Agenda packet — Redlands City Council, November 19, 2024 (part 2 of 4)

Table 16
Vibration Source Amplitudes for Construction Equipment
Equipment
Reference PPV/RMS at 25 Feet
PPV (in./sec.) RMS (in./sec.)
Pile Driver (Impact), Typical 0.644 0.457
Pile Driver (Sonic), Typical 0.170 0.121
Vibratory Roller 0.210 0.149
Hoe Ram 0.089 0.063
Large Bulldozer1 0.089 0.063
Caisson Drilling 0.089 0.063
Loaded Trucks1 0.076 0.054
Jackhammer 0.035 0.025
Small Bulldozer 0.003 0.002
Source: Transit Noise and Vibration Impact Assessment Manual (FTA 2018). 1 Equipment shown in bold is expected to be used on site. ft = foot/feet
FTA = Federal Transit Administration
in/sec = inch/inches per second
Table 17
Potential Construction Vibration Annoyance Impacts at Nearest Receptor Receptor (Location)
Composite Noise
Level (dBA Leq) at
50 Feet 1 Distance (feet)
Composite Noise
Level (dBA Leq)
Industrial Uses (West)

0.063
315 0.0014
Industrial Uses (South) 485 0.0007
Commercial Uses (North) 485 0.0007
School (South) 715 0.0004
Source: Compiled by LSA (2023).
1 The reference vibration level is associated with a large bulldozer which is expected to be representative of the heavy equipment
used during construction.
2 The reference distance is associated with the average condition, identified by the distance from the center of construction
activities to surrounding uses
ft = foot/feet
in/sec = inch/inches per second
RMS = root mean square velocity
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Table 18
Potential Construction Vibration Damage Impacts at Nearest Receptor Receptor (Location)
Composite Noise
Level (dBA Leq) at
50 Feet 1 Distance (feet)
Composite Noise
Level (dBA Leq)
Industrial Uses (West)

0.089
100 0.011
Industrial Uses (South) 140 0.007
Commercial Uses (North) 155 0.006
School (South) 380 0.002
Source: Compiled by LSA (2023).
1 The reference vibration level is associated with a large bulldozer which is expected to be representative of the heavy equipment
used during construction.
2 The reference distance is associated with the peak condition, identified by the distance from the perimeter of construction
activities to surrounding structures
ft = foot/feet
in/sec = inch/inches per second
PPV = peak particle velocity
As discussed above, the threshold at which vibration levels would result in annoyance would be 0.01 in/sec RMS and the FTA guidelines indicate that for a non-engineered timber and masonry building, the construction vibration damage criterion is 0.2 in/sec in PPV.

Based on the information provided in Table 17, vibration levels are expected to approach 0.0014 in/sec RMS at the closest industrial uses to the west and 0.0004 in/sec RMS at the closest sensitive use (School) to the south and would not exceed the annoyance thresholds.

Based on the information provided in Table 18, vibration levels are expected to approach 0.011 at the surrounding structures and would be below the 0.2 PPV in/sec threshold. Other building structures surrounding the project site are farther away and would experience further reduced vibration. Therefore, no construction vibration impacts would occur, impacts will be less than significant.

Operational Vibration Impacts
The proposed project would not generate vibration levels related to on-site operations. In addition, vibration levels generated from project-related traffic on the adjacent roadways are unusual for on- road vehicles because the rubber tires and suspension systems of on-road vehicles provide vibration isolation. Vibration levels generated from project-related traffic on the adjacent roadways would be less than significant.
c) Less than Significant Impact. Aircraft flyovers may be audible on the project site due to aircraft activity in the vicinity. The nearest airports to the project are San Bernardino International Airport (SBIA) and Redlands Municipal Airport (REI) approximately 3.30 miles to the northwest and northeast of project site, respectively. The project site is located well outside the SBD Airport Influence Area according to the 2017 Existing CNEL Contours and Generalized Land Uses – San Bernardino International Airport (San Bernardino County, 2017) as well as outside the REI 60 dBA CNEL Airport Noise Contour according to Figure 7-7: Airport Hazards in the City’s General Plan.35 Therefore, the project would not be adversely affected by airport/airfield noise, nor would the project contribute to or result in adverse airport/airfield noise impacts, and as such, impacts would be less than significant.

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Public Review Draft May 1, 2023

4.13 – Population and Housing
Would the project:

Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
a) Induce substantial unplanned
population growth in an area, either
directly (for example, by proposing
new homes and businesses) or
indirectly (for example, through
extension of roads or other
infrastructure)?
□ □ □
b) Displace substantial numbers of
existing people or housing,
necessitating the construction of
replacement housing elsewhere?
□ □ □
a) Less than Significant Impact The project site is designated for light industrial uses and is currently occupied by a warehouse building and one unoccupied single-family home. Because the proposed project would replace an existing use, and potential employees of the proposed warehouse would be drawn from the existing population in the area, it is not anticipated that the proposed project would result in a substantial increase in the number of employees on the project site. In addition, the project does not involve the extension of roads or other major infrastructure improvements that would indirectly induce unplanned population growth. The project complies with the City of Redlands General Plan and Zoning Ordinance.36 The project site is zoned as Light Industrial for industrial, manufacturing, and warehousing purposes. The project is consistent with this criterion and is consistent with the anticipated buildout of the City’s General Plan and would not induce any unplanned population growth. Impacts will be less than significant.
b) No Impact. Currently there is a single-family home located on the project site, however the home is not occupied. No housing would be displaced as a result of project development and as such there will be no impact.

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4.14 – Public Services
Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services:

Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
a) Fire protection? □ □ □
b) Police protection? □ □ □
c) Schools? □ □ □
d) Parks? □ □ □
e) Other public facilities? □ □ □
a) Less than Significant Impact. The project is located in the service area of the City of Redlands Fire Department. The Fire Department responds to medical emergencies, hazardous materials incidents, rescue calls, and motor-related accidents, in addition to regular fire suppression services. There are four stations in Redlands37:
• Fire Station 261: 525 E Citrus Ave.
• Fire Station 262: 1690 Garden St.
• Fire Station 263: 10 W Pennsylvania Ave.
• Fire Station 264: 1270 W Park Ave.

The fire station nearest to the project site is Station 264, located approximately one quarter mile to the north. Future tenants of the proposed industrial facility that may store and use hazardous materials would be required to adhere to local and state regulations pertaining to the handling and storage of such materials. The project may create an incremental increase in demand for fire services.

Development impact fees that are collected at the time of building permit issuance for approved projects would offset any incremental in demand for fire protection and emergency medical services. Fees go towards fire facilities and charge at a current rate of $716.94 per 1,000 square feet of office space, and $223.67 per 1,000 square feet of warehouse space.38 Impacts related to expansion of fire protection services will be less than significant.
b) Less than Significant Impact. The project area is served by the Redlands Police Department. The Police Department and Patrol building is located at 1270 W Park Ave, Building C, Redlands, CA 92373.

The station is approximately 0.3 miles north of the project site. Development of the project site may generate an incremental increase in the need for police protection in the project area. However, this incremental increase is consistent with the buildout of the City’s General Plan. The Police Department reviews its needs on a yearly basis and adjusts service levels as needed to maintain an adequate level Redlands Regular Meeting of 11-19-24 331 of 1010
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of public protection. Additionally, Development Impact Fees collected at the time of building permit issuance will help to offset incremental impacts of development on demand for services. Fees go towards law enforcement facilities and charge a current rate of $37.40 per 1,000 square feet of office space, and $11.67 per 1,000 square foot warehouse space.39 Therefore, a less than significant impact to police services would occur.
c) Less than Significant Impact. The project includes construction of a warehouse facility, associated parking, and landscape improvements. The project will not result in any direct population growth, or associated growth in students, within the Redlands Unified School District. As most of the employees that would staff the warehouse could be expected to come from the local population, a substantial increase in the school populations is unlikely. However, payment of development impact fees required under State law would offset the cost of increased demand for school district facilities in the future. The Redlands Unified School District has established a school fee and charge a current rate of $0.56 per square foot of industrial development built.
40 Any project impacts on school facilities would be less than significant.
d) Less than Significant Impact. Development of the project could have the potential to impact demand on parks and recreation facilities if it induced substantial population growth in the area.

However, as most of the staff of the warehouse could reasonably be expected to come from the local population, the project is not expected to induce significant change to the local population. As such, the proposed warehouse project will not result in any direct population growth that would require expansion or acquisition of recreational facilities. Less than significant impacts would occur. e) Less than Significant Impact. The project is not expected to create an increase in residents that would generate additional demand for public facilities. However, payment of development impact fees required determined by the City of Redlands would offset the cost of increased demand for such facilities in the future. Fees for public facilities are at a current rate of $852.83 per 1,000 square feet of office space, and $266.06 per 1,000 square feet of warehousing.41 Potential impacts to public facilities in Redlands would be less than significant.

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4.15 – Recreation
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
a) Would the project increase the use of
existing neighborhood and regional
parks or other recreational facilities
such that substantial physical
deterioration of the facility would
occur or be accelerated?
□ □ □
b) Does the project include recreational
facilities or require the construction
or expansion of recreational facilities
which might have an adverse
physical effect on the environment?
□ □ □
a) No Impact. The project includes the demolition of the former 193,469 square foot La-Z-Boy warehouse, and the construction of a 197,397 square foot light industrial building. Employees of the warehouse would be drawn from existing residents within or near the City of Redlands. As such, the project itself would not create demand for additional parks, or other recreational activities as the workforce would be drawn from the existing population of the area and from additional housing planned by the City to accommodate anticipated buildout of the City’s General Plan. There are no anticipated impacts to recreational facilities.
b) No Impact. The project does not include any recreational facilities or require the construction of new facilities, and there would not be an adverse physical effect to the environment. Therefore, there would be no impact.

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4.16 – Transportation
Would the project:

Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
a) Conflict with a program plan,
ordinance or policy addressing the
circulation system, including transit,
roadway, bicycle, and pedestrian
facilities?
□ □ □
b) Would the project conflict or be
inconsistent with CEQA Guidelines
section 15064.3, subdivision (b)? □ □ □
c) Substantially increase hazards due
to a geometric design feature (e.g.,
sharp curves or dangerous
intersections) or incompatible uses
(e.g., farm equipment)?
□ □ □
d) Result in inadequate emergency
access? □ □ □
A Focused Traffic Analysis and VMT Screening Analysis for the proposed project was prepared by EPD Solutions, Inc., dated January 30th, 2023 (See Appendix E). The information presented below is provided from the aforementioned evaluations.
a) Less than Significant Impact. The Focused Traffic Analysis and VMT Screening Analysis was prepared to determine whether the project meets the VMT requirements for the San Bernardino County Transportation Authority (SBCTA) Guidelines and screens out from needing to conduct a detailed analysis. In addition, CEQA Guidelines section 15064.3(A) states that Vehicle Miles Traveled is the most appropriate measure for transportation impacts, and Level of Service shall not be considered an environmental impact and “a project’s effect on automobile delay shall not constitute a significant environmental impact” (for CEQA purposes). Table 19 below shows the estimated trip generation for the proposed project based on trip generation rates collected from the Institute of Transportation Engineers (ITE) Trip Generation Manual (11th Edition, 2021). The vehicle mix was also determined using the ITE Manual. The forecast was determined by using ITE Land Use Code 110 General Light Industrial, and 140 Manufacturing to derive net site specific trip generation estimates for the proposed 197,397 square foot warehousing project, which includes the storage and cold storage of materials and the use of office and maintenance areas.

The trip generation takes credit for the existing warehouse and single-family house. As shown in Table 19, the existing manufacturing use is estimated to generate a total of 919 daily trips including 132 AM peak hour trips and 143 PM peak hour trips whereas the single-family house is estimated to generate a total of 9 daily trips including 1 AM peak hour trip and 1 PM peak hour trip. When adjusted for heavy truck trips and applying a passenger car equivalent (PCE) factors the existing manufacturing use would generate 1,307 daily trips including 190 PCE trips during the AM peak hour and 206 PCE trips during Redlands Regular Meeting of 11-19-24 334 of 1010
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the PM peak hour. In total, the existing land use generates 1,316 daily PCE trips, 191 PCE trips during the AM peak hour and 207 PCE trips during the PM peak hour. The proposed general light industrial use, including 10% cold storage, would generate 1,387 daily PCE trips, 212 PCE trips during the AM peak hour, and 187 PCE trips during the PM peak hour.

The resulting net trip generation on the project site would result in 71 daily PCE trips, 21 PCE trips during the AM peak hour, and -20 PCE trips during the PM peak hour. The project trips were distributed throughout the study area based on logical travel paths and patterns. The project truck and passenger car trip distribution and the project trip assignment are provided in Appendix E.

Table 19
Proposed Project Trip Generation
Land Use Units
AM Peak Hour PM Peak Hour
In Out Total In Out Total Daily
Trip Rates
General Light Industrial TSF 0.65 0.09 0.74 0.09 0.56 0.65 4.87 Manufacturing TSF 0.52 0.16 0.68 0.23 0.51 0.74 4.75
Single-Family Detached Housing DU 0.182 0.518 0.7 0.5922 0.3478 .94 9.43 Existing Trip Generation Units
AM Peak Hour PM Peak Hour
In Out Total In Out Total Daily
Existing Manufacturing Building 193,469 TSF -100 -32 -132 -44 -99 -143 -919 Vehicle Mix2 Percent2,4
Passenger Vehicles 72.50% -73 -23 -96 -32 -72 -104 -666 2-Axle truck 4.60% -5 -1 -6 -2 -5 -7 -42
3-Axle truck 5.70% -6 -2 -8 -3 -6 -9 -52
4+ -Axle trucks 17.20% -17 -6 -23 -8 -17 -25 -158
Total 100% -101 -31 -132 -45 -100 -145 -919
PCE Trip Generation3
PCE
Factor
AM Peak Hour PM Peak Hour
In Out Total In Out Total Daily
Passenger Vehicles 1.0 -73 -23 -96 -32 -72 -104 -666
2-Axle truck 1.5 -8 -1 -9 -3 -8 -11 -63
3-Axle truck 2.0 -12 -4 -16 -6 -10 -16 -104
4+ -Axle trucks 3.0 -51 -18 -69 -24 -51 -75 -474
Existing Manufacturing Building
(PCE) -144 -46 -190 -65 -141 -206 -1307
Single Family Residential6
Passenger Vehicles 1 DU -1 -1 -1 -1 -1 -1 -9
Total Existing Trip Generation -101 -33 -133 -45 -100 -144 -928 Total Existing Trip Generation
(PCE) -145 -47 -191 -68 -142 -207 -1316
Proposed Project Trip
Generation Units
AM Peak Hour PM Peak Hour
In Out Total In Out Total Daily
Proposed General Light
Industrial
197,397 TSF 129 18 146 18 110 128 961
Vehicle Mix
(90% Warehousing)2 Percent2
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Passenger Vehicles 72.50% 84 12 96 12 72 84 627
2-Axle truck 4.60% 5 1 6 1 5 6 40
3-Axle truck 5.70% 7 1 8 1 6 7 49
4+ -Axle trucks 17.20% 20 3 23 3 17 20 149
Total 100% 116 17 133 17 100 117 865
Vehicle Mix
(10% Cold Storage)5 Percent5
Passenger Vehicles 55.30% 7 1 8 0 7 7 53
2-Axle truck 15.50% 2 0 2 0 1 1 15
3-Axle truck 4.90% 1 0 1 0 0 0 5
4+ -Axle trucks 24.30% 3 0 3 0 3 3 23
Total 100% 13 1 14 0 11 11 96
PCE Trip Generation3
PCE
Factor
AM Peak Hour PM Peak Hour
In Out Total In Out Total Daily
Passenger Vehicles 1.0 91 13 104 12 79 91 680
2-Axle truck 1.5 11 2 13 2 9 11 83
3-Axle truck 2.0 16 2 18 2 12 14 108
4+ -Axle trucks 3.0 69 9 78 9 60 69 516
Proposed General Light
Industrial Building (PCE) 187 26 213 26 160 185 1387
Total Existing Trip Generation
(PCE)
-144 -44 -188 -66 -143 -209 -1317
NET PCE Trip Generation 43 -18 25 -41 17 -24 70
TSF = Thousand Square Feet
PCE = Passenger Car Equivalent
1 Trip rates from the Institute of Transportation Engineers, Trip Generation, 11th Edition, 2021. Land Use Code 110 General Light Industrial, 140 Manufacturing.
2 Vehicle Mix from the Warehouse Truck Trip Study Data Results and Usage, Southern California Air Quality Management District Warehouse Truck Trip Study July 17, 2014. Without Cold Storage. 3 Passenger Car Equivalent (PCE) factors from the San Bernardino County CMP, Appendix B – Guidelines for CMP Traffic Impact Analysis Reports in San Bernardino County, 2016.
4 Total trip generation for this line rounded to match non-vehicle mix trip generation estimate. 5 Vehicle Mix from the Warehouse Truck Trip Study Data Results and Usage, Southern California Air Quality Management District Warehouse Truck Trip Study July 17, 2014. With Cold Storage.

Measure U Focused Traffic Analysis
Measure U was an initiative approved by the voters of Redlands in 1997 to enact several principles of managed development within the City of Redlands. The principles in Measure U have been incorporated throughout the new 2035 General Plan, as well as several sections of the Redlands Municipal Code. The Focused Traffic Analysis evaluated the project using the applicable Measure U Policies identified in the Connected City Element of the City of Redlands 2035 General Plan as well as the County of San Bernardino Transportation Impact Study Guidelines (TIS Guidelines). The Measure U Policies are largely based on Level of Service (LOS) standards that measure traffic congestion. A detailed LOS evaluation is included in the Focused Traffic Analysis (See Appendix E) in order to demonstrate project compliance with Measure U. Each Measure U policy is provided below followed by a brief explanation of how the project complies with the policy.

Policy 5.20a: Maintain LOS C or better as the standard at all intersections presently at LOS C or better.

