Manager; Yvette M. Abich Garcia, City Attorney; Jeanne Donaldson, City Clerk; Janice McConnell, Assistant City Manager; Chris Boatman, Assistant City Manager; Carl Baker, Public Information Officer; Danielle Garcia, Management Services/Finance Director; Brian Desatnik, Development Services Director; John Harris, Municipal Utilities and Engineering Director; Rich Sessler, Fire Chief; Rachel Tolber, Interim Police Chief

Mayor Tejeda called the meeting to order at 6:00 P.M. 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 subject within the jurisdiction of the City Council which is not already scheduled on this agenda.

PUBLIC COMMENT
None forthcoming

NEW BUSINESS

Reading of City Ordinances

City Attorney Garcia provided background on Senate Bill 1489, entitled, “Local Government Omnibus Act of 2022”. SB 1489 was signed into law by the Governor and became effective January 1, 2023. The new law amends Government Code Section 36934 by providing for an exception to the general rule that ordinances be read in full or by title. Prior to Senate Bill 1489, city ordinances were required to be read in full either at the time of introduction or passage, except when, after reading the title, further reading is waived by regular motion adopted by a majority vote of the legislative body.

A legislative body may dispense with reading an ordinance in full or by title provided the full title of the ordinance is included on the published agenda; and a copy of the full text of the Ordinance is made available to the public online and in print at the meeting prior to the introduction or passage.

On motion of Council Member Jenna Guzman-Lowery, seconded by Mayor Pro Tempore Special CC_March 13, 2023

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On motion of Council Member Jenna Guzman-Lowery, seconded by Mayor Pro Tempore Paul Barich, the City Council authorized, by roll call vote, the implementation of the changes to the City procedure for the reading of city ordinances consistent with Government Code Section 36934 as amended by Senate Bill 1489, which would no longer require the reading of the text or the full title of a city ordinance provided: 1) the full title of the ordinance is included on the published agenda; and 2) a copy of the full text of the ordinance is made available to the public online and in print at the meeting prior to the introduction or passage.

Vote: 4 - 0 Passed

Ralph M. Brown Act Workshop

City Attorney Garcia presented an overview of the Ralph M. Brown Act, including its purpose, to ensure that meetings of decision-making bodies of local agencies are conducted in public, with the advance posting of an agenda stating the matters to be discussed by the body, and which allows members of the public to participate during the meeting. The Brown Act applies to Legislative Bodies of Local Agencies, Commissions, Boards and Committees created by Ordinance/State Law and Standing Committees (i.e., Budget Subcommittee). A quorum for the Redlands City Council was three Members, even if there was a vacancy. She defined "Meeting" to explain it may occur if a quorum of the City Council congregates at the same time and place to discuss or develop a collective concurrent on any matter of city business or occur by any use of direct communication including text, email, zoom, or with any use of social media utilized by a quorum. The subject matter was broad and represented any matter of city business or potential city business.

She discussed exemptions to the Brown Act and explained that it does not apply to less than a quorum, meetings of other agencies, conferences and seminars, ad hoc committees of short duration and limited scope and purely social events. Other Brown Act requirements include posting an agenda 72 hours before a regular meeting and 24 hours before a special meeting. The traditional rules for teleconferencing were contrasted with those of the new guidelines for teleconferencing under AB 2449. Other topic areas included "Just Cause", public comment, disruptive members of the public and Closed Session items. Several hypothetical situations were provided as an opportunity for the Council Members to interactively test their knowledge of the Brown Act and, in closing, each one expressed their appreciation of City Attorney Garcia's efforts in making the workshop very helpful and informative.

ADJOURNMENT
There being no further action the special meeting adjourned at 7:10 P.M.

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City Council Meeting I. 2.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Authorize issuance of a proclamation declaring March 31, 2023, as Cesar E. Chavez Day (Mayor Tejeda)
MOTION:

I move to authorize the issuance of a proclamation declaring March 31, 2023, as Cesar E. Chavez Day.

Attachments
Proclamation - Cesar E. Chavez Day 2023
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City Council Meeting I. 3.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Approve recommendation for appointment to the Street Tree Committee (Mayor Tejeda)
MOTION:

I move to appoint Katherine Vienne to serve the remainder of a four-year term on the Street Tree Committee ending February 16, 2027.

RECOMMENDATION:

It is recommended by Mayor Tejeda that the City Council consider this appointment to the Street Tree Committee.

DISCUSSION:

Committee Member Lorraine Enriquez resigned from the Street Tree Committee. Mayor Tejeda is recommending the appointment of Katherine Vienn to fill the vacancy. In February, the City issued a public notice soliciting applications for the Street Tree Committee. The public notice was concurrently aired on Redlands TV and posted on the community bulletin board at the A. K.

Smiley Public Library. The local newspapers also received distribution of the public notice. A total of four applications were received.

The Street Tree Committee consists of seven members as follows:

Vacant
Kelly Covey
Adrian Asencion
Christine Sedmack
Paul Hodson
Bettina McLeod
Jessica Barrios
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SUBMITTED BY:

Janice McConnell, Assistant City Manager
REVIEWED BY:

Charles M. Duggan, Jr., City Manager
PREPARED BY:

Jennifer Macias, Management Analyst
Attachments
Street Tree Notice
Street Tree Committee Applications
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City Council Meeting I. 4.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Approve recommendation for an appointment to the Airport Advisory Board (Mayor Tejeda and Councilmember Saucedo) MOTION:

I move to appoint Dennis Nodine to serve the remainder of a four-year term on the Airport Advisory Board ending May 1, 2025.

RECOMMENDATION:

Pursuant to the Redlands Municipal Code, appointments to this board are made by the Mayor and approved by the City Council. However, Mayor Tejeda has expressed his desire to rotate recommendations for commission/board appointments among the City Council members. Councilmember Saucedo has been delegated authority by Mayor Tejeda to make the recommendation for this appointment. It is recommended by Mayor Tejeda and Councilmember Saucedo that Denise Nodine serve the remainder of a four-year term on the Airport Advisory Board ending May 1, 2025.

DISCUSSION:

Airport Advisory Board member James Douglas Pickens resigned from the board before the expiration of his term. In January, the City issued a public notice soliciting applications for the Airport Advisory Board. The public notice was concurrently aired on Redlands TV and posted on the community bulletin board at the A. K. Smiley Public Library. The local newspapers also received distribution of the public notice. Two new applications were received and five applications from a previous posting were included for consideration. After reviewing all applications, Dennis Nodine is recommended to serve the remainder of the four-year term ending on May 1, 2025.

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The Airport Advisory Board consists of seven members as follows:

Karl Grove
Jason Golumbeski
Thomas Cook
Nathan Freeman
Robert Pearce
Vacant
Deborah Forthun
ALTERNATIVE:

The City Council may choose not to support the recommendation and direct staff to seek further applications for consideration.

SUBMITTED BY:

Janice McConnell, Assistant City Manager
REVIEWED BY:

Charles M. Duggan, Jr., City Manager
PREPARED BY:

Jennifer Macias, Management Analyst
Attachments
Airport Advisory Notice
Airport Advisory Applications
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City Council Meeting I. 5.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Adopt Ordinance No. 2956 - (Second Reading) - Adding Chapter

10.70 to the Redlands Municipal Code to Prohibit Non-Electric Vehicles from Parking in Designated Electric Vehicle Charging Spots (Interim Police Chief Tolber)
MOTION(S):

If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:

I move to adopt Ordinance No. 2956.

RECOMMENDATION:

It is recommended the City Council consider adoption of Ordinance No. 2956 adding Chapter 10.70 to the Redlands Municipal Code to Prohibit Non-Electric Vehicles from Parking in Designated Electric Vehicle Charging Spots.

DISCUSSION:

The proposed ordinance and staff report prepared for the introduction of this ordinance are available in the City Clerk's office.

ALTERNATIVES:

The Council may continue this matter in order to allow additional time to review Ordinance No. 2956.

STRATEGIC PLAN:

Not Applicable
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SUBMITTED BY:

Jeanne Donaldson, City Clerk
RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
PREPARED BY:

Jeanne Donaldson, City Clerk
Fiscal Impact
Discussion:

Codification: $22/per page affected by the change
Legal Publication: $275
Attachments
Ordinance No. 2956 EV Charging
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City Council Meeting I. 6.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the Inter-Agency Instruction Services Agreement with the San Bernardino Community College District for Fire Service Instruction Training by the Redlands Fire Department at the Crafton Hills College site for a five-year term beginning July 1, 2023, to June 30, 2028 (Fire Chief Sessler)
MOTION(S):

If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:

I move to approve the Inter-Agency Instruction Services Agreement with the San Bernardino Community College District for Fire Service Instruction Training by the Redlands Fire Department at the Crafton Hills College site for a five-year term beginning July 1, 2023.

RECOMMENDATION:

Staff recommends approving the Inter-Agency Instruction Services Agreement with the San Bernardino Community College District for Fire Service Instruction Training by the Redlands Fire Department at the Crafton Hills College site for a five-year term beginning July 1, 2023, to June 30, 2028.

DISCUSSION:

On April 3, 2018, the City Council approved an Inter-Agency Instruction Agreement for fire instructional service training at the Crafton Hills College site for a five-year term with San Bernardino Community College District (SBCCD).

The term of the existing agreement will end on June 30, 2023. In an effort to continue to provide additional funding resources for the City of Redlands Fire Department Training Division, the Redlands Fire Department would like to renew the contractual agreement with the SBCCD.

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The training program is well established and used by numerous fire departments in the Southern California area. Under the terms of the agreement, SBCCD will reimburse the City of Redlands at the hourly rate of $3.50 per student. The Redlands Fire Department will document all contract hours, and reimbursement will be within 45 days.

ALTERNATIVES:

The City Council may elect not to approve the renewal of the Inter-Agency Instruction Services Agreement with San Bernardino Community College District.

STRATEGIC PLAN:

Not applicable.

SUBMITTED BY:

Rich Sessler, Fire Chief
RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:

Bruni Reyes, Management Analyst
Fiscal Impact
Fiscal Year: 2023
Revenue Generating: Y
Budgeted Y/N: N
Account No.: 101250
Discussion:

Initial revenues are estimated at $25,000, which will offset the cost of enrollment and processing fees for each student. We anticipate significantly increased revenues due to our on-site ability to meet the demand for training.

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Attachments
Instructional Services Agreement
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MASTER INSTRUCTIONAL SERVICE AGREEMENT

This Master Instructional Service Agreement ( “Agreement”) is made and entered into this 21st day of March , 2023, by and between San Bernardino Community College District for Crafton Hills College site, hereafter referred to as (SBCCD), and City of Redlands, for Redlands Fire Department, hereafter referred to as (CITY).

WITNESSETH
WHEREAS, SBCCD is authorized by the Cali fornia Education Code (“Education Code”) and Title 5 of the California Code of Regulations (“Title 5”), to conduct Contract Instruction, Assessment and Counseling Services to serve community needs; and

WHEREAS, CITY desires to contract with SBCCD to prov ide educational services to its in-service personnel as set forth herein; and

WHEREAS, the parties mutually desire cooperation of the parties to provide quality instruction and training to meet community needs, as set forth herein.

AGREEMENT

Now, Therefore, in consideration of the foregoing and of the covenants, conditions, and promises hereinafter contained to be kept and performed by the respective parties, SBCCD and CITY mutually agree as follows:

Section 1. RESPONSIBILITIES OF SBCCD
a. SBCCD shall offer approved courses to meet educational needs and requirements of the Redlands Fire Department’s (CITY’s) in -service personnel (all class participants are in -service fire personnel and shall hereafter be referred to as “students”), as specified by CITY.

b. SBCCD shall provide a coordinator to work with CITY. Said coordinator shall act as the CITY co -director for all SBCCD affiliated educational courses. Under no circumstances, however, shall the coordinator have authority over the remaining operatio ns of CITY, including but not limited to, personnel issues concerning CITY employees, operational budget, or the use, maintenance, or scheduling of CITY facilities.

c. SBCCD and CITY will mutually ensure ancillary and support services are provided for the stu dents. (e.g. Counseling, Guidance, & Placement Assistance).

d. SBCCD shall assist the CITY in registration and other support services to students in order to adequately manage and control its course offerings.

e. SBCCD shall approve of the selection of instructors and facilitators and Redlands Regular Meeting of 03/21/2023
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evaluate the quality of instruction to ensure that it meets the needs of the students and the accreditation requirements of SBCCD. SBCCD shall have the primary right to control and direct the instructional activities of all instructors.

f. SBCCD shall ensure that course offerings meet all appropriate requirements of the Education Code and Title 5.

g. SBCCD shall consult the CITY on any revisions to existing SBCCD courses designed for the CITY program, initi ation of new courses, or any other changes, in order to ensure the quality of educational services and to meet the needs of the CITY.

h. SBCCD shall provide the use of its facilities and equipment free of charge for use by the CITY, on an as -needed, space ava ilable, basis for affiliated programs. SBCCD shall attempt to provide use of said facilities and equipment during normal business hours.

i. SBCCD shall demonstrate control and direction through such actions as:
providing the instructor of record an orientatio n, instructor's manual, Title 5 course outlines, curriculum materials, testing and grading procedures and any other materials and services it would provide its hourly instructors on campus.

j. SBCCD shall waive the health fee for all CITY students.

k. By signin g this Agreement, SBCCD certifies it does not receive full compensation for direct education costs of the course from any public or private agency, individual or group.

l. SBCCD has the primary right and responsibility to control and direct the activities of the person or persons furnished by CITY during the term of the Agreement.

Section 2. RESPONSIBILITIES OF CITY

a. CITY shall provide classroom space for use as off -campus sites by SBCCD, free of charge for affiliated programs. CITY shall make a good faith effort to schedule use of said facilities during normal business hours.

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SBCCD's affiliated educational programs.

c. CITY shall cooperate with SBCCD to ensure all personnel, equipment, and materials used in carrying out its responsibilities under this Agreement conform to Education Code and Title 5 mandated standards governing instructional prog rams, including minimum qualifications for instructors.

d. CITY shall consider the funds received as compensation for services under this Agreement for educational and training related purposes as they relate to fire and public safety training programs.

e. CITY shall assist SBCCD in collecting all instructional fees associated with the class offerings under this Agreement.

f. Records of student attendance and achievement shall be maintained by CITY.

Records will be open for review at all times by officials of the college and submitted on a schedule developed by SBCCD.

g. By signing this Agreement, CITY certifies the training facil ity is open to the public and the instructional activities agreed upon herein will not be fully funded by other sources.

Section 3. PAYMENT FOR SERVICES
a. In consideration of the services provided herein, SBCCD shall pay CITY $3.50 per student instructional hour eligible for state general apportionment.

b. For Fiscal Year 2023/2024 (for purposes of this Agreement, "Fiscal Year" begins July 1st and ends June 30th), said hours shall not exceed 20,000 Student Instructional Hours or 38 Full Time Equivalent Students (FTES), unless mutually agreed prior to May 1, 2024. The same limits shall apply in each subsequent fiscal year, unless otherwise agreed in writing by the parties.

c. Any subsequent year's student instructional hour cap shall be determined at least sixty (60) days prior to the start of the next fiscal year.

d. CITY shall submit to SBCCD an invoice of all mutually agreed upon instructional hours provided under this Agreement. SBCCD shall pay CITY the agreed contract price within 45 days. The registration fees for courses under this contract will be deducted from the total amount of said invoice.

SBCCD shall consider this payment for the registration fees and CITY shall consider the contracted price, minus the registration fees, as payment in full.

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e. Instructional hours are defined as those hours reported on SCCCD's CCFS- 320, California Community Colleges Apportionment Attendance Reports, which are subject to audit by SCCCD's independent auditor and the California Community Colleges Chancellor's Office.

Section 4. INDEMNIFICATION
a. CITY shall indemnify, hold harmless and defend SBCCD, and each of its officers, officials, agents, and volunteers from and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by CITY, SBCCD or any other person, and from any and all claims, demands and actions in law or equity (including attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly from the negligent or intentional acts or omissions of CITY or any of its officers, official s, employees, agents or volunteers in the performance of this Agreement; provided nothing herein shall constitute a waiver by CITY of governmental immunities including California Government Code Section 810 et seq.

b. SBCCD shall indemnify, hold harmless and defend CITY and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injur y, death at any time and property damage) incurred by the CITY, SBCCD or any other person, and from any and all claims, demands and actions in law or equity (including attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly from the negligent or intentional acts or omissions of SBCCD or any of its officers, officials, employees, agents or volunteers in the performance of this Agreement; provided nothing herein shall constitute a waiver by SBCCD of governmental immu nities including California Government Code Section 810 et seq.

c. In the event of concurrent negligence on the part of SBCCD or any of its officers, officials, employees, agents or volunteers, and CITY or any of its officers, officials, employees, agents or volunteers, the liability for any and all such claims, demands and actions in law or equity for such losses, fines, penalties, forfeitu res, costs and damages shall be apportioned under the State of California's theory of comparative negligence as presently established or as may be modified hereafter.

d. This section shall survive expiration or termination of this Agreement.

Section 5. INSURANCE
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necessary to protect itself against injuries and damages arising from the acts or omissions caused b y each party, their respective elected and appointed officials, Boards, officers, employees and agents in the performance of this Agreement. This insurance requirement may be satisfied through a program of self- insurance, or insurance coverage afforded to public entities through a Joint Powers Authority (JPA) risk pool.

Section 6. MISCELLANEOUS PROVISIONS
a. If any provisions of this Agreement are found to be, or become, contrary to applicable law or regulations, or court decisions, SBCCD and CITY agree that the Agreement shall be renegotiated as it relates to said provision, and the remainder of the Agreement shall remain in full force and effect.

b. Term and Termination. The term of this Agreement shall start on effective date of July 1, 2023, and expire on June 30, 2028.

Notwithstanding the foregoing, this Agreement may be terminated at any time, with or without cause, upon written notice given to the other party at least thirty (30) days prior to the end of the term in which classes are currently in session. In the event of such termination, each party shall fully pay and discharge all obligations accruing to the other party up to and including the date of termination. Neither party shall incur any additional liability to the other by reason of such termination.

c. Either party hereto maintains the right to cancel services prior to the beginning of each course at no cost to either party to this Agreement.

d. Nondiscrimination. To the extent required by controlling federal, state and local law, the parties shall not employ discriminatory practices in the provision of services, course instruction, employment of personnel, or in any other respect on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, ethnicity, status as a disabled veteran or veteran of the Vietnam era.

e. This Agreement supersedes any and all other agreements, oral or written, between the parties hereto with respect to the use of the aforesaid facilities or services and con tains all covenants and agreements between the parties with respect hereto. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, oral or otherwise, have been made by any party, or by anyone acting on behal f of any parties, which are not embodied herein, and that no other agreement, statement, or promise not contained herein shall be valid or binding. Any modification to this Agreement shall be effective only if it is in writing and signed by the CITY and SBCCD in the form of an amendment to this Agreement.

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f. Compliance with Law. In providing the services required under this Agreement, SBCCD shall at all times comply with all applicable laws of the United States, the State of California and San Bernardino County, and with all applicable regulations promulgated by federal, state, regional, or local administrative and regulatory agencies, now in force and as they may be enacted, issued, or amended during the term of this Agreement.

g. Governing Law an d Venue. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California, and the County of San Bernardino excluding, however, any conflict of laws rule which would apply the law of another jurisdiction. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement and any rights and duties hereunder shall be San Bernardino County, California.

h. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

i. No Third Party Beneficiaries. The rights, interests, duties and obligations defined within this Agreement are intended for the specific parties hereto as identified in the preamble of this Agreement. Notwithstanding anything stated to the contrary in this Agreement, it is not intended that any rights or interests in this Agreement benefit or flow to the interest of any third parties.

j. Attorney's Fees. If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees and legal expenses.

k. Notice or correspondence required by this Agreement shall be delivered personally, FedEx, UPS or by United States mail as follows:

If to SBCCD:

San Bernardino Community College District
Steve Sutorus, Business Manager
550 E. Hospitality Lane Suite 200
San Bernardino, CA 92408,
909-388-6911
If to City of Redlands
Redlands Fire Department.

Rich Sessler, Fire Chief
35 Cajon St. Suite 12 (Physical)
P.O. Box 3005 (Mailing)
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Redlands, CA. 92373
909-798-7600

l. The specific courses covered under this Agreement are described in Attachment 1, which are incorporated herein by this reference.

m. In addition to the specific courses noted above, the parties may offer additional courses under this Agreement on the same terms and conditions. CITY shall provide SBCCD of any desire to add a class with a minimum of 40 days' notice to SBCCD before the desired class start date. Each additional course of instruction shall require a written agreement to offer the course signed by CITY’s Fire Chief or designee and the SBCCD Business Manager or designee.

The course details must be set forth in writing as with the courses listed above, and will become attachments to this Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this agreement:

San Bernardino Community College District

BY: Steven S. Sutorus, Business Manager

Date:

City of Redlands

BY: Eddie Tejeda, Mayor

BY: Jeanne Donaldson, City Clerk
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Attachment 1

Rope Rescue Operations
Truck Operations
Fire Hose Evolutions
Ground Ladder Evolutions
Recruit Orientation Academy
State Mandated EMS Curriculum – 24 Hour Minimum (Annually) EVOC (Emergency Vehicle Operator Course)
Confined Space Awareness
Hazard Material First Responder
Engine Company Operations
Wildland

NFPA:

1500 Occupational Safety

1561 Incident Command System

1584 Rehabilitation for Emergency Responders
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City Council Meeting I. 7.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Adopt Resolution No. 8450 - A request for the City Council to declare its intention to vacate a portion of Reservoir Road, consisting of approximately 1,317 linear feet of public right-of-way, adjacent to the frontage of the vacant parcel located at the northwest corner of Reservoir Road and Wabash Avenue (APN:
0174-281-13-0000) as submitted by property owner Terracina Recovery, LLC. The proposed vacation of public right-of-way is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines 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 Resolution No. 8450 for the Notice of Intention to Vacate a portion of Reservoir Road along the frontage of the vacant parcel located at the northwest corner of Reservoir Road and Wabash Avenue.

RECOMMENDATION:

On January 24, 2023, the Planning Commission reviewed the proposal and voted 6 to 0 (one member absent) to adopt Resolution No. 1611, to make a finding of conformity with the General Plan, and determined the proposal is consistent with the General Plan.

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DISCUSSION:

The applicant has filed an application to vacate a portion of public right-of-way approximately 1,317.5 linear feet of public right-of-way (of varying widths) along the property's frontage on Reservoir Road adjacent to the project site of the approved Tentative Tract Map No. 20320 (see Attachment A - Location Map).

The half-width of the existing street varies from approximately 33.32 feet to

82.29 feet (i.e., from street centerline to the property line of the subject property).

The proposal would reduce the half-width to 32 feet along the project site’s frontage on Reservoir Road. With this street vacation, the Reservoir Road right-of-way would be a total width of 64 feet. The legal description and associated exhibit showing the proposed vacation area is provided in Attachment B.

On January 24, 2023, the Redlands Planning Commission approved Tentative Tract Map No. 20320 (TTM 20320) and Conditional Use Permit (CUP) No. 1148 for the subject site along with additional surrounding parcels (APNs:
0299-213-11-0000, 0299-213-12-0000, 0299-213-13-0000, 0299-213-14-0000, and 0299-213-21-0000). TTM 20320 approved the subdivision of 64.56 acres into 67 single-family residential lots plus ten lettered lots for open space and recreation purposes. CUP No. 1148 approved a Planned Residential Development including site plan approval and architectural review for the construction of 67 single-family houses, associated open space and recreational amenities, and related on-site improvements for the project site. The design of the subdivision takes into account the Street Vacation as proposed.

General Plan Chapter 5, "Connected City," contains Figure 5-5 "Roadway Classifications" that designates Reservoir Road as a Collector Road, and the proposal would be consistent with this designation. A "Collector Road" has the important function of collecting traffic from residential and commercial areas and channeling it to arterials. Collector roads are two-lane roads with 64 feet dedicated to the right-of-way, and the proposal would be consistent with the General Plan. The surrounding land uses (primarily residential to the north and west) take their access further to the west of the project site from Reservoir Road, and would not be detrimentally affected by this Street Vacation.

The proposal to vacate is exempt from environmental review in accordance with the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State CEQA Guidelines for projects where there is no possibility of any significant environmental effects. Adoption of the resolution and vacation of public right-of-way will not result in any potentially significant environmental effects. The entirety of the residential development project was assessed under CEQA and a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program was adopted by the Planning Commission on January 24, 2023.

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City Council's adoption of the resolution for Notice of Intention to Vacate (Attachment C) will initiate all noticing requirements for the requested street vacation, as required by law, and set a public hearing date for the street vacation to be heard and acted upon at the regularly scheduled City Council meeting of April 4, 2023.

ALTERNATIVES:

The City Council may:

Continue the matter to allow for additional information;1.

Not adopt the Resolution.2.

STRATEGIC PLAN:

Not applicable.

SUBMITTED BY:

Brian Desatnik, Development Services Director
RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
John R. Harris, Municipal Utilities & Engineering Director Goutam K. Dobey, City Engineer
PREPARED BY:

Tamara Harrison, Contract Planner
Fiscal Impact
Fiscal Year: FY 2022-23
Appropriation Required Y/N: No
Discussion:

There is no fiscal impact associated with this request. The applicant paid the applicable application filing fees.

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Attachments
Attachment A: Location Map & Aerial Photo
Attachment B: Street Vacation legal description & plat
Attachment C-1: Resolution No. 8450
Attachment C-2: Exhibits A and B to Resolution
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S
Location Map
0 180 360
Feet
Scale
This map was produced by the City of Redlands,
Geographic Information System.

The City of Redlands assumes no warranty or
legal responsibility for the information contained
on this map.

The data used to generate this map is dynamic
in nature, therefore the information shown may
or may not be the most current.

February 15, 2023
.

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1 RESOLUTION NO. 8450

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

DECLARING ITS INTENTION TO VACATE A PORTION OF STREET

RIGHT-OF-WAY LOCATED ALONG RESERVOIR ROAD WESTERLY OF
WABASH AVENUE (STREET VACATION NO. 191)

WHEREAS, Terracina Recovery, LLC (“Applicant”), has filed an application for Street Vacation No. 191 proposing to vacate a portion of excess and unneeded street right-of-way along the frontage of vacant property ( APN: 0174-281-13-0000) along Reservoir Road , for approximately 1,317 feet in length with varying widths, and generally located at the northwest corner of Reservoir Road and Wabash Avenue; and
WHEREAS, the City is authorized to vacate all or part of a public street pursuant to California Streets and Highway Code section 8300 et seq.; and WHEREAS, pursuant to section 8340 of the California Streets and Highways Code, the City may, for public convenience and necessity, reserve and except public service easements from a street vacation; and
WHEREAS, a proposed street vacation qualifies for exemption from environmental review in accordance with the California Environmental Quality Act (“CEQA”), pursuant to Section 15061(b)(3) of the State CEQA Guidelines for projects where there is no possibility of any significant environmental effects; and
WHEREAS, at its meeting on January 24, 2023, the City of Redlands Planning Commission recommended to the City Council that the proposed street vacation will conform to the City’s General Plan; and
WHEREAS, the City Council intends to vacate the excess right -of-way of a portion of Reservoir Road, as more particularly described in Exhibits “A” and “B” to this resolution.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS:

Section 1. The City Council hereby declares its intention to vacate a portion of the right- of way roadway along Reservoir Road approximately 1,317 feet in length ( with varying widths) adjacent to A ssessor’s Parcel Number 0174-281-13-0000, as further described in Exhibit “A” (Legal Description) and Exhibit “B” (Plat) attached hereto and incorporated herein by reference.

Section 2. The City Council will conduct a public hearing on the proposed street vacation at a regularly scheduled public meeting of the City Council on April 18, 2023, beginning at 6:00 p.m., or as soon thereafter as the matter may be heard, to be held in the City Council Chambers located at 35 Cajon Street, Suite 2, Redlands, California 92373.

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2 Section 3. The City Clerk shall give notice of the public hearing on the public hearing on the proposed vacation by:

A. Publishing notice in the Redlands Daily Facts, for two successive weeks prior to the hearing; and

B. Posting notices of the proposed street vacation conspicuously at Reservoir Road at least two weeks prior to the date set for the public hearing. The notices shall be posted no more than 300 feet apart, and at least three such notices shall be posted. The notices shall reference the adoption of this Resolution of Intention and shall state the date, time, and place of the street vacation hearing.

ADOPTED, SIGNED AND APPROVED this 21st day of March, 2023.

Eddie Tejeda, Mayor

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3 ATTEST:

Jeanne Donaldson, City Clerk

I, Jeanne Donaldson, City Clerk of the City of Redlands, do hereby certify that the foregoing Resolution was duly adopted by the City Council at a regular meeting thereof held on the 21st day of March, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Jeanne Donaldson, City Clerk

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4 EXHIBIT A

LEGAL DESCRIPTION

[ Attached ]
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EXHIBIT B
PLAT

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City Council Meeting I. 8.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Approve Amendment No. 1 to the Cooperative Agreement with the County of San Bernardino for paving rehabilitation work and determination that 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 that City Council determine approval of Amendment No. 1 to the Cooperative Agreement with the County of San Bernardino for paving rehabilitation work 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 City Council approve Amendment No. 1 to the Cooperative Agreement with the County of San Bernardino for paving rehabilitation work.

2. RECOMMENDATION:

Staff recommends City Council approve Amendment No. 1 to the Cooperative Agreement with the County of San Bernardino for paving rehabilitation work and determine that this action is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act.

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DISCUSSION:

In FY 20/21, San Bernardino County (SBC) staff informed City staff they would be rehabilitating approximately 30.64 miles of SBC roads in the Mentone area, which includes approximately 0.7 miles of improvement within City street rights-of-way. The project was estimated to cost $3,485,000 and improvements within City street rights-of-way was estimated to cost approximately $64,000. On July 7, 2021, City Council approved a Cooperative Agreement (Agreement) with SBC, which obligated the City to this cost share amount, plus an additional twenty five percent (25%) or $16,000 for unanticipated construction costs, for a total potential cost of $80,000.

In September 2022, SBC awarded a project construction contract to Matich Corporation and the project is currently under construction. SBC now anticipates total project costs will be $3,939,369, which exceeds the original project budget and requires an Amendment to the Agreement. Amendment No. 1 will increase the City's cost share obligation from $80,000 to $176,250, which includes $35,250 that will only be expended if additional unanticipated project costs arise.

Based on recent construction cost trends, staff agrees that this increase is reasonable and necessary to ensure these City street rights-of-way are appropriately maintained.

Approval of Amendment No. 1 to the Agreement with SBC is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act because this activity will not result in a direct or reasonably foreseeable indirect physical change in the environment.

ALTERNATIVES:

City Council may deny the staff recommendation and provide alternate direction.

STRATEGIC PLAN:

N/A
SUBMITTED BY:

John R. Harris, Municipal Utilities and Engineering Director RECOMMENDED BY:

Charles M. Duggan, Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
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Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:

Goutam K. Dobey, City Engineer
Fiscal Impact
Fiscal Year: FY 2022-23
Revenue Generating: N
Appropriation Required Y/N: N
Budgeted Y/N: Y
Account No.: 211910
Discussion:

There is no fiscal impact associated with this action. The FY 22/23 MUED street rehabilitation budget includes adequate funding for this additional expense.

Attachments
A. Amendment No. 1 to Cooperative Agreement
B. Executed Agreement (Reference only)
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Standard Contract Page 1 of 5

THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY

Public Works

Department Contract Representative Arlene Chun, M.S., P.E., Engineering Manager
Telephone Number (909) 387-8165

Project Wabash Avenue and Other Roads
Contractor City of Redlands
Contractor Representative Goutam Dobey, Engineering
Manager
Telephone Number (909) 798-7524
Contract Term Expiration 12/31/2026
Original Contract Amount $64,000
Amendment Amount $77,000
Total Contract Amount $141,000 (not-to-exceed $176,250) Cost Center 6650002142 40608842 34TX1809

IT IS HEREBY AGREED AS FOLLOWS:

Amendment No. 1

WHEREAS, the San Bernardino County (C OUNTY) and the City of Redlands (C ITY) entered into County Contract No. 21 -576 (hereinafter referred to as “Agreement”) on July 27, 2021 to participate and fund the construction of a pavement rehabilitation project for various roads located in the Mentone and Redlands areas (known as “PROJECT”); and,

WHEREAS, COUNTY and CITY, hereinafter are also referred to as “Party” and collectively as “Parties”, desires to amend the Agreement to update the PROJECT costs based on construction contract bid amount, the addition of prep work and application of slurry seal on City’s portion of the road, and material testing.

NOW, THEREFORE, in consideration of the mutual covenants and conditions provided herein, the Parties hereto agree the Agreement, County Contract No. 21-576, is amended as follows:

1. DELETE the existing sixth WHEREAS recital and REPLACE it with a revised sixth WHEREAS recital, which shall read as follows:

Contract Number

21-576 A-1

SAP Number

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WHEREAS, the total PROJECT cost is estimated to be $4,874,000; and,

2. DELETE the existing seventh WHEREAS recital and REPLACE it with a revised seventh WHEREAS recital, which shall read as follows:

WHEREAS, COUNTY’s share of PROJECT cost is estimated to be $4,7 33,000 and the CITY’s share of PROJECT cost is estimated to be $141,000 as more particularly set forth in Exhibit “B-1”, which is attached hereto and incorporated herein by this reference; and,

3. DELETE the existing paragraph 1.10 and REPLACE it with a revised paragraph 1.10, which shall read as follows:

1.10 Based on the COUNTY percentage calculated pursuant to Paragraph 1.9, pay its share of the PROJECT cost. The PROJECT cost shall include cost of design, utility relocation, construction, construction engineering, inspection, CEQA compliance, and COUNTY overhead. COUNTY’s share of PROJECT cost is estimated to be $4,733,000 and shall not exceed $5,916,250 (25% increase over the COUNTY’s PROJECT cost estimate) absent a written amendment to this Agreement pursuant to Paragraph 3.17 below.

4. DELETE the existing paragraph 1.11 and REPLACE it with a revised paragraph 1.11, which shall read as follows:

1.11 Submit to the CITY an itemized accounting of actual PROJECT costs incurred by COUNTY and an invoice. Said invoice shall set forth all actual PROJECT costs incurred by COUNTY, together with adequate documentation of said expenditures. CITY’s share of PROJECT costs is estimated to be $141,000 and shall not exceed $35 ,250 (25% increase over the PROJECT cost estimate) for unanticipated PROJECT cost, bringing a possible total amount not-to-exceed $176,250.

5. DELETE the existing paragraph 2. 3 and REPLACE it with a revised paragraph 2. 3, which shall read as follows:

2.3 Provide a qualified CITY representative who has the authority to discuss and resolve PROJECT issues; and the authority to inspect PROJECT construction site upon notification by COUNTY via email and/or telephone that an inspection is required within the CITY’s limits.

6. DELETE the existing paragraph 2.4 and REPLACE it with a revised paragraph 2.4, which shall read as follows:

2.4 Based on percentage calculated pursuant to Paragraph 1.9 above, pay CITY’s share of the PROJECT costs. The PROJECT cost shall include design, utility relocation, construction, construction engineering, inspection, CEQA compliance, and COUNTY overhead. CITY’s share of the PROJECT cost is currently estimated to be $141 ,000 and shall not exceed $35 ,250 (25% increase over the PROJECT cost estimate) for unanticipated PROJECT cost, bringing a possible total amount not -to- exceed $176,250.

7. DELETE the existing paragraph 3.7 and REPLACE it with a revised paragraph 3.7, which shall read as follows:

3.7 The Parties acknowledge that final PROJECT costs may ultimately exceed current estimates of PROJECT costs. Any additional PROJECT costs resulting from increased bid prices, change orders, or arising from unforeseen site conditions, including utility relocation (but not from requested additional work by COUNTY or CITY, which is addressed in Paragraph 3.8 below) over the estimated total of the PROJECT’s cost of $4,874,000 (which is the sum of $4,733 ,000 from COUNTY and $141,000 from CITY) shall be borne by each Party based on where the work is required (e.g. whether the work is required in the COUNTY or CITY jurisdiction).

