Redlands City Council
October 1, 2024

CITY OF REDLANDS

CITY COUNCIL

A G E N D A
OCTOBER 1, 2024

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

PHILLIP DOOLITTLE
City Treasurer
CHARLES M. DUGGAN JR.

City Manager
YVETTE M. ABICH GARCIA
City Attorney

ALBERT MALDONADO
Special Counsel
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, OCTOBER 1, 2024
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. a. Conference with Labor Negotiator – Government Code §54957.6 (Assistant City Manager McConnell)
Agency Negotiators: Mayor Tejeda and Mayor Pro Tempore Barich Unrepresented Employees: City Manager
6:00 P.M.

D. Reconvene City Council Meeting
E. Invocation by Mayor Tejeda
Pledge of Allegiance by Crafton Elementary School Students (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. Redlands Pet Adoption (Redlands Animal Services)

2. Presentation of a proclamation recognizing Dr. Leonard Sigdestad presented to Dr. Leonard Sigdestad (Council Member Davis)
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 September 17, 2024 (City Clerk Donaldson) Recycled Paper
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2. Authorize issuance of proclamation recognizing Dr. Leonard Sigdestad (Council Member Davis)

3. Approve recommendation for appointment of Roya Damsaz to the Human Relations Commission (Mayor Pro Tem Barich)

4. Approve a First Amendment to the Memorandum of Understanding with the City of Victorville for the loan of a Fire Tiller Truck to Victorville Fire Department (Fire Chief Sessler)

5. Acceptance of National Opioid Settlement Funds from five Settling Defendants, including Allergan, CVS, Teva, Walgreens, and Walmart in the aggregate amount of $192,720.22, for the recruitment of a Substance Use Navigator (SUN) in the Fire Department to help improve treatment and access to medication for Opioid Use Disorder within the community, and authorize an additional appropriation for the same (Fire Chief Sessler)

6. Approve the Second Amendment to the Professional Services Agreement with Carollo Engineers, Inc. for the Tate Water Treatment Plant Raw Water Influent Pipeline Replacement Project extending the completion time by twelve (12) months to October 18, 2025 (Municipal Utilities and Engineering Director Harris)

7. Approve the request to temporarily close San Bernardino Avenue for the Revel Big Bear Marathon event hosted by the Brooksee Foundation on November 16, 2024; authorize the request for the sale and consumption of alcoholic beverages, and determine that the approval of the request is exempt from environmental review pursuant to Section 15311 of the state’s guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker)

8. Approve the request to hold the Dog Jog event hosted by the Redlands Chamber of Commerce on October 20, 2024, within Ed Hales Park and the downtown area; authorize street closures related to the event; approve a request for in-kind support in the amount of $11,948 related to the event; and determine that the approval of the event is exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act; (Facilities and Community Services Director Crocker)

9. Approve the sole source purchase order for the purchase of five (5) Blue Series Cabinets Part CAB18036 and three (3) Blue Series Cabinets Part STCAB3575-77 from Econolite for an amount not to exceed $124,966.96 (Facilities and Community Services Director Crocker)

10. Approve the request for the temporary closure of a portion of West Pioneer Ave from Texas Street to Tennessee Street for the Citrus Valley Band Tournament event for Saturday, October 12, 2024, from 1:00 p.m. to 11:00 p.m, authorize the expenditure of city resources and in-kind support in the amount of $2,700 related to this event; and determine that this event is categorically exempt from guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker)

11. Approve a license agreement with Dawg Social LLC to operate a hot dog cart located at City Hall, 35 Cajon Street, and determine that approval of the agreement is exempt from environmental review pursuant to Section 15301 of the State's guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker) J. Communications

1. Discussion and possible action relating to the cancelation of the November 5, 2024, and the January 7, 2025, regular meetings of the City Council (Mayor Tejeda) Recycled Paper
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K. Public Hearings

1. Public Hearing to consider Resolution No. 8629 for the following development applications related to the construction of 164 apartment units within the Venue at Orange Apartments located at the southwest corner of Orange Avenue and Alabama Street.
(Mayor to declare the meeting open as a public hearing) Exemption from environmental review in accordance with Section 15332 (Infill Development Projects) of the California Environmental Quality Act (CEQA) Guidelines for the entitlements listed above.

A.

Socio-Economic Cost/Benefit Study prepared for the proposed project as required by Measure U.

B.

Commission Review & Approval No. 914, Revision 1 - A proposal to construct an additional 164 units consisting of three four-story apartment buildings within the Venue at Orange apartment project, pursuant to a density bonus in accordance with State Density Bonus Law (to allow up to a 50% increase in the total project density). The proposed additional 164 apartments (“Density Bonus Units”) would be constructed on the south side of Orange Avenue on a 3.2-acre portion of the subject property located at the southwest corner of Orange Avenue and Alabama Street (APNs: 0292-482-01-0000, 0292-721-01-0000, 0292-721-02-0000) in the Multiple Family Residential (EV/2500RM) district of the East Valley Corridor Specific Plan.

C.

Parcel Map No. 20796 - A request to subdivide a 9.2-acre parcel into two parcels for residential development purposes. Parcel 1 is 5.9 gross acres and is developed with the Venue at Orange apartment project (105 existing residential units). Parcel 2 is 3.2 gross acres and currently vacant, and is the proposed location for the Density Bonus Units of the proposed project. The site for the Density Bonus Units is located at the southwest corner of Orange Avenue and Alabama Street (APN: 0292-482-01-0000) in the Multiple Family Residential (EV/2500RM) district of the East Valley Corridor Specific Plan.

D.

Density Bonus Agreement with Declaration of Affordable Housing Covenants and Restrictions - A request to approve a Density Bonus Agreement which sets forth the terms and conditions to allow the Density Bonus Units and increased density for the project, the incentives/concessions and waivers that the developer is entitled to, pursuant to State law, and affordability covenants to ensure the affordability of fifty (50) apartment units for Very Low Income households throughout the Venue at Orange project for a term of 55 years.

E.

Loan Agreement - An agreement to provide $1,500,0000 in financial assistance in the form of a forgivable loan with a term of 55 years to be funded by the Inclusionary Housing Fund for the construction of 164 apartment units, including 50 units for Very Low Income households. (Development Services DIrector Desatnik)
F.

L. New Business

1. Consideration of the Amended and Restated City Manager Employment Agreement between the City of Redlands and Charles M. Duggan, Jr. (Mayor Tejeda and Mayor Pro Tem Barich)

2. Consideration of Resolution No. 8636 Establishing an Interfund Loan from the General Fund to the Inclusionary Housing Fund in the amount of $1,500,000 (Management Services/Finance Director Garcia)

3. Consideration of a Memorandum of Understanding Regarding Planning and Funding of the Santa Ana Wash Wildland Trails, and Mutual Covenant (Development Services Director Desatnik)

4. Consideration of an agreement with American Landscape and Maintenance, Inc. for turf mowing contractual services within City parks and medians for a term of three years in the amount not-to-exceed $566,624 (Facilities and Community Services Director Crocker)

5. Consideration of a Public Work Contract with Matich Corporation for the Pavement Management Recycled Paper
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5. Consideration of a Public Work Contract with Matich Corporation for the Pavement Management Program (PMP) 2024 Street Resurfacing Project for an amount not-to-exceed $4,677,377, approval of an additional appropriation in the amount of $815,066, and determination that the Project is categorically exempt from environmental review pursuant to Section 15301 of the State's Guidelines for Implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris)

6. Consideration of an Indemification Agreement with Redlands Community Investment Corporation for certain real properties in the City of Redlands located at 204 E. Redlands Boulevard (APN 0171-071-08-0000) and 180 9th Street (APNs 0171-088-06, 07-0000) (Assistant City Manager Boatman)
M. Individual Council Member Announcements and/or Reports on Activities (No collective discussion or action.)
N. Adjournment
The next regular meeting of the City Council will be held on October 15, 2024.

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: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the regular meeting minutes of September 17, 2024 (City Clerk Donaldson)
MOTION:

I move to approve the regular meeting minutes of September 17, 2024.

Attachments
Regular Meeting Minutes of September 17, 2024
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MINUTES
Regular meetings of the City Council and the Financing Authority of the City of Redlands held in the Council Chambers, Civic Center, 35 Cajon Street, on September 17, 2024 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; Phillip Doolittle, City Treasurer; 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, Police Chief; Tabitha Crocker, Facilities and Community Services Director; Robert Meteau, HR/Risk Management Director
Mayor Tejeda called the meeting to order and explained that comments could be presented in-person, via Zoom, via cell phone or landline. He offered the public an opportunity to provide comment on any item on the agenda for the closed session.

PUBLIC COMMENT
Open Government - Steve Rogers referenced his comments made during the last City Council meeting and reiterated he was not satisfied with the City's response to his request to remove restrictions placed on his interactions with City staff.

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

Sedlick, et. al. v. City of Redlands, et al., U.S. District Court, Central District, Case No. 5:23-cv-00457-JGB-KKx
a.

Price v. City of Redlands, San Bernardino Superior Court, Case No. CIVSB 2218802b.

Aqueous Film-Foams Product Liability Litigation, U.S. District Court, South Carolina, Master Docket No. 2:18-mn-2873-RMG
c.

City of Camden et. al. v. BASF Corporation, U.S. District Court, South Carolina, Civil Action No. 2:24-cv-03174-RMG
d.

City of Camden et. al. v. Tyco Fire Products LP, U.S. District Court, South Carolina, Civil Action No: 2-24-cv-02321-RMG
e.
a. Conference with Labor Negotiator – Government Code §54957.6 CC_RFA_September 17, 2024

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a. Conference with Labor Negotiator – Government Code §54957.6 (Assistant City Manager McConnell)

Agency Negotiators: Mayor Tejeda and Mayor Pro Tempore Barich Unrepresented Employees: City Manager, City Attorney

RECONVENE CITY COUNCIL MEETING

The meeting reconvened at 6:15 P.M. with an invocation by Mayor Pro Tem Barich followed by the pledge of allegiance to the American flag.

CLOSED SESSION REPORT

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

PRESENTATIONS

Proclamation Adult Literacy Day
Mayor Pro Tem Barich presented a Proclamation declaring September 29, 2024, as Adult Literacy Day in the City of Redlands to Sotheavy Chev, Adult Learner; Diane Shimota, Adult Literacy Coordinator; and Don McCue, Smiley Public Library Director.

Proclamation California Native American Day
Council Member Saucedo presented a Proclamation declaring September 27, 2024 as California Native American Day to Alex Smith of the office of Assembly Member James Ramos.

PUBLIC COMMENT

Open Government - Steve Rogers commended the City for celebrating CA Native American Day and thought the recognition should last for at least one week, rather than one day. He drew attention to the public outreach surrounding the preparation of the Parks Master Plan project, and he suggested the City consider purchasing the Mistretta Property and the Crystal Springs Ranch property for open space designation.

Refine Process for Street Closure Requests
- Chamber of Commerce Executive Director Evan
Sanford urged the City to evaluate and revise the current practices related to street closure requests. He said that establishing safety protocols would be instrumental in the efforts to treat everyone with respect and keep all event goers safe.

Senior Center Parking Lots
- Berneice Bagwell complained that the handicap parking at both of the City's senior centers can be hazardous, especially for the elderly. She recommended repairs and improvements be made.

RUSD Candidate Endorsement - Germaine Miles, Michael Paisner, Jennifer Kim and Trisha Keeling insisted Mayor Pro Tem Barich reconsider his endorsement of one of the School Board candidates on the November ballot. They claimed the candidate promotes hate speech and CC_RFA_September 17, 2024

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represents extreme viewpoints.

CONSENT CALENDAR

Minutes

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, the regular meeting minutes of September 3, 2024.

Vote: 5 - 0 Passed

Proclamation September 29, 2024 as Adult Literacy Day

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, the issuance of a Proclamation declaring September 29, 2024 as Adult Literacy Day in the City of Redlands.

Vote: 5 - 0 Passed

California Native American Day Proclamation

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, the issuance of a Proclamation Recognizing September 27, 2024 as California Native American Day.

Vote: 5 - 0 Passed

Human Relations Commission Appointment

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously appointed, by roll call vote, Alicia Gyllenhammer to the Human Relations Commission to serve the remainder of a four-year term on the Human Relations Commission ending October 18, 2026.

Vote: 5 - 0 Passed

Amending SBC Registrar of Voters Agreement Surveillance Cameras

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously determined, by roll call vote, that approval of  Amendment No. 1 to the Agreement with the County of San Bernardino Registrar of Voters for installation of surveillance cameras at each of the three secure ballot box locations on City property is not subject to environmental review pursuant to Section 15061(b)(3) of the State's Guidelines implementing the California Environmental Quality Act; and  approved Amendment No. 1 to the Agreement with the County of San Bernardino Registrar of Voters for installation of surveillance cameras at each of the three secure ballot box locations on City property.

Vote: 5 - 0 Passed
CC_RFA_September 17, 2024

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Resolution No. 8628 Conflict of Interest Code

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, Resolution No. 8628 Amending the Conflict of Interest Code for the City; acknowledged that this City Council has reviewed its Conflict of Interest Code, and finds that the following amendments are necessary: (1) Include new positions that must be designated and (2) Delete positions that no longer make or participate in governmental decisions.

Vote: 5 - 0 Passed

Resolution No. 8603 Street Vacation No. 194 - Mecca Street This item was pulled from tonight's agenda to allow staff time to conduct additional research. The matter will be scheduled for a future meeting.

Resolution No. 8622 Outside City New Water Service Connection

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, Resolution No. 8622 for a new connection to the City of Redlands water distribution system at 11055 King Street in the unincorporated community of Mentone, Outside Service Case (OSC) No. 24-03; and determined that the adoption of Resolution No. 8622 is exempt from environmental review pursuant to Sections 15303(a) and 15319(b) of CEQA guidelines.

Vote: 5 - 0 Passed

In-Kind Request Art-On-State Event

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously determined, by roll call vote, that approval of the event is exempt from environmental review pursuant to Section 15311(c) of the State’s guidelines implementing the California Environmental Quality Act; approved the special event and authorized the temporary closure of East State Street from 6th Street to 7th Street on Sunday, September 29, 2024 for the Art-On-State-Street event hosted by the Redlands Art Association; and approved the request for In-Kind services totaling in the amount of $1,350.

Vote: 5 - 0 Passed

Successor Agency Final Dissolution

Management Services/Finance Director Garcia reviewed the process related to the Final Dissolution of the Successor Agency to the Former Redevelopment Agency of the City of Redlands. Established by Ordinance No. 1436 in 1971, the Redevelopment Agency (RDA) of the City operated as a separate legal entity from the City under the Community Redevelopment Law with the intent of revitalizing the City's downtown core and surrounding residential and industrial neighborhoods by eliminating conditions of blight and their influences, encouraging reinvestment by property owners, and inviting new investment from outside sources.

CC_RFA_September 17, 2024

Redlands Regular Meeting of 10/01/24
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In June 2011, amid significant state budget woes, the Governor signed new legislation, which amended the Community Redevelopment Law to immediately suspend most redevelopment agency activities and provided for the transfer the assets to successor agencies whose role was to expeditiously wind down the affairs of the dissolved redevelopment agencies. On December 29, 2011, the California Supreme Court ruled that AB 1X26 was enforceable, effectively eliminating redevelopment statewide as of February 1, 2012.

Acting as the Successor Agency, the City took on the responsibility of winding down its affairs and undertaking the administrative tasks required for the dissolution process. On June 10, 2024, the Countywide Oversight Board approved a resolution to formally dissolve the Successor Agency to the Redevelopment Agency of the City of Redlands, and on July 2, 2024, the state Department of Finance acknowledged the end of the Agency's existence.

As public comment, Steve Rogers raised questions about one of the original RDA properties located near the rail line and the University of Redlands (U of R). This property was granted to the U of R in 2020 in connection to the SBCTA's train project. He added this property was an eyesore, filled with weeds and debris. Council Member Saucedo pointed to several positive outcomes of the RDA, as well as the efforts of the Northside Visioning Committee, to provide property owners with home improvement funds.

On motion of Mayor Pro Tempore Paul Barich, seconded by Mayor Eddie Tejeda, the City Council unanimously approved, by roll call vote, to receive and file the Final Dissolution of the Successor Agency to the Former Redevelopment Agency of the City of Redlands.

Vote: 5 - 0 Passed

NEOGOV Onboard Software

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, a three-year service contract for NEOGOV Onboard software in the amount of $63,505.08 for the Human Resources/Risk Management Department.

Vote: 5 - 0 Passed

U of R MOU Standby Paramedic Services

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, the Memorandum of Understanding with the University of Redlands for standby paramedic services at university football games and other special events as needed.

Vote: 5 - 0 Passed

CC_RFA_September 17, 2024

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CONFIRE Agreement Surge Transport Services

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, an Agreement between Consolidated Fire Agencies (CONFIRE) and the City of Redlands for surge transport services to be provided by the Redlands Fire Department.

Vote: 5 - 0 Passed

Grant Award Treatment for Opioid Use Disorders Patients

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, the acceptance of the Emergency Medical Services Buprenorphine Use Pilot Program (EMSBUP) grant award in the amount of $5,000 for the provision of treatment and access for patients with opioid use disorders; and approved an additional appropriation for the same.

Vote: 5 - 0 Passed

Resolution No. 8631 National Opioids Settlement Agreement

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously adopted , by roll call vote, Resolution No. 8631 regarding Approval of National Opioids Settlement Agreement with The Kroger Co.; and authorized the City Manager to execute the referenced settlement agreement.

Vote: 5 - 0 Passed

Annual PO Irrigation Supplies

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, an annual purchase order with Site One Landscape Supply for the provision of irrigation supplies to the Facilities and Community Services Department for Fiscal Year 2024-25, in an amount not-to-exceed $90,000.

Vote: 5 - 0 Passed

PARIS Program Annual Report

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, to receive and file the Pavement Accelerated Repair Implementation Strategy (PARIS) Program Annual Report.

Vote: 5 - 0 Passed

Resolution No. 8630 Five-Year Capital Project Needs Analysis

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise CC_RFA_September 17, 2024

Redlands Regular Meeting of 10/01/24
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On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, Resolution No. 8630 adopting the Five-Year Capital Project Needs Analysis for FY 25/26 through FY 29/30; and determined 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.

Vote: 5 - 0 Passed

PO Modification Loma Linda University Children's Hospital

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, a purchase order modification in the amount of $7,300 with Loma Linda University Children's Hospital for use of the Children's Assessment Center.

Vote: 5 - 0 Passed

Office of Traffic Safety Grant Award

On motion of Council Member Jenna Guzman-Lowery, seconded by Council Member Denise Davis, the City Council unanimously approved, by roll call vote, the Grant Agreement with the Office of Traffic Safety relating to the distribution of a grant award in an amount not-to-exceed $120,000; authorized the Chief of Police to sign and execute agreements implementing the grant; and approved an additional appropriation of the same.

Vote: 5 - 0 Passed

PUBLIC HEARINGS

Resolution No. 8629 Venue at Orange Apartment Development Applications

Council Member Davis announced that due to her ownership of property within 500 feet of the development, she recused herself from voting on this item. Mayor Tejeda reported that staff is recommending this public hearing to consider Resolution No. 8629 for development applications related to the construction of 164 apartment units within the Venue at Orange Apartments be continued to October 1, 2024.

On motion of Mayor Eddie Tejeda, seconded by Council Member Mario Saucedo, the City Council agreed, by roll call vote, that the public hearing be continued to the City Council Meeting scheduled for October 1, 2024.

Vote: 4 - 0 Passed
Other:  Council Member Denise Davis (RECUSE)

NEW BUSINESS

Amended and Restated City Manager Employment Agreement
CC_RFA_September 17, 2024

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Amended and Restated City Manager Employment Agreement
This item was pulled from the agenda and will be considered at a future meeting.

City Branding Concept and Design

Economic Development Coordinator Ross Wittman offered details of the City's desire to create a new branding concept and design and explained that in November 2023, the Council approved a contract with Pastilla, Inc. to develop a new brand identity for the city. The goal was to create an effective and professional brand, giving Redlands a strong and easily identifiable presence in media, marketing, and economic development endeavors. He introduced Rudy Manning and Tyron Akal, of Pastilla, who presented an extensive report of their efforts, intended to embody Redlands' unique characteristics, strengths, and identity and to clearly identify and differentiate Redlands and its assets, culture, environment, and location within Southern California and California as a whole.

The project began by conducting an in-depth discovery process, utilizing multiple research methods to gain perspective from key audiences in the community. The methods included discovery workshops, 1-on-1 interviews, focus groups, internal and external digital surveys.

Key Findings were identified as 1) Redlands is a well-established community; 2) Visitors are unaware of the city and are pleasantly surprised by their Redlands experience; 3) There is a huge presence of non-profit organizations, indicating Redlands' altruistic nature; 4) There is a lively arts scene that is free and open to the public; 5) The perception of the current brand is largely neutral to negative. And the perception of the current slogan, "City That Works" is extremely negative.

The branding strategy phase allowed for the development of a positioning statement, represented by, "Redlands is a city inspired by its history, passionately forging a tomorrow through service to the community and creativity for all". This statement promoted brand values of "embracing, serving and proactive", and led to the proposed new tagline: Redlands. Futures Flourish Here. The Brand's Visual Tone and Visual Identity were presented with an unveiling with the proposed color palette and logos.

Council Members offered their initial perspectives, agreeing they liked the color palette selection.

Mayor Pro Tem Barich recommended a different tagline as represented by, "City Like No Other".

Council Member Guzman-Lowery said there appeared to be potential to add to the design and this was an important aspect, so that each department could develop their own unique style, but also include a level of cohesion.

As public comment, Dennis Bell said the number of survey respondents (458) was simply not representative of the City's roughly 73,000 residents. Dan Jimenez struggled to see the "4 Rs" in the logo and encouraged the Council to take their time before making a decision. Michael Paisner also did not see the "4 Rs", adding the tagline did not resonate with him. Andy Hoder thought the branding was pretentious and should be denied approval, and he stated that most people don't care about branding.

Council Members agreed they would like more time to consider the proposed design and directed Pastilla to continue refining and improving the current concepts.

CC_RFA_September 17, 2024

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Resolution No. 8625 CDBG Agreement Funding Award

Mayor Pro Tem Barich recused himself from voting and discussion of this item due to a source of income with Citrus Counseling. Council Member Guzman-Lowery recused herself from voting and discussion on this item due to a source of income with Citrus Counseling.

Development Services Director Desatnik reviewed the 2024-2025 Community Development Block Grant (CDBG) and Resolution No. 8625. On July 23, 2024, the City was notified of the final 2024-2025 CDBG final funding award for eight total projects that were approved by City Council on February 6, 2024 of which seven projects are public service agencies and one is a Capital Improvement Project (CIP). The final award and amounts are as follows: Redlands Senior Center Kitchen Rehabilitation $282,257; FSA of Redlands - Housing and Food Program $7,500; Boys and Girls Club - Family Strengthening Program $7,500; YMCA of the East Valley - Legal Services $7,500; The Nowell Family Foundation - Bradley House Project $7,500; Partners Against Violence - Supportive Services for Victims of Violence $7,500; The Blessing Center - Transitional Housing $7,500; and Citrus Counseling Services - Mental Health Services $4,160 As public comment, Roger Uminski, of Citrus Counseling, expressed his appreciation for the City's support. Annie Ploehn, of Partners Against Violence, was also grateful for the City's support, and she described the agency's work and mission and reach.

On motion of Council Member Mario Saucedo, seconded by Council Member Denise Davis, the City Council unanimously accepted, by roll call vote, the 2024-2025 Community Development Block Grant funding award in the amount of $331,417; authorized an additional appropriation of $331,417 for the 2024-2025 CDBG fiscal year; and adopted Resolution No. 8625 authorizing the City Manager, or designee, to execute agreements, amendments and other related documents associated with the 2024-2025 CDBG Program Year.

Vote: 3 - 0 Passed
Other:  Mayor Pro Tempore Paul Barich (RECUSE)
Council Member Jenna Guzman-Lowery (RECUSE)

Contract Award Runway and Apron Pavement Treatment Project

Facilities and Community Services Director Crocker reported on a Public Works Contract with C.R.

Contracting LLC for the Runway and Apron Pavement Treatment Project in an amount not-to-exceed $616,499. Federal Aviation Administration (FAA) Airport Capital Improvement Plan entitlement funds were allocated to Redlands Municipal Airport. The Project consists of the removal of the existing markings, removal of weeds, crack sealing/filling of runway 8-26 and the west apron, asphalt seal coating of runway 8-26, asphalt slurry sealing of the west apron, and pavement re-markings for both the runway and west apron. Assistant City Manager Boatman added that Congressional representative Pete Aguilar was instrumental in helping the City obtain the grant award.

On motion of Council Member Mario Saucedo, seconded by Mayor Eddie Tejeda, the City Council CC_RFA_September 17, 2024

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On motion of Council Member Mario Saucedo, seconded by Mayor Eddie Tejeda, the City Council unanimously determined, by roll call vote, that approval of the contract and construction of the Runway and Apron Pavement Treatment Project is categorically exempt from environmental review in accordance with Section 15301 of the State’s guidelines implementing the California Environmental Quality Act; approved an additional appropriation in the amount of $678,094 from the Airport Projects and Grants fund; approved the Runway and Apron Pavement Treatment Project Plans and Specifications, and awarded a construction contract to C.R. Contracting for an amount not-to-exceed $616,499.

Vote: 5 - 0 Passed

SBC Cooperative Agreement Paving Rehabilitation

Municipal Utilities and Engineering Director Harris summarized a Cooperative Agreement with San Bernardino County delineating responsibilities for paving rehabilitation. The PARIS Program will rehabilitate approximately twenty-eight lane miles of public streets, which includes a portion of Lugonia Avenue (north half) and California Street (east half) within the San Bernardino County (County) jurisdiction. MUED staff collaborated with County staff to develop a Cooperative Agreement to ensure the full width of each street segment is rehabilitated, in lieu of only rehabilitating the portions of each street within the City's jurisdiction. Approximately 1.5 lane miles of the County's streets will be resurfaced with the City's project.

As public comment, Steve Rogers was pleased to see the cooperative efforts between the City and County, yet he voiced concerns about seeing social media posts claiming young people were accosting shoppers at the County shopping centers of Citrus Grove and Mountain View. He wondered if a curfew could be established. City Manager Duggan responded by explaining that curfews had been discussed in the past, but because the properties do not fall within city boundaries, the County would be the appropriate agency to enact such an ordinance.

On motion of Mayor Pro Tempore Paul Barich, seconded by Council Member Mario Saucedo, the City Council unanimously determined, by roll call vote, that approval of the Cooperative Agreement with San Bernardino County delineating responsibilities for pavement rehabilitation 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 Cooperative Agreement with San Bernardino County delineating responsibilities for pavement rehabilitation.

Vote: 5 - 0 Passed

Contract Award 2024 Alley Paving Improvement Project

Municipal Utilities and Engineering Director Harris detailed a Public Works Contract with Tryco General Engineering for the 2024 Alley Paving Improvement Project for an amount not-to-exceed $483,955. The Project will resurface five alleys and remove and replace driveways and sidewalks where necessary, protect existing utilities, trees, power poles, and public and private improvements, replace damaged survey monuments, construct drainage facilities, dispose of excess soil and rock material, and restore all areas and improvements to pre-construction conditions. Council Member Saucedo asked for an update regarding rehabilitation work on State Highway 38. Director Harris stated he had reached out to CalTrans and would report back to the Council on the matter.

CC_RFA_September 17, 2024

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On motion of Council Member Mario Saucedo, seconded by Council Member Jenna Guzman-Lowery, the City Council unanimously determined, by roll call vote, that approval of the contract and construction of the 2024 Alley Paving Improvement Project is categorically exempt from environmental review in accordance with Section 15301(c) of the State's Guidelines implementing the California Environmental Quality Act; approved the 2024 Alley Paving Improvement Project plans and specifications; and awarded a Public Works Contract to Tryco General Engineering for an amount not-to-exceed $483,955.

Vote: 5 - 0 Passed

COUNCIL MEMBER ANNOUNCEMENTS AND ACTIVITIES

Council Members expressed their deep appreciation for the efforts of the City's police and fire departments and all first responders during the recent Line Fire emergencies.

Mayor Tejeda urged everyone to keep all first responders in their thoughts and prayers.

Mayor Pro Tem Barich attended the Library Board meeting, Bowling with a Cop, the 1LoveIE block party, and enjoyed a concert at the Contemporary Club celebrating Hispanic Heritage Month and the Pink Party in support of breast cancer awareness held at the Burrage Mansion.

Council Member Davis attended the 1LoveIE Block Party, enjoyed Bowling with a Cop and announced that she is accepting applications for the upcoming 4th season of Youth Council.

Council Member Guzman-Lowery
attended the 1Love IE Block Party, the Youth Hope Car Show, and she is looking forward to the upcoming Adult Literacy Event, as well as the Climate Action meeting scheduled for September 18, 2024,
Council Member Saucedo praised the work of all City staff, including the water department, for their quick response to emergencies brought on by the Line Fire.

ADJOURNMENT

There being no further action required the meeting adjourned at 8:16 P.M. The next regular meeting of the City of Redlands City Council will be held on October 1, 2024.

REDLANDS FINANCING AUTHORITY

Chairperson 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 Redlands Financing Authority.

PUBLIC COMMENT
None forthcoming

CC_RFA_September 17, 2024

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Minutes

On motion of Vice Chair Barich, seconded by Chair Tejeda, the minutes of the regular meeting of May 21, 2024 were unanimously approved by roll call vote.

Vote:  5 - 0 Passed

ADJOURNMENT
There being no further business, the Redlands Financing Authority adjourned at 8:17 P.M. The next regular meeting of the Agency will be held on January 21, 2025.

CC_RFA_September 17, 2024

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City Council Meeting I. 2.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Authorize issuance of proclamation recognizing Dr. Leonard Sigdestad (Council Member Davis)
MOTION:

I move to authorize issuance of proclamation recognizing Dr. Leonard Sigdestad.

Attachments
Dr. Sig Proclamation 2024
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City Council Meeting I. 3.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Approve recommendation for appointment of Roya Damsaz to the Human Relations Commission (Mayor Pro Tem Barich)
MOTION:

I move to appoint Roya Damsaz to serve the remainder of a four-year term on the Human Relations Commission ending October 18, 2026.

RECOMMENDATION:

In accordance with Redlands Municipal Code Section 2.66.020, nominations to this Commission are made on a rotational basis by members of the City Council.

Mayor Pro Tem Barich was next in rotation to make a recommendation to City Council. Mayor Pro Tem Barich is recommending the Council to appoint the individual listed below to serve the remainder of a four-year term ending on October 18, 2026, on the Human Relations Commission.

Recommendation Council Member
Roya Damsaz Mayor Pro Tem Barich
DISCUSSION:

A vacant seat exists on the Human Relations Commission due to the recent termination of Commissioner Claudia Ruiz whose term expires on October 18, 2026.

There were 3 eligible applications received from the posting. Those applications were considered for filling this vacancy.

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The Human Relations Commission consists of nine members as follows:

Vacant
Vanessa Annaguey Aranda
Roy George
Alicia Gyllenhammer
Roop Kishor Goyal
Kennth Ford
Julie Houston
Gail Howard
Ryan Chau (Student)
ALTERNATIVES:

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
Public Notice
Human Relations Applications
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City Council Meeting I. 4.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Approve a First Amendment to the Memorandum of Understanding with the City of Victorville for the loan of a Fire Tiller Truck to Victorville Fire Department (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 First Amendment to the Memorandum of Understanding for the loan of a Fire Tiller Truck.

RECOMMENDATION:

Staff recommends the City Council approve a First Amendment to the Memorandum of Understanding between the City of Redlands and the City of Victorville for the loan of a Fire Tiller Truck for Victorville Fire Department.

DISCUSSION:

On March 5, 2024, the Redlands City Council approved a Memorandum of Understanding with the Victorville Fire Department to loan a Fire Tiller Truck for personnel training. The Redlands Fire Department had agreed to lend their available tiller truck to Victorville for this training. Since then, the Victorville Fire Department has also asked to use the Tiller Truck for emergency responses, in addition to its original training purpose.

Effective communication and collaboration are crucial for a successful and mutually beneficial arrangement. The First Amendment to the Memorandum of Understanding aims to facilitate the sharing of equipment for both training and emergency response by defining clear terms and conditions. This includes outlining responsibilities for usage, maintenance, insurance, and liability throughout the loan period.

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throughout the loan period.

ALTERNATIVES:

Not approve the First Amendment Memorandum of Understanding for the loan of the Fire Tiller Truck.

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: 2024-2025
Discussion:

There is no fiscal impact with the approval of the First Amendment to the Memorandum of Understanding (MOU) for Equipment Sharing with the Vivtorville Fire Department. The City of Victorville is responsible for any costs listed in Section 5 of the MOU regarding minor maintenance and the provision of liability insurance.

Attachments
First Amendment to Equipment Sharing MOU
Victorville Equipment Sharing MOU
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1 I:\cmo\Agreements\First Amendment MOU City of Victorville Equipment Sharing FY24-0024.docx-ms

FIRST AMENDMENT TO

MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF

REDLANDS AND THE CITY OF VICTORVILLE REGARDING

EQUIPMENT SHARING

This First Amendment (“ First Amendment”) to the Memorandum of Understanding for Equipment Sharing ("MOU") is dated this 1st day of October, 2024 and is entered into by and between the City of Victorville (“Victorville”), and the City of Redlands (the "CITY"). The City of Victorville and the CITY may be referred to herein individually as a "Party" and, together as the "Parties."

RECITALS
WHEREAS, CITY owns certain equipment including a Model & Year 1997 Pierce Quantum Cab Tiller Truck; VIN# 4P1CT02S7VA000413 (the "Equipment") used as part of its operations; and
WHEREAS, the Victorville Fire Department is currently using the Equipment for training and professional development; and
WHEREAS, it is the desire of the CITY and Victorville to amend their existing MOU to increase the use of the Equipment for emergency response situations in addition to training and professional development; and
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants hereinafter contained, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows:

AGREEMENT
Section 1. Section 4 , subsection (A) of the MOU, titled “Equipment,” is hereby amended to read as follows:
“Section 4. Equipment.

A. Victorville shall be permitted to use , operate and transport the Equipment for emergency response situations in addition to training and professional development and on an "as- needed" basis as requested by the Victorville Fire Department, and approved by CITY, when not otherwise needed for other Redlands Fire Department purposes. The Victorville Fire Department recognizes that the Redlands Fire Department’s use of the Equipment may preclude the use of the Equipment by the Victorville Fire Department, and in such cases the Redlands Fire Department may deny the request to use the Equipment or demand the immediate return of the Equipment in the possession of the Victorville Fire Department, in the CITY’s sole and absolute discretion.” Section 2. All other provisions of the MOU shall remain unchanged by this First Amendment in effect.

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IN WITNESS WHEREOF, the Parties have executed this First Amendment to the MOU for Equipment Sharing as of October 1, 2024.

City of Victorville City of Redlands

By: By:

Keith Metzler, City Manager Eddie Tejeda, Mayor

Date: Date:

ATTEST:

By:

Jeanne Donaldson, City Clerk

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MEMORANDUMOFUNDERSTANDINGBETWEENTHECITY OF

REDLANDSAND THECITY OFVICTORVILLEREGARDING

EQUIPMENT SHARING
This MemorandumofUnderstandingforEquipmentSharing ("MOU") isdatedthis5thday ofMarch, 2024andisenteredinto byandbetweentheCityofVictorville ("Victorville"), and the City of Redlands (the "CITY"). Victorvilleand theCITYmaybereferredtohereinindividually asa "Party" and, together asthe "Parties."

RECITALS
WHEREAS, theCITYownscertain equipmentincludingaModel & Year 1997 Pierce Quantum Cab Tiller Truck; VIN# 4P1CTO2S7VA000413 ( the " Equipment") for use by the RedlandsFire Departmentaspartof its operations; and
WHEREAS, theCITYbyandthroughtheRedlandsFireDepartmentdesiresto loanthe EquipmenttoVictorvillefortraininganddevelopmentbytheVictorvilleFireDepartment; and WHEREAS, VictorvilledesirestoborrowtheEquipmentforusebytheVictorvilleFire Departmentfor non -emergencytrainingsituationsand, whereit wouldbebeneficialto usethe Equipment intheinterestsof theprofessionaldevelopmentof theDepartment; and WHEREAS, cooperationbetweenVictorville, theVictorvilleFire Departmentandthe CITYwillpromotetheefficientuseofpublicresourcesusedandmanagedbytheRedlandsFire Department; and
WHEREAS, sharingEquipmentwith theVictorville foruseby theVictorvilleFire Departmentis intendedto increasepublicsafety, aswell astheresidentsof andvisitors to Victorvilleandwouldhaveonlyincidentalornominalbenefitstoanyprivateparties; and WHEREAS, VictorvilleandtheCITYexecutethisMOUforthepurposeofformalizing thetermsandconditions governingthesharingof theEquipment; NOW, THEREFORE, in considerationof the aboverecitalsandthe mutualcovenants hereinaftercontained, andforothergoodandvaluable consideration, thereceiptofwhichishereby acknowledged, the Parties agree asfollows;

AGREEMENT
Section 1. Incorporationof Recitals. The above -recitalsaretrue andcorrectandare herebyincorporatedintothisMOUbythisreference.

Section 2. Term. Thetermof thisMOU shall commenceonitsEffectiveDateandshall continuein effectuntil terminatedpursuantto Section9 of thisMOU. 1 I;\cmo\Agreements\MOUCityofVictorvilleEquipmentsharing FY23-0039,docx-ms Redlands Regular Meeting of 10/01/24
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Section 3. Authority. Unlessotherwisespecifiedherein, allauthoritytoactonbehalf of theCITYpursuanttothisMOUshallbeexercisedbyRedlandsFireChiefRichSessler, orhis designee. Unlessotherwisespecifiedherein, all authorityto actonbehalfof Victorvillepursuant tothisMOUshallbeexercisedbyInterim FireChiefWilliamRacowschiorhisdesignee.

Section 4. Equipment.

A. TheVictorvilleFireDepartment shallbepermittedto use, operate, andtransport theEquipmenton an "as -needed" basisasrequestedby theVictorvilleFire Department, and approved bytheCITY'sdesigneeinSection3, inhissolediscretion, whennototherwiseneeded forotherRedlandsFireDepartmentpurposes. TheVictorvilleFire Departmentrecognizesthatthe RedlandsFire Department'suseof theEquipmentmay precludetheuseof theEquipmentbythe VictorvilleFireDepartment, andin suchcasestheRedlands FireDepartmentmaydenytherequest tousetheEquipmentordemandtheimmediate returnof theEquipmentin thepossessionof the Victorville Fire Department, in the CITY' s sole andabsolutediscretion.