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As shown in Table 20 of the Focused Traffic Analysis, all study intersections currently operate at LOS C or better except for the intersection of Kansas Street and State Street during the AM Peak hour. The addition of project traffic would not cause any location to deteriorate from LOS C to worse than LOS C.

Policy 5.20b: Within the area identified in GP Figure 5-1, including that unincorporated County area identified on GP Figure 5-1 as the “donut hole”, maintain LOS C or better; however, accept a reduced LOS on a case-by-case basis upon approval by a four-fifths (4/5ths) vote of the total authorized membership of the City Council.

It is to be noted that Measure U Policy 5.20b would not apply since the project is not within the area identified in GP Figure 5-1.

5.20c: Where the current level of service at a location within the City of Redlands is below the Level of Service (LOS) C standard, no development project shall be approved that cannot be mitigated so that it does not reduce the existing level of service at that location except as provided in Section 5.20b.

As shown in Table 20, the intersection of Kansas Street and State Street would operate at LOS F during the AM peak hour. Addition of project traffic would not change the delay or LOS at the intersection.

Therefore, no mitigation is necessary as the project does not reduce the existing level of service at the intersection.

5.20f: If monitoring of conditions at intersections within the East Valley Corridor Specific Plan area and intersections affected by EVC development indicates that peak hour LOS will drop below the standards set by Policies 5.20a, 5.20b, 5.20c revise the EVC Specific Plan. Revisions necessary may include additional roadway improvements, mandated higher TDM (Travel Demand Management, See Section 5.40) reductions in single-occupant vehicle trip share, reduction of intensity of development, or changes in use of undeveloped sites.

As discussed above, the project does not result in a drop in LOS at any intersection and therefore would not cause the LOS to drop below the referenced standards. The proposed project’s study area intersections were evaluated with and without project trips to comply with the City’s Measure U policies by determining if the project would cause any LOS deficiencies. As previously noted, CEQA Guidelines section 15064.3(A) states that Vehicle Miles Traveled is the most appropriate measure for transportation impacts, and Level of Service shall not be considered an environmental impact and “a project’s effect on automobile delay shall not constitute a significant environmental impact” (for CEQA purposes). All study area intersections would operate at satisfactory LOS in the Existing and Existing Plus Project Conditions except for the intersection of Kansas Street and State Street which would continue to operate at an LOS F; however, the project does not impact the intersection since it does not increase the time delay. As such, the project would not result in any unsatisfactory LOS; therefore, the project would be in compliance with Measure U, no improvements would be required, and impacts would be less than significant. b) Less than Significant Impact. In December 2018, the California Natural Resources Agency certified and adopted the updated CEQA Guidelines package. The amended CEQA Guidelines, specifically Section 15064.3, recommend the use of Vehicle Miles Travelled (VMT) as the primary metric for the evaluation of transportation impacts, under CEQA, associated with land use and transportation projects. In general terms, VMT quantifies the amount and distance of automobile travel attributable to a project or region. All agencies and projects State-wide are required to utilize the updated CEQA guidelines recommending the use of VMT for evaluating transportation impacts as of July 1, 2020.

CEQA Guidelines allow for lead agency discretion in establishing methodologies and thresholds provided there is substantial evidence to demonstrate that the established procedures promote the Redlands Regular Meeting of 11-19-24 337 of 1010
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intended goals of the legislation. The City of Redlands CEQA Assessment VMT Analysis Guidelines provides guidelines for analysis of transportation impacts under CEQA. The guidelines also provide three types of screening that can be applied to determine if a project is exempt from project-level VMT analysis. The project was screened using the SBCTA VMT Screening Tool. If a project meets one of the following criteria, then the VMT impact of the project is considered less-than significant and no further analysis of VMT would be required:

1. The project is located within a Transit Priority Area.

2. The project is located in a low VMT generating area.

3. The project is considered a local serving use or would generate less than 3,000 metric tons of CO2 equivalent (3,000 MT CO2e) per year.

Below are the results of the screening criteria satisfaction for the project:

Screening Criteria 1 – The project is located within a Transit Priority Area:

The SBCTA tool illustrates that a majority of the project site is located within a Transit Priority Area, however this criterion would not apply as the project has a floor area ratio (FAR) of 0.44. The City of Redlands CEQA Assessment VMT Analysis Guidelines state that this criterion should be applied to projects with an FAR of 0.75 or more.

Screening Criteria 2 – Low VMT Generating Area:

The City’s guidelines include a screening threshold for projects located in a low VMT generating area.

The project’s site was evaluated using the SBCTA VMT Screening Tool as discussed previously. The project is located within TAZ 53827301. The criteria applied to this project was 15% below the County baseline using the Origin-Destination VMT per Service Population. As shown in Appendix E, the Countywide VMT/Service Population is 33.3 and the threshold would be 28.3 VMT/Service Population.

The screening tool indicates that these TAZs have an OD VMT/Service Population of 61.7. This is

85.29% above the threshold and would not be considered to generate a low VMT.

Screening Criteria 3 - The project is considered a local serving use or would generate less than 3,000 metric tons of CO2 equivalent (3,000 MT CO2e) per year.

Under the Project Type Screening criteria, projects which generate less than 3,000 MT CO2e per year can be presumed to have a less than significant impact on VMT. The project meets the criteria for classification as a warehousing land use. The City of Redlands guidelines state that warehousing uses of 463,400 square feet or less are presumed to generate less than 3,000 metric tons of CO2 equivalent (3,000 MT CO2e) per year and can be presumed to result in a less than significant VMT impact.

The proposed project is determined to have a less than significant impact on VMT since it satisfies one of more of the VMT screening criteria established by the City of Redlands CEQA Assessment VMT Analysis Guidelines. The project’s VMT impact is considered less than significant and no additional VMT analysis is required.
c) Less than Significant Impact. A significant impact would occur if the proposed project substantially increased an existing hazardous design feature or introduced incompatible uses to the existing traffic pattern. Access to the site would be provided via four driveways; two driveways on Tennessee Street: a 40-foot truck accessible driveway located at the northeast corner of the site and a 30-foot driveway for passenger cars only located at the southeast corner of the project. Additionally, a 40-foot driveway for truck access will be located on West State Street, and another 40-foot driveway for both truck and passenger car access will be located on Kansas Street. The project does not involve any changes to the alignment or uses of existing roadways, and the proposed project is consistent with City of Redlands driveway spacing and design requirements. Construction operations occurring on site would comply with Redlands Regular Meeting of 11-19-24 338 of 1010
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the California Building Code adopted in the City of Redlands Municipal Code.42 The proposed project would not result in a traffic safety hazard due to any design features, and impacts would be less than significant.
d) Less than Significant Impact. A significant impact would occur if the design of the proposed project would not satisfy emergency access requirements of the City of Redlands Fire Department or in any other way threaten the ability of emergency vehicles to access and serve the project site or adjacent uses. The proposed project would not result in inadequate emergency access. As previously discussed above, access to the site will be provided via four driveways; a 40-foot truck accessible driveway and a 30-foot driveway passenger car driveway on Tennessee Street, a 40-foot truck accessible driveway on West State Street, and another 40-foot truck and passenger car accessible driveway on Kansas Street.

The driveway width is sufficient to provide access to fire and emergency vehicles and is consistent with California Fire Code requirements. All access features are subject to and must satisfy the City of Redlands design requirements, including the Fire Department’s requirements. This project would therefore not result in adverse impacts with regard to emergency access. Impacts would be less than significant.

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4.17 – Tribal Cultural Resources
Would the project:

Potentially
Significant
Impact
Less Than
Significant
with Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
a) cause a substantial adverse change
in the significance of a tribal cultural
resource, defined in Public
Resources Code section 21074 as
either a site, feature, place, cultural
landscape that is geographically
defined in terms of the size and
scope of the landscape, sacred
place, or object with cultural value to
a Cultural Native American tribe, and
that is:
i) Listed or eligible for listing in the
California Register of Historical
Resources, or in a local register of
historical resources as defined in
Public Resources Code Section
5020.1(k), or
□ □ □
ii) A resource determined by the lead
agency, in its discretion and
supported by substantial evidence, to
be significant pursuant to criteria set
forth in subdivision (c) of Public
Resources Code Section 5024.1. In
applying the criteria set forth in
subdivision (c) of Public Resource
Code Section 5024.1, the lead
agency shall consider the
significance of the resource to a
California Native American tribe.
□ □ □
a.i) Less than Significant with Mitigation Incorporated. A significant impact would occur if the proposed project would cause a substantial adverse change in the significance of a tribal cultural resource listed or eligible for listing in the California Resources of Historical Resources, or in a local register of historical resources as defined in Public Resources Code Section 5020.1(k). The project site is currently developed, and there are no historic resources on, adjacent to, or in proximity to the project site listed in the California Register of Historical Resources pursuant to Section 15064.5. The City does not have any landmarks listed under its historic preservation program as defined in Public Resources Code Section 5020.1(k). However, in compliance with Assembly Bill 52, Native American tribes traditionally and culturally affiliated with the geographic area of the Project site were notified of the proposed Project on September 22, 2022 (See Appendix D). The tribes notified included:

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• Gabrieleno Band of Mission Indians – Kizh Nation
• Morongo Band of Mission Indians
• Soboba Band of Luiseno Indians
• Torres Martinez Desert Cahuilla Indian
• The Yuhaaviatam of San Manuel Nation (formerly known as the San Manuel Band of Mission Indians)
On September 26, 2022, the City received a response from Ryan Nordness, Cultural Resources Analyst for the Yuhaaviatam of San Manuel Nation (YSMN). In the email, Mr. Nordness noted the project site is located in the Serrano ancestral territory and is of interest to the Tribe. However, given the “nature and location of the project” and the current state of knowledge regarding the area, YSMN has no concerns with the implementation of the project as planned. Furthermore, in the response, the YSMN requested that mitigation measures be included to reduce potential impacts to less than significant.

Therefore, with incorporation of Mitigation Measures TCR-1 and TCR-2, impacts to listed or eligible tribal cultural resources would be less than significant. a.ii) Less than Significant with Mitigation Incorporated. Government Code §§ 65352.3 and 65562.5 (SB 18); and Public Resources Code §§ 21073, 21074, 21080.3.1, 21080.3.2, 21082.3, 21083.09, 21084.2, and 21084.3 (AB 52) provide that a project that may cause a substantial adverse change to a defined Tribal Cultural Resource (TCR) can result in a significant effect on the environment. AB 52 requires tribes interested in development projects within a traditionally and culturally affiliated geographic area to notify a lead agency of such interest and to request notification of future projects subject to CEQA prior to determining if a negative declaration, mitigated negative declaration, or environmental impact report is required for a project. The Lead Agency is required to notify tribes within 14 days of deeming a development application complete subject to CEQA to notify the requesting tribe as an invitation to consult on the project. AB 52 identifies examples of mitigation measures that will avoid or minimize impacts to TCR. The bill makes the above provisions applicable to projects that have a notice of preparation or a notice of intent to adopt a negative declaration/mitigated negative declaration circulated on or after July 1, 2015. Although there is no indication of TCRs at the project site, AB 52 is clear in stating that it is the responsibility of the Public Agency (i.e., Lead Agency) to consult with Native American tribes early in the CEQA process to allow tribal governments, lead agencies, and project proponents to discuss the appropriate level of environment review, identify and address potential adverse impacts to TCRs, and reduce the potential for delay and conflict in the environmental review process (see Public Resources Code Section 2108.3.2). Specifically, government-to-government consultation may provide “tribal knowledge” of the project area that can be used in identifying TCRs that cannot be obtained through other investigative means. Pursuant to AB 52, as the CEQA Lead Agency, the City of Redlands sent AB 52 consultation notification letters via email on September 22, 2022. On September 26, 2022, the City received a response from Ryan Nordness, Cultural Resources Analyst for the Yuhaaviatam of San Manuel Nation (YSMN). In the email, YSMN requested that mitigation measures be included to reduce potential impacts to less than significant. Therefore, with incorporation of Mitigation Measures TCR-1 and TCR-2, impacts to listed or eligible tribal cultural resources would be less than significant.

Mitigation Measures
TCR-1 Cultural Resources Monitoring and Treatment. The Yuhaaviatam of San Manuel Nation Cultural Resources Department (YSMN) shall be contacted, as detailed in CUL1, of any pre-contact and/or historic-era cultural resources discovered during project implementation and be provided information regarding the nature of the find, so as to provide Tribal input with regards to significance and treatment. Should the find be Redlands Regular Meeting of 11-19-24 341 of 1010
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deemed significant, as defined by CEQA (as amended, 2015), a cultural resources Monitoring and Treatment Plan shall be created by the archaeologist, in coordination with YSMN, and all subsequent finds shall be subject to this Plan. This Plan shall allow for a monitor to be present that represents YSMN for the remainder of the project, should YSMN elect to place a monitor on-site.

TCR-2 Archaeological Documentation. Any and all archaeological/cultural documents created as a part of the project (isolate records, site records, survey reports, testing reports, etc.) shall be supplied to the applicant and Lead Agency for dissemination to YSMN. The Lead Agency and/or applicant shall, in good faith, consult with YSMN throughout the life of the project.

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4.18 - Utilities and Service Systems
Would the project:

Potentially
Significant
Impact
Less Than
Significant
with Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
a) Require or result in the relocation or
construction of new or expanded
water, wastewater treatment or
stormwater drainage, electric power,
natural gas, or telecommunications
facilities, the construction or
relocation of which could cause
significant environmental effects?
□ □ □
b) Have sufficient water supplies
available to serve the project and
reasonably foreseeable future
development during normal, dry, and
multiple dry years?
□ □ □
c) Result in a determination by the
wastewater treatment provider which
serves or may serve the project that
it has adequate capacity to serve the
project’s projected demand in
addition to the provider’s existing
commitments?
□ □ □
d) Generate solid waste in excess of
State and local standards, or in
excess of the capacity of local
infrastructure, or otherwise impair the
attainment of solid waste reduction
goals?
□ □ □
e) Comply with federal, state, and local
management and reduction statutes
and regulations related to solid
waste?
□ □ □
a) Less than Significant Impact. The Redlands Municipal Utilities & Engineering Department delivers water to over 23,000 service connections throughout its service area, including those in Redlands, Mentone, parts of Crafton Hills, San Timoteo Canyon, and San Bernardino. The Department receives its water from a mix of sources including local groundwater wells, the Mill Creek Watershed, Santa Ana Watershed, and imported water provided through the State Water Project. The City utilizes 23 groundwater wells, 44 booster pumps, 18 reservoirs, and 450 miles of transmission lines to deliver water.43 Additionally, the City operates two surface water treatment plants, Tate and Hinkley, which provide treated water from the Mill Creek and Santa Ana watersheds respectively, and State Water Project (SWP).44 The City maintains ownership in multiple local private and mutual water companies to Redlands Regular Meeting of 11-19-24 343 of 1010
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bolster and secure reliable water supplies for their treatment plants. Wastewater is collected and treated at the Redlands Wastewater Treatment Facility and has a treatment capacity of 9.5 million gallons.

As discussed in the Hydrology and Water Quality section and Project Description, the project would install new water and sewer lines onsite connecting to the existing infrastructure in Redlands. The project would not generate substantially increased runoff from new impermeable surfaces on site. As part of the proposed project, catch basins and landscape drains will collect surface runoff onsite for treatment. The subsurface storm drain would move surface flows to an underground infiltration system located in the northwestern area of the project site. No additional improvements are anticipated to either sewer lines or treatment facilities to serve the project. Standard connection fees would address any incremental impacts of the project. Therefore, the project would result in less than significant impact as a result of new or expanded water supply and wastewater treatment facilities.

Impacts related to electric power, natural gas, and telecommunications facilities would also be less than significant. The project will connect to existing facilities and will not require any extension of services.

Therefore, the proposed warehouse would not require or result in the relocation or construction of new or expanded water, wastewater treatment or stormwater drainage, electric power, natural gas, or telecommunications facilities, the construction or relocation of which could cause a significant environmental effect. Less than significant impacts would occur. b) Less than Significant Impact. According to the 2020 Integrated Regional Urban Water Management Plan (UWMP) for the Upper Santa Ana River Watershed Region, the City of Redlands is projected to have a total demand of 25,818 acre-feet (AF) in 2025. 45 The same estimates calculated a
supply total of 31,039 AF in 2020, a difference of 5,221 AF. The project would generate a marginal increase in additional demand for water from the City of Redlands’ water supply, relative to overall existing citywide demand. As the Urban Water Management Plan anticipates an overall increase in demand associated with development in the area over 2015 conditions, and the proposed project is within the expected buildout and zoning of the City, water demand for this project is within that demand assumption, and as such, impacts would be less than significant. The project would not substantially deplete water supplies, and the project would have a less than significant impact on entitled water supplies.
c) Less than Significant Impact. Potentially significant impacts could occur as a result of this project if it results in a determination by the wastewater treatment provider which serves or may serve the project that it does not have adequate capacity to serve the project’s projected demand in addition to the provider’s existing commitments. As detailed in Sections 4.19.a and 4.19.b, the project would be adequately served by existing wastewater treatment facilities. Therefore, a less than significant impact would occur.
d) Less than Significant Impact. Significant impacts could occur if the proposed project would exceed the existing permitted landfill capacity or violates federal, state, and local statutes and regulations. Solid waste disposal services are overseen by the City of Redlands Trash Collection. Solid waste collected in Redlands is primarily transferred to the San Timoteo Landfill in Redlands, located approximately 6 miles south of the project site. According to CalRecycle, the San Timoteo Landfill has a maximum capacity of 23,685,785 tons, with a remaining capacity of 12,360,396 tons measured April 30th, 2019.46 Construction of the facility is anticipated to generate some solid waste, with an estimated total waste generation of approximately 5044.3 lbs., per employee, per year.47 Because there would be adequate landfill capacity in the region to accommodate project-generated waste, and the proposed project is not expected to generate a substantial quantity of solid waste, impacts to solid waste disposal capacity would be less than significant.