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8. DELETE the existing Exhibit “B” and REPLACE it with Exhibit "B -1”, attached to this Amendment and incorporated into County Contract No. 21-576 by this reference.

9. The recitals of this Amendment No. 1 are incorporated into County Contract No. 21-576 by reference.

10. Except as amended by this Amendment No. 1, all other terms and conditions of County Contract No. 21- 576 shall remain the unchanged.

11. This Amendment No. 1 may be executed by the Parties in counterparts, all of which together shall constitute a single agreement.

12. This Amendment No. 1 to the Agreement, County Contract No. 21-576, is effective on the date it is approved and signed by both Parties and shall conclude upon satisfaction of the terms identified in paragraph 3.16 of the Agreement or on December 31, 2026, whichever occurs first.

SIGNATURES ON THE FOLLOWING PAGE

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FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department

Aaron Gest, Deputy County Counsel Andy Silao, P.E., Engineering Manager Brendon Biggs, Director Date Date Date

SAN BERNARDINO COUNTY

(Print or type name of corporation, company, contractor, etc.)

By

Dawn Rowe, Chair, Board of Supervisors (Authorized signature - sign in blue ink) Dated:

Name

SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract)

DOCUMENT HAS BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD Title
Lynna Monell
Clerk of the Board of Supervisors
San Bernardino County
(Print or Type)
By Dated:

Deputy
Address

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Exhibit B-1

ESTIMATE OF PROJECT COSTS

FOR CITY OF REDLANDS AND SAN BERNARDINO COUNTY

PAVEMENT IMPROVEMENTS

IN THE MENTONE, REDLANDS, AND YUCAIPA AREAS

WABASH AVENUE AND OTHER ROADS

DESCRIPTION TOTAL COST

SAN BERNARDINO

COUNTY SHARE

CITY OF

REDLANDS
SHARE
Construction and
Contingency $3,722,000 $3,602,000 $120,000
All Other Costs such as
design, survey, CEQA
compliance, construction
engineering, inspection
and County overhead
$1,152,000 $1,131,000 $21,000
Total $4,874,000 $4,733,000 $141,000

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City Council Meeting I. 9.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Accept the 2020 Homeland Security Grant Program Funding award in the amount of $21,209 for the purchase of mobile radios and authorize an additional appropriation for the same (Fire Chief Sessler)
MOTION(S):

If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:

I move to accept the Federal Emergency Management Agency 2020 Homeland Security Grant Program funds in the amount of $21,209 for the purchase of mobile radios, and approve an additional appropriation for the same.

RECOMMENDATION:

Staff recommends that City Council accept the Federal Emergency Management Agency 2020 Homeland Security Grant Program funds in the amount of $21,209 for the purchase of mobile radios, and approve an additional appropriation.

DISCUSSION:

Public Safety agencies rely on radio communications to keep up to date with the latest information and to keep themselves coordinated at key moments, all of which is crucial in keeping themselves and the community safe. While cell service towers and landlines may fail during an emergency or disaster, VHF radios will continue to work during these situations. Additionally, multiple personnel can be contacted at once, as opposed to dialing individual phone numbers. Lastly, VHF radios ensure interoperability and guarantee communication between the different fire departments and agencies involved, such as CalFire who use VHF radios as their primary communication method during mutual aid deployments.

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To keep up with changing technology and ensure proper communication ability during major emergencies, the Redlands Fire Department sought funding for the purchase of five (5) BK KNGM150-R Remote Mount Mobile Radios, chargers, and accessories. The mobile radios will be installed in the following five engines:

Medic Engine 261, Medic Engine 262, Medic Engine 263, Medic Engine 264, and OES Brush Engine 8638. The radios will be used to improve communications during wildland fires and to meet the FireScope requirement of 400 channel minimum capabilities.

ALTERNATIVES:

Not accept funding from the FEMA FY2020 Homeland Security Grant Program for mobile radios.

STRATEGIC PLAN:

Priority B - Public Health & Safety
SUBMITTED BY:

Rich Sessler, Fire Chief
RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:

Bruni Reyes, Management Analyst
Fiscal Impact
Fiscal Year: 2023
Appropriation Required Y/N: Y
Amount: 21,209
Account No.: 101250
Discussion:

The FEMA 2020 Homeland Security Grant Program does not require matching funds therefore, there is no fiscal impact.

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Attachments
Additional Appropriation
Authorization Letter
Extension/DeObligation Letter
Extension Request Ltr
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City Council Meeting I. 10.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Adopt Resolution No. 8432 to receive an annual report of City of Redlands surplus lands; and determine that approval of the Resolution 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 motion is provided:

I move to adopt Resolution No. 8432.

RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 8432 declaring certain City-owned properties classified as "not surplus" or “exempt property”, and determine that adoption of the Resolution is exempt from environmental review pursuant to Section 15061(b)(3) of the State's Guidelines implementing the California Environmental Quality Act.

DISCUSSION:

Assembly Bill (AB) 1486 was approved by the State Legislature and signed by the Governor in the Fall of 2019. AB 1486 made various amendments to Government Code Sections 54220 et seq., concerning the process for disposition of surplus land by cities and other local agencies. These new laws became effective on January 1, 2020. As such, these new laws require the City to annually report on surplus lands held by the City. The intent of this legislation, is to improve the process for providing notice of surplus lands to facilitate the development of affordable housing around the State. The new law requires that any land “not necessary for the agency’s use” be declared surplus Redlands Regular Meeting of 03/21/2023
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any land “not necessary for the agency’s use” be declared surplus prior to the disposition of the land. “Agency’s use” is defined in the new law as land that is used or planned to be used for the agency’s work or operations such as a water treatment plant, park, detention basin, or other agency use. The state law definition of “Agency use” expressly excludes commercial or industrial uses, such as non-government retail, entertainment, or office development. If an agency disposes of land to finance such a project or activity, that disposition must go through the surplus land process under the new law.

Resolution No. 8432 includes Exhibit "A" which includes a table of properties that are not surplus and the agency has a use for each property. Exhibit "B" includes a table of exempt properties with the criteria for exemption.

Adoption of Resolution No. 8432 is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (CEQA). This section states that a project is exempt from CEQA if 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 recommended action is consistent with this section as it only identifies certain property as not surplus and will not have a physical effect on the environment.

ALTERNATIVES:

The City Council may elect not to adopt the resolution or provide alternative direction to staff.

STRATEGIC PLAN:

Not Applicable
SUBMITTED BY:

Chris Boatman, Assistant City Manager
RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
PREPARED BY:

Tricia Swope, Manager, Facilities and Community Services Redlands Regular Meeting of 03/21/2023
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Fiscal Impact
Discussion:

There is no fiscal impact related to approval of this Resolution.

Attachments
A. Resolution No. 8432
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1 I:\cmo\Resolutions\8432 Resolution surplus property.docx RESOLUTION NO. 8432

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

DECLARING CERTAIN CITY- OWNED REAL PROPERTIES NOT SURPLUS PURSUANT TO GOVERNMENT CODE SECTION 54220, ET SEQ.

WHEREAS, the Surplus Property Land Act, Government Code Section 54220, et seq., defines surplus property as land owned by any local agency that is not necessary for the agency’s use; and

WHEREAS, staff has completed a review of City -owned property and has identified certain sites that may not be necessary for the City’s use as defined in state law; and

WHEREAS, the passage of this resolution will not cause a direct physical change in the environment, nor a reasonably foreseeable indirect physical change in the environment; this action is therefore exempt from further environmental review pursuant to Sections 15061(b)(3) of the California Environmental Quality Act guidelines; and

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as follows:

Section 1. The City Council hereby determines that approval of this Resolution is exempt from further environmental review pursuant to Sections 15061(b)(3) of the California Environmental Quality Act guidelines as approval of this resolution will not cause a direct physical change to the environment, nor a reasonably foreseeable indirect physical change to the environment.

Section 2. The City Council hereby declares that those certain City-owned properties, and any rights, title, and interest therein, listed in Exhibit “A,” attached hereto and incorporated by this reference, are necessary for the City’s use and are declared not surplus.

Section 3. The City Council hereby declares that those certain City-owned properties, and any rights, title, and interest therein, listed in Exhibit “B,” attached hereto and incorporated by this reference, are exempt from Articles II and III of Government Code Section 54220, et seq.

Section 6. This Resolution shall take effect take effect immediately upon its adoption.

[SIGNATURES ON NEXT PAGE]

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2 I:\cmo\Resolutions\8432 Resolution surplus property.docx ADOPTED, SIGNED AND APPROVED this 21st day of March, 2023

________________________
Eddie Tejeda, Mayor

ATTEST:

_________________________
Jeanne Donaldson, City Clerk

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3 I:\cmo\Resolutions\8432 Resolution surplus property.docx I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing resolution was duly adopted by the City Council at regular meeting thereof held on the 21st day of March, 2023, by the following vote:

AYES: NOES: ABSENT: ABSTAIN:

____________________________________
Jeanne Donaldson, City Clerk

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A-1
EXHIBIT “A”
PARCEL LIST – PROPERTY NOT SURPLUS

APN Address Agency Use
1 016701104 8195 ALABAMA ST Settling Pond
2 016701109 ALABAMA ST & SANTA ANA RIVER Rock, Sand and Gravel Production 3 016705104 COMMUNITY PARK/FIELD Between Church/Orange, San Bernardino/Pennsylvania
4 016708146 RIVERVIEW DR & CHURCH ST Open Space
5 016710115 1660 TEXAS ST Reservoir
6 016710116 TEXAS ST & SAN BERNARDINO AVE Citrus
7 016715122 10 W PENNSYLVANIA AVE Fire Station
8 016716106 1535 N CHURCH ST Park
9 016716108 1521 N CHURCH ST Park
10 016717101 1321 TEXAS ST Reservoir/Park
11 016724215 1251 CLAY ST Boys & Girls Club
12 016724217 1251 CLAY ST Boys & Girls Club
13 016724316 111 W LUGONIA AVE Community Center
14 016739107 EASEMENT - W. OF ALABAMA & E. OF CALIFORNIA City Citrus Groves (By Landfill) 15 016739108 1950 NEVADA ST Wastewater
16 016739111 1950 NEVADA ST Wastewater/Landfill
17 016741201 RIVERVIEW DR & CLEMENTINE ST Park
18 016742243 TEXAS ST & DOMESTIC AVE Greenbelt
19 016751111 2401 W SAN BERNARDINO AVE Citrus
20 016751112 2401 ALMOND AVE Citrus
21 016784173 RIVERVIEW DR & KINGSBURY DR Open Space
22 016786119 RIVERVIEW DR & GLOVER ST Open Space
23 016786155 RIVERVIEW DR & BROOKSTONE ST Open Space
24 016789126 140 W RIVERVIEW DR Park
25 016803108 SESSUMS DR & WABASH AVE Airport
26 016803110 SESSUMS DR & WABASH AVE Airport
27 016803112 1551 SESSUMS DR Airport
28 016803121 1790 N DEARBORN ST Park
29 016803122 1790 N DEARBORN ST Park
30 016804119 1625 SESSUMS DR Airport
31 016804121 1745 SESSUMS DR Airport
32 016804125 SESSUMS DR & WABASH AVE Airport
33 016804145 1790 N DEARBORN ST Park
34 016804146 1790 N DEARBORN ST Park
35 016804149 1655 SESSUMS DR Airport
36 016804153 1795 SESSUMS DR Airport
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A-2

APN Address Agency Use
37 016804160 1755 SESSUMS DR Airport
38 016807102 1790 N DEARBORN ST Park
39 016807172 SESSUMS & DEARBORN Citrus
40 016809102 1790 N DEARBORN ST Park
41 016809105 1790 N DEARBORN ST Park
42 016809109 1790 N DEARBORN ST Park
43 016812102 SAN BERNARDINO AVE & JUDSON ST Citrus
44 016816108 300 E LUGONIA AVE Citrus
45 016831108 SESSUMS DR & WABASH AVE Airport
46 016832111 CRAFTON AVE & ANZIO AVE Water Treatment
47 016834102 1330 AMETHYST ST Clubhouse
48 016834301 MILL CREEK RD & MENTONE AVE Vacant
49 016835105 MILL CREEK RD & JULIAN DR W Spreading Basin 50 016835107 MILL CREEK RD & PLUMMERS LN Intake Structure for Tate 51 016835108 MILL CREEK RD & PLUMMERS LN Intake Structure for Tate 52 016836201 MILL CREEK RD & BRYANT ST Existing/Future Utilities 53 016836202 MILL CREEK RD & BRYANT ST Existing/Future Utilities 54 016836203 MILL CREEK RD & BRYANT ST Existing/Future Utilities 55 016836205 MILL CREEK RD & BRYANT ST Existing/Future Utilities 56 016836301 34001 MILL CREEK RD Existing/Future Utilities 57 016836302 MILL CREEK RD & BRYANT ST Existing/Future Utilities 58 016836303 MILL CREEK RD & BRYANT ST Existing/Future Utilities 59 016873126 DEARBORN ST & FOOTHILL WAY Citrus
60 016873127 DEARBORN ST & SAN BERNARDINO AVE Citrus
61 016874179 DEARBORN ST & FOOTHILL WAY Citrus
62 016874180 DEARBORN ST & FOOTHILL WAY Citrus
63 016874181 CAPRI & GRANITE ST Citrus
64 016875157 SAN BERNARDINO AVE & DEARBORN ST Citrus
65 016875158 SAN BERNARDINO AVE & DEARBORN ST Citrus
66 016875160 DEARBORN ST & FOOTHILL WAY Citrus
67 016877151 CAPRI & GRANITE ST Citrus
68 016879129 1320 REVELATION WAY Citrus
69 016879130 LUGONIA AVE & REVELATION WAY Citrus
70 016880139 VALLEY FALLS AVE & WABASH AVE Citrus
71 016880140 1781 VALLEY FALLS AVE Citrus
72 016889121 JUDSON ST & PIONEER AVE Citrus
73 016889122 JUDSON ST & LUCAS LN Park
74 016889123 JUDSON ST & LUCAS LN Park
75 016889127 JUDSON ST & PIONEER AVE Park
76 016890168 ADELINE AVE & SAN BERNARDINO AVE Citrus
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A-3

APN Address Agency Use
77 016891153 PENNSYLVANIA AVE & SHANNON AVE Greenbelt
78 016891154 PENNSYLVANIA AVE & ADELINE AVE Greenbelt
79 016891155 PENNSYLVANIA AVE EAST OF JUDSON ST Citrus
80 016892155 1443 GALWAY AVE Park
81 016909113 1006 OXFORD DR Quad
82 016930130 5TH ST & REDLANDS BLVD Parking Lot
83 016932103 CHURCH ST & CENTRAL AVE Public Facility
84 016935101 1270 W PARK AVE City Yard
85 016935104 1267 W REDLANDS BLVD Public Facility
86 016935105 1270 W PARK AVE City Yard
87 016935106 1270 W PARK AVE City Yard
88 016935107 KANSAS ST & REDLANDS BLVD Public Facility
89 017008209 939 E HIGH AVE Public Facility
90 017008301 UNIVERSITY ST & COLTON AVE Park
91 017008303 UNIVERSITY ST & COLTON AVE Park
92 017014207 525 N UNIVERSITY ST Park
93 017014208 UNIVERSITY ST & COLTON AVE Park
94 017014209 UNIVERSITY ST & COLTON AVE Park
95 017014210 UNIVERSITY ST & COLTON AVE Park
96 017018144 Church St & Stuart Ave Public Facility
97 017023125 CHURCH ST & CENTRAL AVE High School
98 017028116 1490 SYLVAN BLVD Park
99 017028118 1450 SYLVAN BLVD Park
100 017028120 1446 SYLVAN BLVD Park
101 017030206 500 N DEARBORN ST Reservoir
102 017030217 DEARBORN ST & SYLVAN BLVD Reservoir
103 017030218 500 N DEARBORN ST Reservoir
104 017031102 WABASH AVE & COLTON AVE Park
105 017031104 WABASH AVE & INDEPENDENCE AVE Park
106 017031106 WABASH AVE & COLTON AVE Park
107 017031231 WABASH AVE & INDEPENDENCE AVE Park
108 017037501 SYLVAN BLVD & LINCOLN ST Flood Control
109 017046102 LARAMIE AVE & LINCOLN ST Park
110 017046103 LARAMIE AVE & LINCOLN ST Park
111 017046104 LARAMIE AVE & LINCOLN ST Park
112 017102103 REDLANDS BLVD & NEW YORK ST Park
113 017102109 NEW YORK ST & REDLANDS BLVD Park
114 017102112 REDLANDS BLVD & TEXAS ST Parking Lot
115 017106217 REDLANDS BLVD & 5TH ST Parking Lot
116 017108801 525 E CITRUS AVE Fire Station
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A-4

APN Address Agency Use
117 017113216 300 E STATE ST Public Facility
118 017124101 PARKWOOD DR & GLENWOOD DR Park
119 017124201 PARKWOOD DR & GLENWOOD DR Park
120 017124301 PARKWOOD DR & GLENWOOD DR Park
121 017124406 GRANT ST & GLENWOOD DR Redlands Bowl
122 017124407 GRANT ST & GLENWOOD DR Redlands Bowl
123 017124430 168 S EUREKA ST Public Facility
124 017126101 30 CAJON ST Police Annex
125 017127111 35 CAJON ST Civic Center
126 017127113 35 CAJON ST Civic Center
127 017129101 125 W VINE ST Library
128 017129120 173 S EUREKA ST Clubhouse
129 017209118 OLIVE AVE & MELBURY PL Citrus
130 017209119 OLIVE AVE & MELBURY PL Citrus
131 017209120 OLIVE AVE & MELBURY PL Citrus
132 017401402 1352 PROSPECT DR Park
133 017401403 1352 PROSPECT DR Park
134 017401404 HIGHLAND AVE & CAJON ST Citrus
135 017401405 HIGHLAND AVE & CAJON ST Citrus
136 017401406 1352 PROSPECT DR Park
137 017402304 PROSPECT ST & FOUNTAIN AVE Citrus
138 017406208 REDLANDS BLVD & FORD ST Well Site
139 017407111 FRANKLIN AVE & CAJON ST Park
140 017414125 PARKFORD DR & MARSHALL ST Park
141 017414201 PARKFORD DR & MARSHALL ST Park
142 017422141 5TH ST & MARION RD Citrus
143 017425203 SUNSET DR & SOUTH AVE Reservoir
144 017425206 SUNSET DR & FELISA CT Reservoir
145 017428124 851 WABASH AVE Open Space
146 017428126 WABASH AVE & PANORAMA DR Open Space
147 017428128 WABASH AVE & PANORAMA DR Open Space
148 017465135 5TH AVE & WABASH AVE Greenbelt
149 017501135 SMILEY HEIGHTS DR & CALLE DE LAS PALMAS Reservoir 150 017501162 SAN TIMOTEO CANYON RD & FERN AVE Open Space 151 017501176 447 SAN TIMOTEO CANYON RD Open Space
152 017501177 SAN TIMOTEO CANYON RD & FERN AVE Open Space 153 017512211 SAN TIMOTEO CANYON RD & FERN AVE Open Space 154 017513101 SAN TIMOTEO CANYON RD & FERN AVE Open Space 155 017513114 SAN TIMOTEO CANYON RD & ALESSANDRO RD Open Space 156 017513118 SAN TIMOTEO CANYON RD & FERN AVE Open Space Redlands Regular Meeting of 03/21/2023
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A-5

APN Address Agency Use
157 017513119 SAN TIMOTEO CANYON RD & ALESSANDRO RD Open Space 158 017513120 SAN TIMOTEO CANYON RD & ALESSANDRO RD Open Space 159 017513121 SAN TIMOTEO CANYON RD & ALESSANDRO RD Open Space 160 017513124 SAN TIMOTEO CANYON RD & FERN AVE Open Space 161 017514208 SAN TIMOTEO CANYON RD & ALESSANDRO RD Open Space 162 017514210 SAN TIMOTEO CANYON RD & ALESSANDRO RD Open Space 163 017514434 1540 ALESSANDRO RD Cemetery
164 017514435 1540 ALESSANDRO RD Cemetery
165 017516103 1540 ALESSANDRO RD Cemetery
166 017524103 SAN TIMOTEO CANYON RD & ALESSANDRO RD Open Space 167 017525111 SAN TIMOTEO CANYON RD & ALESSANDRO RD Open Space 168 017526103 1540 ALESSANDRO RD Cemetery
169 017526107 1540 ALESSANDRO RD Cemetery
170 017526204 ALESSANDRO RD & W SUNSET DR Cemetery
171 017603309 MARGARITA DR & MARILYN LN Reservoir
172 017603310 MARGARITA DR & MARILYN LN Reservoir
173 017603311 MARGARITA DR & MARILYN LN Reservoir
174 017607418 1716 GARDEN ST Fire Station
175 017613401 MARIPOSA DR & W SUNSET DR Park
176 017613402 MARIPOSA DR & W SUNSET DR Park
177 017613405 MARIPOSA DR & W SUNSET DR Park
178 017613406 MARIPOSA DR & W SUNSET DR Park
179 017613407 MARIPOSA DR & W SUNSET DR Park
180 017613408 MARIPOSA DR & W SUNSET DR Park
181 017613502 1741 CHAPPARAL RD Park
182 017615112 MARIPOSA DR & W SUNSET DR Park
183 017619212 COUNTRY CLUB DR & VERDE VISTA DR Reservoir 184 028123227 DAVIDSON ST & CURTIS ST Well Site
185 028123228 DAVIDSON ST & CURTIS ST Well Site
186 029117206 RIVERVIEW DR & ORANGE ST Well Site
187 029117207 RIVERVIEW DR & ALTA ST Citrus
188 029117212 RIVERVIEW DR & CAVE ST Well Site
189 029117213 RIVERVIEW DR & GLOVER ST Well Site
190 029118113 RIVERVIEW DR & RIVERBEND RD Well Site
191 029120103 SESSUMS DR & WABASH AVE Airport
192 029120104 SESSUMS DR & WABASH AVE Airport
193 029120105 SESSUMS DR & WABASH AVE Airport
194 029120106 SESSUMS DR & WABASH AVE Airport
195 029120107 SESSUMS DR & WABASH AVE Airport
196 029120111 SESSUMS DR & WABASH AVE Airport
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A-6

APN Address Agency Use
197 029120117 SESSUMS DR & WABASH AVE Airport
198 029203435 BRYN MAWR AVE & 10 FREEWAY Citrus
199 029203436 BRYN MAWR AVE & 10 FREEWAY Citrus
200 029203437 CALIFORNIA ST & 10 FREEWAY Citrus
201 029204136 1950 NEVADA ST Wastewater
202 029204137 1950 NEVADA ST Wastewater
203 029204139 ALABAMA ST & SANTA ANA RIVER Landfill
204 029204401 27050 PALMETTO AVE Landfill
205 029204402 27050 PALMETTO AVE Landfill
206 029204403 27050 PALMETTO AVE Landfill
207 029204404 1951 NEVADA ST Landfill
208 029204407 27050 PALMETTO AVE Landfill
209 029204408 2151 NEVADA ST Citrus
210 029204415 27050 PALMETTO AVE Landfill
211 029204416 NEVADA ST & PALMETTO AVE Landfill
212 029206432 CALIFORNIA ST & 10 FREEWAY Citrus
213 029207102 ALABAMA ST & SANTA ANA RIVER Settling Pond 214 029207103 ALABAMA ST & SANTA ANA RIVER Settling Pond 215 029207104 ALABAMA ST & SANTA ANA RIVER Settling Pond 216 029207134 ALABAMA ST & SANTA ANA RIVER Percolating Ponds for WWTP 217 029215716 1625 W REDLANDS BLVD Public Facility
218 029216608 11126 IOWA ST Park
219 029218402 KANSAS ST & REDLANDS BLVD Public Facility 220 029218405 1301 W REDLANDS BLVD Public Facility
221 029218418 1341 W REDLANDS BLVD Public Facility
222 029303138 1ST ST & WHITTIER AVE Well Site
223 029313301 BROOKSIDE AVE & TERRACINA BLVD Park
224 029409160 1900 ALESSANDRO RD Open Space
225 029409161 SAN TIMOTEO CANYON RD & ALESSANDRO RD Open Space 226 029409162 1908 ALESSANDRO RD Open Space
227 029412131 CREEKSIDE DR & HORSE TRAIL DR Open Space
228 029711105 SESSUMS DR & WABASH AVE Airport
229 029711107 SESSUMS DR & WABASH AVE Airport
230 029815137 AGATE AVE & SALERNO AVE Reservoir
231 029833134 1369 FAIRVIEW LN Reservoir
232 029921206 WABASH AVE & PANORAMA DR Vehicle Access
233 029929115 VALENCIA DR & KING ST Reservoir
234 029932163 CAMPUS DR & SAND CANYON RD Reservoir
235 029942141 WABASH AVE & CITRUS AVE Greenbelt
236 029943135 MONTECITO LN & WABASH AVE Greenbelt
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A-7

APN Address Agency Use
237 029943137 MONTECITO LN & WABASH AVE Greenbelt
238 029943138 MONTECITO LN & WABASH AVE Greenbelt
239 030023124 SOUTH OF OAKMONT PARK Open Space Emerald Necklace 240 030023131 SOUTH OF OAKMONT PARK Open Space Emerald Necklace 241 030023136 LIVE OAK CANYON RD Open Space Emerald Necklace 242 030023138 31110 LIVE OAK CANYON RD Open Space Emerald Necklace 243 030023161 31215 SUTHERLAND DR Park
244 030024115 31200 LIVE OAK CANYON RD Open Space Emerald Necklace 245 030024124 LIVE OAK CANYON RD Open Space Emerald Necklace 246 030024125 31313 LIVE OAK CANYON RD Open Space Emerald Necklace 247 030024136 EAST OF OAKMONT PARK Open Space
248 030045108 13198 HELEN CT Reservoir
249 030046121 COUNTRY CLUB DR & VERDE VISTA DR Reservoir 250 030119119 31839 HIGHVIEW DR Open Space
251 030208206 33663 NEWPORT AVE Well Site
252 030217106 3040 MILL CREEK RD Reservoir
253 030218101 33501 MILL CREEK RD Open Space
254 030218102 33251 MILL CREEK RD Open Space
255 121201172 RIVERVIEW DR & CHURCH ST Open Space
256 121202163 RIVERVIEW DR & MADISON ST Open Space
257 121203101 RIVERVIEW DR & RIVERBEND RD Citrus
258 121203102 RIVERVIEW DR & RIVERBEND DR Citrus
259 121220129 PENNSYLVANIA AVE & JUDSON ST Well Site
260 121221101 SAN BERNARDINO AVE & JUDSON ST Citrus
261 121244102 RIVERVIEW DR & CHURCH ST Well Site
262 121245162 PIONEER AVE & JUDSON ST Citrus
263 121245163 SAN BERNARDINO AVE & JUDSON ST Greenbelt
264 121245165 HARRISON LN & LUCAS LN Greenbelt
265 121245168 PIONEER AVE & JUDSON ST Flood Control

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B-1
EXHIBIT “B”

EXEMPT PROPERTY

Criteria for Exemption

1. Less than 5,000 square feet

2. No record access

3. Less than 10,000 square feet and not contiguous to open space

Criteria
1 Criteria
2 Criteria 3
APN Address Agency Use LT5000 Access GT51T10 Contig
1 016706123 DOMESTIC AVE & TEXAS ST Utility Yes
2 016716107 CHURCH ST & SAN BERNARDINO AVE Park Yes
3 016742244 CLEMENTINE DR & DOMESTIC AVE Greenbelt Yes Yes 4 016742245 DESERT LIME CT & DOMESTIC AVE Greenbelt Yes Yes 5 016742246 DOMESTIC AVE & CITRON CT Greenbelt Yes yes
6 016743241 PIONEER AVE & CLEMINTINE DR Greenbelt Yes Yes 7 016743242 PIONEER AVE & CLEMINTINE DR Greenbelt Yes Yes 8 016757106 CALIFORNIA ST & SAN BERNARDINO AVE Well Site Yes 9 016807101 SAN BERNARDINO ST & DEARBORN AVE Well Site Yes Yes 10 016807173 SAN BERNARDINO AVE & LUCAS LN Greenbelt Yes Yes 11 016807175 LUCAS LN & SAN BERNARDINO AVE Greenbelt Yes Yes 12 016807190 SAN BERNARDINO AVE & LUCAS LN Greenbelt Yes Yes 13 016809101 DEARBORN ST & SAN BERNARDINO AVE Well Site Yes 14 016832107 FLORIDA ST & GREENSPOT RD Next to right-of-way Yes Yes 15 016832108 FLORIDA ST & GREENSPOT RD Next to right-of-way Yes Yes 16 016837108 1500 CRAFTON AVE Well Site Yes
17 016889124 LUCAS LN & JUSTIN CT Greenbelt Yes Yes
18 016889126 LUCAS LN & TAYLOR CT Greenbelt Yes Yes
19 016890174 ADELINE AVE & ELLIOTT CT Greenbelt Yes Yes 20 016890175 ADELINE AVE & ELLIOTT CT Greenbelt Yes Yes 21 016890176 ADELINE AVE & SHANE CT Greenbelt Yes Yes
22 016890177 ADELINE AVE & KRISTION CT Greenbelt Yes Yes 23 016930133 5TH & REDLANDS BLVD Parking Lot Yes
24 016936208 845 ALABAMA ST Well Site Yes Yes
25 016939103 REDLANDS BLVD & TENNESSEE ST Right-of-Way Yes Yes 26 017034230 SYLVAN BLVD & LINCOLN ST Greenbelt Yes Yes 27 017108611 725 E STATE ST Citrus Yes Yes
28 017108802 525 E CITRUS AVE Fire Station Yes Yes
29 017112119 50 ORANGE ST Park Yes Yes
30 017117133 STATE ST & TEXAS ST Well Site Yes Yes
31 017118126 NEW YORK ST & PINE AVE Well Site Yes Yes
32 017118139 NEW YORK ST & PINE AVE Well Site Yes Yes
33 017123221 OLIVE AVE & BUENA VISTA ST Storm Drain Yes 34 017123224 OLIVE AVE & BUENA VISTA ST Storm Drain Yes Yes Redlands Regular Meeting of 03/21/2023
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B-2

Criteria
1 Criteria
2 Criteria 3
APN Address Agency Use LT5000 Access GT51T10 Contig
35 017126114 10 CAJON ST Greenbelt Yes Yes
36 017127201 CITRUS AVE & 6TH ST Parking Lot Yes Yes
37 017127202 CITRUS AVE & 6TH ST Parking Lot Yes Yes
38 017127203 CITRUS AVE & 6TH ST Parking Lot Yes Yes
39 017127204 CITRUS AVE & 6TH ST Parking Lot Yes Yes
40 017131212 OLIVE AVE & BUENA VISTA ST Storm Drain Yes Yes 41 017134110 213 MYRTLE ST Parking Lot Yes Yes
42 017135211 FERN AVE & BUENA VISTA ST Storm Drain Yes Yes 43 017244141 123 TERRACINA BLVD Well Site Yes
44 017414203 PARKFORD DR & MARSHALL ST Park Yes
45 017428119 WABASH AVE & PANORAMA DR Next to right-of-way Yes Yes 46 017428120 WABASH AVE & PANORAMA DR Next to right-of-way Yes Yes 47 017501152 SMILEY HEIGHTS DR & CALLE DE LAS
PALMAS
Reservoir Yes Yes
48 017545117 1540 ALESSANDRO RD Cemetery Yes Yes
49 017603106 FORD ST & EUCALYPTUS DR Well Site Yes
50 017614210 W SUNSET DR & VALLE VISTA DR Greenbelt Yes Yes 51 029203207 BRYN MAWR AVE & LUGONIA AVE Well Site Yes Yes 52 029302206 WHITTIER AVE & 1ST ST Well Site Yes Yes
53 029304103 LAWTON AVE & WHITTIER BLVD Well Site Yes
54 029426214 CREEKSIDE DR & CANYON VIEW LN Vacant Yes Yes 55 029829102 GARNET ST & MILL CREEK RD Well Site Yes Yes 56 029829206 GARNET ST & MILL CREEK RD Well Site Yes Yes 57 029831112 NAPLES AVE & ROSE ST Well Site Yes Yes
58 029841143 CRAFTON AVE & MENTONE BLVD Well Site Yes Yes 59 029932164 CAMPUS DR & SAND CANYON RD Utility Yes
60 029942142 CITRUS AVE & JACINTO RANCHES LN Greenbelt Yes Yes 61 029943136 MONTECITO LN & WABASH AVE Greenbelt Yes Yes 62 121221102 JUDSON ST & PENNSYLVANIA AVE Well Site Yes Yes 63 121242104 LUGONIA AVE & JUDSON ST Vehicle Access Yes Yes

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City Council Meeting I. 11.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Approve a request for in-kind support in the amount of $92,524 related to the Redlands Bicycle Classic event hosted by the Redlands Bicycle Classic Inc. to be held on April 14, 2023, through April 16, 2023; authorize temporary street closures related to the event; authorize the sale and consumption of alcoholic beverages at the event; and determine that the sale and consumption of alcoholic beverages at the event is categorically 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 the authorization for the sale and consumption of alcoholic beverages during the Redlands Bicycle Classic to be held April 14 through April 16, 2023, is categorically 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 authorize and approve a request for in-kind support in the amount of $92,524 related to this event; and

2. I move to authorize the temporary street closures related to the event; and

3. I move to authorize the sale and consumption of alcoholic beverages during The Redlands Bicycle Classic event to be held on April 14, 2023, through April 16, 2023.

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RECOMMENDATION:

Staff recommends the City Council determine that the sale and consumption of alcoholic beverages at the Redlands Bicycle Classic is categorically exempt from environmental review pursuant to Section 15061 (b)(3) of the State’s guidelines implementing the California Environmental Quality Act, that the City Council direct staff accordingly concerning the request for in-kind support, and authorize the sale and consumption of alcoholic beverages during the Redlands Bicycle Classic event.

DISCUSSION:

The Facilities and Community Services Department manages the administration and issuance of permits for special events held in public areas of the City. Upon the issuance of a special event permit, the event may take place contingent on the event organizer paying the required fees. The City recognizes the value of partnering with non-profit agencies and organizations to provide services beneficial to the community. In an effort to provide support for programs that provide a community benefit, the City Council will, from time to time, consider the authorization of the expenditure of City resources related to a specific special event without reimbursement from Redlands-based non-profit agencies and organizations.

The Redlands Bicycle Classic Inc. (Bicycle Classic) is requesting in-kind support related to Police, Fire, and Facilities and Community Services personnel and the rental of barricades for the Bicycle Classic event to be held from April 14-16, 2023. The Bicycle Classic is a registered 501(c)(4) non-profit organization operating out of Redlands and has held the race and expo event locally for the past 35 years. The current fee waiver request indicates 30,000 anticipated participants and spectators. The application suggests a positive outcome for the Bicycle Classic as providing local service clubs and organizations an opportunity to raise funds for charity, bringing revenue to local businesses, and notoriety to the City through the hosting of a top-tier event. The indicated economic benefit is the use of local hotels, restaurants, and stores by participants and spectators.

The City Council has approved in-kind support requests for past annual Bicycle Classic events. A summary of the costs is included in the fiscal impact section of this report.

The sale and consumption of alcoholic beverages at the event is categorically exempt from the requirements of the California Environmental Quality Act’s guidelines pursuant to Section 15061 (b)(3). This section includes the permitting of existing public facilities involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The request is consistent with this exemption as it includes permitting alcohol service within an Redlands Regular Meeting of 03/21/2023
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existing public park.