B. Requestfor Useof Equipment, Thosedesignatedin this MOU with the authorityto actonbehalfofeitherPartyshallworktogetherto coordinatecertainprocedurestogovernrequests bytheCITYtousetheEquipment, especiallyforwhentheEquipmentisneededinemergency situations. Innon -emergencysituations, theCITYshallrequestuseoftheEquipmentasfarin advanceaspossiblebynotifyingtheVictorvilleFireDepartmentoftheneedfortheEquipment.

C. UseofEquipment. TheVictorvilleFireDepartmentshallnotpermitanyindividual touse, operateor transporttheEquipmentunlessthatindividualisproperlytrainedandauthorized to do so. The Victorville Fire Departmentshall use the utmostcare in using, operating, or transportingtheEquipment. If theEquipmentbreaksorexperiencesother mechanicalproblems whileinthepossessionoftheVictorvilleFireDepartment, theVictorvilleFireDepartment shall immediatelynotifytheRedlandsFireDepartmentof theproblem.

D. Returning Equipment. TheVictorvilleFireDepartment shallnotifytheRedlands FireDepartmentbeforeborrowingtheEquipmentofwhenit will returnEquipment, orinthecase ofemergencysituations, theVictorvilleFireDepartmentshallkeep theRedlandsFireDepartment updatedonwhentheEquipmentwill bereturned. In theeventthattheRedlandsFireDepartment demands theimmediatereturnof theEquipmentthenin thepossessionof theVictorvilleFire Department, theVictorville FireDepartment shallimmediatelydelivertheEquipmentavailableto the Redlands Fire Department.

Section 5. Victorville Fire Department Responsibilities. The Victorville Fire Departmentshallbesolelyresponsibleforallofthefollowing, including, without limitation, any accompanying cost or expense:

A. TransportingtheEquipmentto andfromtheRedlandsFirefacilitieshousingthe Equipment.
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B. PerformingroutineinspectionsandminormaintenanceonEquipmentwhenused bytheVictorvilleFireDepartment, including, butnot limitedto, oil, mechanicalfluids, operations, fuel, andsafetychecks.

C. Providingsatisfactoryproofof liabilityorotherinsuranceofthetypesandinthe amountsasrequiredby this MOU.

D. Bearingsoleandabsoluteresponsibilityforanyandalllossofordamage tothe Equipmentoccurringwhilein possessionandcontrolof the VictorvilleFireDepartment, customary wearandtearexcepted. Victorvilleshall payto theCITYfor anyandall costs associatedwithrepairingdamage totheEquipmentoccurringwhile inthepossessionorcontrolof theVictorvilleFireDepartmentif demandedbytheRedlandsFireDepartment, customarywear andtearexcepted, withinthirty (30) daysuponreceiptbytheVictorvilleFire Departmentofa writteninvoiceaccountingforsuchcostsofrepair. VictorvilleshallpaytotheCITYforanyand allcostsassociatedwithreasonablyreplacingtheEquipmentintheeventofcompletelossofthe Equipment occurringwhilein thepossessionorcontrolof theVictorvilleFireDepartment, if demandedbytheRedlandsFireDepartment, within thirty (30) daysupon receiptbytheVictorville FireDepartmentofawritteninvoiceaccountingforsuch costsofreplacement.

E. RefuelingEquipmentto, atminimum, thelevelexistingatthetimetheVietorville Fire Departmenttakescontrol of the Equipment.

F,
Storing Equipmentovernightatsecurefacilitiesownedandcontrolledbythe VictorvilleFireDepartmentwhen theVictorvilleFireDepartmentisinpossessionandcontrolof theEquipment, whensuchstorage isotherwiserequestedbytheRedlandsFireDepartment, or whensuchstorageisconvenienttotheVietorvilleFireDepartmentandapprovedinadvanceby the Redlands Fire Department.

Section 6. Cost, TheVictorvilleFireDepartmentshallpaynocompensationforthe useoftheEquipment, exceptforanyandallcostsrelatedtotheresponsibilitieslistedinSection5 of this MOU.

Section 7. Indemnification, Tothefullestextentpermittedby law, Victorville (the IndemnifyingParty) shalldefend, indemnifyandholdtheCITY (the "IndemnifiedParty") and its directors, officials, officers, employees, agents, andvolunteersfreeandharmlessfromanyandall claims, demands, causesof action, costs, expenses, liabilities, losses, damagesor injuries, includingreasonableattorneys' feesandotherrelatedcosts, inlaworequity, topropertyorpersons, includingwrongfuldeath, in anymannerarisingoutof, or incidentto, theuse, operationor transportationoftheEquipment, or thisMOU, exceptforsuchlossordamagearisingfromthe willfulmisconductof theIndemnifiedParty, TheIndemnifyingPartyshalldefend, atthe IndemnifyingParty'sowncost, expenseandrisk, any andallsuchaforesaidsuits, actionsorother legal proceedingsofeverykindthatmaybebroughtorinstitutedagainsttheIndemnifiedParty 3 I:\cmo\Agreements\MOUCityofVictorvilleEquipment SharingFY23-0039.docx-ms Redlands Regular Meeting of 10/01/24
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andits directors, officials, officers, employees, agents, andvolunteers, withcounsel reasonably approvedbytheIndemnifiedParty. TheIndemnifyingPartyshall payandsatisfyanyjudgment, awardordecreethat mayberenderedagainsttheIndemnifiedPartyandits directors, officials, officers, employees, agents, andvolunteers, inanysuchsuit, actionor otherlegalproceeding. The IndemnifyingPartyshallreimbursetheIndemnifiedPartyanditsdirectors, officials, officers, employees, agents, andvolunteersforany andalllegalexpensesandcostsincurred byeachof themin connectiontherewithor in enforcingtheindemnityhereinprovided. TheIndemnifying Parry'sobligationtoindemnifyshallnotberestricted toinsuranceproceeds, if any, receivedby theIndemnifiedPartyor its directors, officials, officers, employees, andvolunteers. This indemnityprovisionshallsurvivetheterminationofthisMOU.

Section 8. Insurance,
A. Time for Compliance. Victorville shallnot allow theVictorville Fire Department to use, operate, or transporttheEquipmentunderthisMOUunlessanduntilit hasprovided evidencesatisfactorytotheCITYthatit hassecuredallinsurancerequiredunderthissection, or that it is self -insured to the satisfactionof the CITY.

B. MinimumRequirements. Victorvilleshall, atitsexpense, procureandmaintainfor thedurationofthisMOUinsuranceagainstallclaimsforinjuriestopersonsordamagestoproperty whichmayarisefromorinconnectionwiththeperformanceofthisMOUbyVictorville, its electedandappointedofficials, officers, employees, andvolunteers, Suchinsuranceshall meetat least thefollowingminimumlevelsof coverage, or Victorvilleshallbeself -insuredto the satisfaction of the CITY.
i. MinimumLimitsof Insurance. Victorvilleshallmaintainlimitsnolessthan:
1) General Liability: $ 2,000,000peroccurrencefor bodilyinjury, personalinjury, andproperty damage. If CommercialGeneralLiabilityInsuranceorotherformwithageneral aggregatelimit isused, eitherthegeneralaggregatelimitshallapplyseparatelyto thisMOUorthegeneral aggregatelimitshallbetwicetherequired occurrencelimit. Thepolicymustincludecontractual liabilitythathasnotbeen amended. AnyendorsementrestrictingstandardISO "insuredcontract" languagewill notbe accepted; (2) Automobile Liability: $ 1,000, 000peraccidentforbodily injury andpropertydamage; and (3) Workers' CompensationandEmployer's Liability: Workers' CompensationlimitsasrequiredbytheLaborCodeoftheStateofCalifornia. Employer'sLiability limitsof $1,000,000 peraccidentforbodilyinjuryordisease. ii. Endorsements. Eachpolicyshallbeendorsedtostatethat: (1) theCITYand itsdirectors, officials, officers, employees, andvolunteers shallbecoveredasadditionalinsured withrespect to theuse, operationortransporttheEquipment performed byoronbehalfof the VictorvilleFireDepartment; and (2) theinsurancecoverageshallbeprimaryinsuranceasrespects theCITYanditsdirectors, officials, officers, employees, andvolunteers, orif excess, shallstand inanunbrokenchainofcoverageexcessofCITY'sscheduledunderlyingcoverage. Anyinsurance 4 I,\emo\Agreements\MOUCityofVictorvilleEquipmentSharingPY23-0039.docx-ms Redlands Regular Meeting of 10/01/24
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or self-insurancemaintainedby theCITY andits directors, officials, officers, employees, and volunteersshallbeexcessof suchinsuranceobtainedby ' theVictorvilleandshallnotbecalled upon to contribute in any way. The insurer shall agreeto waive all rights of subrogationagainst theCITYanditsdirectors, officials, officers, employees, andvolunteersforlossespaidunderthe termsof theinsurancepolicywhicharisefromtheuse, operation, or transportof theEquipment bytheVictorvilleFireDepartment. Eachinsurancepolicyshallalsobeendorsedtostatethat: (1) coverageshall notbesuspended, voided, reducedorcanceledexceptafterthirty (30) daysprior writtennotice bycertifiedmail, returnreceiptrequested, hasbeengivento theCITY's Risk Managerasapplicable; and (2) anyfailureto complywithreportingorotherprovisionsofthe policies, includingbreachesof warranties, shall not affectcoverageprovidedto theCITYandits directors, officials, officers, employeesandvolunteers. Thereshallbenocross -liabilityexclusion for claims orsuitsby oneinsuredagainstanother. Requirementsof specificcoveragefeatures, or limits containedin this sectionare not intendedas a limitation on coverage, limits or other requirements, orawaiverof anycoveragenormallyprovidedbyanyinsurance.

Section 9. Termination. ThisMOU shallbeeffectiveasof its Effective Date, andshall continueuntil terminatedbyeither Partyby givingatleastthirty (30) daysadvancewrittennotice of the effective date of termination.

Section 10. Notices. Any noticeor othercommunication required, or which maybe given, pursuantto this Agreement, shallbein writing. Any suchnoticeshallbedeemeddelivered i) on thedateof deliveryin person; (ii) five ( 5) days after deposit in first class registered mail, withreturnreceiptrequested; (iii) onthe actualdeliverydateif depositedwithanovernightcourier; or (iv) onthedatesentbyfacsimileor electronicmailtransmission (includingPDF), if confirmed with a copy sentcontemporaneouslyby first class, certified, registeredor expressmail; in each caseproperlypostedandfully prepaidto the appropriateaddresssetforth below, or suchother addressasa Partymay providenoticein accordancewith this section:

If to the CITY: Redlands Fire Department
35 Cajon Street, Suite 12, Redlands CA 92373
Attn: Fire Chief Rich Sessler
If to Victorville: Victorville Fire Department
14343 Civic Drive, Victorville CA 92392
Attn: Interim Fire Chief Racowschi
Section 11. Miscellaneous Terms,
A. Representation andWarranties. TheCITYandVictorvillehaveall requisitepower andauthoritytoexecuteandperformthisMOU. EachpersonexecutingthisMOUwarrantsthat he or shehasthe legalpower, right, andauthorityto executethis MOU andbind his or her respectiveParty.
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B. GoverningLaw. ThisMOUshallbegovernedbyandconstruedinaccordancewith thelawsof theStateof California. Venueshallbe in SanBernardino County.

C. RelationshipoftheParties. NothingcontainedinthisMOUshallbeconstruedas creatingajointventure, partnership, oranyothersimilararrangementbetweenthe Parties. No Partyto thisMOUshallbedeemed tobearepresentative, anagent, oranemployeeoftheother Party. Unlessotherwiseexpressly specifiedinthisMOU,, noPartyshallhaveanyauthorityorright toassumeorcreateanyobligationofanykindornature, expressorimplied, onbehalfof, orinthe nameof, anyotherParty, norbindanyotherPartyinanyrespect, withoutthespecificpriorwritten authorization of the other Party.

D. Waiver. NoPartyshallbedeemed tohavewaivedanyprovisionofthisMOUunless suchwaiveris in writing andsignedby suchParty.

E. LegalCompliance. ThePartiesshallcomplywithall applicableFederal, State, and locallawsandregulationsrelatedtothetransactionssetforthin, orreferencedby, thisMOU.

F. Third -PartyBeneficiary. Noclaimasathird -partybeneficiaryunder thisMOUby anyperson, corporation, orany otherentity, shallbemadeorbevalidagainstVictorvilleorthe CITY.

G. Headings. The sectionheadingsusedin this MOU arefor convenienceonly and shallnot bedeemedto limit, construe, affector alter themeaningof this MOU.

H. EntireAgreement. ThisMOU constitutestheentireagreementbetweentheParties withrespecttothematterscontainedherein, andshallsupersedeand replaceanyandallotherprior understandings, correspondence, andagreements, oralorwritten, betweenthePartieswithrespect thereto. No change, amendment ormodificationof this MOU shallbevalid or bindinguponthe Partiesunlesssuchchange, amendment, or modificationis in writinganddulyexecutedby all Parties.

I. Assignmentor Transfer. NeitherPartyshallassign, hypothecate, or transfer, either directlyorbyoperationoflaw, thisMOUoranyinteresthereinwithoutthepriorwrittenconsent oftheotherParty. Anyattempttodososhallbenullandvoid, andanyassignees, hypothecates, or transfereesshall acquireno right or interestby reasonof such attempted assignment, hypothecation, or transfer.

J. Binding Effect. The termsof thisMOUshallinuretothebenefitof, andshallbe bindingupon, eachofthePartiesandtheirrespectivesuccessorsandassigns.

K. Severability. In theeventthat anyoneor moreof thephrases, sentences, clauses, paragraphs, or sectionscontainedinthisMOUshallbedeclaredinvalidorunenforceablebya 6 I:\cmo\ Agreements\MOUCityofVictorvilleEquipmentSharingFY23- 0034.doex•ms Redlands Regular Meeting of 10/01/24
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validjudgmentordecreeofacourtofcompetentjurisdiction, suchinvalidityorunenforceability shallnotaffectanyoftheremainingphrases, sentences, clauses, paragraphs, orsectionsofthis MOUwhichareherebydeclaredasseverable, andshallbeinterpretedtocarry outtheintentofthe Parties hereunder.

L. Cooperation: FurtherActs. ThePartiesshallreasonablycooperatewithoneanother andshall takeanyadditionalactsorsignanyadditionaldocumentsasmaybenecessary, appropriate, or convenient to attain the purposes of this MOU.

M. Counterparts. This MOU may be signedin counterparts, eachof which shall constitute an original.

INWITNESS WHEREOF, the Partieshaveexecuted thisMOU forEquipmentSharingasof March 5, 2024.

City of Victorville City of Redlands
By: 4!*. i k
Keith Metzler, City M nager
Date:

Eddie Tejeda, Mayo
Date:

ATTEST:

Donaldson, City Clerk
CONCUR:

By:

Richard Sessler, Fire Chief
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City Council Meeting I. 5.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Acceptance of National Opioid Settlement Funds from five Settling Defendants, including Allergan, CVS, Teva, Walgreens, and Walmart in the aggregate amount of $192,720.22, for the recruitment of a Substance Use Navigator (SUN) in the Fire Department to help improve treatment and access to medication for Opioid Use Disorder within the community, 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 motions are provided:

I move to approve the acceptance of National Opioid Settlement Funds from the five Settling Defendants (Allergan, CVS, Teva, Walgreens, and Walmart) in the aggregate amount of $192,720.22, for the recruitment of a Substance Use Navigator in the Fire Department to help improve treatment and access to medication for Opioid Use Disorder within the community; and

1. Authorize an additional appropriation for the payment amounts from each Settling Defendant.

2. RECOMMENDATION:

Staff recommends the City Council approve the acceptance of National Opioid Settlement Funds from the five Settling Defendants including Allergan, CVS, Teva, Walgreens, and Walmart in the aggregate amount of $192,720.22, for a Substance Use Navigator position in the Fire Department to help improve treatment and access to medication for Opioid Use Disorder in the community, and authorize an additional appropriation for the same.

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DISCUSSION:

The opioid crisis has prompted extensive litigation across the U.S., including significant cases in California. Thousands of lawsuits have been filed by various states, counties, cities, and tribes seeking compensation for the damages caused by the opioid epidemic. Almost 80 California counties and cities, including San Bernardino County, have been involved in these legal actions. The lawsuits primarily target opioid manufacturers, distributors, and pharmacies, alleging that their actions contributed to the crisis.

In 2021, major settlements were reached with the three largest pharmaceutical distributors—McKesson, Cardinal Health, and AmerisourceBergen—and the manufacturer Janssen Pharmaceuticals and its parent company, Johnson & Johnson. The City Council of Redlands approved its participation in these settlements and agreed to reallocate its share of the proceeds to San Bernardino County for county-wide opioid remediation programs.

Later, in 2022, additional settlements were reached with other responsible entities contributing to the opoid crisis, including Allergan, CVS, Teva, Walgreens, and Walmart. The total maximum payout agreed upon by all the Settling Defendants exceeds $20 billion, with the payments distributed over a period ranging from 3 to 15 years, depending on the specific terms negotiated with each defendant. Similar to the settlements reached in 2021, these settlements offered local subdivisions, such as cities, an opportunity to participate and receive funds by agreeing to release the defendants from further claims. In April 2023, the City Council approved Resolution No. 8460 to authorize the City of Redlands to participate in the national settlements with the Settling Defendants.

Funds from the California Opioid Settlements are intended to support opioid remediation activities. As defined in the National Opioid Settlement Agreements, opioid remediation is the “care, treatment, and other programs and expenditures designed to (1) address the misuse and abuse of opioid products, (2) treat or mitigate opioid use or related disorders, or (3) mitigate other alleged effects of, including on those injured as a result of, the opioid crisis.” In line with these guidelines, the settlement funds allocated to the City will be used to hire a Substance Use Navigator within the Fire Department to tackle the opioid crisis in our community.

The first round of payments from the settlement agreements were received as of August 2024 as listed below:

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Pharmaceutical Company Amount
Allergan $23,030.50
CVS $23,905.03
TEVA $20,973.58
Walgreens $26,098.59
Walmart $98,682.52
TOTAL $192,720.22
The City anticipates receiving additional rounds of payment over the next 3 to 15 years (for a total of $718,305). As mentioned, the settlement funding will be allocated to hire a Substance Use Navigator (SUN) for the Fire Department. A SUN is a specialized care coordinator who enhances access to medication for Opioid Use Disorder (OUD). Typically found in emergency departments or inpatient settings, a SUN helps individuals who have started buprenorphine treatment to continue their addiction recovery through motivation, resources, and support. Their role includes conducting initial assessments, introducing patients to OUD treatment programs and services, acting as a primary coach, and maintaining regular contact with their clients. Additionally, SUNs facilitate access to other essential services, including financial counseling, primary care, mental health support, social services, and residential treatment options. The SUN position is estimated to cost the City roughly $87,000 annually, inclusive of salaries and benefits. The Redlands Fire Department will be the pioneering fire department to implement this role.

ALTERNATIVES:

City Council may choose not to approve the acceptance of National Opioid Settlement funds from the five settling defendants.

STRATEGIC PLAN:

Priority B - Health & Wellness
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
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Danielle Garcia, Management Services/Finance Director
PREPARED BY:

Bruni Reyes, Management Analyst
Fiscal Impact
Fiscal Year: 2024-2025
Revenue Generating: Y
Appropriation Required Y/N: Y
Discussion:

There is no fiscal impact associated with the acceptance of the National Opioid Settlement Funds. This funding will be deposited into the Governmental Grants Fund. The initial amount of $192,720 has already been received, and the City anticipates receiving a total of $718,305 over the next 3 to 15 years.

The estimated annual cost of the SUN position is $87,000, inclusive of salaries and benefits. This position would be fully funded by the settlement funds.

Attachments
Additional Appropriation
Draft SUN Job Description
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Substance Use Navigator Job Description

SUMMARY:

The Substance Use Navigator is an integral team member that helps patients access evidence-based treatment for Substance Use Disorders (SUD), with a focus on low-threshold access to MAT (Medication for Addiction Treatment) and harm reduction. Conducts outreach and identifies patients. Completes brief initial assessments, introduces patients to MAT programs and services and facilitates appointments at outpatient MAT clinics. Serves as a resource and coach for clients, and advocates for culture change in the hospital. Assists with access to other services, such as mental health services, primary care, social services, financial counseling, behavioral health services, and residential treatment facilities.

Substance Use Navigators (SUNs) work in the clinic, Emergency Department, hospital inpatient settings, and community touch points to recruit both people who use substances and clinicians to positively engage in therapeutic relationships that promote the most effective implementation of medications for treatment of addiction, harm reduction strategies, and psychosocial treatments; SUNs are experts in both medications for addiction treatment and harm reduction and use motivational interviewing, behavioral activation, and strengths-based coaching to promote wellness and reduce harm for people using drugs and alcohol; SUNs will work in a fast-paced, team-oriented setting, collaborating with an interdisciplinary care team to meet patient needs; SUNs become trusted resources for the regional community of people using drugs and the network of clinicians and staff at treatment and social services programs that serve this community; SUNs develop large social networks and cultivate an expectation of availability, flexibility, and dynamic problem solving; SUNS are ambassadors of the Redlands Fire Department promoting friendly, on demand access to the best quality substance use disorder treatment throughout the community.

DUTIES & ESSENTIAL JOB FUNCTIONS: NOTE: Following are the duties performed by employees in this classification. However, employees may perform other related duties at an equivalent level. Not all duties listed are necessarily performed by each individual in the classification.

1. Communicates with staff daily to recruit patients and provide support to staff around Behavioral Health and MAT. Monitors the Fire Department incidents and any applicable systems to screen for eligible patients. Checks-in with ED and inpatient clinicians and nursing staff to screen for eligible patients as necessary. Primary duty is to the Fire Department patients, and can assist with inpatients as well, if time allows, and as determined to be relevant for the hospital. Communicates and interacts with patients in a culturally competent and relatable way.

2. Engages people using drugs in non-judgmental conversation that is friendly, helpful, informative and supports their participation in harm reduction and substance use disorder treatment opportunities.

Engagement may occur by phone, text, in the clinic, emergency department, hospital floor or community site.

3. Identifies current primary care provider and behavioral health providers. Works to connect patient with existing MAT treatment available at current primary care provider and/or behavioral health location when available and appropriate, unless patient prefers an alternate MAT treatment location. Identifies or provide options for a primary medical home if not secured. Develops positive working relationships with staff and community SUD agencies.

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4. Provides patient education, issues medical director approved medication, and counseling on options for medications for addiction treatment (MAT) including methadone, buprenorphine, suboxone, naltrexone, bupropion, mirtazapine, and gabapentin.

5. Motivate and assist patients to successfully access healthcare, behavioral health, and social resources for their benefit. This includes direct advocacy with pharmacies, insurance companies, residential treatment facilities, medical facilities, and others to best meet the needs of Bridge patients.

6. When in the emergency department and hospital floors, utilizes the electronic medical record and communication with clinicians to proactively screen, identify, and approach patients suspected of struggling with alcohol or substance use; once identified, communicate with Bridge clinicians to develop and initiate medication treatment for substance use disorders and coordinate psychosocial supports.

7. When in the clinic, answers the Substance Use Navigator Warmline voice and text messages to respond to patient needs.

8. Directly schedules clinic visits for patients, motivate attendance, and provide logistical support to complete the visit such as arranging transportation or access via phone.

9. Documents follow-up and field contact patient interactions and status updates in the electronic medical record.

10. Communicates with Bridge practice manager to coordinate daily focus for activity.

11. Provides fire department education (schools, etc.) on substance use and abatement, working alongside other departments.

12. Maintains updated, in-depth knowledge of local and regional SUD treatment programs including capacity, insurance requirements, and additional services provided at local and regional programs (benefits assistance, housing assistance, mental health, primary care, etc.).

13. Assesses and addresses any barriers to attending follow up appointments (transportation, contact phone number, availability for appointment reminders, shelter needs, etc.), establishes patients that may need a primary care doctor. Engages social services and behavioral health to assist with any of these issues as needed.

14. Assists with navigating barriers to patients obtaining buprenorphine and suboxone prescription from pharmacy (insurance status, copay expense, cost differences between formulations, etc.). Routinely assists patients by having the patient and/or pharmacist call from the pharmacy to sort out encountered insurance barriers in real time. Ability to use computer information systems, computer literacy, and knowledge of word processing. Collects data related to number of buprenorphine administrations, prescriptions, referrals to care and outpatient follow up if possible. Engages in trainings to enhance knowledge of MAT.

15. Coordinate with Homeless Coordinator and Behavioral Health Specialist to report and respond throughout the community, as part of a community-based team.

18. Performs other duties as assigned.

MINIMUM QUALIFICATIONS:

Required Education: High School diploma or equivalent
Preferred Education: Associate Degree
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Required Experience: One year of direct patient care experience in substance use disorders and harm reduction within the last two years OR current full-time employment of at least three months working as a substance use navigator AND experience supporting initiation and maintenance of buprenorphine and suboxone for treatment of Opioid Use Disorder within the last two years; experience distributing naloxone and training people on overdose recognition and treatment.

Desirable Experience: Personal, lived experience with substance use disorders and recovery.

Any combination of education and experience that would likely provide the required knowledge, skills and abilities as well as possession of any required licenses or certifications is qualifying.

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City Council Meeting I. 6.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the Second Amendment to the Professional Services Agreement with Carollo Engineers, Inc. for the Tate Water Treatment Plant Raw Water Influent Pipeline Replacement Project extending the completion time by twelve (12) months to October 18, 2025 (Municipal Utilities and Engineering Director Harris) MOTION(S):

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

I move to approve the Second Amendment to the Professional Services Agreement with Carollo Engineers, Inc.

RECOMMENDATION:

Staff recommends City Council approve the Second Amendment to the Professional Services Agreement with Carollo Engineers, Inc. for the Tate Water Treatment Plant Raw Water Influent Pipeline Replacement Project extending the completion time by twelve (12) months to October 18, 2025.

DISCUSSION:

The City extracts groundwater and receives raw water from two (2) surface water sources for treatment and disinfection to meet drinking water standards prior to distribution through the potable water system. Santa Ana River surface water is received and treated at the Hinckley Water Treatment Plant, and Mill Creek surface water is received and treated at the Tate Water Treatment Plant (Tate). Tate has a potable water treatment capacity of twenty million gallons per day (20 MGD), with average daily production of seven (7) MGD and peak day production of eleven (11) MGD during the peak water use season (July-September). Tate operates in the 2,340' pressure zone and is able to supply approximately eighty-seven percent (87%) of the City's water service Redlands Regular Meeting of 10/01/24
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supply approximately eighty-seven percent (87%) of the City's water service area customers. The Tate facility has been upgraded, and its processes enhanced to improve water supply reliability by allowing State Water Project to be mixed with Mill Creek water for treatment. Brady & Associates, Inc. recently completed a Condition, Structural, and Seismic Assessment of the Tate raw water transmission line and recommended replacement.

The goal of this phase of the Tate Water Treatment Plant Raw Water Influent Pipeline Replacement Project (Project) is to engineer a new raw water influent pipeline from the box structure near the Southern California Edison Power House #1, across Mill Creek, and join existing pipeline valving at the Tate connection point. The Project also serves as a distribution pipeline for Crafton Water Company and the San Bernardino Valley Water Conservation District, and includes valves and flow meters to separately control and measure flows. The Project will likely be constructed in two (2) separate phases in the future and construction documents will be provided for each phase.

On April 19, 2022, City Council approved a Professional Services Agreement with Carollo Engineers, Inc. (Carollo) for this phase of the Project and determined the Project to be exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act. On October 3, 2023, City Council approved the First Amendment to the Agreement, extending the completion term by twelve (12) months to October 18, 2024. Continued delays coordinating engineering reviews and permitting with outside agencies necessitate an additional twelve (12) month extension to the contract term. If this Second Amendment is approved, the amended completion date will be October 18, 2025. No additional Agreement revisions are proposed.

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
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REVIEWED BY:

Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Christopher Boatman, Assistant City Manager
Paul Mariscal, Water Utility Manager
PREPARED BY:

John R. Harris, Municipal Utilities and Engineering Director Fiscal Impact
Fiscal Year: FY 24/25
Appropriation Required Y/N: N
Budgeted Y/N: Y
Discussion:

There is no fiscal impact associated with this action.

Attachments
Professional Services Agreement Carollo
First Amendment Carollo
Second Amendment Carollo
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1 I:\cmo\Agreements\Second Amendment Carollo Engineers, Inc. Tate Water Treatment Pipeline Replacement FY24-0025.docx-ms

SECOND AMENDMENT TO AGREEMENT TO PERFORM PROFESSIONAL SERVICES

This second amendment (“Second Amendment”) to the agreement for Engineering services related to the Tate Water Treatment Plant Raw Water Influent Pipeline Replacement Project dated April 19, 2022 (“Agreement”), by and between the City of Redl ands, a municipal corporation (“City”), and Carollo Engineers, Inc., a Delaware corporation (“Consultant”), is made and entered into this 1st day of October, 2024.

RECITALS

WHEREAS, it is the desire of the City and Consultant to amend their existing Agreement, specifically to extend the contract term by twelve (12) months to October 18, 2025.

NOW, THEREFORE, City and Consultant agree as follows:

AGREEMENT

Section 1. Section 4.2 of Article 4 (“Performance of Services”) of the Agreement, entitled is hereby amended to read as follows:

“4.2 The term of this Agreement shall be for a period of forty-two (42) months commencing as of the Effective Date, unless terminated earlier as provided herein.”

Section 2. All other provisions of the Agreement shall remain unchanged by th is Second Amendment and in effect.

IN WITNESS WHEREOF, the parties have executed this Second Amendment, to be effective as of October 1, 2024.

CITY OF REDLANDS CAROLLO ENGINEERS, INC.

________________________________ By: ________________________________ Eddie Tejeda, Mayor Graham J.G. Juby, Senior Project
Manager

ATTEST:

__________________________________
Jeanne Donaldson, City Clerk
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City Council Meeting I. 7.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the request to temporarily close San Bernardino Avenue for the Revel Big Bear Marathon event hosted by the Brooksee Foundation on November 16, 2024; authorize the request for the sale and consumption of alcoholic beverages, and determine that the approval of the request is exempt from environmental review pursuant to Section 15311 of the state’s guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker)
MOTION(S):

If the City Council determines that staff's recommendations are appropriate, the following motions are provided:

I move that the City Council determine that the approval of the event is exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act; and

1. I move that the City Council approve the request for the temporary street closure of San Bernardino Avenue and the sale and consumption of alcoholic beverages related to the event.

2. RECOMMENDATION:

Staff recommends that City Council approve the temporary street closure of San Bernardino Avenue from Dearborn Street to Wabash Avenue on November 16, 2024 for the Revel Big Bear Marathon event. Staff further recommends that the City Council provide staff direction regarding the request for the sale and consumption of alcoholic beverages and determine that approval of the request is exempt from environmental review pursuant to Section 15311 of the state’s guidelines implementing the California Environmental Quality Act (CEQA).

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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 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 support programs that provide a community benefit, the City Council will, from time to time, consider the authorization of in-kind support including the use of city equipment, staff, and facilities for special events.

The Brooksee Foundation, in partnership with Revel Races, will be hosting the Big Bear Marathon/Half-Marathon on November 16, 2024. The marathon and half-marathon begins in Angelus Oaks and ends in Redlands along San Bernardino Avenue adjacent to the Redlands Sports Park. The Brooksee Foundation is requesting to temporarily close San Bernardino Avenue from Wabash Avenue to Dearborn Street for the event and permission to sell and consume alcoholic beverages at the event. The Brooksee Foundation serves one beer to each race participant as a courtesy, and gives the option to purchase additional beer for the participants only. The serving and selling of alcohol at the event is scheduled on November 16, 2024, and will end no later than 1:00 p.m. In order to accommodate the set-up for the event, Brooksee Foundation is requesting the closure of San Bernardino Avenue between Dearborn Street and Wabash Street on November 15, 2024, from 8:00 a.m. The closure will remain in place throughout the duration of the event. The event road closure will be removed by 5:00 p.m. on November 16, 2024.

City council approved the same request on October 17, 2023, for the event taking place on November 18, 2023. According to the application submitted, in addition to providing unforgettable experiences for their runners, REVEL races also deliver value to the communities who graciously host their events. Each REVEL race brings significant financial benefits to local economies, provides an opportunity for communities to brand themselves, and creates a healthier and more fitness-friendly community. They anticipate approximately 3,200 attendees.

Additionally, proceeds from each REVEL runner's entry fee are donated to local nonprofit groups geared towards health and environmental causes.

The event is exempt from the requirements of the California Environmental Quality Act's guidelines pursuant to section 15311(c). Section 15311(c), Section 15311(c), accessory structures Class 11 facilities, consists of construction, or replacement of minor structure accessory to existing commercial, industrial, or institutional facilities, including placement of seasonal or temporary use items such as mobile food units, portable restrooms or similar items in generally the same locations from time to time in publicly owned parks or other facilities designed for public use.

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designed for public use.

ALTERNATIVES:

The City Council may elect to deny the event, commercial activity, or temporary street closure.

STRATEGIC PLAN:

Priority A - Quality of Life, Strategic Objective 1. Beautification, Arts and Culture.

SUBMITTED BY:

Tabitha Crocker, Facilities and Community Services Department Director

REVIEWED BY:

Charles M. Duggan, Jr. City Manager
Janice McConnell, Assistant City Manager
Christopher Boatman, Assistant City Manager
Danielle Garcia, Management Services/Finance Director

PREPARED BY:

Jaclyn Ramirez, Administrative Assistant II
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Fiscal Impact
Fiscal Year: FY 2024/25
Revenue Generating: No
Appropriation Required Y/N: N
Budgeted Y/N: N
Discussion:

Pursuant upon the applicant paying all required fees and costs associated with police personnel, there is no fiscal impact associated with the approval of this event.

Attachments
Special Event Packet
Exhibit A
Event Map
Event Flyer
Proof of Non-Profit
ABC Permit
Street Closure Form
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City of Redlands
35 Cajon Street, Ste. 222
Redlands, CA 92373

SPECIAL EVENTS PERMIT APPLICATION
EVENT:

ORGANIZER:
(909) 798-7655 ext 3 Date of Event: / /
Date Submitted: / /

NOTICE TO PERMIT APPLICANT
 Completed Special Event Permit Applications must be submitted to the Facilities & Community Services Department a minimum of four (4) months prior to the date the event is scheduled to begin.
 All forms in this application package that are relevant to your event must be complete and submitted together in order to be considered.
 Applicants must conform to all requirements for maintaining liability insurance.  Incomplete applications or applications submitted past the deadline are subject to denial of request to hold event.

Revel Big Bear Marathon
Brooksee
11 16 2024
08 02 2024
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STEP 1 – Review Application Packet
The Special Events Application Packet has been designed to assist event organizers and will help with the development of event plans that comply with local codes, laws, policies and regulations governing activities associated with the production and management of special events. By applying to schedule a special event, you and your representatives agree you have the sole responsibility at all times to be knowledgeable about, fully understand, and to meet or exceed all local and state codes, laws, policies, and regulations associated with the proposed event and its related activities.

STEP 2
– Assess Venue
As an event organizer it is your responsibility to assess the venue, anticipated attendees, and event components of your proposed event prior to submitting the applications for the various permits. It is important to develop management strategies that ensure the safety of your guests, citizens, and the surrounding environment affected by your event.

STEP 3
– Submit Application
The City of Redlands requires permit applications to be submitted no later than ninety (90) days prior to the actual date of your event and allows applications to be submitted as early as six (6) months before the event date. At the sole discretion of the City of Redlands, you may be authorized to submit written amendments to your initial permit application due to unique or changing circumstances related to the event. Amendments to your permit application must be submitted to the One Stop Permit Center no later than 14 days prior to your event.

All Applications Must Be Complete. The City of Redlands is not required to act upon an incomplete permit application. A permit application will not be approved or denied and you will not have requested venues reserved or held if you have not provided the required information. It is therefore important to provide all required information and documentation in a timely and complete manner.

For an application to be considered complete, applicants must submit the following minimum information required in sufficient detail that the material can be understood and assessed: (there is a checklist form on page 13 to aid in the process).
• Special Events Permit Application with Site Plan
• Street Closure Permit with Route Map – if applicable
• Barricade Rental Form – if Street Closures requested
• Request to Serve Alcohol Permit form with Site Plan – if applicable • Submit all required Certificates of Liability Insurance STEP 4 – Review Process
After submitting your complete application and forms, your application will be reviewed by those departments involved with your requests in which fees and deposits will be determined.

Departments may place conditions on your event, for example, solid waste requirements or specific parking plans.

STEP 5 – Submit Fees and Finalize Details
Once a Special Event Packet has been reviewed and approved; fees are due. A Coordination Meeting will be scheduled approximately two weeks prior to the event consisting of the Event Organizer(s) and representatives from supporting departments to settle/confirm final details.

APPLICATION PROCESS
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Special Events Permit Application
Event Title
Description
_ _ _ _
_ _ _ _
_ _ _ _
_ _ _ _
_ _ _ _
_ _ _
Date/Time
Setup Date
Event Starts Date
Event Ends Date
Dismantle Date
Time
Time
Time
Time
Location(s) _ _
Location(s) _ _
Location(s) _ _
Location(s) _ _
*Submit a Site Plan for each venue listed
Anticipated Anticipated
Attendance: Total Per Day _ Participants: Total Per Day _ CONT
ACTS Person(s) or Agent(s) responsible for and authorized to represent this event on all matters:

Primary Contact: Secondary Contact
Name: _ _ _
Address: _ _ _
City, State, Zip _ _ _
Phone: _ _ _
Email: _ _ _
Name of Organization: _ _ Is it Non-Profit?
Tax I.D. #:

Yes
۝
No
۝ Is this an annual event? How many years have you been holding this event? _ _ ۝ ۝Street Closure(s) requested? If yes, please complete Street Closure Permit Application and Barricade Rental Form in Appendix A
۝ ۝Does this event involve a parade? Please complete Parade/Public Assemblies Permit Application form in Appendix A
۝ ۝ Will you be serving alcohol? If yes, please complete both Alcohol Permit forms in Appendix A ۝ ۝Are you requesting use of the Prospect Park Sign? If yes, please complete the Sign Request form in Appendix A
۝ ۝Are you requesting use of the City Stage? If yes, please complete the Show Mobile Rental form in Appendix A
۝ ۝ Vendor(s)? If yes please complete the Vendor List in Appendix A.

SUMMARY OF EVENT
Revel Big Bear Marathon
Marathon will start at Greyback Amphitheater and run down Hwy 38 and into the City of Redlands and end at Redlands Sports Complex. The Half Marathon will start on the Valley of the Falls Dr. approximately 1/2 mile up from the intersection of Hwy 38 and Valley of the Falls Dr. and join the marathon on Hwy 38. 11/15/2024 8am - 10pm
11/16/2024 6am
11/16/2024 1pm
11/16/2024 1pm-5pm
E. San Bernardino Ave
E. San Bernardino Ave
E. San Bernardino Ave
E. San Bernardino Ave
3200 11/16- -
Tyler Monson
374 S. 671 W.