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e) No Impact. The proposed project is required to comply with all applicable federal, state, County, and City statutes and regulations related to solid waste as a standard project condition of approval.

Therefore, no impact would occur.

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4.18 – Wildfire
If located in or near state responsibility areas or lands classified as very high fire hazard severity zones, would the project:

Potentially
Significant
Impact
Less Than
Significant
with Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
a) Substantially impair an adopted
emergency response plan or
emergency evacuation plan? □ □ □
b) Due to slope, prevailing winds, and
other factors, exacerbate wildfire
risks and thereby expose project
occupants to, pollutant
concentrations from a wildfire or the
uncontrolled spread of a wildfire?
□ □ □
c) Require the installation or
maintenance of associated
infrastructure (such as roads, fuel
breaks, emergency water sources,
power lines or other utilities) that may
exacerbate fire risk or that may result
in temporary or ongoing impacts to
the environment?
□ □ □
d) Expose people or structures to
significant risks, including downslope
or downstream flooding or landslides,
as a result of runoff, post-fire slope
instability, or drainage changes?
□ □ □
a) No Impact. The project site is not located within or near any State Responsibility Areas, the nearest being in adjacent Loma Linda as part of the San Timoteo Canyon. 48 There are no wildland conditions
in the urbanized area where the project site is located. The City’s General Plan identifies several evacuation routes; these routes were previously designated as potential evacuation routes in the 2007 San Bernardino General Plan.49 These include: Interstates 10, 15, 210, and 215, and State Highways 30, 60, 66, 71, and 83. In the event of an earthquake, the following roads would provide safe access out of the San Bernardino Valley, as indicated by Caltrans and cited in the Redlands General Plan:
• Hospitality Lane from Tippecanoe Avenue to Waterman Avenue • Coulston Street from Mountain View Avenue to Tippecanoe Avenue • Lugonia Avenue from Orange Street to Mountain View Avenue • Redlands Boulevard from Orange Street to Waterman Avenue The proposed project would not interfere with the availability of these highways and roadways as evacuation routes. The project would not substantially impair any adopted or informal emergency response plan or evacuation plan, as such no impact would occur.

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b) No Impact. The project site is not located within a fire hazard zone, as identified on the Very High Fire Hazard Severity Zone (VHFHSZ) maps prepared by the California Department of Forestry and Fire Protection (CALFIRE).50 The nearest VHFHSZ is located approximately 3 miles southwest of the project site just south of Beaumont Avenue in Loma Linda. The project site is located in a heavily urbanized area and would not exacerbate wildfire risks, thereby exposing occupants to pollutant concentrations from a wildfire or the uncontrolled spread of a wildfire. No impact would occur. c) No Impact. The project site is not located within or near any State Responsibility Areas as indicated in Section 4.18a. None of the project improvements would exacerbate fire risk or would result in a temporary or ongoing impact from wildfires requiring the installation or maintenance of associated infrastructure that may exacerbate fire risk, or that may result in temporary or ongoing impacts to the environment. No impact would occur.
d) No Impact. The project site is not located within or near any State Responsibility Areas. According to the Federal Emergency Management Agency (FEMA) Flood Maps, the project site is in an area of 1% annual chance flood.
51 The project site is not located in a dam inundation area. The project site is located in a flat area, with little to no potential for landslides or downstream flooding or runoff. If such an event were to occur, the City of Redlands General Plan outlines policies and principles to mitigate potential impacts from flooding. Development of the proposed project would not exacerbate risks to people from flooding or landslides. No impacts would occur.

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4.19 – Mandatory Findings of Significance
Potentially
Significant
Impact
Less Than
Significant
with Mitigation
Incorporated
Less Than
Significant
Impact
No
Impact
a) Does the project have the potential to
substantially degrade the quality of
the environment, substantially reduce
the habitat of a fish or wildlife
species, cause a fish or wildlife
population to drop below selfsustaining levels, threaten to eliminate a plant or animal
community, substantially reduce the
number or restrict the range of a rare
or endangered plant or animal or
eliminate important examples of the
major periods of California history or
prehistory?
□ □ □
b) Does the project have impacts that
are individually limited, but
cumulatively considerable? □ □ □
c) Does the project have environmental
effects which will cause substantial
adverse effects on human beings,
either directly or indirectly?
□ □ □
a) Less than Significant with Impact. The proposed project would not substantially impact any scenic vistas, scenic resources, or the visual character of the area, as discussed in Section 4.1, and would not result in excessive light or glare. The project site is located within a developed area with no natural habitat. The proposed project would not significantly impact any sensitive plants, plant communities, fish, wildlife, or habitat for any sensitive species. Impacts to burrowing owl and migratory birds will be less than significant with mitigation and adherence to existing regulations. There are no jurisdictional waters on the project site. There will be no impacts to possible historical or archaeological resources.

The environmental analysis provided in Section 4.3 concludes that impacts related to emissions of criteria pollutants and other air quality impacts would be less than significant with mitigation. Section

4.8 concludes that impacts related to climate change would be less than significant. Impacts related to hydrology and water quality would be less than significant. Based on the preceding analysis of potential impacts in the responses to items 4.1 through 4.20, no evidence is presented that this proposed project would degrade the quality of the environment. Impacts related to degradation of the environment, biological resources, hydrology and water quality would be less than significant. b) Less than Significant Impact. Cumulative impacts can result from the interactions of environmental changes resulting from one proposed project with changes resulting from other past, present, and future projects that affect the same resources, utilities and infrastructure systems, public services, transportation network elements, air basin, watershed, or other physical conditions. Such Redlands Regular Meeting of 11-19-24 348 of 1010
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impacts could be short-term and temporary, usually consisting of overlapping construction impacts, as well as long-term, due to the permanent land-use changes and operational characteristics involved with the proposed project. Cumulative impacts would be less than significant, as further discussed herein.

Aesthetics
Impacts related to aesthetics at the project-level have no potential for cumulative impacts because impacts are limited to on-site conditions and include no component that could result in similar impacts over time or space. Therefore, no cumulative impacts related to this topic would occur.

Agricultural Resources
The analysis provided in Sections 4.2 found that no individual impacts would occur; therefore, the Project could not contribute considerably to local agriculture or forestry.

Air Quality
The analysis provided in Section 4.3 and the Air Quality Health Risk Assessment found that impacts would be less than significant with adherence to the recommended mitigation below:

AIR-1: During construction of the proposed project, the project contractor shall ensure all off‐ road diesel‐powered construction equipment of 50 horsepower or more used for the project is equipped with Level 3 diesel particulate filters or equivalent.

Biological Resources
The analysis provided in Section 4.4 found that no individual impacts to sensitive species or migratory birds would occur with implementation of mitigation; therefore, the project would not contribute considerably to regional impacts on such species, and impacts would be less than significant. project would have no other impacts on biological resources and would not result in localized or regional cumulative impacts, and as such, impacts would be less than significant. Mitigations for nesting birds include the following:

BIO-1: If vegetation removal is scheduled during the nesting season (typically February 1 to September 1), then a focused survey for active nests shall be conducted by a qualified biologist no more than five (5) days before the beginning of project-related activities (e.g., demolition, excavation, grading and vegetation removal). Surveys must be conducted in proposed work areas, staging and storage areas, and soil, equipment, and material stockpile areas. For passerines and small raptors, surveys must be conducted within a 250-foot radius surrounding the work area (in non-developed areas and where access is feasible). For larger raptors, such as those from the genus Buteo, the survey area must encompass a 500-foot radius. Surveys must be conducted by a qualified biologist during weather conditions suited to maximize the observation of possible nests and concentrate on areas of suitable habitat. If a lapse in project-related work of five days or longer occurs, an additional nest survey is required before work can be reinitiated. If nests are encountered during any preconstruction survey, a qualified biologist must determine if it may be feasible for construction to continue as planned without impacting the success of the nest, depending on conditions specific to each nest and the relative location and rate of construction activities. Any nest(s) within the project site shall be monitored by a qualified biologist during vegetation removal if work is occurring directly adjacent to the pre-determined no-work buffer. If the qualified biologist determines construction activities have potential to adversely affect a nest, the biologist will immediately inform the construction manager to halt construction activities within minimum exclusion buffer of 50 feet for songbird nests, and 200 to 500 feet for raptor nests, depending on species and location. Construction activities within the no-work buffer may proceed after a Redlands Regular Meeting of 11-19-24 349 of 1010
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qualified biologist determines the nest is no longer active due to natural causes (e.g., young have fledged, predation or other non-anthropogenic nest failure).

Cultural Resources
The analysis provided in Section 4.5 and the Historical/Archaeological Resources Survey found that impacts to historic or archaeological resources would be less than significant with adherence to the recommended Mitigation measures below. Mitigations for Cultural Resources include the following:

CUL-1: Buried Cultural Resources. In the event that cultural resources are discovered during project activities, all work in the immediate vicinity of the find (within a 60-foot buffer) shall cease and a qualified archaeologist meeting Secretary of Interior standards shall be hired to assess the find. Work on the other portions of the project outside of the buffered area may continue during this assessment period. Additionally, the Yuhaaviatam of San Manuel Nation Cultural Resources Department (YSMN) shall be contacted, as detailed within TCR-1, regarding any pre-contact and/or historic-era finds and be provided information after the archaeologist makes his/her initial assessment of the nature of the find, so as to provide Tribal input with regards to significance and treatment.

CUL-2: Monitoring and Treatment. If significant pre-contact and/or historic-era cultural resources, as defined by CEQA (as amended, 2015), are discovered and avoidance cannot be ensured, the archaeologist shall develop a Monitoring and Treatment Plan, the drafts of which shall be provided to YSMN for review and comment, as detailed within TCR-1. The archaeologist shall monitor the remainder of the project and implement the Plan accordingly.

CUL-3: Funerary Discovery. If human remains or funerary objects are encountered during any activities associated with the project, work in the immediate vicinity (within a 100-foot buffer of the find) shall cease and the County Coroner shall be contacted pursuant to State Health and Safety Code §7050.5 and that code enforced for the duration of the project.

Energy
The analysis provided in Section 4.6 found that no individual impacts related to energy use would occur as a result of the proposed project. Therefore, the project would not contribute to cumulative energy impacts.

Geology and Soils
Impacts related to geology at the project-level have no potential for cumulative impacts. Therefore, the proposed project would have no contribution to potential geological or soil degradation or other such impacts. If during construction operations, paleontological resources are discovered, Mitigation Measure GEO-1 is given to establish proper care and attention to such discoveries. Impacts related to this topic would be less than significant. Mitigation for Geology and Soils are as follows:

GEO-1: If paleontological materials are uncovered during grading or other earth moving activities, the contractor shall be required to halt work in the immediate area of the find, and to retain a professional paleontologist to examine the materials to determine whether it is a significant paleontological resource. If this determination is positive, resource shall be left in place, if determined feasible by the project paleontologist. Otherwise, the scientifically consequential information shall be fully recovered by the paleontologist.

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in the immediate location of the find until all information recovery has been completed and a report concerning it filed with the Community Development Director. The applicant shall bear the cost of implementing this mitigation.

Greenhouse Gas Emissions
As discussed in Section 4.8, climate change is the result of numerous, cumulative sources of greenhouse gas emissions all over the world. The project would not contribute considerably to global climate change.

Hazardous Materials
The analysis provided in Section 4.9 related to hazards and hazardous materials, and the associated Phase I Environmental Site Assessment found that impacts would be less than significant with adherence to the following mitigation measures listed below. Additionally, compliance with all regulations related to the disposal and storage of household hazardous waste would ensure that impacts would be less than significant.

HAZ-1 Soil Testing. Prior to issuance of a grading permit, representative soil sampling will be conducted onsite at depths of one and three feet and tested for organochlorine pesticides (OCPs) and heavy metals which may be present from past agricultural activities. The developer shall retain a qualified environmental professional (QEP) to design and supervise the sampling and testing. A final report shall be prepared summarizing the results of this testing and where onsite soils meet current industrial standards for sampled materials.

If the QEP determines that all onsite soil meets industrial standards, no further action is required. If onsite soils do not meet industrial standards, the QEP will work with the developer and grading contractor to determine how onsite soils can be mixed with clean offsite or imported soils to achieve the industrial standard for the entire site. The QEP, developer, and grading contractor shall also identify if or how much soil needs to be removed from the site. The collection and disposal of any excavated contaminated soils shall be in accordance with applicable hazardous materials regulations.

HAZ-2 Soil Vapor Extraction (SVE) System. Onsite SVE remediation activities began in September 2022 and were ongoing during preparation of the CEQA document. Two deep extraction wells (SVE-1 and SVE-2) are located on the northern and western portions of the site outside of the existing warehouse building. However, these wells would be impacted by development of the new warehouse project. Based on ongoing soil vapor monitoring, the existing SVE remediation activities will be completed by June 2023. These activities must be completed, and a final report submitted to the City prior to issuance of a grading permit for the new warehouse. Regulatory oversight and approval of this system will be at the discretion of the San Bernardino County Fire Department as the County’s Certified Unified Program Agency (CUPA). If the CUPA declines to be the regulatory authority for this oversight, the applicant shall enter into a Voluntary Cleanup Program (VCP) with the California Department of Toxic Substances Control (DTSC). The applicant must document the site meets all applicable health standards for groundwater and soil per the appropriate regulatory authority discussed above before a grading permit can be issued. Additional details on the SVE system can be found in Roux’s SVE Pilot Test Technical Memorandum dated January 4, 2023 and the DRAFT Construction Completion Report dated March 3, 2023.

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Once it is documented that applicable health standards have been met by the existing SVE activities, they can be shut down and all wells and subsurface piping shall be removed from the site. Confirmatory soil vapor samples will then be used to conduct a post-remediation human health risk assessment (HHRA). If the post-remediation HHRA shows risk less than 1:1,000,000 (“one in a million new cancer deaths”), no additional work associated with residual VOC concentrations is required (i.e., Mitigation Measure HAZ-3 is not required). If the post-remediation HHRA shows risk greater than 1:1,000,000 then the developer shall implement Mitigation Measure HAZ-3.

HAZ-3 Vapor Intrusion Mitigation System (VIMS). If the post-remediation HHRA outlined in HAZ-2 shows risk greater than 1:1,000,000, a passive sub-slab Vapor Intrusion Mitigation System (VIMS) shall be installed beneath the future warehouse building. The VIMS will generally consist of the following components (from bottom to top): (1) Gravel bed above the certified pad; (2) Horizontal perforated piping within the gravel bed to capture and convey residual vapors; (3) Spray-applied barrier above the gravel bed and below the building slab; and (4) Vertical risers to vent vapors to the atmosphere above the roof line.

If the VIMS is determined to be necessary, it shall be designed by a qualified professional engineer (P.E.) licensed in California. The VIMS design will be finalized prior to the start of building construction.

The VIMS system shall be designed to allow regular monitoring of vapor concentrations.

After occupancy, monitoring shall be conducted and documented quarterly for the first year, semi-annually the second year, and annually thereafter for five years.

The installation and monitoring of the VIMS system shall be under the oversight of the City Engineering Department in consultation with the County Fire Department, Hazardous Materials Division as the Certified Unified program Agency (CUPA) for the County.

HAZ-4 Soil Management Plan (SMP). After remediation is complete and prior to grading and earth movement, a Soil Management Plan (SMP) shall be prepared to provide protocols and procedures if unexpected or unknown subsurface conditions are encountered at the project site. The SMP will be shared with all contractors involved with earth movement and import activities, if any. The SMP will identify parties to be contacted if unexpected or unknown conditions are encountered, including an environmental professional and regulatory agencies if necessary (e.g., if an underground storage tank is encountered).

Land Use and Planning
The analysis provided in Section 4.11 related to Land Use and Planning found that impacts would be less than significant; therefore, while the proposed project would contribute to individual, localized, or regional cumulative impacts, its contribution would not be considerable.

Mineral Resources
The analysis provided in Section 4.12 related to mineral resources found that there would be no impact; therefore, while the project would contribute to localized or regional cumulative impacts, the project contribution would not be considerable.

Noise
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As discussed in Section 4.13, on-site operational noise is not anticipated to result in perceptible increases in ambient noise with the implementation of Best Management Practices. Therefore, the proposed project would not contribute considerably to noise levels in the immediate vicinity of the project. The project would contribute to temporary increases in noise levels in the immediate project vicinity during construction activities; however, Best Management Practices would be incorporated to ensure that impacts to nearby sensitive receptors remain less than significant. Therefore, the project would have no considerable contribution to cumulative noise impacts.

Population and Housing
The analysis provided in Section 4.14 related to Population and Housing found that no impacts would result; therefore, no cumulative impacts related to this topic would occur.

Public Services
The analysis provided in Section 4.15 related to Public Services found that impacts would be less than significant; therefore, while the proposed project would contribute to localized cumulative impacts, the contribution would not be cumulatively considerable.

Recreation
The analysis provided in Section 4.16 related to Recreation found that impacts would be less than significant; therefore, no cumulative impacts related to this topic would occur.

Traffic and Transportation
Traffic conditions were analyzed in Section 4.17 and found to be less than significant. The proposed project’s contribution to cumulative impacts to local and regional transportation facilities would not be considerable.

Tribal Cultural Resources
The analysis provided in Section 4.18, the Historical/Archaeological Resources Survey, and consultation with the Yuhaaviatam of San Manuel Nation (YSMN), found that impacts to tribal cultural resources will be less than significant with adherence to the recommended Mitigation measures below.