ALTERNATIVES:

The City Council may deny the request for in-kind support or provide alternative direction to staff.

STRATEGIC PLAN:

Supports Priority A - Quality of Life: Economic Vitality SUBMITTED BY:

Chris Boatman, Assistant City Manager
RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:

Joe Bierma, Administrative Analyst
Fiscal Impact
Fiscal Year: FY 2022-23
Amount: $92,524
Discussion:

In anticipation of the City Council's consideration of this request, staff has compiled the following table outlining costs related to fees established by Resolution of the City Council and departmental charges pertaining to personnel and equipment resources necessary for the in-kind support of the event. The departmental charges are costs outside of normal City operations that would not be incurred by the City if the special event was not taking place.

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Departmental Charges
(Personnel & Equipment)
2023 Amount Type 2022
Amount
Police Personnel1 $70,072 Hard Cost $69,491
Fire Personnel $19,690 Hard Cost $19,690
Fire Equipment $400 Soft Cost $400
Facilities & Community
Services Personnel1
$2,112 Hard Cost $2,112
Facilities & Community
Services Equipment
$250 Soft Cost $250
Personnel & Equipment
Subtotal
$92,524 $91,943
Fees Established by City
Council Resolution

N/A N/A
Fees Subtotal N/A N/A
Total Departmental
Charges and Fees
$91,874(hard)
$650
(soft)
$92,524 (Total)
$91,293
(hard)
$
650.00(soft)
$91,943
(Total)
1Personnel costs are calculated conservatively assuming the highest staff cost scenario. Actual costs may vary on the day of the event based on the actual staff present. Actual costs will be confirmed following the event and will be included in a reconciliation report presented to the City Council.

The following table summarizes the total estimated costs associated with in-kind support approved for events scheduled during Fiscal Year 2022-23 to date:

TABLE 2: FY 2022-23 Fee Waivers to date
Hard Costs Soft Costs DepositsRefunded Waiver
Amount
Net Amount
$215,126.00 $76,771.50 $5,200.00 $291,553.50 $287,197.50 Attachments
In-Kind Support Request
In-Kind Support Request attachment
Verification of Non-profit
Street Closure Request
Authorization to Serve Alcohol
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In-Kind Support Request
Group/Organization Name:

Event Name:

Event Date(s):

Primary Contact Name & Title:

Mailing Address:

Phone Number: E-Mail Address:

Is your Group/Organization
a Registered Non-Profit:

Beginning Time: End Time:

No
Yes Non-Profit Federal Tax ID Number:

Describe Your Request:

Location(s):

Rain Out Date:

Traffic (Personnel, equipment, cones, barricades, no-parking Police (Public Safety Personnel)
Fire (Paramedics, Inspectors)
Parks (Cleanup Personnel, Ball Field Lights)
Facility
Refuse/Recycling (Event Receptacles, Roll-Off Service) acquired by Event Organizers through Redlands Customer Service Other
Select and Describe All City Provided Services That May Apply to Your Request :

Does your Group/Organization
Presently Have Liability Insurance?
Has your Group/Organization received fee
waivers from the City in the past?
Yes
No
Department may require smaller events to comply with
City recycling practices as a condition of waiving fees.

Updated 6/2021
City of Redlands
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To Be Completed by the City of Redlands
Received By:

I certify that all statements on this application are true and complete to the best of my knowledge.

Signature: Title:

Date: Please Print Your Name:

Proposed Event Previous Event
Actuals
Attendance: Redlands
Residents
Food & Beverage Sales
Merchandise Sales
Ticket/Entrance Fees
Total Revenue
Other
Attendance: Non-
Residents
Vendors

As a part of our commitment to fiscal responsibility, the City of Redlands gathers data associated with the economic and social benefits associated with in-kind support. Please provide estimates, as applicable, for your event.

Positive outcomes for your
organization from this
Describe what economic
benefit and impact this
event will
bring to the City:

In April 2002, the
City Council adopted Resolution No. 6038, which encourages groups or organizations requesting in-kind support from the City to use local businesses when procuring goods and services associated with the event. Receipts will need to be submitted through a follow
up form. Failure to submit post event documentation (within 15 days) may affect future requests.

Date Received:

Notes:

City Council Approval:City Manager Approval:

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_________________________________________________________________________________________________ ____________________________________________________________________________________________________________________ P.O. Box 7880 Redlands, CA 92375 www.redlandsclassic.com

City of Redlands
P. O. Box 3005
Redlands, CA 92373

Dear Elected Officials and City Staff:

On behalf of the Redlands Bicycle Classic Committee, we are excited to approach the City of Redlands with our intent to conduct the Redlands Bicycle Classic from April 12-16, 2023.

Certainly, the world looked different when we returned “post-pandemic” in 2022, but all-in- all, the Redlands Bicycle Classic remained a flagship community event for the city. We remain committed to hosting this nationally renowned cycling competition and community event in a safe and responsible manner, while bringing recognition and revenue to our city.

In exchange, we are soliciting the in-kind support of the City’s leadership through their waiver of the costs and fees associated with our event.

We fully understand and support the City Council’s focus on fiscal responsibility. With that, we remain confident that you will continue to see that the value of the Redlands Bicycle Classic far exceeds the costs incurred. We applaud the Council for seeing past the initial costs on paper and recognizing the true value of investing in community events that make Redlands the jewel of the Inland Empire and a place we are all proud to call home. In terms of value, we realize it is very difficult to quantify a specific dollar amount associated with many of the benefits this event provides. However, I would like to take a moment to share the following perspective on what the Redlands Bicycle Classic means to our community.

Value to the City of Redlands
The positive exposure to the city is extensive and difficult to measure. Marketing of the Redlands Bicycle Classic translates into marketing the City of Redlands. Our in-kind media sponsor partnerships include a large cross section of all media capacities and our message reaches hundreds of thousands of viewers, with total media impressions in the millions.

Our partnerships with twelve inland area radio stations and local news groups, including the Redlands Community News, San Bernardino Sun and Redlands Magazine focus on inviting spectators to come to Redlands to enjoy our famous hospitality, while watching an exciting world-class event and inviting them to patronize our local hotels, restaurants and stores. Additionally, the RBC is covered by every local news organization in an editorial capacity with stories and images from each day’s events. The Redlands Bicycle Classic is well known throughout the media circles and it is a “must cover” event. We have worked diligently to increase the exposure for the City of Redlands through the Classic.

Value to local businesses
As recognized by the Redlands Chamber of Commerce and several local businesses that sponsor the Classic, many Redlands businesses benefit from the participants, their families and spectators who travel here from out of the area. Whether they are staying in their hotels, dining in their restaurants, purchasing fuel, or shopping in their stores, Redlands businesses enjoy an uptick in business when the Classic comes to town.

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Value to the community
In addition to providing the United States with a top-notch professional cycling event, the Redlands Bicycle Classic provides so much more. We offer the opportunity for people of all ages to experience the thrill of an exceptionally organized event. Whether you are three or eighty-three, you can race in the Classic. Our public races showcase future cycling talent and encourage positive activities and healthy living for our youth. In 2022, we partnered with the “Plain Wrap Ride” to bring another cycling event downtown and over 500 people attended. In 2023, the “Plain Wrap Ride” will occur on Saturday morning, and we are in the process of developing some new events that will draw people to the start and finish in the downtown area on Sunday morning.

Our partnership with PossAbilities, an outreach program at Loma Linda University Medical Center, will grow this year as we host one of only two internationally sanctioned hand-cycle events in the US. This national qualifying event will propel our race to the highest level of paracycling. We will also continue our “School Duel” public races, encouraging children to get out and ride. Through participation in the “Fit Lifestyle” quiz, any child completing the online “quiz” will have the ability to participate in the public races free of charge. Our school visit program allowed professional cycling teams to visit 30 schools and see 13,000 children in 2022.

Finally, the Redlands Bicycle Classic has become a tradition for many local service clubs and non- profit groups. Our Expo area, located atop the parking structure, affords groups an opportunity to raise funds for their various causes through sales of food, beverage and other items. Additionally, some clubs volunteer their services to the Classic, and they are rewarded with a financial contribution from the Classic. As you can see, all funds are invested back into the community.

I know the Council is very familiar with the approach our group takes towards fiscal responsibility and reducing costs to the City. We have worked diligently with each of the city departments to minimize the impact the event has on their operations. We provide Race Marshals to reduce traffic control expenses by the Police Department. We provide doctors from Loma Linda Medical Center to lessen the impact on the Fire Department. Our volunteers pick up and return signs, barricades, and cones to reduce costs for the Quality of Life Department.

In a community already rich with tradition and history, it is tough to find an event that adds value.

However, the Classic has consistently met this challenge for the past 36 years, and Redlands can be proud to claim the Bicycle Classic. Racers and teams throughout the country simply refer to the event as “Redlands.” As one of the premier stage races in North America, please make no mistake about it – your support of the Redlands Bicycle Classic over the past 36 years has been nothing short of extraordinary.

As we embark upon the 37
th edition of this event, your support and investment are key in the continued success of the Redlands Bicycle Classic. We feel strongly that the Classic is a part of what makes Redlands special, and we are very proud to be a part of making this community a wonderful place to call home. In closing, on behalf of the over community 500 volunteers that make up our team, I thank you for your continued support and look forward making YOUR Redlands Bicycle Classic a success in 2023.

Sincerely,

Marc Shaw, Executive Director
Redlands Bicycle Classic, Inc.

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2/9/23, 3:39 PM Tax Exempt Organization Search Details | Internal Revenue Service https://apps.irs.gov/app/eos/details/ 1/2

REDLANDS BICYCLE CLASSIC
INC
EIN: 33-0231753 | United States
Other Names

REDLANDS BICYCLE CLASSIC
Auto-Revocation List
Organizations whose federal tax exempt status was automatically revoked for not filing a Form 990-series return or notice for three consecutive years.

Important note: Just because an organization appears on this list, it does not mean the organization is currently revoked, as they may have been reinstated.

Exemption Type: 501(c)(4)
Exemption Reinstatement Date: 12-15-2011
Revocation Date: 11-15-2010
Revocation Posting Date: 07-13-2011
Determination Letter
A favorable determination letter is issued by the IRS if an organization meets the requirements for tax-exempt status under the Code section the organization applied.

Final Letter(s)
FinalLetter_33-0231753_REDLANDSBICYCLECLASSICINC_12302011_01.tif [https://apps.irs.gov/pub/epostcard/dl/FinalLetter_33-
0231753_REDLANDSBICYCLECLASSICINC_12302011_01.tif]
Copies of Returns (990, 990-EZ, 990-PF , 990-
T)
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Electronic copies (images) of Forms 990, 990-EZ, 990-PF or 990-T returns filed with the IRS by charities and non-profits.

Tax Year 2020 Form 990O
Tax Year 2020 Form 990O
Tax Year 2019 Form 990O
Tax Year 2019 Form 990O
Tax Year 2018 Form 990O
Tax Year 2017 Form 990
Tax Year 2016 Form 990O
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EVENT: _________________________________

PERMIT TO CLOSE STREET FOR SOCIAL EVENT(S)
Permission to close a street for an event is subject to the following requirements:
***MUST PROVIDE INSURANCE COVERAGE AS DESCRIBED. SEE REVERSE***

1. MUST attach street closure diagram. (Failure to submit diagram will result in non-issuance of permit).

2. MUST attach event flyer or event description. (Failure to submit flyer or event description will result in non-issuance of permit).

3. Signs and barricades shall be supplied and installed by the applicant as required by the Municipal Utilities & Engineering Department Director.

4. No tables or other objects shall be placed on the street surface.

5. Permission in writing shall be granted by all residents of the effected portion of the street.

6. The hours of street closure shall be within the hours of 9 a.m. to 9 p.m.

Street must be fully opened by 9 p.m.

7. The street shall remain open for emergency vehicles and local traffic at all times.

8. No alcohol shall be consumed on the street right-of-way.

9. This permit relates only to the closing of the street. It does not relate to the type of activity, noise or any other aspect of the event. All other applicable and appropriate ordinances and laws apply.

Permission is hereby granted to__________________________________________________________ To close ____________________________________________________________________________ Between ____________________________________________________________________________ On __________________ from ________ _________
Address of applicant __________________________________________________________________ Signature of applicant ____________________________ Phone No. ____________________________

Condition(s) _________________________________________________________________________ ____________________________________________________________________________________ Event Name/Description_______________________________________________________________

FOR OFFICE USE ONLY
This permit must be signed by the Chief of Police in order to be valid.

1. Risk Management Date

2. Facilities & Community Services Dept. Date

3. Chief of Police Date

4. Municipal Utilities & Engineering Dept. Date
on April 16, 2023
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City Council Meeting I. 12.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the Memoranda of Understanding between HumanGood and the City of Redlands to provide preference for homeless elderly for certain units at Casa de la Vista and Fern Lodge Senior apartments within the City of Redlands (Assistant City Manager Boatman)
MOTION(S):

If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:

I move to approve the two Memoranda of Understanding between HumanGood and the City of Redlands to provide preference for homeless elderly for certain units at Casa de la Vista and Fern Lodge Senior apartments within the City of Redlands.

RECOMMENDATION:

Staff recommends that the City Council approve the Memoranda of Understanding between HumanGood and the City of Redlands to provide preference for homeless elderly for certain units at Casa de la Vista and Fern Lodge Senior apartments within the City of Redlands.

DISCUSSION:

According to the annual San Bernardino 2022 Point in Time Count (PIT Count) report, Redlands has 184 homeless persons living on the streets within the City.

Per the Department of Housing and Urban Development (HUD), a person is considered homeless only when they lack a fixed, regular, and adequate nighttime residence and reside in one of the following places: 1) places not meant for human habitation, such as cars, parks, sidewalks, and abandoned buildings; 2) an emergency shelter; 3) transitional housing for homeless persons and who originally came from the streets or emergency shelter; or 4) a Redlands Regular Meeting of 03/21/2023
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and who originally came from the streets or emergency shelter; or 4) a HUD-defined Safe Haven.

In the City's continued efforts to perform outreach and provide services to the City's homeless, the two attached Memoranda of Understanding (MOU) with HumanGood provide housing opportunities for elderly individuals who are homeless. HumanGood's mission is to provide preference for homeless elderly for certain units at Casa de la Vista and Fern Lodge Senior apartments.

HumanGood's goal is to collaborate with local government and community partners to identify those that fall into the criteria of "elderly" and "homeless" in the local communities. HumanGood has launched a program nationally to assist with the housing crisis for seniors on fixed incomes through "Homeward Bound", which assists in finding solutions to elder homelessness. "Homeward Bound" was borne out of HumanGood’s ongoing mission to meet the growing demands and needs for housing and supportive services among low-income older adults.

The purpose of the attached MOU's is to explain the roles and responsibilities of HumanGood and the City of Redlands in the provision of referrals and services at Fern Lodge and Casa de la Vista. With the approval of the attached MOU's, the City of Redlands will identify local homeless clients that fit HumanGood's eligibility criteria and refer those individuals for housing opportunities at Casa de la Vista and Fern Lodge Senior apartments located within the City of Redlands.

ALTERNATIVES:

The City Council may elect not to approve the two Memoranda of Understanding and direct staff accordingly.

STRATEGIC PLAN:

Priority B: Public Health and Safety
SUBMITTED BY:

Chris Boatman, Assistant City Manager
RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
PREPARED BY:

David Rabindranath, Homeless Solutions Coordinator
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Fiscal Impact
Fiscal Year: 2022-2024
Appropriation Required Y/N: N
Discussion:

There is no fiscal impact associated with the approval of these MOUs.

Attachments
Fern Lodge MOU
Casa De La Vista MOU
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MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding (“MOU”) is made and entered into as of March 21, 2023 (the “Effective Date”) by and between HumanGood Affordable Housing (“HGAH”) a California nonprofit public benefit corporation, and the City of Redlands(“Service Provider”) to provide preference for homeless elderly for certain units at Fern Lodge within the City of Redlands.

I. Background

HGAH provides affordable housing for older adults, including managing Redlands Senior Housing, Inc. dba Casa de la Vista (collectively, “Casa de la Vista” and “Owner”).

Fern Lodge has a preference for people experiencing homelessness. The chosen definition of homeless (as specified on the attached Homeless Preference Form), includes:

One member of the household who is 62 years or older that:
 Is living in a place not meant for human habitation, in an emergency shelter, or are exiting an institution where they temporarily resided (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, or local government programs for low-income individuals). Further, people will be considered homeless if they are exiting an institution where they resided for up to 90 days and were in a shelter or a place not meant for human habitation immediately prior to entering that institution.  Is losing their primary nighttime residence, which may include a motel or hotel or a doubled-up situation, including a car, park, abandoned building, bus or train station, airport, or camping ground, within 14 days and lack resources or support networks to remain in housing.  Has children or unaccompanied youth who are unstably housed and likely to continue in that state. This is a new category of homelessness, and it applies to families with children or unaccompanied youth who have not had a lease or ownership interest in a housing unit in the last 60 or more days, has had two or more moves in the last 60 days, and who are likely to continue to be unstably housed because of disability or multiple barriers to employment (subject to occupancy standards).
 Is fleeing or attempting to flee domestic violence, has no other residence, and lacks the resources or support networks to obtain other permanent housing. This category is similar to the current practice regarding people who are fleeing domestic violence, in accordance with the Violence Against Women’s Act (VAWA) final rule [ref: HUD §§ 5380, 5381, 5382, 5383].

II. Purpose
The purpose of this Memorandum of Understanding (“MOU”) is to explain the roles and responsibilities of HGAH and the City of Redlands in the provision of referrals and/or services at Fern Lodge located at 460 E. Fern Avenue, Redlands, CA.

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2 I:\cmo\Agreements\Fern_Lodge_MOU_FY22-0078 v2.docx-la III. Roles and Responsibilities
The City of Redlands is responsible for the following:
• Conduct outreach and identify potential referral applicants within 14 days of notification from Owner of an available housing unit.
• Provide the Owner with a referral package for each referred household, including the housing application, identification documentation, income and asset documentation, verification of homelessness, and verification of disability if applicable. • Provide services in Section IV to the referred residents at the resident's request. • Provide resources for Owner/property manager of the Fern Lodge to address issues comprising housing stability.

HGAH is responsible for the following:
• Provide City of Redlands the name and contact information of applicable property management staff and ensure that such staff is aware of the provisions of this MOU and their responsibilities hereunder.
• Provide Service Provider with timely notification of a vacancy. • Provide Service Provider with written copies of property rules and standard lease (including qualifying lease violations and eviction procedures), to which each tenant must adhere. • Promptly address and resolve any deficiencies in applications. • Make an eligibility determination within 30 days.

Contact the Service Provider immediately if referred resident is having any challenges or if a resident is in in violation of lease or other documented property rules within privacy laws.

IV. Services to be Provided
City of Redlands will provide the available services if requested by referred tenants in Fern Lodge:
• Screening of potential client of homelessness and referrals to Fern Lodge • Communication plans between all parties during tenancy issues • Coordination between Service Providers and onsite resident service coordinators to further support housed families
The services will be provided for:
• Communication plans during tenancy issues
• Data/reporting duties to track family outcomes

V. Period of MOU and Amendments
This MOU shall commence on March 21, 2 023, and terminate upon written notice provided in this Section. Either Party may terminate this MOU with or without cause upon thirty (30) days written notice to the other Party. Amendments to this written MOU may be made throughout the period of the MOU if in writing and signed by both Parties.

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VI. Miscellaneous Provisions.
(a) Own Costs. This MOU does not require either party to compensate the other party. Each party will be solely responsible for all of its own costs and expenses to carry out performance of such party’s obligations outlined in this MOU.

(b) Relationship of the Parties. It is understood that no relationship of employment, partnership, joint venture, or agency is created or intended to be created by this MOU and that each party is and shall at all times be an independent contractor with respect to the other party in meeting their respective responsibilities under this MOU. The governing body of each party shall have exclusive control of the policies, management, assets, and affairs of its respective institution. Nothing in this MOU is to be construed as either party assuming any liability for any debts or obligations of either a financial or a legal nature incurred by the other party to this MOU.

(c) Confidentiality. The parties shall protect the confidentiality of each other’s records and information, and shall not disclose the confidential information without the prior written consent of the other party. This confidentiality requirement shall survive the termination or expiration of this MOU.

(d) Compliance with Laws. The parties shall comply with all applicable laws, ordinances, codes, and regulations of federal, state, and local governments. Each party represents and warrants that it is aware of the requirements of the Healthcare Insurance Portability and Accountability Act of 1996, as amended (HIPAA), and will maintain records and practice in a manner consistent with HIPAA regulations. Each party represents and warrants to the other party that neither such party, nor any employee, agent, or contractor of such party who is expected to perform obligations under this MOU, has been excluded from participation in any federal health care program (as defined under 42 U.S.C.

Section 1320a-7b(f)). Each party will notify the other within 3 working days should it become excluded/suspended from participating in any such program.

(e) Governing Law. This MOU shall be governed by the laws of the State of California.

(f) Third-Party Beneficiaries. There are no third-party beneficiaries to this MOU.

[Remainder of this page is intentionally blank.]

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VII. Signatures

IN WITNESS WHEREOF, authorized representatives of the parties hereto have set forth their signatures to this MOU.

HUMANGOOD AFFORDABLE HOUSING Date:

Signature:

Print Name:

Title:

CITY OF REDLANDS

Signature: ______________________________________ Date: March 21, 2023

Printed Name: Eddie Tejeda

Title: Mayor

ATTEST:

______________________________________
Jeanne Donaldson, City Clerk

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MEMORANDUM OF UNDERSTANDING

This Memorandum of Understanding (“MOU”) is made and entered into as of March 21, 2023 (the “Effective Date”) by and between HumanGood Affordable Housing (“HGAH”) a California nonprofit public benefit corporation, and the City of Redlands (“Service Provider”) to provide preference for homeless elderly for certain units at Casa de la Vista within the City of Redlands.

I. Background

HGAH provides affordable housing for older adults, including managing Redlands Senior Housing, Inc. dba Casa de la Vista (collectively, “Casa de la Vista” and “Owner”).

Casa de la Vista has a preference for people experiencing homelessness. The chosen definition of homeless (as specified on the attached Homeless Preference Form), includes:

One member of the household who is 62 years or older that:
 Is living in a place not meant for human habitation, in an emergency shelter, or are exiting an institution where they temporarily resided (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, or local government programs for low-income individuals). Further, people will be considered homeless if they are exiting an institution where they resided for up to 90 days and were in a shelter or a place not meant for human habitation immediately prior to entering that institution.  Is losing their primary nighttime residence, which may include a motel or hotel or a doubled-up situation, including a car, park, abandoned building, bus or train station, airport, or camping ground, within 14 days and lack resources or support networks to remain in housing.  Has children or unaccompanied youth who are unstably housed and likely to continue in that state. This is a new category of homelessness, and it applies to families with children or unaccompanied youth who have not had a lease or ownership interest in a housing unit in the last 60 or more days, has had two or more moves in the last 60 days, and who are likely to continue to be unstably housed because of disability or multiple barriers to employment (subject to occupancy standards).
 Is fleeing or attempting to flee domestic violence, has no other residence, and lacks the resources or support networks to obtain other permanent housing. This category is similar to the current practice regarding people who are fleeing domestic violence, in accordance with the Violence Against Women’s Act (VAWA) final rule [ref: HUD §§ 5380, 5381, 5382, 5383].

II. Purpose
The purpose of this Memorandum of Understanding (“MOU”) is to explain the roles and responsibilities of HGAH and the City of Redlands in the provision of referrals and/or services at Casa de la Vista located at 686 E. Redlands Blvd, Redlands, CA.

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III. Roles and Responsibilities
The City of Redlands is responsible for the following:
• Conduct outreach and identify potential referral applicants within 14 days of notification from Owner of an available housing unit.
• Provide the Owner with a referral package for each referred household, including the housing application, identification documentation, income, and asset documentation, verification of homelessness, and verification of disability, if applicable. • Provide services in Section IV to the referred residents at resident’s request. • Provide resources for Owner/property manager of Casa de la Vista to address issues comprising housing stability.

HGAH is responsible for the following:
• Provide City of Redlands the name and contact information of applicable property management staff and ensure that such staff are aware of the provisions of this MOU and their responsibilities hereunder.
• Provide Service Provider with timely notification of a vacancy. • Provide Service Provider with written copies of property rules and standard lease (including qualifying lease violations and eviction procedures), to which each tenant must adhere. • Promptly address and resolve any deficiencies in applications. • Make an eligibility determination within 30 days.
• Contact the Service Provider immediately if referred resident is having any challenges or if a resident is in violation of lease or other documented property rules within privacy laws.

IV. Services to be Provided
City of Redlands will provide the available services if requested by referred tenants in Casa de la Vista:
• Screening of potential client of homelessness and referrals to Casa de la Vista. • Communication plans between all parties during tenancy issues. • Coordination between Service Providers and onsite resident service coordinators to further support housed families.

The services will be provided for:
• Communication plans during tenancy issues.
• Data/reporting duties to track family outcomes.

V. Period of MOU and Amendments
This MOU shall commence on March 21, 2023, and terminate upon written notice as provided in this Section. Either Party may terminate this MOU with or without cause upon thirty (30) days written Redlands Regular Meeting of 03/21/2023
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3 I:\cmo\Agreements\Casa_de_la_Vista_MOU_FY22-0079 v2.docx-la notice to the other Party. Amendments to this written MOU may be made throughout the period of the MOU if in writing and signed by both Parties.

VI. Miscellaneous Provisions.
(a) Own Costs. This MOU does not require either party to compensate the other party. Each party will be solely responsible for all of its own costs and expenses to carry out performance of such party’s obligations outlined in this MOU.

(b) Relationship of the Parties. It is understood that no relationship of employment, partnership, joint venture or agency is created or intended to be created by this MOU and that each party is and shall at all times be an independent contractor with respect to the other party in meeting their respective responsibilities under this MOU. The governing body of each party shall have exclusive control of the policies, management, assets, and affairs of its respective institution. Nothing in this MOU is to be construed as either party assuming any liability for any debts or obligations of either a financial or a legal nature incurred by the other party to this MOU.

(c) Confidentiality. The parties shall protect the confidentiality of each other’s records and information, and shall not disclose the confidential information without the prior written consent of the other party. This confidentiality requirement shall survive the termination or expiration of this MOU.

(d) Compliance with Laws. The parties shall comply with all applicable laws, ordinances, codes, and regulations of federal, state, and local governments. Each party represents and warrants that it is aware of the requirements of the Healthcare Insurance Portability and Accountability Act of 1996, as amended (HIPAA), and will maintain records and practice in a manner consistent with HIPAA regulations. Each party represents and warrants to the other party that neither such party, nor any employee, agent, or contractor of such party who is expected to perform obligations under this MOU, has been excluded from participation in any federal health care program (as defined under 42 U.S.C.

Section 1320a-7b(f)). Each party will notify the other within 3 working days should it become excluded/suspended from participating in any such program.

(e) Governing Law. This MOU shall be governed by the laws of the State of California.

(f) Third-Party Beneficiaries. There are no third-party beneficiaries to this MOU.

[Remainder of this page is intentionally blank.]

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IN WITNESS WHEREOF, authorized representatives of the parties hereto have set forth their signatures to this MOU.

HUMANGOOD AFFORDABLE HOUSING Date:______________
Signature: Print
Name:

Title:

CITY OF REDLANDS

Signature: ___________________________________________ Date: March 21, 2023

Printed Name: Eddie Tejeda

Title: Mayor

ATTEST:

_________________________________
Jeanne Donaldson, City Clerk
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City Council Meeting J. 1.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Annual Report of the Library Board of Trustees by William Hatfield (Library Director McCue)
DISCUSSION:

For this evening's City Council meeting, William Hatfield will be presenting the Library Board of Trustees annual report.

SUBMITTED BY:

Don McCue, Library Director
REVIEWED BY:

Charles M. Duggan, Jr., City Manager
Janice McConnell, Assistant City Manager
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City Council Meeting J. 2.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Receive and file the Annual Report from the Measure T Citizens' Oversight Committee for FY 2021-22 (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 2021-22.

RECOMMENDATION:

Staff recommends that Council receive and file the annual report from the Measure T Citizens' Oversight Committee for FY 2021-22.

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 2021-22.

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
Janice McConnell, Assistant City Manager
Fiscal Impact
Discussion:

There is no fiscal impact associated with the recommended motion.

Attachments
Measure T Citizens’ Oversight Committee FY 2021-22 Annual Report Redlands Regular Meeting of 03/21/2023
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Measure T Citizens’ Oversight Committee
FY 2021‐22 Annual Report

March 21, 2023

Summary & Background

The Measure T Citizens’ Oversight Committee provides oversight  of Measure T sales tax revenue. This Annual Measure T Report covers the fiscal year beginning July 1, 2021 through June 30, 2022.

Measure T is a one‐cent sales tax, approved by the voters of the City of Redlands, that became effective April 1, 2021.  The stated purpose  of the tax was to provide fu nding for safety services, fire protection, paramedics, 911 emergency response, addressing homelessness, po lice patrols and crime prevention, maintaining library services, parks, sidewalks, and roads, keeping public areas well‐maintained and other general services.  The measure included a provision for the formation of a Citizens’ Oversight Committee, further described in Chapter 2.72 in the Redlands Municipal Code.

The  Oversight  Committee  was  established  to  serve  as  an  advisory  body  to  the  City  Council  and  to periodically review the revenues and expenditures of Measure T monies.  The seven‐member committee is comprised of five (5) citizen members from each Council dist rict and two (2) members representing the  City’s  employee  bargaining units.    The  committee  shall  advise  the  Council  regarding  the  use  of Measure T revenue, according to the priorities set forth in each fiscal year adopted budget. This includes an  annual  written  report  to  the  Council  that  summarizes  the  committee’s  proceedings  and  activities during the most recent review period.

For fiscal year (FY) 2021‐22, C ity Council made the decision to  prioritize the following expenditures in the Adopted Budget.
 Continue  funding  additional  public  safety  staffing,  as  well  as s t a f f i n g  f o r  o t h e r  c r i t i c a l services
 Restoring vehicle leases and equipment purchases for Fire & Police  Restoring contract services for the maintenance of parks, streets, and City facilities  Addition of Capital Projects ‐
o Animal Shelter Improvements
o Park Infrastructure Upgrades & Improvements
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o Streetlighting Infrastructure Improvements
o Street Infrastructure Repairs
 Partial funding for the purchase of State Street City Hall  B u i l d i n g  r e s e r v e s  f o r  p u b l i c  s a f e t y  a n d  h o m e l e s s n e s s ,  A D A  &  s i dewalk  repairs,  and  future city/public safety facilities

During FY 2021‐22, the City received a total of $20.7 million in Measure T sales tax. This was roughly $1 million higher than the updated 12‐month budget estimates for FY 2021‐22. (12‐month estimates are produced for the current year during the budget planning stages for the upcoming  year.)  After experiencing the effects of the COVID‐19 pandemic, sales have bounced back significantly in FY 2021‐22. Consumer spending remained strong, despite high inflation pushing prices up.  Stronger than anticipated fiscal year‐end Measure T sales tax revenues are a result of this higher consumer spending and demonstrate the vibrancy and resilience of the City’s local economy.

Committee Proceedings
Between May 2022 and March 2023, the Committee met a total of three (3) times.  In May 2022, the Committee met to receive a budget presentation from staff. The proposed budgets for Measure T expenditures for fiscal years  2023  and  2024  were  explained  and  discussed  with  detailed  descriptions  of  the  itemized  spending categories.  The  proposed  budget  included  new  staffing  for  police,  fire,  Library  and  Facilities  &  Community Services departments. It also included service enhancements, specialized law enforcement equipment, alley & s i d e w a l k  p r o j e c t s ,  a s  w e l l  a s  t r e e  t r i m m i n g  o f  2 5 %  o f  t h e  C i t y ’s  urban  forest.  The  committee  discussed  the proposed budget in detail, with a particular focus on staffing for public safety.

In February 2023, the Committee met to review the draft Measure T audited financials and draft annual report.

Over the course of the next meeting, the Committee discussed options to express its opinion on the expenditure of Measure T funds, including the presentation of the annual report to the City Council as well as other avenues to communicate to the broader public & community.

During  its  meeting  of  March  1,  2023,  the  Committee  reviewed  and  approved  the  report  (contained  herein) pending some revisions and clarifications. It was decided that  the next meeting of the Committee would be closer to the presentation of the City Manager’s mid‐biennium budget review, potentially in June 2023.

Financial Summary Information
The total General Fund Revenue for fiscal year (FY) 2021‐22 was approximately $111.9 million. Measure T sales tax revenue represents 18% of these funds, or $20.7 million.  T hese revenues were collected between July 1, 2021 and June 30, 2022.  See Figure 1.

Actual Measure T revenues exceeded budget primarily due to the  conservative approach in budgeting major tax revenues to compensate for th e impacts of the COVID‐19 pand emic and general economic recovery.  The passage of Measure T continues to stabilize the City budget and allowed the City to deliver on the expectations and  desires  of  our  community.  This  includes  efforts  towards  enh anced  services  in  public  safety  and Redlands Regular Meeting of 03/21/2023
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infrastructure maintenance, as well as bringing back Library ho urs to pre‐COVID levels and restoring general maintenance  contracts  for  park  and  street  upkeep.    Measure  T  is  allowing  the  City  to  make  significant investments  in  park  improvements,  fleet  and  heavy  equipment  replacement,  and  the  addition  of  staff  to enhance service delivery.

Figure 1.

Below are a few key statistics related to the collection of Measure T:
 Online sales continued to boost Measure T revenue and overall sales tax.  Taken together, both Basic Sales tax and Measure T sales tax comprise 43% of General Fund revenue, overtaking Property Tax as the largest contributor to General Fund revenue for the first time ever.  Measure  T  brought  in  roughly  $16  million  more  this  year,  represe n t i n g  a  f u l l  1 2 ‐ m o n t h  p e r i o d  o f revenue. In FY 2021, Measure T was only collected during the la st quarter (last 3 months) of the fiscal year.

Figure 2 on the following page describes the adopted budget ite ms, the amount budgeted, and spending before June 30, 2022.  Since actual Measure T revenues exceeded budget, certain projects were incorporated into the Measure T spending plan as long as they were appropria te in nature given the Measure T ballot language.  The Committee notes that because Measure T revenue is a general sales tax comingled with other General  Fund  revenue  and  pooled  for  General  Fund  expenditures, it  is  not  possible  to  trace  all  specific expenditures back to Measure T revenue.

Property Tax
32%
Basic Sales
Tax
25%
Measure T
Sales Tax
18%
Other
Revenue
21%
Transfers In
4%
General Fund Revneue
By Source
FY 2021‐22
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Figure 2.

During FY 2022, many noteworthy projects and critical staffing needs received funding from Measure T. To start, public safety needs received a total of approximately $9.6 mill ion in Measure T funds. The Police Department received funding for restoring 5 police officer positions and various other administrative and technical staff.  In addition to this, IT enhancements exceeded the original budget figures due to the need to expand the scope of the  project  to  include  comprehensive  design  and  support  services  for  a  new  backup  and  disaster  recovery technology. The Police Department also received funding for bod y‐worn cameras, the addition to the Public Safety/Homelessness reserve, and the addition of gates and fencing around their facilities.