PG UT, 84062
385 270 7467
[email protected]
Joe Jurisic374 S. 671 W.

PG UT, 84062
213 926 6134
[email protected]
Brooksee Foundation Yes
27-3405099
4 years
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APPENDIX A
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Your event site plan/route map should include but not be limited to:
❑ An outline of the entire event venue including the names of all streets or areas that are part of the venue and the surrounding area. If the event involves a moving route of any kind, indicate the direction of travel and all street or lane closures.
❑ The location of fencing, barriers and/or barricades. Indicate any removable fencing for emergency access. ❑ The provision of minimum twenty foot (20') emergency access lanes throughout the event venue. ❑ The location of first aid facilities and ambulances.
❑ The location of all stages, platforms, scaffolding, bleachers, grandstands, canopies, tents, portable toilets, booths, beer gardens, cooking areas, trash containers and dumpsters, and other temporary structures. ❑ A detail or close-up of the food booth and cooking area configuration including booth identification of all vendors cooking with flammable gases or barbecue grills ❑ Generator locations and/or source of electricity.
❑ Placement of vehicles and/or trailers.
❑ Exit locations for outdoor events that are fenced and/or locations within tents and tent structures. ❑ Identification of all event components that meet accessibility standards. ❑ A parking and/or shuttle plan for events that are likely to exceed parking lot capacity of the space you are using. ❑ Other related event components not listed above.

Please provide a narrative and timeline of your event. You may provide this information as an attachment if necessary.

HOUR ACTION

SITE PLAN

TIMELINE
See attached document - See Exhibit A attachment
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MEDICAL PLAN
YES N
O
❑ ❑ Have you hired a licensed professional security company to develop and manage your event’s security plan? If yes, you are required to provide a copy of the security company’s valid Private Patrol Operator’s License issued by the State of California.

Security Organization
Address Street
City State Zip
Telephone Day Evening Fax Pager/Cellular
Private Patrol Operator License#
Please describe your security plan including crowd control, internal security or venue safety, or attach the plan to this
application.

Any event that has physical activity or is a race and has above 50 people requires amedical plan.

YES NO
❑ ❑ Have you hired a licensed professional emergency medical services provider to develop and manage your event’s medical plan?
If yes, please list:

Medical Services Provider
Address Street
City State Zip
Telephone Day Evening Fax Pager/Cellular

SECURITY PLAN
ASP Security Services
1255 W. Colton Ave #537
Redlands CA 92374
8886327099
18031
Prevent Medical Solutions
2260 S. Vista Ave.

Bloomington
CA
92316
(909) 533 9306
Please describe your medical plan including your communications plan, the number, certification levels (MD, RN, Paramedic, EMT) and types of resources that will be at your event and the manner in which they will be managed and deployed. Your plan should include hours of setup and dismantle of medical aid areas. You may attach the plan to this application if necessary.

See attached document - See Exhibit A attachment
See attached document - See Exhibit A attachment
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ACCESSIBILITY PLAN
This checklist is intended to serve as a planning guideline and may not be inclusive of all City, County, State and Federal access requirements. You may attach more detailed information if necessary.

YES NO
❑ ❑ Will there be a Clear Path of Travel throughout your event venue? Please describe ❑ ❑ Have you developed a Disabled Parking and/or Transportation Plan (including the use of public trans- portation or shuttle services) for your event? Please describe ❑ ❑ Will a minimum of 10% of portable rest rooms at your event be accessible? Please describe ❑ ❑ Will all food, beverage and vending areas be accessible? Please describe ❑ ❑ Will all signage be provided in highly contrasting colors and placed so pedestrian flow will not obstruct its visibility? Pleasedescribe
❑ ❑ If telephones are provided, will at least one telephone at each phone bank have a volume control and is hearing aid compatible? Please describe
❑ ❑ If an information center is provided at your event will customer service representatives be available to assist disabled individuals? Please describe
❑ ❑ If all areas of your event venue cannot be made accessible will maps or programs be made available to show the location of accessible rest rooms, parking, phones (if any), drinking fountains, and first aid stations? Please describe
You are required to provide portable rest room facilities at your event, unless you can substantiate the sufficient availability of both ADA accessible and non-accessible facilities in the immediate area of the event site which will be available to the public during your event. Indicate on your timeline when portable toilets will be set up.

Yes No
❑ ❑ Do you plan to provide portable rest room facilities at your event? If yes: Total number of portable toilets
If no: Please explain:

Rest Room Company
Address Street
City State Zip
Telephone Day Evening Fax Pager/Cellular

RESTROOM FACILITIES PLAN
Our venue is desi-
gned and spaced out to allow runners easy access through runner services and out into vendor's space, with room to mingle. See attached finish line map for more details.

Shuttle services will bring runners
from the finish venue at Redlands Sports Complex back to their cars at 650 E Hospitality Ln. See the shuttle map for more details.

Porta pots
are placed in the North-West section of the venue, easily accessible to participants and visitors.

All food and beverages
will be located inside the venue and are easily accessible, see map for details.

We have raised banners with designated signage that are over 12ft tall and colored in orange, blue, and red.

No info booth but there will be race staff in vests
all over the venue and anyone can quickly and easily ask them for assistance or help.

Venue is accessible, but we have signage for help with directions. 25 (2 ADA's)
United Site Services
2323 West Baseline Rd.

San Bernardino California 92410
866 449 8607
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Please provide a list of vendors, what they are there for and their business license numbers. Keep in mind that this list of vendors cannot change after the event has been approved. All must have a Redlands business license in order to participate with your event. If you need more entries, please attach a list with the same information to your event package. Vendors include all businesses either performing a service or selling at your event. All food concessioners must meet the San Bernardino Counties Department of Public Health Food Handler’s and Fire Suppression requirements.

Yes No
❑ ❑ Will items or services be sold at your event?
❑ ❑ Will you have some education only (not selling a product or service) booths? ❑ ❑ Will items or services sold at your event present unique liability issues (e.g. massage, etc.)? ❑ ❑ Does your event include food concession and/or preparation areas? ❑ ❑ Do you intend to cook food in the event area?
If yes, please specify method:
❑ Gas
❑ Electric
❑ Charcoal
❑ Other (specify)

VENDOR SERVICE THEY
ARE

PROVIDING

REDLANDS

BUSINESS

LICENSE
NUMBER

EDUCATIONAL

INFORMATION
ONLY? (Y/N)

LIST OF VENDORS
Cookie Co
Endurelite
Rapid Reboot
NOM
KODIAK Cakes
IV with me
Doterra
Stretch X
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YES NO
❑ ❑ Are there any musical entertainment features related to your event? If yes, complete the following information or provide an attachment listing all bands/performers, type of music, sound check and performance schedule.

Number of Stages
Number of Performers/Bands
Performer/Band name and music type
❑ ❑ Will sound checks be conducted prior to the event? If yes, Start time Finish time _ _
❑ ❑ Will sound amplification be used?
If yes, Start time Finish time
❑ ❑ Do you plan to have a patron dance component to either live or recorded music at your event? If yes, please describe
❑ ❑ Please describe the sound equipment that will be used for your event ❑ ❑ Will inflatables, such as jumpers, or similar devices be used at your event? If yes, please describe
❑ ❑ Does your event include the use of fireworks, rockets, lasers, or other pyrotechnics? If yes, please fill out a fireworks permit also located in this packet.

If yes, please describe
❑ ❑ Will your event include the use of any signs, banners, decorations, or special lighting? If yes, please describe
❑ ❑ Will there be massage activities at your event? If yes, please describe _ _ _ _ _
❑ ❑ Do your event plans include any, drawings or raffle opportunities? If yes, please describe _ _ _

ENTERTAINMENT PLAN
6:00am 6:30am
6:30am 1:00pm
Sound mixer & 4 speaker
to play music and make announcements as runners cross the finish line.

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MITIGATION OF IMPACT
Please Note: You will need to have your alcohol permit approved by Redlands city council prior to your event. A copy of your Alcohol license will be needed after city council approval, before the event.

Yes No
❑ ❑ Does your event involve the use of alcoholic beverages? If yes, please check all that apply:
❑ Free/Host Alcohol
❑ Alcohol Sales
❑ Host and Sale Alcohol
❑ Beer
❑ Beer and Wine
❑ Beer, Wine and Distilled Spirits
Please describe your security plan to ensure the safe sale or distribution of alcohol at your event.

YES NO
❑ ❑ Have you met with the residents, businesses, places of worship, schools and other entities that may be directly impacted by your event? If yes, please attach a complete list of these entities.

If
no, please explain
❑ ❑ Do you have a sample of the notice that you propose to distribute two weeks prior to your event? If yes, please attach.

If no, please explain

ALCOHOL
Runners have the chance to purchase a beer before the event, proof of this purchase is given to them in the form of a stamp on their hand. They receive that stamp before they start the race. Once they are at the finish they can go over to the beer garden, have their stamp and ID checked by security guards (who will be stationed at the entrance to the beer garden for the entire duration) and with that confirmation they will be allowed to enter the garden and receive their beer.

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INSURANCE REQUIREMENTS

Yes
❑
No
❑ Will this event be marketed, promoted, or advertised in any manner? f yes, please describe

❑ ❑ Will there by live media coverage during the event? f yes, please describe

❑ ❑ Will media vehicles be parked within the event venue? f yes, please describe safety plan

❑ ❑ Do you have a plan to control or limit the placement and/or distribution of promotional signage, stickers, and other items?
f yes, please describe

Regardless of the event you are required to have insurance that indemnifies the city of Redlands listing the location date and time.

Name of Insurance Agency

Address Street
City State Zip

Telephone Day Evening Fax Pager/Cellular

Contact Name
Policy Type
Policy Amount

Policy Number

MARKETING AND PUBLIC RELATIONS
HCC Specialty
401 Edgewater Place, Suite 400
Wakefield MA 01880
Patty Brooks
Commercial General Liability
$4,000,000
U24SE10007
719-395-2234
Facebook and Instagram
All signage is on flags/banners/frames and is not permanent. At the venue we utilize specific signage to help with directions, acknowledge sponsors, and provide visual appeal for photos to create a positive post race experience. All signage is placed according to the finish line map and will all be contained within the designated area.

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I certify that the information contained in the foregoing application is true and correct to the best of my knowledge and belief that I have read, understand and agree to abide by the rules and regulations governing the proposed Special Event under the Redlands Municipal Code and I understand that this application is made subject to the rules and regulations established by the City Council and/or the City Manager or the City Manager’s designee. Applicant agrees to comply will all other requirements of the City, County, State, Federal Government, and any other applicable entity which may pertain to the use of the Event venue and the conduct of the Event. In the event that a possessory interest subject to property taxation is created by virtue of this use permit, I agree to pay all possessory interest taxes and the City shall not be liable for the payment of such taxes I further agree that the payment of any such taxes shall not reduce any consideration paid to the City pursuant to this use permit. I agree to abide by these rules, and further certify that I, on behalf of the Host Organization, am also authorized to commit that organization, and therefore agree to be financially responsible for any costs and fees that may be incurred by or on behalf of the Event to the City of Redlands.

Print Name of Applicant/Host Organization
Title
Signature
Date
Print Name of Professional Event Organizer
Title
Signature
Date

AFFIDAVIT OF APPLICANT
Tyler Monson
Race Director
August 2, 2024
Tyler Monson/Brooksee
Race Director
August 2, 2024
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(SEA 10/00)
Thank you for completing your Special Event Permit A pplication.

Before you submit your application to the City of Redlands, please make sure that the following steps have been completed:

Ha
ve you?
❑ Signed and dated your application?
❑ Attached your event site plan?
❑ Attached your event parking and shuttle plan?
❑ Attached your event security plan?
❑ Provided a copy of your security company’s Private Patrol Operator’s License? ❑ Attached your event medical plan?
❑ Attached a copy of your accessibility plan?
❑ Attached a complete entertainment list and schedule?
❑ Included letters of support or endorsement from impacted entities and community groups within your venue area?
❑ Provided samples of communications that will be distributed to impacted residents, businesses, schools, places of worship and other entities? ❑ Attached your Certificate of Insurance?
❑ Attached a copy of your IRS 501(C) tax exemption letter? ❑ Included any County, State, or Federal permits that may be required to hold your event in the selected venue?
❑ Applied for a Police Vice Permit, if applicable?
Submit your completed permit application to:

Special Events
35 Cajon St. Suite #222
Redlands, CA 92373
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Participant Medical Plan

Aid stations will be established approximately every two miles along the entire race route, beginning near mile 3 of the full marathon. See Exhibit E for a sample aid station layout. Aid stations will be located on large shoulders and/or turnoff points adj acent to the runner lane to not obstruct the highway.

The locations of the 13 aid stations will be as follows:'

• Aid Station A: (34.1666449329, - 116.90499592700002)
• Aid Station B: (34.1592566256, - 116.92999679799999)
• Aid Station C: (34.1571858305, -116.95978004699998)
• Aid Station D: (34.1486246735, -116.98101777800002)
• Aid Station E: (34.1230714425, -116.98259759899997)
• Aid Station F: (34.1019214686, -116.9664507)
• Aid Station G: (34.0985233003, -116.97731364700002)
• Aid Station H: (34.1036529021, -117.009672954)
• Aid Station 1: (34.0898264522, -117.03809095899999)
• Aid Station J: (34.0759345358, -117.06454826800001)
• Aid Station K: (34.07171008252401, -117.09906634676963) • Aid Station L: (34.06990131660901, -117.11460633514719) • Aid Station M: (34.0701161201, -117.13171346399997)
Volunteers manning each aid station will be carpooling to the area in 2-3 vehicles, and we have selected locations that allow for adequate room for them to park on the shoulders and/or pull outs next to the aid stations.

Each aid station, consisting of multiple portable tables and chairs, will be manned by several event staff. Staff members, who will be identified by matching event shirts, will ensure that runners are able to get proper nutrition and hydration when needed. All aid stations will be supplied with adequate water and electrolytes. These fluids will be delivered the day before the race in 5-gallon jugs. The morning of the race, volunteers will pour the water and electrolytes into 5-gallon plastic coolers. The fluids will then be dispensed into waxed paper cups to be distributed to runners as they pass the aid stations.

Select aid stations will be supplied with other amenities such as energy bars and gels. In planning supplies for nutrition and hydration, we will plan our quantities based on the maximum possible intake per runner, and then add a contingency surplus to ens ure that the risk of dehydration and exhaustion is minimized. In addition to aid stations along the route, water tables will also be set up at each starting line.

Each aid station along the route will be equipped with first aid kits. Event staff will be instructed concerning the use of these first aid kits. In addition, select aid stations (Aid Stations D, G, & K) Redlands Regular Meeting of 10/01/24
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will be accompanied by medical aid stations. Medical aid stations will be staffed by trained medical personnel (EMT’s) from Prevent Medical Solutions who will be capable of assisting participants with serious issues and/or emergencies. Medical cots and extensive supplies will be on hand.

In case of extreme cold weather, participants will be supplied with gloves and heating blankets to be used at the starting venues and during the race if desired. If at any point a participant is incapable of continuing down the canyon, they may elect to be picked up by the rear sag wagon and escorted down the route.

See Exhibit A for aid station layout.

A large medical area will be established at the finish venue, adjacent to the finish line. This medical area , provided by Prevent Medical Solutions, will be set up the morning of th e race approximately 2hrs before the race starts and have the following staff: 1 Emergency Medicine Physician, 2 Emergency Nurses, 1 EMT Supervisor, and 3 Wellness Assistants (These staff do not have any medical licenses and are there to help runners walk to and from the medical area, hand out ice, etc. ) They will be equipped with all necessary medical supplies including emergency supplies. In addition, an ALS ambulance will be on hand at the finish venue and will have unrestricted access to outside roads if it becomes necessary to transport any participants.

Along the race course there will be 2 UTV’s staffed with medical personnel and EMT’s that will roam and be able to respond quickly to any potential issues. One will start at the Oak’s Restaurant in Angelous Oaks and watch the upper section of the course and the other will be at the intersection of Hwy 38 and Forest Falls Rd. taking care of anything further down. These UTV’s will be in communication with law enforcement through radio so that they can have better oversight over the course and be able to better respond to potential incidents that may occur. Once the last runners pass each of their locations they will fall in line and follow the runners down towards the finish line.

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Exhibit A

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Communications Plan

A command post will be established at the finish venue to ensure that pertinent race information can be shared at all times with race staff and local authorities. Brooksee invites any and all law enforcement and government agencies related to the event to station a staff member at the command post.

Race staff will be using cell phones for communication during the event. Every aid station along the course will be equipped with a communication device so that pertinent information may be relayed to command. A communications list will be printed and distributed to each staff member; this list will identify the communication person that will be stationed at each aid station as well as at those fulfilling other roles during the event.

All event-related EMS and law enforcement vehicles stationed along the route will be equipped with communication devices (radios or cell phones depending on their location).

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Mitigation of Impact

A direct mailer will be sent to all neighborhoods and businesses that will be affected by the race, but some individuals/businesses that are being reached out to separately are as follows:

Greyback Amphitheater
-Silvana Freidman

CODES School Outdoor Science
-Gabe Valencia, Chief Executive Officer

Angelus Oaks
-Randal Ridges

Forest Falls
-Tom McIntosh

Mountain Home Village Community Center

Dennis Mitchell
-AYSO Fields

Greenspot Farms

Sandals Church East Valley
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Race Day Schedule

Friday 11/15/2024
• 8:00 AM: Race staff begin to set up the finish venue. • 10:00 AM: Race staff begin drop-off of aid station supplies along the entire route. Portable restrooms begin to be delivered along the entire route.

SATURDAY 11/16/2024
• 2:00 AM: Traffic control will set up all necessary cones, barricades, and markers along the route.
• 3:00 AM: Participants begin to park at designated parking lots. • 3:15-4:30 AM: Participants load buses at parking lots and are transported to start lines. • 4:30-5:15 AM: Participants unload at staging areas and begin race preparation. • 6:00AM: Both races begin.
• 6:45 AM: Cleanup truck crews begin to move down the route, removing all aid station materials, course signage, and trash.

• 7:40 AM: First participants finish the race.
• 1 PM: Final participants finish race
• 1 PM: Finish venue cleanup begins.
• 2:00 PM: Cleanup truck crew finishes cleaning route.
• 5:00 PM: Staff leave the finish venue with all equipment.

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The REVEL Big Bear Marathon & Half will be held on Saturday, November 16, 2024. A portion of race proceeds will be donated to the local community. The marathon begins at the Greyback Amphitheater near Jenks Lake Rd and runs down Highway 38 to end near the Redlands Sports Park. The half marathon begins on Valley of the Falls Dr and also finishes near the Redlands Sports Park.

Be aware that runners will be on the roadway the morning of the race.

Use caution and be alert to help keep everyone safe. Also note that certain roads in your area will be impacted by adjusted traffic patterns during the race. The reverse side of this postcard outlines those adjusted traffic patterns.

Visit runrevel.com/rbb or email [email protected] for more information.

If you are interested in being a course marshal or volunteer for the race, please contact us at [email protected]
LOCAL

TRAFFIC
ALERT
Effective Saturday, Nov 16, 2024
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HALF MARATHON
START
Mentone / Redlands
Runners will make their way through town by running west on Highway 38 (Mentone Blvd), north on Opal Ave, and
then west on San Bernardino Ave. The race will finish on San Bernardino Ave south of the Redlands Sports Park.

Access across Highway 38 (Mentone Blvd) will be
possible, but there will be delays as officers hold traffic for runners. Mentone Blvd will have East and Westbound
lanes open for traffic with Crafton Ave as the main road to go North and South. San Bernardino Ave will be entirely closed for the event starting on Friday, November 1 5th at 8:00am between Wabash Ave and Dearborn St, and will
reopen at 5:00pm on Saturday, Nov 16th.

Highway 38 from Valley of the
Falls Dr to Mentone
Although Highway 38 will remain
open along this stretch, all vehicles will
be required to wait for a police escort
to proceed. CHP will be regulating the
flow of traffic using pilot cars, and
delays should be expected.

Valley of the Falls Dr.

Valley of the Falls Dr between Highway 38 and
Canyon Dr will be closed from 6:00am to
6:1 5am. East and Westbound traffic will resume
as usual at 6:1 5am.

Highway 38 from Jenks Lake Rd to Valley of the Falls Dr There will be a temporary closure of the SOUTHBOUND Lane of Highway 38 from Jenks Lake Road East to Valley of the Falls Drive from 5:30am to 9:30am.

THE NORTHBOUND LANE WILL BE UTILIZED FOR BOTH UPBOUND

AND DOWNBOUND TRAFFIC, FROM FOREST FALLS TO ANGELUS

OAKS, IN ALTERNATING DIRECTIONS, WITH THE ASSISTANCE OF PILOT CARS. Please do not travel up or down Highway 38 without a pilot car.

Please plan ahead for this closure in your travel plans. If you are entering Highway 38 to travel, please take extra time and be aware of runners on the road.

FINISH
Redlands

MARATHON
START
Forest Falls
Angelus Oaks
Bryant St
Jenks Lake Rd
Hwy 38
Hwy 38
At Redlands Sports Park
San Bernardino Ave
Colton Ave
Opal Ave
Crafton Ave
Garnet St
Mentone
Saturday, Nov 16, 2024
Local Residents of Angelus Oaks
and Forest Falls will be able to travel on
Hwy 38 via a pilot car. Please wait on
Hwy 38 to be directed by CHP and
Flaggers. *Travel via pilot cars will only
be for local residents.

N
S
EW
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INTERNAL REVENUE SERVICE
P. 0. BOX 2508
CINCINNATI, OH 45201
Date: F £ B l 7 2016

BROOKSEE FOUNDATION
11968 ITHICA DR
HIGHLAND, UT 84003-0000
Dear Applicant:

DEPARTMENT OF THE TREASURY
Employer Identification Number:

DLN:
26053442001956
contact Person:

CUSTOMER SERVICE
Contact Telephone Number:
(877) 829-5500
Accounting Period Ending:

December 31
Public Charity Status:
509 (a) (2)
ID# 31954
Form 990/990-EZ/990-N Required:

Yes
Effective Date of Exemption:

February 9, 2016
Contribution Deductibility:

Yes
Addendum Applies:

No
We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section SOl(c) (3). Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt status. Please keep it tor your records.
organizations exempt under IRC Section 501(c) (3) are further classified as either public charities or private foundations. We determined you're a public:
charity under the IRC Section listed at the top of this letter.

If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard). If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked.

If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral. part of this letter.

For important information about your responsibilities as a tax-exempt organization, go to www.irs.gov/charities. Enter "4221-PC 0 in the search bar to view Publication 4221-PC, Compliance Guide for 501(c) (3) Public Charities, which describes your recordkeeping, reporting 1 and disclosure requirements.

Letter 5436
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City Council Meeting I. 8.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the request to hold the Dog Jog event hosted by the Redlands Chamber of Commerce on October 20, 2024, within Ed Hales Park and the downtown area; authorize street closures related to the event; approve a request for in-kind support in the amount of $11,948 related to the event; and determine that the approval of the event is exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act; (Facilities and Community Services Director Crocker)
MOTION(S):

If the City Council determines that the staff's recommendations are appropriate, the following motions are provided:

I move that the City Council determine that the approval of the event is exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act; and

1. I move to authorize the expenditure of city resources, in-kind support in the amount of $11,948.00, and the temporary street closure related to this event.

2. RECOMMENDATION:

Staff recommends that the City Council authorize the request for in-kind support in the amount of $11,948, and approve the temporary street closure of a portion of E. State Street, 5th Street, and a portion of Eureka Street; and determine that the approval of the event is exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act. All public parking lots on 5th Street and Eureka Street will be accessible throughout the event.

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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 support programs that provide a community benefit, the City Council will, from time to time, consider the authorization of in-kind support including the use of city equipment, staff, and facilities for special events.

The Chamber of Commerce is requesting in-kind support including Police Personnel, Facilities and Community Services Personnel and equipment, and the waiving of fees associated with reservations for Ed Hales and Smiley Parks.

The estimated total of this support is $11,948 . The Redlands Chamber of Commerce is a non-profit organization operating out of the City of Redlands.

According to the submitted application, the event registration and sponsorships will generate revenue for the Redlands Chamber of Commerce and grant the Chamber more opportunities to offer services to businesses and the local community, and raise funds for the NYE Orange Drop.

In addition, part of the proceeds will be donated to the Redlands Animal Shelter to continue and enhance operations. This event shows off the community by taking the attendees through historic Downtown and neighborhoods in the area.

It brings people in from all over the Inland Empire and ends at a time and location that encourages people to shop, eat, and relax at local shops. The proposed event is expected to draw 600 attendees to the downtown area where attendees will patronize local businesses and restaurants.

The Dog Jog commences on E. State Street at Ed Hales Park and continues along the route to the finish line and event destination at Eureka Street, on the east side of the Redlands Bowl. The Chamber of Commerce is requesting the temporary closure of E. State Street from Orange Street to 7th Street; 5th Street from the Ed Hales Park parking lot driveway to the Orange Street Alley; Eureka Street from the Joslyn Senior Center Parking Lot to the Contemporary Club Parking Lot. All parking lot driveways will remain accessible throughout the event. Redlands Police Department will have officers along the route to hold vehicular traffic, as needed, as part of the rolling closure. The closure on E.

State Street and 5th Street will only remain in place until 11:00 a.m. on the day of the event.

The event is exempt from the requirements of the California Environmental Quality Act's guidelines pursuant to Section 15311(c). Section 15311(c), accessory structures Class 11 facilities, consists of construction, or replacement of minor structure accessory to existing commercial, industrial, or institutional Redlands Regular Meeting of 10/01/24
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of minor structure accessory to existing commercial, industrial, or institutional facilities, including placement of seasonal or temporary use items such as mobile food units, portable restrooms or similar items in generally the same locations from time to time in publicly owned parks or other facilities designed for public use.

ALTERNATIVES:

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

STRATEGIC PLAN:

Priority A - Quality of Life, Strategic Objective 1. Beautification, Arts and Culture.

SUBMITTED BY:

Tabitha Crocker, Facilities and Community Services Department Director

RECOMMENDED BY:

Charles M. Duggan Jr., City Manager

REVIEWED BY:

Janice McConnell, Assistant City Manager
Christopher Boatman, Assistant City Manager
Danielle Garcia, Management Services/Finance Director

PREPARED BY:

Jaclyn Ramirez, Administrative Assistant II
Fiscal Impact
Fiscal Year: FY 2024/25
Revenue Generating: No
Appropriation Required Y/N: N
Budgeted Y/N: N
Discussion:

Please see "Fiscal Impact" attachment for reference.

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Attachments
Verification of Non-Profit
Special Event Packet
In-Kind Support Request
Street Closure Form
Street Closure Map- Eureka
Street Closure Map- Downtown
Event Map
Event Flyer
Fiscal Impact
Certificate of Insurance
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City of Redlands
In-Kind Support Request
Event Name: J Redlands Chamber Dog Jog
Event Date(s): J 10/20/2024 Location(s): I Ed Hales Park, Event Route, Smiley Park Rain Out Date: J._N_/_A _____ � Beginning Time:J '---9_A_M ____ ___, End Time: l._1_P_M ___ __, Describe Your Request:

This completed form with all supporting docu­
mentation shall be submitted a minimum of 60
days prior to the scheduled event. Additional
information may be attached to this application
form, as needed.

We are request access to electricity/outlets at Ed Hales Park. Trash cans to be set up and picked up throughout the route to avoid littering. Hard barricades on 5th and State, and on Eureka between Brookside and Olive. Also a rolling barricade as participants pass through the race. A PD approved route will also be attached to this application.

Select and Describe All City Provided Services That May Apply to Your Request:

Ii] Traffic (Personnel, equipment, cones, barrica des, no-parking J per so nn el, ba rr icad es, no -parking Ii] Police (Public Safety Personnel) J._P
_
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_
b
_
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ic_S
_
a_f
_
e
_
ty_P
_
e_rs
_
o_ n
_
n
_
e_l _______________ ....,
Iii Fire (Paramedics, I nspectors) I On-site fi rst-aid if nec essary Iii Parks (Cleanup Personnel, Ball Field Lights) �, G-a-rb_a_g _e_s_e _
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_
p-ic_ k_u_p _t_h _ro_u_g_ h_ o_u_ t_ r_o_u _te---�
D Facility
Refuse/Recycling (Event Receptacles, Roll-Off Service) acquired by Event Organizers through Redlands Customer Service Section 13. 65 of the Redlands Municipal Code requires that events that serve more than 2,000 individuals per day will be required to submit for review and approval a Large Venue Recycling Plan. The Quality of Life Department may require smaller ev ents to comply with Ci
t
y recycling practices as a condition of wa iving fees.

D Other
Group/Organization Name: I Redlands Chamber of Commerce Is your Group/Organization
a Registered Non-Profit:

Does your Group/Organization
Presently Have Liability Insurance?
Ii] Yes
□ No
Ii] Yes
□ No
Non-Profit Federal Tax ID Number: J
Please be advised that depending upon your request, you may be required to provide proof of insurance coverage in an amount determined by the City and naming the City as an additional insured.

Has your Group/Organization received fee I Yeswaivers from the City in the past? '------------------------------' Primary Contact Name & Title: J Evan Sanford, Executive Director Mailing Address: J47 N. First St., Redlands, CA 92373
Phone Number: 1909-793-2546
Updated 6/2021
E-Mail Address: I [email protected] I
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3 6 5
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Dog Jog Eureka Street Closure

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Dog Jog State/5th Street Closure

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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 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.

Departmental Charges
(Personnel & Equipment)
2024/2025
Amount Type 2023/2024
Amount
Police Personnel1 $9,060.00 Hard Cost $6,440.00
Fire Personnel1 $0.00 Hard Cost $0.00
Facilities & Community Services Personnel1 $2,888.00 Hard Cost $0.00 Personnel & Equipment Subtotal $11,948.00 $6,440.00
Fees Established by City Council
Resolution

Park Reservation $0.00 Soft Cost $1,688.00
FCS Equipment $0.00 Soft Cost $0.00
Fire Equipment $0.00 Soft Cost $0.00
Fees Subtotal $0.00 $1,688.00
Total Departmental Charges and Fees $11,948.00 $8,128.00

$9,060.00
$2,888.00
$11,948.00
$6,440.00
$1,688.00
$8,128.00
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 the use of City resources and waiver of fees approved for events scheduled during Fiscal Year 2022-23 to date:

TABLE 2: FY 2024-25 Fee Waivers to date
Hard Costs Soft Costs Deposits
Refunded
Waiver
Amount
Net
Amount
$91,423.50 $5,466.70 $0.00 $96,890.20 $96,890.20

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City Council Meeting I. 9.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the sole source purchase order for the purchase of five (5) Blue Series Cabinets Part CAB18036 and three (3) Blue Series Cabinets Part STCAB3575-77 from Econolite for an amount not to exceed $124,966.96 (Facilities and Community Services Director Crocker)
MOTION(S):

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

I move to approve the purchase of five (5) Blue Series Cabinets Part CAB18036 and three (3) Blue Series Cabinets Part STCAB3575-77 from Econolite for an amount not to exceed $124,966.96.

RECOMMENDATION:

Staff recommends that the City Council approve a sole source purchase order for the purchase of five (5) Blue Series Cabinets Part CAB18036 and three (3) Blue Series Cabinets Part STCAB3575-77 from Econolite for an amount not to exceed $124,966.96.

DISCUSSION:

The City of Redlands is proactively addressing the aging components of its traffic signal infrastructure, which includes maintaining 74 traffic signals and numerous illuminated crosswalks. Many of the City's video detection systems have surpassed their expected lifespans, making replacement parts difficult to source. To ensure continued reliability, the Facilities and Community Services Department (FCS) and the Municipal Utilities and Engineering Department (MUED) have collaborated to standardize signal specifications. Iteris, Inc. was identified as the industry leader in video detection systems, due to the specialized nature of this equipment and lack of alternatives. Thus, staff Redlands Regular Meeting of 10/01/24
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specialized nature of this equipment and lack of alternatives. Thus, staff recommends a Sole Source procurement for these critical upgrades.

Additionally, approximately 50% of the city’s traffic signal cabinets that house essential control equipment are beyond their recommended 20-year lifespan, with some over 30 years old. In response, the City Council allocated $125,000 of the FY 24-25 budget to replace these cabinets. These cabinets will be installed in partnership with Yunex, the City’s maintenance company, with a target completion date by the end of the fiscal year. These upgrades are crucial investments in maintaining the safety and efficiency of the city’s traffic management systems.

ALTERNATIVES:

City Council may elect not to approve the sole source purchase order and direct staff accordingly.

STRATEGIC PLAN:

Supports Strategic Plan Priority B - Public Health and Safety SUBMITTED BY:

Tabitha Crocker, Facilities and Community Services Department Director RECOMMENDED BY:

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

Janice McConnell, Assistant City Manager
Christopher Boatman, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Dana Abramovitz-Daniel, Procurement Manager
PREPARED BY:

Salomon Abdel-Aziz, Management Analyst
Fiscal Impact
Fiscal Year: FY 2024-25
Revenue Generating: No
Appropriation Required Y/N: N
Amount: $124,966.96
Budgeted Y/N: Y
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Account No.: 101302-8706
Discussion:

Sufficient funding for this service is included in the Street and Electrical Division budget (101302) for Fiscal Year 2024-2025 as approved by City Council.

Attachments
Sole Source Letter
Sole Source Vendor Quote
Econolite Sole Source
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To: City of Redlands
From: Corey Kelly
Date: 7-31-24
Re: Sole Source

To whom it may concern,

This letter is to verify that Econolite located at 1250 N. Tustin Ave., Anaheim, California 92807 is the sole developer, provider or manufacturer of any and all, “Econolite” and “Safetran” products in the state of California.

This would include:

1. Plug-N-Go Cabinets and Hardwire: TS1 and TS2

2. Controllers: Cobalt® and Safetran 2070®. This also includes any products or licensing that would be associated with Econolite proprietary products. Example: ASC3® or EOS® software upgrades can only be purchased through Econolite as the software is developed, registered, and licensed for use only by Econolite.

3. System software: Centracs®, Centracs MOE®, Centracs SPM®. Example: Centracs® software upgrades can only be purchased through Econolite as the software is developed, registered, and licensed for use only by Econolite.

4. Autoscope® video detection: ENCORE®, Rack Vision Terra® and Vision® are registered trademarks of Image Sensing Systems. Econolite is the sole distributor of Autoscope® products in the United States.

5. Econolite Blue Series Cabinets.

6. In-ground wireless detection: Econolite-branded AccuSense® sensors, peripherals, and software.

7. Econolite Signals and Display Products

8. Econolite branded BIU’s, Load Switches, Power Supplies, Zinc Blue UPS and any other products with the Econolite® name.

9. Econolite EVO Radar Detection.

If you have any questions concerning this matter, please contact me at (714) 273-4912.

We appreciate the opportunity for your business!

Thank You,

Corey Kelly
Econolite

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Quotation
1250 N. Tustin Ave. Anaheim, Ca. 92807
econolite.com/feedback

7/30/2024
To:

Item # Part Qty Description Tariff Price per Extended
1 CAB18036

5 BLUE SERIES, TS2-1 PNG P44 BM 16

HORIZ CAB BLUE SERIES IN/OUT-
BARE ALSO INCLUDES:

PLUG-IN’S LINE ITEMS 2-7 PER

CABINET
$49.23 $14,385.50 $71,927.50
2 44623P5

1 FLASHER, 2 CKT 15A SOLID STATE
W/INDICATORS, EDI 810

3 31095G20

16 LOAD SWITCH W/INPUT IND, SSR
MODEL 200, PDC SSS-86-3

4 0767104805

6 FLASH TRANSFER RELAY COIL

VOLTAGE LED STRUTHERS-DUNN

5 1133-141

1 MMU2-16LEip-E W/ETHERNET

PORT BLUE ECPI FACEPLATE

6 1084-046

1 PWR SUPPLY, 5 AMP EDI PS-250-E
120VAC

7 44665G55

8 DET, 2 CH, SS OUTPUT, RACK MT
EDI LM622-E

8 STCAB3575-77

3 BLUE SERIES, 332L SILVER CAB ASSY
CALTRANS, W/RM16 ALSO
INCLUDES:

PLUG-IN’S LINE ITEMS 9-14 PER

CABINET
$33.96 $14,221.54 $42,664.62
9 0724500290

2 FLASHER, SOLID STATE, 204, PDC
SSF-88

10 0767104800

4 FLASH XFR RELAY STRUTHERS-
DUNN 21/136 SERIES

11 0712010610

1 2010ECL-SF CMU 16 CHANNEL EIA-
232 PORT

12 0754100270

12 LOAD SWITCH, SOLID STATE TRI-
PACK, PDC SSS-88

13 0744500010 2 D.C. ISOLATOR, 242, PDC DCI-82
Mike Foster
Redlands, CA; City of

Quote Name: Blue Series Cabinets Quote - 332L
and P44
Project Reference:

Econolite Reference: Q-46177-3455
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Quotation
1250 N. Tustin Ave. Anaheim, Ca. 92807
econolite.com/feedback

14 0756700010

16 DETECTOR, EDI LM222-SF

Unless specifically requested or noted on this quotation, the product(s) quoted herein may or may not comply with any Buy America requirements.

Cabinet designs are considered final at time of order. Changes requested after date of order may result in additional fees and extended shipping lead times.

The information transmitted is intended only for the person or entity to which it is addressed and may contain confidential and/or legally privileged material. Any review, retransmission, dissemination, or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited except as required by law.

Quote Valid For Days: 60
FOB: Econolite Factory
Terms: NET30
*Ship Terms: PPD
**Taxes and Tariffs Estimated (if included)

Corey Kelly
Corey Kelly, Account Manager, Senior
Mobile: 714-273-4912
[email protected]

Shipping Date: To be determined at time of receipt of order Subtotal $114,592.12
Shipping & Handling*
Taxes** $10,026.81
Tariffs** $348.03
TOTAL $124,966.96
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City Council Meeting I. 10.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the request for the temporary closure of a portion of West Pioneer Ave from Texas Street to Tennessee Street for the Citrus Valley Band Tournament event for Saturday, October 12, 2024, from 1:00 p.m. to 11:00 p.m, authorize the expenditure of city resources and in-kind support in the amount of $2,700 related to this event; and determine that this event is categorically exempt from guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker) MOTION(S):

If the City Council determines that staff’s recommendations are appropriate, the following motions are provided:

I move that the City Council determine that the approval of the event is exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act; and

1. I move to authorize the expenditure of city resources, in-kind support in the amount of $2,700, and the temporary street closure of West Pioneer Avenue related to this event.

2. RECOMMENDATION:

Staff recommends that the City Council authorize the request for in-kind support in the amount of $2,700, and approve the temporary street closures related to the event.

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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 support programs that provide a community benefit, the City Council will, from time to time, consider the authorization of in-kind support including the use of city equipment, staff, and facilities for special events.