Mitigations for Cultural Resources include the following:

TCR-1 Cultural Resources Monitoring and Treatment. The Yuhaaviatam of San Manuel Nation Cultural Resources Department (YSMN) shall be contacted, as detailed in CUL1, of any pre-contact and/or historic-era cultural resources discovered during project implementation, and be provided information regarding the nature of the find, so as to provide Tribal input with regards to significance and treatment. Should the find be deemed significant, as defined by CEQA (as amended, 2015), a cultural resources Monitoring and Treatment Plan shall be created by the archaeologist, in coordination with YSMN, and all subsequent finds shall be subject to this Plan. This Plan shall allow for a monitor to be present that represents YSMN for the remainder of the project, should YSMN elect to place a monitor on-site.

Utilities and Service Systems
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The analysis provided in Section 4.19 related to Utilities and Service Systems found that impacts would be less than significant; therefore, while the project would contribute to localized or regional cumulative impacts, the project contribution would not be considerable.

Wildfire
The analysis provided in Section 4.20 related to Wildfire found that no impacts would result; therefore, no cumulative impacts related to this topic would occur. c) Less than Significant Impact. The proposed project would not have environmental effects which would cause substantial adverse effects on humans, either directly or indirectly, as noted in the previous sections above.

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5 Mitigation Summary
AIR-1: During construction of the proposed project, the project contractor shall ensure all off‐ road diesel powered construction equipment of 50 horsepower or more used for the project is equipped with Level 3 diesel particulate filters or equivalent.

BIO-1: If vegetation removal is scheduled during the nesting season (typically February 1 to September 1), then a focused survey for active nests shall be conducted by a qualified biologist no more than five (5) days before the beginning of project-related activities (e.g., demolition, excavation, grading and vegetation removal). Surveys must be conducted in proposed work areas, staging and storage areas, and soil, equipment, and material stockpile areas. For passerines and small raptors, surveys must be conducted within a 250-foot radius surrounding the work area (in non-developed areas and where access is feasible). For larger raptors, such as those from the genus Buteo, the survey area must encompass a 500-foot radius. Surveys must be conducted by a qualified biologist during weather conditions suited to maximize the observation of possible nests and concentrate on areas of suitable habitat. If a lapse in project-related work of five days or longer occurs, an additional nest survey is required before work can be reinitiated. If nests are encountered during any preconstruction survey, a qualified biologist must determine if it may be feasible for construction to continue as planned without impacting the success of the nest, depending on conditions specific to each nest and the relative location and rate of construction activities. Any nest(s) within the project site shall be monitored by a qualified biologist during vegetation removal if work is occurring directly adjacent to the pre-determined no-work buffer. If the qualified biologist determines construction activities have potential to adversely affect a nest, the biologist will immediately inform the construction manager to halt construction activities within minimum exclusion buffer of 50 feet for songbird nests, and 200 to 500 feet for raptor nests, depending on species and location. Construction activities within the no-work buffer may proceed after a qualified biologist determines the nest is no longer active due to natural causes (e.g., young have fledged, predation or other non-anthropogenic nest failure).

Work on the other portions of the project outside of the buffered area may continue during this assessment period. Additionally, the Yuhaaviatam of San Manuel Nation Cultural Resources Department (YSMN) shall be contacted, as detailed within TCR-1, regarding any pre-contact and/or historic-era finds and be provided information after the archaeologist makes his/her initial assessment of the nature of the find, so as to provide Tribal input with regards to significance and treatment.

CUL-2: If significant pre-contact and/or historic-era cultural resources, as defined by CEQA (as amended, 2015), are discovered and avoidance cannot be ensured, the archaeologist shall develop a Monitoring and Treatment Plan, the drafts of which shall be provided to YSMN for review and comment, as detailed within TCR-1. The archaeologist shall monitor the remainder of the project and implement the Plan accordingly.

CUL-3: If human remains or funerary objects are encountered during any activities associated with the project, work in the immediate vicinity (within a 100-foot buffer of the find) shall cease and the County Coroner shall be contacted pursuant to State Health and Safety Code §7050.5 and that code enforced for the duration of the project.

Redlands Regular Meeting of 11-19-24 355 of 1010
5 – Mitigation Summary
98 Initial Study and Mitigated Negative Declaration
Public Review Draft May 1, 2023
GEO-1: If paleontological materials are uncovered during grading or other earth moving activities, the contractor shall be required to halt work in the immediate area of the find, and to retain a professional paleontologist to examine the materials to determine whether it is a significant paleontological resource. If this determination is positive, the resource shall be left in place, if determined feasible by the project paleontologist. Otherwise, the scientifically consequential information shall be fully recovered by the paleontologist.

Work may continue outside of the area of the find; however, no further work shall occur in the immediate location of the find until all information recovery has been completed and a report concerning it filed with the Community Development Director. The applicant shall bear the cost of implementing this mitigation.

Once it is documented that applicable health standards have been met by the existing SVE activities, they can be shut down and all wells and subsurface piping shall be removed from the site. Confirmatory soil vapor samples will then be used to conduct a post-remediation human health risk assessment (HHRA). If the post-remediation HHRA shows risk less than 1:1,000,000 (“one in a million new cancer deaths”), no additional Redlands Regular Meeting of 11-19-24 356 of 1010
5 – Mitigation Summary
Tennessee Street Warehouse Project (13779) 99
City of Redlands
work associated with residual VOC concentrations is required (i.e., Mitigation Measure HAZ-3 is not required). If the post-remediation HHRA shows risk greater than 1:1,000,000 then the developer shall implement Mitigation Measure HAZ-3.

The VIMS system shall be designed to allow regular monitoring of vapor concentrations.

After occupancy, monitoring shall be conducted and documented quarterly for the first year, semi-annually the second year, and annually thereafter for five years.

TCR-1 Cultural Resources Monitoring and Treatment. The Yuhaaviatam of San Manuel Nation Cultural Resources Department (YSMN) shall be contacted, as detailed in CUL1, of any pre-contact and/or historic-era cultural resources discovered during project implementation and be provided information regarding the nature of the find, so as to provide Tribal input with regards to significance and treatment. Should the find be deemed significant, as defined by CEQA (as amended, 2015), a cultural resources Monitoring and Treatment Plan shall be created by the archaeologist, in coordination with YSMN, and all subsequent finds shall be subject to this Plan. This Plan shall allow for a monitor to be present that represents YSMN for the remainder of the project, should YSMN elect to place a monitor on-site.

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100 Initial Study and Mitigated Negative Declaration
Public Review Draft May 1, 2023
This Page Intentionally Left Blank.

Redlands Regular Meeting of 11-19-24 358 of 1010
Tennessee Street Warehouse Project (13779) 101
City of Redlands
6 References

6.1 – List of Preparers
City of Redlands
Planning Department
35 Cajon Street, Suite 15-A
Redlands, California 92373
909-798-7555
MIG, Inc.
1650 Spruce Street, Suite 106
Riverside, California 92507
(951) 787-9222
▪ Bob Prasse, Director of Environmental Services
▪ Chris Dugan, Director of Air Quality, GHG, and Noise Services ▪ Kasey Kitowski, Air Quality Noise Analyst
▪ Duncan Edwards, Assistant Planner
▪ Kent Norton, Senior Projects Manager
CRM TECH (Cultural Resources)
1016 E Cooley Dr # B,
Colton, CA 92324
(909) 824-6400
▪ Bai “Tom” Tang, Principal Investigator | Cultural Resources Report ▪ Michael Hogan, Principal Investigator | Cultural Resources Report Gandini Group Inc. (Transportation)
555 Parkcenter Drive, Suite 225
Santa Ana, CA92705
714) 795-3100.
▪ Bryan Crawford, Principal Engineer | Review of VMT Assessment ▪ Giancarlo Gandini, Principal | Review of VMT Assessment LSA (Air Quality, Energy, GHG, & Noise)
20 Executive Park, Suite 200
Irvine, California 92614
(949) 553-0666

6.2 – Persons and Organizations Consulted
▪ N/A
Redlands Regular Meeting of 11-19-24 359 of 1010
6 – References
102 Initial Study and Mitigated Negative Declaration
Public Review Draft May 1, 2023

6.3 – Bibliography
1 City of Redlands. General Plan: Distinctive City Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November 2022]. 2 City of Redlands City Code. Chapter 18.112.260 Dust, Heat, and Glare Restrictions. https://codelibrary.amlegal.com/codes/redlandsca/latest/redlands_ca/0-0-0-18535. [Accessed November 2022].
3 California Department of Conservation. California Important Farmland Finder. https://maps.conservation.ca.gov/DLRP/CIFF/. [Accessed November 2022]. 4 City of Redlands. Zoning Map (PDF). https://www.cityofredlands.org/zoning. [Accessed November 2022].
5 City of Redlands. General Plan: Vital Environment Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022]. 6 U.S. Fish and Wildlife Service. National Wetlands Inventory. https://fwsprimary.wim.usgs.gov/wetlands/apps/wetlands-mapper/. [Accessed January 2023]. 7 U.S. Fish and Wildlife Service. National Wetlands Inventory. https://fwsprimary.wim.usgs.gov/wetlands/apps/wetlands-mapper/. [Accessed January 2023]. 8 City of Redlands City Code. Chapter 12.52: Trees and Tree Protection. https://codelibrary.amlegal.com/codes/redlandsca/latest/redlands_ca/0-0-0-9277. [Accessed January 2023].
9 San Bernardino Valley Water Conservation District. The Upper Santa Ana River Wash Habitat Conservation Plan. https://www.sbvwcd.org/santa-ana-washplan#:~:text=The%20Wash%20Plan%20provides%20several,will%20be%20funded%20in%20per petuity. [Accessed January 2023].
10 City of Redlands. General Plan: Healthy Community Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022]. 11 City of Redlands. General Plan: Healthy Community Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022]. 12 City of Redlands City Code. Chapter 15.04 California Building Code. https://codelibrary.amlegal.com/codes/redlandsca/latest/redlands_ca/0-0-0-11655. [Accessed November 2022].
13 City of Redlands. General Plan: Healthy Community Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022]. 14 City of Redlands. General Plan: Healthy Community Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022]. 15 City of Redlands. General Plan: Healthy Community Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022]. 16 South Coast AQMD. Rule 403 Dust Control Information. https://www.aqmd.gov/home/rulescompliance/compliance/rule-403-dust-control-information. [Accessed November 2022]. 17 City of Redlands City Code. Chapter 13.54.300: NPDES Program Regulatory Fees. https://codelibrary.amlegal.com/codes/redlandsca/latest/redlands_ca/0-0-0-10951. [Accessed November 2022].
18 California Laws - Health and Safety Code. Chapter 6.95. Hazardous Materials Release Response Plans and Inventory. https://www.easylawlookup.com/California-Law/Health-and-SafetyCode/par36866/_easylookup.blp?GO=Prepare&site=easy&print=&data=health&p_start=1620&p_end=1640 &p_para=36866&p_epara=37309&par=36866&displayer=YES#:~:text=The%20Legislature%20de Redlands Regular Meeting of 11-19-24 360 of 1010
6 – References
Tennessee Street Warehouse Project (13779) 103
City of Redlands
clares%20that%2C%20in,threatened%20release%20of%20hazardous%20materials. [Accessed December 2022].
19 California Environmental Protection Agency. Cortese List Data Resources. http://www.calepa.ca.gov/sitecleanup/corteselist/ [Accessed December, 2022]. 20 California Department of Toxic Substances Control. DTSC’s Hazardous Waste and Substances Site List – Site Cleanup (Cortese List).
https://www.envirostor.dtsc.ca.gov/public/search?cmd=search&reporttype=CORTESE&site_type= CSITES,FUDS&status=ACT,BKLG,COM&reporttitle=HAZARDOUS+WASTE+AND+SUBSTANCE S+SITE+LIST+%28CORTESE%29 [Accessed December, 2022].
21 California State Water Resources Control Board. GeoTracker. https://calepa.ca.gov/sitecleanup/corteselist/ [Accessed December, 2022]. 22 California State Water Resources Control Board. Sites Identified with Waste Constituents Above Hazardous Waste Levels Outside the Waste Management Unit. https://calepa.ca.gov/sitecleanup/corteselist/. [Accessed December, 2022]. 23 California State Water Resources Control Board. List of Active CDO and CAO. https://calepa.ca.gov/sitecleanup/corteselist/. [Accessed December 2022]. 24 California Department of Toxic Substances Control. Cortese List: Section 65962.5(a). https://calepa.ca.gov/sitecleanup/corteselist/. [Accessed December 2022]. 25 City of Redlands. General Plan: Healthy Community Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed December, 2022]. 26 Board of Forestry and Fire Protection. State Responsibility Area Viewer. https://bof.fire.ca.gov/projects-and-programs/state-responsibility-area-viewer/. [Accessed December 2022].
27 City of Redlands. General Plan: Vital Environment Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed January, 2023]. 28 California Department of Water Resources. Groundwater Live. https://storymaps.arcgis.com/stories/b3886b33b49c4fa8adf2ae8bdd8f16c3. [Accessed February 2023].
29 City of Redlands. Erosion Control Plan. https://www.cityofredlands.org/post/erosion-control-plans. [accessed February 2023].
30 City of Redlands City Code. Chapter 15.54.200: Stormwater Management and Rainwater Retention. https://codelibrary.amlegal.com/codes/redlandsca/latest/redlands_ca/0-0-0-27953. [Accessed January 2023].
31 Federal Emergency Management Agency. National Flood Hazard Layer Viewer. https://hazardsfema.maps.arcgis.com/apps/webappviewer/index.html?id=8b0adb51996444d4879338b5529aa9c d&extent=-117.21073441077104,34.051808539287975,-
117.19161562491239,34.060697252900596. [Accessed February 2023]. 32 California Department of Water Resources. Dam Breach Inundation Map. https://fmds.water.ca.gov/webgis/?appid=dam_prototype_v2. [Accessed February 2023]. 33 City of Redlands. General Plan: Livable Community Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022]. 34 City of Redlands. General Plan: Vital Environment Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022]. 35 City of Redlands. General Plan: Healthy Community Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022]. 36 City of Redlands. General Plan: Livable Community Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022].

Redlands Regular Meeting of 11-19-24 361 of 1010
6 – References
104 Initial Study and Mitigated Negative Declaration
Public Review Draft May 1, 2023
37 City of Redlands. Fire Station Locations. https://www.cityofredlands.org/pod/fire-station-locations0. [Accessed December 2022]. 38 City of Redlands. Development Impact Fees. https://www.cityofredlands.org/post/developmentimpact-fees. [Accessed December 2022]. 39 City of Redlands. Development Impact Fees. https://www.cityofredlands.org/post/developmentimpact-fees. [Accessed December 2022]. 40 City of Redlands. Development Impact Fees. https://www.cityofredlands.org/post/developmentimpact-fees. [Accessed December 2022]. 41 City of Redlands. Development Impact Fees. https://www.cityofredlands.org/post/developmentimpact-fees. [Accessed December 2022]. 42 City of Redlands City Code. Chapter 15.04 California Building Code. https://codelibrary.amlegal.com/codes/redlandsca/latest/redlands_ca/0-0-0-11655. [Accessed December 2022].
43 City of Redlands. Water System. https://www.cityofredlands.org/post/water-system. [Accessed January 2023].
44 City of Redlands. Water System. https://www.cityofredlands.org/post/water-system. [Accessed January 2023].
45 Upper Santa Ana River Watershed. Integrated Regional Urban Water Management Plan. https://www.cityofredlands.org/sites/main/files/fileattachments/part_2_chapter_4_redlands_2020_uwmp.pdf?1622145365 [Accessed January 2023].
46 CalRecycle. SWIS Facility / Site Activity Details.
https://www2.calrecycle.ca.gov/SolidWaste/SiteActivity/Details/1906?siteID=2688. [Accessed February 2023].
47 CalRecycle. Estimated Solid Waste Generation Rates.
https://www2.calrecycle.ca.gov/wastecharacterization/general/rates. [Accessed February 2023]. 48 CAL Fire. State Responsibility Area Viewer. https://calfireforestry.maps.arcgis.com/apps/webappviewer/index.html?id=468717e399fa4238ad86861638765c e1. [Accessed November 2022].
49 City of Redlands. General Plan: Healthy Community Element. https://www.cityofredlands.org/post/planning-division-general-plan. [Accessed November, 2022]. 50 CAL Fire. Fire Hazard Severity Zone Maps. https://osfm.fire.ca.gov/divisions/community-wildfirepreparedness-and-mitigation/wildland-hazards-building-codes/fire-hazard-severity-zones-maps/. [Accessed November 2022].
51 Federal Emergency Management Agency. Flood Map Service Center. https://msc.fema.gov/portal/search?AddressQuery=Redlands#searchresultsanchor. [Accessed November 2022].

Redlands Regular Meeting of 11-19-24 362 of 1010
301 Tennessee Street Warehouse Project
Mitigation Monitoring and Reporting Program
Lead Agency:

City of Redlands
35 Cajon St., Ste. 20/P.O. Box 3005
Redlands, CA 92373
Office 909.798.7555 ext. 7344
Prepared by:

MIG, Inc.
1650 Spruce Street, Suite 106
Riverside, California 92507
May 4, 2023
Redlands Regular Meeting of 11-19-24 363 of 1010
- This document is designed for double-sided printing - Redlands Regular Meeting of 11-19-24 364 of 1010
Modified Costco Expansion Project (13712) 1
City of Redlands

MITIGATION MONITORING AND REPORTING PROGRAM
The California Environmental Quality Act (CEQA) requires that a public agency adopting a Mitigated Negative Declaration (MND) take affirmative steps to determine that approved mitigation measures are implemented after project approval. The lead or responsible agency must adopt a reporting and monitoring program for the mitigation measures incorporated into a project or included as conditions of approval. The program must be designed to ensure compliance with the MND during project implementation (California Public Resources Code, Section 21081.6(a)(l)). This Mitigation Monitoring and Reporting Program (MMRP) will be used by the City of Redlands to ensure compliance with adopted mitigation measures identified in the Addendum to the MND for the 301 Tennessee Street Warehouse Project (“project”) when construction of the proposed project begins. The City of Redlands, as the lead agency, will be responsible for ensuring that all mitigation measures are carried out. Implementation of the mitigation measures would reduce impacts to below a level of significance for air quality, biological resources, cultural resources (archaeological), geology and soils (paleontological), hazards and hazardous materials, and Tribal cultural resources. The remainder of this MMRP consists of a table that identifies the mitigation measures by resource for each project component. The table identifies the mitigation monitoring and reporting requirements, including the method for verifying implementation of the mitigation measure, timing of verification (before, during, or after construction), and responsible party. Space is provided for sign-off following completion/implementation of the mitigation measure. The source document is the Initial Study/Mitigated Negative Declaration prepared for the proposed Project (dated May 1, 2023).