Spending from the Approved Budget FY 2021‐22
Public Safety
Restore 5 police officers, various other positions 1,217,408$        1,217,408 $     ‐ IT infrastructure and services for PD 288,000             496,000           208,000 Restoration of Fire personnel, including Community Risk Reducti on 218,481             218,481           ‐ Enhanced custody transport services 100,000             150,000           50,000 Body‐worn camera purchase 242,359             478,065           235,706 Additional police and fire personnel 379,935             379,935           ‐ Purchase of 3 fire trucks/engines 3,000,000          3,614,377        614,377 Addition to Public Safety / Homelessness Reserve 2,530,000          2,530,000        ‐ Police vehicles 368,983             368,983           ‐ Police facility security improvements 150,000             101,376           (48,624) subtotal 9,554,625
Public Infrastructure
Tree trimming for 25% of City trees 1,000,000          1,221,800        221,800 FCS rolling stock / equipment 700,000             317,003           (382,997) Restored and enhanced contractual service for general maintenan ce 750,000             672,809           (77,191) LED Streetlight Replacement Project 1,315,686          1,315,686        ‐ State Street City Hall purchase (general govt, fire admin, downtown police services, etc.) 2,800,000          3,000,000        200,000 ADA Ramp & Curb construction 500,000             377,250           (122,750) Addition to Reserve for ADA & Sidwalk repairs and maintenance 1,000,000          1,000,000        ‐ Addition to Reserve for Future Public Facilities 850,000             1,000,000        150,000 subtotal 8,904,548
Quality of Life
Library staffing restored 154,407             154,407           ‐ Animal Shelter Facility Improvements 200,000             48,577              (151,423) Park Infrastructure Improvements 363,929             363,929           ‐ Redlands Bowl Improvements 700,000             1,200,000        500,000 Addition of personnel citywide (maintenance, recreation, etc.)  439,706             439,706           ‐ subtotal 2,206,619
FY 2021‐2022 EXPENDITURES TOTAL 19,268,894      20,665,792    1,396,898 Adopted Budget
FY 2021‐22
Actua l
FY 2021‐22
Difference
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The Fire Department received funding for the purchase of two (2 ) Type 1 engines and 1 tractor‐drawn aerial engine  (Ladder  Truck).  The  City  received  the  Type  1  engines  in the  summer  of  2022  and  anticipates  taking delivery of the tractor‐drawn aerial engine by April 30, 2023. In addition to funding to purchase the fire engines, funding to hire a deputy fire marshal and a fire prevention inspector was also authorized.

Two brand new Redlands Fire Type 1 Engines

Brand new Redlands Fire Ladder Truck

In terms of public infrastructure, there are several areas in which Measure T has been invested: tree trimming, street  &  signal  light  repair,  ball  field  maintenance  and  construction  of  new  ball  fields,  general  park  repairs, restriping of streets and crosswalks, and ADA ramp and sidewalk replacement.

 9,419 trees were trimmed, including park and street trees. This  is seven times more than the previous annual average trimming level. Also, 320 dead trees were removed (double the previous average).  Regular maintenance to over 800 acres of parks and trails was restored, including maintenance to 18 city parks, the downtown area, and landscaping at City Hall.  Removed & replaced 506 linear feet of curb and gutter at 48 different locations Redlands Regular Meeting of 03/21/2023
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 Installed and replaced approximately 60 ADA ramps throughout the City  Contract underway to replace roughly 4,800 City‐owned streetlights and 70 traffic signals with energy‐ efficient LED lights
 Removed and replaced approximately 25,000 linear feet of damaged/raised sidewalk

Tree Trimming Efforts – before & after (Cypress Ave.)

Sidewalk Replacement Project

Lastly, Measure T enabled investment into enhancing and restoring certain ‘quality of life’ service levels for the community. Some examples of this include:

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 Restoration of A. K. Smiley Library staffing, increasing the public service hours to pre‐pandemic levels of 56 hours/week.
 The  Library  was  also  able  to  resume  instructional  and  entertainment  programming  (adult  literacy, computer  classes,  musical  and  cultural  events  like  Family  Day  and  Dia  de  los  Muertos)  in  both  the assembly room and the Contemporary Club.
 Library  funding  also  includes  the  addition  of  two  part‐time Museum  attendants  for the  opening  and operation of the Museum of Redlands
 Completed fencing and concrete replacement at the Animal Shelte r, as well as the addition of hiring of 2 kennel attendants (representing ‘restoration’ of pre‐pandemic positions).  Additional park improvements include the restoration of Ford Park ponds, construction of the Israel Beal baseball field; the rehabilitation of the Redlands Bowl roof, l ighting, and seating; and the creation of 8 new pickleball courts.

Israel Beal Baseball Field construction – before & after

Tennis Court to Pickleball Court conversion – before & after

Conclusions
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The Measure T Citizens’ Oversight Committee has reviewed the re venues and expenditures of the Measure T sales tax and found that they were collected and appropriately spent in accordance with the City’s budget plan a n d  t h e  o r i g i n a l  i n t e n t  o f  M e a s u r e  T ,  a n d  t h a t  t h e  C i t y ’ s  F Y  2 021‐22  General  Fund  Adopted  Budget  both promoted and maintained the City’s core services, including public safety.

Measure T continues to be critical for funding essential city s ervices and infrastructure projects. Additionally, the City is actively working to promote economic development wi thin Redlands to expand and diversify the tax  base  to  provide  more  long‐term  revenue  stability.  The  combination  of  dedicated  local  revenue  from Measure T and a growing local economy provides the local revenu e to deliver the services and infrastructure that the residents of Redlands desire.

The Citizens’ Oversight Committee understands the passage of Measure T represents a trusted investment by R e d l a n d s  r e s i d e n t s .  W e  b e l i e v e  M e a s u r e  T  f u n d s  a r e  b e i n g  u s e d  as  intended  for  the  betterment  of  the community. During the review period, City staff have worked to provide transparent and accurate information to the Committee.

The  Citizens’  Oversight  Committee  looks  forward  to  the  continue d  improvements  to  public  safety  and infrastructure in the coming years made possible through Measure T.

Sincerely,

T o n i   M o m b e r g e r ,   C h a i r ,   D i s t r i c t   4 Ruth Cook, Secretary, District 1
Edward Ico, District 2
Shelli Stockton, District 5
Mike Foster, Non‐Public Safety Bargaining Unit
Joe Valdivia, Public Safety Bargaining Unit

MEASURE T CITIZENS’ OVERSIGHT COMMITTEE
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City Council Meeting J. 3.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: National Mayors Challenge for Water Conservation (Municipal Utilities and Engineering Director Harris)
DISCUSSION:

The National Mayors Challenge for Water Conservation is a campaign to engage residents in water-saving activities. Participants make various water conservation pledges (i.e., taking shorter showers, reducing lawn irrigation, etc.) and the cumulative annual water savings is estimated. Cities “compete” within population categories nationwide and participants are eligible for prizes.

Tonight, Municipal Utilities and Engineering Director Harris will present more information on how to participate as a city.

SUBMITTED BY:

Jasmine Clark, Water Conservation Specialist
Attachments
Mayor's Challenge Council Presentation
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Wyland National
Mayor’s Challenge for
Water Conservation
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What is the Wyland National
Mayor’s Challenge?
• A friendly competition between cities
across the US to see who can be the
most “water-wise.”
• Mayors nationwide will challenge
their residents to conserve water,
energy and other natural resources
on behalf of their city through a
series of informative, easy-to-use
pledges online.

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Why get involved as a City or as
the Mayor?
• With no costs to cities or tax-payers,
the Mayor’s Challenge offers a
compelling, positive way to motivate
residents to conserve water and
energy resources.
• Creates a legacy for you and your
city by reaffirming your commitment
to protecting natural resources and
reducing your city’s “water
footprint.”
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What are the benefits of
participating?
• Recognizes and rewards residents
who are committed to making a
difference in your community
• Residents who pledge earn a chance
to win water-saving prizes, including
up to $3,000 in paid utilities
• Win a Toyota Hybrid SUV for a local
charity
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How can Redlands join in on the
celebration?
• Go to
https://wylandfoundation.org/programs/
national-mayors-challenge-for-water-
conservation/
• Complete the challenge form
• Wyland will send promotion materials,
water saving activities for residents, and
ideas for making our city water
challenge a success
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Thank You!
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City Council Meeting K. 1.

DATE: 03/21/2023
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of a Purchase and Sale Agreement with Cathy Macknet, Mark Macknet, and Kenneth Macknet for the acquisition of APN 0300-451-13-0000, APN 0300-451-14-0000, APN
0300-451-24-0000, and 0300-451-25-0000 for $1,400,000,
authorization for the Mayor to execute the contract documents, and determination that this action is exempt from environmental review pursuant to Section 15061(b)(3) of 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 that City Council determine approval of a Purchase and Sale Agreement with Cathy Macknet, Mark Macknet, and Kenneth Macknet for APN 0300-451-13-0000, APN 0300-451-14-0000, APN 0300-451-24-0000, and APN 0300-451-25-0000 for $1,400,000 is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act; and I move approval of a Purchase and Sale Agreement with Cathy Macknet, Mark Macknet, and Kenneth Macknet for the acquisition of APN 0300-451-13-0000, APN 0300-451-14-0000, APN 0300-451-24-0000, and APN 0300-451-25-0000 for $1,400,000 and authorization for the Mayor to execute the contract documents.

RECOMMENDATION:

Staff recommends the City Council determine approval of a Purchase and Sale Agreement with Cathy Macknet, Mark Macknet, and Kenneth Macknet for the acquisition of APN 0300-451-13-0000, APN 0300-451-14-0000, APN 0300-451-24-0000, and APN 0300-451-25-0000 for $1,400,000 is exempt from environmental review pursuant to Section 15061(b)(3) of the California Redlands Regular Meeting of 03/21/2023
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Environmental Quality Act. Additionally, staff recommends City Council approve the Purchase and Sale Agreement with Cathy Macknet, Mark Macknet, and Kenneth Macknet for the acquisition of APN 0300-451-13-0000, APN 0300-451-14-0000, APN 0300-451-24-0000, and APN 0300-451-25-0000 for $1,400,000 and authorization for the Mayor to execute the contract documents.

DISCUSSION:

The Municipal Utilities and Engineering Department (MUED) operates and maintains eighteen (18) water storage reservoirs, sixteen (16) of which are connected to the potable water distribution system, to serve residential and commercial customers within Redlands, Mentone, Loma Linda, and San Bernardino. Typical potable water demand during the peak water use months of July through September is approximately thirty-five million gallons per day, and the entire water storage and distribution system capacity (including pipelines) is approximately fifty-five million gallons. Storage reservoirs are located at seven (7) different elevations ranging from 1,350' to 2,600' to meet minimum pressure and flow rates for a variety of water uses. Thirteen (13) of the potable water storage reservoirs are constructed of steel. Generally, these steel reservoirs do not meet minimum seismic design standards and will need to be seismically retrofit in the future, which is not typically a cost-effective alternative when compared to replacing the reservoir entirely.

The three million gallon Sunset Reservoir was constructed of steel in 1967 and does not meet modern-day seismic resistivity standards. Other than being repainted in 1980, no significant maintenance has been accomplished since construction. The reservoir is rather tall (64'), which potentially subjects it to catastrophic failure due to water sloshing within the reservoir during a significant seismic event. This reservoir is located in the 2,340' pressure zone and is a critical potable water infrastructure asset. Richard Brady & Associates, Inc. recently completed a Condition, Seismic, and Structural Assessment of all City water reservoirs and cautioned MUED staff of the likelihood for the Sunset Reservoir to collapse during a significant seismic event. Soon after, staff met with the owners of an adjacent, unimproved property to negotiate a lease agreement for the construction and operation of a temporary water storage reservoir to allow the demolition and replacement of the existing Sunset Reservoir. City Council approved this Lease Agreement recently and MUED is currently leasing a portion of the property for $1,500/month. During the initial meeting, the property owners expressed an interest in selling the property to the City. Soon after, they issued an unsolicited Letter of Intent with proposed purchase agreement terms. The property owners also provided a recently completed Appraisal Report (attached).

The property is comprised of four (4) parcels totaling approximately twenty-two (22) acres, and is owned by the Macknet family. The Macknet family appraisal, completed by Colliers International Valuation & Advisory Services, values the property at $1.8M. The four (4) lots were recently marketed for bulk sale for a Redlands Regular Meeting of 03/21/2023
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property at $1.8M. The four (4) lots were recently marketed for bulk sale for a price of $1,994,500. All parcels are currently zoned for residential use. A Tentative Tract Map (20011) was developed in 2015, but was not advanced.

The Macknet family proposal offers a rare opportunity for the City to mitigate the impact of future drought conditions by expanding water storage capacity at the City's second highest pressure zone (2,340'). For example, two (2) fifteen million gallon storage reservoirs could be constructed on the property directly east of the existing Sunset Reservoir (concept attached). These concrete reservoirs could serve a larger percentage of the Redlands customer base, and would be engineered to withstand future significant seismic events. Construction of the first concrete reservoir and associated piping and pumping improvements would allow the elimination of seven (7) additional reservoirs, four (4) of which are constructed of steel.

On January 18, 2022, City Council directed MUED staff to negotiate a fair and reasonable purchase price for the acquisition of the four (4) Macknet parcels, which are identified as APN 0300-451-13-0000, APN 0300-451-14-0000, APN 0300-451-24-0000, and APN 0300-451-25-0000. Staff contracted with Towers & Associates Real Estate Appraisal and Consultation (Towers) to assess the value of these parcels. Towers determined the combined value of these parcels is $882,000 based on comparable undeveloped parcels in the area. MUED staff met with the Macknets several times and negotiated a purchase price of $1,400,000 for all four (4) parcels totaling 22.05 acres in area. Although this price exceeds the Towers valuation, purchasing these parcels would significantly reduce the Sunset Reservoir replacement cost.

MUED staff recently received bids, the lowest of which is approximately $2.5M, from qualified contractors to supply and construct a 750,000-gallon steel temporary reservoir to be installed on the property currently leased from the Macknets. This temporary reservoir would be necessary to store potable water for the Sunset Reservoir to be demolished and reconstructed in it's existing location. Purchasing these parcels will allow a new reservoir to be constructed east of the Sunset Reservoir prior to demolishing the existing reservoir, avoiding the need to install a temporary reservoir and reducing construction costs by approximately $2.5M. Purchasing these parcels will also allow for termination of the Lease Agreement resulting in an annual savings of $18,000.

Approval of the Purchase and Sale Agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act because it can be determined with certainty that there is no possibility that approval will result in a direct or reasonably foreseeable indirect significant impact on the environment.

ALTERNATIVES:

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City Council may deny the staff recommendation and provide alternate direction.

STRATEGIC PLAN:

N/A
SUBMITTED BY:

John R. Harris, Municipal Utilities and Engineering Director RECOMMENDED BY:

Charles M. Duggan Jr., City Manager
REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:

John R. Harris, Municipal Utilities and Engineering Director Fiscal Impact
Fiscal Year: FY 2022-23
Revenue Generating: N
Appropriation Required Y/N: N
Budgeted Y/N: Y
Account No.: 501910
Discussion:

There is no fiscal impact associated with this action. The FY 22/23 MUED Redlands Regular Meeting of 03/21/2023
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There is no fiscal impact associated with this action. The FY 22/23 MUED Water Projects Budget (501910) includes $2,500,000 for the Temporary Sunset Reservoir Project that will not be expended. This approval results in a savings of $1,100,000.

Attachments
Macknets Property Appraisal
Redlands Property Appraisal
APN Map
Sunset Reservoir Expansion Concept
Purchase and Sale agreement
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FOUR LOTS, HELEN COURT
Redlands, San Bernardino County, California

APPRAISAL REPORT
Date of Report: November 15, 2021
Colliers File #: FCH210690

PREPARED FOR
Mr. Mark Macknet
On behalf of the Macknet Family

PREPARED BY

COLLIERS INTERNATIONAL

VALUATION & ADVISORY SERVICES

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LETTER OF TRANSMITTAL

COLLIERS INTERNATIONAL

VALUATION & ADVISORY SERVICES

7485 N. Palm Avenue, Suite 110
Fresno, CA 93711 USA
MAIN 559 221 1271
FAX 559 222 8744
WEB www.colliers.com
Colliers International Valuation & Advisory Services, and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 500+ offices throughout more than 63 countries worldwide.

Letter of Transmittal

November 15, 2021

Mr. Mark Macknet
On behalf of the Macknet Family

Re: Four Lots, Helen Court
Redlands, San Bernardino County, California
Colliers File #: FCH210690

Mr. Macknet:

Pursuant with our engagement, the above captioned property was appraised utilizing best practice appraisal principles for this property type. This appraisal report is intended to satisfy the scope of work and requirements agreed upon by Mark Macknet and Colliers International Valuation & Advisory Services (CIVAS).

At the request of the client, this appraisal is presented in a n appraisal format as defined by USPAP Standards Rule 2-2(a). This format provides a description of the appraisal process, subject and market data and valuation analyses.

The purpose of this appraisal is to develop an opinion of the aggregate retail market value of the fee simple interest in the subject property. The following conveys the final opinion of market value of the subject property that is developed within this appraisal report:

The subject is known as “ Four Lots, Helen Court ” is four residential lots located on Helen Court in Redlands, San Bernardino County, California 92373. They are further identified as assessor’s parcel numbers: 0300-451- 24-0000, 0300-451-13-0000, 0300-451-14-000, and 0300-451-25-000.

The lots range in size from 2.50 to 8.57 acres. They are located in the City of Redlands and zoned SP -59, for residential uses. Access is by Helen Court, which is a paved city -maintained road. Utilities are available in the immediate area. The lots enjo y expansive valley views, and the highest and best use is for residential estate development.

The COVID-19 virus (aka coronavirus) is a serious illness and pandemic that has affected the world and more specifically the United States. The effects thus far include volatility in the stock and capital markets. The impact to demand and ultimately values for real estate is also developing, although there is a wide range of viewpoints with very little consensus on the potential impact. The range of views from market participants suggests the risk premium is widening and we should analyze implications to bo th near -term and longer -term valuation assumptions. Real estate as an investment type historically takes a longer period of time to be impacted in comparison to alternative investment types, such as stocks and bonds. CIVAS professionals have consulted with

SUBJECT EFFECTIVE DATE VALUE
Helen Court Vacant Land November 11, 2021 $1,800,000
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LETTER OF TRANSMITTAL

CONTINUED
© 2021 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES FCH210690
market participants in preparation of this assignment to understand and best address how the subject property may be impacted. There does not appear to be an impact on residential real estate in Southern California which has experienced sustained appreciation due to strong demand and limited supply.

The analyses, opinions and conclusions communicated within this appraisal report were developed based upon interpretation of the requirements and guidelines of the current Uniform Standards of Professional Appraisal Practice (USPAP). This appraisal has been prepared in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP).

The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. USPAP defines an Extraordinary Assumption as, “an assumption, dire ctly related to a specific assignment, as of the effective date of the assignment results, which , if found to be false, could alter the appraiser’s opinions or conclusions. USPAP defines a Hypothetical Condition as, “that which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purpose of analysis.”

The Extraordinary Assumptions and/or Hypothetical Conditions that were made during the appraisal process to arrive at the opinion of value are fully discussed below. The client is advised to consider these issues carefully given the intended use of this appraisal, as this use might have affected the assignment results.

Extraordinary Assumptions
No Extraordinary Assumption were made for this assignment.

Hypothetical Conditions
No Hypothetical Conditions are used for this assignment.

The opinion of value reflects conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided, as presented in this report, and does n ot predict future performance. Changing market or property conditions can and likely will have an effect on value.

The signature below indicates assurance to the client that the development process and extent of analysis for this assignment adhere to the scope requirements and intended use of the appraisal . If you have any specific questions or concerns regarding the attached appraisal report, please contact the individuals listed below.

Sincerely,

COLLIERS INTERNATIONAL

VALUATION & ADVISORY SERVICES

_______________________________
Jake Cutler

Valuation Associate
California Certified General Appraiser: 3006652
Arizona Certified General Appraiser: 1004668
Hawaii Certified General Appraiser: 1317
(559) 676-6975
[email protected]

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TABLE OF CONTENTS

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Table of Contents
Executive Summary ................................................................................................................................................ 1 Authorization ....................................................................................................................................................... 2 Purpose ............................................................................................................................................................... 2 Client Identification ............................................................................................................................................. 2 Intended Use ....................................................................................................................................................... 2 Intended Users .................................................................................................................................................... 2 Previous Appraisal .............................................................................................................................................. 2 Assignment Dates ............................................................................................................................................... 2 Scope of Work .................................................................................................................................................... 2 Definition of Value ............................................................................................................................................... 3 General Area Description, Limiting Conditions .................................................................................................. 3 Market Area Summary ............................................................................................................................................ 5 Micro- Market ...................................................................................................................................................... 6 Site & Improvement Description ............................................................................................................................. 9 Identification ........................................................................................................................................................ 9 Location & Access .............................................................................................................................................. 9 Title History ....................................................................................................................................................... 10 Occupancy ........................................................................................................................................................ 10 Easements and Encumbrances........................................................................................................................ 11 Assessments and Taxes................................................................................................................................... 11 Zoning ............................................................................................................................................................... 11 Flood Zone ........................................................................................................................................................ 14 Fault-Rupture Hazard Zone .............................................................................................................................. 14 Utilities ............................................................................................................................................................... 14 Property Description and Land Use ................................................................................................................. 15 Toxic and Hazardous Waste ............................................................................................................................ 17 S.W.O.T. Analysis ............................................................................................................................................. 17 Highest and Best Use ........................................................................................................................................... 19 As Vacant ...................................................................................................................................................... 19 Valuation ............................................................................................................................................................... 20 Sales Comparison Approach ................................................................................................................................ 22 Land Valuation .............................................................................................................................................. 22 Sales Comparison Approach Conclusion ..................................................................................................... 27 Reconciliation of Value ......................................................................................................................................... 28 Presentation of Value Conclusions ...................................................................................................................... 28 Exposure Time & Marketing Period .................................................................................................................. 28 Appraiser’s Certification ........................................................................................................................................ 30 Assumptions & Limiting Conditions ...................................................................................................................... 31 Addenda ................................................................................................................................................................ 34 Qualifications .................................................................................................................................................... 34 Glossary ................................................................................................................................................................ 35 CIVAS Overview ................................................................................................................................................... 44

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EXECUTIVE SUMMARY

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Executive Summary

Description/Use: The property is four vacant residential lots.

Identification: Assessor’s Parcel Number s: 0300-451-24-0000, 0300-451-13-0000, 0300-451-14-000 and 0300-451-25-000.

Size: See Identification Section.

Address/Location: No address, Redlands, San Bernardino County, California 92373.

Coordinates: Latitude: 34.014892°; Longitude: -117.137124°.

Access: Paved fee simple access from Helen Court.

Topography: Variable, with portions steep. Each parcel has some flat areas which would be natural building sites.

Shape: Irregular.

Ownership: Kenneth D. Macknet, II, a married man as his sole and separate property, Mark R.

Macknet, a married man as his sole and separate property, and Cathy A. Macknet , a married woman as her sole and separate property, all as joint tenants

Tenure: Fee Simple Estate.

Utilities: Typical municipal utilities are in the vicinity of the subject.

Buildings: None.

Flood Zone: Zone X (no hazard).

Highest & Best Use: Estate residential development.

Conclusion: Aggregate value of $1,800,000.

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IDENTIFICATION OF APPRAISAL ASSIGNMENT

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AUTHORIZATION

Colliers International Valuation & Advisory Services was authorized by Mr. Mark Macknet to perform this assignment.

PURPOSE

The purpose of this appraisal is to formulate and present an opinion of the current aggregate retail value of the four lots which comprise the real property known as the Four Lots, Helen Court.

CLIENT IDENTIFICATION

This appraisal report is completed for the sole use and benefit of the client and intended user, Mark Macknet.

INTENDED USE

The intended use of this appraisal is for internal decision making. This report is not intended for any other use.

INTENDED USERS

In addition to the client, intended users include the entire Macknet Family. No other parties other than those named are intended to use this report.

PREVIOUS APPRAISAL

The appraiser has not performed services on the property as an appraiser within three years. No services have been performed in any other capacity.

ASSIGNMENT DATES

Date of Report: November 15, 2021
Date of Observation: November 11, 2021
Valuation Date “As Is”: November 11, 2021, a current date

SCOPE OF WORK

The scope of the appraisal required collecting primary and secondary data relative to the subject property.

Physical information was collected and o btained from appropriate governmental agencies/ sources and a physical site observation. The physical observation included the specific gathering of any items which may impact value, either positively or negatively. Observation of the property is limited t o those things readily observable without the use of special testing or equipment.

Physical observation of property:
• The property was visited by Jake Cutler, ARA.

Identification of property:
• County assessor records and maps
• Legal description
• Aerial photography
• Physical observation

Land use and physical data:
• Zoning, general plan, and land use maps and documents • County assessor and tax collector records
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• FEMA flood maps
• Fault hazard maps
• Topographic maps
• Road and area maps
• Population demographics
• Physical observation

Types of comparable sales discovered, considered, and analyzed:
• Residential Lots

Locations of comparable sales considered:
• 92373 Zip Code

Valuation approaches utilized:
• Sales Comparison

Valuation approaches deemed not relevant or necessary:
• The cost approach is not applicable in the valuation of vacant land. • The income approach was considered but residual analysis or subdivision analysis would require making speculative assumptions which would impact the credibility of these analyses.

This data has been analyzed and confirmed whenever possible, leading to the value conclusion set forth in this appraisal. All data considered material to the appraisal was reported. The valuation process involved utilizing all techniques and procedures considered appropriate to the assignment. The approaches utilized were considered to yield a credible opinion of value of the specific use of the intended user of this report.

DEFINITION OF VALUE

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date, and the passing of title from seller to buyer under conditions whereby:

1. buyer and seller are typically motivated;

2. both parties are well informed or well advised, and acting in what they consi der their own best interests;

3. a reasonable time is allowed for exposure in the open market;

4. payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto; and

5. the price represents the normal con sideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Office of the Comptroller of the Currency , [OCC] 1 under 12 CFR, Part 34, Subpart C -Appraisals, 34.42 Definitions [g], 01/01/04 edition)

GENERAL AREA DESCRIPTION, LIMITING CONDITIONS

An integral part of this appraisal report is the Limiting Conditions, which are located in the addendum. The reader must review these items before proceeding in order to understand the process and limitations of this appraisal report. The client is advised that these contingent and limiting conditions may materially affect the value opinion, other conclusions, and analyses set forth in the appraisal report.

The reader is also urged to visit the section in the addendum outlining the basic general area data for the subject property, which touches on the general physical and geographical characteristics, as well as the social, economic and governmental considerations impacting the subject market.

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Unless otherwise explained or defined in this report, all terms and concepts are to be taken at their common meaning or as defined in accepted appraisal textbooks.

Before continuing on with the discussion of the physical characteristics of the subject property, a brief neighborhood, or market area summary of the subject market is warranted.

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MARKET AREA SUMMARY

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Market Area Summary

The subject property is located in Redlands , in San Bernadino County in the Southern California region of California. It is in the Riverside- San Bernadino-Ontario CBSA.

Below is a demographic study of the area , sourced by Pitney Bowes/Gadberry Group - GroundView®, an on- line resource center that provides information used to analyze and compare the past, present, and future trends of properties and geographical areas. Please note that our demographics provider sets forth income projections in constant dollars which , by definition, reflect projections after adjustment for inflation. We are aware of other prominent demographic data providers that project income in current dollars, which do not account for inflation.

A simple comparison of projections for a similar mar ket area made under the constant and current dollar methodologies can and likely will produce data points that vary, in some cases, widely. Further, all forecasts, regardless of demographer methodology(ies), are subjective in the sense that the reliability of the forecast is subject to modeling and definitional assumptions and procedures.

REGIONAL AREA DEMOGRAPHICS

YEAR US CA CBSA YEAR US CA CBSA

POPULATION NUMBER OF HOUSEHOLDS
2010 Total Population 308,745,538 37,253,956 4,224,851 2021 125,920,087 13,037,531 1,373,399 2021 Total Population 331,582,303 39,594,139 4,722,982 2026 130,248,641 13,291,263 1,412,794 2026 Total Population 342,006,764 40,714,038 4,944,868 CAGR 0.7% 0.4% 0.6% 2010 - 2021 CAGR 0.7% 0.6% 1.0% AVERAGE HOUSEHOLD SIZE
2021 - 2026 CAGR 0.6% 0.6% 0.9% 2021 2.57 2.97 3.39
POPULATION DENSITY 2026 2.56 3.00 3.45
2021 Per Square Mile 92 250 172 CAGR (0.04%) 0.18% 0.38% 2026 Per Square Mile 95 258 180 HOUSING UNITS
MEDIAN AGE Ow ner Occupied 81,634,787 7,281,812 891,492 2021 38.61 37.29 35.32 Renter Occupied 44,285,300 5,755,719 481,907 2026 39.39 38.02 36.03 AVERAGE HOUSEHOLD INCOME
CAGR 0.40% 0.39% 0.40% 2021 $94,862 $113,992 $94,064
MEDIAN HOME VALUE 2026 $114,245 $135,074 $114,173
2021 $216,425 $503,156 $343,416 CAGR 3.8% 3.5% 4.0%

PER CAPITA INCOME MEDIAN HOUSEHOLD INCOME
2021 $36,918 $38,340 $27,778 2021 $66,358 $79,661 $69,224 2026 $44,556 $45,022 $33,086 2026 $80,318 $95,659 $83,624 CAGR 3.8% 3.3% 3.6% CAGR 3.9% 3.7% 3.9%
Source: Pitney Bow es/Gadberry Group - GroundView ®
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Micro- Market

The subject is located in the City of Redlands in an area known as South Redlands. This is mostly a residential area and includes some of the more affluent neighborhoods in the greater market area. South Redlands is also in close proximity to Interstate 10, an important regional linkage.

LOCAL AREA DEMOGRAPHICS
DESCRIPTION 92373 DESCRIPTION 92373

POPULATION AVERAGE HOUSEHOLD INCOME
2000 Population 27,407 2021 $119,313
2010 Population 29,827 2026 $146,950
2021 Population 32,548 Change 2021-2026 23.16%
2026 Population 33,311 MEDIAN HOUSEHOLD INCOME
Change 2000-2010 8.83% 2021 $84,807
Change 2010-2021 9.12% 2026 $104,100
Change 2021-2026 2.34% Change 2021-2026 22.75%
POPULATION 65+ PER CAPITA INCOME
2010 Population 4,796 2021 $46,557
2021 Population 6,005 2026 $56,613
2026 Population 6,718 Change 2021-2026 21.60%
Change 2010-2021 25.21% 2021 HOUSEHOLDS BY INCOME
Change 2021-2026 11.87% <$15,000 6.4%
NUMBER OF HOUSEHOLDS $15,000-$24,999 7.6%
2000 Households 11,659 $25,000-$34,999 7.3%
2010 Households 12,311 $35,000-$49,999 11.1%
2021 Households 12,468 $50,000-$74,999 12.6%
2026 Households 12,612 $75,000-$99,999 12.9%
Change 2000-2010 5.59% $100,000-$149,999 17.7%
Change 2010-2021 1.28% $150,000-$199,999 9.0%
Change 2021-2026 1.15% $200,000 or greater 15.5%
HOUSING UNITS (2021) MEDIAN HOME VALUE $457,173
Ow ner Occupied 7,053 AVERAGE HOME VALUE $525,814
Renter Occupied 5,415 HOUSING UNITS BY UNITS IN STRUCTURE HOUSING UNITS BY YEAR BUILT 1, detached 7,723
Built 2010 or later 182 1, attached 596
Built 2000 to 2009 1,014 2 220
Built 1990 to 1999 901 3 or 4 908
Built 1980 to 1989 1,714 5 to 9 669
Built 1970 to 1979 2,377 10 to 19 760
Built 1960 to 1969 2,057 20 to 49 682
Built 1950 to 1959 2,269 50 or more 827
Built 1940 to 1949 434 Mobile home 75
Built 1939 or earlier 1,520 Boat, RV, van, etc. 8
Source: Pitney Bow es/Gadberry Group - GroundView ®
0%
5%
10%
15%
20%
25%
0-17 18-29 30-39 40-49 50-64 65+

POPULATION BY AGE
92373
0%
5%
10%
15%
20%
25%
0-17 18-29 30-39 40-49 50-64 65+
POPULATION GROWTH BY AGE - 92373
2010 2021 2026
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The following maps detail the location of the subject.

Greater Inland Empire

Greater Market Area

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Micro Market

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SITE & IMPROVEMENT DESCRIPTION

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Site & Improvement Description

IDENTIFICATION

The property is commonly identified as follows:

Lot Assessor's Assessed Census
No. Parcel Number Acreage Section Township Range Tract

1 0300-451-24-0000 8.57 7 2, South 2, West 85.00
2 0300-451-13-0000 3.20 7 2, South 2, West 85.00
3 0300-451-14-0000 2.50 7 2, South 2, West 85.00
4 0300-451-25-0000 7.77 7 2, South 2, West 85.00

Lot Numbers are Annotated

LOCATION & ACCESS

The property does not currently have a site address and located near Helen Court, Redlands, San Bernardino County, California 92373. Lots 1, 2, and 3 each has frontage along a paved portion of Helen Court. Helen Court then extends as a minimally improved road to Lot 4, however it appears to cross a portion of Lot 2 which w ould require an easement. The approximate center of the property can be found at Latitude: 34.014892°; Longitude:
-117.137124°.

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TITLE HISTORY

Title to the property is vested in “Kenneth D. Macknet, II, a married man as his sole and separate property, Mark R. Macknet, a married man as his sole and separate property, and Cathy A. Macknet, a married woman as her sole and separate property, all as joint tenants” The ownership obtained title on February 16, 2021, via document number 2021-0073621”, which was a corrective interfamily deed.

The four lots are currently marketed for bulk sale for a price of $1,994,500. The property has been on the market for about six months. There has been moderate int erest but no recent offers. Aside from the aforementioned, no other sales or marketing attempts were discovered within a three-year period.

OCCUPANCY

The property is reported to be fee simple and unencumbered by lease.

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EASEMENTS AND ENCUMBRANCES

Typical easements for the area are for utility power lines which are generally overhead structures. Telephone line easements are overhead or underground. Water districts sometimes have easements for underground pipelines.

A title report was not provided, therefore the impacts (if any) on use or value of any easements or encumbrances cannot be evaluated. This is a limiting condition of this report.

ASSESSMENTS AND TAXES

Assessor's Total Property
Parcel Number Land Other Assessments Taxes

0300-451-24-0000 $ 159,149 $0 $ 159,149 $ 1,990
0300-451-13-0000 $ 62,311 $0 $ 62,311 $ 780
0300-451-14-0000 $ 48,679 $0 $ 48,679 $ 610
0300-451-25-0000 $ 144,450 $0 $ 144,450 $ 1,806
00 Total: $414,589 $0 $414,589 $5,186.00

Based on information obtained from the Tax Collector’s office, taxes are current for the applicable tax year.

Properties in California are taxed under Proposition 13 rules. Proposition 13 reassesses property at market upon a transfer then caps annual increases at 2%. Prop 13 also generally assesses new improvements at cost. Should the property sell at appraised value, this would trigger a reassessment.

ZONING

The zoning ordinances governing the property is SP59 (Specific Plan) under the jurisdiction of the City of Redlands. The SP 59 guidelines were approved by the City Council February 2006 1. Allowable uses are residential, and densities are outlined as follows:

The slope analysis map from the Specific Plan with the allowed densities for the subject being highlighted in the following map.

1 formally known as the Southeast Area General Plant Sector 8.

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Based upon the preceding zoning, one density unit is permitted for each lot.

Tentative Tract Map

In early 2015 the owner s submitted a proposed revised tract map No.20011 which would consolidate and subdivide the four existing lots into six lots as seen below.

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Based upon review of correspondence at the time of submission, there appeared to be some traction towards approval albeit with several conditions. The owners decided at that time not to further pursue the action.

Since the subject is analyzed on an “as is” individual lot basis, the potential impact of the tentative tract map is not relevant.

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FLOOD ZONE

The property is located in “Zone X (no hazard)” flood zones according to panel 06071C8719H of the FEMA Flood Insurance Map with an effective date of August 28, 2008.

FAULT-RUPTURE HAZARD ZONE

The property is not located within any Alquist -Priolo2 Special Earthquake Studies Zones according to Special Publication 42, revised in 2007 by the Department of Conservation, Division of Mining and Geology.