The Citrus Valley High School Music Boosters (CVHS) are requesting approval to hold the Citrus Valley Band Tournament event on Saturday, October 12, 2024. This request requires City Council approval due to the need for a temporary street closure, to manage traffic flow and ensure the safety of both event participants and pedestrians, along West Pioneer Avenue between Texas Street and Tennessee Street from 1:00 p.m. to 11:00 p.m. A soft closure will be placed at the east side of the Tennessee Street and West Pioneer Avenue intersection, to allow CVHS parking lot access for attendees and participants.

Hard closures will be placed on the west side of the West Pioneer Avenue and Texas Street intersection and the east side of the CVHS parking lot driveway, on West Pioneer Ave. Additionally, Citrus Valley High School Music Boosters are seeking in-kind support, including personnel and equipment from the Facilities and Community Services Department, with an estimated value of $2,700.00.

Additionally, this event is exempt from the requirements of the California Environmental Quality Act’s guidelines pursuant to Section 15311(c). Section 15311(c), accessory structures Class 11 facilities, consists of construction, or replacement of minor structure accessory to existing commercial, industrial, or institutional facilities, including placement of seasonal or temporary use items such as mobile food units, portable restrooms or similar items in generally the same locations from time to time in publicly owned parks or other facilities designed for public use.

ALTERNATIVES:

The City Council may elect to deny the in-kind service request, deny the temporary street closure request and direct staff accordingly.

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STRATEGIC PLAN:

Priority A - Quality of Life - Beautification, Arts and Culture.

SUBMITTED BY:

Tabitha Crocker, Facilities and Community Services Department Director

RECOMMENDED BY:

Charles M. Duggan Jr., City Manager

REVIEWED BY:

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

Jaclyn Ramirez, Administrative Assistant II
Fiscal Impact
Fiscal Year: FY 2024/25
Revenue Generating: No
Appropriation Required Y/N: N
Amount: $2,700.00
Budgeted Y/N: N
Discussion:

Please see the "Fiscal Impact" attachment for reference.

Attachments
In-Kind Request
Event Map
Verification of Non-Profit
Street Closure
Fiscal Impact
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CVHS Marching Band Street Closure

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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 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.

Departmental Charges
(Personnel & Equipment)
2024-2025
Amount Type 2023-2024
Amount
Police Personnel1 $0.00 Hard Cost $0.00
Fire Personnel1 $0.00 Hard Cost $0.00
Facilities & Community Services Personnel1 $0.00 Hard Cost $0.00 Personnel & Equipment Subtotal $2,700.00
$0.00
Fees Established by City Council
Resolution
Park Reservation $0.00 Soft Cost $0.00
FCS Equipment $0.00 Soft Cost $0.00
Fire Equipment $0.00 Soft Cost $0.00
Fees Subtotal $0.00 $0.00
Total Departmental Charges and Fees $0.00 $0.00
$2,700.00
$0.00
$2,700.00
Hard Cost
Soft Cost
Total
$0.00
$0.00
$0.00
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 the use of City resources and waiver of fees approved for events scheduled during Fiscal Year 2024-25 to date:

TABLE 2: FY 2024-25 Fee Waivers to date
Hard Costs Soft Costs Deposits
Refunded
Waiver
Amount
Net
Amount
$109,798.80 $5,677.70 $0.00 $115,476.50 $115,476.50
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City Council Meeting I. 11.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Approve a license agreement with Dawg Social LLC to operate a hot dog cart located at City Hall, 35 Cajon Street, and determine that approval of the agreement is exempt from environmental review pursuant to Section 15301 of the State's guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker)
MOTION(S):

If the City Council determines that staff’s recommendations are appropriate, the following motions are provided:

I move to determine that approval of a License Agreement with Dawg Social LLC is exempt from environmental review pursuant to Section 15301 of the California Environmental Quality Act Guidelines; and

1. I move to approve a License Agreement with Dawg Social LLC to operate a hot dog cart at City Hall, 35 Cajon Street.

2. RECOMMENDATION:

Staff recommends that the City Council approve the License Agreement with Dawg Social LLC to operate a hot dog cart for an outdoor dining area located at City Hall, 35 Cajon Street, and determine that approval of the project is categorically exempt from further environmental review pursuant to Section 15301 of the California Environmental Quality Act Guidelines.

DISCUSSION:

The City of Redlands City Hall complex located at 35 Cajon Street includes the administrative offices of the City. It provides residents with a place to pay city utility bills as well as procure permits from Engineering, Planning, and Building & Safety. It is also the site of City Council meetings and a public parking lot, Redlands Regular Meeting of 10/01/24
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providing free parking when visiting the downtown area.

Dawg Social, LLC (Dawg Social) proposes operating a food cart serving hot dogs at the City Hall complex. The cart will provide a traditional hot dog cart experience by serving locally sourced hot dogs. The business also donates a percentage of sales from the cart to local dog shelters. Last year, Dawg Social donated approximately $4,400 to the Redlands Animal Services during the first 9 months of the City's previous license agreement. The proposal is to enter into a new License Agreement for a two (2) year term to permit the use of City Hall grounds to operate a hot dog cart. Per the License Agreement, Dawg Social will maintain this area and ensure compliance with the License Agreement and all applicable laws, including all County Health requirements. The License Agreement requires a monthly rent of $250.00.

Staff recommends that the License Agreement is categorically exempt from the requirements of the California Environmental Quality Act guidelines pursuant to Section 15301. This section pertains to existing facilities and applies when there is no resulting expansion of use. The approval of the agreement is consistent with this exemption as it is within a developed portion of South 5th Street and will primarily service existing customers coming to Downtown Redlands.

ALTERNATIVES:

The City Council may decline the approval of the License Agreement or provide alternative direction to staff.

STRATEGIC PLAN:

Not Applicable
SUBMITTED BY:

Tabitha Crocker, Facilities and Community Services Department Director Crocker
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:

Joe Bierma, Administrative Analyst
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Fiscal Impact
Fiscal Year: 2024-2026
Revenue Generating: Yes
Amount: $6,000.00
Account No.: 101303
Discussion:

The License Agreement with Randy Nordgren will provide $3,000.00 annually, over a two-year period, for a total of $6,000 which will be deposited into the General Fund.

Attachments
Agreement
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1 I:\cmo\Agreements\Dawg Social LLC License Agreement - City Hall Complex FY24-0028.docx-ms

LICENSE AGREEMENT BY AND BETWEEN

THE CITY OF REDLANDS AND DAWG SOCIAL LLC

This License Agreement (“License”) is made and entered this 1st day of October, 2024 (“Effective Date”), by and between the City of Redlands, a municipal corporation and general law city (“City”), and Dawg Social LLC, a California limited liability company (“Licensee”). City and Licensee are sometimes individually referred to herein as a “Party” and, together, as the “Parties.”

RECITALS

WHEREAS, Licensee is the owner and operator of a food cart in the City of Redlands; and

WHEREAS, City is the owner in fee simple of the City Hall Complex located at 35 Cajon St., Redlands, CA 92373 (the “Property”); and

WHEREAS, Licensee desires to provide its customers with an outdoor dining venue on a portion of the City Hall Complex property; and

WHEREAS, City and Licensee desire to enter into this new License to set forth terms and conditions under which City will license a portion of the Property to Licensee; and

WHEREAS, City and Licensee desire to cooperate to further the above-stated purpose in a way compatible with the public interest.

NOW, THEREFORE, in consideration of the mutual promises contained herein, City and Licensee agree as follows:

AGREEMENT

Section 1. Premises. City hereby grants to Licensee a license (the “License”) to provide outdoor dining services within a portion of the Property in connection with the operation of Licensee’s food cart at the City Hall Complex . The outdoor dining area subject to this License consists of approximately one hundred (100) square feet and is more particularly described in Exhibit “A,” (the “Premises”), which is attached hereto and incorporated herein by this reference.

Section 2. Acknowledgment of License and Disclaimer of Tenancy.

A. Licensee acknowledges and agrees that City is the owner of Premises and that nothing in this License grants to Licensee any rights, title, or interest in the Premises, except for the revocable, non-exclusive right to use the Premises as provided in this License. Licensee is not a tenant or lessee of City and holds no rights of tenancy or leasehold in relation to the Premises.

B. In consideration of City’s grant of this License, Licensee specifically and expressly waives, releases, and relinquishes any and all rights to assert any claim of right, privilege, or interest in the Premises other than the rights expressly granted by this License.

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2 I:\cmo\Agreements\Dawg Social LLC License Agreement - City Hall Complex FY24-0028.docx-ms C. The consideration paid by Licensee pursuant to Section 4 of this License is consistent with the value of the rights comprising the License privilege and does not refl ect the higher market value for a greater right, privilege, or interest (such as a lease) in the Premises.

D. Licensee further acknowledges and agrees that without the representations and agreements set forth herein, City would not enter into this License.

Section 3. Term. The term of this License shall commence on October 1, 2024, and end on October 1, 2026, unless earlier terminated as provided for herein. Either Party may terminate this License by providing written notice of such termination to the other Party at least thirty (30) days prior to the notice termination date. Upon termination or expiration of this License, and upon request of City, Licensee shall remove, as requested by City, any improvements, fixtures, equipment, and other personal proper ty placed upon the Premises by Licensee. The cost and expense of such removal, together with the repair of any damage, occasioned thereby, will be borne solely by the Licensee. If Licensee remains in possession of the Premises after expiration or earlier termination of this License without City’s written consent, Licensee shall pay an increased License fee during the holdover period in the sum of four hundred dollars ($400) per month.

Section 4. License Fee. Licensee shall pay to City a monthly fee in the sum of two hundred dollars ($250.00) for use and occupancy of the Premises. The initial monthly fee payment shall be paid to City prior to October 15, 2024. All subsequent monthly fee payments shall be made prior to the second day of each month for which the fee is then due. All payments are to be made payable to the City of Redlands, Finance Department/Revenue Division, P.O. Box 3005, Redlands, California, 92373. A late fee of fifty dollars ($50) shall be added and due for any fee payment made after the tenth day of the month.

Section 5. Security Deposit. The security deposit presently held by City in the amount of one thousand dollars ($1,000) shall be retained by City to secure compliance with the terms and conditions of this License, and shall be refunded to Licensee within thirty (30) days after the Premises have been vacated by Licensee, less any amounts reasonably necessary to pay City for, (i) cleaning costs, (ii) cost for repair or damages to the Premises exclusive of ordinary wear and tear, and (iii) any other amount legally allowable under the provisions of this License. A written accounting of said costs and damages shall be presented to Lic ensee within ten (10) days of the Premises being vacated. If the security deposit is insufficient to pay City for such costs and damages, Licensee shall immediately pay any additional costs for damages demanded by City.

Section 6. Use of Premises.

A. Use of the premises shall be non-exclusive, as the seating in the area is used and enjoyed by all patrons of the downtown area.

B. Licensee shall use the Premises solely for the purpose of outdoor dining associated with Licensee’s operation of its food cart and for no other uses.

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C. During the term of this License, City shall retain the right to cause the closure of the Premises for up to three (3) events per calendar year, with ninety (90) days prior written notice given to the Licensee of each such event.

D. The hours of operation for the Premises shall be limited to 10:00 a.m. to 10:00 p.m., Monday through Sunday.

E. Licensee’s use of the Premises shall not jeopardize or endanger the health, welfare, peace, or safety of persons visiting, residing, working, or conducting business in the surrounding area.

G. Licensee shall obtain a city business license and all necessary permits for its operations, including but not limited to a permit from the San Bernardino County Department of Environmental Health Services as may be required for food preparation and sales.

H. Licensee shall designate an attendee to monitor the Premises between 10:00 a.m. and 10:00 p.m. to ensure security and maintenance of the Premises in accordance with this License.

I. Licensee’s operation of the Premises shall not result in nuisance activities within the Premises or in close proximity of the Premises, including but not limited to disturbance of the peace, illegal drug activity, public drunkenness, drinking in public, harassment of passersby, gambling, prostitution, sale of stolen goods, public urination, theft, assaults, batteries, acts of vandalism, littering, loitering, graffiti, illegal parking, excessive loud noises especially in the late night or early morning hours, traffic violations, curfew violations, lewd c onduct, or police detentions and arrests.

J. Licensee shall ensure that the Premises’ upkeep and operating characteristics are compatible with, and will not adversely affect, the livability or appropriate development of abutting properties and the surrounding neighborhood.

K. Licensee hereby grants City immediate access to the Premises in the event of an emergency; which is defined as any incident that threaten loss of life or property, interruptions of public utilities, disaster, war, acts of terrorism, strikes or similar emergencies.

Section 7. As-Is Condition. Licensee accepts the Premises in its “as -is” condition as of the Effective Date of this License, without any warranty, express or implied.

Section 8. Maintenance of Premises . Licensee shall be responsible for maintaining the Premises in a clean and orderly state. Any damage to the Premises incurred due to Licensee’s use of the Premises shall be the sole responsibility of Licensee. City shall have the right to enter the Premises, at reasonable times, for inspection and maintenance purposes. Should an inspection by the City disclose the need for maintenance or repairs, City shall provide Licensee with written notice of the items requiring repair or maintenance. If action is not taken on such items by Licensee within five (5) days from the provision of such notice, City may enter the Premises and take whatever action is necessary to perform such maintenance or repairs at Licensee’s expense.

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Section 9. Improvements. Licensee shall not construct any fencing or improvements to the Premises without the prior written consent of City. All proposals for improvements to the Premises shall be submitted in writing to City for its consideration and prior written approval.

Licensee shall have the right to remove all improvements made to the Premises by Licensee, provided such removal results in no damage to the Premises. Improvements not removed by Licensee shall, on expiration or earlier termination o f this License, become the property of City.

Lighting may be incorporated in such a way to prevent glare onto or direct illumination of any adjacent properties. Licensee shall cause the improvements to be constructed, rehabilitated or installed in complian ce with applicable laws, including federal, state, and local laws and regulations.

Section 10. Indemnity. Licensee shall defend, indemnify and hold harmless City, and its elected officials, officers, employees and agents, from and against any and all claims, causes of action, damages and liability resulting from Licensee’s negligent acts or omissions, and willful misconduct of Licensee, and its contractors, agents, employees, guests, and invitees arising from Licensee’s occupation and use of the Premises or the improvements or equipment thereon, during the term of this License. This section shall survive any termination of this License.

Section 11. Public Liability and Property Damage Insurance; Worker’s Compensation Insurance. Licensee shall maintain at its own cost for the term of this License, public liability and property damage insurance in the amount of one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) in the aggregate, issued by an insu rance company acceptable to City. Licensee shall provide City with a certificate of insurance and endorsements showing City as an additional insured on the policy prior to Licensee’s use and occupancy of the Premises. Such insurance shall be primary with respect to City and non -contributory to any insurance or self - insurance maintained by City. The policy shall require that, before amending or canceling the policy, the issuing insurance company shall give City at least thirty (30) days prior written notice.

City and Licensee acknowledge and agree that the insurance required of Licensee is subject to annual review by City and subject to increases in the amount and scope of coverage, as reasonably determined by City.

Licensee shall procure and maintain Worker’s Compensation Insurance in such amount as will fully comply with the laws of the State of California, and which shall indemnify, insure and provide legal defense for both Licensee and City against any loss, claim, or damage arising from injuries or occupational diseases happening to any worker employed by Licensee in, at or about the Premises.

Section 12. Assignment Prohibited . Licensee shall not encumber, assign, sublease, or otherwise transfer this License, or any right or interest therein, without the prior written consent of City. Any such encumbrance, assignment, sublease, or transfer without such prior consent and approval of City shall constitute a br each of this License and may, at the sole discretion of City, result in the immediate termination of this License.

Section 13. Attorneys’ Fees. In the event any action is commenced to enforce or interpret the terms or conditions of this License, the prevailing Party shall, in addition to any costs Redlands Regular Meeting of 10/01/24
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5 I:\cmo\Agreements\Dawg Social LLC License Agreement - City Hall Complex FY24-0028.docx-ms and other relief, be entitled to the recovery of its reasonable attorneys’ fees, including fees for use of in-house counsel by a Party.

Section 14. Notices. Any notice or other communication required, or which may be given, pursuant to this License, shall be in writing. Any such notice shall be deemed delivered (i) on the day of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile or electronic email transmission (including PDF), if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate ad dress set forth below, or such other address as a party may provide notice of in accordance with this section:

CITY: LICENSEE:

City Clerk Randy Nordgren, President
City of Redlands Dawg Social, LLC
35 Cajon Street 1413 Padua Avenue
P.O. Box 3005 (mailing) Redlands, CA 92374
Redlands, CA 92373 [email protected]
[email protected] 949-350-4248
(909) 798-7531

Section 15. Entire Agreement/Amendment. This License constitutes the entire agreement between the Parties with respect to the subject matter hereof. Any prior verbal or written representations or agreements respecting the Premises not expressly set forth herein are null and void. Any and all amendments to this License shall be in writing and executed by the Parties.

Section 16. Termination. City shall have the right to terminate this License, with or without cause, upon thirty (30) days prior written notice to Licensee. City shall have no liability for any claims or damages resulting to Licensee as a result of any exercise by City of its ri ght to terminate this License. This License may be terminated at the discretion of City should Licensee fail to fulfill its requirements as specified herein.

Section 17. Hazardous Materials. Licensee agrees that it will not allow or permit the use, storage, disposal or release on or about the Property, the Premises, or other improvements thereon of any Hazardous Materials by its officers, agents, contractors, employees, guest or invitees. A s used herein, “Hazardous Materials” means any flammable explosives, radioactive materials, asbestos, PCB’s, hazardous waste, toxic substances or any other “hazardous substances”, “hazardous materials” or “toxic substanc es” as defined in any present or future federal, state or local law applicable to the Property, the Premises or the improvements thereon, and the rules and regulations adopted or promulgated under or pursuant to the foregoing laws.

Section 18. Breach and Default by Licensee.

A. All covenants and agreements contained in this License are declared to be conditions of this License, and to the term for which the Premises are licensed to Licensee.

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6 I:\cmo\Agreements\Dawg Social LLC License Agreement - City Hall Complex FY24-0028.docx-ms B. Should Licensee fail to perform or comply with any covenant, condition or agreement contained in this License (a “Default”), which by its nature is reasonably and practically subject to cure, and the Default is not cured within fifteen (15) days after written notice of the Default is served on Licensee by City, then Licensee shall be in breach of this License.

C. If the default is one which the Parties determine requires more than fifteen (15) days to cure, Licensee commence action to cure within such fifteen (15) days and prosecute such cure diligently until completion within a reasonable time. Licensee’s failure to complete such cure within a reasonable time shall also constitute a default by Licensee.

D. The Parties acknowledge and agree that Licensee’s failure to perform or comply with any covenant, condition, or agreement in this License may be of such a one-time nature that such a Default is not subject to cure (e.g. Licensee’s failure on a given day to abide by the hours of operation permitted by this License) (a “One -Time Default”). In such an event, City shall provide written notice to Licensee within five (5) business days of City’s knowledge and determination of the occurrence of a One-Time Default. City’s provision to Licensee of three such One-Time Default notices during the term of this License for Licensee’s failure to perform or comply with the same (or similar) covenant, condition or agreement contained in this License shall constitute a breach by Licensee of this License.

Section 19. Amendment; Waiver. No term or provision of this License may be amended, altered, modified, or waived orally or by course of conduct, but only by an instrument in writing signed by a duly authorized officer or representative of each Party. No waiver by either Party of any provision of this License, or waiver of any breach of this License, shall be deemed to be a waiver of any other provision of this License, or of any subsequent breach by either Party of the same or any other provision of this License.

Section 20. Governing Law; Venue. This License is to be governed by and construed in accordance with the laws of the State of California, without regard to the principles of conflicts of laws. Any action by a party to this Agreement to enforce or interpret the terms hereof shall be maintained in the courts in San Bernardino County.

Section 21. Attorneys’ Fees. If either Party to this License brings an action to enforce the terms hereof or declare rights hereunder, the prevailing party in such action, on trial or appeal, shall be entitled to reasonable attorneys’ fees to be paid by the non-prevailing party as fixed by the court.

Section. 22. Counterparts. This License Agreement may be executed in counterparts, each of which is an original but all of which together constitute but one and the same instrument.

Section 23. Severability. If any particular provision of this License is held invalid or unenforceable for any reason by a court of competent jurisdiction, this License shall otherwise remain in full force and effect and shall be construed in all respects as if such invalid or unenforceable provision was omitted.

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7 I:\cmo\Agreements\Dawg Social LLC License Agreement - City Hall Complex FY24-0028.docx-ms Executed on the 1st day of October, 2024, at Redlands, California

CITY OF REDLANDS DAWG SOCIAL, LLC

Eddie Tejeda, Mayor Randy Nordgren, President

ATTEST:

Jeanne Donaldson, City Clerk
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8 I:\cmo\Agreements\Dawg Social LLC License Agreement - City Hall Complex FY24-0028.docx-ms EXHIBIT “A”

City Hall
Orange Area – Licensed Space for Cart Placement (100ft2) Green Area – Community Dining Area

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City Council Meeting J. 1.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Discussion and possible action relating to the cancelation of the November 5, 2024, and the January 7, 2025, regular meetings of the City Council (Mayor Tejeda)

MOTION:

I move to approve the cancelation of the November 5, 2024, and the January 7, 2025 regular meetings of the City Council.

RECOMMENDATION:

To allow staff and Council to attend the election and cast votes, with City Council concurrence, I recommend the cancelation of the November 5, 2024, regular meeting of the City Council. And in light of the December holiday closure, I recommend the cancelation of the January 7, 2025, City Council meeting. The next regular meetings will be held on November 19, 2024, and January 21, 2025, respectively.

SUBMITTED BY:

Mayor Eddie Tejeda
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City Council Meeting K. 1.

DATE: 10/01/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Public Hearing to consider Resolution No. 8629 for the following development applications related to the construction of 164 apartment units within the Venue at Orange Apartments located at the southwest corner of Orange Avenue and Alabama Street. (Mayor to declare the meeting open as a public hearing) Exemption from environmental review in accordance with
Section 15332 (Infill Development Projects) of the California Environmental Quality Act (CEQA) Guidelines for the
entitlements listed above.

A.

Socio-Economic Cost/Benefit Study prepared for the
proposed project as required by Measure U.

B.

Commission Review & Approval No. 914, Revision 1 - A
proposal to construct an additional 164 units consisting of three four-story apartment buildings within the Venue at Orange apartment project, pursuant to a density bonus in accordance with State Density Bonus Law (to allow up to a 50% increase in the total project density). The proposed additional 164 apartments (“Density Bonus Units”) would be constructed on the south side of Orange Avenue on a 3.2-acre portion of the subject property located at the southwest corner of Orange Avenue and Alabama Street (APNs:
0292-482-01-0000, 0292-721-01-0000, 0292-721-02-0000) in the Multiple Family Residential (EV/2500RM) district of the East Valley Corridor Specific Plan.

C.

Parcel Map No. 20796 - A request to subdivide a 9.2-acre parcel into two parcels for residential development purposes.

Parcel 1 is 5.9 gross acres and is developed with the Venue at Orange apartment project (105 existing residential units).

Parcel 2 is 3.2 gross acres and currently vacant, and is the proposed location for the Density Bonus Units of the proposed project. The site for the Density Bonus Units is located at the southwest corner of Orange Avenue and Alabama Street
(APN: 0292-482-01-0000) in the Multiple Family Residential (EV/2500RM) district of the East Valley Corridor Specific Plan.

D.

Density Bonus Agreement with Declaration of AffordableE.

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Density Bonus Agreement with Declaration of Affordable
Housing Covenants and Restrictions - A request to approve a Density Bonus Agreement which sets forth the terms and conditions to allow the Density Bonus Units and increased density for the project, the incentives/concessions and waivers that the developer is entitled to, pursuant to State law, and affordability covenants to ensure the affordability of fifty (50) apartment units for Very Low Income households
throughout the Venue at Orange project for a term of 55 years.

E.

Loan Agreement - An agreement to provide $1,500,0000 in financial assistance in the form of a forgivable loan with a term of 55 years to be funded by the Inclusionary Housing Fund for the construction of 164 apartment units, including 50 units for Very Low Income households. (Development
Services DIrector Desatnik)
F.

PROCEDURE FOR PUBLIC HEARING:

Mayor declares the meeting open as a public hearing.1.

Mayor calls upon Department Director for report.2.

Mayor calls for questions/comments from members of the City Council.

3. Mayor calls upon applicant, or his/her representative, for comments and testimony.

4. Mayor calls for comments/questions/testimony from members of the public
(3 minutes per speaker).

5. Mayor calls upon City Clerk to note any written comments received.

6. Mayor calls upon the applicant, or representative, for rebuttal comments (5 minutes).

7. Mayor closes the public hearing.8.

City Council considers the motion and votes.9.

MOTION(S):

I move that the City Council adopt Resolution No. 8629 and approve Phase 2 of the Venue at Orange project.

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RECOMMENDATION:

PLANNING COMMISSION'S RECOMMENDATION
The Planning Commission voted 5-1-1 (Commissioner Smith opposed and Commissioner Marc Shaw absent) to adopt Resolution No. 1681 recommending approval of the project entitlements and the Density Bonus Agreement to the City Council.

During the meeting, the Commission discussed site design, the density bonus and the requested financial assistance for the project. The Commission was supportive of the project and its design, and recommended replacement of some of the surface parking within the project with additional landscaping (although no condition of approval was added). Some discussion was focused on building orientation and alignment in relation to providing open spaces. As proposed, the project includes a number of waivers of development standards that will reduce setbacks and building separation distances pursuant to Density Bonus Law (see discussion of Density Bonus Law in Background section below).

The Commission added Condition of Approval No. 8 that requires the applicant to submit a management plan for the affordable units. This management plan is detailed in the Density Bonus agreement and will be provided to the Planning Commission for review prior to approval by the City Manager. The review and approval of the management plan by the City is required prior to the issuance of any Certificate of Occupancy for the density bonus units.

Since the proposed loan agreement is not within the Planning Commission's purview, the Financial Gap Analysis that is attached to this agenda report was not provided to the Commission for review. However, the Commission expressed concern regarding the loan and whether it is truly necessary to secure the affordable units. However, the gap analysis validates the need for funding represented by the developer and confirms that the proposed loan amount is appropriate.

BACKGROUND:

On October 15, 2019, the City Council approved entitlements for a 328-unit market-rate multifamily apartment project located between Iowa Street and Tennessee Street on the north and south sides of Orange Avenue. The project has been constructed and is now occupied. During the construction of the project, the applicant submitted the proposed revision to the initial project approvals, with a request for a density bonus. The proposed Density Bonus Units would be developed on the southernmost portion of the site, which is currently vacant.

State Density Bonus Law: Provisions for any requested density bonus are detailed in State law. A developer who meets the requirements of State Density Redlands Regular Meeting of 10/01/24
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Bonus Law is entitled to a density bonus as a matter of right. In addition to the density bonus, the City is also required to provide incentives or concessions.

The City is required to grant concessions which reduce development standards, or remove regulatory constraints which result in increased costs to the developer. These concessions must be granted unless the City finds that the proposed concessions do not result in identifiable cost reductions, would cause a public health or safety problem, cause an environmental problem, harm a historical property or would be contrary to law. The City has the burden of proof in the event it declines to grant any requested concession. However, the State Density Bonus Law does not require that the City grant an incentive that is a request for direct financial assistance or a waiver of fees.

In addition to incentives or concessions, density bonus projects are also entitled to waivers of development standards. The City may not apply development standards which would physically preclude the construction of the project at its permitted density. Waiving development standards necessary for the construction of compliant density bonus projects is mandatory. Generally, because granting of incentives/concessions and waivers to density bonus projects is mandatory, the City does not have discretion over their approval, except to the extent specific findings are authorized.

PROPOSAL:

Pursuant to a Density Bonus application received on December 16, 2022, the applicant requested a density bonus for the Venue at Orange development. This proposal would revise the previously-approved Commission Review & Approval No. 914 (CRA 914) to allow construction of 164 additional apartment units pursuant to the request for a density bonus and related incentives/concessions and waivers. The site for the Density Bonus Units is located between Iowa Street and Alabama Street on the north and south sides of Orange Avenue (see Attachment A – Location Map and Aerial Photograph). The original entitlement for CRA 914 approved a total of 328 market-rate apartments. The proposed density bonus units will be located on the south side of Orange Street and within the boundaries of the CRA 914 project site. The density bonus units are proposed to be constructed within three (3) four-story buildings on the vacant

3.2-acre portion of the site.

The proposed project would restrict a total of 50 units, which is 15% of the unit count of CRA 914 (328 DU x 0.15 = 49.2 or 50 units), for affordable housing in exchange for approval of a density bonus. By providing 50 affordable housing units, the allowable density bonus is equivalent to 50% of the CRA 914 total unit count (328 DU x 0.5 = 164 units). Approval of this proposed Revision to CRA 914 plus the related Density Bonus Agreement would allow a total of 492 units (328 + 164 = 492). The 50 affordable housing units would be distributed throughout the entire project site, both Phase I and II, on both the north and south sides of Orange Avenue.

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The applicant is also proposing to subdivide one existing parcel within CRA 914 (south side of Orange Street) into two parcels. Parcel 1 will be 5.9 gross acres and contain 105 existing residential units. Parcel 2 will be 3.2 gross acres, is currently vacant, and is the proposed location for the Density Bonus Units. The new portion and buildings to be constructed are designed to be a logical extension of the existing development and site improvements. Upon completion of the project, the existing portions of the project and the new density bonus portion will be developed in a seamless and cohesive manner.

The proposed project provides well in excess of the number of affordable units required by the City's Inclusionary Housing Ordinance, even though it is technically exempt because the application was deemed Complete prior to the ordinance becoming effective.

ANALYSIS:

The proposal and project plans were fully evaluated in the staff report prepared for the June 25, 2024, Planning Commission meeting (see Attachment B).

Analysis from the previous report is summarized below.

A) General Plan
The General Plan designation of the property is 'Medium Density Residential' (See Attachment C). Medium-Density Residential designates area intended to be developed at a density up to 15 units/acre. The intent of this land use category is to provide areas for the development of attached, detached, and/or mixed residential uses with a range of densities and housing types. In addition, there are several General Plan policies and actions that are relevant to this proposal, as follows:

Action 4-A.7: Promote a range of residential densities to encourage a mix of housing types in varying price ranges and rental rates.

Policy 4-P.16: Promote a variety of housing types to serve the diverse needs of the community.

Policy 4-P.6: Provide for a balance among a variety of different land uses and their distribution among the city’s neighborhoods.

Action 4-A.8: Promote the development of a greater variety of housing types, including single-family homes on small lots, accessory dwelling units, townhomes, lofts, live-work spaces, and senior and student housing to meet the needs of future demographics and changing family sizes.

B) Specific Plan
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of the East Valley Corridor Specific Plan (See Attachment D). This district is intended to provide for the development of high-quality apartments on large lots with densities of up to 15 dwelling units per acre.

C) Density Bonus and Loan Agreements
The applicant will be required to enter into a Density Bonus Agreement (Attachment E) with the City, which requires that 50 units within the project only be rented to very low-income households for a minimum period of 55 years. The agreement also includes verification and reporting requirements.

Pursuant to State law, and based on the percentage of affordability included in this project, the applicant is entitled to three or more incentives or concessions.

An incentive or concession is defined as:

A reduction in site development standards or a modification of zoning code or architectural design requirements, such as a reduction in setback or minimum square footage requirements; or
Approval of mixed use zoning; or
Other regulatory incentives or concessions which result in identifiable and actual cost reductions.

The applicant has requested three incentives/concessions. These are:

An increase in the number of stories permitted under local standards for the Density Bonus Units from three to four stories;

1. An increase in the perimeter fence height permitted under local standards from six feet to eight feet; and

2. Financial assistance that will make the provision of affordable units for Very Low Income Households financially feasible and offset the cost of impact fees in the amount of $1,500,000. The financial assistance incentive requires approval from the City Council of a separate Loan Agreement.

3. With respect to the third request above, the City has contracted with Keyser Marston Associates, Inc. (KMA) to prepare a Financial Gap Analysis for the project (see Attachment F). KMA is a full-service real estate advisory firm with offices in Berkeley, Los Angeles and San Diego that specializes in real estate advisory services with a focus on affordable housing policy, land use economics, and fiscal and economic impact analysis.

The KMA analysis showed that the project, with 50 residential units restricted for rent to Very Low Income households for a period of 55 years, exhibits a $1.59 million financial gap; that is, in order for the project to be financially feasible, up to $1.59 million in financial assistance can be justified. As such, the Developer's request for a $1.5 million forgivable loan is supported by the KMA analysis.

The proposed financial assistance will take the form of a forgivable loan with a term of 55 years, matching the covenant period for the affordable housing units.

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affordability covenants, the outstanding balance of the loan will be reduced by 1/55 of the loan principal ($27,272.72) plus any accrued interest. The Loan Agreement is Attachment G to this report.

Staff is recommending that the Inclusionary Housing Fund be the source of funds for the $1,500,000 loan. At present, this fund has a zero balance.

However, in the past year, the City has approved two single-family development projects that will be paying a total of just over $3.3 million. Based on the timing of these projects, the earliest that these funds will start being paid into the Inclusionary Fund will be the end of 2025. However, the applicant needs the $1.5 million in order to move forward with the project. Therefore, staff proposes an Interfund Loan from the City's General Fund to the Inclusionary Housing Fund of $1.5 million for a term not to exceed five (5) years. This is a separate agenda item on tonight's agenda (Resolution No. 8636).

D) Commission Review and Approval
Site Design: The project site is a 3.2-acre portion of the Venue at Orange apartments. The site is approximately 326’ wide (east to west) and 436’ long (north to south), approximately rectangular in shape, and located abutting the south side of the existing Venue at Orange apartments. Primary vehicular access to the site will be from Alabama Street and Orange Avenue, and have access via the existing drive aisles within the Venue at Orange project.

Currently, there are two existing buildings (Building S1 and S2) on the site, and three new buildings are proposed (S3, S4, and S5).

Table B: Units per Building (Phase 2)
Bldg. S3 Bldg S4 Building S5 Total
84 20 60 164
Amenities proposed include a pool, putting green area, outdoor play area and outdoor open space areas.

Development Standards: The project meets the development standards of the EV/2500 district (see Attachment H-1, Site Plan; and Attachment H-2, Floor Plans). The table below summarizes the proposed development’s consistency with the development standards. A complete list of applicable development standards is included in Attachment I.

Table C: Summary of Development Standards
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Table C: Summary of Development Standards
Development
Standard Requirement Proposed Complies?
Lot area 12,000 sq ft
minimum
139,392 sq ft
(3.2 acres) Yes
Lot Coverage 45.0% maximum 27% Yes
Building Height 3 stories 4 stories Yes, with approval of a Density Bonus Agreement
Landscaping 35% 27% Yes, with approval of a
Density Bonus Agreement
Parking Lot
landscaping 7% 13.5% Yes
Total Open
Space
150,620 sq. ft. 55,873 sq. ft. Yes, with approval of a
Density Bonus Agreement
Private Open
Space
150 sq. ft. per
ground floor unit
150 sq. ft.
provided Yes
Setbacks: The habitable structures within the project are proposed with a maximum height of four stories (approximately 54’ high), except for the accessory structures (such as the pool cabana) which are one-story. The table below illustrates how the project has been designed to comply with the setback requirements of the EV/2500 District. The applicant is requesting a waiver for setbacks as they relate to Building S3 adjacent to the northern property line of Parcel 2, and for Building S5 adjacent to the southern property line of Parcel 2, as indicated in the table below.

Table D: Summary of Setbacks to Parcel 2 Boundaries
Setbacks Requirement Bldg.

S3
Bldg.

S4
Bldg.

S5 Complies?
Front
(North)
35’ for a 3-story
building 9’10” 150’ 304’ Yes (1)
Side (East) 25’ 28’ 194’ 56’ Yes
Side (West) 25’ 62’ 25’ 26’ Yes
Rear
(South)
25’ 212’ 196’ 21’ Yes (1)
(1) With a waiver as allowed by State Density Bonus Law.

Building Separation and Interior Yards: In addition to the setbacks above, the EV/2500 District includes provisions for internal yards and building separation standards for multi-family buildings. These yards act as guidelines for separation of structures and provide spacing between groups of main buildings and building wings. The Specific Plan states that the front of the building is the side Redlands Regular Meeting of 10/01/24
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containing the main entryway (because of this, buildings may have more than one front). In addition to this, building separations are to be increased by the dimension of any drive aisle that passes between buildings.

Table E: Required Building Separation
Front Side Rear
30 Front 15 Feet 20 Feet
There are two locations where the project does not meet the minimum building separation requirements: 1) between buildings S3 and S4; and between buildings S3 and S5. The first is the required separation between the S3 and S4 buildings (East to West) where the separation is 30’11” as shown on the project plans. This is a front-to-rear separation between the buildings and a 50’ separation is required (30’ for the front and 20’ for the rear). The second location is between the S3 and S5 buildings where the separation is 77’ 7” as shown on the project plans. This is a front-to-front separation requiring 86’ of building separation (30’ for each front yard and 26’ for the drive aisle between them).

The Specific Plan gives the decision-making body the ability to approve a lesser separation based upon the design of the project. Yard standards may be modified where the modifications will improve the project in terms of more usable open space, aesthetic appearance, and living environment, provided that no buildings are closer than 20’ apart. Staff believes that the reduction in the building separation is justified and within the separation requirements allowed to be approved by the City Council, as the project design allows full fire and vehicular access to the southernmost residential units while still incorporating open recreational areas for a pool, tot lot, putting green and seating area.

Open Space: The EV/2500 District requires one square foot of outdoor living area for every three square feet of gross floor area of living space. This can be provided in the form of common open space areas, private open space, or a combination thereof. There shall be at least 200 square-feet of common open space for each dwelling unit. The project is required to provide a minimum of 150,560 square-feet of open space (in either common open space, private open space, or a combination of both), and the proposed design falls short of the required open space requirement with 55,873 square-feet of open space for outdoor living area. A minimum of 30% of the common open space area must be landscaped, and the project provides 29.5% of the common open space as landscaping. The applicant has requested a waiver for this development standard and is included in the Density Bonus Agreement.

Site Landscaping: The Landscape Plan (Attachment J) includes a variety of hardscape elements and plant materials which includes trees, shrubs, vines, and groundcover. The project will incorporate nine tree species, primarily including Lemon Scented Gum, Crape Myrtle, and Brisbane Box. The East Valley Corridor Specific Plan Section EV4.260(a), "Other Site Landscaping Provisions," requires Redlands Regular Meeting of 10/01/24
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a minimum of 35% of the total site area (or 290,602 square-feet) to be landscaped. As proposed, the project provide 27.4% (or 227,551 square-feet) and therefore does not meet this requirement. The applicant has requested a waiver for this development standard, which is included in the Density Bonus Agreement.