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2 Mitigation Monitoring and Reporting Program
May 4, 2023
This Page Intentionally Left Blank.

Redlands Regular Meeting of 11-19-24 366 of 1010
Tennessee Street Warehouse Project (13779) 3
City of Redlands

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date

AIR QUALITY
Expose Sensitive
Receptors to
Substantial
Pollutant
Concentrations.

AIR-1: During construction of the
proposed project, the project
contractor shall ensure all off‐road
diesel‐powered construction
equipment of 50 horsepower or more
used for the project is equipped with
Level 3 diesel particulate filters or
equivalent.

Construction
Contractor/ Project
Proponent
City of Redlands
Development
Services Department
Review of
construction
plans/
monitoring
logs by City
staff.

Prior to issuance
of grading/
construction
permits.

Field verification
during
construction.

BIOLOGICAL RESOURCES
Potential Impacts
on Nesting Birds.

Prior to issuance
of grading/
construction
permits.

Field verification
prior to grading
and during
construction.

Redlands Regular Meeting of 11-19-24 367 of 1010
4 Mitigation Monitoring and Reporting Program
May 4, 2023

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
survey area must encompass a 500-
foot radius. Surveys must be
conducted by a qualified biologist
during weather conditions suited to
maximize the observation of possible
nests and concentrate on areas of
suitable habitat. If a lapse in projectrelated work of five days or longer occurs, an additional nest survey is
required before work can be
reinitiated. If nests are encountered
during any preconstruction survey, a
qualified biologist must determine if it
may be feasible for construction to
continue as planned without
impacting the success of the nest,
depending on conditions specific to
each nest and the relative location
and rate of construction activities.

Any nest(s) within the project site
shall be monitored by a qualified
biologist during vegetation removal if
work is occurring directly adjacent to
the pre-determined no-work buffer. If
the qualified biologist determines
construction activities have potential
to adversely affect a nest, the
biologist will immediately inform the
construction manager to halt
construction activities within
minimum exclusion buffer of 50 feet
for songbird nests, and 200 to 500
Redlands Regular Meeting of 11-19-24 368 of 1010
Tennessee Street Warehouse Project (13779) 5
City of Redlands

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
feet for raptor nests, depending on
species and location. Construction
activities within the no-work buffer
may proceed after a qualified
biologist determines the nest is no
longer active due to natural causes
(e.g., young have fledged, predation
or other non-anthropogenic nest
failure).

CULTURAL RESOURCES
Adverse Change in
the Significance of
an Archaeological
Resource.

CUL-1: In the event that cultural
resources are discovered during
project activities, all work in the
immediate vicinity of the find (within
a 60-foot buffer) shall cease and a
qualified archaeologist meeting
Secretary of Interior standards shall
be hired to assess the find. Work on
the other portions of the project
outside of the buffered area may
continue during this assessment
period. Additionally, the
Yuhaaviatam of San Manuel Nation
Cultural Resources Department
(YSMN) shall be contacted, as
detailed within TCR-1, regarding any
pre-contact and/or historic-era finds
and be provided information after the
archaeologist makes his/her initial
assessment of the nature of the find,
so as to provide Tribal input with
Construction
Contractor/ Project
Proponent
City of Redlands
Development
Services Department
Review of
cultural
resources
survey/
monitoring
logs by City
staff.

During grading
and during
construction.

Redlands Regular Meeting of 11-19-24 369 of 1010
6 Mitigation Monitoring and Reporting Program
May 4, 2023

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
regards to significance and
treatment.

Adverse Change in
the Significance of
an Archaeological
Resource.

CUL-2: If significant pre-contact
and/or historic-era cultural
resources, as defined by CEQA (as
amended, 2015), are discovered and
avoidance cannot be ensured, the
archaeologist shall develop a
Monitoring and Treatment Plan, the
drafts of which shall be provided to
YSMN for review and comment, as
detailed within TCR-1. The
archaeologist shall monitor the
remainder of the project and
implement the Plan accordingly.

Construction
Contractor/ Project
Proponent
City of Redlands
Development
Services Department
Review of
cultural
resources
survey/
monitoring
treatment plan
and logs by
City staff.

Prior to issuance
of grading/
construction
permits.

Verification prior
to grading and
during
construction.

Potential
Disturbance of
Buried Human
Remains.

CUL-3: If human remains or
funerary objects are encountered
during any activities associated with
the project, work in the immediate
vicinity (within a 100-foot buffer of
the find) shall cease and the County
Coroner shall be contacted pursuant
to State Health and Safety Code
§7050.5 and that code enforced for
the duration of the project.

Construction
Contractor
City of Redlands
Community
Development
Department
County of San
Bernardino Sheriff’s
Department/ Coroner
Division
Review of
monitoring
logs by City
staff.

Field verification
during grading
and
construction.

GEOLOGY AND SOILS
Redlands Regular Meeting of 11-19-24 370 of 1010
Tennessee Street Warehouse Project (13779) 7
City of Redlands

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
Adverse Change in
the Significance of
a Paleontological
Resource.

If this determination is positive, the
resource shall be left in place, if
determined feasible by the project
paleontologist. Otherwise, the
scientifically consequential
information shall be fully recovered
by the paleontologist. Work may
continue outside of the area of the
find; however, no further work shall
occur in the immediate location of
the find until all information recovery
has been completed and a report
concerning it filed with the
Community Development Director.

The applicant shall bear the cost of
implementing this mitigation.

Construction
Contractor/ Project
Proponent
City of Redlands
Development
Services Department
Review of
paleontological
resources
survey/
monitoring
logs by City
staff.

Prior to issuance
of grading/
construction
permits.

Field verification
prior to grading
and during
construction.

HAZARDS AND HAZARDOUS MATERIALS
Significant Hazard
as a Result of
Routine Transport,
Use, or Disposal of
HAZ-1: Soil Testing. Prior to
issuance of a grading permit,
representative soil sampling will be
conducted onsite at depths of one
Project Proponent
and Contractor
Review of
sampling and
testing report
by City staff.

Prior to issuance
of grading/
construction
permits.

Redlands Regular Meeting of 11-19-24 371 of 1010
8 Mitigation Monitoring and Reporting Program
May 4, 2023

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
Hazardous
Materials
Significant Hazard
as a Result of
Reasonable
Foreseeable Upset
and Accident
Conditions
Emit Hazardous
Emissions or
Handle Hazardous
Materials Within
One-Quarter Mile
of a School
and three feet and tested for
organochlorine pesticides (OCPs)
and heavy metals which may be
present from past agricultural
activities. The developer shall retain
a qualified environmental
professional (QEP) to design and
supervise the sampling and testing.

A final report shall be prepared
summarizing the results of this
testing and where onsite soils meet
current industrial standards for
sampled materials.

If the QEP determines that all onsite
soil meets industrial standards, no
further action is required. If onsite
soils do not meet industrial
standards, the QEP will work with the
developer and grading contractor to
determine how onsite soils can be
mixed with clean offsite or imported
soils to achieve the industrial
standard for the entire site. The
QEP, developer, and grading
contractor shall also identify if or how
much soil needs to be removed from
the site. The collection and disposal
of any excavated contaminated soils
shall be in accordance with
applicable hazardous materials
regulations.

City of Redlands
Development
Services Department
Field verification
prior to grading
and during
construction.

Redlands Regular Meeting of 11-19-24 372 of 1010
Tennessee Street Warehouse Project (13779) 9
City of Redlands

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
Significant Hazard
as a Result of
Routine Transport,
Use, or Disposal of
Hazardous
Materials
Significant Hazard
as a Result of
Reasonable
Foreseeable Upset
and Accident
Conditions
Emit Hazardous
Emissions or
Handle Hazardous
Materials Within
One-Quarter Mile
of a School
HAZ-2: Soil Vapor Extraction
(SVE) System. Onsite SVE
remediation activities began in
September 2022 and were ongoing
during preparation of the CEQA
document. Two deep extraction
wells (SVE-1 and SVE-2) are located
on the northern and western portions
of the site outside of the existing
warehouse building. However, these
wells would be impacted by
development of the new warehouse
project. Based on ongoing soil vapor
monitoring, the existing SVE
remediation activities will be
completed by June 2023. These
activities must be completed, and a
final report submitted to the City prior
to issuance of a grading permit for
the new warehouse. Regulatory
oversight and approval of this
system will be at the discretion of the
San Bernardino County Fire
Department as the County’s Certified
Unified Program Agency (CUPA). If
the CUPA declines to be the
regulatory authority for this
oversight, the applicant shall enter
into a Voluntary Cleanup Program
(VCP) with the California
Department of Toxic Substances
Control (DTSC). The applicant must
Project Proponent
and Contractor
City of Redlands
Development
Services Department
Review of
remediation
report by City
staff.

Prior to issuance
of grading/
construction
permits.

Field verification
prior to grading
and during
construction.

Redlands Regular Meeting of 11-19-24 373 of 1010
10 Mitigation Monitoring and Reporting Program
May 4, 2023

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
document the site meets all
applicable health standards for
groundwater and soil per the
appropriate regulatory authority
discussed above before a grading
permit can be issued. Additional
details on the SVE system can be
found in Roux’s SVE Pilot Test
Technical Memorandum dated
January 4, 2023 and the DRAFT
Construction Completion Report
dated March 3, 2023.

Once it is documented that
applicable health standards have
been met by the existing SVE
activities, they can be shut down and
all wells and subsurface piping shall
be removed from the site.

Confirmatory soil vapor samples will
then be used to conduct a postremediation human health risk assessment (HHRA). If the postremediation HHRA shows risk less than 1:1,000,000 (“one in a million
new cancer deaths”), no additional
work associated with residual VOC
concentrations is required (i.e.,
Mitigation Measure HAZ-3 is not
required). If the post-remediation
HHRA shows risk greater than
1:1,000,000 then the developer shall
Redlands Regular Meeting of 11-19-24 374 of 1010
Tennessee Street Warehouse Project (13779) 11
City of Redlands

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
implement Mitigation Measure HAZ3.

Significant Hazard
as a Result of
Routine Transport,
Use, or Disposal of
Hazardous
Materials
Significant Hazard
as a Result of
Reasonable
Foreseeable Upset
and Accident
Conditions
Emit Hazardous
Emissions or
Handle Hazardous
Materials Within
One-Quarter Mile
of a School
HAZ-3: Vapor Intrusion Mitigation
System (VIMS). If the postremediation HHRA outlined in HAZ2 shows risk greater than 1:1,000,000, a passive sub-slab
Vapor Intrusion Mitigation System
(VIMS) shall be installed beneath the
future warehouse building. The
VIMS will generally consist of the
following components (from bottom
to top): (1) Gravel bed above the
certified pad; (2) Horizontal
perforated piping within the gravel
bed to capture and convey residual
vapors; (3) Spray-applied barrier
above the gravel bed and below the
building slab; and (4) Vertical risers
to vent vapors to the atmosphere
above the roof line.

If the VIMS is determined to be
necessary, it shall be designed by a
qualified professional engineer
(P.E.) licensed in California. The
VIMS design will be finalized prior to
the start of building construction.

The VIMS system shall be designed
to allow regular monitoring of vapor
concentrations. After occupancy,
Project Proponent
and Contractor
City of Redlands
Development
Services Department
Review of
remediation
report by City
staff.

Prior to issuance
of grading/
construction
permits.

Field verification
prior to grading
and during
construction.

Redlands Regular Meeting of 11-19-24 375 of 1010
12 Mitigation Monitoring and Reporting Program
May 4, 2023

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
monitoring shall be conducted and
documented quarterly for the first
year, semi-annually the second year,
and annually thereafter for five
years.

The installation and monitoring of the
VIMS system shall be under the
oversight of the City Engineering
Department in consultation with the
County Fire Department, Hazardous
Materials Division as the Certified
Unified program Agency (CUPA) for
the County.

Significant Hazard
as a Result of
Routine Transport,
Use, or Disposal of
Hazardous
Materials
Significant Hazard
as a Result of
Reasonable
Foreseeable Upset
and Accident
Conditions
Emit Hazardous
Emissions or
Handle Hazardous
Materials Within
HAZ-4: Soil Management Plan
(SMP). After remediation is complete
and prior to grading and earth
movement, a Soil Management Plan
(SMP) shall be prepared to provide
protocols and procedures if
unexpected or unknown subsurface
conditions are encountered at the
project site. The SMP will be shared
with all contractors involved with
earth movement and import
activities, if any. The SMP will
identify parties to be contacted if
unexpected or unknown conditions
are encountered, including an
environmental professional and
regulatory agencies if necessary
Project Proponent
and Contractor
City of Redlands
Development
Services Department
Evidence of
submittal of a
Soil
Management
Plan to the
project
contractors
shall be
provided to
City staff and
kept on file.

Prior to issuance
of grading/
construction
permits.

Field verification
prior to grading
and during
construction.

Redlands Regular Meeting of 11-19-24 376 of 1010
Tennessee Street Warehouse Project (13779) 13
City of Redlands

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
One-Quarter Mile
of a School
(e.g., if an underground storage tank
is encountered).

TRIBAL CULTURAL RESOURCES
Substantial Change
in the Significance
of a Tribal Cultural
Resource that is
Listed or Eligible for
Listing in a Historic
Registry.

Substantial Change
in the Significance
of a Tribal Cultural
Resource that is a
Resource
Determined to be
Significant
Pursuant to Public
Resources Code
Section 5024.1.

TCR-1: Cultural Resources
Monitoring and Treatment. The
Yuhaaviatam of San Manuel Nation
Cultural Resources Department
(YSMN) shall be contacted, as
detailed in CUL-1, of any pre-contact
and/or historic-era cultural resources
discovered during project
implementation and be provided
information regarding the nature of
the find, so as to provide Tribal input
with regards to significance and
treatment. Should the find be
deemed significant, as defined by
CEQA (as amended, 2015), a
cultural resources Monitoring and
Treatment Plan shall be created by
the archaeologist, in coordination
with YSMN, and all subsequent finds
shall be subject to this Plan. This
Plan shall allow for a monitor to be
present that represents YSMN for
the remainder of the project, should
Construction
Contractor
City of Redlands
Development
Services Department
Review of
cultural
resources
survey/
monitoring
logs by City
staff.

Prior to issuance
of grading/
construction
permits.

Field verification
prior to grading
and during
construction.

Redlands Regular Meeting of 11-19-24 377 of 1010
14 Mitigation Monitoring and Reporting Program
May 4, 2023

IDENTIFIED
IMPACT

RELATED MITIGATION

MEASURE

MONITORING VERIFICATION
Responsible Party/
Monitoring Party
Method of
Verification
Monitoring
Action/
Implementation
Stage Signature Date
YSMN elect to place a monitor onsite.

Substantial Change
in the Significance
of a Tribal Cultural
Resource that is
Listed or Eligible for
Listing in a Historic
Registry.

Substantial Change
in the Significance
of a Tribal Cultural
Resource that is a
Resource
Determined to be
Significant
Pursuant to Public
Resources Code
Section 5024.1.

TCR-2: Archaeological
Documentation. Any and all
archaeological/cultural documents
created as a part of the project
(isolate records, site records, survey
reports, testing reports, etc.) shall be
supplied to the applicant and Lead
Agency for dissemination to YSMN.

The Lead Agency and/or applicant
shall, in good faith, consult with
YSMN throughout the life of the
project.

Construction
Contractor/ Project
Proponent
City of Redlands
Development
Services Department
Review of
cultural
resources
survey/
monitoring
logs by City
staff.

Prior to issuance
of grading/
construction
permits.

Field verification
prior to grading
and during
construction.

Redlands Regular Meeting of 11-19-24 378 of 1010
Tennessee Street Warehouse Project (13779) 15
City of Redlands
This Page Intentionally Left Blank.

Redlands Regular Meeting of 11-19-24 379 of 1010
to Sean Reilly, Planner Principal Planner, City of Redlands from Bob Prasse, Director of Environmental Services, MIG re 301 Tennessee Street Warehouse Mitigated Negative Declaration, Response to Comments date September 13, 2023
The City of Redlands issued a Notice of Intent to Adopt a Mitigated Negative Declaration (MND) for the proposed 301 Tennessee Street Warehouse Project on May 4th, 2023 initiating a 30-day public review period for the MND that ended on June 2nd 2023. During the public review period the three comments letters listed below were received on the MND.  San Bernardino County Department of Public Works – May 18, 2023  South Coast Air Quality Management District (SCAQMD) – June 2, 2023  Blum, Collins and Ho, LLP, representing the Golden State Environmental Justice Alliance – June 1, 2023
Another letter, dated June 26th, 2023, was also received by the City from the Golden State Environmental Justice Alliance withdrawing their June 1, 2023 comment as well as their opposition to the project. The remaining two letters are included and marked to identify specific comments within each letter. Each of the two letters is followed by detailed responses to each comment. None of the comments from the San Bernardino County Department of Public Works or the SCAQMD identified new, avoidable significant effects not addressed by the MND, nor will they require the imposition of new mitigation measures.