UTILITIES

Typical municipal utilities, including water, electrical and telephone services, are ava ilable throughout the immediate area. The subject is not connected to municipal sewer and would require septic systems. Costs to

2 https://www.conservation.ca.gov/cgs/alquist-priolo
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establish utilities were not provided and this report assumes that these cost s would be in-line with typical costs for the market area.

PROPERTY DESCRIPTION AND LAND USE

The basic physical characteristics of each lot are summarized here.

Lot 1 Lot 2 Lot 3 Lot 4
Access Average Average Average Average
Shape Sl. Irregular V. Irregular Sl. Irregular Sl. Irregular Size (Acres) 8.57 3.20 2.50 7.77
Topography: Moderately Steep,
Flat Pad
Moderately Steep,
Small Pad
Moderately Steep,
Flat Pad
Moderatly Steep,
Expansive Pad
Flood Zone Zone X Zone X Zone X Zone X
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Lots 1, 3, and 4 are high quality estate lots with commanding 270 *+ degree views and natural building pads.

While the topography limits the building envelope and the potential uses of the excess land, estates of this size are covenanted for their privacy which is apparent on Helen Court.

Lot 2 has a very irregular shape with portions used as the road which extends to the other lots. The configuration of Lot 2 also impacts its development potential with the most logical building site is located below (north) of the water tower. This lot does not have commanding views, rather classified as pocket valley views which are impacted by the water tower.

Lot 1 View to North Lot 1 Building Pad View to Southeast

Lot 2 View

Lot 2 Flat Area (Water Tank Behind)
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Lot 3 View to Southeast Lot 3 Expansive South View

Lot 4 View to East Lot 4 View to South

TOXIC AND HAZARDOUS WASTE

No evidence of toxic or hazardous waste was observed. See Limiting Conditions.

S.W.O.T. ANALYSIS

SWOT is an acronym for the internal strengths and weaknesses of an asset and the environmental (external) opportunities and threats facing that property. Based on the analysis the following strengths, weaknesses, opportunities and threats have been identified.

Strengths
› Excellent location in a private cul-da-sac in an affluent area of Redlands. › Large residential lots.
› Expansive views.

Weaknesses
› Topography limits natural building pad sites and increases site development costs. › Lot 2 has a very irregular shape.

Opportunities
› Few remaining estate -quality lots in the market area with demand from both developers and owner - builders.

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› With further site planning the total site could potentially be reconfigured to six lots. › Increasing residential real estate prices creates expectations of developer ’s profits and enhances developer’s incentives.

Threats
› Absorption of lots is difficult to predict with the best lots selling quickly and potentially extended marketing periods for inferior lots.
› Lot values and demand can be impacted by change in demand or market conditions. › Building costs have increased which impacts developer returns and owner-builder budgets.

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HIGHEST & BEST USE

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Highest and Best Use

Highest and Best Use is a basic premise of value. The use that maximizes the value of a particular property is considered its Highest and Best Use. An appraiser’s opinion as to the Highest and Best Use of a property is based on an analysis of prevailing market conditions, the present use of the subject and surrounding properties, trends in use, and current/projected zoning regulations.

As the use of a parcel of land can be limited by the presence of improvements, Highest and Best Use is determined separately as follows:

• As if the property is vacant and available to be put to its highest and best use; and • As if the property is improved.

Generally, the Highest and Best Use is estimated after considering four factors, which must be evaluated sequentially: 1) Is the use legall y permissible? (2) Is the use physically possible? (3) Is the use financially feasible? and (4) Is the use maximally productive? It must be noted that with respect to a property’s Highest and Best Use: (a) the surrounding land uses are not always indicativ e of optimum use; (b) the existing use may not be the optimum use; and (c) current zoning may not be consistent with the property’s Highest and Best Use.

The principle of consistent use holds that land cannot be valued based on one use while improvements are valued based on another3.

AS VACANT

Legally Permissible:

The subject property is zoned for residential uses. Any other uses would require zoning changes.

Physically Possible:

Residential development is physically possible evidenced by development on lots with similar physical characteristics.

Financially Feasible:

The residential real estate market is experiencing strong demand and constrained supply which has resulted in increasing residential values and rents. Underlying this is a lack of supply. This trend is also evident in the “estate” quality home market with record prices paid for homes and a lack of inventory. The financial feasibility of estate quality home construction is difficult to measure on a site -specific basis, so we turn to greater market evidence. Both build to suit and spec-building of estate homes as well as larger tract homes are occurring in the Inland Empire. Many developers cite the lack of land inventory and permitting delays as headwinds to more developer activity. Based upon the market evidence, development of lots on a build to suit basis is financially feasible; speculative development carries enhanced risk . Alternatively, the property coul d be held as a land asset.

Maximally Productive:

The highest and best use of the subject property is for estate residential development or holding as a land asset for future appreciation.

3 The Appraisal of Real Estate, Fourteenth Edition, p. 345 Redlands Regular Meeting of 03/21/2023
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VALUATION

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Valuation
The ultimate goal of the valuation process is a well -supported value conclusion that reflects all the pertinent factors that influence the market value of the subject property given the intended use(s) and user(s). Traditional appraisal methodology requires the appraiser to study a property from three different viewpoints, referred to as the “approaches to value.” They are:

• The Sales Comparison Approach
• The Cost Approach
• The Income Capitalization Approach

SALES COMPARISON APPROACH

The Sales Comparison Approach is “the process of deriving a value indication for the subject property by comparing market information for similar properties with the property being appraised, identifying appropriate units of comparison, and making qualitative comparisons with or quantitative adjustments to the sales prices (or unit prices, as appropriate) of the comparable properties based on relevant, market -derived e lements of comparison.”4

The Sales Comparison Approach uses sales of comparable properties, adjusted for differences, to indicate a value for the subject property. Valuation is often accomplished using a physical unit of comparison (such as a price per acre) or an economic unit of comparison (such as a gross rent multiplier). Adjustments are applied to the physical units of comparison from the comparable sales, and then the units of comparison are applied to yield a value indicator for the subject.

COST APPROACH

The Cost Approach is “a set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive, deducting depreciation from the total cost, and adding the estimated land value. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised.”5

Since cost and market values are closely related when properties are new, the Cost Approach is important in estimating the market value of new or relatively new improvements. The approach is especially persuasive when land value is well supported and the improvements are new or suffer only minor accrued depreciation; therefore, these improvements represent a use that approximates the highest and best use of the land, as though vacant.

The Cost Approach is also used to estimate the market value of proposed construction, special -purpose properties and other properties that are not frequently exchanged in the market.

INCOME CAPITALIZATION APPROACH

The Income Capitalization Approach is “a set of procedures through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits (cash flows and reversion) into property value. This conversion can be accomplished in two ways. One year’s income expectancy can be capitalized at a market-derived capitalization rate or a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.6

4 Ibid., p. 175
5 The Dictionary of Real Estate Appraisal, Fifth Edition, p. 47 6 The Dictionary of Real Estate Appraisal, p. 99
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In the Income Capitalization Approach, the present value of the future benefits of property ownership is measured. A property’s income streams and its resale value upon reversion may be capitalized into a present, lump-sum value.7

RECONCILIATION

Final reconciliation is “the last phase in the development of a value opinion in which two or more value indications derived from market data are resolved into a final value opinion, which may be either a final range of value or a single point estimate.”8

The reconciliation process represents a weighing of the indicators derived as to the indicator’s reliability and applicability to the appraisal problem at hand. A final value conclusion is then estimated based on the available data and the appraiser’s experience in appraising the type of property under analysis.

7 The Appraisal of Real Estate, Thirteenth Edition, p. 142 8 The Dictionary of Real Estate Appraisal, Fifth Edition, p. 79 Redlands Regular Meeting of 03/21/2023
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Sales Comparison Approach
The Sales Comparison Approach was deemed to be a reliable indicator of value for the subject property.

• The subject property is four residential estate lots . The most likely buyer for the property would be a developer or owner-builder.
• The property is well located in an affluent region of South Redlands and on cul -da-sac accessed from Sunset Drive.
• The subject is comprised of four lots. Sale comparison analysis was first completed for Lot 4, which is considered a benchmark lot from which fu rther analysis was completed to conclude the values for the remaining lots.

LAND VALUATION

Within the market described above, an attempt has been made to determine the market value of each lot. The following sales were discovered and analyzed and were considered to best demonstrate the market value of each lot. The sales were selected from a relatively small market area defined as the 92373-zip code. We have further limited the analysis to sales of vacant land zoned for residential uses and suitable for estate quality homes. These sales represent relatively similar physical characteristics as the subject property, such as location, access, shape, size, topography, flood potential, views, and utilities. The price attributed to the vacant land has been isolated and measured on a per-lot basis.

Land Sales Summation Table
Sale Number L1 L2 L3
Property Name Sunset Dr &
Wabash Ave 31848 Highwview Dr Halsey St
Grantor Johnston Holdings
LLC Esfahiani Sporrong
Grantee Pristine Builders
Inc. McGuire LLC Colmenares
City Redlands Redlands Redlands
Recorded Date 2/3/2021 6/4/2021 9/29/2021
Doc Number 2021-0053784 2021-0255722 2021-0442829
Parcel Number 0300-012-09-000 0301-142-02-0000 0176-073-64-0000 Total Sales Price $445,000 $595,000 $365,000
Adjustments $0 $0 $0
Adjusted Sales Price / Lot $445,000 $595,000 $365,000
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Reviewing the 10 basic elements of real property comparison9, unless otherwise stated, all of the sales are seen as equal and no adjustments are deemed necessary in terms of real property rights transferred (1), financing terms (2), sale conditions (3), and immediate expenditures made (4). The fee simple rights have transferred in all cases, consideration were paid in cash or its equivalent (including conventional financing), all sale conditions are seen as typical for the market, and no extraordinary immediate expenditures are known.

• Sale L2 was seller financed which is not uncommon due to challenges getting conventional financing for vacant land. The terms are unknown, and no adjustment is applied. • A review of recent listings was completed and there are no comparable properties available in the market area.

Market conditions (5) are often a basis of adjustment in real estate, as the dynamic of supply and demand change. As there are relatively few vacant lots that transfer, time adjustments can be difficult to derive. Markets with few transactions tend to move slowly, or lurches, with periods of inactivity followed by jumps or drops in prices. On occasion, a sale and re-sale is observed, and some conclusions can be drawn from aggregate data.

Due to the lack of vacant lot sales data, we turn to trends in the residential real estate market. Below are statistics compiled by various real estate companies which actively track the local residential market

Source Market Annual Change
Zillow Redlands 22.1%
Redfin 92373 30.4%
Rockhomes Redlands 19.1%

The Redlands’ market trend is consistent with that experienced in California and across the broader US housing market, which is strong double-digit appreciation.

Typically, residential lot values trend directionally with home values but usually lag in their appreciation unless there are extenuating circumstances. This is due to the fact the building costs have also increased which increases the cost of converting lots to homes.

• Considering the data above a 10 % annual market c onditions adjustment is applied. Given that all the comparable sales have transacted recently, the magnitude of the market conditions adjustment is minimal.

Next the appraisal considers physical characteristics which include location, access, shape, size, topography, flood zone, views, and utilities access.

As seen in the preceding map , comparable sales were selected from a defined market area to minimize adjustments for location. Notwithstanding, even within the 92373 zip code there are differences in desirability and home values. In general homes located near the County Club and along Sunset Dr are preferable to those located to the north and west.

9 The Sale Appraisal of Real Estate, 13th Edition, page 309 Mkt Conditions Adjustment L1 L2 L3
Price per Lot $445,000 $595,000 $365,000
Date 11/11/2021 2/3/2021 6/4/2021 9/29/2021
Present Value Factor at 10.0% 8% 4% 1%
Mkt Cond adjustment $ $33,880 $25,386 $4,121
Mkt Cond adjusted price $478,880 $620,386 $369,121
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Access is somewhat of an important characteristic though there is less consensus on relative desirability. Some homeowners prefer quiet streets with less traffic and more privacy. Others prefer locations closer to freeways and other linkages for convenience.

Size is another important characteristic. When analyzed on a per lot basis, a larger lot is preferred, however this tends to have a declining impact. For example, the added consideration from a one acre increase from 1 to 2 acres is greater than a lot increasing from 5 to six acres.

Topography is the Redlands area is also a critical element of comparison. Most of the flat or mild slope lots have been developed with what remains being more challenging lots. Varied topography impacts building site locations, increases costs, and utility. Usually correlated with topography are views; in many cased (but not in all) those with topography offer expansive views which is a key motivating factor for those with the means to build an estate quality home.

Flood zone and its risk is another factor which cannot be overlooked but in this micro-market zone risk appears to be minimal.

Lastly, the appraiser considered access to utilities. While there are some underlying costs and compliance to obtaining utilities, all properties are located in urban areas with established utilities located nearby.

Property uses are directly tied to the legal uses permitted by zoning code. The subject has unique zoning attributes as it is located in a Specific Plan, therefore i ts uses and development conditions may differ from standard zoning. We present a brief summary of the underlying zoning of the subject and comparables.

While there are minor differences between each of the zoning, they effectively all have similar or near similar use potential, particularly when one considers the physical characteristics of each property.

Lastly, we have considered any Other Attributes which are not included in the above. It is noted that the subject and L1 each have a tentative tract map pending, though the cost of compliance maybe prohibitive.

The aforementioned relevant elements of comparison of the properties are summarized here.

ZONING SUMMARY
Subject L1 L2 L3
Zoning SP 59 R-E, O R-R-A R-E
Primary Use Residential Estate Estate Residential, Open Residential Rural, Animals Residential Estate
Minimum Lot Size (SF) Site Specific 14,000 43,560 14,000 Redlands Regular Meeting of 03/21/2023
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Adjustments are first applied on a qualitative basis.

Deriving quantitative adjustments are very challenging in general and impossible in a small market such as the subject. Consistent with standard appraisal practices , we have assigned quantitative percentage adjustments based upon order of magnitude considerations for each element of comparison guided by the preferences of market participants.

Elements of Comparison:

Sale Number Lot 4 L1 L2 L3

1. Real Property Rights Fee Simple Fee Simple Fee Simple Fee Simple

2. Financing Cash Conventional Seller Financed Conventional

3. Sale Conditions Arm's-Length Arm's Length Arm's Length Arm's Length

4. Immediate Expenses none none none none

5. Mkt Conditions (time) Nov-21 Feb-21 Jun-21 Sep-21

6. Location Redlands Redlands Redlands Redlands
Micro-Market South Redlands I-10, South
Redlands Southeast Redlands West of Country
Club

7. Physical Characteristics
Access Average Good Average Good
Shape Sl. Irregular Sl. Irregular Sl. Irregular L Shape Size (Acres) 7.77 5.98 7.37 1.02
Topography: Moderately Steep, Flat Pad Undulating, Steep Moderate Slope Gentle Slope Flood Potential: Zone X Zone X Zone X Zone X
Views: Valley, Expansive Valley, Pocket Valley, Pocket None Utilities Available Nearby Available Nearby Available Nearby Available Nearby

9. Use (Zoning) SP 59, Residential RE, O R-R-A R-E

10. Other Attributes. Tenative Tract Map Tenative Tract Map None None Price per Lot $445,000 $595,000 $365,000
Adjustment Table
Sale Number Lot 4 L1 L2 L3

1. Real Property Rights Fee Simple Similar Similar Similar

2. Financing Cash Similar Similar Similar

3. Sale Conditions Arm's-Length Similar Similar Similar

4. Immediate Expenses none Similar Similar Similar

5. Mkt Conditions (time) 11/11/2021 Previously Adjusted Previously Adjusted Previously Adjusted

6. Location Redlands Similar Similar Similar
Micro-Market South Redlands Sl. Inferior Similar Similar

7. Physical Characteristics
Access Average Similar Similar Similar
Shape Sl Irregular Similar Similar Similar
Size (Acres) 7.77 Similar Similar Inferior
Topography Moderately Steep, Flat Pad Similar Similar Sl. Superior Flood Potential Zone X Similar Similar Similar
Views: Valley, Expansive Sl. Inferior Sl. Inferior Inferior Utilities Available Nearby Similar Similar Similar

9. Use (Zoning) SP 59, Residential Sl. Superior Sl. Superior Sl. Superior

10. Non-realty components Tenative Tract Map Similar Similar Similar Overall Comparison Sl. Inferior Sl. Superior V. Inferior Indicator for Subject Slightly more than Slightly less than Significantly more Price per Lot $478,880 $620,386 $369,121
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The final step is to apply the adjustment to each comparable. Then each sale is weighted with the most weighting assigned to L1 and L2 which are most similar in size and physical characteristics as seen below.

The estimate value of Lot 4 is $533,615.

Applying comparable analysis from the benchmark (Lot 4) to the other subject lots is presented below

The benchmark adjustment table is presented below.

Quantitative Adjustment Table
Sale Number Lot 4 L1 L2 L3
Micro-Market 5% 0% 0%
Size (Acres) 0% 0% 20%
Topography 0% 0% -10%
Views: 10% 10% 25%
Use (Zoning) -10% -10% -10%
Total Adjustments 5% 0% 25%
Final Adjustment Table
Sale Number Lot 4 L1 L2 L3
Value (Adjusted for Mkt Conditions) $478,880 $620,386 $369,121 Value Indicator (Adjusted) $502,824 $620,386 $461,402
Weighting 40% 35% 25%
Lot 4 Value Conclusion $533,615 $201,130 $217,135 $115,350 Benchmark Analysis, Elements of Comparison
Lot 1 Lot 2 Lot 3 Lot 4
Access Average Average Average Average
Shape Sl. Irregular V. Irregular Sl. Irregular Sl. Irregular Size (Acres) 8.57 3.20 2.50 7.77
Topography: Moderately Steep,
Flat Pad
Moderately Steep,
Small Pad
Moderately Steep,
Flat Pad
Moderatly Steep,
Expansive Pad
Flood Zone Zone X Zone X Zone X Zone X
Views: Valley, Expansive Pocket Views Valley, Expansive Valley, Expansive Benchmark Analysis, Adjustment Table
Subject Property Lot 4 Lot 1 Lot 2 Lot 3
Access Average Similar Similar Similar
Shape Sl. Irregular Similar -10% Similar
Size (Acres) 7.77 Similar -20% -20%
Topography: Moderatly Steep,
Expansive Pad Similar Similar Similar
Flood Zone Zone X Similar Similar Similar
Views: Valley, Expansive Similar -10% Similar
Total Adjustment 0% 0% -40% -20%
Indicator for
Subject $533,615 $533,615 $320,169 $426,892
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SALES COMPARISON APPROACH CONCLUSION

With the estimates of the individual lot values complete , the aggregate value of the four lots is summed and calculated as $1,814,291.

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RECONCILIATION OF VALUE CONCLUSIONS

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Reconciliation of Value
The Reconciliation of Value Conclusions is the final step in the appraisal process and involves the weighing of the individual valuation techniques in relationship to their substantiation by market data, and the reliability and applicability of each valuation technique to the subject property. Understanding the profiles of potential buyers and their typical reliance on each approach to value strongly influences the weighting process.

In the open market, the subject property type would command most interest from:

• A local developer
• An owner-builder

There is currently steady buyer demand for substitute properties of the subject based on the volume of sale transactions and reports by buyers, sellers and other market participants during confirmation of market transactions. Inventory of quality estate residential lots is low.

The price per lot method has been presented in the Sales Comparison Approach . There have been a few recent sales of properties similar to the subject in the market area in the current market conditions. Strengths and weaknesses of this approach to value included the following:

• Strength: The price per lot method presents a reasonably narrow range of indicators of value. • Strength: Buyers of this property type frequently rely on this method for as a primary indicator. • Weakness: Varying assets on each property necessitate significant allocations and adjustments.

As discussed in the scope of work, the Cost and Income approaches were deemed not to be relevant.

Presentation of Value Conclusions
The following table summarizes the final opinion of the Market Value of the subject property.

EXPOSURE TIME & MARKETING PERIOD

Estimates of exposure time (historical view) and marketing period (forward view) are made below. Implicit in these estimates are asking prices that, while are likely slightly above, are reasonably close to the opinion of market value. In order to determine the estimated exposure time of the subject property, the exposure periods of the sales used in this appraisal as well as other sales in the broader market were reviewed. While some sales were sold with reasonable exposure to the open market , many of these properties were sold directly between their buyers and sellers with no official market exposure. In addition to the sales data presented above, regular correspondents is conducted with real estate brokers and other market participants regarding marketing periods.

Data from local multiple listings services was also reviewed.

The estimated exposure time and marketing period is eighteen months.

The COVID-19 pandemic did present some disruption in normal marketing efforts of property, mostly related to shutdowns. As the pandemic has waned, deal flow is back up with some pent -up demand increasing deal flow Approach Weight Value
Sales Comparison primary $1,814,291
Cost no w eight N/A
#N/A no w eight N/A
Final Conclusion $1,800,000
per acre $81,670
per lot $450,000
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in some areas. During 2020, exposure periods were more likely to be at the high end of the range but have since dwindled to shorter windows of time as the economy recovers.

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CERTIFICATION OF APPRAISAL

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Appraiser’s Certification
The signor(s) certify that, to the best of their knowledge and belief:

-The statements of fact contained in this report are true and correct.

-The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and are our personal, impartial and unbiased professional analyses, opinions and conclusions.

-The signors have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved.

-The signors have no bias with respect to the property that is the subject of this report, or to the parties involved with this assignment.

-Engagement in this assignment was not contingent upon developing or reporting predetermined results.

-Compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

-The analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP) and the code of ethics of the American Society of Farm Managers and Rural Appraisers (ASFMRA) or the Appraisal Institute (AI). This report is subject to confidential peer review for standards and ethics compliance.

-The ASFMRA and AI maintain continuing education programs requirement for designated appraisers. Designated signors are currently certified under one these programs.

-This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or any approval of a loan.

-Jake Cutler has made a personal observation of the property that is the subject of this report.

-The appraiser(s) have not performed services on the property as an appraiser(s) within three years. No services have been performed in any other capacity.

-This appraiser(s) is/are certified by the state as Certified General Real Estate Appraiser(s) with certificates and expiration dates seen below.

- No other person provided significant real property appraisal assistance to the signer of this certification.

_______________________________
Jake Cutler, ARA
Valuation Associate
California Certified General Appraiser: 3006652
Arizona Certified General Appraiser: 1004668
Hawaii Certified General Appraiser: 1317
(559) 676-6975
[email protected]

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ASSUMPTIONS & LIMITING CONDITIONS

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Assumptions & Limiting Conditions

This appraisal is subject to the following assumptions and limiting conditions:
• A survey of the subject property may or may not have been provided. Parcel maps and legal descriptions in the public record are assumed to accurately reflect the boundaries of the property. If further verification is required, a survey by a registered surveyor is advised. • No responsibility for matters legal in character have been assumed. No opinion has been rendered as to title, which is assumed to be marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, under responsible ownership, and competent management.
• The exhibits in this report are included to assist the reader in visualizing the property. No survey of the property has been made and no responsibility is assumed in connection with such matters. • Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or restrictive violations existing in the subject property.
• No responsibility has been assumed for determining if the property requires environmental approval by the appropriate governing agencies, nor if it is in violation thereof, unless otherwise noted herein. • Information presented in this report has been obtained from reliable sources, a nd it is assumed that the information is accurate.
• This report shall be used for its intended purpose only, and by the party to whom it is addressed.

Possession of this report does not include the right of publication. • The appraiser may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless prior arrangements have been made therefore. • The statements of value and all conclusions shall apply as of the dates shown herein. • There is no present or contemplated future interest in the property by the appraiser which is not specifically disclosed in this report.
• Without the written consent or approval of the author neither all, nor any part of the contents of this report shall be c onveyed to the public through advertising, public relations, news, sales, or other media. This applies particularly to value conclusions and to the identity of the appraiser and the firm with which the appraiser is connected.
• This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the opinions expressed herein. Unless approval is provided by the author, no portion of the report stands alone. • The val uation stated herein assumes professional and competent management and operation of the property throughout the lifetime of the improvements, with an adequate maintenance and repair program in conformance with typical industry standards for the use of the property. • The liability of the appraiser, its principals, agents, and employees is limited to the client. Further, there is no accountability, obligation, or liability to any third party. If this report is placed into possession of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of Redlands Regular Meeting of 03/21/2023
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the assignment and related discussions. The appraiser is in no way responsible for any costs incurred to discover or correct any deficiency in the property.
• The appraiser is not qualified to detect the presence of toxic or hazardous substances or materials which may influence or be associated with the property or any adjacent properties, has made no investigation or analysis as to the presence of such materials, and expressly disclaims any duty to note the degree of fault.

The appraiser, shall not be liable for any costs, expenses, assessments, or penalties, or diminution in value, property damage, or personal injury (including death) resulting from or otherwise attributable to toxic or hazardous substances or materials, including without limitation hazardous waste, asbestos material, formaldehyde, or any smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, solids or gasses, waste materials or other irritants, contaminants or pollutants. • The appraiser assumes no responsibility for determining if the subject property complies with the Americans with Disabilities Act (ADA). The appraiser, shall not be liable for any costs, expenses, assessments, penalties or diminution in value resulting from non-compliance. This appraisal assumes that the subject meets an acceptable level of compliance with ADA standards; if the subject is not in compliance, the eventual renovation costs and/or penalties would negatively impact the present value of the subject. If the magnitude and time of the cost were known today, they would be reduced from the reported value conclusion.
• An on-site observation of the subject property was conducted. No evidence of asbestos mate rials on-site was noted. A Phase 1 Environmental Assessment was not provided for this analysis. This analysis assumes that no asbestos or other hazardous materials are stored or found in or on the subject property.

If evidence of hazardous materials of any kind occurs, the reader should seek qualified professional assistance. If hazardous materials are discovered and if future market conditions indicate an impact on value and increased perceived risk, a revision of the concluded values may be necessary. • A detailed soils study was not provided for this analysis unless noted in the main body of the report. The subject's soils and sub -soil conditions are assumed to be suitable for structures based upon a visual observation, which did not indicate evidence of excessive settling or unstable soils. No certification is made regarding the stability or suitability of the soil or sub-soil conditions. • This analysis assumes that the financial information provided for this appraisal, including historical income and expense statements; accurately reflect the current and historical operations of the subject property. • This analysis assumes that the physical information provided for this appraisal accurately reflects the improvements on the property. These items may include, b ut are not limited to, varieties, rootstocks, and age of permanent crops, yields of crops grown, depth and productivity of wells, water quality and capacities of reservoirs, size and age of structures. Only a visual surface observation has been performed. While attempts are made to identify and verify such improvements, many true verifications can only be done by third-party experts or laboratory testing. Such testing is beyond the scope of this assignment. • Unless otherwise noted in the report, crops grown on the property are assumed to be free of maladies that could impact productivity, economic life, and value. While the appraiser(s) are trained to observe obvious and apparent defects, many maladies, such as virus or root diseases are difficult to detect from a surface observation. Some maladies can only be observed at certain periods of the growing season. Third -party experts in plant health should be consulted if further investigation is needed. • Any projected cash flows included in the analysis are foreca sts of estimated future operating characteristics and are forecasted on the information and assumptions contained within this report. Any Redlands Regular Meeting of 03/21/2023
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projections of income, expenses and economic conditions utilized in this report are not predictions of the future. Rather, they are estimates of market expectations of future income and expenses. The achievement of any financial projections will be affected by fluctuating economic conditions and is dependent upon other future occurrences that cannot be assured. Actual results may vary from the projections considered herein.

There is no warranty or assurances that these forecasts will occur. Projections may be affected by circumstances beyond anyone’s knowledge or control. Any income and expense estimates contained in this report are used only for the purpose of estimating value and do not constitute predictions of future operating results.
• The analyses contained in this report may necessarily incorporate numerous estimates and assumptions regarding Property performance, gen eral and local business and economic conditions, the absence of material changes in the competitive environment and other matters. Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events and circumstances may occur; therefore, actual results achieved during the period covered by the analysis will vary from estimates, and the variations may be material.
• Any prospective value opinions presented in this report are estimates and forecasts which are prospective in nature and are subject to considerable risk and uncertainty. In addition to the contingencies noted in the preceding paragraphs, events may occur that could substantially alter the outcome of the estimates such as, but not limited to changes in the economy, interest rates, exchange rates, capitalization rates, behavior of consumers, investors and lenders, fire and other physical destruction, changes in title or conveyances of easements and deed restrictions, etc. In making prospective estimates and forecasts, it is assumed that conditions reasonably foreseeable at the present time are consistent or similar with the future.

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ADDENDA

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Addenda

QUALIFICATIONS

PROFESSIONAL SUMMARY

Mr. Cutler brings over a decade of diverse real estate appraisal experience. His practice focuses on farm and ranch land, vacant land, residential land, permanent plantings, agricultural facilities, and other rural and special use properties. He is a licensed appraiser in California, Arizona, and Hawaii.

LICENSING & PROFESSIONAL AFFILIATIONS

• California CGA License No. 3006652 Expires 7/17/23
• Arizona CGA License No. 1004668 Expires 10/31/23
• Hawaii CGA License No. 1317 Expires 12/31/21

• California ASFMRA- Acredited Rural Appraiser
• Appraisal Institute- Practicing Affiliate

EDUCATION & INDUSTRY AFFILIATIONS

• University of California, Davis, M.S. Agricultural Economics, 2008 • University of California, Davis, B.S. Agricultural Economics, 2007

REPRESENTATIVE APPRAISAL CLIENTS
PGIM AgriFinance Hancock Agricultural Investment Group AgIs Capital Resource Land Holdings
Morgan Stanley Bank of America
State of Hawaii Bank of Hawaii
Rabo AgriFinance Key Bank NA
First Northern Bank of Dixon Well Fargo Bank

[email protected]
Jake Cutler, ARA

VALUATION ASSOCIATE

Valuation & Advisory Services

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MAIN +1 559 221 1271

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Fresno, CA 93711

www.colliers.com

Glossary
Unless specified otherwise, these definitions
were extracted from the following sources or
publications:

The Dictionary of Real Estate Appraisal,
Sixth Edition, Appraisal Institute, Chicago,
Illinois, 2015 (Dictionary).

Uniform Standards of Professional Appraisal
Practice, 2020-2021 Edition (USPAP).

The Appraisal of Real Estate, Fourteenth
Edition, Appraisal Institute, Chicago, Illinois,
2013 (14th Edition).

Absolute Net Lease
A lease in which the tenant pays all
expenses including structural maintenance,
building reserves, and management; often a
long-term lease to a credit tenant.
(Dictionary)

Ad Valorem Tax
A real estate tax based on the assessed
value of the property, which is not
necessarily equivalent to its market value.
(14th Edition)

Aggregate of Retail Values (ARV)
The sum of the separate and distinct market
value opinions for each of the units in a
condominium; subdivision development, or
portfolio of properties, as of the date of
valuation. The aggregate of retail values
does not represent the value of all the units
as sold together in a single transaction; it is
simply the total of the individual market value
conclusions. Also called sum of the retail
values. (Dictionary)

Arm’s-length Transaction
A transaction between unrelated parties who
are each acting in his or her own best
interest. (Dictionary)

As-Is Market Value
The estimate of the market value of real
property in its current physical condition,
use, and zon ing as of the appraisal date.
(Dictionary)

Assessed Value
The value of a property according to the tax
rolls in ad valorem taxation; may be higher or
lower than market value, or based on an
assessment ratio that is a percentage of
market value. (14th Edition)

Average Daily Room Rate (ADR)
In the lodging industry, the net rooms
revenue derived from the sale of guest
rooms divided by the number of paid
occupied rooms. (Dictionary)

Band of Investment
A technique in which the capitalization rates
attributable to components of an investment
are weighted and combined to derive a
weighted-average rate attributable to the
total investment. (Dictionary)

Cash-Equivalent Price
The price of a property with nonmarket
financing expressed as the price that w ould
have been paid in an all -cash sale.
(Dictionary)

Common Area
The total area within a property that is not
designed for sale or rental but is available for
common use by all owners, tenants, or their
invitees, e.g., parking and its appurtenances,
malls, sidewalks, landscaped areas,
recreation areas, public toilets, truck and
service facilities. (Dictionary)

Contract Rent
The actual rental income specified in a lease.
(14th Edition)

Cost Approach
A set of procedures through which a value
indication is derived for the fee simple
interest in a property by estimating the
current cost to construct a reproduction of (or
replacement for) the existing structure,
including an entrepreneurial incentive;
deducting depreciation from the total cost;
and adding the estimated land value.

Adjustments may then be made to the
indicated fee simple value of the subject
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Valuation Glossary

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www.colliers.com

property to reflect the value of the property
interest being appraised. (14th Edition)
Curable Functional Obsolescence
An element of depreciation; a curable defect
caused by a flaw in the structure, materials,
or design, which can be practically and
economically corrected. (Dictionary)

Debt Coverage Ratio (DCR)
The ratio of net operating income to annual
debt service, which measures the relative
ability of a property to meet its debt service
out of net operating income; also called debt
service coverage ratio (DSCR). (Dictionary)

Deferred Maintenance
Items of wear and tear on a property that
should be fixed now to protect the value or
income-producing ability of a property.
(Dictionary)

Depreciation
In appraisal, a loss in property value from
any cause; the difference between the cost
of an improvement on the effective date of
the appraisal and the market value of the
improvement on the same date. (Dictionary)

Direct Costs
Expenditures for the labor and materials
used in the construction of improvements;
also called hard costs. (Dictionary)

Discounted Cash Flow (DCF) Analysis
The procedure in which a discount rate is
applied to a set of projected income streams
and a reversion. The analyst specifies the
quantity, variability, timing, and duration of
the income streams and the quantity and
timing of the reversion, and discounts each
to its present value at a specified yield rate.
(Dictionary)

Discount Rate
A rate of return on capital used to convert
future payments or receipts into present
value; usually considered to be a synonym
for yield rate. (Dictionary)

Disposition Value
The most probable price that a specified
interest in property sho uld bring under the
following conditions:

1. Consummation of a sale within a
specified time, which is shorter than the
typical exposure time for such a property
in that market.

2. The property is subjected to market
conditions prevailing as of the date of
valuation.

3. Both the buyer and seller are acting
prudently and knowledgeably.

4. The seller is under compulsion to sell.

5. The buyer is typically motivated.

6. Both parties are acting in what they
consider their best interests.

7. An adequate marketing effort will be
made during the exposure time.

8. Payment will be made in cash in U.S.
dollars (or the local currency) or in terms
of financial arrangements comparable
thereto.

9. The price represents the normal
consideration for the property sold,
unaffected by special or creative
financing or sales concessions granted
by anyone associated with the sale.

This definition can also be modified to
provide for valuation with specified financing
terms. (Dictionary)

Easement
The right to use another’s land for a stated
purpose. Access or right -of-way easements
may be acquired by private parties or public
utilities. Governments may be the
beneficiaries of easements placed on
privately owned land that is dedicated to
conservation, open space, or preservation.
(14th Edition)

Economic Life
The period over which improvements to real
property contribute to property value.
(Dictionary)

Effective Age
The age of property that is based on the
amount of observed deterioration and
obsolescence it has sustained, which may
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be different from its chronological age.
(Dictionary)

Effective Date
The date on which the appraisal or review
opinion applies (SVP) (Dictionary)

Effective Gross Income (EGI)
The anticipated income from all operations of
the real estate after an allowance is made for
vacancy and collection losses and an
addition is made for any other income.
(Dictionary)

Effective Gross Income Multiplier (EGIM)
The ratio between the sale price (or value) of
a property and its effective gross income.
(Dictionary)

Effective Rent
The rental rate net of financial concessions
such as periods of free rent during the lease
term and above or below -market tenant
improvements (TIs). (14th Edition)

Eminent Domain
The right of government to take private
property for public use upon the payment of
just compensation. The Fifth Amendment of
the U.S. Constitution, also known as the
takings clause, guarantees payment of just
compensation upon appropriation of private
property. (Dictionary)

Entrepreneurial Incentive
The amount an entrepreneur expects to
receive for his or her contribution to a project.