A minimum of 7% of the parking lot areas are required to be landscaped (or a minimum of 20,673 square-feet). The entire project will provide 13.5% (or 40,083 square-feet) of the parking area as landscaped area upon completion, and will exceed the minimum requirement. Where parking areas abut a side or rear property line, perimeter landscaped planters are required. Between buildings S4 and S5, this perimeter landscaping is reduced in width, and does not meet the 5' requirement. This reduction is necessary to accommodate fire access and a turnaround location for fire apparatus. The applicant has requested a waiver for this development standard, and it is included in the Density Bonus Agreement.

Walls and Fences: Except for an existing CMU block wall along the western side of the project, the project proposes to fence the entire property with tubular steel fencing to secure the parking area and provide security. All entry points to the project currently have controlled access for security. The proposed project will be located south of the existing access-control gates and enclosed by 8’ high tubular steel fencing.

Parking: The applicant is providing parking consistent with State Density Bonus Law contained in California Government Code 65915(p)(1), which states that upon the request of the developer, a city, county, or city and county shall not require a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following ratios:

Table F: Density Bonus Parking Ratios
Unit Type Spaces Required
Studio 1 Space
1 Bedroom 1 Space
2 Bedroom 1.5 Spaces
3 Bedroom 1.5 Spaces
According to the above ratios, the project would be required to provide 620 total parking spaces, and 765 parking spaces will be provided upon project completion. Parking spaces are distributed throughout the project as shown in the table below.

Table G: Project Parking Analysis
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Table G: Project Parking Analysis
Location of Parking Parking Spaces
Required
Parking Spaces
Provided
North of Orange Avenue
(Existing) 282 414
South of Orange Avenue
(Existing)
132 219
South of Orange Avenue
(Proposed)
206 122
Totals 620 755
Architecture: The proposed building design is inspired by the Spanish/Mission architectural theme that matches that of the existing buildings within the Venue at Orange. Towers and varied rooflines, exposed rafters, and arches provide significant visual interest on all sides of the buildings. Proposed architectural elevations are provided as Attachment K (Project Elevations). Analysis of the project’s consistency with the City’s Architectural Guidelines and the East Valley Corridor Specific Plan’s Design Guidelines is included as Attachment L. Staff finds the project to be consistent with the architectural guidelines.

E) Architectural Review Criteria
The approving body reviews the project to determine whether the proposed development is in conformity with RMC Section 18.12.170, Architectural Review Criteria, and if approval of the site plan is in the best interest of the public health, safety, and general welfare. It is intended that design submittals be compatible with the character of adjacent and surrounding developments, and that they be of comparable composition, materials, textures and colors. Conformance is evaluated based on seven criteria. The project is consistent with the architectural design criteria. A complete discussion and analysis of the project in relation to the design criteria is included in the June 25, 2024, Planning Commission staff report included as Attachment B.

F) Parcel Map
The Venue at Orange project is constructed on two legal parcels with three Assessor Parcel Numbers (two north of Orange Avenue and one south). The portion south of Orange Avenue (APN: 0292-482-01-0000) is a 9.2-acre partially developed parcel, and the applicant is proposing to subdivide this partially developed parcel into two parcels. As proposed, Parcel 1 will be 5.9 gross acres and is developed with 105 residential units. Parcel 2 will be 3.2 gross acres, is currently vacant, and is the proposed location for the 164 Density Bonus Units.

Both resulting lots will be consistent with the RMC and the new lot will meet the minimum width, depth, and lot area requirements for the EV/2500 District.

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RMC Chapter 17.11.080 allows the approving body at its discretion to waive all or part of the requirements for a tentative map for any division of real property which would require a parcel map. The applicant is requesting to waive the preparation and approval of a tentative map for the proposed project (which will assist in streamlining the development of the proposed project). To waive the tentative map, the approving body must make a finding that the proposed division of land complies with requirements listed in the Municipal Code, the General Plan, the Subdivision Map Act, and related to overall improvement and design.

G) Socio-Economic Cost / Benefit Study
In accordance with the Principals of Managed Development Element of the General Plan, a Socio-Economic Cost/Benefit Study (Attachment M) has been completed for the project. Based on the cost/benefit model utilized by the City, the project provides a positive cost/benefit ratio of 1.28 over the period of 2025-2034 (and results in positive net revenue to the City after development).

This project will provide the City approximately $141,542 in new revenue, will incur costs to the City of $107,219 to provide public services and facilities, and will result in net revenue of $34,321 annually. The project will not result in any physical blight or overburden public services in the community, and all necessary findings can be made.

H) Findings
Staff believed that the required findings for approval of the Parcel Map and the Commission Review and Approval can be made. The written findings are contained in the draft Resolution for approval (Attachment O-1).

ENVIRONMENTAL REVIEW:

In accordance with the provisions of the California Environmental Quality Act (CEQA), the proposed project qualifies for exemption from environmental review pursuant to Section 15332 of the CEQA Guidelines. Section 15332 (Class 32) pertains to infill development sites and the proposal meets all criteria for this exemption as listed below.

a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations;
b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses; c) The project site has no value as habitat for endangered, rare, or threatened species;
d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and
e) The site can be adequately served by all required utilities and public services.

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services.

The City retained an environmental consultant to prepare an exemption checklist to fully analyze the project in relation to these criteria. The exemption checklist prepared for the project is included as Attachment N. Based upon the analysis in the attached checklist, the proposed project will not have any potentially significant effect on the environment and is eligible for exemption from CEQA.

ALTERNATIVES:

The City Council may continue the public hearing and direct staff to address any issues or bring back additional information; or

1. The City Council may wish to deny the project, continue the public hearing and direct staff to prepare findings supporting denial of the project.

2. 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
Christopher Boatman, Assistant City Manager
Danielle Garcia, Management Services /Finance Director
PREPARED BY:

Sean Reilly, Principal Planner
Attachments
Attachment A: Location Map and Aerial Photograph
Attachment B: Planning Commission Staff Report
Attachment C: General Plan Map
Attachment D: Zoning Map
Attachment E: Density Bonus Agreement
Attachment F: Financial Gap Analysis
Attachment G: Loan Agreement
Attachment H-1: Site Plans
Attachment H-2: Floor Plans
Attachment I: Table of Development Standards
Attachment J: Landscape Plan
Attachment K: Architectural Elevations
Attachment L: Consistency with Architectural Guidelines Redlands Regular Meeting of 10/01/24
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Attachment L: Consistency with Architectural Guidelines Attachment M: Socio-Economic Cost/Benefit Study
Attachment N: Environmental Exemption Checklist
Attachment O-1: Resolution No. 8629
Attachment O-2: Land Use Engineering Conditions of Approval Redlands Regular Meeting of 10/01/24
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TERRACINA
BLVD

BARTON RD

ALABAMA ST
NEVADA
ST

LADERA ST

CROCUS ST

SUNFLOWER ST

LUPINE ST

PARKER CT

MILBURN AVECALVARY CIR

IOWA ST

W STATE ST

KANSAS ST

ORANGE AVE

W CITRUS AVE
Copyright nearmap 2015
Project Location
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Feet
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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.

June 17, 2024
.

Redlands Regular Meeting of 10/01/24
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ALABAMA ST

HYACINTH AVE

GOLDENROD AVE

CROCUS ST

SUNFLOWER ST
LUPINE
ST

ORANGE AVE
Copyright nearmap 2015
Aerial Photo
OneStop.mxd
0 80 160
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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.

June 17, 2024
.

Project Location
Redlands Regular Meeting of 10/01/24
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City of Redlands

REQUEST FOR PLANNING COMMISSION ACTION

Planning Commission Agenda Item NO. 5. A.

Meeting Date:06/25/2024
APPLICANT:

MILLER ARCHITECTURAL CORPORATION, APPLICANT
(PROJECT PLANNER: SEAN REILLY)

PUBLIC HEARING to consider a recommendation to the City Council on the following development applications:

1. Exemption from environmental review in accordance with Section 15332 (Infill Development Projects) of the California Environmental Quality Act (CEQA) Guidelines for the entitlements listed above.

2. Socio-Economic Cost/Benefit Study prepared for the proposed project as required by Measure U.

3. Commission Review and Approval No. 914, Revision 1 - A proposal to construct an additional 164 units, consisting of three four-story apartment buildings, within the Venue at Orange apartment project, pursuant to a density bonus in accordance with State Density Bonus Law (to allow up to a 50% increase in the total project density). The proposed additional 164 apartments (“Density Bonus Units”) would be constructed on the south side of Orange Avenue on a 3.2-acre portion of the subject property located at the southwest corner of Orange Avenue and Alabama Street (APNs:
0292-482-01-0000, 0292-721-01-0000, 0292-721-02-0000) in the Multiple Family Residential (EV/2500RM) district of the East Valley Corridor Specific Plan.

4. Parcel Map No. 20796 - A request to subdivide a 9.2-acre parcel into two parcels for residential development purposes. Parcel 1 is 5.9 gross acres and is developed with the Venue at Orange apartment project (105 existing residential units). Parcel 2 is 3.2 gross acres and currently vacant, and is the proposed location for the Density Bonus Units of the proposed project. The site for the Density Bonus Units is located at the southwest corner of Orange Avenue and Alabama Street (APN: 0292-482-01-0000) in the Multiple Family Residential (EV/2500RM) district of the East Valley Corridor Specific Plan.

5. Density Bonus Agreement with Declaration of Affordable Housing Covenants and Restrictions - A request to approve a Density Bonus Agreement which sets forth the terms and conditions to allow the Density Bonus Units and increased density for the project, the concessions and waivers that the developer is entitled to pursuant to State law, and affordability covenants to ensure the affordability of fifty (50) apartment units for Very Low Income households throughout the Venue at Orange project for a term of 55 years. Developer’s density bonus requests three concessions: (1) an increase in the number of stories permitted under local standards for the Density Bonus Units from three to four stories; (2) an increase in the perimeter fence height permitted under local standards from six feet; and (3) a request for financial assistance that will make the provision of affordable units for Very Low Income Households financially feasible and offset the cost of impact fees in the amount of $1,500,000.00. The financial assistance concession requires approval from the City Council as a separate Loan Agreement and Development Impact Fee Deferral Agreement.

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SYNOPSIS

1.  General Plan
Designation: Medium Density Residential

2.  Existing Zoning: Multiple Family Residential (EV/2500) District of the East Valley Corridor Specific Plan.

3.  Surrounding Zoning:

North: Commercial Industrial (EV/IC)
South: Administrative Professional (EV/AP)
East: Administrative Professional (EV/AP)
West: Specific Plan 57

4.  Existing Land Use: Multiple-Family Residential (Phase 1 of the Venue at Orange apartments)

5.  Surrounding Land
Use:

North: Single-Family Residential; Vacant
South: Single-Family Residential; Church
East: Single-Family Residential
West: Single-Family Residential (a small lot private subdivision)

6.  Area / Topography:

The site is partially developed with the Venue at Orange apartment project.

Vacant portions of the site located on the south are generally flat with a slight downslope grade to the north.

7.  Environmental
Determination:

The proposed project is exempt from environmental review in accordance with Section 15332 (Infill Development Projects) of the CEQA Guidelines.

8.  Socio-Economic
Cost/ Benefit Study:

The project has a positive cost/revenue ratio of +1.28 and determined that the project would not create significant unmitigable physical blight or overburden public services in the community.

9.  Planning
Commission Submittal
Dates:
(A) Date Submitted:
(B) Date Accepted As Complete:
(C) Planning Commission Meeting:

December 16, 2022
May 15, 2024
June 25, 2024

PROPOSAL
Pursuant to a density bonus application received on December 16, 2022, the applicant proposed a density bonus for the Venue at Orange development.  This proposal to revise previously approved Commission Review & Approval No. 914 (CRA 914) to allow construction of 164 additional apartment units pursuant to the request for a density bonus and related concessions, incentives, and waivers. The site for the Density Bonus Units is located between Iowa Street and Alabama Street on the north and south sides of Orange Avenue (Attachment A – Location Map and Aerial Photograph). The original entitlement for CRA 914 approved a total of 328 market-rate apartments. The proposed density bonus units will be located on the south side of Orange Street within the boundaries of the CRA 914 project site.

The density bonus units are proposed to be constructed within three four-story buildings on a vacant

3.2-acre portion of the site.

The proposed project would restrict a total of 50 units, which is 15% of the unit count of CRA 914 (328 DU x 0.15 = 49.2 or 50 units), for affordable housing in exchange for approval of a density bonus. By providing 50 affordable housing units, the allowable density bonus is equivalent to 50% of the CRA 914 total unit count (328 DU x 0.5 = 164 units). Approval of the proposed Revision to CRA 914 and the related density bonus agreement would allow a total of 492 units (328 + 164 = 492). The 50 affordable housing units would be distributed throughout the entire project site on both the north and south sides of Orange Avenue.

The applicant is also proposing to subdivide one existing parcel within CRA 914 (south side of Orange Street) into two parcels.  Parcel 1 is 5.9 gross acres and contains 105 existing residential units. Parcel 2 Redlands Regular Meeting of 10/01/24
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Street) into two parcels.  Parcel 1 is 5.9 gross acres and contains 105 existing residential units. Parcel 2 is 3.2 gross acres, is currently vacant, and is the proposed location for the Density Bonus Units.

The new portion to be developed are designed to be a logical extension of the existing development and site improvements. Upon completion of the project, the existing portions of the project and the new density bonus portion will be developed in a seamless and cohesive manner.

The proposed project provides well in excess of the number of affordable units required by the City's Inclusionary Housing Ordinance, even though it is technically exempt because the application was deemed complete prior to the ordinance going into effect.

BACKGROUND
On October 15, 2019, the City Council approved entitlements for a 328-unit market-rate multifamily apartment project located between Iowa Street and Tennessee Street on the north and south sides of Orange Avenue. Approvals for the project included:

1. Adoption of a Mitigated Negative Declaration.

2. A Socio-Economic Cost Benefit Study

3. An Amendment to the East Valley Corridor Specific Plan

4. A Tentative Tract Map to merge ten parcels into two

5. A Commission Review and Approval for the project’s site plan and design

The project has been constructed and is now occupied. During the construction of the project, the applicant submitted the proposed revision to the initial project approvals, with a request for a density bonus. The proposed Density Bonus Units would be developed on the southernmost portion of the site, which is currently vacant.

Housing Crisis Act of 2019: The Housing Crisis Act of 2019, also referred to as Senate Bill 330 (SB 330), became effective on January 1, 2020, and will be in effect through January 1, 2025. SB 330 imposed several limitations on cities and counties with regard to proposed housing development projects, as defined, including the provisions listed below.

The City may conduct no more than five (5) hearings on the project (including any Commission or Board meetings, workshops, subcommittee meetings, etc.).

The City may still use its Architectural Design Guidelines that were previously adopted in 2009, provided the City does not: a) deny the project, or b) reduce the number of dwelling units based on nonconformance with subjective design criteria.

Requires any potential disapproval of a project that complies with objective General Plan and zoning standards (or approve it on the condition that it be developed at a lower density) to base its decision upon written findings supported by substantial evidence in the record and places the burden of proof on the local agency.

Prohibits the City from changing the zoning or development standards that would: change the allowable land use to a less intensive use or reducing the intensity of use below that which was in effect on January 1, 2018; impose or enforce a moratorium on housing development within all or a portion of the jurisdiction of the city; and, impose or enforce new design standards established on or after January 1, 2020, that are not objective design standards, as defined.

State Density Bonus Law: Provisions for any requested density bonus are detailed in State law. A developer who meets the requirement of State Density Bonus Law is entitled to a density bonus as a matter of right. In addition to the density bonus, the City is also required to provide incentives/concessions. The City is required to grant concessions which reduce development standards, or remove other regulatory constraints which result in increased costs to the developer. These concessions must be granted unless the City finds that the proposed concessions do not result in identifiable cost reductions, would cause a public health or safety problem, cause an environmental problem, harm a historical property or would be contrary to law. The City has the burden of proof in the Redlands Regular Meeting of 10/01/24
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problem, harm a historical property or would be contrary to law. The City has the burden of proof in the event it declines to grant any requested concession.  In addition to concessions, density bonus projects are also entitled to unlimited waivers of development standards. The City may not apply development standards which would physically preclude the construction of the project at its permitted density. Waiving development standards necessary for the construction of compliant density bonus projects is mandatory.

Generally, because granting of concessions, incentives and waivers to density bonus projects is mandatory, the City does not have discretion over their approval, except to the extent specific findings are authorized.  However, the State Density Bonus Law does not require that the City grant a concession or incentive that is a request for direct financial assistance or a waiver of fees.

ANALYSIS
A) General Plan
The General Plan designation of the property is 'Medium Density Residential' (See Attachment B).

Medium-Density Residential designates area intended to be developed at a density up to 15 units/acre.

The intent of this land use category is to provide areas for the development of attached, detached, and/or mixed residential uses with a range of densities and housing types. In addition, there are several General Plan policies and actions that are relevant to this proposal, as follows:

Action 4-A.7: Promote a range of residential densities to encourage a mix of housing types in varying price ranges and rental rates.

Policy 4-P.16: Promote a variety of housing types to serve the diverse needs of the community.

Policy 4-P.6: Provide for a balance among a variety of different land uses and their distribution among the city’s neighborhoods.

Action 4-A.8: Promote the development of a greater variety of housing types, including single-family homes on small lots, accessory dwelling units, townhomes, lofts, live-work spaces, and senior and student housing to meet the needs of future demographics and changing family sizes.

B) Specific Plan

The project is located in the Multiple-Family Residential 2500 (EV/2500) District of the East Valley Corridor Specific Plan. This district is intended to provide for the development of high-quality apartments on large lots with densities of up to 15 dwelling units per acre.

Density Bonus:  A total of 50 residences within the project would be restricted for rental only to Very Low-income households and would be distributed throughout the project site. Therefore, the project is eligible for a Density Bonus Agreement pursuant to State Density Bonus Law (Gov. Code Section 65915 et seq.). Through this agreement, as specified by State law, the applicant may request and be entitled to reductions to on-site parking requirements, incentives and/or concessions, and unlimited waivers or reductions to any development standards that would physically preclude the development of a project at the allowable density.

Pursuant to State law, as well as Section 18.228.030(A) of the Redlands Municipal Code, a density bonus granted to a residential development project shall consist of an increase over the otherwise maximum allowable residential density under the applicable zoning ordinance and of the City's General Plan as of the date of application. Projects that deed restrict 15% of the project’s base units for rent to very low-income residents are eligible for a density bonus. The allowable density bonus by State law is up to a 50% increase above the base unit count. The applicant is requesting a density bonus that equates to an additional 7.5 units per gross acre (22.5 DU/acre). As such, the density bonus would be Redlands Regular Meeting of 10/01/24
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equates to an additional 7.5 units per gross acre (22.5 DU/acre). As such, the density bonus would be consistent with the provisions of the Redlands Municipal Code and State law.  As shown in Table A, the applicant is requesting a density bonus that may be approved based on the General Plan density and the allowable density bonus.

Table A: Proposed Project Density
Project Gross
Acreage
General Plan
Density
Base Units
Allowed
Density Bonus Unit
Allowable
Proposed
Units

21.84 acres 15 units per
gross acre 328 164 492
C) Density Bonus and Loan Agreements
The applicant will be required to enter into a Density Bonus Agreement with the City, which requires that 50 units within the project only be rented to very low-income residents for a minimum period of 55 years.

The agreement also includes verification and reporting requirements. The Density Bonus Agreement will need to be approved by the City Council for the approval of the Density Bonus Units (see Attachment C for draft Agreement).

Pursuant to State law, and based on the percentage of affordability included in this project, the applicant is entitled to three or more "incentives" or “concessions.”  A concession or incentive is defined as:

A reduction in site development standards or a modification of zoning code or architectural design requirements, such as a reduction in setback or minimum square footage requirements; or Approval of mixed use zoning; or
Other regulatory incentives or concessions which actually result in identifiable and actual cost reductions.

The applicant has requested three incentives/concessions.  These are:

An increase in the number of stories permitted under local standards for the Density Bonus Units from three to four stories;

1. An increase in the perimeter fence height permitted under local standards from six feet; and2.

Financial assistance that will make the provision of affordable units for Very Low Income Households financially feasible and offset the cost of impact fees in the amount of $1,500,000.00.

The financial assistance incentive requires approval from the City Council as a separate Loan Agreement and Development Impact Fee Deferral Agreement.

3. With respect to the third request above, the developer has submitted a development pro forma to the City demonstrating the need for $1,500,000 in financial assistance to make the project financially feasible.

Staff has had the City's financial consultant and affordable housing expert, Keyser Marsten Associates, review the pro forma to verify the need for the requested assistance.  Keyser Marsten concluded that the developer's request is reasonable and warranted.

The financial assistance will take the form of a forgivable loan with a term of 55 years, matching the covenant period for the affordable housing units.  At the end of each year, as long as the project remains in compliance with the affordability covenants, the outstanding balance of the loan will be reduced by 1/55 of the loan principal ($27,272.72) plus any accrued interest.

Staff is recommending that the Inclusionary Housing Fund be the source of funds for the $1,500,000 loan.  At present this fund has a zero balance.  However, in the past year, the City has approved two single-family development projects that will be paying a total of just over $3.3 million.  Based on the timing of these projects, the earliest that these funds will start being paid into the Inclusionary Fund will be the end of 2025.  However, the applicant needs these funds in order to move forward with the project.

Therefore, staff has prepared an agreement that provides for a deferral of the payment of $1.5 million of development impact fees until such time as the City is able to dispurse the loan funds.  The loan Redlands Regular Meeting of 10/01/24
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development impact fees until such time as the City is able to dispurse the loan funds.  The loan proceeds will be dispursed to escrow for payment of the development impact fees that were deferred.

D) Commission Review and Approval

Site Design: The project site is a 3.2-acre portion of the Venue at Orange apartments. The site is approximately 326’ wide (east to west) and 436’ long (north to south), approximately rectangular in shape, and located abutting the south side of the existing Venue at Orange apartments. Primary vehicular access to the site will be from Alabama Street and Orange Avenue, and have access via the existing drive aisles within the Venue at Orange project. Currently, there are two existing buildings (Building S1 and S2) on the site, and three new buildings are proposed (S3, S4, and S5).

Table B: Units per Building (Phase 2)
Bldg. S3 Bldg S4 Building S5 Total
84 20 60 164
Amenities proposed include a pool, putting green area, outdoor play area and outdoor open space areas.

Development Standards: The project meets the development standards of the EV/2500 district (see Attachment D-1, Site Plan; and Attachment D-2, Floor Plans). The table below summarizes the proposed development’s consistency with the development standards. A complete list of applicable development standards is included in Attachment E.

Table C: Summary of Development Standards
Development
Standard Requirement Proposed Complies?
Lot area 12,000 sq ft minimum 139,392 sq ft
(3.2 acres) Yes
Lot Coverage 45.0% maximum 27% Yes
Building Height 3 stories 4 stories  Yes, with approval of a Density Bonus Agreement
Landscaping 35% 27% Yes, with approval of a Density
Bonus Agreement
Parking Lot
landscaping
7% 13.5% Yes
Total Open Space 150,620 sq ft 55,873 sq ft Yes, with approval of a Density Bonus Agreement
Private Open Space 150 sq ft per ground
floor unit
150 sq ft
provided
Yes
Setbacks:  The habitable structures within the project are proposed at a height of four stories (approximately 54’ high), except for the accessory structures (such as the pool cabana) which are one-story. The table below illustrates how the project has been designed to comply with the setback requirements of the EV/2500 District. The applicant is requesting a waiver for setbacks as they relate to Building S3 adjacent to the northern property line of Parcel 2, and for Building S5 adjacent to the southern property line of Parcel 2, as indicated in the table below.

Table D: Summary of Setbacks to Parcel 2 Boundaries
Setbacks Requirement Bldg. S3 Bldg. S4 Bldg. S5 Complies? Redlands Regular Meeting of 10/01/24
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Front (North) 35’ for a 3-story building 9’10”  150’ 304’ Yes (1) Side (East) 25’ 28’  194’ 56’  Yes
Side (West) 25’ 62’ 25’ 26’ Yes
Rear (South) 25’ 212’ 196’ 21’ Yes (1)
(1) With a waiver as allowed by State Density Bonus Law.

Building Separation and Interior Yards:  In addition to the setbacks above, the EV/2500 District includes provisions for internal yards and building separation standards for multi-family buildings.  These yards act as guidelines for separation of structures and provide spacing between groups of main buildings and building wings. The Specific Plan states that the front of the building is the side containing the main entryway (because of this, buildings may have more than one front). In addition to this, building separations are to be increased by the dimension of any drive aisle that passes between buildings.

Table E: Required Building Separation
Front Side Rear
30 Front 15 Feet 20 Feet
There are two locations where the project does not meet the minimum building separation requirements:
1) between buildings S3 and S4; and between buildings S3 and S5. The first is the required separation between the S3 and S4 buildings (East to West) where the separation is 30’11” as shown on the project plans. This is a front-to-rear separation between the buildings and 50’ of separation is required (30’ for the front and 20’ for the rear). The second location is between the S3 and S5 buildings where the separation is 77’7” as shown on the project plans. This is a front-to-front separation requiring 86’ of building separation (30’ for each front yard and 26’ for the drive aisle between them).

The Specific Plan gives the decision-making body the ability to approve a lesser separation based upon the design of the project. Yard standards may be modified where the modifications will improve the project in terms of more usable open space, aesthetic appearance, and living environment, provided that no buildings are closer than 20’ apart. Staff believes that the reduction in the building separation is justified and within the separation requirements allowed to be approved by the City Council, as the project design allows full fire and vehicular access to the southernmost residential units while still incorporating open recreational areas for a pool, tot lot, putting green and seating area.

Open Space: The EV/2500 District requires one square foot of outdoor living area for every three square feet of gross floor area of living space. This can be provided in the form of common open space areas, private open space, or a combination thereof. There shall be at least 200 square-feet of common open space for each dwelling unit. The project is required to provide a minimum of 150,560 square-feet of open space (in either common open space, private open space, or a combination of both), and the proposed design falls short of the required open space requirement with 55,873 square-feet of open space for outdoor living area. A minimum of 30% of the common open space area must be landscaped, and the project provides 29.5% of the common open space as landscaping. The applicant has requested a waiver for this development standard and is included in the Density Bonus Agreement.

Site Landscaping: The Landscape Plan (Attachment F) includes a variety of hardscape elements and plant materials which includes trees, shrubs, vines, and groundcover. The project will incorporate nine tree species, primarily including Lemon Scented Gum, Crape Myrtle, and Brisbane Box. The East Valley Corridor Specific Plan Section EV4.260(a), "Other Site Landscaping Provisions," requires a minimum of 35% of the total site area (or 290,602 square-feet) to be landscaped. As proposed, the project provide

27.4% (or 227,551 square-feet) and therefore does not meet this requirement. The applicant has requested a waiver for this development standard, and it is included in the Density Bonus Agreement.

A minimum of 7% of the parking lot areas are required to be landscaped (or a minimum of 20,673 Redlands Regular Meeting of 10/01/24
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square-feet). The entire project will provide 13.5% (or 40,083 square-feet) of the parking area as landscaped area upon completion, and will exceed the minimum requirement.  Where parking areas abut a side or rear property line, perimeter landscaped planters are required. Between buildings S4 and S5, this perimeter landscaping is reduced in width, and does not meet the 5' requirement. This reduction is necessary to accommodate fire access and a turnaround location for fire apparatus. The applicant has requested a waiver for this development standard, and it is included in the Density Bonus Agreement.

Walls and Fences: Except for an existing CMU block wall along the western side of the project, the project proposes to fence the entire property with tubular steel fencing to secure the parking area and provide security. All entry points to the project currently have controlled access for security. The proposed project will be located south of the existing access-control gates and enclosed by 8’ high tubular steel fencing.

Lighting:  The proposed apartment complex will require lighting to illuminate the parking lot and walkway areas for safety and security. Several standard conditions of approval have been applied to the project to ensure that lighting will not have a negative effect on neighboring properties. These include requirements for the approval of a lighting plan prior to building permit issuance, indicating design details of all light fixtures, and a photometric plan designed by an electrical engineer demonstrating the adequate lighting ranges will be provided throughout the development without creating light spillover. The illumination within the parking lot shall be a minimum of 0.5 foot-candle and illumination along all property lines of the project site shall not exceed 0.5 foot-candle. Additionally, the conditions of approval require that all exterior lighting be approved by the Development Services Director or designee, and that all lighting be shielded and pointed downward so that light and glare do not impact surrounding properties.

Parking: The applicant is providing parking consistent with State Density Bonus Law contained in California Government Code 65915(p)(1), which states that upon the request of the developer, a city, county, or city and county shall not require a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following ratios:

Table F: Density Bonus Parking Ratios
Unit Type Spaces Required
Studio 1 Space
1 Bedroom 1 Space
2 Bedroom 1.5 Spaces
3 Bedroom 1.5 Spaces
According to the above ratios, the project would be required to provide 620 total parking spaces, and 765 parking spaces will be provided upon project completion. Parking spaces are distributed throughout the project as shown in the table below.

Table G: Project Parking Analysis
Location Parking Spaces
Required
Parking Spaces
Provided
North of Orange Avenue
(Existing) 282 414
South of Orange Avenue
(Existing)
132 219
South of Orange Avenue
(Proposed)
206 122
Totals 620 755
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Architecture: The proposed building design is inspired by the Spanish/Mission architectural theme that matches that of the existing buildings within the Venue at Orange. Towers and varied rooflines, exposed rafters, and arches provide significant visual interest on all sides of the buildings. Proposed architectural elevations are provided as Attachment G (Project Elevations). Analysis of the project’s consistency with the City’s Architectural Guidelines and the East Valley Corridor Specific Plan’s Design Guidelines is included as Attachment H. Staff finds the project to be consistent with the architectural guidelines.

E) Architectural Review Criteria
Although the proposed building and use is permitted within the zone, new construction over 500 square-feet is subject to review by the Planning Commission per Redlands Municipal Code (RMC) Chapter 18.12 and requires Commission Review and Approval. The Planning Commission reviews the project to determine whether the proposed development is in conformity with RMC Section 18.12.170, Architectural Review Criteria, and if approval of the site plan is in the best interest of the public health, safety, and general welfare. It is intended that design submittals be compatible with the character of adjacent and surrounding developments, and that they be of comparable composition, materials, textures and colors. Conformance is evaluated based on the following seven criteria.

1. Site layout, orientation, location of structures and relationship to one another, as well as open spaces and topography.

The proposed site layout, building orientation, location of structures and relationship to one another are physically suitable in size and shape to support the development. The site will be accessed via a drive aisle with access to Alabama Street and Orange Avenue. drive aisle with access through the existing portion of the project site to Orange and meets all applicable development standards of the EVCSP.

2. Harmonious relationship of building with existing and proposed adjoining developments.

The project site is surrounded by residential development on three sides and a church to the south. The proposed buildings and use are compatible with the context of the area which is primarily composed of residential uses.

3. Maximum height, area, setbacks and overall mass of building, as well as other structures such as walls, screens, towers or signs, and effective concealment of all mechanical equipment.

The proposed project will meet all applicable development standards of the Multiple Family (EV/2500) District of the EVCSP including floor-area ratio, setbacks, building height, and lot coverage upon approval of the Density Bonus Agreement with Declaration of Affordable Housing Covenants and Restrictions. The proposed buildings will have a maximum height of approximately 54 feet and any proposed roof-mounted mechanical equipment will be screened from the public right-of-way through the incorporation of parapet walls and pitched roof elements.

4. Harmony of construction materials and colors in relation to all exterior elevations.

The proposed architectural design of the building is consistent with the surrounding development including the existing portions of the Venus at Orange in terms of material, color, and scale. The design of the building provides variation in parapet height, popouts, detailed elements and pitched tile roofs.

5. Location and type of planting, with due regard for the preservation of specimen trees upon a site.

The proposal meets the landscaping requirements of the East Valley Corridor Specific Plan in terms of the landscaping requirement within parking areas. Residential uses that are located within the EVCSP are required to provide a minimum of 35% of landscaping (or 290,602 square-feet of landscaping across the total project site). The project proposes 227,551 square-feet of landscaping (or 27.4%) of the total Redlands Regular Meeting of 10/01/24
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project area. With the approval of a Density Bonus Agreement with Declaration of Affordable Housing Covenants and Restrictions and waivers related to landscaping, the project will be considered to have met this requirement. There are no specimen trees located within the development area of the site.

6. Design and appropriateness of signs in relation to the architectural style of the building.

No signs are proposed as part of this application.

7. Glazing or image reflective surfaces (specular reflectance) shall be limited to a maximum reflectance value of twenty-five percent (25%). "Specular reflectance" means any mirror like reflection, as contrasted to diffused reflection from such surfaces as concrete or vegetation.

A condition of approval has been added to the project that glazing or image reflective surfaces (specular reflectance) shall be limited to a maximum reflectance of 25%.

F) Parcel Map
The Venue at Orange project is constructed on two legal parcels with three Assessor Parcel Numbers (two north of Orange Avenue and one south). The portion south of Orange Avenue (APN:
0292-482-01-0000) is a 9.2-acre partially developed parcel, and the applicant is proposing to subdivide this partially developed parcel into two parcels. As proposed, Parcel 1 will be 5.9 gross acres and is developed with 105 residential units. Parcel 2 will be 3.2 gross acres, is currently vacant, and is the proposed location for the 164 Density Bonus Units. Both resulting lots will be consistent with the RMC and the new lot will meet the minimum width, depth, and lot area requirements for the EV/2500 District.

RMC Chapter 17.11.080 allows the approving body at its discretion to waive all or part of the requirements for a tentative map for any division of real property which would require a parcel map. The applicant is requesting to waive the preparation and approval of a tentative map for the proposed project (which will assist in streamlining the development of the proposed project). To waive the tentative map, the approving body must make a finding that the proposed division of land complies with requirements listed in the Municipal Code, the General Plan, the Subdivision Map Act, and related to overall improvement and design.

G) Socio-Economic Cost / Benefit Study
In accordance with the Principals of Managed Development Element of the General Plan, a Socio-Economic Cost/Benefit Study (Attachment J) has been completed for the project. Based on the cost/benefit model utilized by the City, the project provides a positive cost/benefit ratio of 1.28 over the period of 2025-2034 (and results in positive net revenue to the City after development). This project will provide the City approximately $141,542 in new revenue, will incur costs to the City of $107,219 to provide public services and facilities, and result in net revenue of $34,321 annually. The project will not create an unmitigable physical blight or overburden public services in the community.

ENVIRONMENTAL REVIEW
In accordance with the provisions of the California Environmental Quality Act (CEQA), the proposed project qualifies for exemption from environmental review pursuant to Section 15332 of the CEQA Guidelines. Section 15332 (Class 32) pertains to infill development sites and the proposal meets all criteria for this exemption as listed below.

a) The project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; b) The proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses;
c) The project site has no value as habitat for endangered, rare, or threatened species; Redlands Regular Meeting of 10/01/24
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c) The project site has no value as habitat for endangered, rare, or threatened species; d) Approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and
e) The site can be adequately served by all required utilities and public services.

The City retained an environmental consultant to prepare an exemption checklist to fully analyze the project in relation to these criteria. The exemption checklist prepared for the project is included as Attachment K.  Based upon the analysis in the attached checklist, the proposed project will not have any potentially significant effect on the environment and is eligible for exemption from CEQA.

FINDINGS
Parcel Map Findings:

In approving the Parcel Map, the following findings are required to be made:

1. The proposed map is consistent with the General Plan or any applicable specific plan, or other applicable provisions of the Redlands Municipal Code.

The proposed map will be consistent with the Redlands General Plan and the Redlands Municipal Code.

The proposed subdivision is within the Medium-Density Residential land use designation of the General Plan. The existing zoning designation is Multiple-Family Residential (EV/2500) district of the East Valley Corridor Specific Plan, which is consistent with the General Plan land use designation. The subdivision is consistent with the development standards of the underlying zoning district in terms require lot size, width, and depth, and is supported by the General Plan policies outlined in the staff report.

2. The site is physically suitable for the proposed type of development.

The project site is physically suitable for the proposed developments. The existing site is approximately

3.2 acres. The site is generally flat and rectangular. All on-site and off-site improvements proposed as part of the project’s design will meet all City standards with the approval of a Density Bonus Agreement with Declaration of Affordable Housing Covenants and Restrictions and will provide a safe and efficient environment for the future residents after development.

3. The site is physically suitable for the density of the development.

The property is located within the medium Density Residential land use designation of the General Plan.

This land use designation is intended for the development of projects of up to 15 dwelling units per acre.

The project exceeds this density, however, it is consistent with the allowable density allowed based upon the State Density Bonus Law, while still providing outdoor recreation areas amenities and required parking.

4. The design of the subdivision or the proposed improvements is not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat.

The design of the subdivision and proposed improvements is not likely to cause substantial environmental damage or injure fish or wildlife or their habitat. The project is located within an urbanized area and is surrounded by residential and non-residential development on all side. An exemption checklist was prepared to fully analyze the project in relation to CEQA guidelines criteria for an exemption based on Section 15332. Based upon the analysis in the checklist, the proposed project will not have any potentially significant effect on the environment and is eligible for exemption from CEQA.

5. The design of the subdivision or the type of improvements are not likely to cause serious public health problems.

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The design of the subdivision or the type of improvements are not likely to cause serious public health problems. The project is located in an area primarily developed by residential uses. The project is designed with improvements that meets all City and State building and fire codes, no offensive emissions or odors will be associated with the residential development.

6. The design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of property within the proposed subdivision.

The design of the subdivision or the type of improvements will not conflict with easements, acquired by the public at large, for access through or use of the property within the proposed subdivision. The Parcel Map provides the necessary easements utilities and access and is responsible for installing or repairing associated street improvements such as curb, gutter, and sidewalk consistent with the City requirements, if necessary at the time of construction.

7. That pursuant to Section 66474.4 of the Subdivision Map Act, the land is not subject to a contract entered into pursuant to the California Land Conservation Act of 1965 (commencing with section 51200 of the Government Code) and that the resulting parcels following a subdivision of the land would be too small to sustain their agricultural use.

The subject property is not under a Williamson Act Contract pursuant to the California Land Conservation Act of 1965 and will not be detrimental or otherwise affect lands in agricultural use.

Commission Review & Approval Findings:

RMC Chapter 18.12.080 (Site Plan Approval Procedures) establishes three findings that must be made to either recommend or approve an application for site plan approval, as follows:

1. The site for the intended use is adequate in size and shape to accommodate the use, and all of the required yards, setbacks, walls or fences, landscaping and other features will adjust the use to those existing or permitted future uses of land in the neighborhood; The proposed project includes the construction of three four-story multifamily residential buildings with a total of 164 dwelling units, outdoor recreation areas, and related site improvements on approximately 3.2 acres. The subject property is adequate in size and shape to accommodate the proposed use, including setbacks, landscaping, private and common open space, recreation amenities, driveways, on-site parking, lighting, utilities, and other required improvements necessary to serve the proposed use and structures. The proposed project complies with the development standards for the EV2500 District of the East Valley Corridor Specific Plan to the maximum extent utilizing waivers as allowed by State Density Bonus Law and will be compatible with the adjacent residential uses that surround the project site.