Redlands Regular Meeting of 11-19-24 380 of 1010
SENT VIA E-MAIL: June 2, 2023
[email protected]
Sean Reilly, Principal Planner
City of Redlands, Planning Department
35 Cajon Street, Suite 15-A
Redlands, California 92373
Mitigated Negative Declaration (MND) for the Proposed
301 Tennessee Street Warehouse Project (Proposed Project) (State Clearinghouse Number: 2023050084)
South Coast Air Quality Management District (South Coast AQMD) staff appreciates the opportunity to comment on the above-mentioned document. The City of Redlands is the California Environmental Quality Act (CEQA) Lead Agency for the Proposed Project. The following comments recommended revisions to the localized construction and operation impacts analysis, CEQA regional air quality impacts analysis for cleanup activities during construction, construction mitigation measures, additional recommended air quality mitigation measures, South Coast AQMD Rules 2305 and 316, and information about South Coast AQMD permits and responsible agency that the Lead Agency should include in the Final MND.

South Coast AQMD Staff’s Summary of Project Information in the MND Based on the MND, the Proposed Project proposes developing an approximately 197,397 square feet light industrial warehouse building and demolishing an existing manufacturing warehouse and a single-family house.
1 The Proposed Project is located at the northwest corner of State Street and Tennessee Street on an approximately 10.98-acre site.2 The Proposed Project would involve about 10% of warehouse operations for cold storage.3 According to the Traffic Section of the MND, the Proposed Project would generate 238 daily truck trips for the warehousing portion and 43 daily truck trips for the cold storage portion.4 Based on the Site Plan drawing, the Proposed Project would have 25 loading docks 5associated with the warehouse operation. Trucks access the Proposed Project site via driveways on Kansas Street and Tennessee Street (primary access), and State Street (secondary access).
6 Based on the aerial photographs, South Coast AQMD staff finds that the nearest sensitive receptors are within 265 feet southeast (Kindergarten & Kids Care), 350 feet south (Redlands Christian Middle School), and about 760 feet southeast (apartments) of the Proposed Project site. The tentative construction schedule of the Proposed Project is estimated to begin in June 2023 and end in May 2024.7
1 MND. Pages 3 and 4.
2 Ibid. Page 3.
3 Ibid. Page 4.
4 Ibid. Page 78.
5 Ibid. Page 12.
6 Ibid. Page 4.
7 Ibid. Page 23.

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2 South Coast AQMD Staff’s Comments on the MND
Localized Construction and Operation Impacts Analysis
Under Section 4.3 - Air Quality in the MND, the Lead Agency only discusses the regional construction and operation impacts but not the localized impacts of the Proposed Project. However, the localized impacts analysis is only included in Appendix A: Air Quality, Greenhouse Gases, Energy Report, and Health Risk Assessment.
8 Therefore, South Coast AQMD staff recommends
that the Lead Agency revise to include the localized construction and operation impacts analysis in the Final MND so that the analysis is consistently discussed throughout the MND and its appendices.

CEQA Regional Air Quality Impacts Analysis for Cleanup Activities During Construction Based on the Hazards and Hazardous Materials Section in the MND and Appendix C: Phase I Environmental Site Assessment,
9 hazardous substances are likely to present at the property, such as soil impacted by VOCs and total petroleum hydrocarbon (TPH)10. Furthermore, the Limited Phase II Site Investigation has identified VOC contamination at the northern portion of the Proposed Project site, and VOC concentrations have slightly impacted the groundwater.11 It is recommended that soil vapor extraction (SVE) be implemented to remediate soil at the Proposed Project site.12 Hence, the Lead Agency discusses the Mitigation Measures (MM) HAZ-2 through MM HAZ-4 for the remediation and monitoring activities.13 However, the MND contains no analysis of the air quality impacts that quantifies the emissions associated with the remediation activities during construction.

Cleanup activities will likely involve using heavy-duty, diesel-fueled trucks for soil export, resulting in emissions from truck hauling activities and vehicle trips by workers that will be required to conduct cleanup activities. Additionally, cleanup activities will likely require the use of additional equipment that may differ from typical equipment for grading and site preparation for construction. Because cleanup activities are reasonably foreseeable, the Lead Agency should use good faith and best efforts to provide information on the scope, types, and duration of cleanup activities, quantify emissions from cleanup activities, and include those emissions in the Proposed Project’s construction emissions profile to be compared to South Coast AQMD’s air quality CEQA significance thresholds for construction to determine the level of significance in the Final MND.

Alternatively, if emissions from cleanup activities are not included in the Final MND, the Lead Agency should include a new air quality mitigation measure in the Air Quality Section of the Final MND to commit to evaluating the potential environmental impacts from cleanup activities through CEQA prior to commencing any cleanup activities. If a new air quality mitigation measure is not included in the Final MND, the Lead Agency should provide reasons supported by substantial evidence in the record to explain why a new air quality mitigation measure is not included. 8 Ibid. Appendix A: Air Quality, Greenhouse Gases, Energy Report, and Health Risk Assessment. Pages 57 and 58. 9 Ibid. Appendix C: Phase I Environmental Site Assessment. 10 Ibid. Page 53.
11 Ibid. Page 54.
12 Ibid.
13 Ibid. Page 55
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3 In addition, the hazardous landfill that accepted contaminated soils is not identified in the MND.

The Lead Agency should identify the hazardous landfill for the contaminated soil and estimate the distance (e.g., one-way truck trip length) from the Proposed Project site. When quantifying emissions from transportation and off-site disposal, the Proposed Project’s construction emissions from haul truck trips for transporting and disposing of contaminated soil should be calculated based on the appropriate one-way truck trip length. Therefore, South Coast AQMD staff recommends that the Lead Agency estimate the amount of contaminated soil that would be removed, calculate the construction emissions reflecting the correct number of hauling truck trips and the hauling trip lengths in CalEEMod and include them in the Final MND. If the number of hauling truck trips and the one-way truck trip lengths are not calculated for quantifying emissions from haul truck trips for transporting contaminated soil, the Lead Agency should provide reasons for not re-calculating it supported by substantial evidence in the record.

Recommended Revision to the Construction Mitigation Measures Under Section 4.3 - Air Quality in the MND, the unmitigated health risks from the Proposed Project’s construction resulted in significant14 as the cancer risks exceed South Coast AQMD Air Quality Significance Thresholds.15 Hence, the Lead Agency proposes the implementation of MM AIR-1 to “ensure all off-road diesel-powered construction equipment of 50 horsepower or more used for the project is equipped with Level 3 diesel particulate filters or equivalent. 16” In addition,
the California Emission Estimator Model (CalEEMod) analysis in Appendix A assumes the use of Tier 2 construction equipment17 during the construction period. Although the implementation of MM AIR-1 would reduce the cancer risks from Proposed Project’s construction activities below the South Coast AQMD Air Quality Significance Thresholds, South Coast AQMD staff recommends that the Lead Agency take a further step and consider the use of cleaner and better technologies (e.g., Tier 4F construction equipment) with the diesel particulate filters, if and where feasible, to further reduce or minimize the impacts of the Proposed Project’s construction activities to the sensitive receptors and off-site workers. The Lead Agency is encouraged to revise the MM to use cleaner technologies during construction and includes the revision in the Final MND. If the revised MM is not included in the Final MND, the Lead Agency should provide reasons for not having them supported by substantial evidence in the record.

Additional Recommended Air Quality Mitigation Measures
In the event that the Proposed Project results in significant adverse air quality impacts, CEQA requires that all feasible mitigation measures that go beyond what is required by law be utilized to minimize these impacts. Any impacts resulting from mitigation measures must also be analyzed.

Several resources to assist the Lead Agency with identifying potential mitigation measures for the Proposed Project include South Coast AQMD’s CEQA Air Quality Handbook,18 South Coast 14 Ibid. Page 27.
15 South Coast AQMD Air Quality Significance Thresholds. Access at: http://www.aqmd.gov/docs/defaultsource/ceqa/handbook/south-coast-aqmd-air-quality-significance-thresholds.pdf 16 Ibid. Page 29.
17 Ibid. Appendix A. Page 44.
18 South Coast AQMD’s CEQA Air Quality Handbook. Access at: https://www.aqmd.gov/home/rules-compliance/ceqa/airquality-analysis-handbook A-5
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4 AQMD’s Mitigation Monitoring and Reporting Plan for the 2022 Air Quality Management Plan,19 and Southern California Association of Government’s Mitigation Monitoring and Reporting Plan for the 2020-2045 Regional Transportation Plan/Sustainable Communities Strategy.20 Mitigation measures for operational air quality impacts from mobile sources that the Lead Agency should consider in the Final MND may include the following:
• Require zero-emissions (ZE) or near-zero emission (NZE) on-road haul trucks, such as heavy-duty trucks with natural gas engines that meet the CARB’s adopted optional NOx emissions standard at 0.02 grams per brake horsepower-hour (g/bhp-hr), if and when feasible. Given the state’s clean truck rules and regulations aiming to accelerate the utilization and market penetration of ZE and NZE trucks, such as the Advanced Clean Trucks Rule21 and the Heavy-Duty Low NOx Omnibus Regulation22, ZE and NZE trucks will become increasingly more available to use. The Lead Agency should require a phasein schedule to incentivize using these cleaner operating trucks to reduce any significant adverse air quality impacts. South Coast AQMD staff is available to discuss the availability of current and upcoming truck technologies and incentive programs with the Lead Agency.

At a minimum, require the use of the 2010 model year23 that meets CARB’s 2010 engine emissions standards at 0.01 g/bhp-hr of particulate matter (PM) and 0.20 g/bhp-hr of NOx emissions or newer, cleaner trucks. Where appropriate, include environmental analyses to evaluate and identify sufficient electricity and supportive infrastructures in the Energy and Utilities and Service Systems Sections in the CEQA document. Include the requirement in applicable bid documents, purchase orders, and contracts. Operators shall maintain records of all trucks associated with project construction to document that each truck used meets these emission standards and make the records available for inspection. The Lead Agency should conduct regular inspections to the maximum extent feasible to ensure compliance. • Limit the daily number of trucks allowed at the Proposed Project to levels analyzed in the Final CEQA document. If higher daily truck volumes are anticipated to visit the site, the Lead Agency should commit to re-evaluating the Proposed Project through CEQA prior to allowing this higher activity level.
• Provide electric vehicle (EV) charging stations or, at a minimum, provide the electrical infrastructure, and electrical panels should be appropriately sized. Electrical hookups should be provided for truckers to plug in any onboard auxiliary equipment. 19 South Coast AQMD’s 2022 Air Quality Management Plan can be found at: http://www.aqmd.gov/home/air-quality/cleanairplans/air-quality-mgt-plan (Chapter 4 - Control Strategy and Implementation) 20 Southern California Association of Governments’ 2020-2045 RTP/SCS can be found at:
https://www.connectsocal.org/Documents/PMND/certified/Exhibit-A_ConnectSoCal_PMND.pdf 21 CARB. June 25, 2020. Advanced Clean Trucks Rule. Accessed at: https://ww2.arb.ca.gov/our-work/programs/advanced-cleantrucks. 22 CARB has recently passed a variety of new regulations that require new, cleaner heavy-duty truck technology to be sold and used in state. For example, on August 27, 2020, CARB approved the Heavy-Duty Low NOx Omnibus Regulation, which will require all trucks to meet the adopted emission standard of 0.05 g/hp-hr starting with engine model year 2024. Accessed at:
https://ww2.arb.ca.gov/rulemaking/2020/hdomnibuslownox. 23 CARB adopted the statewide Truck and Bus Regulation in 2010. The Regulation requires diesel trucks and buses that operate in California to be upgraded to reduce emissions. Newer heavier trucks and buses must meet particulate matter filter requirements beginning January 1, 2012. Lighter and older heavier trucks must be replaced starting January 1, 2015. By January 1, 2023, nearly all trucks and buses will need to have 2010 model year engines or equivalent. More information on the CARB’s Truck and Bus Regulation is available at: https://www.arb.ca.gov/msprog/onrdiesel/onrdiesel.htm.

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5 Mitigation measures for operational air quality impacts from other area sources that the Lead Agency should consider in the Final MND may include the following:
• Maximize the use of solar energy by installing solar energy arrays • Use light-colored paving and roofing materials
• Utilize only Energy Star heating, cooling, and lighting devices, and appliances • Use of water-based or low-VOC cleaning products that go beyond the requirements of South Coast AQMD Rule 1113
Furthermore, the Final MND needs to clarify the routes designated for trucks associated with the Proposed Project development. Thus, design considerations for the Proposed Project that the Lead Agency should consider included in the Final MND to further reduce air quality and health risk impacts include the following:
• Clearly mark truck routes with trailblazer signs so that trucks will not travel next to or near sensitive land uses (e.g., residences, schools, daycare centers, etc.) • Design the Proposed Project such that truck entrances and exits are not facing sensitive receptors and trucks will not travel past sensitive land uses to enter or leave the Proposed Project site
• Design the Proposed Project such that any check-in point for trucks is inside the Proposed Project site to ensure that no trucks are queuing outside • Design the Proposed Project to ensure that truck traffic inside the Proposed Project site is as far away as feasible from sensitive receptors
• Restrict overnight truck parking in sensitive land uses by providing overnight truck parking inside the Proposed Project site
South Coast AQMD staff also suggests the Lead Agency review the references (listed below) and consider including the additional recommended mitigation measures in the Final MND:
• State of California – Department of Justice: Warehouse Projects: Best Practices and Mitigation Measures to Comply with the California Environmental Quality Act24 • South Coast AQMD 2022 South Coast Air Quality Management Plan,25 specifically:
o Appendix IV-A – South Coast AQMD’s Stationary and Mobile Sources Control Measures
o Appendix IV-B – CARB’s Strategy for South Coast
o Appendix IV-C – SCAG’s Regional Transportation Strategy and Control Measures
• United States Environmental Protection Agency (U.S. EPA): Mobile Source Pollution - Environmental Justice and Transportation26
24 State of California – Department of Justice. Warehouse Projects: Best Practices and Mitigation Measures to Comply with the California Environmental Quality Act. Access at: https://oag.ca.gov/system/files/media/warehouse-best-practices.pdf 25 2022 South Coast AQMP. Access at: http://www.aqmd.gov/home/air-quality/clean-air-plans/air-quality-mgt-plan 26 United States Environmental Protection Agency (U.S. EPA): Mobile Source Pollution - Environmental Justice and Transportation. Access at: https://www.epa.gov/mobile-source-pollution/environmental-justice-and-transportation A-11
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6 South Coast AQMD Rules 2305 and 316
On May 7, 2021, South Coast AQMD’s Governing Board adopted Rule 2305 – Warehouse Indirect Source Rule – Warehouse Actions and Investments to Reduce Emissions (WAIRE) Program, and Rule 316 – Fees for Rule 2305. Rules 2305 and 316 are new rules that will reduce regional and local emissions of nitrogen oxides (NOx) and particulate matter (PM), including diesel PM (DPM).

These emission reductions will reduce public health impacts for communities near warehouses from mobile sources associated with warehouse activities. Also, the emission reductions will help the region attain federal and state ambient air quality standards. Rule 2305 applies to owners and operators of warehouses greater than or equal to 100,000 square feet. Under Rule 2305, operators are subject to an annual WAIRE Points Compliance Obligation calculated based on the annual number of truck trips to the warehouse. WAIRE Points can be earned by implementing actions in a prescribed menu in Rule 2305, implementing a site-specific custom plan, or paying a mitigation fee. Warehouse owners are only required to submit limited information reports, but they can optin to earn Points on behalf of the tenants if they choose because certain actions to reduce emissions may be better achieved during the warehouse development phase, for instance, the installation of solar and charging infrastructure. Rule 316 is a companion fee rule for Rule 2305, allowing South Coast AQMD to recover costs associated with Rule 2305 compliance activities. Since the Proposed Project consists of developing warehouses (unrefrigerated and refrigerated) under industrial land use up to a maximum of 197,397 square feet, the Proposed Project’s warehouse owners and operators will be required to comply with Rule 2305 once the warehouse is occupied. Therefore, South Coast AQMD staff recommends that the Lead Agency review South Coast AQMD Rule 2305 to determine the potential WAIRE Points Compliance Obligation for future operators and explore whether additional project requirements and CEQA mitigation measures can be identified and implemented at the Proposed Project that may help future warehouse operators meet the compliance obligation.
27 South Coast AQMD staff is available to answer questions concerning Rule 2305 implementation and compliance by phone or email at (909) 396-3140 or waire[email protected]. For implementation guidance documents and compliance and reporting tools, please visit South Coast AQMD’s WAIRE Program webpage. 28 South Coast AQMD Permits and Responsible Agency
If implementing the Proposed Project would require new stationary equipment, including but not limited to emergency generators, fire water pumps, boilers, etc., permits from South Coast AQMD are required. The Final MND should include a discussion on stationary equipment requiring South Coast AQMD permits and identify South Coast AQMD as a Responsible Agency for the Proposed Project. Any assumptions used for the stationary sources in the Final MND will also be used as the basis for the permit conditions and limits for the Proposed Project. Please contact South Coast AQMD’s Engineering and Permitting staff at (909) 396-3385 for questions on permits. For more general information on permits, please visit South Coast AQMD’s webpage at:
http://www.aqmd.gov/home/permits.
27 South Coast AQMD Rule 2305 – Warehouse Indirect Source Rule – Warehouse Actions and Investments to Reduce Emissions (WAIRE) Program. Accessed at: http://www.aqmd.gov/docs/default-source/rule-book/reg-xxiii/r2305.pdf. 28 South Coast AQMD WAIRE Program. Accessed at: http://www.aqmd.gov/waire.

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7 Conclusion
Pursuant to California Public Resources Code Section 21092.5(b) CEQA Guidelines Section 15074, prior to approving the Proposed Project, the Lead Agency shall consider the MND for adoption together with any comments received during the public review process. Please provide South Coast AQMD with written responses to all comments contained herein prior to the adoption of the Final MND. When responding to issues raised in the comments, detailed reasons supported by substantial evidence in the record to explain why specific comments and suggestions are not accepted must be provided.

We appreciate the opportunity to review the Proposed Project. Thank you for considering these comments. South Coast AQMD staff is available to work with the Lead Agency to address any air quality questions that may arise from this comment letter. Please contact Danica Nguyen, Air Quality Specialist, at [email protected] should you have any questions.