Entrepreneurial incentive may be
distinguished from entrepreneurial pr ofit
(often called developer’s profit) in that it is the
expectation of future profit as opposed to the
profit actually earned on a development or
improvement. (Dictionary)

Entrepreneurial Profit
A market-derived figure that represents the
amount an entrepreneur receives for his or
her contribution to a project and risk; the
difference between the total cost of a
property (cost of development) and its
market value (property value after
completion), which represents the
entrepreneur's compensation for the risk and
expertise associated with development. An
entrepreneur is motivated by the prospect of
future value enhancement (i.e., the
entrepreneurial incentive). An entrepreneur
who successfully creates value through new
development, expansion, renovation, or an
innovative change of use is rewarded by
entrepreneurial profit. Entrepreneurs may
also fail and suffer losses. (Dictionary)

Excess Land
Land that is not needed to serve or support
the existing improvement. The highest and
best use of the excess land may or may not
be the same as the highest and best use of
the improved parcel. Excess land has the
potential to be sold separately and is valued
separately. (Dictionary)

Excess Rent
The amount by which contract rent exceeds
market rent at the time of the appraisal;
created by a lease favorable to the landlord
(lessor) and may reflect unusual
management, unknowledgeable or
unusually motivated parties, a lease
execution in an earlier, stronger rental
market, or an agreement of the parties. Due
to the higher risk inherent in the receipt of
excess rent, it may be calculated separately
and capitalized or discounted at a higher rate
in the income capitalization approach. (14th
Edition)

Expense Stop
A clause in a lease that limits the landlord's
expense obligation, which results in the
lessee paying any operating expenses
above a stated level or amount. (Dictionary)
Exposure Time
An opinion, based on supporting market
data, of the length of time that the property
interest being appraised would have been
offered on the market prior to the
hypothetical consummation of a sale at
market value on the effective date of the
appraisal. (USPAP)

External Obsolescence
A type of depreciation; a diminution in value
caused by negative external influences and
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generally incurable on the part of the owner,
landlord, or tenant. The external influence
may be temporary or permanent.
(Dictionary)

Extraordinary Assumption
An assignment-specific assumption as of the
effective d ate regarding uncertain
information used in an analysis which, if
found to be false, could alter the appraiser's
opinions or conclusions. Uncertain
information might include physical, legal, or
economic characteristics of the subject
property; or condition s external to the
property, such as market conditions or
trends; or the integrity of data used in an
analysis. An extraordinary assumption may
be used in an assignment only if:
• It is required to properly develop credible
opinions and conclusions;
• The a ppraiser has a reasonable basis for
the extraordinary assumption;
• Use of the extraordinary assumption results
in a credible analysis; and
• The appraiser complies with the disclosure
requirements set forth in USPAP for
extraordinary assumptions. (USPAP)

Fair Market Value
In nontechnical usage, a term that is
equivalent to the contemporary usage of
market value.

As used in condemnation, litigation, income
tax, and property tax situations, a term that
is similar in concept to market value but may
be defined explicitly by the relevant agency.
(Dictionary)

Feasibility Analysis
A study of the cost-benefit relationship of an
economic endeavor. (USPAP)

Fee Simple Estate
Absolute ownership unencumbered by any
other interest or estate, subject only to the
limitations imposed by the governmental
powers of taxation, eminent domain, police
power and escheat. (Dictionary)

Floor Area Ratio (FAR)
The relationship between the above -ground
floor area of a building, as described by the
zoning or building code, and the area of the
plot on which it stands; in planning and
zoning, often expressed as a decimal, e.g., a
ratio of 2.0 indicates that the permissible
floor area of a building is twice the total land
area. (Dictionary)

Functional Obsolescence
The impairment o f functional capacity of
improvements according to market tastes
and standards. (Dictionary)

Functional Utility
The ability of a property or building to be
useful and to perform the function for which
it is intended according to current market
tastes and standards; the efficiency of a
building’s use in terms of architectural style,
design and layout, traffic patterns, and the
size and type of rooms. (Dictionary)

Furniture, Fixtures, and Equipment
(FF&E)
Business trade fixtures and personal
property, exclusive of inventory. (Dictionary)

Going-concern
An established and operating business
having an indefinite future life. (Dictionary)

Going-concern Value
An outdated label for the market value of all
the tangible and intangible assets of an
established and operating business with an
indefinite life, as if sold in aggregate; more
accurately termed the market value of the
going concern or market value of the total
assets of the business. (Dictionary)

Gross Building Area (GBA)
Total floor area of a building, excluding
unenclosed areas, measured from the
exterior of the walls of the above-grade area.

This includes mezzanines and basements if
and when typically included in the market
area of the type of property involved.
(Dictionary)

Gross Leasable Area (GLA) - Commercial
Total floor area designed for the occupancy
and exclusive use of tenants, including
basements and mezzanines; measured from
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the center of joint partitioning to the outside
wall surfaces. (Dictionary)

Gross Living Area (GLA) - Residential
Total area of fin ished, above -grade
residential area; calculated by measuring the
outside perimeter of the structure and
includes only finished, habitable, above -
grade living space. (Finished basements and
attic areas are not generally included in total
gross living area. Local practices, however,
may differ.) (Dictionary)

Highest & Best Use
The reasonably probable use of property that
results in the highest value. The four criteria
that the highest and best use must meet are
legal permissibility, physical possibility,
financial feasibility, and maximum
productivity. The use of an asset that
maximizes its potential and that is possible,
legally permissible, and financially feasible.

The highest and best use may be for
continuation of an asset’s existing use or for
some alternative use. This is determined by
the use that a market participant would have
in mind for that asset when formulating the
price that it would be willing to bid (IVS).
(Dictionary)

Hypothetical Condition
A condition, directly related to a specific
assignment, which is contrary to what is
known by the appraiser to exist on the
effective date of the assignment results, but
is used for the purpose of analysis.

Hypothetical conditions are contrary to
known facts about physical, legal, or
economic characterist ics of the subject
property; or about conditions external to the
property, such as market conditions or
trends; or about the integrity of data used in
an analysis. (USPAP)

Income Capitalization Approach
In the income capitalization approach, an
appraiser analyzes a property’s capacity to
generate future benefits and capitalizes the
income into an indication of present value.

The principle of anticipation is fundamental
to this approach. Techniques and
procedures from this approach are used to
analyze comparable sales data and to
measure obsolescence in the cost
approach. (14th Edition)

Incurable Functional Obsolescence
An element of depreciation; a defect caused
by a deficiency or superadequacy in the
structure, materials, or design that cannot be
practically or economically corrected as of
the effective date of the appraisal.
(Dictionary)

Indirect Costs
Expenditures or allowances for items other
than labor and materials that are necessary
for construction, but are not typically part of
the construction contract. Indirect costs may
include administrative costs, professional
fees, financing costs and the interest paid on
construction loans, taxes and the builder's or
developer's all -risk insurance during
construction, and marketing, sales, and
lease-up costs incurred to achieve
occupancy or sale. Also called soft costs.
(Dictionary)

Insurable Replacement Cost
The cost estimate, at current prices as of the
effective date of valuation, of a substitute for
the building being valued, using modern
materials and current standards, design and
layout for insurance coverage purposes
guaranteeing that damaged property is
replaced with a new property (i.e.,
depreciation is not deducted). (Dictionary)

Interim Use
The temporary use to which a site or
improved property is put until a different use
becomes maximally productive. (Dictionary)

Investment Value
The value of a property to a particular
investor or class of investors based on the
investor’s specific requirements. Investment
value may be different from market value
because it depends on a set of investment
criteria that are not necessarily typical of the
market. (Dictionary)

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Liquidation Value
The most probable price that a specified
interest in real property should bring under
the following conditions:

1. Consummation of a sale within a short
time period.

2. The property is subjected to market
conditions prevailing as of the date of
valuation.

3. Both the buyer and seller are acting
prudently and knowledgeably.

4. The seller is under extreme compulsi on
to sell.

5. The buyer is typically motivated.

6. Both parties are acting in what they
consider to be their best interests.

7. A normal marketing effort is not possible
due to the brief exposure time.

8. Payment will be made in cash in U.S.
dollars (or the local currency) or in terms
of financial arrangements comparable
thereto.

9. The price represents the normal
consideration for the property sold,
unaffected by special or creative
financing or sales concessions granted
by anyone associated with the sale.

This definiti on can also be modified to
provide for valuation with specified financing
terms. (Dictionary)

Leased Fee Interest
The ownership interest held by the lessor,
which includes the right to receive the
contract rent specified in the lease plus the
reversion ri ght when the lease expires.
(Dictionary)

Leasehold Interest
The right held by the lessee to use and
occupy real estate for a stated term and
under the conditions specified in the lease.
(Dictionary)

Legally Nonconforming Use
A use that was lawfully estab lished and
maintained, but no longer conforms to the
use regulations of its current zoning; also
known as a grandfathered use. (Dictionary)

Market Area
The geographic region from which a majority
of demand comes and in which the majority
of competition is located. Depending on the
market, a market area may be further
subdivided into components such as
primary, secondary, and tertiary market
areas. (Dictionary)

Market Rent
The most probable rent that a property
should bring in a competitive and open
market reflecting the conditions and
restrictions of a specific lease agreement,
including the rental adjustment and
revaluation, permitted uses, use restrictions,
expense obligations, term, concessions,
renewal and purchase options, a nd tenant
improvements (TIs). (Dictionary)

Market Study
An analysis of the market conditions of
supply, demand, and pricing for a specific
property type in a specific area. (Dictionary)

Market Value (Most Common Non-FRT)
The most probable price, as of a specific
date, in cash, or in terms equivalent to cash,
or in other precisely revealed terms, for
which the specified property rights should
sell after reasonable exposure in a
competitive market under all conditions
requisite to a fair sale, with the buye r and
seller each acting prudently, knowledgeably,
and for self -interest, and assuming that
neither is under undue distress. (Dictionary)

Market Value (Interagency Guidelines)
The most probable price which a property
should bring in a competitive and open
market under all conditions requisite to a fair
sale, the buyer and seller each acting
prudently and knowledgeably, and assuming
the price is not affected by undue stimulus.

Implicit in this definition is the consummation
of a sale as of a specified date and the
passing of title from seller to buyer under
conditions whereby:

1. buyer and seller are typically motivated;

2. both parties are well informed or well
advised, and acting in what they
consider their own best interests;
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3. a reasonable time is allowed for
exposure in the open market;

4. payment is made in terms of cash in U.S.
dollars or in terms of financial
arrangements comparable thereto;
andthe price represents the normal
consideration for the property sold
unaffected by special or creative
financing or sale s concessions granted
by anyone associated with the sale.
(Interagency Appraisal and Evaluation
Guidelines, December 10, 2010, Federal
Register, Volume 75 Number 237, Page
77472)

Marketability Analysis
The study of how a specific property is
expected to p erform in a specific market. A
marketability analysis expands on a market
analysis by addressing a specific
property.(Dictionary)

Neighborhood Analysis
The objective analysis of observable or
quantifiable data indicating discernible
patterns of urban grow th, structure, and
change that may detract from or enhance
property values; focuses on four sets of
considerations that influence value: social,
economic, governmental, and environmental
factors. (Dictionary)

Net Operating Income (NOI)
The actual or anticipated net income that
remains after all operating expenses are
deducted from effective gross income but
before mortgage debt service and book
depreciation are deducted. Note: This
definition mirrors the convention used in
corporate finance and business valuation for
EBITDA (earnings before interest, taxes,
depreciation, and amortization). (14th
Edition)

Obsolescence
One cause of depreciation; an impairment of
desirability and usefulness caused by new
inventions, changes in design, improved
processes for production, or external factors
that make a property less desirable and
valuable for a continued use; may be either
functional or external. (Dictionary)
Off-site Costs
Costs incurred in the development of a
project, excluding on -site costs such as
grading and construction of the building and
other improvements; also called common
costs or off -site improvement costs.
(Dictionary)

On-site Costs
Costs incurred for the actual construction of
buildings and improvements on a particular
site. (Dictionary)

Overage Rent
The percentage rent paid over and above the
guaranteed minimum rent or base rent;
calculated as a percentage of sales in
excess of a specified breakeven sales
volume. (14th Edition)

Overall Capitalization Rate (OAR)
The relationship between a single year’s net
operating income expectancy and the total
property price or value. (Dictionary)

Parking Ratio
The ratio of parking area or parking spaces
to an economic or physical unit of
comparison. Minimum required parking
ratios for various land uses are often stated
in zoning ordinances.(Dictionary)

Potential Gross Income (PGI)
The total income attributable to property at
full occupancy before vacancy and operating
expenses are deducted. (Dictionary)

Potential Gross Income Multiplier (PGIM)
The ratio between the sale price (or value) of
a property and its annual potential gross
income. (Dictionary)

Present Value (PV)
The value of a future payment or series of
future payments discounted to the current
date or to time period zero. (Dictionary)

Prospective Opinion of Value
A value opinion effective as of a specified
future date. The term does not define a type
of value. Instead, it identifies a value opinion
as effective at some specific future date. An
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opinion of value as of a prospective date i s
frequently sought in connection with projects
that are proposed, under construction, or
under conversion to a new use, or those that
have not achieved sellout or a stabilized
level of long-term occupancy. (Dictionary)

Qualitative Adjustment
An indicatio n that one property is superior,
inferior, or the same as another property.

Note that the common usage of the term is a
misnomer in that an adjustment to the sale
price of a comparable property is not made.

Rather, the indication of a property’s
superiority or inferiority to another is used in
relative comparison analysis, bracketing,
and other forms of qualitative analysis.
(Dictionary)

Quantitative Adjustment
A numerical (dollar or percentage)
adjustment to the indicated value of the
comparable property to account for the effect
of a difference between two properties on
value. (Dictionary)

Rentable Area
The amount of space on which the rent is
based; calculated according to local practice.
(Dictionary)

Replacement Cost
The estimated cost to construct, a t current
prices as of a specific date, a substitute for a
building or other improvements, using
modern materials and current standards,
design, and layout. (Dictionary)

Reproduction Cost
The estimated cost to construct, at current
prices as of the effect ive date of the
appraisal, an exact duplicate or replica of the
building being appraised, using the same
materials, construction standards, design,
layout, and quality of workmanship and
embodying all the deficiencies,
superadequacies, and obsolescence of the
subject building. (Dictionary)

Retrospective Value Opinion
A value opinion effective as of a specified
historical date. The term retrospective does
not define a type of value. Instead, it
identifies a value opinion as being effective
at some specific prior date. Value as of a
historical date is frequently sought in
connection with property tax appeals,
damage models, lease renegotiation,
deficiency judgments, estate tax, and
condemnation. Inclusion of the type of value
with this term is appropriate, e. g.,
“retrospective market value opinion.”
(Dictionary)

Sales Comparison Approach
The process of deriving a value indication for
the subject property by comparing sales of
similar properties to the property being
appraised, identifying appropriate units of
comparison, and making adjustments to the
sale prices (or unit prices, as appropriate) of
the comparable properties based on
relevant, market -derived elements of
comparison. The sales comparison
approach may be used to value improved
properties, vacant la nd, or land being
considered vacant when an adequate supply
of comparable sales is available. (Dictionary)

Scope of Work
The type and extent of research and analysis
in an appraisal or appraisal review
assignment. Scope of work includes, but is
not limited to:
• The extent to which the property is
identified;
• The extent to which tangible property is
inspected;
• The type and extent of data researched;
and
• The type and extent of analysis applied
to arrive at opinions or conclusions.
(USPAP)

Superadequacy
An excess in the capacity or quality of a
structure or structural component;
determined by market standards.
(Dictionary)

Surplus Land
Land that is not currently needed to support
the existing use but cannot be separated
from the property and sold off for another
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use. Surplus land does not have an
independent highest and best use and may
or may not contribute value to the improved
parcel. (Dictionary)

Tenant Improvements (TIs)

1. Fixed improvements to the land or
structures installed for use by a lessee.

2. The original installation of finished tenant
space in a construction project; subject to
periodic change for succeeding tenants.
(Dictionary)

Triple Net Lease
An alternative term for a type of net lease. In
some markets, a net net net lease is defined
as a lease in which the tenant assumes all
expenses (fixed and variable) of operating a
property except that the landlord is
responsible for structural maintenance,
building reserves, and management. Also
called NNN, triple net lease, or fully net
lease. (Dictionary)

Usable Area
The area that is actually used by the tenants
measured from the inside of the exterior
walls to the inside of w alls separating the
space from hallways and common areas.
(Dictionary)

Useful Life
The period of time over which a structure or
a component of a property may reasonably
be expected to perform the function for which
it was designed. (Dictionary)

Vacancy and Collection Loss
A deduction from potential gross income
(PGI) made to reflect income deductions due
to vacancies, tenant turnover, and non -
payment of rent; also called vacancy and
credit loss or vacancy and contingency loss.
(Dictionary)

Yield Capitalization
A method used to convert future benefits into
present value by 1) discounting each future
benefit at an appropriate yield rate, or 2)
developing an overall rate that explicitly
reflects the investment's income pattern,
holding period, value change, and yield rate.
(Dictionary)
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CIVAS Overview
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Towers & Associates

Appraisal of Real Property

± 22.05 Acres of Vacant Land
Four Contiguous Parcels (APN: 0300-451-13, 14, 24, & 25) Generally Located on the South Side of Helen Drive at Bruder Lane Redlands, California, 92373
Owner Reference: Macknet
As-Is Date of Value: 10/31/2022

Prepared For: Prepared By:

City of Redlands Towers & Associates
C/o Mr. Chris Boatman James G. Towers, MAI, AI-GRS, CCIM Assistant City Manager P.O. Box 7783
35 Cajon Street Redlands, CA 92375
Redlands, CA 92373 Office: (909 335-1735
E-Mail : [email protected] Mobile:(909) 223-9328 E-Mail: [email protected]
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Towers & Associates

Towers & Associates
James G. Towers, MAI, AI-GRS, CCIM
P.O. Box 7783
Redlands CA 92375
Voice: (909) 335-1735
Mobile : (909) 223-9328
E-mail: [email protected]

November 1, 2022

City of Redlands
c/o Mr. Chris Boatman
Assistant City Manager
35 Cajon Street
Redlands, CA 92373
E-Mail: [email protected]

RE: Appraisal of Real Property
± 22.05 Acres of Vacant Land
Four Contiguous Parcels (APN: 0300-451-13, 14, 24, & 25) Generally Located on the South Side of Helen Drive at Bruder Lane Redlands, California, 92373
Owner Reference: Macknet

Dear Mr. Boatman,
As requested, I have prepared an appraisal of the real property referenced above. The value reported herein is subject to the assumptions and limiting conditions described in the accompanying report. This report has been prepared under the Appraisal Report option in accordance with the reporting requirements set forth under Standards Rule 2 - 2(a) of the Uniform Stan dards of Professional Appraisal Practice (USPAP). I have personally performed the inspection and analysis that form the basis of this report.

I have personally performed the inspection and analysis that form the basis of this report.

The property being ap praised consists of four contiguous “tax parcels” of land totaling approximately 23.51 acres (gross). The land is zoned Specific Plan (SP-59), which allows for a low-density residential development. The property has a generally rolling to steep- slope top ography with the potential for future residential home development. The provided Tentative Tract Map No. 20011 depicts a six -lot subdivision with an overall residential density of 3.92 lots per gross acre. However, this TTM No. 20011 is not approved. As it currently exists, the subject’s four lots will allow four permitted homes (one on each site) according to the land use plan for SP-59. The land is further described within the body of this report.

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± 22.05 Acres of Vacant Residential Land Owner - Macknet

Towers & Associates

This appraisal report contains or considers only those recognized appraisal methods and techniques that are necessary to produce a credible appraisal. This appraisal report has been prepared in compliance with: 1) Uniform Standards of Professional Appraisal Practice (“USPAP”), promulgated by the Appraisal St andards Board of the Appraisal Foundation and 2) State laws for valuing properties for public acquisitions including the Uniform Act, 49 CFR part 24, subpart B-Real Prpoerty Acquisition.

Based on the investigation and analysis described, and subject to the assumptions and limiting conditions set forth in this report, the Fair M arket Value of the Fee Simple interest in the subject’s real property, as of October 31, 2022 is:

EIGHT HUNDRED EIGHTY-TWO THOUSAND DOLLARS
$882,000

❑ Extraordinary Assumptions: None
❑ Hypothetical Conditions: None

The accompanying report, of which this letter is a part, contains summary discussions of the data, reasoning, and analysis that were used to develop the opinion of value. It also includes summary descriptions of the subject property, the property’s locale, the market for the property type, and the appraisers’ opinion of highest and best use.

This report has been prepared for the sole use and benefit of the City of Redlands .

Neither this report, nor any of the information contained herein, shall be used or relied upon by any person or entity other than those authorized by the City of Redlands.

I appreciate the opportunity to be of service to you and look forward to future consultations at your request.

Respectfully Submitted,

James G. Towers, MAI, AI-GRS, CCIM
Principal – Towers & Associates
Certified General Real Estate Appraiser
California BREA Appraiser Identification Number AG003282, Expires 6/7/2024 Redlands Regular Meeting of 03/21/2023
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TABLE OF CONTENTS

EXECUTIVE SUMMARY OF APPRAISAL DATA AND CONCLUSIONS 1
EXTRAORDINARY ASSUMPTIONS AND LIMITING CONDITIONS 2
HYPOTHETICAL CONDITIONS 2
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS 3

INTRODUCTION
Scope of the Appraisal 5
Property Rights Appraised 6
Identification of Client and Intended Users of the Report 7 Intended Use of the Report 7
Purpose of the Appraisal 7
Function of the Appraisal 7
Prior Appraisals 8
Definition of Market Value 8

PROPERTY IDENTIFICATION
Legal Description, 9
Owner(s) of Record 9
Recent Sale History 9
Tax and Assessment Analysis 12

REGIONAL DESCRIPTION 12

COMMUNITY / NEIGHBORHOOD DESCRIPTION 18

MARKET OVERVIEW 21

SITE DESCRIPTION AND ANALYSIS 26

HIGHEST AND BEST USE 47

VALUATION 50

DIRECT SALES COMPARISON APPROACH 51

RECONCILIATION AND CONCLUSION OF FAIR MARKET VALUE 66

MARKETING AND EXPOSURE TIME 67

CERTIFICATION 68

QUALIFICATIONS OF APPRAISER 70

ADDENDA 72
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EXECUTIVE SUMMARY OF APPRAISAL DATA & CONCLUSIONS
Address / Location South Side of Helen Court at Bruder Lane, Redlands, CA
County: San Bernardino
APN: 0300-451-13, 14, 24, & 25
Census Tract 85.00
Land / Site Area ± 22.05 acres (gross)
Zoning SP59 (Specific Plan)
Flood Zone
Map Panel
Zone “X”
Map No. 0602798719H
Date Map Panel Printed 8/28/2008
Highest & Best Use Hold for future residential use
Property Type Vacant residential land
No. of Tenants / Occupants None
Building Area (SF) None
Coverage N/A
Floor Area Ratio (FAR) N/A
Current Occupancy N/A
Effective Date of Value 10/31/2022
Most Recent Date of Inspection 10/31/2022
Date of Report 11/01/2022
Personal Property (FF&E) Included None

Cost Approach Excluded
Sales Comparison Approach $882,000
Income Approach Excluded
Concluded Fair Market Value $882,000
Allocation of Value

APN: 0300-451-13 3.20 Acres x $40,000
APN: 0300-451-14: 2.50 Acres x $40,000
APN: 0300-451-24: 8.57 Acres x $40,000
APN: 0300-451-25: 7.78 Acres x $40,000

$128,000
$100,000
$342,800
$311,200
Interest Appraised Fee Simple Estate
Net Operating Income @ Stabilization N/A
Exposure Time 12 Months
Marketing Time 12 Months

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EXTRAORDINARY ASSUMPTIONS AND LIMITING CONDITIONS

An extraordinary assumption is defined as:
“An assumption, directly related to a specific assignment, which if found to be false, could alter the appraiser’s opinions or conclusions.”1
Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.

Extraordinary assumptions utilized in this appraisal include:

1. None.

The use of extraordinary assumptions may have affected the appraisal assignment results.

HYPOTHETICAL CONDITIONS
A hypothetical condition is defined as:
“A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.”2
Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.

Hypothetical conditions utilized in this report include:

1. None.

The use of hypothetical conditions may have affected the appraisal assignment results.

1 USPAP 2014-2015
2 USPAP 2104-2015
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GENERAL ASSUMPTIONS AND LIMITING CONDITIONS

This report has been made with the following assumptions and limiting conditions. They are critical to the analysis and conclusion contained in this report.

1. This Appraisal Report is intended to comply with the reporting requirements set forth under Standard Rule 2 -2(a) of the Uni form Standards of Professional Appraisal Practice (USPSP). As such, it may not include full discussions of the data, reasoning, and analysis that were used in the appraisal process to develop the appraiser's opinion of value. Supporting documentation con cerning the data, reasoning, and analysis is retained in the appraiser's file. The information contained in this report is specific to the needs of the client and for the intended use stated in this report. The appraiser is not responsible for unauthorized use of this report.

2. All proposed improvements are assumed to have been fully completed in a workmanlike manner unless otherwise stated. All proposed construction is assumed to conform to the plans and specifications listed in the appraisal report.

3. The property is appraised free and clear of any or all liens or encumbrances unless otherwise stated. Encumbrances always considered and included in the valuation, where they exist, are: real estate taxes, easements, CC&R's, typical fi nancing (comparable to cash in U. S. dollars), purchase options or sale agreements, signed leases, and unpaid bond debt.

4. Unless otherwise stated in this report, the existence of hazardous substances, including (without limitation) asbestos, mold, polychlo rinated biphenyls, petroleum leakage, or agricultural chemicals, which may or may not be present on the property, or other environmental conditions, were not called to the attention of, nor did the appraisers become aware of such during the inspection. Th e appraisers have no knowledge of the existence of such materials on or in the property unless otherwise stated. The appraiser, however, is not qualified to test such substances or conditions. The value estimate is predicated on the assumption that there is no such condition on or in the property or in such proximity thereto that it would cause a loss in value. No responsibility is assumed for any such conditions, or for any expertise or engineering knowledge required to discover them.

5. Responsible ownership and competent property management are assumed.

6. Information furnished by others is believed to be reliable if it cannot be independently verified by the appraisers (e.g., rent rolls, lease a bstracts, operating income and expense histories, etc.). However, no warranty is expressed or implied for the accuracy of such.

7. No responsibility is assumed for the legal description or for matters including legal or title considerations. Title to the property is assumed to be good and marketable unless otherwise stated.

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8. All engineering is assumed to be correct. The plot plans and other illustrative material in this report are included only to assist the reader in visualizing the property.

9. It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that render it more or less valuable. No responsibility is assumed for such conditions or fo r arranging for engineering studies that may be required to discover them.

10. It is assumed that all applicable zoning and use regulations and restrictions have been complied with, unless otherwise stated, defined, and considered in the report.

11. It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government, or regulatory agency, or private entity or organi zation have been or can be obtained or renewed for any use on which the value estimate in this report is based.

12. It is assumed that all entitlements required for development of this property, if applicable, have been or can be obtained.

13. Unless otherwise stated, it is assumed that all public utilities, including --but not limited to--electrical service, natural gas, domestic water supplies, waste water disposal, storm drainage facilities, and telephone service, are available.

14. The appraisers assume that the reader(s) or user(s) of this report has been provided with copies of available building plans, and leases and amendments, if any, encumbering the property.

15. The forecas ts, projections, or operating estimates contained herein are based upon current market conditions, anticipated short term supply and demand factors and a continued stable economy. These forecasts are, therefore, subject to changes in future conditions.

16. It is assumed that the utilization of the land and improvements is within the boundaries or property lines of the property described and that there is no encroachment or trespass unless noted in the report.

17. The d istribution, if any, of the total valuation in this report between land and improvements applies only under the stated program of utilization. The separate allocations for land and improvements must not be used in conjunction with any other appraisal and are invalid if so used.

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INTRODUCTION

SCOPE OF THE APPRAISAL

This is an Appraisal Report, which is prepared under the reporting requirements set forth in Standards Rule 2 -2(a) of the Uniform Standards of Professional Appraisal Practice (USPAP). The report includes discussions of the data, reasoning, and analysis that were used to develop the opinion of value. It also includes descriptions of the subject property, the property's locale, the market for the property type, and the appraiser's opinion of highest and best use. Any data and analysis not presented in the summary appraisal report can be obtained from the appraiser's work file(s) upon request.

Prior to accepting this assignment, the appraiser and client have together identified the appraisal problem to be addressed as being the determination of the following value conclusions:

• As-Is Fair Market Value (Fee Simple)

In compliance with the Competency Rule of USPAP, this appraiser has the knowledge and experience to complete the assignment competently.

The subject property was visually inspected along with its environs and relevant mar ket data. The appraiser’s inspection of the subject property involved the following:

• The appraiser, James Towers, conducted a visual inspection from paved roadways as well as walking portions of the site. The property was also viewed via an aerial drone. Satellite imaging was also examined. No other specialized equipment was used in the inspection of the property.
• The inspection of the comparable data is typically limited to what can be visually observed from the public street and satellite imaging.
• The effective date of the As -Is Fair Market Value is the last date of physical inspection by the appraiser.
• The subject’s site area was determined from the provided tentative tract map, which was verified as reasonable using assessor’s parcel maps. • Site specifications were determined from the onsite visual inspect ion and conversations with the property owner’s representative and officials from the city of Redlands.
• Public sources have been utilized to determine the property's existing zoning and/or to confirm the status of any proposed changes to the zoning.

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Towers & Associates Page 6 This appraisal includes the following approaches to value:

• Sales Comparison Approach

Approaches to value that have been omitted from the valuation include:

• Cost Approach and Income Approach have both been excluded as being the least applicable approaches to value. To complete either a Cost Approach or an Income approach would not add to the reliability of the final value conclusion.

Existing lease contract(s) and any other encumbrances affecting the subject's value and/or marketability were analyzed in arriving at the concluded estimate(s) of the current market value of the identified property rights, as appraised under the stated valuation premise(s).

The market data collected, evaluated, and analyzed in the valuation of the subject property included site sales data, construction cost data, market rental information (rates, terms, etc.), market expense data, and sales of comparable improved properties, as applicable. Market trends, including the supply of, and demand for, competing properties of this type in the subject's market area were also analyzed. All data has been obtained from sources that the appraiser deems reliable. Where possible and practical, the data has been verified with more than one sourc e including the principals and/or agents involved in the transaction. Public records may also have been used as a source of verification.

This appraisal is intended to comply fully with:

• The current Uniform Standards of Profession al Appraisal Practice ("USPAP") promulgated by the Appraisal Standards Board of the Appraisal Foundation. • Appraisal Institute Standards of Professional Appraisal Practice. • State laws for valuing properties for public acquisitions including the Uniform Act, 49 CFR part 24, subpart B-Real Prpoerty Acquisition.

PROPERTY RIGHTS APPRAISED

The valuation of the appraised property pertains only to the land and improvements, and does not include any fixtures, equipment, or personal property located on the premises.

The analysis reflects that of the Fee Simple Estate; defined as:

“..absolute ownership unencumbered by any other interest or estate; subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat."3

3 The Appraisal of Real Estate. 11th Edition; Appraisal Institute, (Appraisal Institute, 1992, Chicago Illinois), Page 137.

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IDENTIFICATION OF CLIENT AND INTENDED USERS OF THE REPORT

The Client and intended user of this report is identified as being the City of Redlands.

Other potential users of this report i nclude the client’s affiliates or others specifically designated by the City of Redlands.

INTENDED USE OF THE REPORT

The intended use of this report is to establish Fair Market Value for the potential acquisition by the city of Redlands.

According to information provided by the client, the City of Redlands has put forth a proposal before the Redland’s Planning Commission to acquire the subject property. The city’s proposed use will be to construct two large water reservoirs tanks to be owned and maintained by the Municipal Utilities & Engineering Department, for domestic water service to residents and businesses in Redlands. The tanks are expected to total approximately ±14 million gallons (±7 million gallons each) and would be constructed at the upper elevation of the parcels. These two tanks will replace an existing smaller tank on an adjacent site currently owned by the city. Reportedly, the site will be excavated with the proposed tanks being partially below grade.

The city has entered into negotiations with the current ownership (Macknet) for the purchase of the property. According to information provided by the client, as part of the negotiations, the city may enter into a short-term lease for Lot 3 to construct a temporary tank until the acquisition and construction can be finalized.

As requested by the client, the fee simple interest is appraised. Therefore, any potential impact of a short -term lease has been disregarded for purposes of this appraisal.

Furthermore, in accordance with State laws for valuing properties for public acqu isitions including the Uniform Act, 49 CFR part 24, subpart B -Real Prpoerty Acquisition , the appraiser has disregarded any decrease or increase in the fair market value of the real property caused by the project for which the property is to be acquired.

PURPOSE OF THE APPRAISAL

The purpose of this report is to provide an estimate of the Fair Market Value of the indicated interest in the subject real property

FUNCTION OF THE APPRAISAL

This report is to function as an impartial, independent, opinion of market value for the exclusive use of the client.

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PRIOR APPRAISALS AND/OR OTHER SERVICES

Prior to completion of this appraisal assignment, this appraiser has not completed any appraisals or other services that involved the subject property during the three-year period immediately preceding the agreement to perform this assignment. However, a prior appraisal report dated May 31, 2019, was completed by this appraiser for Kenneth D. Macknet & Elaine Macknet. This prior report provided a retrospective date of value of April 2, 2018. The intended use of this prior report was for estate purposes.

DEFINITION OF MARKET VALUE
In this appraisal report, "Fair Market Value" is defined and qualified as:

The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neit her being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. The fair market value of a particular item of property includable in the decedent’s gross estate is not to be determined by a forced sale price. Nor is the fair market value of an item of property to be determined by the sale price of the item in a market other than that in which such item is most commonly sold to the public, taking into account, the location of the item wherever appropriate. Regulati on S20.2031-1.

Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
a. Buyer and seller are typically motivated;
b. Both parties are well informed or well advised, and acting in what they consider their own best interests;
c. A reasonable time is allowed for exposure in the open market; d. Payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and,
e. The price represe nts a normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments are necessary for those costs that are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or crea tive financing adjustments can be made to the comparable property by comparison s to financing terms offered by a third party institution lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mech anical dollar for dollar costs of the financing or concession, but the dollar amount of any adjustment should approximate the market’s reaction to the financing or concessions based on the appraiser’s judgement.
(Source: Code of Regulations 12 CRF 563.17 – la and 571.1b, adopted December 21, 1987.)
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PROPERTY IDENTIFICATION

LEGAL DESCRIPTION

The appraiser was not provided with a preliminary title report to aid in the determination of the legal description. The following legal description was obtained from the provided Tentative Tract Map:

OWNER(S) OF RECORD

According to the public records, title to the subject property is currently vested in:

Kenneth D. Macknet and Elaine Macknet

RECENT SALES HISTORY

Public records, MLS data, and other available on-line information were utilized to research the past five year’s sales history.

No arm’s-length sale transactions are known to have occurred over the prior five-year reporting period.

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Towers & Associates Page 10 The subject property was offered for sale between 5/23/2021 and ending 10/20/2022 (515 days). The listing price started at $2,000,000 and was reduced to $1,795,000 on 6/02/2022. The listing agent was Clifford Rice with Century 21 Top Producers. According to Mr. Rice, there were only “light” interest in the property during the marketing period, generating two offers, neither of which were accepted by the seller. Reportedly, one offer was from a developer looking to build multiple homes and one was from an individual who wanted the property as a single estate. The offer prices were not disclosed.

The subject property is not currently known to be listed for sale nor under contract.