2. The site for the proposed use relates to streets and highways which are properly designed and improved to carry the type and quantity of traffic generated or to be generated by the proposed use; The subject property will take access from City streets (Orange Avenue and Alabama Street), which have been designed to accommodate the expected type and quantity of motor vehicle traffic to and from the proposed project. The existing roadways are designed to carry the type and quantity of residential traffic to be generated by the proposed use, including existing traffic from the existing portions of the project.

The site for the proposed use relates to streets that are properly designed and improved to carry the type and quantity of traffic that will be generated by the proposed residential structures.

3. The conditions set forth in the approval and those shown on the approved site plan are deemed necessary to protect the public health, safety and general welfare.

The conditions of approval for the project will protect the public health, safety, and general welfare.

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Conditions are provided from the Planning Division, Building & Safety Division, and Land Use Engineering Division. The project has been conditioned to comply with the applicable provisions of the Redlands Municipal Code as well as the applicable California Building Code, California Fire Code, and any other applicable regulations.

RECOMMENDATIONS
Based on the above analysis and the findings contained within the Resolution, staff recommends that the Planning Commission recommend approval of Revision 1 to Commission Review & Approval No. 914, Parcel Map No. 20796, and the Density Bonus Agreement with Declaration of Affordable Housing Covenants and Restrictions, subject to the attached conditions of approval.

MOTIONS
Should the Planning Commission concur with staff’s recommendation, the following motion is suggested:

"I move that the Planning Commission adopt Resolution No. 1681 recommending that the City Council:

Find that the proposed project is exempt from environmental review pursuant to Section 15332 of CEQA guidelines;
Adopt the Socio-Economic Cost/Benefit Study prepared for the project; Approve Revision 1 to Commission Review & Approval No. 914; Approve Parcel Map No. 20796; and
Approve a Density Bonus Agreement with Declaration of Affordable Housing Covenants and Restrictions for the proposed project."
Attachments
Attachment A: Location Map and Aerial Photograph
Attachment B: General Plan Land Use Map
Attachment C: Density Bonus Agreement
Attachment D-1: Site Plans
Attachment D-2: Floor Plans
Attachment E: Table of Development Standards
Attachment F: Landscape Plans
Attachment G: Architectural Elevations
Attachment H: Consistency with Architectural Guidelines Attachment I: Parcel Map No. 20796
Attachment J: Socio-Economic Cost/Benefit Study
Attachment K: Environmental Exemption Checklist
Attachment L-1: Resolution No. 1681
Attachment L-2: Land Use Engineering Conditions of Approval Redlands Regular Meeting of 10/01/24
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Heritage
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ALABAMA ST

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This map was produced by the City of Redlands,
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The City of Redlands assumes no warranty or
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The data used to generate this map is dynamic
in nature, therefore the information shown may
or may not be the most current.

June 17, 2024
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Author: Redlands GIS Date: 7/26/2024
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CATEGORY
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17942.00155\42719278.1

AGENDA VERSION
1 RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

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

SPACE ABOVE LINE FOR RECORDER'S USE ONLY
EXEMPT FROM RECORDING FEES (GOVT. CODE § 27383)
NO DOCUMENTARY TRANSFER TAX (R&T CODE § 11922)

APN: 0292-482-01-0000, 0292-721-01-0000, 0292-721-02-0000

CITY OF REDLANDS

DENSITY BONUS AGREEMENT WITH DECLARATION OF AFFORDABLE

HOUSING COVENANTS AND RESTRICTIONS
(Venue at Orange)

This Density Bonus Agreement with Declaration of Affordable Housing Covenants and Restrictions (“Agreement”) is entered into as of this [_ ]th day of [_________], 2024, by and between the City of Redlands, a California municipal corporation (“City”), and Venue at Orange LLC, a Delaware Limited Liability Company (“Developer”). City and Developer are each sometimes individually referred to herein as a “Party” and, together, as the “Parties.”

RECITALS

A. Developer is the owner of approximately 21.8 acres of real property located at 1600 Orange Avenue in Redlands, California, which is more particularly described in the legal description attached hereto as Exhibit “A” and incorporated herein by reference (“Property”).

B. Developer is constructing a multi-family rental housing project on the Property, which comprises four separate buildings and, under this Agreement, would include a total of ten separate buildings (eleven buildings including the pool house) and as many as four-hundred and ninety-two (492) units (the “Project”).

C. On or about October 15, 2019, the City granted to Developer certain entitlements to develop three-hundred and twenty-eight (328) units on the Property (“Base Units”). These entitlements included adoption of a Mitigated Negative Declaration, adoption of a Socio- Economic Cost/Benefit Study, approval of Amendment No. 45 to the East Valley Corridor Specific Plan, approval of Tentative Tract Map No. 20244, and approval of Commission Review and Approval No. 914, including the conditions of approval related thereto (collectively, the “Entitlements”). The Entitlements are hereby incorporated fully into this Agreement as if set forth at length herein.

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AGENDA VERSION
2 D. Subsequent to the approval of the Entitlements, in or about December 2022, Developer submitted a request for a density bonus as part of a revision to the Entitlements (Revised Application No. 1, hereafter the “Revised Application”). As part of the Revised Application, Developer represents that it will restrict fifty (50) units in the Project, equal to fifteen percent (15%) of the Base Units, for Very Low Income households. In exchange, Developer seeks approval of a density bonus to develop an additional one-hundred and sixty-four (164) units in four new buildings (“Density Bonus Units”), two waivers, which are specified in Paragraph 2(e) below, and three concessions, which are further specified in Paragraph 2(d) below: (1) an increase in the number of stories for the four Density Bonus Unit buildings from three to four stories; (2) financial assistance in the amount of One Million, Five Hundred Thousand Dollars ($1,500,000), structured as a forgivable 55-year loan, evidenced by a promissory note and secured by a deed of trust, which City shall agree to subordinate to a senior loan, provided that City shall have not less than forty-five days to review and approve the subordination agreement, which approval shall not be unreasonably withheld; and (3) an increase in the perimeter fence height requirement from six feet to eight feet.

E. Provided that Developer complies with all of the requirements of the California Density Bonus Law (Government Code section 65915 et seq.), Developer is eligible to obtain a density bonus and certain incentives and/or concessions, including a waiver or reduction of City development standards, and City desires to enter into this Density Bonus Agreement in accordance with California law.

F. For purposes of complying with the Density Bonus Law, and the Redlands Municipal Code, and facilitating development of affordable housing within the City, City agrees to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual promises contained herein, the Parties agree as follows:

AGREEMENT

1. Recitals. The foregoing recitals are true and correct, and are incorporated herein as a substantive part of this Agreement.

2. Definitions. The following terms when used in this Agreement shall have the meanings ascribed to them:
(a) “Affordable Housing Cost” means the maximum costs that can be borne by a Very Low Income Household based on the requirements imposed by California Health and Safety Code § 50053.
(b) “Affordable Rent” means the Affordable Housing Cost minus Housing Related Expenses.

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AGENDA VERSION
3 (c) “Affordable Unit” means a unit restricted for occupancy by a Very Low Income Household for Affordable Rent.
(d) “Density Bonus” means the additional one-hundred and sixty-four (164) units requested by Developer under the Density Bonus Law, defined below, in exchange for agreement to restrict the Affordable Units under this Agreement. With the Density Bonus, the total number of units in the Project will equal four-hundred and ninety-two (492). (e) “Density Bonus Law” means California Government Code section 65915 et seq.
(f) “Developer Concessions” shall mean the following requested concessions:
(i) An increase in the number of stories for the Density Bonus Unit buildings on the Property, as identified in the Site Plan, from three to four stories with an average height of forty-five (45) feet, measured from finished floor elevation of ground floor, and a height of fifty-six (56) feet for architectural features, including the stair towers (the “Height Concession”).
(ii) Financial assistance to offset a portion of development impact and permit fees, in the amount of One Million, Five Hundred Thousand Dollars ($1,500,000), structured as a forgivable 55-year loan, evidenced by a promissory note and secured by a deed of trust, which City shall agree to subordinate to a senior loan, provided that City shall have not less than forty-five days to review and approve the subordination agreement, which approval shall not be unreasonably withheld as set forth in the Loan Agreement (the “Financial Assistance Concession”). The Financial Assistance Concession, and terms and conditions thereof, are subject to review and approval of the City Council. (iii) An increase in the perimeter fence height from a maximum of six (6) feet to a maximum of eight (8) feet (the “Fence Concession”). (g) “Housing Related Expenses” means any costs other than rent that are required to be borne by the tenant in an Affordable Unit. These costs consist of any costs that are imposed on tenants as a condition of occupancy, including any costs that are charged by Developer (or a successor acting as a landlord or on behalf of the landlord) for the use of amenities that are included in the Project.
(h) “Qualifying Household” means a household whose income does not exceed the maximum income allowable for a Very Low Income Household. (i) “Site Plan” shall mean the drawings, maps, and depictions set forth in Exhibit “B,” and approved by the City, which is attached hereto and incorporated herein by reference.

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AGENDA VERSION
4 (j) “Very Low Income Household” means a household with income that meets the standards defined in California Health and Safety Code Section 50105. The maximum household income for Very Low Income Households shall be the amount published annually by the California Department of Housing and Community Development for San Bernardino County, as adjusted to reflect the actual household size of the tenant in a particular Affordable Unit.

3. Affordable Housing Requirements. Developer agrees to provide the Affordable Units on the terms and conditions in this Agreement in exchange for the Density Bonus and Developer Concessions as set forth in Paragraph 5. (a) Project. Developer shall develop, or cause to be developed, the Affordable Units allowed by the Density Bonus in accordance with the Entitlements, as modified by the Revised Application, and this Agreement.
(b) Affordable Units. Developer covenants and agrees that it shall rent not less than fifty (50) units in the Project as Affordable Units at for an amount that does not exceed Affordable Rent during the Term of this Agreement, subject to the requirements in this Paragraph 3, and the following:
(i) Developer estimates that construction of the Density Bonus Units will be completed on or before January 1, 2027.
(ii) Following issuance by the City of a certificate of occupancy for all the Density Bonus Units, Developer shall submit to the City a written list identifying, by unit number, number of bedrooms, and location, the proposed Affordable Units (“Affordable Unit List”). The Affordable Unit List shall be subject to the review and approval by the City within seven (7) business days of submittal by Developer. In the event the City does not approve or deny the Affordable Unit List within seven business days of submittal by Developer, the Affordable Unit List shall be deemed approved. The City may disapprove a unit or units on the Affordable Unit List if the City reasonably determines that such unit(s) are not reasonably dispersed within the Project, , if the City has reasonable health and safety concerns regarding the units, or if the City reasonably believes rental of the unit(s) to a Very Low Income Household would violate Federal or State fair housing laws. In the event the City disapproves a unit(s) in accordance with this Paragraph 3(b)(ii), Developer shall submit an alternate unit(s) for review and approval by the City. Except as approved in writing by the City Manager, the Affordable Unit List shall include a minimum of (a) twenty five (25) Affordable Units located in the Density Bonus Units, and (b) any vacant and available units located in the Base Units that are candidates for Affordable Units within the reasonable discretion of Developer, . Developer shall make a reasonable and good faith effort to identify vacant units that are available for lease as Affordable Units . Based on the foregoing requirements, if the Affordable Unit List, as approved by the City, identifies less than fifty (50) Affordable Units, then the remaining Affordable Units shall be designated in accordance with sub-paragraph (iii), below. The final Affordable Unit List shall meet the Redlands Regular Meeting of 10/01/24
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AGENDA VERSION
5 following requirements: three (3) Affordable Units shall be three-bedroom units, twenty three (23) Affordable Units shall be two-bedroom units, and twenty (24) Affordable Units shall be one- bedroom units.
(iii) If, at any time, there are less than fifty (50) designated Affordable Units in the Project, Developer shall notify the City within three (3) business days of when it discovers that a unit eligible to become an Affordable Unit (“Candidate Unit”).

Developer shall make a reasonable and good faith effort to designate any Candidate Unit as an Affordable Unit and shall provide notice to the City whether the Candidate Unit will be designated as an Affordable Unit (“Candidate Unit Notice”). Developer’s Candidate Unit Notice shall provide the City with the unit number, number of bedrooms, and location within the Project.

The City shall have seven (7) business days from the receipt of the Candidate Unit Notice to respond as follows: (A) if a Candidate Unit is not designated as an Affordable Unit, the City may approve of this determination or provide notice of disapproval, in which case the City and Developer shall meet and confer in good faith to resolve the disagreement; (B) if a Candidate Unit is designated as an Affordable Unit, then the City may approve of this determination or provide notice of disapproval for the following reasons: (1) if the City reasonably determines that such unit is not reasonably dispersed within the Project, (2) if the City has reasonable health and safety concerns regarding the unit, or (3) if the City reasonably believes rental of the unit to a Very Low Income Household would violate Federal or State fair housing laws. If the City does not respond to the Candidate Unit Notice in writing within seven (7) business days, the determination of Developer shall be deemed approved. If the Candidate Unit is disapproved by the City, Developer shall thereafter provide notice to the City of the next available unit as a Candidate Unit and the City shall respond in the manner specified above. If a Candidate Unit is approved as an Affordable Unit, then it shall be added to the Affordable Unit List. Developer shall follow the process set forth herein until fifty (50) Affordable Units have been approved by the City. (iv) Each individual Affordable Unit approved by the City shall be rented to Very Low Income Households for a period of fifty-five (55) years, which period shall commence on the date the individual Affordable Unit is rented to a Very Low Income Household.

Except for the minimum number of Affordable Units required to be designated in the Density Bonus Units under sub-paragraph (ii) of this Paragraph 3(b), or in the event of a default of this Agreement, the Parties expressly acknowledge that until Project units are approved as Affordable Units, they may be rented as market-rate units.
(v) Developer shall pay the actual cost of utilities (including electricity, gas, water, and trash/recycling collection) for each Affordable Unit, up to the average cost of all Project units of the same bedroom count as the Affordable Unit, or, alternatively, the utility allowance established by the Housing Authority for the County of San Bernardino for the applicable year, at Developer’s election. Developer shall state the average cost of utilities and any charges to tenants as part of the annual report required by this Agreement.

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AGENDA VERSION
6 (vi) The rental restrictions and conditions described in this Agreement shall run with the land and shall be binding on all successor owners of the Property.

City is given the express authority by Developer to enforce the restrictions and conditions described in this Agreement. Except as provided herein, the Affordable Units shall be rented, marketed, managed, maintained, and treated in the same manner as all other units on the Property. (vii) Developer represents and warrants the affordability requirements set forth in this Agreement do not conflict with any other agreements or obligations regarding the Property, including any current loans that are secured by the Property or the Project.

Developer further acknowledges and agrees that the requirements of this Agreement cannot be subordinated to any future loan.
(c) Affordable Rent. The Affordable Units shall be rented exclusively to Qualifying Households for an amount that does not exceed Affordable Rent, in accordance with California Health and Safety Code § 50053. Rent for a Qualifying Household may not be increased more frequently than annually to reflect increases in area median income. (d) Minimum Development Standards For Affordable Units. The Affordable Units shall be constructed with the same exterior appearance and interior features, fixtures, and amenities, and shall use the same type and quality of materials as provided for the other units in the Project.
(e) Determination of Household Income.
(i) Developer shall determine whether a household is eligible for an Affordable Unit by requiring the household to complete a form that verifies the income of the household (“Income Certification Form”).
(ii) The Income Certification Form shall be certified or recertified as follows: (A) at the initial application for occupancy, (B) at least once every twelve (12) months during the Term, and (C) each renewal of a lease for an Affordable Unit. (f) Verification. Developer shall make a good faith effort to verify the accuracy of income information provided in any Income Certification Form to verify that an applicant or existing occupant is a Qualifying Household in accordance with California law, and taking one or more of the following steps, as reasonably required or indicated. (i) Obtain an income tax return and copy of each W2 Wage and Earnings Statement for the most recently concluded income tax year; (ii) Contact a credit reporting agency or conduct a similar search;
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AGENDA VERSION
7 (iii) Obtain an income verification form from current employer(s) of the applicant(s) or existing tenant(s);
(iv) Obtain an income verification form from the United States Social Security Administration or the California Department of Social Services, if the applicant(s) or existing tenant(s) receive assistance from either of such agencies; or (v) If the applicant or existing tenant is an adult who is unemployed and has no such income tax return, obtain another form of independent verification. (g) Evidence. All verification information shall only be obtained by Developer after obtaining written consent from the applicant or existing tenant for the release of such information to Developer. Failure to consent in writing to the release of such income verification information to Developer may disqualify an individual for occupancy of an Affordable Unit or be grounds for termination of a tenancy in an Affordable Unit. (h) Tenant Selection Policies and Criteria. The Developer shall adopt written tenant selection policies and criteria applicable to the Affordable Unit that:
(i) Are consistent with the purpose of providing affordable rental housing for Qualifying Households at an Affordable Rent; (ii) Are reasonably related to tenant eligibility and ability to perform the obligations of the lease for an Affordable Unit; (iii) Provide for the selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; (iv) Give prompt written notice to any rejected applicant of the grounds for rejection;
(v) Upon designation of a unit on the approved Affordable Unit List in accordance with Paragraph 3, provide for the Affordable Unit to be available for occupancy on a continuous basis to Qualifying Households; (vi) Do not give preference to any particular class or group of persons in leasing or renting the Affordable Unit except to the extent that a tenant must be a Qualifying Household; and
(vii) Provide for notice to the City when a vacancy arises in an Affordable Unit.

The tenant selection policies and criteria prepared in accordance with this Paragraph shall be set forth in the Management Plan required under this Agreement.

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AGENDA VERSION
8 (i) Changes in Household Income. A tenant who initially qualified as a Very Low Income Household, but whose income subsequently exceeds the initially qualifying income limit for a Very Low Income Household shall continue to be considered a Qualifying Household provided that a six (6) month notice of termination of tenancy for such over-income tenant shall be served by Developer, provided such six (6) month period is consistent with State law, and the tenant shall not be required to pay rent that exceeds an amount that is the least of the amount that would be payable by the tenant under (i) low income housing tax credit regulations, (ii) State or local law or (iii) thirty percent (30%) of the household’s adjusted gross income. In the event the tenant experiences a change of income from the time a notice of termination is served and the tenant vacates, and the change of income would qualify the tenant for the Affordable Unit, the tenant shall have the right to remain in the Affordable Unit on the same terms and conditions as the terminated lease, except for any changes permitted by the lease, this Agreement, or applicable law.
(j) Prohibition Against Discrimination. Developer shall not discriminate against any tenant or potential tenant on the basis of sex, color, race, religion, ancestry, national origin, age, pregnancy, marital status, familial status, family composition, sexual orientation, gender, gender identity, gender expression, source of income, disability, veteran or military status, genetic information, or the potential or actual occupancy of minor children. Developer further agrees to take affirmative action to ensure that no such person is discriminated against for any of the above mentioned reasons by its agents or employees. (k) Management Plan. Developer shall prepare a management plan for the Affordable Units that provides for the implementation of the requirements in this Agreement, including but not limited to the marketing of the Affordable Units, tenant selection criteria and process, waiting list management, verification of income, setting utility allowances for Affordable Rent, and any other matter related to management of the Affordable Units (“Management Plan”).

The Management Plan shall include specific affirmative marketing plans that are intended to make the Affordable Units available for occupancy to Qualifying Households as soon as practical after issuance of a certificate of occupancy for the Density Bonus Units. The Management Plan shall be submitted to the City Manager, or its designee, for approval, which the City shall make a good faith effort to approve within a reasonable period of time, which shall not be unreasonably withheld, and attached as Exhibit (C) to this Agreement and incorporated herein by reference.

The City's Planning Commission shall have the right to review the Management Plan prior to City approval.
(l) Annual Report. On or before the annual anniversary of the recording of this Agreement, and the same date each year thereafter, Developer shall provide the City with an annual report that sets forth the number of Affordable Units that are rented or vacant, the dates of any vacancies and new leases by each Affordable Unit, certification of compliance with all requirements to verify income for Qualifying Households, the cost of utilities for the Affordable Units and any charges to tenants of the Affordable Units for the utilities, and any other information reasonably required by the City to ensure compliance with this Agreement.

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AGENDA VERSION
9 4. Developer Covenant Regarding Lease of Affordable Units. Developer, for itself, its successors, assignees and affiliates, covenants and agrees that, if any Affordable Unit is rented or leased during the Term, the rental or lease of the Affordable Unit shall be accomplished through a written lease agreement and all of the following restrictions shall apply:
(i) Developer shall provide a legible copy of this Density Bonus Agreement to each prospective tenant of any Affordable Unit, prior to entering into a lease with such tenant.
(ii) The lease for each Affordable Unit shall expressly state that the lease is subject and subordinate to this Density Bonus Agreement and shall incorporate each and every provision of this Density Bonus Agreement, either expressly or by reference. (iii) Developer shall not lease an Affordable Unit to any occupant with any family relationship to Developer or who owns, directly or indirectly, any interest in the ownership. For purposes of this section, indirect ownership by an individual shall mean ownership by a family member, ownership by a corporation, partnership, estate or trust in proportion to the ownership or beneficial interest in such corporation, partnership, estate or trust held by the individual or a family member, and ownership, direct or indirect, by a partner of the individual.
(iv) Developer shall: (a) maintain and operate all units on the Property so as to provide decent, safe and sanitary housing consistent with federal housing quality standards and the Redlands Municipal Code; (b) make any required repairs or provide any required cleanup; and (c) provide the Affordable Units with the same levels of services and maintenance as are provided to any of the other dwelling units on the Property. (v) A tenant occupying an Affordable Unit may not sublet the unit without the written permission of both Developer and City. The City shall not grant permission to lease, rent, or sublet the Affordable Unit if it finds that the prospective tenant or occupant is not an Qualifying Household. Any individual who subleases an Affordable Unit in violation of the provisions of this Agreement shall be required to forfeit to City all monetary amounts so obtained.
(vi) The City shall have a right of first refusal to lease any or all of the Affordable Units at the rent that would be paid by a Very Low Income Household, so long as City exercises such right within seven (7) business days of Developer requesting City’s approval to identify such Affordable Unit(s) on the Affordable Unit List. (vii) Any deed that conveys an Affordable Unit shall contain a covenant stating that the Developer shall not sell, rent, lease, sublet, assign or otherwise transfer any interests for the same if the sales or rental price of the Affordable Unit is inconsistent with the limits established for a Qualifying Household.

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AGENDA VERSION
10 (viii) The City shall have the authority to enter into other agreements with the Developer, or purchasers of the Property, as may be necessary to ensure that the Affordable Units are continuously occupied by a Qualifying Household.

5. Density Bonus; Concessions; Waivers. In exchange for the agreement to the construct the Affordable Units on the terms and conditions set forth herein, and for purposes of compliance with the Density Bonus Law, the Parties agree to the following:
(a) Developer shall be granted a Density Bonus equal to fifty percent (50%) for the proposed three-hundred and twenty-eight (328) Base Units resulting in a density that allows an additional one-hundred and sixty-four (164) units on the Property. Accordingly, under this Agreement, Developer is entitled to construct up to four hundred and ninety-two (492) total units on the Property.
(b) The City agrees to the Height Concession and Fence Concession as requested.
(c) The Parties agree that the Financial Assistance Concession shall be satisfied by a loan from the City in a principal amount of One Million Five Hundred Thousand Dollars ($1,500,000.00) by providing a loan on the terms and conditions set forth in the Loan Agreement, as approved by the City Council. The Financial Assistance Concession, as implemented by the Loan Agreement, is subject to available funds from the City’s Inclusionary Housing Fund, which shall be deposited into escrow, on behalf of Developer, for purposes of paying development impact and permit fees to the City. Developer agrees that, prior to issuance of a building permit for the Density Bonus Units, it shall pay all development impact and permit fees imposed by the City for the Density Bonus Units that are not paid directly from escrow as part of the Financial Assistance Concession, or deferred on the terms and conditions set forth in the Loan Agreement.

Developer agrees that the Developer Concessions, as agreed to herein, fully satisfy the City’s obligation under the Density Bonus Law.

6. Permits and Processing; Compliance with Laws.
(a) Developer, at its sole cost and expense, shall secure or cause to be secured any and all permits that may be required by City or any other federal, state, or local government entity having or claiming jurisdiction over the Property or Project. Upon securing any and all permits, Developer shall carry out and perform the development, construction, management, maintenance and rental of the Project in conformity with all applicable federal, state, and local laws and regulations, and all conditions of approval issued for the Project. (b) City shall have no responsibility for the construction, installation, management, operation or maintenance of the Project.

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AGENDA VERSION
11 (c) Developer acknowledges and understands that, except for the approval of this Density Bonus and the Developer Concessions, this Agreement shall not constitute an amendment, modification, enlargement or other change to the Entitlements.

Developer shall be obligated and solely responsible for applying for, obtaining, and complying with any further approvals or permits necessary.
(d) The Parties agree that the Entitlements for the Project shall be deemed modified to allow for the Density Bonus, the Height Concession, and Fence Concession, and the Financial Assistance Concession, subject to the covenants and restrictions set forth herein to develop and operate the Affordable Units. Developer further agrees and acknowledges that compliance with this Agreement is a requirement of the Entitlements. (e) Developer acknowledges that the City has not made any representation, express or implied, to Developer or any person associated with Developer regarding whether or not laborers employed relative to the construction of the Project must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et seq, or pursuant to the federal Davis-Bacon Act (40 U.S.C. 3141), or any other law governing wages paid to laborers (collectively, “Prevailing Wage Laws”). Developer represents and warrants that it is familiar with the Prevailing Wage Laws and that Developer shall determine whether Prevailing Wage Laws apply to the Project. To the extent applicable, and without limitation, Developer agrees and acknowledges it shall have the sole responsibility to determine whether or not laborers employed relative to the construction of the Project must be paid in accordance with Prevailing Wage Laws and that Developer shall comply with all other applicable requirements of the Prevailing Wage Laws. Developer shall defend, indemnify and hold City, the City, its elected officials, officers, employees, and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. (f) Nothing contained in this Agreement shall require Developer or City to do anything contrary to or refrain from doing anything required by federal or state law, or regulations promulgated thereunder, which are applicable to the construction, management, maintenance, and rental of the Affordable Units and the Project.

7. No Further Incentives, Concessions, or Waivers. Developer acknowledges and agrees that no other incentives, concessions, or waivers have been requested, and that City has fully satisfied any duty City may have under the Redlands Municipal Code, the Density Bonus Law, or any other law or regulation applicable to the Project, to provide any development incentive or concession to Developer, including the waiver or reduction of any building, zoning, or other requirement. By this Agreement, Developer releases any and all claims Developer may have against the City related to or arising from, in any way, City’s obligation to waive requirements of or provide development incentives or concessions pursuant to any state, federal, or local law, rule, or regulation applicable to the Project.

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AGENDA VERSION
12 8. Term. The Term of this Agreement shall begin upon execution of this Agreement by both Parties and shall end fifty-five (55) years from the date the fiftieth (50th) Affordable Unit is rented to an Affordable Household. Pursuant to Paragraph 3(b)(iv) of this Agreement, each individual Affordable Unit approved by the City shall be rented to Very Low Income Households for a period of fifty-five (55) years, which period shall commence on the date the individual Affordable Unit is rented to a Very Low Income Household. After the fifty-five (55) year period lapses for an individual Affordable Unit, it shall no longer be required to be leased to a Very Low Income Household.

9. Agreement to be Recorded; Priority. Within sixty (60) days of execution of this Agreement, it shall be recorded in the Official Records of San Bernardino County, California as senior, non-subordinate covenants and as an encumbrance running with the land for the full Term of this Agreement. In no event shall this Agreement be made junior or subordinate to any deed of trust or other document providing financing for the construction or operation of the Project or any other lien or encumbrance whatsoever for the entire fifty-five (55) year Term of this Agreement. Notwithstanding anything to the contrary herein, the City shall have the discretion to subordinate this Agreement to regulatory restrictions of public lender(s) restricting occupancy of units in the Project to Affordable Housing. Upon a determination by the City Manager that the conditions in this Paragraph have been satisfied, the City Manager or the City Manager’s designee will be authorized to execute the approved subordination agreement without the necessity of any further action or approval by the City Council. The terms of this Paragraph 9 are not applicable to the Financial Assistance Concession.

10. Liquidated Damages. Developer acknowledges that the City is implementing the goals, objectives and policies of the City’s General Plan Housing Element, and that City has granted incentives and/or concessions to Developer in recognition of Developer’s designation of fifty (50) Affordable Units. However, it is extremely difficult and impractical to ascertain the extent of the damages to City, therefore, in addition to any other legal or equitable remedies, City may have, Developer and City agree that if the Affordable Units in the Project are not rented with Affordable Rents in accordance with the provisions of this Agreement, as liquidated damages, City shall be entitled to recover from Developer the amount of any rents received by Developer from any units in excess of the limits of Affordable Rent. This liquidated damages provision relates solely and exclusively to a breach of this Agreement arising from renting the Affordable Units on terms that exceed the limits of Affordable Rent. Nothing in this Liquidated Damages clause shall limit or be construed to limit City’s right to recover the City Loan for a breach of the Loan Agreement or enforce the City’s rights under the Loan Agreement or the Deed of Trust securing the City Loan.

11. Indemnification. Developer shall defend, indemnify and hold harmless City and its officers, agents, employees, representatives, and volunteers (collectively, “Indemnitees”) from and against any loss, liability, claim or judgment relating in any manner to this Density Bonus Agreement. Developer shall not be required to indemnify and hold harmless Indemnitees for liability attributable to the negligence or willful misconduct of Indemnitees, provided such Redlands Regular Meeting of 10/01/24
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13 negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where an Indemnitee is shown to have been negligent and where Indemnitees’ negligence accounts for only a percentage of the liability involved, the obligation of Developer will be for that entire portion or percentage of liability not attributable to the negligence of Indemnitees.

12. City’s Right to Inspect Affordable Units. City may inspect the Affordable Units and any Candidate Units at any reasonable time for so long as this Agreement remains in effect, subject to reasonable notice to the tenant of an Affordable Unit(s) or Candidate Unit, to determine Developer’s compliance with this Agreement. Subject to any requirements of federal or state law, upon request by City, Developer (or its agent or successors or assigns responsible for management of the Project) shall provide notice to a tenant of any inspection pursuant to this Paragraph 12.

13. Defaults and Remedies. City shall have the right to specifically enforce each and every covenant, condition, restriction, and provision in this Agreement and Developer hereby agrees and acknowledges that money damages are an inadequate remedy for any default under this Agreement.
(a) Default. A party shall be in default of this Agreement if it breaches any term or provision of this Agreement, and fails to correct the violation within thirty (30) days after receipt of notice from the other party; provided, however, if a longer period to cure the violation is reasonably necessary, and the party in breach of the Agreement is diligently pursuing a cure, then it shall have a reasonable time necessary to cure the breach, but not to exceed ninety (90) days.
(b) Remedies. Upon a default of this Agreement, City may institute any appropriate legal actions or proceedings necessary to enforce this Agreement, including but not limited to actions for injunctive relief or damages. The remedies allowed under this Agreement include enforcement of all requirements of Developer to comply with the Redlands Municipal Code, the Entitlements, and any and all remedies allowed under the Redlands Municipal Code for violations of its provisions. This Agreement is not intended to and shall not limit any remedies available under the Loan Agreement.

14. Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure by a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of such Party’s right to insist and demand strict compliance by the other Party with the terms of this Agreement thereafter.

15. Attorney’s Fees. In the event any action is commenced to enforce or interpret the terms or conditions of this Agreement, the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorney’s fees, including fees for use of in-house counsel by a Party.

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AGENDA VERSION
14 16. Time. Time is of the essence in this Agreement.

17. Notices. Any approval, disapproval, demand, document or other notice (“Notice”) which either Party may desire to give to the other Party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by reputable document delivery service such as Federal Express that provides a receipt showing date and time of delivery, or (iii) mailing in the United States mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below, or at any other address as that party may later designate by Notice:

Developer: Venue at Orange LLC, a Delaware Limited Liability Company
11230 Sorrento Valley Road, Suite 140
San Diego, CA 92121
Attention: Tim Barzal

And a copy to: Cox, Castle & Nicholson
3121 Michelson Drive, Suite 200
Irvine, CA 92612
Attention: Morgan Gallagher, Esq.

City: City of Redlands
35 Cajon Street
Redlands, California 92373
Attention: City Clerk

With a copy to: City Attorney
35 Cajon Street
Redlands, California 92373

Such addresses may be changed by notice to the other party given in the same manner as provided above.

18. Third Party Beneficiaries. The Parties acknowledge and agree there are no third party beneficiaries of this Agreement. City and Developer shall have full right and ability to enforce each and every covenant and restriction in this Agreement. No other person or entities shall have any right of action hereunder.

19. Successors and Assigns. This Agreement shall run with the land, and all of the terms, covenants and conditions of this Agreement shall be binding upon Developer and City and the permitted successors and assigns of Developer and City. Whenever the terms Redlands Regular Meeting of 10/01/24
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AGENDA VERSION
15 “Developer” or “City” are used in this Agreement, such terms shall include any other successors and assigns as herein provided.

20. Project as Private Undertaking. It is specifically understood and agreed by and between the Parties hereto that the development of the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants, and conditions contained in this Agreement. No partnership, joint venture, or other association of any kind is formed by this Agreement. The only relationship between City and Developer is that of a government entity regulating the development of private property and the Developer of such property.

21. Entire Agreement. This Agreement and all of its Exhibits set forth and contain the entire understanding and agreement of the Parties, and there are no oral or written representations, understandings or ancillary covenants, undertakings, or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings, or covenants shall be admissible in any proceedings of any kind or nature to interpret or determine the terms or conditions of this Agreement.

22. Partial Invalidity. If any provision of this Agreement shall be declared invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

23. Interpretation and Governing Law. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purpose of the Parties hereto, and the rule of construction that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California.

24. Amendment. This Agreement may not be changed orally, but only by an agreement in writing signed by Developer and City. The City Manager, or the City Manager’s designee, may execute an amendment to this Agreement that is necessary to implement the provisions stated herein; provided, however, that any relating to the term, number or percentage or type of Affordable Units, any of the income or rental restrictions under this Agreement, or the number or type of any incentives or concessions given by the City, must be approved by the City Council.

25. Counterparts. This Agreement may be executed in two or more separate counterparts, each of which, when so executed, shall be deemed to be an original. Such counterparts shall, together, constitute and shall be one and the same instrument. This Agreement shall not be effective until the execution and delivery by the Parties of at least one set of counterparts. The Parties hereunder authorize each other to detach and combine original signature pages and consolidate them into a single identical original. Any one of such completely executed counterparts shall be sufficient proof of this Agreement.

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AGENDA VERSION
16 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first set forth above.

DEVELOPER:

Venue at Orange LLC , a Delaware Limited Liability
Company

By: _______________________________________
Tim Barzal
Its:________________________________________

Date: _________________

*Developer signature to be notarized.

CITY OF REDLANDS , a California municipal
corporation

By: _______________________________________
Eddie Tejeda, Mayor

Date: ___________________
ATTEST:

___________________________
Jeanne Donaldson, City Clerk

APPROVED AS TO FORM:

___________________________

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AGENDA VERSION
17 ACKNOWLEDGEMENT

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

STATE OF CALIFORNIA )

COUNTY OF )
On _________________, 2024 before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature:

(seal)

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AGENDA VERSION
18 EXHIBIT A

DESCRIPTION OF SUBJECT PROPERTY

[TO BE ADDED]

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AGENDA VERSION
19 EXHIBIT B

SITE PLAN

[TO BE ADDED]
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20 EXHIBIT C

MANAGEMENT PLAN

[TO BE ADDED]

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777 SOUTH FIGUEROA STREET, SUITE 2555  LOS ANGELES, CALIFORNIA 90017  PHONE 213.622.8095 2407013.RED:KHH
WWW.KEYSERMARSTON.COM 18500.004.004

ADVISORS IN:

Real Estate
Affordable Housing
Economic Development

BERKELEY
Debbie M. Kern
David Doezema

LOS ANGELES
Kathleen H. Head
Kevin E. Engstrom
Julie L. Romey
Tim R. Bretz

S

AN DIEGO
Paul C. Marra
Linnie A. Gavino

EMERITUS
A. Jerry Keyser
Timothy C. Kelly

MEMORANDUM

At your request, Keyser Marston Associates, Inc. (KMA) prepared a financial analysis of the proposed development on a 3.2 acre portion of the property located at 1600 Orange Avenue (Site). Luxview Properties (Developer) submitted an application to the City of Redlands (City) to use the California Government Code Section 65915 et seq. (Section 65915) density bonus to allow 164 units to be developed on the Site.

Section 65915 (d)(2) allows the Developer to request concessions or incentives that result in identifiable and actual cost reductions.
1 One of the concessions being
requested by the Developer is a $1.5 million loan from the City that will be forgiven over a 55-year period.

The purpose of the following KMA analysis is to determine whether the assistance being requested is required to make the “Proposed Project” financially feasible.

EXECUTIVE SUMMARY
The results of the following KMA analysis can be summarized as follows:

1 Section 65915 does not identify any differences between what constitutes a concession versus an incentive. The term concession is used from this point forward in this analysis.

To: Brian Desatnik, Director of Development Services
City of Redlands
From: Kathleen Head
Date: August 1, 2024
Subject: Financial Gap Analysis: Venue at Orange Phase 2

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1. The Developer has the right to request three concessions under the benefits provided by Section 65915 (d)(2)(C).

2. The Developer’s request for financial assistance fulfills the requirement that a concession result in identifiable and actual cost reductions.

3. The Proposed Project exhibits a $1.59 million financial gap. As such, the Developer’s request for a $1.5 million forgivable loan is supported by the KMA financial analysis.

BACKGROUND STATEMENT
The City previously approved the 328 unit Venue at Orange for development on the Site. In December 2022, the Developer submitted a Section 65915 density bonus application to the City. The fundamental terms are:

1. The Section 65915 density bonus requirements are calculated using the base density allowed under the Site’s zoning standards. The Site’s base zoning allows for the development of 328 units.

2. The Developer is proposing to provide 50 very low income units in the Proposed Project. This represents 15% of the units allowed by the Site’s base zoning.

3. Under Section 65915 (f)(2) the Developer is entitled to a 50% density bonus.

4. A 50% density bonus applied to 328 base zoning units allows for an additional 164 units to be developed:
a. 114 additional market rate units; and
b. 50 very low income units.

5. Section 65915 (d)(2)(C) allows the Developer to request three concessions. The Developer requested the following concessions:
a. An increase in building height from three to four stories; b. An increase in a perimeter wall fence height requirement from six to eight feet; and
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c. A $1.5 million loan from the City that would be forgiven over a 55-year term.

6. Section 65915 (e)(1) prohibits a jurisdiction from applying any development standard that will have the effect of precluding the construction of a project at the density allowed by Section 65915 (b). The Developer is requesting six development standards waivers under the auspices of this provision.