Sincerely,
Sam Wang
Sam Wang
Program Supervisor, CEQA-IGR
Planning, Rule Development & Implementation
SW:DN
SBC230510-08
Control Number
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Transmitted via E-mail
May 18, 2023
File: 10(ENV)-4.01
City of Redlands
Attn: Sean Reilly, Principal Planner
Development Services Department
P.O. Box 3005,
Redlands, CA 92373-1505
[email protected]
RE: CEQA – 301 TENNESSEE STREET WAREHOUSE PROJECT FILING OF NOTICE OF

INTENT TO ADOPT A MITIGATED NEGATIVE DECLARATION IN COMPLIANCE WITH PUBLIC RESOURCES CODE SECTION 21092.3.

Dear Mr. Reilly:

Thank you for allowing the San Bernardino County Department of Public Works the opportunity to comment on the above-referenced project. We received this request on May 05, 2023, and pursuant to our review, the following comments are provided:

Permits/Operations Support Division (Johnny Gayman, Chief, 909-387-7995):

1. The proposed Project is located adjacent to a San Bernardino County Flood Control District (SBCFCD) right-of way and/or facilities (3-501-1A) Mission Channel. Any encroachments including, but not limited to access for grading, fence removal and installation, side drain connections, Trail improvements, and utilities crossing on the District’s right-of-way or facilities will require a permit from the SBCFCD prior to start of construction. Please contact the San Bernardino County Flood Control Permit Section at (909) 387-7995 for further information regarding this process. If you have any questions regarding this process, please contact the FCD Permit Section at (909) 387-1863.

Flood Control Planning Division (Michael Fam, PWE III, 909-387-8120):

1. We are aware there may be storm drains in and around the site that may be affected by the proposed Project. When planning for or altering existing or future storm drains, be advised that the Project is subject to the Redlands Master Plan of Drainage dated, May 2014. It is to be used as a guideline for drainage in the area and is available in the City of Redlands offices.

Any revision to the drainage should be reviewed and approved by the jurisdictional agency in which the revision occurs (i.e., City, County).

Department of Public Works • Flood Control • Special Districts • Operations • Surveyor
• Solid Waste Management • Transportation
Main Office - 825 East Third Street, San Bernardino, CA 92415-0835 | Phone: 909.387.7910 Fax: 909.387.7911 Brendon Biggs, M.S., P.E.

Director
Noel Castillo, P.E.

Assistant Director
David Doublet, M.S., P.E.

Assistant Director
B-1
B-2
Redlands Regular Meeting of 11-19-24 388 of 1010
We respectfully request to be included on the circulation list for all project notices, public reviews, or public hearings. In closing, I would like to thank you again for allowing the San Bernardino County Department of Public Works the opportunity to comment on the above-referenced project.

Should you have any questions or need additional clarification, please contact the individuals who provided the specific comment, as listed above.

Sincerely,
Nancy Sansonetti, AICP
Supervising Planner
Environmental Management
NS:AS:kc
B-3
Redlands Regular Meeting of 11-19-24 389 of 1010
1 301 Tennessee Street Warehouse Project IS/MND, Response to Public Comments Comment
Number
Comment Responses
LETTER A South Coast Air Quality Management District (SCAQMD) A-1 This comment provides introductory remarks. No responses are needed A-2 This comment includes information from the IS/MND project description. It also indicates that the SCAQMD asserts, based on a review of aerial photographs that the nearest sensitive receptors to the project site, Redlands Adventist Academy Kindergarten and Kids Care are 265 feet from the project while the air quality report prepared for the project by LSA indicates that the distance is 275 feet. As referenced in the attached memo (see Attachment 2), LSA reviewed the distance and verified that it is 275 feet. No additional response is needed and no modification to the IS/MND is warranted.

A-3 This comments notes that, while the air quality/greenhouse gas analysis prepared for the IS/MND included an analysis of localized construction and operational impacts, the analysis was not carried forward into the body of the Initial Study. We concur with the SCAQMD’s recommendation to include this part of the analysis in the final adopted MND. Recommended language changes to the MND are included in Attachment 1 of this memorandum.

It should be noted that the modified language is provided for purposes of clarification and does not change the conclusions of the MND, and potential impacts to sensitive receptors remains less than significant.

A-4 The SCAQMD asserts that Mitigation Measures HAZ-2 through HAZ-4 in the Draft IS/MND require implementation of on-site soil vapor extraction (SVE) remediation activities and that the Draft IS/MND contains no analysis of the air quality impacts that quantifies the emissions associated with the remediation activities during construction. In addition, the SCAQMD asserts that cleanup activities will likely involve using heavy-duty, diesel-fueled trucks for soil export, resulting in emissions from truck hauling activities and vehicle trips by workers that will be required to conduct cleanup activities. Additionally, the SCAQMD states that cleanup activities will likely require the use of additional equipment that may differ from typical equipment for grading and site preparation for construction, which should be evaluated in the Final IS/MND. The crux of the SCAQMD’s comment is how the SVE system currently in place on the site works and if it emits any atmospheric VOCs that may be of concern to SCAQMD.

The existing SVE system was processed through and is permitted by the SCAQMD (Permit #F63440 ID 125390) and extracts soil vapor from the subsurface via SVE wells and an extraction blower. The extracted soil vapor is then directed through two carbon adsorption vessels which contain 2,000 pounds of granular activated carbon (GAC). The GAC absorbs and removes any potential volatile organic compounds (VOCs) from the air, which is then emitted from an exhaust stack that is 13 feet above the ground surface. The applicant’s consultant, Roux, performs weekly checks and monthly laboratory analysis to confirm that the effluent air being emitted does not contain VOCs beyond the allowable limits of the SCAQMD permit. To date, there have been no exceedances in the emitted soil vapor.

As identified on page 57 of the Draft IS/MND, onsite SVE remediation activities began in September 2022 and were ongoing during preparation of the IS/MND and the public circulation period. Further, the attached memorandum (see Attachment 3) from Roux Associates entitled “Response to Earthwork Related Public Comments Related to Environmental IS/MND, 301 Tennessee Street and 360 Kansas Street, Redlands, California” confirms that soil remediation and soil vapor using SVE technology began at the project site in September 2022 and are currently on-going. Therefore, it is not expected that any contaminated soils will be encountered or exported. As such, the Draft IS/MND and LSA’s report accurately evaluated construction-related emissions so no changes to the Draft IS/MND or LSA’s report are required or proposed. This information merely expands or clarifies information already in the IS/MND and its technical studies.

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2 Comment
Number
Comment Responses
A-5 In this comment the SCAQMD asked how much contaminated soil or water has already been removed from the site and where it was disposed which might result in additional air pollutant emissions from truck trips that were not anticipated in the IS/MND and the air quality study.

To date, there has not been any contaminated soil or water removed from the project site. Soil removed during drilling and trenching associated with remediation activities was analyzed and profiled as non-hazardous before being disposed of at Soil Safe in Adelanto, California. A total of 9.1 tons of non-hazardous materials were disposed of but this soil is not associated with grading of the Project site for development purposes and was removed consistent with SCAQMD Permit #F63440 . As stated by the hazardous materials environmental consultant Roux Associates, they do not anticipate the need for removal of any contaminated soil materials during or after removal of the SVE unit.

Regarding actual grading for the proposed development, page 4 of the Draft IS/MND explains that, based on the preliminary grading plans, the project would require approximately 23,154 cubic yards of soil import. As discussed on page 45 of LSA’s Air Quality/GHG report, the project’s estimated soil import was included in the California Emissions Estimator Model (CalEEMod) modeling for the project. As such, haul trucks and construction equipment associated with soil import activities were included in CalEEMod. Based on CalEEMod default assumptions and soil import activities, grading would require the use of two excavators, one grader, one rubber-tired dozer, two scrapers, and two tractors/loaders/backhoes. In addition, CalEEMod estimated that there would be approximately 3,060 haul trips associated with the soil import.

All of the construction emissions were adequately addressed in LSA’s Air Quality/GHG report and the IS/MND. In addition, all of the ongoing soil removal associated with remediation activities have been undertaken consistent with SCAQMD (Permit #F63440 ID 125390 (See discussion under response A-4, above).

A-6 This comment recommends that, although the implementation of Mitigation Measure MM AIR-1 would reduce the cancer risks from the proposed project’s construction activities below the SCAQMD Air Quality Significance Thresholds, MM AIR-1 be revised to require Tier 4F construction equipment. Since, as the comment notes, the SCAQMD thresholds are not exceeded with MM AIR -1 in its current form, more stringent requirements are not warranted or necessary.

A construction Health Risk Assessment (HRA), which evaluates construction-period health risk to off-site receptors, was performed for the proposed project as part of the LSA air quality report. The results of the construction HRA are presented on pages 27 and 28 of the Draft IS/MND and pages 63 and 64 of the report. Based on the results of the construction HRA, with implementation of Mitigation Measure AIR-1, which requires the use of Tier 2 construction equipment equipped with Level 3 diesel particulate filters, construction of the proposed project would not exceed SCAQMD thresholds and would not expose nearby sensitive receptors to substantial pollutant concentrations. As impacts would be less than significant with the implementation of Mitigation Measure AIR-1, identification and analysis of additional mitigation, such as Tier 4Fl construction equipment is not warranted and would represent requirements that are disproportionate compared to potential project impacts. Therefore, pursuant to CEQA Guidelines Section 15126.4 (a)(4)(A)–(B), there is no nexus between mitigation requiring Tier 4 construction equipment and the project's air quality and health risk impacts.

A-7 This comment identifies the need for additional mitigation measures if the proposed project has significant adverse impacts: the project does not have such impacts and, therefore additional mitigation measures are not warranted or necessary and would be disproportionate compared to potential project impacts.

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3 Comment
Number
Comment Responses
A-8 This comment asks for consideration of requirements for zero-emissions (ZE) or near-zero emission (NZE) on-road haul trucks. Since impacts with respect to the construction and operation of the project would be less than significant with application of Mitigation Measure MM Air-1, additional mitigation measures are not warranted or necessary and would be disproportionate compared to potential project impacts.

A-9 This comment recommends considering limiting the daily number of trucks allowed at the proposed project to levels analyzed in the IS/MND.

As demonstrated on pages 25 and 26 of the Draft IS/MND and pages 60 and 61 of LSA’s report, long-term operational emissions, including estimated truck trips, associated with the proposed project were calculated using the CalEEMod and based on widely accepted industry standards. The results shown in Table 5 of the Draft IS/MND indicate that operation of the proposed project would not exceed the SCAQMD’s significance criteria and would result in a less than significant impact on regional air quality. It should also be pointed out that total estimated operational emissions generated from the project are already well below SCAQMD emissions thresholds.

A-10 This comment recommends providing electric vehicle (EV) charging stations or, at a minimum, providing electrical infrastructure.

Since impacts with respect to the construction and operation of the project would be less than significant with application of Mitigation Measure MM Air-1, additional mitigation measures are not warranted or necessary and would be disproportionate compared to potential project impacts.

A-11 This comment includes several recommendations related to active and passive solar mitigation measures and other energy efficiency measures for operational air quality impacts. Since operational impacts would be less than significant, additional mitigation measures are not warranted or necessary and would be disproportionate compared to potential project impacts.

A-12 This comment recommends a variety of measure related to trucks and truck routes. Since operational impacts would be less than significant, additional mitigation measures are not warranted or necessary and would be disproportionate compared to potential project impacts. It should also be noted that the City has officially designated truck routes which include Tennessee Street and West State Street which both are adjacent to the project site.

A-13 This comment suggests that the City, as the Lead Agency, review several identified reference sources and consider including additional mitigation measures in the Final MND. Since operational impacts would be less than significant, additional mitigation measures are not warranted or necessary and would be disproportionate compared to potential project impacts.

A-14 This comments states that the proposed project’s warehouse owners and future operators would be required to comply with SCAQMD’s Rule 2305 and Rule 316 once the warehouse is occupied. The City of Redlands acknowledges that the proposed project’s future owners and operators would be required to comply with SCAQMD’s Rule 2305 and Rule 316 and all other applicable air quality regulations. Given the speculative nature of the proposed project (a tenant has not yet been identified) and the fact that compliance with Rules 2305 and Rule 316 can be attained through a variety of emission reduction strategies that are selected by an individual warehouse operator, no changes to the Draft IS/MND is warranted.

A-15 This comment states that, if the proposed project needs stationary equipment such, equipment may be subject to permits from the SCAQMD are required and recommends a discussion of such future equipment in the IS/MND. At this time, a specific tenant has not yet been identified for the proposed project. Therefore, it is not possible to determine which on-site equipment would be used on the project site and whether permits from SCAQMD would be required. Nevertheless, the Draft IS/MND presents a conservative analysis of the proposed project’s air quality emissions based on available information. No further response is necessary.

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4 Comment
Number
Comment Responses
A-16 This comment is the conclusion of the letter. It references the State CEQA Guidelines section that requires the Lead Agency (the City in this case to consider any comments received during the public review process on an IS/MND. It also requests that a copy of written responses to the SCAQMD comment letter be provided to them prior to the adoption of the IS/MND. The City will provide responses to the comments and also notify the SCAQMD of the date, time, and place of the Planning Commission hearing to be held for this project.

No further response is needed for this comment since no issues related to the adequacy of the IS/MND were raised.

LETTER B San Bernardino County Department of Public Works B-1 This comment notes that the Project is located adjacent to the Mission Channel a San Bernardino County Flood Control District(SBCFCD) facility and notes that any encroachments on the facility or its right-of-way require a permit from the SBCFCD. The City acknowledges this comment but, since it is not directed at the IS/MND, no additional response is needed.

B-2 This comment states that the project is subject to the Redlands Master Plan of Drainage dated, May 2014. This comment is noted. No further response is needed
B-4 This comment request that the Department of Public Works be included on the circulation list for all project notices, public reviews, or public hearings, and thanks the City allowing the San Bernardino County Department of Public Works the opportunity to comment on the project.

Redlands Regular Meeting of 11-19-24 393 of 1010
ATTACHMENT 1
Recommended Addition
to the IS/MND
[Behind this page]
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Attachment 1
Recommended Addition to Air Quality Section
In response to SCAQMD Comment Number A-3, the following text is recommended to be added to Section 4.3 – C of the IS/MND (starting on page 26) related to sensitive receptors c) Less than Significant Impact with Mitigation Incorporated.

Localized Significance Analysis
Project construction and operation emissions were compared to SCAQMD Local Significance Thresholds (LST) based on an 84-meter source-receptor distance and a disturbed acreage of

3.5 acres. By design, the localized impacts analysis only includes on-site sources; however, the CalEEMod outputs do not separate on-site and off-site emissions for mobile sources. For a worst-case scenario assessment, the emissions detailed in Table 7 assume all area source emissions would occur on site, all of the energy source emissions would occur off site at the utility power stations, and 5 percent of the project-related new mobile sources, which is an estimate of the amount of project-related on-site vehicle travel, would occur on site. Considering the total trip length included in CalEEMod, the 5 percent assumption is conservative.

The results of the LST analysis, summarized in Table 6 and Table 7, indicate that the project would not result in an exceedance of the SCAQMD LSTs during project construction or operation.

Table 6
Project Localized Construction Emissions (Lbs./Day)
Source NOX CO PM10 PM2.5
On-Site Project Emissions 51.2 36.7 9.8 5.5
Localized Significance Threshold 298.3 3,386.3 47.5 14.0 Exceeds Threshold? No No No No
Source: Compiled by LSA (January 2023).

Note: Source Receptor Area 35, based on a 3.5-acre construction disturbance daily area, at a distance of 84 meters from the project boundary
CO= carbon monoxide PM2.5= particulate matter less than 2.5 microns in size lbs/day = pounds per day PM10= particulate matter less than 10 microns in size Table 7
Project Localized Operational Emissions (Lbs./Day)
Source NOX CO PM10 PM2.5
On-Site Project Emissions 1.9 1.5 0.7 0.2
Localized Significance Threshold 298.3 3,386.3 12.0 3.9 Exceeds Threshold? No No No No
Source: Compiled by LSA (January 2023).

Note: Source Receptor Area 35, based on a 3.5-acre construction disturbance daily area, at a distance of 84 meters from the project boundary
CO= carbon monoxide PM2.5= particulate matter less than 2.5 microns in size lbs/day = pounds per day PM10= particulate matter less than 10 microns in size NOX= nitrogen oxides
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ATTACHMENT 2
LSA Memo:

Response to SCAQMD
Staff Comments,
July 7 2023
[Behind this page]
Redlands Regular Meeting of 11-19-24 396 of 1010

MEMORANDUM
DATE: July 7, 2023
TO: Heather Roberts and Norah Jaffan, EPD Solutions
FROM: Cara Cunningham, Associate
SUBJECT: Response to SCAQMD Staff Comments
LSA has reviewed comments from Program Supervisor, Sam Wang of the South Coast Air Quality Management District (SCAQMD) on the Draft Initial Study/Mitigated Negative Declaration (IS/MND) for the Proposed 301 Tennessee Street Warehouse Project prepared by the City of Redlands and MIG, Inc. dated May 1, 2023. LSA prepared the Air Quality, Health Risk, Greenhouse Gas, and Energy Impact Report (report) for the proposed project dated February 2023 (Appendix A of the Draft IS/MND). The findings from the report were used as the basis for the findings in the Draft IS/MND.

SCAQMD STAFF’S SUMMARY OF PROJECT INFORMATION
The SCAQMD provided a summary of project-related information contained in the Draft IS/MND, including a brief project description and distance to the nearest sensitive receptors. The SCAQMD states that the nearest sensitive receptors are within 265 feet southeast (Kindergarten & Kids Care), 350 feet south (Redlands Christian Middle School), and about 760 feet southeast (apartments) of the project site.