PROSPECTIVE ACQUISITION

According to information provided by the client, the City of Redlands has put forth a proposal before the Redland’s Planning Commission to acquire the subject property. The city’s proposed use will be to construct two large water reservoirs tanks to be owned and maintained by the Municipal Utilities & Engineering Department, for domestic water service to residents and businesses in Redlands. The tanks are expected to total approximately ±14 million gallons (±7 million gallons each) and would be constructe d at the upper elevation of the parcels. These two tanks will replace an existing smaller tank on an adjacent site currently owned by the city. Reportedly, the site will be excavated with the proposed tanks being partially below grade.

The city has ente red into negotiations with the current ownership (Macknet) for the purchase of the property. According to information provided by the client, as part of the negotiations, the city may enter into a short-term lease for Lot 3 to construct a temporary tank until the acquisition and construction can be finalized.

Negotiations are ongoing between the City and the Macknet family. This appraisal is intended for use as part of the negotiations. As requested by the client, the fee simple interest is appraised. Therefore, any potential impact of a short -term lease has been disregarded for purposes of this appraisal. Furthermore, in accordance with State laws for valuing properties for public acquisitions including the Uniform Act, 49 CFR part 24, subpart B -Real Prpoerty Acquisition , the appraiser has disregarded any decrease or increase in the fair market value of the real property caused by the project for which the property is to be acquired.

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TAX AND ASSESSMENT ANALYSIS

Privately held real estate is subject to taxation as determined by the County Assessor’s office. The county agency collects taxes on behalf of the following entities: the County, most of the county’s incorporated cities, school districts, and all other taxiing agencies located in the county including special districts (e.g. flood control districts, sanitation districts, etc.). Property taxes are limited by state law to 1% of the asse ssed value plus voter-approved obligations and special assessments. If no sale or transfer occurs or now new building takes place, assessments may not increase by more than 2% annually.

The following is a summary of the current fiscal year property taxes.

Upon a market sale transaction, the property would be reassessed at market value.

The effective tax rate is/ will be typical for the market area and is not expected to impact the marketability of the property.

APN Assessed
Land
Assessed
Improvement
Total Taxable
Value
Base Tax
Rate Base Taxes Special
Assessments Total Taxes Overall Tax
Rate
0300-451-13 $63,557 $0 $63,557 0.012029 $764.53 $1.29 $765.82 0.012049 0300-451-14 $49,653 $0 $49,653 0.012029 $597.28 $1.28 $598.56 0.012055 0300-451-24 $162,332 $0 $162,332 0.012029 $1,952.69 $1.29 $1,953.98 0.012037 0300-451-25 $147,339 $0 $147,339 0.012029 $1,772.34 $1.29 $1,773.63 0.012038 Totals $422,881 $0 $422,881 0.012029 $5,086.84 $5.15 $5,091.99 0.012041 Tax Summary
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REGIONAL DESCRIPTION
The subject property is located in Riverside County, one of the six counties, which comprise the Southern California Region. San Bernardino , Ventura, Los Angeles, Orange, and San Diego are the remaining counties that make up the region. These six counties have been, and con tinue to be, interdependent upon one another for a variety of goods and services.

The subject is located in the Standard Metropolitan Statistical Area (SMSA) commonly referred to as the "Inland Empire" region. The Inland Empire consists primarily of the two counties of San Bernardino and Riverside. Combined, these two counties encompass more than 27,300 square miles, making it the largest SMSA, in terms of land area, in the United States.

The Inland Empire has historically been in the direct path of gro wth from the greater Los Angeles and Orange County areas. Over the past f ive decades, the region has experienced a rapid growth rate, ranking as one of the fastest growing regions in the Country. The rapid growth can be attributed in part to affordable real estate in comparison to neighboring Los Angeles and Orange County, an abundance of vacant land available for development, and an extensive network of freeways. The freeway system provides business with the infrastructure necessary for moving goods and services and also allows workers to live in Riverside and San Bernardino counties to commute to the urban employment centers of Los Angeles and Orange County.

Population and Growth

According to U.S. Census statistics, the Inland Empire was officially th e fastest-growing region in the State of California between the years 1990 and 2000 and again from 2000 to 2010. Riverside County reportedly grew the fastest of any county in the state (with minimum size threshold of one million populations) while San Ber nardino ranked as the third fastest growing county. According to the January 20 21 figures, Riverside County had a population of 2.4 5 million which reflects a 10.78% increase over the 2010 figures. San Bernardino County’s January 20 21 population figure was reported at 2.18 million which reflect a 6.47% increase over the 2010 figures.

The overall rate of growth for the region slowed considerably since the start of the recession in 2007. Even so, the 2019 population figure of 4.63 million for the two-county region makes it more populous than 25 of the nation's 50 states.

Transportation / Access

The Inland Empire has evolved as a primary transportation and distribution hub for all of Southern California. The area’s excellent freeway network, major railroad facilities, and international airport, all provide the ability to process and distribute goods throughout Southern California region and beyond. Interstate 15, 215, and 10 along with State Routes 91, 60, and 210, bisect the region and provide direct access to Los Angeles, Orange, and San Diego Counties, as well as the neighboring states of Nevada and Arizona. Nearly all truck cargo entering or leaving Southern California passes through the Inland Empire. Transportation officials estimate that 35% of all container cargo in the Redlands Regular Meeting of 03/21/2023
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Towers & Associates Page 13 United States passes through the interstate 10 and Interstate 15 corridors. The transcontinental I-10 serves the southern tier of the United States by providing the main east-west link from Santa Monica and Greater Los Angeles in the west to Jacksonville in the east. Major cities served by I-10 include Los Angeles California; Phoenix Arizona; El Paso Texas; San Antonia Texas; Houston Texas; New Orleans Louisiana; and Jacksonville Florida. The Interstate -10 is one of the three coast -to-coast Interstates in the U.S. (the others being Interstates 80 and 90).

LA / Ontario International Airport (ONT) located in Ontario, is the main airport facility serving the Inland Empire. ONT is a full -service origin and dest ination airport with commercial jet service to every major city in the United States in addition to serving several foreign countries with direct flights. ONT completed construction of a $270 million expansion project in 1998. The expansion project inclu ded two new terminals and can now accommodate up to 10 million passengers a year. Passenger traffic along with air cargo traffic at ONT increased steadily between 1998 and 2006 when it reached its peak.

In 2005 / 2006, 7.2 million passengers (includes bo th arrivals and departures) used the airport and 561,756 tons of air freight was shipped. In terms of cargo, the ONT is second only to LAX in Southern California and has the 15th largest cargo volume in the U.S. With the onset of the recession, both passenger volume and cargo levels dropped dramatically; however, as the economy recovered so did the cargo and passenger traffic at ONT. The following chart summarizes both cargo and passenger traffic for 2018 and 2019.

Regional Economic Indicators

The two -county Inland Empire economy easily outperformed the state and national economies between 1997 and 2007. However, with the downturn in the housing market coupled with the global credit crisis, the U.S. economy officially slipped into r ecession in December 2007, followed by the Inland Empire in early 2008. According to published government reports, the recession officially ended on a National level in June 2009, making it the longest recession since World War II. Most experts agree t hat Inland Empire has been in recovery mode over the past 10 years and has experienced dramatic improvement in virtually every sector of the market.

The Inland Empire led California in job growth over the past two decades. From 1990 thru 2006, the Inland Empire added 549,392 new jobs. As the recession set in, the region Redlands Regular Meeting of 03/21/2023
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Towers & Associates Page 14 reported its first job losses in over a decade with 7,300 jobs lost during 2007 and another 76,500 jobs lost in 2008, and another 36,500 lost in 2009 according to recent state Employment Development Department figures. The 2008/ 2009 job losses were more than 10 times worse than the worst year on record. The 160,000 jobs lost between 2008 and mid-2010 was approximately 12.5% of the region’s workforce.

Toward the end of 2011, the unempl oyment rate in the region started to show improvement, declining from a record high of 15.1% in July 2010 down to a 31-month low of 12.2% in December 2011. Subsequently, the unemployment rate has bounced around but ha d generally continued to improve , howe ver due to the onset of the Covid -19 pandemic nationally the unemployment rate spiked . The unemployment rate in the Riverside-San Bernardino-Ontario MSA was 4.2 percent in August 2022, up from a revised 4.0 percent in July 2022, and below the year -ago estimate of 7.5 percent.

This compares with an unadjusted unemployment rate of 4.1 percent for California and 3.8 percent for the nation during the same period. The unemployment rate was

4.3 percent in Riverside County, and 4.2 percent in San Bernardino Count y.

Between August 2022 and September 2022, total nonfarm employment increased from 1,653,800 to 1,663,100, an increase of 9,300 jobs. Agricultural employment decreased by 3,400 jobs over the month. Between August 2021 and August 2022, total nonfarm employm ent increased by 89,300 (up 5.7 percent). Agricultural employment increased by 200 (up 1.6 percent).

A key economic index for the Inland region known as the Purchasing Managers Index (PMI) has recently recorded healthy increases over the past year, one of the few positive signs for the local economy. The August 2 022 Inland Empire Purchasing Managers’ Index registered 49.0, a decline from last month’s 53.0. This is the first time in nearly two years that the index has dropped below the 50.0 baseline. To establish a new trend it would take 3 months of measurements below the 50 baseline of decline in the manufacturing sector. However there has been an overall downward trend in the PMI since this year’s high of 62.2 in March. The New Orders Index (the other key component of the PMI) dropped from last month’s 51.9 to 41.4 this month, indicating that new orders have also declined significantly. Employment Index had dropped below 50 to 44.4 after 5 months of continuous growth. This month’s figure (44.8) is virtually unchanged since last month. As noted by one of the panelists: “The labor market is not getting bet ter. We use E-Verify and we are unable to get candidates that can pass the review. Commodity Price Index for the Inland Empire declined from last month’s 72.2 to 62.1 this month, reflecting a decrease in inflationary pressures. The last time we reported a figure that low was in Redlands Regular Meeting of 03/21/2023
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Towers & Associates Page 15 August 2020, and the trend over time is definitely downward as shown in the graph below.

The Supplier Deliveries Index is a measure of the speed of supplier deliveries, with numbers above 50 indicating slower deliveries. The index in creased slightly from 61.1 last month to 62.1 this month. This indicates that deliveries continue to be slowing, with the rate of slowing increasing slightly from the previous month. Panelists were also asked to make a prediction regarding the “health” of the economy over the coming three months.

Nearly half (46%) of panelists predicted that the economy would remain unchanged over the next few months. But a full 50% (down from 58% last month) predicted that the economy would be weaker in the coming quarter. Only 4% of panelists forecasted a strengthening local economy. This is the sixth month in a row that the percentage of panelists expressing optimism about the economy has remained in the single digits.

The PMI figures are produced by the Institute of Applied Research and Policy Analysis at Cal State San Bernardino. A PMI below 50 indicates that manufacturing is shrinking, while a 41 or below indicates is the economy is in decline. The highest point of the index was recorded in May 2005 at 66.0.

COVID-19
The well -publicized outbreak of the Novel Coronavirus (COVID -19) was declared a “Global Pandemic” by the World Health Organization on March 11, 2020. This was followed by a National Emergency declared on March 13, 2020. The global financial markets reg istered dramatic declines and high volatility, the government implemented more stringent travel restrictions, and the government enforced shutdowns of non - essential businesses. The pandemic followed by the response and actions of the US government has cau sed heightened uncertainty in the local and global economy.

Unemployment claims released by the Labor Department on April 2, 2020 spiked to new record with 6.6 million Americans filing for aid. This spike (shown in the adjacent chart) was preceded by 3.3 million claims the prior week and subsequently followed by millions of additional claims over the following months and into 2022. To date, more than 50+ million Americans have sought unemployment aid since mid-March 2020.

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Towers & Associates Page 16 The initial jobless claims dep icted in the adjacent
chart have crept up recently since hitting a 53 -year
low this spring current levels remains close to the
2019 pre-pandemic weekly average of 218,000.

A strengthening U.S. labor market added cushion to
the economic recovery as cases of the
Coronavirus’s have declined. The number of
Americans receiving unemployment benefits overall
is shrinking after programs created to respond to the
pandemic’s effect on the labor market ended in all
states in September 2021.

California has begun to return to something close to
normal, despite the threat associated with the recent
variants, which have proved to be far more
infectious, yet far less deadly. California Governor
has canceled stay-at-home orders and has allowed
restaurants and other servi ce industries to reopen. If California’s infections and / or hospitalization rates were to increase substantially from their current levels, the threat of renewed shutdowns would once again become problematic for the economy and real estate markets.

Most e conomists agree that the nation’s economy is expanding, as COVID infections declined and firms have been given the okay to expand in -person activity. Even so, millions remain unemployed while businesses can’t find enough people to hire at current wages. T he tight labor market has prompted many workers to look for better opportunities.

As a result of the Federal Reserve’s loose monetary policy to combat the pandemic, inflation is now running at a near 40 -year high. The Fed is now aggressively raising interest rates to curb high inflation, which is expected to cool both the labor market in the coming months as well as the demand for real estate.

Conclusions
Prior to the onset of the COVID -19 pandemic, the subject’s regional location was considered stable and benefiting from a generally strong economy. The onset of the COVID-19 pandemic impacted both the local and regional economies due to the California government being slow to lift lock -down orders that h ave impacted many businesses, both small and large.

The continued decline of the outbreak aided by the success of the vaccines, is allowing for an economic recovery; however, the fall -out of the govern ment’s monetary policy poses a new risk to the economy in the form of high inflation and increased interest rates.

Currently, the significant increase in interest rates, coupled with high inflation and the potential for an economic recession have displace d COVID and the primary concern for the region.

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REGIONAL LOCATION MAP

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COMMUNITY / NEIGHBORHOOD DESCRIPTION

Location: Suburban
Population Trend: Moderately Increasing
Employment: Moderately increasing after an extended recessionary downturn

Neighborhood Built Up ...... 50% Current Vacancy ..... 5% Single Family .......... .......... 40% Multi-Family . .......... 0% Retail. .......... ..........5% Office . ......... .......... .......... 5% Industrial ...... .......... 0% Vacant Land . ..........50%

Maintenance/Condition ...... ..........Average
Property Compatibility ....... ..........Average
Appeal/Appearance .......... .........Average
Protection/Adverse Influence .......Average
Transportation/Access ....... ..........Average
Police/Fire Protection ........ ..........Average
Community Data
The subject properties are located within the city of Redlands. Incorporated in 1888, Redlands is located in the eastern portion of San Bernardino County, approximately 64 miles east of Los Angeles, at the base of the San Bernardino Mountains. Originally settled as an agricultural community, the existing citrus groves, natural areas, and historic architecture lend a small town atmosphere to the city.

Redlands has a wide range of industrial, service, high -tech, and retail businesses. It is no longer reliant upon its historical agriculture industry, although many of the citrus groves still operate in the area. Major employers range from government and high-tech computer services to plastic products manufacturing, to large distribution warehouse s. ESRI, a world leader in geographic information system software, is headquartered in Redlands and is one of the largest private employers in the Inland Empire. The health care industry is also a very important segment of the economy, influenced heavily by neighboring Loma Linda University Medical Center, Redlands Community Hospital, Beaver Medical Group (headquartered in Redlands), Kaiser Permanente, and the Veterans Administration Hospital
Excellent educational opportunities have played a large part in the establishment of Redlands as a desirable place to live. The highly regarded University of Redlands has been in existence since 1907. The University is unique in the region in that it houses approximately 80 percent of its students on campus. This l arge on-campus population along with an on campus faculty of 100 has helped to create what the Redlands Chamber of Commerce refers to as an “Ivy League” quality campus.

According to the California State Department of Finance, the 2010 census figures repor t the population to be 68,747, which represents an increase of just 8.1% over the 2000 population figures. More recent figures show the January 2021 population at 71,154, which reflects continued population growth of 3.38% since the 2010 census. This relatively slow rate of growth is due in part to a history of slow -growth initiatives passed by the city. While residential growth has, at times, proved somewhat difficult in Redlands, Redlands Regular Meeting of 03/21/2023
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Towers & Associates Page 19 most local area brokers / agents agree there is no market resistance to d eveloping commercial, industrial, or residential property within the city.

Recent new construction within Redlands includes a wide variety of property types that include retail, multi-family, industrial along with a limited amount of new office space.

Neighborhood
The subject property is located within the southeasterly quadrant of the city of Redlands.

The larger neighborhood boundaries are roughly defined by the land area within an approximate 1.5 mile radius of the subject property. This area is known locally as “South Redlands” as it lies to the south of the I -10 Freeway and south of the older historic downtown area of the city.

The subject property is on the south perimeter of the neighborhood. Surrounding land uses to the south are mostly undeveloped foothills. Land uses to the north, east and west are improved with single-family homes and include some of the best quality and highest priced homes in the city. The larger neighborhood is generally centered around the Redlands County Club, which is a private golf-oriented club that offers an 18-hole course with clubhouse / restaurant facilities.

The primary access roadway into the neighborhood is Sunset Drive, which is a two -lane residential roadway that winds through the south -side neighborhood. The older historic Downtown Redlands is located approximately 2.5 miles northwest of the subject property.

Access to the I -10 Freeway is approximately 1.5 miles north. The civic center, High School, elementary / Jr. High School, and other typical con veniences are all within 2.5 miles of the property.

Conclusions
Access and proximity to typical neighborhood amenities is good. Nearby residential homes are generally well maintained and represent some of the most desirable residential homes in the city. Future residential development is limited by the supply / availability of developable land.

Group Single Single Two to Mobile Vacancy
City Total Household Qtrs Total Detached Attached Four 5+ Units Homes Occupied Rate Redlands 71,154 68,786 2,368 27,214 17,451 1,202 3,144 4,331 1,086 25,405 6.60% Population Housing Units
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NEIGHBORHOOD LOCATION MAP

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RESIDENTIAL MARKET OVERVIEW

Given the subject property’s allowable use for residential development, the appraiser has included a market overview that focuses on new home development within the market area.

The California Association of Realtors reports the September 2022 number of sold single family home sales in the Southern California market area ( Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties) was down 6.33% from last month and down 33.33 % from a year ago. The average median price paid was $8 20,128, virtually unchanged from last months $8 19,452 and up 5.64% from September 2021’s price of $776,342.

The subject property is located within the San Bernardino County. As noted in the chart above, San Bernardino submarket has experienced a recent month -to-month price increase and posted an 9.8% increase year-to-year, the highest for the region. Sales are down 2.2% month-to-month but down dramatically 37.2% year-to-year.

In relative terms, the Inland Empire remains the most affordable region in Southern California, with the average for the two -county area being significantly below other surrounding S outhern California counties. According to their 2 nd Quarter 2022 report released by the California Association of Realtors, 49% of households in Riverside and 59% of households in San Bernardino market area can afford a “median priced” house.

The subject property represents a potential large -lot subdivision consisting of four lots.

As was presented previously, the subject ’s four lots had a six -lot TTM that was never approved. Generally, th is type of development is rare in the marketplace. The development would appeal to a small regional builder, regional investor, or custom home builder. It would also appeal to an individual looking to build a single large estate with the ability to sell off additional lots in the future. On the following page is a recent survey (as of 10/1/2022) prepared by Land Advisors, one of the largest brokerage companies in the region specializing in residential subdivision land. The survey indicates that merchant builders have purchased only a limited number of large lot subdivision s since January 2018. Of note, there are no transactions that have occurred in 2022. Prices reported range widely from $ 47,545 per lot to $ 281,389. When “finishing costs” are added, the “finished lot” cost equates to a range of $170,000 and $430,000 per lot. This finished lot value includes all infrastructure costs, permits, and fees (including school fees).

September 2022
Southern California Sep 2022 Aug 2022 Sep 2021
Price
MTM%
Chg
Price
YTY%
Chg
Sales
MTM%
Chg
Sales
YTY%
Chg
Los Angeles $891,770 $854,960 $886,050 4.30% 0.60% 2.40% -31.70% Orange $1,200,000 $1,200,000 $1,100,000 0.00% 9.10% -5.80% -30.90% Riverside $600,000 $620,000 $570,000 -3.20% 5.30% -2.40% -31.00% San Bernardino $480,000 $472,750 $437,000 1.50% 9.80% -2.00% -37.20% San Diego $899,000 $885,000 $850,000 1.60% 5.80% -9.50% -33.20% Ventura $850,000 $884,000 $815,000 -3.80% 4.30% -20.50% -36.00% Averages $820,128 $819,452 $776,342 0.08% 5.64% -6.30% -33.33% Median Sold Price of Existing Single-Family Homes Sales Redlands Regular Meeting of 03/21/2023
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Towers & Associates Page 23 According to data generated by Fidelity National Title, the market has been “”cooing” in recent weeks, as more homes are ava ilable and demand is less, resulting in prices moving lower. Expect this trend to continue as increasing interest rates force prospective buyers to sit on the sidelines and wait for a clear picture of the market to develop. A summary of charts for the Redlands Market are presented on the following pages.

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Towers & Associates Page 25 Conclusions

The recent moves by the Federal Reserve to raise interest rates is part of a larger monetary policy moves to help curb the dramatic increase in inflation. Interest rates, while still historically low at around 7%, have moved up faster than in any period since the early 1980’s. The increase in interest rates has had an immediate impact on the housing market and by extension, the market for vacant residential land. The Redlands market is no exception. Prices of residential homes have plateaued and are now posting modest decreases and unsold inventory is up for the first time in years.

Based on the data and input from market participants, the increases in interest rates is generally expected to continue to slow market conditions until which time inflation is brought under control. Economists and market participants agree that the current economy is on the brink of recession, which would on ly exacerbate the adverse market conditions. The market conditions will obviously impact the buying decisions of both local area home builders as well as larger merchant builders looking to purchase land for future development.

.

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SITE DESCRIPTION AND ANALYSIS

The subject’s site consists of four contiguous “tax parcels” of land totaling ±22.05 acres (Gross). The land is zoned for residential use, within Specific Plan 59. A tentative tract map (TTM No.2011) has been reviewed, which would subdivide the site into six prospective residential home sites. However, the tentative map has not been approved and is in co nflict with the Specific Plan which limits development due to slopes to one residential unit per lot or a total of four prospective home sites.

The larger site is contiguous to Helen Drive and accessed via Bruder Lane (aka Helen Court). Bruder Lane is a narrow paved street that ends in a cul-de-sac south of Helen Drive. Upon development of the site, Bruder Lane will need to be improved (widened) and extended to access all of the lots within the prospective tract. In its current condition, the site is mostly in an ungraded natural state with rolling to steep-sloping topography.

Upon future development, the four lots would have graded pads that offer views of the surrounding hillsides and community. The potential building pads are depicted on the Tentative Tract Map with the majority of each site being unsuable, down-sloping, hillside.

A Parcel Slope map is also presented showing topographical lines. The site summary description is summarized as follows:

Address: ............................ Not assigned
Location: ............................ South side of Helen Drive, at Bruder Lane.

City: ................................... Redlands
APN: .................................. 0300-451-13, 14, 24, & 25 Census Tract ..................... 85.00
Site Area:

APN: 0300-451-13............. 139,392 SF or 3.20 Acres
APN: 0300-451-14............. 108,900 SF or 2.50 Acres
APN: 0300-451-24............. 373,249 SF or 8.57 Acres
APN: 0300-451-25............. 338,796 SF or 7.78 Acres
Total Site Area .................. 960,337 SF or 22.05 Acres Shape ................................ Irregular
Utility ................................. Average with potential for six graded pads (four home sites) with sloping topography creating open space surrounding each site
Dimensions ....................... See TTM and Assessor’s Map Street Frontage ................. Helen Drive
Street: ................................ Asphalt paved street Curb/Gutter: ...................... Asphalt
Sidewalks: ......................... None
Alley: ................................. None
Rail .................................... None
Lighting: ............................. None
Electric: ............................. To larger site – Southern California Edison Gas:................................... To larger site – So. Cal Gas Water: ................................ To larger site – Public municipality Sewer: ............................... Private Septic

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Towers & Associates Page 27 Property Ratings

Access .......... .......... ..........Fair - Average Street Frontage ...... .......... ..........Fair - Average Shape .......... .......... .........Fair - Average Function Utility ........ .......... ..........Fair - Average View Potential ....... .......... ..........Good
Drainage .......... .......... ..........Fair - Average Adequacy of Utilities .......... ..........Fair - Average Traffic Pattern ......... .......... ..........Fair - Average

SATILLITE IMAGE SHOWING EXISTING LOT LINES

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Towers & Associates Page 28 ASSESSOR’S PARCEL MAP (DETAIL)

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TENTATIVE TRACT MAP

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Towers & Associates Page 32 Entitlements / Tentative Tract Map

The presented previously, the appraiser was provided with a copy of a Tentative Tract Map (TTM No. 20011), prepared by Land Engineering Consultants, Inc. dated November 2015. According to planning and engineering officials at the city of Redlands, this TTM is not active at this time. In addition, neither the planning department nor the engineering department has any record of the TTM having ever been submitted and / or approved.

The TTM proposes a residential subdivision for a total of six lots within the tract . The overall residential density is thus 3.92 lots per gross acre. T he minimum lot is 2.5 acres gross. The development is proposed to be completed in two phases with Phase 1 to include Lots 1, 2, and 3 and Phase 2 will include Lots 4, 5, and 6.

The TTM shows Bruder Lane will require widening and extending to provide a 60’ wide private roadway to access all six proposed lots within the development . The street is currently partially paved and is proposed for concrete curbing along with a private electronic entrance gate with keypad.

There is an existing fire hydrant located near the end of the existing pavement . There also appears to be a water meter installed onsite of the proposed Lot 2. There is underground electrical located on Lot 3.

The TTM is in conflict with the Specific Plan presented on the previous page. The Specific Plan limits the existing four lots to one potential residence each due to slopes. For purposes of this analysis, the development potential is limited to its existing four lots with potential for four residential properties.

Development Costs and Fees
No estimated development costs were provided by the client. Given the topography of the site, the development costs and fees would likely be high in relation to typical residential tract development. The limited number of similar developments that have been constructed over the past few years would suggest that the cost to develop the site would be anywhere from $ 150,000 to $300,000 per lot or more. One active agent who agent specialize s in sales of residential tract development s, suggested during an interview that the subject’s development costs and fees would very likely be over $200,000 per lot and could b e as high as $ 300,000 per lot (cost would include all construction costs associa ted with the infrastructure, engineering, finished site grading, extending utilities to building pads, permits, development fees, and school fees).

Adjacent Uses

Land use of all the surrounding property is single family residential except at the southwest corner, which is a large , above ground, water tank / reservoir owned by the city of Redlands. Other improvements on this adjacent site include two cell tow ers, a radio / communication tower, and related equipment. The above ground tank and other improvements is immediately south of the proposed building pad on APN: 0300-451-13.

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Towers & Associates Page 33 The water / tank reservoir is unsightly and intrusive, especially for the -13 parcel.

However, the intrusive nature of the tank is somewhat offset by the view potential for this site, which is unobstructed and looking away from the tank.

Zoning

The zoning and land use is subject to the city of Redlands Zoning code. The subject property is located entirely within Specific Plan area SP-59. According to the city code and city planning officials , the only allowable use in this specific plan area is that of residential. This is a low density zoning with the number of lots dependent on the amount of slope exhibited by the site topography.

ZONING MAP
The specific plan is retained in file. As presented previously, the development potential is limited within the specific plan to one residential unit on each of the subject’s four lots.

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Towers & Associates Page 34 Topography, Drainage and Soils
The topography varies from gentle rolling hills to steep slopes. In general, the site topography is upsloping from Helen Drive. The topography is the site’s single largest determinant in any potential development. The site will require extensive grading to create / expand building pads for future structures. Any development of the site will create substantial amount of open space area due to unbuildable slopes.

The TTM indicates proposed earthwork including:

• Cut: 21,220 C.Y.
• Fill: 21,220 C.Y. included losses.

Site is likely to balance with no import/export of dirt required. There are no obvious signs of soils subsidence or other possible soils problems noted at the time of inspection. The appraised value assumes the composition of the soil is adequate to support development of the site to its highest and best use.

Hazardous Substances

The appraiser was not provided with a Phase I Environmental Assessment to help aid in the detection of hazardous substances. The appraiser is not an expert in the detection of hazardous waste. However, the based on the visual onsite in spection, there are no obvious signs of toxic or hazardous waste contamination. There are no automotive uses within the subject property, nor are there any known 55-gallon drums or underground fuel tanks on or adjacent the subject property. The analysis assumes the subject property is free of any toxic or hazardous waste contamination.

Earthquake / Seismic Zones

The subject property is not within a California Alquist -Priolo Special Studies geographic hazard zone (i.e., an earthquake zone). However, the subject property is within ten miles of at least one designated fault zone. Southern California is a maze of recorded fault zones. The subject's local area is not known to have any unusual reputation or suffer from any adverse impact associated with earthquakes.

Easements, Encroachments, and Restrictions

The appraiser was not provided with a preliminary title report to aid in the detection of easements, encroachments, and/or property restrictions. The appraiser is no t an expert in matters of legal title. Based only on a cursory visual inspection along with review of the provided Tentative Tract Map the following is noted:

• Public utility easements are provided for Southern California Edison Company, along with water and telephone company easements.

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Towers & Associates Page 35 • Much of the unusable slope areas are proposed as private open space easements.

It is assumed that there are no obvious adverse easements, encroachments, or restrictions that would materially impact the marketability of the property.

Environmental Issues

The subject’s site is not covered with aquatic vegetation, nor is it located within close proximity of the ocean and is thus assumed to be out of any designated wetland area. In addition, the subject property is not known to be within a designated agricultural preserve or impacted by any government -protected species that would prohibit constru ction or operations. The appraised value assumes the subject site can be developed to its highest and best use.

Flood Zone

The flood hazard status of the subject property was obtained through Department of Homeland Security Standard Flood Hazard Determination Form (SFHDF). According to this information, the subject property is located entirely within Zone “ X” Map No. 06071C8717H; Map No. 06071C8740H, and Map No. 060739 , effective August 28, 2018. This zone designates the property as being outside of a special flood hazard area.

Flood insurance available in participating communities but is required by regulation.

Special Flood Hazard Area: No; Participation: REGULAR / ELIGIBLE.

Subject
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Building Improvements

No permanent building structures were noted on any portion of the subject site.

Agricultural Use

No current agricultural uses are present on the property.

Conclusions
Overall, the subject property is suited for a low-density residential use with a substantial amount of open space due to sloping topography. The site benefits from its reasonable proximity to the city of Redlands conveniences, which offer support services, schools, and typical conveniences. Surrounding residential uses are some of the highest quality and highest priced homes in the city.

No estimated development costs were provided; however, given the topography of the site, the development costs and fees will likely be high in relation to typic al residential tract development. The high costs to develop the site poses an obvious problem for the developer who would be required to “front -load” $1,000,000 or more for the opportunity to develop the four residential homes permitted by zoning. The po tential for additional home sites would involve the recording of a tract map with substantial additional costs for grading and site development . The typical merchant builder looking to develop the site would very likely look at the overall “finished lot” price when deciding what to pay for the raw land. Theoretically, the cost and fees to “finish” the site would be deducted from the finished lot price to determine a reasonable price to pay for the land in its current state.

As an alternative the site could be developed as a single large estate that would support one or more single -family homes, all of which are intended to be held under a single ownership. This type of development would require less infrastructure costs as much of the site would be left in a natural ungraded state. This alternative w ould also allow an owner to finish and sell off one or more parcels in the future.

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SUBJECT PHOTOGRAPHS

Aerial View Looking North Over Lot 1 (See TTM)

Aerial View Looking Northeast Over Lots 1, 5, and 6 (See TTM) Redlands Regular Meeting of 03/21/2023
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SUBJECT PHOTOGRAPHS

Aerial View Looking Northwest over Lots 1 and 2 (See TTM)

Aerial View Looking West over Lots 2, 3, and 4 (See TTM)

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SUBJECT PHOTOGRAPHS

Existing Street Improvements – Bruder Court (aka Helen Court)

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SUBJECT PHOTOGRAPHS

Overlooking APN: 0300-451-24 (Lot 2 of TTM)

Overlooking APN: 0300-451-24 (Lot 1 of TTM)
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SUBJECT PHOTOGRAPHS

View Potential From APN: 0300-451-24 (Lot 1 of TTM)

Overlooking APN: 0300-451-13 (Lot 3 of TTM)

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SUBJECT PHOTOGRAPHS

View Potential from APN: 0300-451-13 (Lot 3 of TTM)

Overlooking APN: 0300-451-13
Noting the Obtrusive Nature of Adjacent Existing Water Reservoir

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SUBJECT PHOTOGRAPHS

Overlooking APN: 0300-451-14 (Lot 4 of TTM)

Overlooking APN: 0300-451-25 (Lot 5 of TTM)

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SUBJECT PHOTOGRAPHS

Overlooking APN: 0300-451-25 (Lot 6 of TTM)

View Potential From APN: 0300-451-25

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SUBJECT PHOTOGRAPHS

Overlooking APN: 0300-451-14
Noting Obtrusive Nature of Adjacent Water Reservoir and Cell Towers

Overlooking APN: 0300-451-24 (View from Helen Drive)
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SUBJECT PHOTOGRAPHS

Street Scene – Looking West on Helen Drive

Street Scene – Looking East on Helen Drive

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HIGHEST AND BEST USE

Highest and Best Use is defined as:

"The reasonably probable and legal use of vacant land or improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value."4

The analysis of the site requires some basic considerations as to what uses are reasonably possible, what uses are legally permitted with respect to zoning, deed restrictions, recorded covenants, conditions, and restrictions. In addition, the analysis must review the uses that ar e financially supported under existing and projected market conditions. The analysis must determine what uses among the alternatives are physically possible and will be the most profitable.

Legal and Permissible Uses

The subject property is under the zoning jurisdiction of the City of Redlands and has a zoning of Specific Plan SP-59. This zoning will allow for low -density residential development. Density is based topography and slope exhibited by each potential lot. The specific plan would allow for one residential home on each lot or a total of 4 potential homes.

The provided Tentative Tract Map (TTM) # 20011 shows a six lot subdivision with potential building pads offering view potential of the surrounding neighborhood and foothills. The TTM is not approved nor submitted to the city for approval. However, the TTM does provide a conceptual view of the development potential of the site.

According to planning officials, given the subject’s zoning designation and rolling hills topography, this area would support a very low density residential use. Recognizing the zoning and topography restrictions, development of four homes, one on each lot, would be a legal use of the site.

Physically Possible, Appropriately Supported

Public water, electricity, and gas are all available along the perimeter of the site to varying degrees from Helen Drive and Bruder Lane. Public sewer is not available to the site and all development would require private septic service.

The natural topography of the site is that of rolling hillside with some areas having steep grades. The rolling hillside will require significant grading to complete building pads , access drives, and widen the street. There is a significant amount of open space due to the sloping topography.

Nearby tracts are developed with a newer low-density residential development. Under the principal of conformity, the most likely use of the site would be some type of low density

4 Ibid, Page 50
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Towers & Associates Page 48 residential development. The location together a nd large lot sizes would support large homes likely in excess of 3,000 SF. The ability to move lot lines could potentially increase the overall desirability of the individual lots.

Financially Feasible

Sales prices of finished homes have been increasing over the past decade ; however, recent interest rate increases have slowed sales and are expected to slow new home development. In its current condition, the subject property is considered raw land with a conceptual Tentative Tract Map . The tentative tract map is an entitlem ent that could reduce development time. However, given the lack of any approvals the timing of any new development would be lengthy. Furthermore, the tentative tract map is in opposition to the specific plan (6 lots vs. the existing 4 lots) and, therefore, a typical buyer is not likely to give any contributory value to the TTM.

No cost estimates for construction of the tract infrastructure were available to the appraiser. Any potential development of the subject property is very speculative in nature due to the perceived high cost of development and time involved in obtaining entitlements (i.e., planning, approvals, architectural, engineering, etc.), constructing the in -tract infrastructure, constructing the homes, and marketing the development. Given the perceived high cost of the in-tract infrastructure financial feasibility of constructing a 4-lot development under current market conditions is doubtful.