FINANCIAL GAP ANALYSIS
KMA prepared a pro forma analysis to assist in the financial gap analysis. The pro forma analysis follows this memorandum, and is organized as follows:

Pro Forma Analysis Organization
Table 1: Estimated Development Costs
Table 2: Estimated Stabilized Net Operating Income
Table 3: Estimated Financial Gap

Estimated Development Costs (Table 1)
KMA reviewed the Developer’s development cost estimates, and then independently prepared a pro forma analysis for the Project. The resulting development costs are estimated as follows:

PROPERTY ACQUISITION COSTS
The Developer allocated 100% of the property acquisition costs to Venue at Orange Phase

1. No property acquisition costs are included in the KMA pro forma analysis.

DIRECT COSTS
The direct cost estimates included in this analysis are based on the assumption that the Proposed Project will not be subject to prevailing wage requirements. The direct costs applied in this analysis can be detailed as follows:

1. A $216,000 allowance is provided for the provision of a water line that is separate and independent from the water lines that serve Venue at Orange Phase 1.

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2. The on-site improvement costs are estimated at $25 per square foot of land area.

This includes the costs associated with building at grade parking spaces.

3. The residential building costs are estimated at $185 per square foot gross building area (GBA).

4. The Developer included a $150,000 allowance for furnishing, fixtures and equipment.

5. A 12.5% allowance is provided for contractor costs, liability insurance, construction bonds and a direct cost contingency allowance.

KMA estimates the total direct costs at $37.85 million, which equates to $230,800 per unit.

INDIRECT COSTS
The indirect costs are estimated as follows:

1. The architecture, engineering and consulting costs are estimated at 5% of direct costs.

2. The Developer estimates the public permits and fees costs at $2.9 million. This includes the impact fees that comprise the $1.5 million forgivable loan that is being requested by the Developer.

3. The taxes, insurance, legal and accounting costs are estimated at 2.0% of direct costs.

4. A marketing and leasing cost allowance of $5,000 per unit is provided.

5. The development management fee, which is used for general and administrative expenses, is set at 3.5% of direct costs.

6. An indirect cost contingency allowance that is equal to 5% of other indirect costs is provided.

KMA estimates the total indirect costs at $8.08 million.

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FINANCING COSTS

1. The interest costs incurred during the construction and absorption period are estimated based on the following assumptions:
a. 100% of the development costs are funded with debt and equity at a blended rate of 8.25%.
b. The construction period is estimated at 18 months, and the absorption period is estimated at six months.
c. A 60% average outstanding funds balance is estimated over the construction period, increasing to 100% during the absorption period.

2. The loan origination fees are estimated based on the following assumptions:
a. The construction loan is underwritten at a 60% loan to value ratio. b. The loan origination fees are set at one point.

KMA estimates the financing costs at $6.37 million.

TOTAL DEVELOPMENT COSTS
KMA’s estimate of the total development costs is presented is detailed in Table 1 and summarized in the following table:

Estimated Development Costs
Property Acquisition Costs $0
Direct Costs 37,851,000
Indirect Costs 8,080,000
Financing Costs 6,375,000
Estimated Total Development Costs $52,306,000

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Estimated Stabilized Net Operating Income
INCOME
Market Rate Rents
The Developer provided the City and KMA with a recent rent roll for Orange at Venue Phase

1. This served as the basis for the following market rents that are used in this analysis:

Estimated Market Rents
Number of
Bedrooms
Unit Size
(Square Feet)
Number of
Units
Monthly
Rent
Annual Market
Rent Income
1 674 51 $2,307 $1,411,900
1 783 4 $2,551 122,400
2 1,045 13 $2,739 427,300
2 1,158 46 $2,739 1,511,900
Totals 114 $3,473,500

Very Low Income Rents
Section 65915 (c)(1) defines the affordable rents for density bonus projects based on the calculation methodology imposed by California Health and Safety Code Section 50053.

Under this methodology, the affordable rents for very low income units are calculated based on 50% of the San Bernardino County median income for benchmark household sizes equal to the number of bedrooms in the unit plus one.

The applicable very low income rents in 2024 are calculated as follows:

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2024 Very Low Income Rent Calculations
One Bedroom
Units
Two Bedroom
Units
Benchmark Household Size 2 3
Area Median Income (AMI) $78,000 $87,750
Very Low Income as a % of AMI 50% 50%
Income Allotted to Housing Expenses 30% 30%
Annual Gross Available Income $11,700 $13,162
Monthly Gross Available Income $975 $1,097
(Less) Utility Allowance 2 (185) (261)
Net Very Low Income Rents $790 $836

Other Income
The Developer estimates that the Proposed Project will generate the following other income:

1. Miscellaneous income is estimated at $7.00 per unit per month across all 164 units.

2. Metered utility revenues from the 114 market rate units are estimated at $60 per unit per month.

Effective Gross Income
The resulting gross income is estimated to totals $4.06 million. When that is reduced by a 5% allowance for vacancy and collection costs, the effective gross income is estimated at $3.85 million.

2 Based on the Housing Authority of the County of San Bernardino utility allowance schedule for apartment development effective as of October 1, 2023. Assumes the units are served by all electric appliances.

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OPERATING EXPENSES
KMA estimated the operating expenses for the Proposed Project based on the following assumptions:

1. The general operating expenses are estimated at $5,000 per unit per year.

2. The property taxes are estimated based on the following assumptions:
a. The estimated stabilized net operating income is capitalized at a 4.25% rate to estimate the value of the Proposed Project.
b. The property tax rate is set at 1.15% of the estimated value.

3. A $150 per unit per year allowance is provided to fund a replacement reserve account.

Based on the preceding assumptions, the operating expenses are estimated at $9,060 per unit per year. This equates to total operating expenses of $1.48 million.

ESTIMATED STABILIZED NET OPERATING INCOME
The KMA estimate of stabilized net operating income is summarized in the table below and detailed in Table 2.

Estimated Stabilized Net Operating Income
Effective Gross Income $3,854,300
Financing Costs (1,485,800)
Estimated Stabilized Net Operating Income $2,368,500

Estimated Financial Gap (Table 3)
The financial gap is equal to the difference between the estimated value of the Proposed Project and the estimated development costs plus the threshold profit that would be required to attract investment to the Proposed Project. The components of the financial gap analysis can be described as follows:

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1. The value of the Proposed Project is estimated at $55.7 million based on the following assumptions:
a. The stabilized net operating is estimated at $2.37 million. b. A 4.25% capitalization rate is used to estimate the value.

2. The offsets to this value are estimated to total $57.3 million, and they are comprised of the following components:
a. The development costs are estimated at $52.3 million. b. The threshold profit is set at 9% of value, which equates to $5.0 million.

The resulting financial gap is presented in the following table:

Estimated Financial Gap
Estimated Value of the Proposed Project $55,729,000
(Less) Offsets to Value (57,322,000
Estimated Financial Gap ($1,593,000)

CONCLUSIONS
Based on the results of the preceding analysis KMA has reached the following conclusions:

1. The Developer has the right to request three concessions under the benefits provided by Section 65915 (d)(2)(C).

2. The Developer’s request for financial assistance fulfills the requirement that a concession result in identifiable and actual cost reductions.

3. The Proposed Project exhibits a $1.59 million financial gap. As such, the Developer’s request for a $1.5 million forgivable loan is supported by the KMA financial analysis.

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TABLE 1

ESTIMATED DEVELOPMENT COSTS

KMA PRO FORMA
VENUE AT ORANGE - PHASE 2

REDLANDS, CALIFORNIA
$0
I. Property Acquisition Costs 1
II. Direct Costs 2
Water Facilities Improvements $216,000
On-Site Improvements 139,392 Sf Land $25 /Sf Land 3,418,000 Residential Building Costs 161,672 Sf Res GBA $184 /Sf GBA 29,813,000 Furnishings, Fixtures & Equipment 150,000
Contractor Fees / General Requirements 9.0% Construction Costs 3,010,000 General Liability Insurance / Const Bonds 1.5% Construction Costs 502,000 Contingency Allowance 2.0% Other Direct Costs 742,000
Total Direct Costs 164 Units $230,800 /Unit $37,851,000 III. Indirect Costs
Architecture, Engineering & Consulting 5.0% Direct Costs $1,893,000 Permits & Fees 3 164 Units $17,683 /Unit 2,900,000
Taxes, Ins, Legal & Accounting 2.0% Direct Costs 757,000 Marketing & Leasing 164 Units $5,000 /Unit 820,000
Development Management Fee 3.5% Direct Costs 1,325,000
Contingency Allowance 5.0% Other Indirects 385,000
Total Indirect Costs $8,080,000
IV. Financing Costs
Interest During Construction 4 $52,306,000 Loan Amount 8.25% Interest $6,041,000 Loan Origination Fees 60% Loan to Value 1.00 P oints 334,000 Total Financing Costs $6,375,000
V. Estimated Total Development Costs 164 Units $318,900 /Unit $52,306,000 1 The Developer attributed all the property acquisition costs to Phase 1 of the project. 2 3 Based on the Developer estimate. Includes the impact fees the Developer is requesting to have waived. 4 Assumes an 18-month construction period with a 60% average outstanding balance and a 6-month absorption period with a 100% average outstanding balance.

Based on a construction bid prepared on Pacific Coastal Development Inc. on July 1, 2024. The estimate is based on the assumption that the project will NOT be subject to prevailing wage requirements.

Prepared by: Keyser Marston Associates, Inc.

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TABLE 2

ESTIMATED STABILIZED NET OPERATING INCOME

KMA PRO FORMA
VENUE AT ORANGE - PHASE 2

REDLANDS, CALIFORNIA
I. Gross Income
Market Rate Units 1
Satsuma: 1-Bedroom Units @ 674 SF 51 Units $2,307 /Unit/Month $1,411,900 Mandarin: 1-Bedroom Units @ 783 SF 4 Units $2,551 /Unit/Month 122,400 Valencia Field: 2-Bedroom Units @ 1,045 SF 13 Units $2,739 /Unit/Month 427,300 Valencia Corner: 2-Bedroom Units @ 1,158 SF 46 Units $2,739 /Unit/Month 1,511,900 Very-Low Income Units 2
1-Bedroom Units @ 674 SF 25 Units $790 /Unit/Month 237,000 2-Bedroom Units @ 1,054 SF 25 Units $836 /Unit/Month 250,800 Other Income
Miscellaneous Income 3 164 Units $7 /Unit/Month 13,800
Ratio Utility Billing (RUBS) Income 3 114 Mkt Rate Units $60 /Unit/Month 82,100 Gross Income $4,057,200
(Less) Vacancy & Collection Allowance 5% Gross Income (202,900) Effective Gross Income $3,854,300
II. Operating Expenses
General Operating Expenses 164 Units $5,000 /Unit $820,000 Property Taxes 4 164 Units $3,910 /Unit 641,200
Replacement Reserve 164 Units $150 /Unit 24,600
Total Operating Expenses 164 Units $9,060 /Unit $1,485,800 III. Estimated Stabilized Net Operating Income $2,368,500 1 Based on the rents currently being achieved by the Phase 1 project. 2 3 Based on Developer estimates.
4 Based on a 4.25% capitalization rate and a 1.15% property tax rate.

Based on 2024 San Bernardino County incomes published by HCD. The rents are based on H&SC Section 50053. Utility allowances are based on the Housing Authority of the County of San Bernardino utility allowance schedule for apartment development effective as of 10/1/23: $185 for 1-bdrm units and $261 for 2-bdrm units. Assumes electric: cooking, heating, water heating; basic electric; and air conditioning.

Prepared by: Keyser Marston Associates, Inc.

Filename: 8 1 24 Venue at Orange P2; Pro Forma_KMA; trb Redlands Regular Meeting of 10/01/24
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TABLE 3

ESTIMATED FINANCIAL GAP

KMA PRO FORMA
VENUE AT ORANGE - PHASE 2

REDLANDS, CALIFORNIA
I. Estimated Project Value
Estimated Stabilized Net Operating Income See TABLE 2 $2,368,500 Capitalization Rate 4.25%
Total Estimated Project Value $55,729,000
II. Offsets to Value
Total Development Costs See TABLE 1 $52,306,000
Threshold Developer Profit 9% Total Estimated Project Value 5,016,000 Total Offsets to Value ($57,322,000)
III. Estimated Financial Gap ($1,593,000)
Prepared by: Keyser Marston Associates, Inc.

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AGENDA VERSION
1 CITY OF REDLANDS AFFORDABLE HOUSING

LOAN AGREEMENT
(Venue at Orange)

This Affordable Housing Loan Agreement (“Agreement”) is entered into as of _________, 2024 (Effective Date) by and between the CITY OF REDLANDS, a California municipal corporation (“City”), and VENUE AT ORANGE LLC , a Delaware Limited Liability Company (“Borrower”). The City and Borrower may be referred to individually as a “Party” or collectively as the “Parties.”

RECITALS
A. Borrower is the owner of approximately 21.8 acres of real property located at 1600 Orange Avenue in Redlands, California, which is more particularly described in the legal description attached hereto as Attachment No. 1 and incorporated herein by reference (“Property”).

B. Borrower is constructing a multi -family rental housing project on the Property, which, pursuant to a Density Bonus Agreement, comprises a total of ten separate buildings (plus a pool house) and as many as four -hundred and ni nety-two (492) units , and is receiving financial assistance through a loan from the City pursuant to this Agreement.

C. On or about October 15, 2019, the City granted to Borrower certain entitlements to develop three -hundred and twenty -eight (328) units on the Property (“ Base Units ”). These entitlements included adoption of a Mitigated Negative Declaration, adoption of a Socio - Economic Cost/Benefit Study, approval of Amendment No. 45 to the East Valley Corridor Specific Plan, approval of Tentative Tract Map No. 20244, and approval o f Commission Review and Approval No. 914, including the conditions of approval related thereto (collectively, the “Entitlements”).

D. Subsequent to the approval of the Entitlements, in or about December 2022, Borrower submitted a request for a density bonus as part of a revision to the Entitlements (Revised Application No. 1, hereafter the “ Revised Application”). As part of the Revised Application, Borrower represents that it will restrict fifty (50) units, equal to fifteen percent (15%) of the Base Units, for Very Low Income households. In exchange, Borrower seeks approval of a density bonus to develop an additional one-hundred and sixty-four (164) units (“Density Bonus Units”), obtain two waivers, and obtain three concessions or incentives: (1) an increase in the number of stories for the Density Bonus Unit buildings on the Property from three to four stories, (2) financial assistance from the City in the amount of One Million, Five Hundred Thousand Dollars ($1,500,000), and (3) an increase in the perimeter fence height requirement from six feet to eight feet. Collectively, the Base Units and the Density Bonus Units, and all related am enities, improvements, and obligations for operation of the units is referred to hereafter as the “Project.” E. As part of the requested density bonus, Borrower has requested financial assistance from the City in an amount equal to One Million, Five Hundred Thousand Dollars ($1,500,000.00) to offset a portion of the development impact and permit fees for the Density Bonus Units.

Pursuant to the Density Bonus Agreement and this Agreement, the City agrees to a loan in the Redlands Regular Meeting of 10/01/24
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AGENDA VERSION
2 amount of One Million Five Hundred Thousand Dollars ($1,500,000.00) (the “City Loan”). The City Loan will bear simple interest of three percent (3%) annually and will be paid directly from the City’s Inclusionary Housing Fund into an escrow account for the benefit of Developer for the exclusive use of payment of development impact fees and permit fees imposed on the Project. The City Loan is forgivable if Borrower complies with this Agreement and the Density Bonus Agreement, which imposes affordability cov enants on the Project for a term of fifty -five (55) years.

NOW, THEREFORE, City and Borrower hereby agree as follows:

AGREEMENT
100. DEFINITIONS
101. Terms. The following terms, as used in this Agreement, shall have the meaning ascribed them in this Section:
a. “Affiliate” means any other Person Controlling or Controlled by or under common Control with a specified Person.
b. “Agreement” means this Affordable Housing Loan Agreement. c. “Automobile Liability Insurance” means insurance coverage against claims of personal injury (including bodily injury and death) and property damage covering all owned, leased, hired and non -owned vehicles used by Borrower regarding the Project . The requirements of the Automobile Liability Insurance are further set forth in Section 410.1(b). d. “Borrower” has the meaning set forth in the introduction to this Agreement. e. “Builder’s Risk Insurance” means builder’s risk or course of construction insurance covering all risks of loss, less policy exclusions, on a completed value (non -reporting) basis, in an amount sufficient to prevent coinsurance, but in any event not less than one hundred percent (100%) of the completed value of the construction of the Project, including cost of debris removal (subject to a policy sublimit), but excluding foundation and excavations. Such insurance shall also: (a) grant permission to occupy; and (b) cover, for replacement cost, all materials on or about any offsite storage location intended for use in, or in connection with, the Property (subject to a policy sublimit). The requirements of the Builder's Risk Insurance policy are further set forth in Section 410(c).
f. “Certificate of Completion ” shall have the meaning set forth in Section 608.
g. “City” means the City of Redlands, California.
h. “City Deed of Trust ” means that certain Deed of Trust executed by Borrower in favor of City to secure the City Loan in substantially the form attached hereto as Attachment No. 3 that will be recorded against the Property. i. “City Loan” shall have the meaning set forth in Recital E.

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AGENDA VERSION
3 j. “City Promissory Note” means that certain Promissory Note executed by Borrower in favor of City in substantially the form attached hereto as Attachment No. 2 that will evidence the City Loan.
k. “Claim” means any claim, loss, cost, damage, expense, liability, Lien, action, cause of action (whether in tort, contract, under statute, at law, in equity or otherwise), charge, award, assessment, fine or penalty of any kind. l. “Conditions Precedent to Disbursement” has th e meaning set forth in Section 304.1.
m. “Control” means possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person and contractually bind such Person, whether by contract, or otherwise.
n. “Construction” means any alteration, construction, excavation, demolition, grading, development, expansion, reconstruction, redevelopment, repair, restoration, or other work affecting the Property.
o. “Density Bonus Agreement ” means the Density Bonus Agreement with Declaration of Affordable Housing Covenants and Restrictions ( Venue at Orange ), entered into between the Borrower and the City as of ___________, 2024, to which this Agreement is attached as Exhibit D, and which will encumber the Property.
p. INTENTIONALLY DELETED
q. “Effective Date” means the date first set forth in this Agreement above. r. “Environmental Claim” means any and all claims, demands, damages, losses, liabilities, obligations, penalties, fines, actions, causes of action, judgments, suits, proceedings, costs, disbursements and expenses, including reasonable attorney’s fees and costs and costs of environ mental consultants and other experts, and all foreseeable and unforeseeable damages or costs of any kind or of any nature whatsoever, directly or indirectly, relating to or arising from any actual or alleged violation of any Environme ntal Law or Hazardous Substance Discharge.
s. “Environmental Law” means any Federal or California law regarding any of the following at, in, under, above, or upon the Property: (a) air, environmental, ground water, or soil conditions; or (b) clean -up, remediation, control, disposal, generation, storage, release, discharge, transportation, use of, or liability or standards of conduct concerning, Hazardous Substances, as now or may, at any later time, be in effect. t. “GAAP” means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the accounting profession), or in such other statements by such other entity Redlands Regular Meeting of 10/01/24
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4 as may be in general use by significant segments of the United States accounting profession, which are applicable to the circumstances as of the date of determination. u. “Governmental Requirements ” means all laws, ordinances, statutes, codes, rules, regulations, orders and decrees, of the United States, the state, the county, City, or any other political subdivision in which the Property is located, and of any other political subdivision, agency or instrumentality exercising jurisdiction over City, Borrower or the Property. v. “Hazardous Substance” means any flammable substances, explosives, radioactive materials, asbestos, asbestos -containing materials, polychlorinated biphenyls, chemicals known to cause cancer or reproductive toxicity, pollutants, contaminants, hazardous wastes, medical wastes, to xic substances or related materials, explosives, petroleum, petroleum products and any “hazardous” or “toxic” material, substance or waste that is defined by those or similar terms or is regulated as such under any Law, including any m aterial, substance or waste that is: (a) defined as a “hazardous substance” under Section 311 of the Water Pollution Control Act (33 U.S.C. § 1317), as amended; (b) substances designated as “hazardous substances” pursuant to 33 U.S.C. § 1321; (c) defined as a “hazardous waste” under Section 1004 of the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901, et seq., as amended; (d) defined as a “hazardous substance” or “hazardous waste” under Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Reauthorization Act of 1986, 42 U.S.C. § 9601, et seq., or any so-called ‘superfund” or ‘superlien” law; (e) defined as a “pollutant” or “contaminant” under 42 U.S.C. § 9601(33); (f) defined as “hazardous waste” under 40 C.F.R. Part 260; (g) defined as a “hazardous chemical” under 29 C.F.R. Part 1910; (h) any matter within the definition of “hazardous substance” set forth in 15 U.S.C. § 1262; (i) any matter, waste or substance regulated under the Toxic Substances Control Act (“TSCA”) [15 U.S.C. Sections 2601, et seq.]; (j) any matter, waste or substance regulated under the Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801, et seq.; (k) those substances listed in the United S tates Department of Transportation (DOT) Table [49 C.F.R. 172.101]; (l) any matter, waste or substances designated by the EPA, or any successor authority, as a hazardous substance [40 C.F.R. Part 302]; (m) any matter, waste or substances defined as “hazardous waste” in Section 25117 of the California Health and Safety Code; (n) any substance defined as a “hazardous substance” in Section 25316 of the California Health and Safety Code; (o) any matter, waste, or substance that is subject to any other Law regulating, relating to or imposing obligations, liability or standards of conduct concerning protection of human health, plant life, animal life, natural resources, property or the enjoyment of life or property free from the presence in the environment of any solid, liquid, gas, odor or any form of energy from whatever source; or (p) other substances, materials, and wastes that are, or become, regulated or classified as hazardous or toxic under Law or in the regulations adopted pursuant to said Law, including manure, asbestos, polychlorinated biphenyl, flammable explosives and radioactive material. Notwithstanding the foregoing, “Hazardous Substances” shall not include such products in quantities as are customarily used in the construction, maintenance, develop ment or management of residential developments or associated buildings and grounds, or typically used in residential activities in a manner generally used in other comparable residential developments, or substances commonly ingested by a significant popula tion living within the Development including, without limitation, alcohol, aspirin, tobacco and saccharine.

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5 w. “Hazardous Substance Discharge” means any deposit, discharge, generation, release, or spill of a Hazardous Substance that occurs at on, under, into or from the Property, or during transportation of any Hazardous Substance to or from the Property, or that arises at any time from the Cons truction, use or operation of the Development or any activities conducted at on, under or from the Property, whether or not caused by a Party. x. “Land Use Laws” has the meaning set forth in Section 502. y. “Liability Insurance” means commercial general liability insurance provided by an insurance carrier having a rating of Best A -7 or better against claims for bodily injury, personal injury, death, or property damage occurring upon, in, or about the Property, the Development or adjoining streets or passageways, at least as broad as Insurance Services Office Occurrence Form CG0001, with a minim um liability limit of Ten Million Dollars ($10,000,000) for any one occurrence and which may be provided through a combination of primary and excess or umbrella insurance policies. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Development or the general aggregate limit shall be twice the required minimum liability limit for any one occurrence. The requirements of the Liability Insurance are further set forth in Section 410.1(a).
z. “Loan Documents ” means the documents, instruments and agreements evidencing and securing the Loan including, but not limited to, this Agreement, the City Promissory Note, the City Deed of Trust, and any amendments thereto as mutually agreed upon by the Parties.
aa. “Official Records ” means the Official Records of the County of San Bernardino, State of California.
bb. “Person” means any association, corporation, governmental entity or agency, individual, joint venture, joint -stock company, limited liability company, partnership, trust, unincorporated organization or other entity of any kind. cc. “Prevailing Wage Action” means any of the following: (a) any determination by the California Department of Industrial Relations that prevailing wage rates should have been paid, but were not; (b) any determination by the California Department of Industrial Relations that higher p revailing wage rates than those paid should have been paid; (c) any administrative or legal action or proceeding arising from any failure to comply with the Federal Davis-Bacon Act (codified as 40 U.S.C. §§ 3141 et seq.) or California Labor Code Sections 1720 through 1781, as amended from time to time, regarding prevailing wages, including maintaining certified payroll records; or (d) any administrative or legal action or proceeding to recover wage amounts at law or in equity.
dd. “Project” shall have the meaning set forth in Recital B. ee. “Project Documents” means all Construction and design contracts, plans and drawings, including all architectural documents, related to the Project. ff. “Property” shall have the meaning set forth in Recital A.

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6 gg. “Property Insurance” means insurance providing coverage for the Property and all improvements on or to the Property against loss, damage, or destruction by fire and other hazards encompassed under the broadest form of property insurance coverage then customarily used for like properties in the County of San Bernardino, in an amount equal to one hundred percent (100%) of the replacement value (without deduction for depreciation) of all improvements comprising the Development and the Project (excluding excava tions and foundations) and in any event sufficient to avoid co -insurance and with no co -insurance penalty provision, with “ordinance or law” coverage. To the extent customary for like properties in the County of San Bernardino at the time, such insurance shall include coverage for explosion of steam and pressure boilers and similar apparatus located on the Property; an “increased cost of construction” endorsement; and an endorsement covering demolition and cost of debris remova l, all subject to policy sublimits. The requirements of the Property Insurance are further set forth in Section 410.1(c).
hh. “Third Person” means any Person that is not a Party, an Affiliate of a Party, or an elected official, officer, director, manager, shareholder, member, principal, partner, employee or agent of a Party.
ii. Workers' Compensation Insurance . Workers ' compensation insurance complying with the provisions of California law and an employer’s liability insurance policy or endorsement to a liability insurance policy, with a minimum liability limit of One Million Dollars ($1,000,000) statutory per accident for bodily injury or disease, covering all employees of Borrower. The requirements of the Liability Insurance are further set forth in Section 410.1(d). 200. LOAN AGREEMENT
201. Loan. City hereby agrees to loan to Borrower One Million Five Hundred Thousand Dollars ($1,500,000.00), subject to the terms and conditions of the Loan Documents. The City Loan shall be made as follows: upon satisfaction of the terms and conditions required herein for the making of the City Loan, and no sooner than the date on which Borrower is required to pay all development impact fees to the City for the Project, the City will disburse the City Loan (the “City Loan Disbursement”) to an escrow account as set forth in Section 203.2. 201.1 Evidence of Loan. The City Loan shall be evidenced by, and repayable in accordance with, the City Promissory Note , which shall be executed prior to the City Loan Disbursement.
201.2 Security for Loan. The City Promissory Note shall be secured by the City Deed of Trust, which shall be recorded in the Official Records prior to issuance of a building permit for the Density Bonus Units.

202. Repayment of Loan.
202.1 Maturity Date. The full amount of the City Loan shall be due and payable, absent forgiveness of the City Loan in accordance with Section 202.4 of this Agreement, at the earlier of (i) an uncured Defau lt under this Agreement; or (ii ) on the date that is fifty -five (55) years from the date a final certificate of occupancy is issued for the Density Bonus Units (the “Maturity Date”).

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AGENDA VERSION
7 202.2 Loan Term. The City Loan shall have a term that commences when the City Promissory Note is executed by Borrower (the “Commencement Date”) and continues for a period of fifty-five (55) years from the date a final certificate of occupancy is issued for the Density Bonus Units (“Term”).
202.3 Interest Rate. The City Loan shall bear three percent (3%) simple interest per annum, pursuant to the City Promissory Note.
202.4 Forgiveness. The City Loan and all interest accrued thereon shall be forgiven in accordance with the below.
a. For each year of the Term following issuance of a final certificate of occupancy for the Density Bonus Units, if the Project is in compliance with the Loan Documents and the Density Bonus Agreement, the principal shall be reduced by one-fifty-fifth (1/55) of the original principal amount of the City Loan and the accrued interest for the prior year of the Term.
b. Upon the Maturity Date, unless there is a continuing Default, the remainder of any balance on the City Loan, and any accrued interest, shall be forgiven. 203. City Loan Disbursement.
203.1 The City Loan Disbursement shall be made upon the occurrence of both the following: (i) satisfaction of all Conditions Precedent to Disbursement set forth in Section 204 and (ii) the City has available proceeds in the amount of the City Loan in the City’s Inclusionary Housing Fund (“City Disbursement Date”).
203.2 The City Loan Disbursement shall be made by payment from the City into an escrow account established by agreement among the Parties. The funds deposited into the escrow account may only be used for payment of development impact fees and permit fees imposed by the City on the Project, upon written authorization by both Parties. 203.3 In the event that the Inclusionary Housing Fund does not have available funds to make the City Loan Disbursement at the time that the development impact fees for the Project are due, then the Parties shall enter into an agreement that defers development impact fees and permit fees in an amount not to exceed the amount of the City Loan, as authorized under California Government Code Section 66007, and the City Promissory Note and City Deed of Trust shall be modified accordingly. An agreement to defer development impact or permit fees as set forth herein shall require recording a lien against the Property for the amount of the deferred development impact and permit fees; provided, however, the deferral shall not affect or modify Developer's obligation to pay to City the amount of development impact fees or permit fees for the Project that exceed the amount of the City Loan. The Parties shall cooperate to prepare, execute and record any agreements or instruments required hereunder. Upon the Inclusionary Housing Fund having available revenues to disburse the City Loan, then the City Loan shall be disbursed from the Inclusionary Housing Fund according to this Agreement and the lien for deferred fees shall be released.

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AGENDA VERSION
8 204. Disbursement of Loan Funds.
204.1 Conditions Precedent to Disbursement . The City Loan is conditioned upon the satisfaction or waiver by City of each and all of the conditions precedent described below (“Conditions Precedent to Disbursement ”), which are solely for the benefit of the City, and which shall be fulfilled or waived by the time periods provided for herein. The Conditions Precedent to Disbursement include:
a. The Density Bonus Agreement , the City Promissory Note, and the City Deed of Trust shall have been duly executed prior to issuance of a building permit for the Density Bonus Units.
b. The Density Bonus Agreement and the City Deed of Trust shall have been recorded against the Property in the Official Records for the County of San Bernardino, subject only to those matters of public record to which the City consents in writing. c. Subject to expiration of any applicable cure period, Borrower shall not be in default of any of its obligations under the terms of the Density Bonus Agreement. d. Delivery of a binding commitment by a title insurance company acceptable to the City to issue a n ALTA lender’s policy of Title Insurance with any endorsements the City may reasonably require, insuring the City in the principal amount set forth in the City Promissory Note, of the validity and priority of the City Deed of Trust upon the Property, subject only to the liens and matters of record approved by the City in writing, and showing fee simple title to the Property in the name of the Borrower.
e. Borrower shall have provided the City with a copy of the resolution of the Borrower approving and authorizing execution of this Agreement and all documents contemplated hereby on behalf of Borrower and with such other documentation required by the City reg arding Borrower’s creation, status and authority to enter into this transaction. f. Borrower shall have provided City with a certificate showing it to be in good standing under the laws of the State of California. g. Borrower shall have satisfied all of the applicable terms and conditions precedent set forth in this Agreement, including without limitation providing evidence that it possesses the insurance required by Section 410 of this Agreement. h. All of the representations and warranties made by the Borrower in this Agreement and in the City Promissory Note, the City Deed of Trust, and the D ensity Bonus Agreement shall be true and correct in all material respects as of the date of the Loan Disbursement. i. City shall have available funds in the Inclusionary Housing Fund for disbursement of the City Loan.
205. City Not Liable. In no event shall City be liable to Borrower or any other party, including but not limited to any lender, contractor or subcontractor, for any damage whatsoever which may result in whole or in part from any action or inaction of City hereunder, includin g Redlands Regular Meeting of 10/01/24
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9 without limitation, failure or delay in making any disbursement of Loan funds, except to the extent of City’s breach of this Agreement, including failure to disperse funds pursuant to this Agreement, negligence or willful misconduct.
206. Contingent Obligation of the Inclusionary Housing Fund. Notwithstanding anything contained herein, the City's obligation to disburse the Loan is contingent upon the receipt of funds into the Inclusionary Housing Fund. The City shall not be required to advance or pay any moneys derived from any source of income other than the Inclusionary Housing Fund for the performance of any obligations contained herein. The obligation of the City to make the Loan is a special obligation of the City payable solely from the Inclusionary Housing Fund, and does not constitute a debt of the City within the meaning of any constitutional or statutory debt limitation or restriction.
300. REPRESENTATIONS AND WARRANTIES
301. City Representations. City represents and warrants to Borrower as follows:
301.1 Authority. City has full power and authority to execute and deliver this Agreement, to execute and deliver all applicable Loan Documents and to perform and observe the terms and provisions of all of the above.
301.2 No Conflict. To the best of City’s knowledge, City’s execution, delivery and performance of its obligations under this Agreement will not constitute a default or a breach under any contract, agreement or order to which City is a party or by which it is bound. 301.3 No Bankruptcy. City is not the subject of a bankruptcy proceeding. 301.4 No Condemnation . No condemnation proceeding or moratorium is pending or threatened against the Property or any portion thereof that would impair the use, occupancy or full operation of the Property in any manner whatsoever. 301.5 Subordination. Subject to this Section 301.5 and compliance with Section 401 of this Agreement, City agrees to subordinate the City Deed of Trust to a construction lender and permanent lender on the Project on the terms and conditions set forth herein. a. City agrees to subordinate the City Deed of Trust to one or more construction loans for the construction of the Density Bonus Units. b. Upon completion of construction for the Project and refinancing or conversion of construction financing to one or more permanent lenders, the City agrees to subordinate the City Deed of Trust to one or more permanent loans for the Project. c. The City’s approval of a subordination agreement for the City Deed of Trust, as provided for in this Section 301.5, is subject to all the following:
(1) the City’s receipt of an appraisal of the Property dated within the preceding ninety (90) days and otherwise in form and substance satisfactory to City which demonstrates to City’s reasonable satisfaction that the principal balance of the aggregate loans secured by the Property Redlands Regular Meeting of 10/01/24
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10 does not exceed ninety five percent (95%) of the fair market value of the Property (on an as-built basis with respect to the construction loan); and (2) City shall have not less than forty five (45) days to review and approve or disapprove a proposed subordination agreement. d. The City shall have the right and obligation to exercise commercial reasonableness in approving or disapproving a subordination agreement under this Section 301.5. e. Developer agrees and acknowledges that the Density Bonus Agreement is not subject to subordination and shall be an encumbrance on the Property senior to construction and permanent financing for the Project.
302. Borrower’s Representations. To induce City to enter into the Loan and provide the Loan funds pursuant hereto, Borrower hereby makes the following representations and warranties to City. The Borrower shall, upon learning of any fact or condition which would cause any of the warranties and representations in this Section not to be true, immediately provide written notice of such fact or condition to City.
302.1 Organization. Borrower is a Delaware limited liability company that is in good standing and authorized to do business under the laws of the State of California. 302.2 Authority to Borrow. Borrower has full power and authority to execute and deliver this Agreement, to accept the Loan contemplated hereunder, to execute and deliver all applicable Loan Documents and to perform and observe the terms and provisions of all of the above.
302.3 Authority of Persons Executing Documents . The applicable Loan Documents have been executed and delivered by persons who are duly authorized to execute and deliver the same for and on behalf of Borrower, and all actions required under the Borrower’s organizational documents and applicable governing law for the authorization, execution, delivery and performance of the Loan Documents have been duly taken. 302.4 No Conflict. The execution, delivery and performance by Borrower of the Loan Documents to which it is a party will not , to Borrower’s knowledge (i) violate any provision of any law, statute, rule or regulation or any order, writ, judgment, injunction, decree, determination or award of any court, governmental agency or arbitrator presently in effect having applicability to Borrower or the Property; or (ii) result in a breach of or constitute a default under any indenture, loan or credit agreement or any oth er agreement, lease or instrument to which Borrower is a party or by which any of its properties may be bound or, except as specifically contemplated herein, result in the creation of any lien on any asset of Borrower. 302.5 Compliance with Laws; Consent and Approvals. The construction of the Project shall comply with all Governmental Requirements, including all applicable directions, rules and regulations of the fire marshal, health officer, building inspector and other officers of any such government or agency as applicable.

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11 302.6 Valid Binding Agreement. The Loan Documents executed by Borrower constitute, or if not yet executed, will constitute when so executed, legal, valid and binding obligations of Borrower enforceable by and against it in accordance with their respective terms, subject to bankruptcy , insolvency, reorganization, moratorium, and other similar laws affecting the rights of creditors generally and general principals of equity. 302.7 Pending Proceedings . Borrower is not in default under any law or regulation or under any order of any court, board, commission or agency whatsoever, and there are no claims, actions, suits or proceedings pending or, to the knowledge of Borrower, threatened against or affecting Borrower, at law or in equity, before or by any court, board, commission or agency whatsoever which might, if determined adversely to Borrower, materially and adversely affect Borrower’s ability to repay the Loan or construct the Project. 302.8 No Material Adverse Event. There has been no material adverse change in the value or physical condition of the Property or in the financial condition of Borrower since June 3, 2024 when Borrower provided City with a proforma for the Project. 302.9 Accuracy. All reports, documents, instruments, information and forms of evidence delivered to City concerning the City Loan or security for the Loan or required by the Loan Documents are accurate, correct and sufficiently complete to give City true and accurate knowledge of their subject matter and do not contain any misrepresentation or omission. 302.10 Disclosure of Information . All material information concerning the Property known to Borrower, or that should have been known to Borrower in the exercise of reasonable care, has been disclosed to City. There are no facts or information known to Borrower, or that should have been known to Borrower in the exercise of reasonable care, that would make any of the information furnished to City by Borrower inaccurate, incomplete, or misleading in any material respect.
302.11 No Condemnation . No condemnation proceeding or moratorium is pending or threatened against the Property or any portion thereof that would impair the use, occupancy or full operation of the Property in any manner whatsoever. 302.12 FIRPTA. Borrower is not a “Foreign Person” within the meaning of the Foreign Investment in Real Property Tax Act ( “FIRPTA”), or is exempt from the provisions of FIRPTA.
400. COVENANTS OF BORROWER
401. Additional Borrower Financing. In addition to the Loan provided for herein, the Borrower has or will secure financing and/or funding in an amount sufficient to finance the construction and operation of the Project , inclusive of permanent financing for the Project (collectively, "Additional Borrower Financing"). Any financing agreement senior to the City Loan, inclusive of any loan or deed of trust to which Borrower requests subordination by City pursuant to Section 301.5, is subject to City’s written approval, which shall not be unreasonably withheld, provided that City is provided at least forty-five (45) days’ written notice of the terms and conditions of the Ad ditional Borrower Financing. Borrower shall not permit the Loan to Value Ratio of all aggregate loans on the Project, at any time, to be greater than ninety five percent (95%) Redlands Regular Meeting of 10/01/24
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12 (based on the most recent appraisal obtained pursuant to Section 301.5) . Any request to subordinate the Loan to Additional Borrower Financing shall be subject to the terms and conditions of Section 301.5.
402. Construction of Project. Borrower shall complete the Project in accordance with the provisions of this Agreement and in a good and worker-like manner in accordance with sound building practices as well as all Governmental Requirements. Borrower shall comply with all existing a nd future Governmental Requirements , Environmental Laws, and other laws, regulations, orders, building codes, restrictions and requirements of, and all agreements with and commitments to, all governmental, judicial or legal authorities having jurisdiction over the Property, including those pertaining to the con struction of the Project, and with all recorded covenants and restrictions affecting the Property. In the event of any material deviations from the terms of this Agreement, unworker -like performance, the use of defective materials, or the filing of any unapproved liens, City may order that the construction cease immediately, and Borrower agrees immediately to correct and remedy the same at its sole expense. 403. Operation of the Project. Borrower agrees for itself and its successors and assigns that the Property, upon completion of construction and issuance of a Certificate of Occupancy, shall be operated and maintained in accordance with the Density Bonus Agreement. 404. Permits, Licenses and Approvals. Borrower shall properly obtain, comply with and keep in effect all permits, licenses and approvals which are required to be obtained in order to construct the Project.
405. Prevailing Wages . Borrower acknowledges that the City has not made any representation, express or implied, to Borrower or any person associated with Borrower regarding whether or not laborers employed relative to the construction of the Project must be paid the prevailing per diem wage rate for their labor classification, as determined by the State of California, pursuant to Labor Code Sections 1720, et seq., or pursuant to the federal Davis-Bacon Act (40 U.S.C. 3141), or any other law or regulation governing wages paid to laborers (collectively, “Prevailing Wage Laws”). Borrower represents and warrants that it is familiar with the Prevailing Wage Laws and that Developer shall determine whether Prevailing Wage Laws apply to the Project . To the extent applicable, and without limitation, Borrower agrees and acknowledges that it shall have the sole responsibility to determine whether or not laborers employed relative to the construction of the Project must be paid in accordance with Prevailing Wage Laws or to comply with any applicable provisions of the Prevailing Wage Laws, including but not limited those regarding employment of apprentices, keeping and retaining records, posting the applicable wage rates, registration requirements, and any other applicable provision of Chapter 1 of Part 7 of Division 2 of the California Labor Code. Borrower shall defend, indemnify and hold City, the City, its elected officials, officers, employees, and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
406. RESERVED
407. Environmental Laws. Borrower shall keep and maintain the Property in compliance with, and may not cause or permit the Prop erty to be in violation of any Environmental Laws .