An alternative to developing the site with a 4 lot residential development would be for a smaller developer / owner to utilize the site for a single estate with the potential to process a future subdivision or build a second, third, or fourth home on the site in the future.

Maximally Productive

It is also important to determine which use, among those that are financially feasible, would provide the greatest net return to the land. That which provides the greatest return would be "maximally productive".

To specifically determine the feasibility of any one particular use (i.e., to conduct a complete feasibility study) goes beyond the scope of this report. However, given the current condition of the property, the perceived high cost of constructing the in -tract infrastructure, development of a 4 lot residential development under current market conditions is unlikely. The most likely buyer for the site would be a land speculator, owner-builder, or other investor looking to “land bank” the property and hold it for future development. Alternatively, a local area builder / owner could develop the site as a single large estate lot with one or multiple homes. The large estate development would not likely require a tract map and could potentially be developed soon er than any larger development at a lower cost, while retaining the ability to subdivide in the future.

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Towers & Associates Page 49

Conclusion of Highest and Best Use As-If Vacant

Overall, the highest and best use is to hold site for future development by either a merchant builder looking to develop 4 residential homes or a single local area owner- builder looking to develop a large estate with the ability to build / sell additional homes in the future.

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Towers & Associates Page 50

VALUATION

Market Value is the present worth of all expected future net benefits accruing from ownership of real estate. The appraisal process is a systematic, orderly and logical method of collecting, analyzing and processing market data in order to make an informed judgment of the Market Value of specific real property. In order to measure the present worth of future net benefits, three appraisal methods are typically developed for processing market data into indicators of value. They are: the Cost Approach; the Sales Comparison Approach; and the Income Approach. All three are Market Approaches.

All three are interrelated because each is based on specific data collected from active participants in the real estate market. The applicability of each approach depends directly upon the nature of the market, which governs the quality and quantity of the data available.

Applicable Approaches for the Subject Property Valuation

For purposes of this analysis, the appraiser has relied on the Sales Comparison Approach only. Both the Cost Approach and the Income Approach were excluded as being the least applicable approaches to value.

Exclusion of the cost approach is based on:
❑ The subject property is vacant land with no building improvements. Therefore, a cost approach is not applicable.
❑ A related analysis using a developmental approach is not possible due to the subjectivity involved with estimated the costs associated with constructing the infrastructure and building a tract of homes (i.e., no development cost analysis exists).

Exclusion of the Income Approach is based on:
❑ Land similar to the subject is not typically purchased for its income producing capabilities. Therefore, the Income Approach is not applicable.

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Towers & Associates Page 51

DIRECT SALES COMPARISON APPROACH

The Direct Sales Comparison Approach involves directly comparing the subject property to similar properties that have recently sold or are listed for sale. The Direct Sales Comparison Approach is based upon the principal of substitution. This principal st ates that “… The value of a property that is replaceable in the marke 7t tends to be set by the cost of acquiring an equally desirable substitute property of similar utility and desirability within a reasonable amount of time.”

A major premise of the Direc t Sales Comparison Approach is that the market will determine a price for the subject property in much the same way that it determined the price of the comparable sales. Sales data similar in size, quality, and location to the subject were researched.

To determine the effect of time on the general level of sales prices, the sales were reviewed over a four-year period. The search consisted of a review of public records, published sources such as CoStar COMPS®, LoopNet®, AIR® Commercial Real Estate Association, local Multiple Listing Board, along with data and interviews provided directly by brokers and market participants active in the area.

A summary of comparable sales is located on the following page.

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Towers & Associates Page 52

Price Topography
Data Sale Date Sale Price PSF of Land Entitlements Building Buyer / No. Location Doc. # Terms Per Acre SF Acres Zoning Utilities Improvements Seller Sub. South side of Helen Dr. @ Bruder Lane N/A N/A N/A 960,337 22.05 SP - 59 Rolling Hills Vacant Owner: Macknet Redlands TTM (not approved)
APN: 0300-451-13, 14, 24, & 25 Public water, electric
Comments Four contiguous parcels. Rolling topography requiring extensive grading but offers good view potential. 1 Hollie Drive, N. of Jeffery Dr. 9/15/2022 $236,500 $0.56 424,274 9.74 RA-10 Rolling Hills to Steep Topography Vacant Victor Caldas-Sanchez Redlands Doc. 395706 Cash $24,281 Raw Land Emerald Bay Eleven LLC APN: 471-250-020 No public water or electric
Comments
2 Alessandro Rd., S. of Sunset 6/9/2021 $649,500 $0.56 1,168,714 26.83 SP - 43 Rolling Hills Vacant Sunrise R Ranch LLC Redlands Doc. 259938 Cash $24,208 Zoning Only Timothy & Elizabeth Jenkins APN: 0175-271-11 Public water, electric
Comments
3 31848 Highview Drive 6/4/2021 $595,000 $1.85 321,037 7.37 R-R-A Rolling Hills Vacant Mcguire LLC Redlands Doc. 255722 Cash $80,733 Zoning Only Khissi Living Trust APN: 0301-142-02 Public water, electric
Comments
4 9305 Smiley Blvd. 2/4/2022 $700,000 $0.85 821,977 18.87 RA-10 Rolling to Steep Slope Tiny House New Age Gastroenterology Inc.

Redlands Doc. 74599 Seller Carry $37,096 Zoning Only Fence / Corrals Thomas B. Reingrover APN: 471-270-028 Well is in. Electric Available.

Comments
5 Opal Street, N. of Panorama Dr. Listing $2,556,000 $1.97 1,297,216 29.78 SD-Res Rolling to Steep Slope Vacant Redlands Cash Eq. $85,829 Zoning Only Seller: Paul F. Ryan APN: 0299-241-01, 02, 03, & 08 Public water, electric
Comments
6 Creekside Dr. N. of Live Oak Canyon Rd. Listing $2,100,000 $0.77 2,732,519 62.73 A1 Rolling Hills to Steep Topography Vacant Redlands Cash Eq. $33,477 Zoning Only Seller: Richard & Anne Hernandez APN: 0294-151-49 Well is in. Electric Available.

Comments

SUMMARY OF LAND DATA
Land Area
Four contiguous parcels with access from Panorama Drive and future extension of Opal Ave. Zoning allows residential use according to slopes and planning approval. According to planning officials, this area supports a very low density residential use. Could support several large lots with residential homes. Numerous options for home pads. Very good view potential.

Single parcel of land allowing one residence. Part of the Tremont Ranch (Phase 1, Lot #4). Rolling topography with steep slopes and a rough graded pad with Panoramic view. Paved private road access. Tremont Ranch is a gated development with all home sites being "off-the-grid". Each site requires a well for water, solar electric, propane gas, and septic.

Single parcel of land. Rolling topography with multiple opportunities for building pads. Zoning would allow site to be subdivided with minimum lot size of 20,000. However, slopes would reduce the number of potential lots to approximately 7 to 10 lots.

Single parcel of land. Rolling topography with large graded plateau offing panoramic views overlooking surrounding hillside. Numerous other opportunities for additional building pads.

Shared private gate and paved access easement. Water well is in. Electric is to adjacent parcel.

Single parcel of land with +- 2 acre plateau on top of lot for potential residential home. Zoning would allow site to be subdivided. Per the specific plan, this site can accommodate up to 10 residential homes. The site is unentitled raw land. Electric, gas and water are available to the property. Property was on the market 695 days. Original asking price was $1,095,000. Most recent asking price was $899,000. Prior sale on 6/21/2018 at $600,000.

Single parcel of land. Rolling topography with multiple opportunities for building pads. Graded pad is approximately two acres with compaction complete. Two wells with storage tank. Electric service with meters is onsite. Fenced throughout. Horse corral, two car garage, tiny house fully functional.

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Towers & Associates Page 53

COMPARABLE LOCATION MAP
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Towers & Associates Page 54 Comparable Data No.1

Comparable Data No.1 ($24,208 / Acre) is a recent sale of a single parcel of land. The purchase price was $236,500 or $24,281 per acre. The site is accessed from Hollie Drive.

The site has rolling topography and a graded pad that offers panoramic views to the future residence. The property is part of Tremont Ranch, a custom lot subdivision located south of the Redlands city limits. This particular site cannot be subdivided and r epresents a single homesite. Tremont Ranch is marketed as an “off -the-grid” development whereby each homesite requires a private well, septic, and solar power. Reportedly, Edison will only bring electrical power to the development if all property owners pay to bring in the service. According to the listing agent, all buyers within Tremon Ranch are planning to use solar power rather than pay to bring in municipal power. The larger Tremont Ranch development has sold numerous sites over the past several ye ars. Comparable Data No.1 is one of the most recent sale s in the development and was known as Lot #4 in Phase 1. The adjacent site, Lot #3, sold in November 2021 at $225,000 suggesting the market price has remained relatively level over the past year.

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Towers & Associates Page 55 Comparable Data No.2

Comparable Data No.2 ($24,208 / Acre) is a recent sale on 6/9/2021 at a purchase price of $649,500 or $2 4,208 per acre. The property had been on an off the market for an extended period of time, dating back to May 2019 . The original asking price was $1,095,000 and the price was reduced several times during the marketing p eriod. This site has an abundance of frontage along Alessandro Road, with a secondary access from Sunset Drive. The site has rolling topography with no structures. There was a TTM for 10 lots which is now expired. The development potential of this site would likely support multiple residences. The buyer is a regional home builder who will process entitlements for future development of luxury homes. The listing agent indicat ed that they “definitely tested the market” for this property by starting high on the asking price and then dropping the price until a buyer could be found. A prior sale on 6/21/2 018 was at $600,000 suggesting that there has been little movement in the market. The prior buyer had planed to develop the property as one la rge estate / horse ranch but changed his mind and decided to sell.

Comp. 2
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Towers & Associates Page 56 Comparable Data No.3

Comparable Data No. 3 ($80,733 / Acre) is a recent sale in the southeast portion of Redlands. The site has multiple access points along Highview Drive , which is an unpaved. The topography is rolling with approximately 50% of the site being level with opportunities for numerous building pads. The zoning would allow for 20,000 SF minimum lot sizes. Given the topography and configuration, it is estimated that the site could be subdivided to accommodate 7 to 10 lots. Gas, electrical and water are to the site. No sewer is available so a private septic is required. The land is currently unentitled.

The listing price was $599,000 with the property having been on the market for a reported 104 days prior to entering escrow.

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Towers & Associates Page 57 Comparable Data No.4

Comparable Data No. 4 ($37,096 / Acre) is a recent sale consisting of 18.87 acres of land that is just outside the Tremon Ranch development, south of Redlands. The comparable is irregular in shape with frontage and access from both Smiley Blvd and Jeffery Drive. Topography is rolling with a larger (approximately 2 acre) plateau offering panoramic views. This site has two water wells constructed with electric (Edison) meter also onsite. There are fences and corrals, and a “tiny house” that is fully functional but considered personal property as it is not on a permanent foundation. The site could potentially be subdivided. Given its size, configuration, and zoning, the property could likely support two lots. The property was listed for an extended period of time (1,165 days) at an asking pri ce of $750,000. The owner -carried the financing with $350,000 down.

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Towers & Associates Page 58 Comparable Data No.5

Comparable Data No.5 ($85,829 / Acre) is an active listing of four contiguous parcels of residential land located east of the Redlands city limits. The property has been listed at its current price for 144 days on the market. The property has rolling topography with multiple opportunities for bu ilding pads with very good view potential. Access is via Panorama Drive, which is a paved but privately maintained road. Future access could also be provided via Opal Street, which would require construction. Municipal water is within 200’ of the site. Electric is available. Zoning would allow for a very low -density subdivision. The property is adjacent to an open space nature preserve.

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Towers & Associates Page 59 Comparable Data No.6

Comparable Data No. 6 ($33,477 / Acre) is a n active listing of a single parcel of residential land. The property is accessed via a paved easement street off of Live Oak Canyon Road. There are two water well but no pump or holding tanks onsite. Electric is near property boundary. The site has rolling topography with a large, rough graded pad with panoramic views. The site could likely be subdivided for multiple lots. The property has been listed at the current asking price for 205 days. The listing agent reports no offers and only limited activity from prospective buyers.

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Towers & Associates Page 60

VALUATION

The data utilized represents the most comparable data that could be found in the general market area. In order to determine a value for the subject property, the land data must be adjusted to reflect the differences between them and the subject site. The limited land data makes adjustments difficult to support with a paired sales analysis. In some instances, it was necessary to make qualitative rather than quantitative adjustments. The qualitative adjustments are based on the appraiser's general knowledge of the area as well as information obtained from personal interviews with active broke rs and market participants. Cost of construction is also considered as a basis for certain adjustments.

In many cases, the adjustments are not meant to be exact measurements but an attempt to reflect the thinking of a typical buyer in the marketplace.

The basic elements of comparison that have been considered within this analysis include:

❑ Transactional adjustments
o Property rights conveyed
o Financing terms
o Conditions of sale
o Expenditures anticipated after sale
o Market conditions

❑ Property Adjustments
o Location
o Physical characteristics
o Economic characteristics

The comparable data used in the analysis represents the best data available. An emphasis was placed first on location, site utility / use, and then size. The com parable data was chosen in an attempt to “bracket” the subject property’s site size in an effort to better support the conclusion of value.

Financing Terms / Cash Equivalency

Sale Data No.1, 2, and 3 were all purchased with cash and no adjustment is warranted.

Sale Data No.4 was seller -financed. Although the terms of the financing were not disclosed, the seller financing often saves the borrower considerable cost in loan fees. A 3% downward adjustment is warranted to reflect cash equivalency.

Sale Data No.5 and 6 are active listings and assume cash equivalency. No adjustments are warranted.

Extracted Value of Onsite Improvements

Sale Data No.1, 2, 3, 5, and 6 are all vacant unimproved sites and no adjustment is warranted.

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Towers & Associates Page 61

Sale Data No.4 was improved with fencing, horse corrals, a two car garage, and a “tiny” house. A downward adjustment is warranted for the contributory value of the improvements.

Real Property Rights Conveyed

The subject property’s fee simple interest is being appraised. All of the sales utilized in the analysis transferred (or will transfer) the fee simple interest. No adjustment is warranted.

Conditions of Sale / Economic Characteristics

Data No. 5 and No. 6 are active listings. Typically, properties will sell for less than the asking price due to negotiations between buyer and seller. Therefore, Data No.5 and No.6 warrant downward adjustments.

Expenditures after Sale

Expenditures after purchase is an adjustment made to the comparables for any significant or unusual expenditure that impacted the purchase price such as items of tox ic or hazardous waste clean-up or other action immediately necessary for the purchaser.

No such expenditure was reported for any of the comparable data. No adjustments required.

Market Conditions (Time)

The data represents four closed sales that transacted between 6/4/2021 and 9/15/2022, plus tw o active listings. Based on historical land sales, sales of finished residential homes, and market participant interviews, the market for residential land likely peaked in the 1st Quarter 2022 and has since declined due to dramatically increasing interest rates and high cost of construction.

Land Sale no.1 is a very recent sale that closed on 9/15/2022 and warrants no adjustment.

Land Sale No.2 and No.3 both closed in June 2021. The market likely went up after these sales closed and then back down with the interest rate increases. Therefore, no adjustment is warranted. This assumption is supported by paired sales within the Tremont Ranch development, which suggest the market price between early 2021 and September 2022 has remained stable.

Land Sale No.4 closed near the height of the market in February 2022, prior to the recent interest rate hikes. This sale warrants a downward adjustment.

Land Sales No.5 and 6 are active listings and warrant no adjustment.

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Towers & Associates Page 62 Location
The location adjustment recognizes not only the general location and / or market identity of each property. The adjustments are based on a rough comparison between the data and past experience comparing sales from within the market area.

Land Data No.1 and No.4 represent a more rural location in Redlands, further from typical neighborhood conveniences. This condition is somewhat offset by the appeal that a rural setting offers prospective homeowners. Overall, an upward adjustment is warranted.

Land Data No.2, 3 and 5 are all located in Redlands with similar proximity to typical neighborhood conveniences. No adjustments are warranted.

Land Data No.6 is located in Live Oak Canyon and is further from Redlands neighborhood conveniences. An upward adjustment is warranted.

Topography / Site Utility / Views
This adjustment looks at the general topography, utility of the site (shape), and view potential. All of the sites utilized in the analysis offer rolling topographies with varying degrees of slopes and view potential. Topography is important as the slopes reduce the ability to construct usable building pads. In addition, the cost of grading and infrastructure is higher with rolling hills and steep slopes. Bottom line, the rolling hills typically result in far fewer lots (i.e., more open space area) due to the unbuildable hillsides.

Land Data No.1 and No.5 have superior view potential and/ or usable site area and warrant downward adjustments.

Land Data No.2 has low -lying areas with less view potential when compared to the subject. An upward adjustment is warranted.

Land Data No.3 has more usable building area that allows greater flexibility for future development. A downward adjustment is warranted.

Land Data No.4 and 6 are deemed to be generally similar or offer offsetting adjustments and no adjustments are warranted.

Utilities Available

The majority of the comparable properties either have a water well already constructed (Sale Data No.4 and No.6) or public water available at or near the property . With the exception of Sale Data No.1, all of the comparable properties have electric at or nearby the property.

Sale Data No.1 is part of Tremont Ran ch, which is an “off -the-grid” custom lot development. This property will require well water and full solar electric . An upward adjustment is warranted.

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Towers & Associates Page 63 Lot Size

Smaller sites often sell at a higher price per acre than do larger sites, all other aspects being equal. This is due primarily to economies of scale. Additionally, there tends to be fewer buyers for the larger parcels.

Sale Data No.1 and No.3 are nota bly smaller than the subject at 9.74 acres and 7.73 acres respectively. However, given that the subject property has multiple parcels and could potentially be sold separately, no adjustment is warranted.

Sale Data No.2, No.4 and No.5 range in size from 18.87 acres up to 29.78 acres, which closely brackets the subject’s 22.05 acres. No adjustment is warranted.

Sale Data No.6 is a larger site of 62.73 acres and warrants an upward adjustment.

Zoning / Entitlements

The subject property is zoned for r esidential development . The subject property has preliminary entitlement work as evidenced by the TTM. However, the city has no record of the TTM being approved, much less submitted for approval. The subject’s TTM does provide some conceptual support fo r a development that would entail 6 residential lots.

However, zoning limits the subject property to four residential homes (one on each lot).

None of the properties sold with approved entitlements for development and, therefore, the development potential is based on zoning only.

Sale Data No.1 and No.4 are both zoned RA-10. These zoning are more restrictive than the subject’s and effective limit any ability to divide the parcels into lots smaller than 10 acres. An upward adjustment is warranted.

Sale Data No.2 is zoned SP-43, which would allow for a low -density subdivision, similar to the subject’s zoning. No adjustment is warranted.

Sale Data No.3 is zoned RRA, which reportedly would allow lots as small as 20,000 SF.

However, the topography o f the site would likely limit the property to a low -density subdivision of 7 to 10 lots. A downward adjustment is warranted.

Sale Data No.5 is zoned SD -Special District Residential, which would allow for a low - density subdivision based primarily on topography. This zoning is similar to the subject and no adjustment is warranted.

Sale Data No.6 is zoned A1-Agriculture, which is a more restrictive zoning and warrants an upward adjustment.

Adjustment Summary

The adjustment analysis is summarized on the following page.

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Towers & Associates Page 64 SUBJECT LAND DATA NO.1 LAND DATA NO.2 LAND DATA NO.3 LAND DATA NO.4 LAND DATA NO.5 LAND DATA NO. 6 Hollie Drive, N. of Jeffery Dr. Alessandro Rd., S. of Sunset 31848 Highview Drive 9305 Smiley Blvd. Opal Street, N. of Panorama Dr. Creekside Dr. N. of Live Oak Canyon.

Redlands Redlands Redlands Redlands Redlands Redlands
Sale Date N/A 9/15/2022 6/9/2021 6/4/2021 2/4/2022 Listing Listing Sale Price N/A $236,500 $649,500 $595,000 $700,000 $2,556,000 $2,100,000 T Adjusted N/A $236,500 $649,500 $595,000 $679,000 $2,556,000 $2,100,000 R Cash Equivalent
A Sale Price
N Per Acre N/A $24,281 $24,208 $80,733 $35,983 $85,829 $33,477 S Extracted Value Corrals, garage, fence
A Of Structural Imp. Vacant Vacant $0 Vacant $0 Vacant $0 Tiny House -$3,000 Vacant $0 Vacant $0 C Adjusted
T Price/ Acre $24,281 $24,208 $80,733 $32,983 $85,829 $33,477 I
O Conditions of Sale Typical Typical 0.00% Typical 0.00% Typical 0.00% Typical 0.00% Listing -10.00% Listing -10.00% N Adjusted
A Price/ Acre $24,281 $24,208 $80,733 $32,983 $77,247 $30,129 L Expenditures
After Sale None None 0.00% None 0.00% None 0.00% None 0.00% None 0.00% None 0.00% Adjusted
Price/ Acre $24,281 $24,208 $80,733 $32,983 $77,247 $30,129 Time /
Market Conditions N/A 9/15/2022 0.00% 6/9/2021 0.00% 6/4/2021 0.00% 2/4/2022 -5.00% Listing 0.00% Listing 0.00% Adjusted
Price/ Acre $24,281 $24,208 $80,733 $31,334 $77,247 $30,129 Market Identity Redlands Redlands Redlands Redlands Redlands Redlands Redlands P Location Southeast Rural 20.00% South 0.00% Southeast 0.00% Rural 20.00% North of I-10 0.00% Rural 10.00% R Topography & Rolling Hills Rolling Hills Rolling Hills More Usable Area Rolling hills Rolling Hills Rolling Hills O Site Utility / Views Street Imp. / Views Superior View -10.00% Inferior 20.00% Superior -30.00% Similar 0.00% Superior -20.00% Similar 0.00% P No. of Parcels 4 Parcels 1 Parcel 2 Parcels 1 Parcel 1 Parcel 1 Parcel 1 Parcel E Acres 22.05 9.74 26.83 7.37 18.87 29.78 62.73
R Lot Size - Sq. Ft. 960,337 424,274 0.00% 1,168,714 0.00% 321,037 0.00% 821,977 0.00% 1,297,216 0.00% 2,732,519 10.00% T
Y Utilities Available Water, electric None 30.00% Water, electric 0.00% Water, electric 0.00% Well, electric 0.00% Water, electric 0.00% Well, electric 0.00% Zoning SP - 59 RA-10 SP - 43 R-R-A RA-10 SD-Res A1
Entitlements TTM (not approved) Zoning Only 10.00% Zoning Only 0.00% Zoning Only -10.00% Zoning Only 10.00% Zoning Only 0.00% Zoning Only 10.00% Net Adjustment 50.00% 20.00% -40.00% 30.00% -20.00% 30.00% Adjusted N/A $36,422 $29,050 $48,440 $40,734 $61,797 $39,168 Price/ Acre
ADJUSTMENT GRID NO.1
South side of Helen Dr. @ Bruder Lane
Redlands
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Towers & Associates PAGE 65 Sales Comparison Approach Conclusion

After adjustment, the primary comparable data (excluding the supplemental listings) indicate a market value range for the subject property $2 9,050 per acre to $ 61,797 per acre, with an average of $42,602 per acre. The data provided is considered adequate for determining value. The upper end of the range is indicated by Land Data No.5, which along with Land Data No.6 is a current listing and is given less weight. Most weight in the conclusion of value is given to Data No.1, 2, 3, and 4 which average $38,661 per acre.

Overall, the adjusted value range provides adequate support for a reasonable conclusion.

Based on the data and analysis presented, the Fair Market Value by Sales Comparison Approach is:

$40,000 per acre x 22.05 Acres = $882,000 (rounded)

Allocation of Value:

The valuation is allocated over the four parcels as follows:

APN: 0300-451-13: 3.20 Acres x $40,000 = $128,000
APN: 0300-451-14: 2.5 Acres x $40,000 = $100,000
APN: 0300-451-24: 8.57 Acres x $40,000 = $342,800
APN: 0300-451-25: 7.78 Acres x $40,000 = $311,200
Total: $882,000

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Towers & Associates PAGE 66

RECONCILIATION AND CONCLUSION OF VALUE
All applicable approaches to value have been presented in this report. Th e final step in arriving at an opinion of the value is the reconciliation of the value indicators. The market value indicators for the subject property are:

APPROACH INDICATED VALUE
Cost Approach N/A
Sales Comparison Approach $882,000
Income Approach N/A
The Sales Comparison Approach is the only applicable approach to value for the subject’s vacant land. The data provided is adequate to determine a reliable value indication.

Neither the Income Approach nor the Cost Approach are applicable.

Conclusion of Fair Market Value
Based on the investigation and analysis summarized herein, and subject to the assumptions and limiting conditions set forth in this report, our concluded Fair Market Value of the Fee Simple interest in the subject property, as of October 31, 2022 is:

EIGHT HUNDRED EIGHTY-TWO THOUSAND DOLLARS
$882,000

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ESTIMATE OF MARKETING/ EXPOSURE TIME

The estimate of the exposure time for the subject is supported by examining exposure times of similar recent sales in the market area. The estimate of the exposure time for the subject is supported by examining exposure times of similar recent sales in the market area. Based on these indications, together with conversations with active brokers in the market area, an Exposure Time of 12 months has been concluded for the subject property.

The conclusion of Marketing Time for the subject property is the estimate of time, going forward, that the property will require to achieve a sale. Most market participants agree that the marketing time going forward is expected to be similar to the trend s set in the past 12 months due primarily to the continued sluggish economic and market conditions in the region. As such, the forecast of Marketing Time for the subject property is concluded to be similar to the previously concluded Exposure Time.

Based on the local market data, a Marketing Time of 12 months has been concluded for the subject property.

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CERTIFICATION OF APPRAISAL

Without limiting any of the foregoing statements and information, I, James G. Towers declare the following:

1. I hold myself out to the public as an appraiser and perform appraisals on a regular basis for which I receive compensation.

2. Because of the qualifications as described in this appraisal (and pursuant to paragraph 1, above), I am qualified to make appraisals of the type of property being valued in this appraisal.

3. I am not a person described in Treasury Regulation §1.170A-13(c)(5)(iv).

4. I understand that an intentionally false or fraudulent overstatement of the value of the property described in this appraisal or an appraisal summary may subject me to a civil penalty under Code Section 6701 for aiding and abetting an understatement of tax liability, and moreover, I may have appraisals disregarded pursuant to 31 U.S.C. 330(c); and

5. I understand that a substantial or gros s valuation misstatement resulting from an appraisal of the value of property that I know, or reasonably should have known, would be used in connection with a return or claim for refund, may subject me to a civil penalty under Code § 6695A.

6. I performed this appraisal as a “qualified appraiser” in accordance with generally accepted appraisal standards within the meaning of Code § 170(f)(11)(E)(i)(II) and paragraph 3.02 of Notice 2006-96.

7. I have earned an appraisal designation from Appraisal Institute, which is a recognized professional appraiser organization, within the meaning of Code § 170(f)(11)(E)(ii)(I) and paragraph 3.03(1) of Notice 2006-96, which awarded such designation on the basis of demonstrated competency in valuing the type of property for which this appraisal was performed.

8. This appraisal does not involve an appraisal fee prohibited by Treasury Regulation §1.170A-13(c)(6).

9. Because of my background, experience, education and membership in professional associations, I am qualified to make appraisals of the type of property valued herein.

10. I am licensed by the State of California as a Certified General Appraiser, License No. AG003282, which certifies me to appraise property of this type appraised herein within the State of California.

11. I have not been prohibited from practicing before the Internal Revenue Service by the Secretary under section 330© of title 31, United States Code, at any time during the 3-year period ending on the date of this appraisal.

12. The statements of fact contained in the appraisal report, upon which the analysis, opinions, and conclusions expressed herein are based, are true and correct.

13. The reported analysis, opinions and conclusions are limited only by the reported assumptions and limiting conditions, and is my personal, impartial, and unbiased professional analysis, opinions and conclusions.

14. I have no present or prospective interest in the property that is the subject of this report, and I have no personal interest or bias with respect to the parties involved.

15. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.

16. My engagement in this assignment was not contingent upon developing or reporting predetermined results.

17. My compensation for completing this assign ment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.

18. My analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Uniform Standards of Professional Appraisal Practice.

19. I have made a personal inspection of the property that is the subject of this report.

20. Digital photography presented in this report has not been altered in any way that would mislead the reader.

21. I did not base, either partially or completely, my analysis and/or the estimat e of value on the race, color, religion, sex, handicap, familial status, health, or national origin of either the present or prospective owners, occupants, or users of the subject property or of the present or prospective owners, occupants, or users of the properties in the vicinity of the subject property.

22. I am competent to perform this appraisal assignment, by virtue of previous experience with similar assignments and/or proper research and education as to the specific property type being appraised.

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23. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan.

24. No person has provided professional assistance in this appraisal assignment.

25. I have not performed prior appraisal(s) or conducted any other services service that involved the subject property during the three-year period immediately preceding the agreement to perform this assignment.

26. I certify that, to the best of my knowledge and belief, the reported analysis, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.

27. I certify that the use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.

28. As of the date of this report, I James G. Towers have completed the continuing education program for Designated Members of the Appraisal Institute.

11/01/2022

By: James G. Towers, MAI, AIGRS, CCIM
CA BREA Certification #AG003282 Date

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Towers & Associates PAGE 70 QUALIFICATIONS OF APPRAISER – JAMES G. TOWERS, MAI

I James G. Towers am self-employed and doing business as Towers & Associates, a full-service real estate appraisal and consulting firm. I specialize in the completion of narrative as well as approved form appraisals of all types of commercial, industrial, and residential properties. I have extensive experience in appraisal and consulting projects ranging from single-family residential homes to investment-grade office buildings, shopping centers, industrial buildings, business parks, apartment buildings / complexes, residential subdivisions, and master -planned communities. Appraisals have been performed throughout Southern California on performing and non-performing real estate at various stages of development.

My primary geographical area for single-family, small residential income, and small commercial/industrial properties is typically confined to the Inland Empire (Riverside and San Bernardino Counties). Larger investment grade p roperties are appraised throughout Riverside, San Bernardino, Los Angeles, and Orange Counties.

PROFESSIONAL DESIGNATIONS AND AFFILIATIONS

California Certified General Appraiser – BREA Appraiser Identification Number AG003282. Expiration Date is June 7, 2024.

Member of the Appraisal Institute (MAI and AI—GRS Designations ) – Account # 102341

Member of the CCIM Institute (CCIM); Pin #: 23927

California Licensed Real Estate Broker – DRE Identification Number 01342640

EXPERIENCE

TOWERS & ASSOCIATES – Redlands, California
Self-Employed Real Estate Appraiser and Consultant
January 1994 to present

WELLS FARGO BANK – Los Angeles, California
Review Appraiser - Real Estate Technical Services
May 1992 to January 1994

SECURITY PACIFIC BANK / BANK OF AMERICA – Riverside, California Assistant Vice President – Riverside Commercial Appraisal November 1989 to May 1992

TOWERS APPRAISAL SERVICE – Beaumont, California
Self-Employed Real Estate Appraiser and Consultant
March 1986 to November 1989

TOWERS APPRAISAL SERVICE – Beaumont, California
Staff Appraiser
February 1982 to March 1986

EDUCATION

CALIFORNIA STATE UNIVERSITY – San Bernardino, California Graduated 1988, with Bachelor of Arts degree, Business Administration with a concentration in Economics

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Towers & Associates PAGE 71 Appraiser Qualifications Continued

SUCCESSFULLY COMPLETED PROFESSIONAL COURSES

Course Provider
Real Estate Appraisal Principles AIREA
Residential Valuation AIREA
Capitalization Theory and Techniques Part A AIREA
Capitalization Theory and Techniques Part B AIREA
Case Studies in Real Estate Valuation Analysis AIREA
Standards of Professional Practice Appraisal Institute Report Writing and Valuation Analysis Appraisal Institute Condemnation Appraising – 710 Appraisal Institute
Real Estate Appraisal X463 University of California Riverside Real Estate Principles Mt. San Jacinto College
Real Estate Practice Anthony Schools
Real Estate Legal Aspects Anthony Schools
Tools & Techniques for Managing an Appraisal Practice McKissock National USPAP Update Appraisal Institute
California Laws & Regulations McKissock
Appraising the Oddball McKissock
Fair Housing McKissock
Relocation McKissock
Technology for Today’s Appraiser McKissock
The Cost Approach McKissock
Business Practices and Ethics Appraisal Institute
Advanced Sales Comparison & Cost Approach Appraisal Institute Advanced Market Analysis and Highest & Best Use Appraisal Institute Financial Analysis for Commercial Investment RE CCIM Institute Market Analysis for Commercial Investment RE CCIM Institute User Decision Analysis for Commercial Investment RE CCIM Institute Investment Analysis for Commercial Investment RE CCIM Institute Preparing to Negotiate CCIM Institute
Ethics 2020 CCIM Institute

PARTIAL LIST OF CLIENTS PREVIOUSLY SERVED

 Wells Fargo Bank
 Bank of the West
 Citizens Business Bank
 Hanmi Bank
 U.S. Bank
 Bank of America
 City National Bank
 Union Bank
 Provident Savings Bank
 Citibank
 First Security Bank
 Chase Bank
 California Federal Bank
 Commercial Capital Bank
 American Business Bank
 City of Victorville
 City of Beaumont

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ADDENDA

Appraiser’s License
Engagement Letter

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APPRAISAL SERVICE BID & LETTER OF ENGAGEMENT

PROPOSED APPRAISAL:

Client: City of Redlands
c/o Chris Boatman, Assistant City Manager

Property Appraised: Four contiguous parcels of vacant land on Helen Court, Redlands, CA Approximately 21 acres total
APN: 0300-451-13, 14, 24, & 25
TTM 20011 (expired)

Owner: Kenneth D. and Elaine Macknet

BID INFORMATION:

Total Fee: $5,000
Payment: 100% of fee is due in advance as retainer
Est. Completion Date: Approx. 8 Weeks from date of engagement Report Type: Appraisal Report
Format: Narrative
Interest Appraised: Fee Simple (unencumbered by any lease) Value Premise: As-Is Fair Market Value of the real property.

Purpose of Report: To establish the fair market valu e for potential purchase by the city of Redlands.

Intended Use / Users: Exclusive use by the client to function as an unbiased opinion of value.

Date Submitted: 8/25/2022
Requested By: Chris Boatman
Mailing Address: TBD
Voice: 909-798-7655
E-Mail: cboatman@cityofredlands. org

SUBMITTED BY:

Towers & Associates
James G. Towers, MAI, AI-GRS, CCIM
P.O. Box 7783
Redlands, CA 92375
Office:(909) 335-1735
Cell: (909) 223-9328
E-Mail: [email protected]

ACCEPTANCE OF PROPOSAL

Per your request, I would like to submit this engagement letter to retain my services as an appraiser.

If you accept this proposal, please sign an d return by e -mail or mail. Your signature author izes Towers & A ssociates to complete the assignment. You w ill be contacted prior to the start of the appraisal to set up an appointment for inspection .

Signature Date
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Vendor
Bill To
Fiscal Year
Department
Purchase Order Date
Purchase Order Number
Ship To
VENDOR PHONE NUMBER REQUISITION NUMBERVENDOR NUMBERVENDOR FAX NUMBER DELIVERY REFERENCEBUYER NAME NOTES
ITEM # DESCRIPTION QUANTITY UOM UNIT PRICE EXTENDED PRICE

PURCHASE ORDER
201090

TOWERS, JAMES G
DBA: TOWERS & ASSOCIATES
PO BOX 7783
REDLANDS, CA 92375

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
22300869

MUNICIPAL UTIL & ENGINEERING
09/26/2022

THIS PURCHASE ORDER NUMBER MUST APPEAR ON
ALL INVOICES, PACKAGES, AND SHIPPING PAPERS.