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13 or transport to or from the Property any Hazardous Substances except such of the foregoing as may be customarily used in similar projects and in accordance with all Environmental Laws and Governmental Requirements.
408. Notices to City . Borrower shall promptly notify City in writing of any of the following if any of the following affect Borrower’s ability to perform its obligations under this Agreement or the Density Bonus Agreement:
a. Any litigation or written notice of claim affecting Borrower, where the amount claimed is One Hundred Thousand Dollars ($100,000.00) or more and such claim is not covered by Borrower’s insurance;
b. Any lien, encumbrance, stop notice, or other claim is filed or recorded against the Property or any portion thereof; or
c. The institution of any litigation, arbitration or governmental proceeding, or the rendering of a judgment or decision in such litigation or proceeding, which may cause a material adverse effect to Borrower, the Property or the completion of the construction. 409. Conflict of Interest.
409.1 Borrower has disclosed to the City whether it has made any campaign contributions of more than $250 to any member of the City Council or other City elected officer, including but not limited to, Sheriff, Assessor-Recorder-Clerk, Auditor-Controller/Treasurer/Tax Collector and the District Attorney, within the earlier of: (1) the date of the submission of Borrower’s application for the Project, or (2) twelve (12) months before the date this Agreement was approved by the City Council. Borrower acknowledges that under Government Code section 84308, Borrower is prohibited from making campaign contributions of more than $250 to any member of the City Council or City elected officer for twelve (12) months after the City’s consideration of the Agreement. In the event of a proposed amendment to this Agreement, Borrower will provide the City a written statement disclosing any campaign contribution(s) of more than $250 to any member of the City Council or other City elected officer within the preceding 12 months of the date of the proposed amendment. Campaign contributions include those made by any agent/person/entity on behalf of the Borrower or by a parent, subsidiary or otherwise related business entity of Borrower.
409.2 Except for approved eligible administrative or personnel costs, no person described in Section 409.3 below who exercises or has exercised any functions or responsibilities with respect to the activities funded pursuant to this Agreement or who is in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a personal or financial interest or benefit from the activity, or have an interest in any contract, subcontract or agreement with respect thereto, or the proceeds thereunder, either for themselves or those with whom they have family or business ties, during, or at any time after, such person's tenure. Borrower shall exercise due diligence to ensure that the prohibition in this Section 7.8(a) is followed.
409.3 The conflict of interest provisions of this Section 409 apply to any person who is an employee, agent, consultant, officer, or any immediate family member of such person, Redlands Regular Meeting of 10/01/24
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14 or any elected or appointed official of the City, or any person related within the third (3rd) degree of such person.
409.4 In accordance with California Government Code Section 1090 and the Political Reform Act, California Government Code section 87100 et seq., no person who is a director, officer, partner, trustee or employee or consultant of Borrower, or immediate family member of any of the preceding, may make or participate in a decision, made by the City or a City board, commission or committee, if it is reasonably foreseeable that the decision will have a material effect on any source of income, investment or interest in real property of that person or Borrower. Interpretation of this section is governed by the definitions and provisions used in the Political Reform Act, California Government Code Section 87100 et seq., its implementing regulations manual and codes, and California Government Code Section 1090 410. Insurance.
410.1 Required Insurance . Unless City agrees in writing to the insurance requirements of a senior lender, Borrower shall procure and maintain for the duration of this Agreement, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work on or relating to the Project by Borrower, its agents, representatives, employees, or subcontractors. The purpose of this insurance is to protect City against all insurable Claims resulting from the actions of Borrower in connection with this Agreement, the Property and the Project . At the sole cost and expense of Borrower, the following insurance is required:
a. Comprehensive General Liability (CGL). Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal and advertising injury with limits no less than Five Million Dollars ($5,000,000) per occurrence. The policy shall have not less than a general aggregate limit of Ten Million Dollars ($10,000,000.00). The policy coverage must include: premises operations and mobile equipment; products and completed operations; broad form property damage (including completed operations); explosion, collapse, and underground hazards; personal injury; and, contractual liability.
b. Comprehensive Automobile Liability. Primary automobile liability insurance coverage must be written on ISO Business Auto coverage form CA 00001 for all owned, hired and non-owned automobiles or symbol I (any auto). The policy must have a combined single limit of not less than Five Million Dollars ($5,000,000) for bodily injury and property damage, per occurrence. If the Borrower is transporting one or more non-employee passengers in performance of contract services, the automobile liability policy must have a combined single limit of Five Million Dollars ($5,000,000) for bodily injury and property damage per occurrence. If Borrower owns no autos, a non-owned auto endorsement to the General Liability policy described above is acceptable. c. Builders' Risk/Property Insurance. Builders' Risk Insurance during the course of construction, and upon completion of construction, Property Insurance covering the Project, utilizing an "All Risk" (Special Perils) coverage form, covering all risks of loss, excluding earthquake, for one hundred percent (100%) of the completed value, naming the City Redlands Regular Meeting of 10/01/24
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15 as a Loss Payee, as its interests may appear. Flood insurance must be obtained if required by applicable federal regulations.
d. Workers’ Compensation/Employers Liability. Workers' Compensation insurance as required by the State of California, with Statutory Limits, and Employer's Liability with a limit no less than One Million Dollars ($1,000,000.00) per accident for bodily injury or disease, and covering all persons including volunteers providing services on behalf of the Borrower and all risks to such persons under this Loan Agreement. If Borrower has no employees, it may certify or warrant to the City that it does not currently have any employees or individuals who are defined as "employees" under the Labor Code and the requirement for Workers' Compensation coverage will be waived by the City. With respect to Borrowers that are non-profit corporations organized under California or federal law, volunteers for such entities are required to be covered by Workers' Compensation insurance e. Commercial Crime. Commercial crime insurance covering all officers and employees, for loss of City Loan proceeds caused by dishonesty, in a minimum amount of One Million Dollars ($1,000,000.00), naming the City a Loss Payee, as its interests may appear. 410.2 Nature of Insurance . All Liability Insurance, Property Insurance, Workers Compensation Insurance and Automobile Liability Insurance policies required by this Agreement shall be issued by carriers that: (a) are listed in the then current “Best’s Key Rating Guide—Property/Casualty—United States & Canada” publication (or its equivalent, if such publication ceases to be published) with a minimum financial strength rating of “A” and a minimum financial size category of “XI” (exception may be made for the California Compensation Insurance Fund when not specifically rated); and (b) are authorized to do business in California.

Borrower may provide any insurance under a “blanket” or “umbrella” insurance policy, provided that: (i) such policy or a certificate of such policy shall specify the amount(s) of the total insurance allocated to the Property and the Project, which amount(s) shall equal or exceed the amount(s) required by this Agreement; and (ii) such policy otherwise complies with this Agreement. 410.3 Policy Requirements and Endorsements. All insurance policies required by this Agreement shall contain (by endorsement or otherwise) the following provisions:
a. Insured. Comprehensive General Liability (CGL) Insurance and Automobile Liability Insurance policies shall name City or its successor in interest, as applicable, as “additional insured.” The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Borrower including materials, parts, or equ ipment furnished in connection with such work or operations and aut omobiles owned, leased, hired, or borrowed by or on behalf of the Borrower. Property Insurance and Builder’s Risk Insurance policies shall name City as a “loss payee.” To the extent that Borrower has a tenant or tenants on the Property that are required to secure Liability insurance under the terms of their lease with Borrower, such tenants shall similarly name City or its successor in interest as “additional insured”, and shall list City as a “loss payee” on Property Insurance and Builder’s Risk Insuranc e policies as required under terms of their lease. The coverage afforded to City shall be at least as broad as that afforded to Borrower (or Borrower’s tenant, as applicable) regarding the Property and the Project and may not contain any terms, conditions , exclusions, or limitations applicable to City that do not apply to Borrower.

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16 b. Primary and Non-Contributory Coverage. For any claims r elated to this Project, the Borrower’s insurance coverage shall be primary and non -contributory insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Borrower’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella insurance policies carried by Borrower.
c. Contractual Liability. Liability Insurance policies shall contain contractual liability coverage, for Borrower’s indemnity obligations under this Agreement. Borrower’s obtaining or failure to obtain such contractual liability coverage shall not relieve Borrower from nor satisfy any indemnity obligation of Borrower under this Agreement. d. Verification of Coverage . Borrower shall deliver to City original certificates and amendatory endorsements and copies of the applicable policy language effecting coverage of all insurance policies required by this Agreement as set forth in Section 410 effecting coverage under this Agreement. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences.

However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. The City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. Builder’s Risk Insurance shall commence prior to Commencement of Construction of the Project. No later than three (3) days before any insurance required by this Agreement expires, is cancelled or its liability limits are reduced or exhausted, Borrower shall deliver to City evidence of that Party’s maintenance of all insurance this Agreemen t requires. Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be cancelled, suspended, voided, reduced in coverage or in limits, except after thirty (30) calendar days” advance written notice of such action has been given to City by certified mail, return receipt requested; provided, however, that thirty (30) days advance written notice shall be required for any such action arising from non- payment of the premium for the insurance. Phrases such as “endeavor to” and “but failure to mail such Notice shall impose no obligation or liability of any kind upon the company” shall not be included in the cancellation wording of any certificates or policies of insurance applicable to City pursuant to this Agreement.
e. Waiver of Certain Claims . Borrower shall cause each insurance carrier providing any Liability Insurance, Builder’s Risk Insurance, Worker s’ Compensation Insurance, Automobile Liability Insurance or Property Insurance coverage under this Agreement to endorse their applicable policy(ies) with a Waiver of Subrogation with respect to City, if not already in the policy. To the extent that Borrower obtains insurance with a Waiver of Subrogation, the Parties release each other, and their respective authorized representatives, from any Claims for damage to any Person or property to the extent such Claims are paid by such insura nce policies obtained pursuant to and in satisfaction of the provisions of this Agreement. f. No Claims Made Coverage. None of the insurance coverage required under this Agreement may be written on a claims-made basis.

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17 g. Fully Paid and Non-Assessable. All insurance obtained and maintained by Borrower pursuant to this Section 410 shall be fully paid for and non-assessable. However, such insurance policies may be subject to insurer audits.
h. City Option to Obtain Coverage . During the continuance of a Default arising from the failure of Borrower to carry any insurance required by this Agreement, City may, at its sole option, purchase any such required insurance coverage and City shall be entitled to immediate payment from the defaulting Party of any premiums and associated reasonable costs paid by City for such insurance coverage. Any amount becoming due and payable to City under this Section 410 that is not paid within fifteen (15) calendar d ays after written demand from City for payment of such amount, within an explanation of the amounts demanded, will bear interest from the date of the demand at the rate of eight percent (8%) per annum or the maximum interest rate allowed by applicable law, whichever is less. Any election by City to purchase or not to purchase insurance otherwise required by the terms of this Agreement to be carried by any Party shall not relieve that Party of its obligation to obtain and maintain any insurance coverage required by this Agreement.
i. Separation of Insured . All Liability Insurance and Automobile Liability Insurance shall provide for separation of insured for Borrower and the City. Insurance policies obtained in satisfaction of or in accordance with the requirements of this Agreement may provide a cross -suits exclusion for suits between named insured persons, but shall not exclude suits between named insured persons and additional insured persons. j. Deductibles and Self -Insured Retentions. Any deductibles or self -insured retentions under insurance policies required by this Agreement shall be declared to and approved by City. Borrower shall pay all such deductibles or self -insured retentions regarding City or, alternatively, the insurer under each such insurance policy shall eliminate such deductibles or self- insured retentions with respect to City.
k. No Separate Insurance . Borrower shall not carry separate or additional insurance concurrent in form or contributing in the event of loss with that required under this Agreement, unless City is made an additional insured thereon, as required by this Agreement. l. Insurance Independent of Indemnification. The insurance requirements of this Agreement are independent of the Parties” indemnification and other obligations under this Agreement and shall not be construed or interpreted in any way to satisfy, restrict, limit, or modify the Parties” indemnificat ion or other obligations or to limit the Parties” liability under this Agreement, whether within, outside, or in excess of such coverage, and regardless of solvency or insolvency of the insurer that issues the covera ge; nor shall the provision of such insurance preclude City from taking such other actions as are available to it under any other provision of this Agreement or otherwise at law or in equity.
m. Subcontractors. Borrower shall require and verify that all subcontractors maintain insurance meeting all requirements stated herein, and Borrower shall ensure that the City is an additional insured on insurance required from subcontractors. For CGL coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13.

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18 n. Duration of Coverage. CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of five (5) years for Completed Operations liability coverage. Such insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
411. Indemnity.
411.1 Borrower Indemnity Obligations. Borrower shall defend, indemnify and hold harmless City and its officers, agents, employees, representatives, and volunteers (collectively, “Indemnitees”) from and against any loss, liability, claim or judgment relating in any manner to this Agreement. Developer shall not be required to indemnify and hold harmless Indemnitees for liability attributable to the negligence or willful misconduct of Indemnitees, provided such negligence is determined by agreement between the par ties or by the findings of a court of competent jurisdiction. In instances where an Indemnitee is shown to have been negligent and where Indemnitees’ negligence accounts for only a percentage of the liability involved, the obligation of Developer will be for that entire portion or percentage of liability not attributable to the negligence of Indemnitees.
411.2 Independence of Insurance Obligations. The indemnification obligations made by Borrower under this Agreement shall not be construed or interpreted as in any way restricting, limiting, or modifying Borrower insurance or other obligations under this Agreement.

Borrower’s obligation to indemni fy City under this Agreement is independent of Borrower’s insurance and other obligations under this Agreement. Borrower’s compliance with its insurance obligations and other obligations under this Agreement shall not in any way restrict, limit, or modify Borrower’s indemnification obligations under this Agreement and are independent of Borrower’s indemnification and other obligations under this Agreement. 411.3 Survival of Indemnification and Defense Obligations. The indemnity and defense obligations of the Parties under this Agreement shall survive the expiration or earlier termination of this Agreement, until any and all actual or prospective claims regarding any matter subject to an indemnity obligation under this Agreement are fully, finally, absolutely and completely barred by applicable statutes of limitations. 411.4 Indemnification Procedures. Wherever this Agreement requires any Party to indemnify the other Party:
a. Prompt Notice . The indemnifying Party shall promptly notify the other Party of any claim.
b. Selection of Counsel . The indemnifying Party shall select counsel reasonably acceptable to the other Party. Counsel to indemnifying Party’s insurance carrier that is providing coverage for a claim shall be deemed reasonably satisfactory, except in the event of a potential o r actual conflict of interest for such counsel regarding such representation or such counsel proves to be incompetent regarding such representation. Even though the indemnifying Party shall defend the claim, the other Party may, at its option and its own expense, engage separate counsel to advise it regarding the claim and its defense. The other Party’s separate counsel may attend all proceedings and meetings. The indemnifying Party’s counsel shall actively consult with Redlands Regular Meeting of 10/01/24
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19 the other Party’s separate counsel. The indemnifying Party’s counsel shall, however, control the defense, except to the extent that the other Party waives its rights to indemnity and defense of such Claim.
c. Cooperation. The other Party shall reasonably cooperate with the indemnifying Party’s defense of the other Party.
d. Settlement. The indemnifying Party may only settle a claim without the consent of other Party, if the claim is within the policy limits of applicable insurance policies provided in satisfaction of the requirements of this Agreement and such settlement procures a release of other Party from the subject claims, does not require other Party to make any payment to the claimant and neither the indemnified Party nor indemnifying Party on behalf of the indemnified Party admits any liability.
e. Insurance Proceeds. The indemnifying Party’s obligations shall be reduced by any net insurance proceeds actually received by the other Party for the matter giving rise to the indemnification obligation.
412. Annual Reports. Borrower shall furnish to City, on an annual basis on or before the anniversary of the Commencement Date , an annual report that sets forth all information required by the Density Bonus Agreement, and any such additional information that the City may reasonably require to determine compliance with this Agreement for purposes of determining whether the City Loan shall be forgiven, in part or in whole. Books and Records. Borrower shall reasonably maintain on a current basis complete records pertinent to expenditures incurred under this Agreement, including books of original entry, source documents supporting accounting transactions, service records, a general ledger, canceled checks, and related documents and records to assure proper accounting of funds and performance under this Agreement, for a period of five (5) years after the termination of all activities funded under this Agreement. Borrower shall furnish any and all information and report s which may be reasonably required and requested by City .

Borrower shall permit access to books, records and accounts by City or its representatives and employees for the purposes of investigation to ascertain compliance with all applicable rules, regulations and orders, and for the purpose of evaluating and monitoring Borrower’s performance and compliance with the provisions of this Agreement.
413. Compliance. Borrower shall comply and shall cause the Property and Project to comply at all times in all material respects with all Governmental Requirements to which they may be subject.
500. DEVELOPMENT OF PROJECT
501. Cost of Construction Work . All cost and expense in performing the construction of the Project, and for all materials and equipment related thereto, shall be borne solely by Borrower.
502. Licensed General Contractor . The Construction Work must be performed by a licensed general contractor.

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20 503. Construction Contract . The licensed con tractor(s) selected by Borrower shall perform the Construction Work pursuant to a construction contract (the “Construction Contract”) entered into by and between the applicable Borrower and contractor that complies with the requirements of this Agreement.
504. Permits and Approvals. Before Commencement of Construction, and except with respect to any contemplated or necessary demolition activities, Borrower shall secure or cause to be secured any and all land use and other entitlements, permits and approvals which may be required pursuant to any Governmental Requirements related to construction of the Project. City staff will work cooperatively with Borrower to assist in coordinating the expeditious processing and consideration of all necessary permits, entitlements and approvals. 505. Anti-Discrimination. Borrower, for itself and its successors and assigns, agrees that, in performing the construction of the Project, it shall not discriminate against any employee or applicant for employment because of race, color, sexual orientation and/or gender identity, creed, religion, ancestry, political affiliation or opinion, national origin, sex, physical condition, medical condition, pregnancy or pregnancy-related condition, or condition of physical or mental disability or other handicap, age, marital status, or status with regard to public assistance. Borrower will take affirmative action to insure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. Borrower agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause.
600. USE AND MAINTENANCE OF THE PROPERTY; NONDISCRIMINATION;

RIGHTS OF SECURITY FINANCING HOLDERS
601. Maintenance of the Property. Borrower shall keep the Property in good condition, order and repair and shall not commit waste or permit impairment, demolition or deterioration of the Property; shall comply with all applicable state and federal regulations addressing the physical condition of the Property and buildings located on the Property and all applicable standards of the City including but not limited to building standards, planning regulations, and utilities code; shall complete or restore promptly a nd in good and workmanlike manner any building which may be constructed, damaged or destroyed and to pay when due all claims for labor performed and materials furnished; shall maintain the buildings in a habitable condition; and do all other acts which from the character or use of the Property may be reasonably necessary. City shall have the right to inspect the Property during normal business hours, provided Borrower and the occupant are given at least seventy-two (72) hours written notice prior to any such inspection. 602. Accessibility Requirements. Borrower ensures that the Project shall comply with all applicable federal and state disabled persons accessibility requirements including but not limited to the Federal Fair Housing Act, Section 504 of the Construction Act of 1973, Title II and/or Title III of the Americans with Disabilities Act of 1990, Title 24 of the California Code of Regulations and the Uniform Federal Accessibility Standards ("UFAS"), as applicable. Borrower shall submit a certification from a duly qualif ied architect or a City approved Certified Access Specialist certifying that the Project has been constructed in compliance with the accessibility Redlands Regular Meeting of 10/01/24
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21 requirements set in compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794, et seq.) and the Uniform Federal Accessibility Standards (UFAS), as applicable; or has provided the City with other evidence that the Project, as built, complies with the accessibility requirements 603. Obligation to Refrain from Discrimination.
603.1 Borrower will not discriminate against any employee or applicant for employment because of race, color, sexual orientation and/or gender identity, creed, religion, ancestry, political affiliation or opinion, national origin, sex, physical condition, medical condition, pregnancy or pregnancy-related condition, or condition of physical or mental disability or other handicap, age, marital status, or status with regard to public assistance.

Borrower will take affirmative action to insure that all employment practices are free from such discrimination. Such employment practices include but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff, termination, rates of pay or other forms of compensation and selection for training, including apprenticeship.

Borrower agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting agency setting forth the provisions of this nondiscrimination clause.
603.2 Borrower agrees that there shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, sexual orientation and/or gender identity, creed, religion, ancestry, political affiliation or opinion, national origin, sex, physical condition, medical condition, pregnancy or pregnancy-related condition, or condition of physical or mental disability or other handicap, age, marital status, or status with regard to public assistance in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Borrower itself or any person claiming under or through Borrower, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property.
604. Minority and Women -Owned Contractors. Borrower shall use its best efforts to afford minority -owned and women -owned business enterprises ("MBE/WBE") the maximum practicable opportunity to participate in all work performed in connection with the Project to be performed. Borrower shall, at a minimum, notify applicable minority -owned and women-owned business firms located in San Bernardino City of bid opportunities for the construction of the Project. A listing of minority owned and women owned businesses located in the City and neighboring counties is a vailable from the City. Documentation of such notifications must be maintained by Borrower and available to the City as requested. 605. Rights of Access. For the purposes of assuring compliance with this Agreement, representatives of the City shall have the reasonable right of access to the Property without charges or fees for the purpose of inspection of the Property as to maintenance of the improvement s thereon. Such representatives of the City shall be those who are so identified in writing by the City Manager, or his/her designee.

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22 700. DEFAULTS AND REMEDIES
701. Default. Each of the following shall constitute a default by Borrower under this Agreement:
701.1 Failure to perform or satisfy any obligation or requirement set forth herein or the Loan Documents within thirty (30) days of receiving written Notice from the non- defaulting party of such default, provided that in the case of a default that cannot with reasonable diligence be cured within thirty (30) days after the effective date of such Notice, such thirty (30) day period shall automatically be extended for a reasonable time if the party in breach of the Agreement is diligently pursuing a cure.
701.2 Failure to comply with the Density Bonus Agreement, subject to all applicable notice and cure rights provided therein.
701.3 A court having jurisdiction makes or enters any decree or order: (1) adjudging Borrower to be bankrupt or insolvent; (2) approving as properly filed a petition seeking reorganization of Borrower or seeking any arrangement for Borrower under the bankruptcy law or any other applicable debtor's relief law or statute of the United States or any state or other jurisdiction; (3) appointing a receiver, trustee, liquidator, or assignee of Borrower in bankruptcy or insolvency or for any of their properties; or (4) directing the winding up or liquidation of Borrower if any such decree or order described in clauses (1) to (4), inclusive, shall have continued unstayed or undischarged for a period of ninety (90) days; or Borrower shall have admitted in writing its inability to pay its debts as they fall due or shall have voluntarily submitted to or filed a petition seeking any decree or order of the nature described in clauses (1) to (4), inclusive.
701.4 Borrower assigning its assets for the benefit of its creditors or suffered a sequestration or attachment of or execution on any substantial part of its property, unless the property so assigned, sequestered, attached or executed upon shall have been returned or released within ninety (90) days after such event or, if sooner, prior to sale pursuant to such sequestration, attachment, or execution.
701.5 Borrower voluntarily suspended or terminated its business. 701.6 Any claim of lien (other than liens approved in writing by City) is filed against the Project, the Property, or any part thereof, or any interest or right made appurtenant thereto and the continued maintenance of said claim of lien or notice to withhold for a period of twenty (20) days, without discharge or satisfaction thereof or provision therefor (including, without limitation, the posting of bonds) satisfactory to City. 701.7 The condemnation, seizure, or appropriation of all or the substantial part of the Property or the Project, by an entity other than the City. 701.8 Any unauthorized transfer of the Property or Project by Borrower. 701.9 Any Borrower representation or warranty contained in this Agreement, or in any application, financial statement, proforma, certificate, correspondence or report submitted Redlands Regular Meeting of 10/01/24
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23 to the City in connection with this Agreement, proving to have been incorrect in any material respect when made and having a material adverse effect on the Project. 702. Remedies.
702.1 Institution of Legal Action . In addition to any other rights or remedies, subject to all requirements of California law, either Party may institute legal action to cure, correct, or remedy any default, or to obtain any other remedy consistent with the purposes of this Agreement.
702.2 Applicable Law . The internal laws of the State of California without regard to conflict of law principles shall govern the interpretation and enforcement of this Agreement.
702.3 Additional City Remedies . In addition to any other rights or remedies available at law or in equity (subject to the terms of this Agreement and any subordination agreement entered into by the City), upon a default of Borrower and failure to cure upon notice by the City, City may do any of the following: (a) refuse to advance all or any part of the City Loan; (b) wholly or partially suspend or terminate the award of the City Loan; (c) wholly or partially suspend or terminate this Agreement; (d) require Borro wer to repay any City Loan funds which City determines were not expended in compliance with the requirements of this Agreement; and (e) pursue any other remedy under the City Note, the City Deed of Trust, or the Density Bonus Agreement.
702.4 Specific Performance. The City has the right to mandamus or other suit, action or proceeding at law or in equity to require Borrower to perform its obligations and covenants under this Agreement and the Density Bonus Agreement or to enjoin acts on things that may be unlawful or in violation of the provisions of this Agreement. 702.5 Borrower. Upon default by City, Borrower’s sole remedy for such breach shall be to institute an action at law or equity to seek specific performance of the terms of this Agreement. Borrower shall not be entitled to recover damages for any default by City hereunder. 703. Rights and Remedies Cumulative. The rights and remedies of City hereunder are cumulative, and the exercise by City of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default caused by Borrower.
704. Venue for Proceedings. Any legal action to enforce this Agreement or any of the Loan Documents shall be instituted in the Superior Court of the County of San Bernardino, State of California, or in the United States District Court for the District of California in which San Bernardino County is located.
800. GENERAL PROVISIONS
801. Notices. Any notice required or authorized under this Agreement, or service of process, shall be effective if, and only if, in writing and if, and only if, personally served or mailed, postage prepaid, by registered or certified mail, to the party in question at the address shown below:

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24 Borrower: Venue at Orange LLC, a Delaware Limited Liability Company
11230 Sorrento Valley Road, Suite 140
San Diego, CA 92121
Attention: Tim Barzal

And a copy to: Cox, Castle & Nicholson
3121 Michelson Drive, Suite 200
Irvine, CA 92612
Attention: Morgan Gallagher, Esq.

City : City of Redlands
35 Cajon Street
Redlands, California 92373
Attention: City Clerk

With a copy to: City of Redlands
35 Cajon Street
Redlands, California 92373
Attn: City Attorney

An address set forth in this Section may be changed by the respective party providing the other party with written notice indicating the new address for purposes of this Section. 802. Applicable Law. The laws of the State of California shall govern the interpretation and enforcement of this Agreement.
803. Enforced Delay; Extension of Times for Performance . In addition to specific provisions of this Agreement, performance by a party hereunder shall not be deemed to be in default, and all performance and other dates specified in this Agreement shall be extended, where delays or defaults are due to: war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics and pandemics ; quarantine restrictions; freight embargoes; lack of transportatio n; governmental restrictions or priority; litigation; inability to secure necessary labor, materials or tools; acts or omissions of the other party; acts or failures to act of any other public or governmental agency or entity (other than the acts or failu res to act of City which shall not excuse performance by City); or any other cause beyond the control or without the fault of the party claiming an extension of time to perform.

Notwithstanding anything to the contrary in this Agreement, an extension of t ime for any such cause shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of City and Borrower.

Notwithstanding any provision of this Agreement to the contrary, the lack of funding to complete the construction o f the Project on the Property shall not constitute grounds of enforced delay pursuant to this Section.

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25 804. Transfers of Interest in Property or Agreement. 804.1 Prohibition. The qualifications and identity of Borrower are of particular concern to City. It is because of those unique qualifications and identity that City has entered into this Agreement with Borrower. Borrower shall not transfer, assign, sell or grant any in terest in this Agreement or any portion of the Property without written approval from the City, except as expressly set forth herein.
804.2 Agency Consideration of Requested Transfer. The City agrees that it will not unreasonably withhold approval of a request for an assignment or transfer provided (a) Developer delivers written notice to City requesting such approval, and (b) the proposed assignee or transferee, or their affiliate or a gent, possesses a reasonable level of operational experience and capability with respect to the operation of similar types of affordable housing rental property, or a reasonable and equivalent level of operational experience with respect to operation of market rate property, and a reasonable level of net worth and resources as necessary to develop, operate, and manage the Project, and (c) the assignee or transferee assumes the obligations of Developer under this Agreement in a form which is reasonably acceptable to the City. Such notice shall be accompanied by evidence regarding the proposed assignee’s or purchaser’s qualifications and experience and its financial commitments sufficient to enable the City to evaluate the proposed assignee or purchaser. The City shall approve or disapprove the request within ten (10) days of its receipt of Developer’s notice and all information and materials required herein. In no event, however, shall City be obligated to approve the assignment or transfer of the City Loan, City Promissory Note or City Deed of Trust pursuant to this Section, except to an approved transferee or assignee of Developer’s rights in and to the Property. 804.3 Permitted Transfers. City approval of a transfer of this Agreement or an interest in the Property, or any part thereof, shall not be required in connection with any of the following transfers:
(a) The conveyance or dedication of any portion of the Property to City or other appropriate governmental agency, or the granting of easements or permits, to facilitate the construction of the Project;
(b) Any requested assignment for purposes of financing the construction of improvements upon the Property;
(c) Any mortgage, deed of trust, or other form of conveyance for all or any portion of the Additional Borrower Financing, as provided in Section 401 and approved by the City in writing;
(d) Any mortgage, deed of trust or other form of conveyance for restructuring or refinancing of any amount of indebtedness described in subsection (c) above; (e) A sale or transfer resulting from or in connection with a reorganization as contemplated by the provisions of the Internal Revenue Code of 1986, as amended or otherwise, in which the ownership interests of a corporation are assigned directly or by operation of law to a person or persons, firm or corporation which acquires the control of the Redlands Regular Meeting of 10/01/24
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26 voting capital stock of such corporation or all or substantially all of the assets of such corporation; and
(f) The lease of residential units in the Development to qualified tenants as set forth in the Density Bonus Agreement.

In the event of a Transfer by Borrower under subparagraphs (a) through (f), inclusive, Borrower agrees that it shall provide at least ten (10) days prior written notice , or such longer period of notice as otherwise required by this Agreement, to City of such transfer and satisfactory evidence that the transferee has assumed the obligations of this Agreement, if applicable. 805. Relationship Between City and Borrower . It is hereby acknowledged that the relationship between City and Borrower is not that of a partnership or joint venture and that City and Borrower shall not be deemed or construed for any purpose to be the agent of the other.

Accordingly, except as exp ressly provided herein, City shall have no rights, powers, duties or obligations with respect to the development, operation, maintenance or management of the Property. Borrower agrees to indemnify, hold harmless and d efend City from any claim made against City arising from a claimed relationship of partnership or joint venture between City and Borrower with respect to the development, operation, maintenance or management of the Property. 806. No Third Party Beneficiaries. This Agreement is made for the sole protection of City and Borrower and their respective permitted successors and assigns, and no other person or persons shall have any right of action hereon, nor should any laborer, materialman, subcontractor, or other third party rely upon the funds deposited hereunder as a source of payment for work done or labor and/or materials supplied in respect to the improvements contemplated hereunder or otherwise, notwithstanding any representation to the contrary made by Borrower or any other person. This Agreement and the other Loan Documents contain all of the terms and conditions agreed to by Borrower, and no other agreement regarding the subject matter of this Agreement, unless it is in writing and signed by the City and Borrower, shall be deemed to exist or to bind any party hereto.
807. City Implementation. The City shall implement this Agreement through its City Manager. The City Manager is hereby authorized by the City to issue approvals, interpretations, waivers and enter into certain amendments to this Agreement on behalf of the City, to the extent that any such action(s) does/do not increase the obligations or liabilities of the City. All other actions shall require the consideration and approval of the City Council. Nothing in this Section shall restrict the submission to the City Council of any matter within the City Manager’s authority under this Section, in the City Manager’s sole and absolute discretion, to obtain the City Council’s express and specific authorization on such matter. The specific intent of this Section is to authorize certain actions on behalf of the City by the City Manager, but not to require that such actions be taken by the City Manager, without further consideration by the City Council. 808. Counterparts. This Agreement may be executed in any number of counterparts and by different signatories hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same instrument, for the same effect as if all signatories hereto had signed the same signature page. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon and may be attached to another counterpart of Redlands Regular Meeting of 10/01/24
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27 this Agreement identical in form hereto but having attached to it one or more additional signature pages.
809. Integration. This Agreement and the Loan Documents contain the entire understanding between the parties relating to the loan transaction contemplated by this Agreement.

All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into the Loan Documents and shall be of no further force or effect ; provided, however, nothing in the Loan Documents is intended or shall be construed to affect the rights and remedies under the Density Bonus Agreement . Each party is entering into the Loan Documents upon the representations set forth in the Loan Documents and upon each party’s own independent investigation of any and all facts such party deems material. 810. Titles and Captions. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or of any of its terms.

Reference to section numbers are to sections in this Agreement, unless expressly stated otherwise. 811. Interpretation. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word “including” shall be construed as if followed by the words “without limitation.” This Agreement shall be interpreted as though prepared jointly by both parties. 812. No Waiver. City may at any time and from time to time waive any one or more of the terms or conditions contained in this Agreement, but any such waiver shall be deemed to be made pursuant to this Agreement and not in modification thereof, and any such waiver in an y instance or under any particular circumstances shall not be construed a waiver of such term or condition or of any subsequent default. In order to be effective, all such waivers must be in writing.

The failure of City to promptly exercise its rights or remedies shall not be deemed to be a waiver or grounds for the claim of estoppel.
813. Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each party.
814. Severability. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, conditio n or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law. 815. Incorporation of Recitals . The recitals set forth above, and all defined terms set forth in such recitals and in the introductory paragraph preceding the recitals, are hereby incorporated into this Agreement as if set forth in full. 816. Incorporation of Attachments . All attachments referenced in this Agreement are hereby incorporated into this Agreement by this reference. 817. Legal Advice. Each party represents and warrants to the other the following: they have carefully read the Loan Documents, and in signing the Loan Documents, they do so with full Redlands Regular Meeting of 10/01/24
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28 knowledge of any right which they may have; they have received independent legal advice from their respective legal counsel as to the matters set forth in the Loan Documents, or have knowingly chosen not to consult legal counsel as to the matters set forth in the Loan Documents; and, they have freely signed the Loan Documents without any reliance upon any agreement, promise, statement or representation by or on behalf of the other party, or their respective agents, employees, or attorneys, except as specifi cally set forth in the Loan Documents, and without duress or coercion, whether economic or otherwise.
818. Time of Essence . Time is expressly made of the essence with respect to the performance by City and Borrower of each and every obligation and condition of the Loan Documents.
819. Cooperation. Each party agrees to cooperate with the other in this transaction and, in that regard, shall execute any and all documents which may be reasonably necessary, helpful, or appropriate to carry out the purposes and intent of this Agreement including, but not limited to, releases or additional agreements.
820. Conflicts of Interest . No member, official or employee of City shall have any personal interest, direct or indirect, in the Loan Documents, nor shall any such member, official or employee participate in any decision relating to the Loan Documents which affects his personal interests or the interests of any corporation, partnership or association in which he is directly or indirectly interested.
821. Time for Acceptance of Agreement. This Agreement, when executed by Borrower and delivered to City, must be authorized, executed and delivered by City on or before forty-five (45) days after signing and delivery of this Agreement by Borrower or this Agreement shall be void, except to the extent that Borrower shall consent in writing to a further extension of time for the authorization, execution and delivery of this Agreement. 822. Agreement Binding. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto.
823. Non-Liability of Officials and Employees of City . No member, official or employee of City shall be personally liable to Borrower, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Borrower or its successors, or on any obligations under the terms of the Loan Documents. Borrower hereby waives and releases any claim it may have against the members, officials or employees of City with respect to any default or breach by City or for any amount which may become due to Borrower or its successors, or on any obligations under the terms of the Loan Documents. Borrower makes such release with full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of t his release, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows:
“A general release does not extend to claims which the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”
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29 [Signatures to appear on the following page.]
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30 IN WITNESS WHEREOF, City and Borrower have executed this Agreement on the respective dates set forth below.

Date:

CITY:

CITY OF REDLANDS, a municipal corporation

By:

Eddie Tejeda

Title: Mayor

ATTEST:

Jeanne Donaldson,
City Clerk
APPROVED AS TO FORM:

Date:

BORROWER:

Venue at Orange LLC, a Delaware Limited Liability
Company

By:

Name: Tim Barzal
Title:

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Attachment 1

ATTACHMENT NO. 1

LEGAL DESCRIPTION
[TO BE ADDED]

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Attachment 2