The report identifies the nearest sensitive receptors on page 4. As identified in the report, the closest sensitive receptor to the project site is Redlands Adventist Academy Kindergarten and Kids Care, located approximately 275 feet southeast of the project site southern boundary opposite West State Street. Other sensitive receptors include Redlands Christian Middle School, located approximately 380 feet from the project site, and Arrowhead Christian Academy Upper School, located approximately 715 feet south of the project site, Redlands Adventist Academy located approximately 780 feet southeast of the project site, single-family residential uses located approximately 800 feet northeast of the project site, and Redlands Apartments located approximately 900 feet southeast from the project site southern boundary.

LSA has confirmed that the distance to the nearest sensitive receptor is approximately 275 feet. In addition, as discussed on pages 48 through 51 of the report, a construction health risk assessment (HRA) using air dispersion modeling was performed using AERMOD, which is approved by the United States Environmental Protection Agency (USEPA) when estimating the air quality impacts associated with point and fugitive sources in simple and complex terrain. The model was used to calculate the annual average pollutant concentrations associated with each emitting source. As shown in Figure 4 Redlands Regular Meeting of 11-19-24 397 of 1010
of the report, receptors were placed at the nearest sensitive receptor locations within the model. As such, the report correctly identified and evaluated impacts to the nearest sensitive receptors. No changes to the Draft IS/MND or report are warranted.

LOCALIZED CONSTRUCTION AND OPERATION IMPACTS ANALYSIS
The SCAQMD recommends that the Final IS/MND include the localized construction and operation impacts analysis.

As demonstrated on pages 61 and 62 of the report, project construction and operational emissions were compared to the localized significance thresholds (LST) screening tables in the East San Bernardino Valley area (SRA 35) based on the distance to the nearest receptors. The results of the LST analysis, summarized in Table N and Table O of the report, indicate that the project would not result in an exceedance of the SCAQMD LSTs during project construction or operation.

AIR QUALITY IMPACTS ANALYSIS FOR CLEANUP ACTIVITIES DURING CONSTRUCTION The SCAQMD asserts that Mitigation Measures HAZ-2 through HAZ-4 in the Draft IS/MND require implementation of on-site soil vapor extraction (SVE) remediation activities and that the Draft IS/MND contains no analysis of the air quality impacts that quantifies the emissions associated with the remediation activities during construction. In addition, the SCAQMD asserts that cleanup activities will likely involve using heavy-duty, diesel-fueled trucks for soil export, resulting in emissions from truck hauling activities and vehicle trips by workers that will be required to conduct cleanup activities. Additionally, the SCAQMD states that cleanup activities will likely require the use of additional equipment that may differ from typical equipment for grading and site preparation for construction, which should be evaluated in the Final IS/MND.

As discussed on page 4 of the Draft IS/MND, based on the preliminary grading plans, the project would require approximately 23,154 cubic yards of soil import. As discussed on page 45 of the report, the project’s estimated soil import was included in the California Emissions Estimator Model (CalEEMod) modeling for the project. As such, haul trucks and construction equipment associated with soil import activities were included in CalEEMod. Based on CalEEMod default assumptions and soil import activities, grading would require the use of two excavators, one grader, one rubber tired dozer, two scrapers, and two tractors/loaders/backhoes. In addition, CalEEMod estimated that there would be approximately 3,060 haul trips associated with the soil import.

As identified on page 57 of the Draft IS/MND, onsite SVE remediation activities began in September 2022 and were ongoing during preparation of the CEQA document. Further, the Response to Earthwork Related Public Comments Related to Environmental IS/MND letter1 confirms that soil remediation and soil vapor using SVE technology began at the project site in September 2022 and are currently on-going. Therefore, it is not expected that any contaminated soils will be encountered 1 Roux Associates, Inc. 2023. Response to Earthwork Related Public Comments Related to Environmental IS/MND, 301 Tennessee Street and 360 Kansas Street, Redlands, California. June 19.

Redlands Regular Meeting of 11-19-24 398 of 1010
or exported. As such, the Draft IS/MND and report accurately evaluated construction-related emissions. No changes to the Draft IS/MND or report are warranted.

RECOMMENDED REVISION TO THE CONSTRUCTION MITIGATION MEASURES The SCAQMD recommends that the City require the use of Tier 4 final construction equipment with the use of diesel particulate filters to further reduce or minimize the impacts of the project’s construction activities to the sensitive receptors and off-site workers.

A construction HRA, which evaluates construction-period health risk to off-site receptors, was performed for the proposed project. The results of the construction HRA are presented on pages 27 and 28 of the Draft IS/MND and pages 63 and 64 of the report. Based on the results of the construction HRA, with implementation of Mitigation Measure AIR-1, which requires the use of Tier 2 construction equipment equipped with Level 3 diesel particulate filters, construction of the proposed project would not exceed SCAQMD thresholds and would not expose nearby sensitive receptors to substantial pollutant concentrations. As impacts would be less than significant with the implementation of Mitigation Measure AIR-1, identification and analysis of additional mitigation, such as Tier 4 final construction equipment, is not required.

ADDITIONAL RECOMMENDED AIR QUALITY MITIGATION MEASURES
The SCAQMD includes a number of suggested mitigation measures to consider in order to reduce impacts related to operational air quality and health risk.

As demonstrated on pages 25 and 26 of the Draft IS/MND and pages 60 and 61 of the report, longterm operational emissions associated with the proposed project were calculated using the CalEEMod. The results shown in Table 5 of the Draft IS/MND and Table M of the report indicate that operation of the proposed project would not exceed the SCAQMD’s significance criteria and would result in a less than significant impact on regional air quality. As such, identification and analysis of mitigation measures suggested in the comment letter is not required.

SCAQMD RULES 2305 AND 316
The SCAQMD states that the proposed project’s warehouse owners and future operators would be required to comply with SCAQMD’s Rule 2305 and Rule 316 once the warehouse is occupied. The City of Redlands acknowledges that the proposed project’s future owners and operators would be required to comply with SCAQMD’s Rule 2305 and Rule 316 and all other applicable air quality regulations. Given the speculative nature of the proposed project (a tenant has not yet been identified) and the fact that compliance with Rules 2305 and Rule 316 can be attained through a variety of emission reduction strategies that are selected by an individual warehouse operator, no changes to the Draft IS/MND or report are warranted.

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SCAQMD PERMITS AND RESPONSIBLE AGENCY
The SCAQMD serves as a Responsible Agency under CEQA if the implementation of the proposed project requires permits from the agency related to the use of new stationary equipment. The comment also provides concluding remarks and agency contact information. The City of Redlands thanks the SCAQMD for its participation in the CEQA review process for the Goodman Commerce Center Project. At this time, a specific tenant has not yet been identified for the proposed project.

Therefore, it is not possible to determine which on-site equipment would be used on the project site and whether permits from SCAQMD would be required. Nevertheless, the Draft IS/MND and report present a conservative analysis of the proposed project’s air quality emissions based on available information. No further response is necessary.

This concludes our response to comments. Please contact Cara Cunningham at [email protected] if you have any additional questions.

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ATTACHMENT 3
Roux Associates
Clarification Memo,
July 19, 2023
[Behind this page]
Redlands Regular Meeting of 11-19-24 401 of 1010

June 19, 2023
Mr. Bob Prasse
MIG, Inc. – Director of Environmental Services
1650 Spruce Street, Suite 106
Riverside, California 92507
Re: Response to Earthwork Related Public Comments Related to Environmental IS/MND, 301 Tennessee Street and 360 Kansas Street, Redlands, California Dear Mr. Prasse,
Roux Associates, Inc. (Roux), on behalf of Duke Realty Tennessee Street, LP, an entity of Prologis, Inc (Owner), has prepared this letter in response to public comments received by the City of Redlands during public circulation of an environmental Initial Study/Mitigated Negative Declaration (IS/MND) for the approximately 11-acre property located at 301 Tennessee Street and 360 Kansas Street, Redlands, California (Site). As relayed by Ms. Heather Duarte of EPD Solutions, Inc. (EPD) on June 12, 2023, clarification has been requested for future redevelopment-related earthwork at the Site. Specifically, questions have been raised as to whether contaminated soils are expected to be encountered during excavation and grading necessary for demolition of an existing 181,500 square foot warehouse building and two ancillary buildings, and/or during grading and construction of a 197,397 square foot light industrial warehouse building.

As previously relayed, remediation of volatile organic compounds (VOCs) in soil and soil vapor using soil vapor extraction (SVE) technology began at the Site in September 2022 and are currently on-going.

Roux initially installed two deep extraction wells, SVE-1 and SVE-2, on the northern and western portions of the Site, outside the warehouse building. In May 2023, an additional deep extraction well, SVE-3, was installed at the central portion of the Site. To date, the SVE system has operated for 220 days. Based on influent concentrations and ongoing soil vapor monitoring, it is anticipated that SVE remediation will be completed by July or August 2023. Additional details on the SVE system can be found in Roux’s SVE Pilot Test Technical Memorandum dated January 4, 20231 and the Soil Vapor Extraction System Construction Completion Report dated April 18, 20232.

Once the SVE system is shut down, confirmation soil and soil vapor samples will be collected to document that VOC contamination has been treated to the extent practicable, and to show that remaining concentrations in shallow soil, if any, are below thresholds that are protective of human health and the environment. Although unexpected, if soil concentrations show that additional remediation is necessary, SVE activities may resume and additional confirmation samples collected. Therefore, it is not expected that any contaminated soils will be encountered or exported during future earthwork activities.

Should you have any questions regarding this response letter, please contact Justin Allen at (714) 904- 4867 or by email at [email protected] or Mauricio H. Escobar at (310) 879-4920 or by email at [email protected] with questions or comments.
1 Roux, SVE Technical Memorandum – 301 Tennessee Street, Redlands, California, January 4, 2023. 2 Roux, SVE System Construction Completion Report – 301 Tennessee Street, Redlands, California, April 18, 2023.

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Sincerely,
ROUX ASSOCIATES, INC.

Justin Allen Mauricio H. Escobar, P.G.

Project Scientist Principal Geologist / Vice President
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10211 Sunland Blvd., Shadow Hills, CA 91040 (818) 650-0030 X101 [email protected] August 24, 2023
Sean Reilly
Principal Planner
City of Redlands
35 Cajon Street, Suite 15-A,
Redlands, CA 92373
Via U.S. Mail and email to [email protected]
re: Comments on Mitigated Negative Declaration for 301 Tennessee Street Warehouse Project, SCH No. 2023050084
Dear Mr. Reilly:

Advocates for the Environment submits the comments in this letter regarding the proposed 301 Tennessee Street Warehouse Project (Project). We are a non-profit publicinterest law firm that uses environmental law to fight to improve the environment in California.

This Project proposes to demolish the existing residence and warehouse building and construct a 197,397 light industrial warehouse on a 10.98-acre site located at the cross-streets of Tennessee Street and State Street. We have reviewed the Mitigated Negative Declaration released in May 2023 (MND) and submit comments regarding the sufficiency of the MND’s Greenhouse-Gas (GHG) analysis under the California Environmental Quality Act (CEQA).

The City Should Require the Project to be Net-Zero
GHG emissions from buildings, including indirect emissions from offsite generation of electricity, direct emissions produced onsite, and from construction with cement and steel, amounted to 21% of global GHG emissions in 2019. (IPCC Sixth Assessment Report, Climate Change 2022, WGIII, Mitigation of Climate Change, p. 9-4.) This is a very large portion of global GHG emissions. It is much less expensive to construct new building projects to be netzero than to obtain the same level of GHG reductions by retrofitting older buildings. Climate damages will keep increasing until we reach net zero GHG emissions, and there is a California state policy requiring the state to be net-zero by 2045. It therefore makes no sense to construct new buildings that are not net-zero.

Two of the largest mixed-use development projects in the history of California, Newhall Ranch (now FivePoint Valencia), and Centennial (part of Tejon Ranch) decided, after environmental groups sued and won under CEQA, to move forward as net-zero communities.

This proves it is feasible. The Applicant for this project should do the same. We urge the City to adopt net-zero as the GHG significance threshold for this project, and require full fair-share mitigation. The CARB 2017 Scoping Plan states that “achieving no net additional increase in Advocates for the Environment
A non-profit public-interest law firm
and environmental advocacy organization
Redlands Regular Meeting of 11-19-24 405 of 1010
Comment Letter to City of City of Redlands Page 2
301 Tennessee Street Warehouse Project August 24, 2023
10211 Sunland Blvd., Shadow Hills, CA 91040 (818) 650-0030 X101 [email protected] GHG emissions, resulting in no contribution to GHG impacts, is an appropriate overall objective for new development.” (p. 101.) Additionally, the CARB 2022 Scoping Plan reaffirms the necessity of a net zero target by expressing: “it is clear that California must transition away from fossil fuels to zero-emission technologies with all possible speed … in order to meet our GHG and air quality targets.” (CARB 2022 Scoping Plan, p. 184.) CARB further encourages a net-zero threshold in its strategies for local actions in Appendix D to the 2022 Scoping Plan. (CARB 2022 Scoping Plan, Appendix D p. 24-26.) The MND fails to show how the Project will do this.

Moving this Project forward as a net-zero project would be the right thing for the City to do and would also help protect the City and the Applicant from CEQA GHG litigation.

CEQA GHG Significance Analysis
The MND derived its GHG significance thresholds from the CEQA Appendix G Guidelines and concluded that the Project’s GHG emissions would be less than significant, claiming the Project would be consistent with plans, policies, and regulations for the reduction of GHG emissions. MND used CalEEMod to quantify the Project’s emissions at 2,304.4 metric tons carbon dioxide equivalent (MTCO2e) per year.

The Chosen Threshold Is Not Supported by Substantial Evidence The City chose a significance threshold of 3,000 MTCO2e as the basis for its significance determination. However, there is no basis for why the City of Redlands needs to adhere to this as a significance threshold. The South Coast Air Quality Management District (SCAQMD) adopted this threshold as a way of demonstrating significance for projects where SCAQMD is the lead agency. Here, the SCAQMD is not the lead agency, but rather, the City of Redlands is the lead agency and must provide support why this threshold should apply for this Project.

Without such reasoning, basing the significance conclusion on this number alone is erroneous and does not support a showing that the GHG impact of the Project would be less than significant.

A CEQA significance determination requires a judgment based on scientific and factual data. (State CEQA Guidelines § 15064(b)(1).) Here, adopting a threshold which was developed in a different, non-applicable context, and failing to analyze or provide support for why the threshold applies to this Project is a clear violation of CEQA’s mandate to support the significance conclusion with data.

Consistency with Identified Applicable Plans
The MND also analyzed consistency with applicable plans, policies or regulations adopted for the purpose of reducing GHG emissions by including a discussion of the City’s Redlands Regular Meeting of 11-19-24 406 of 1010
Comment Letter to City of City of Redlands Page 3
301 Tennessee Street Warehouse Project August 24, 2023
10211 Sunland Blvd., Shadow Hills, CA 91040 (818) 650-0030 X101 [email protected] CAP, the County’s Greenhouse Gas Reduction Plan, the 2022 Scoping Plan, and the 2020– 2045 RTP/SCS. When discussing details of the Project, the MND should be accurate and not misleading. This significance analysis violates CEQA by being deficient and misleading in several areas, as discussed below.

Consistency with SCAG’s 2020-2045 RTP/SCS
The MND analyzed that the Project would “not interfere” with SCAG’s ability to meet its goal of 19% below 2005 levels by 2035 (EIR p. 73; see SCAG’s 2020-2045 RTP/SCS, p. 5.) However, the analysis should demonstrate how it is consistent with this goal, not merely that it will not actively undermine it. This discussion of the RTP/SCS is misleading because it is explaining that the Project will not comply with the consistency measures to get incentives provided by the RTP/SCS, while at the same time trying to argue that it would not conflict with it.

Consistency with the 2022 CARB Scoping Plan
The MND briefly mentioned the 2022 Scoping Plan from the California Air Resources Board (2022 CARB Scoping Plan), but there are significant inconsistencies which the MND failed to analyze. The 2022 Scoping Plan sets a goal for 50% of all industrial energy demand to be electrified by 2045 (2022 CARB Scoping Plan, p. 77). The MND fails to show that the Project will be consistent with this goal. The 2022 CARB Scoping Plan also places particular emphasis on decarbonizing industrial facilities by “displacing fossil fuel use with a mix of electrification, solar thermal heat, biomethane, low- or zero-carbon hydrogen, and other lowcarbon fuels to provide energy for heat and reduce combustion emissions” (2022 2022 CARB Scoping Plan, p. 208).

CalEEMod Deficiencies and Inaccurate Quantifications
CalEEMod was used as a model to estimate existing project emissions to serve as the baseline for the Project. The CalEEMod analysis was included in Appendix A to the MND and was inconsistent with the MND itself in two main ways. The City should explain these inconsistencies or CalEEMod should be rerun to get a more accurate estimation of Project GHG emissions.

First, the CalEEMod runs do not align with the information in the MND. CalEEMod was run in three different runs, Annual (Operational emissions of 1,779 MTCO2e; the figure cited in the MND), Summer (Operational emissions of 8,245 MTCO2e), and Winter (Operational emissions of 7,739.6 MTCO2e). It is not clear why the CalEEMod outputs for Winter and Summer are so much larger than the amount of the total annual emissions. The “Winter” and “Summer” CalEEMod runs were not included in the totals. The lead agency did not discuss why it omitted these outputs from the MND, which are much higher than the Redlands Regular Meeting of 11-19-24 407 of 1010
Comment Letter to City of City of Redlands Page 4
301 Tennessee Street Warehouse Project August 24, 2023
10211 Sunland Blvd., Shadow Hills, CA 91040 (818) 650-0030 X101 [email protected] results for the annual operational emissions. This is confusing and misleading, and not supported by substantial evidence. If the true emissions estimate is closer to the Summer/Winter figures than the Annual estimate, this would provide even more support for a finding of significant GHG impact. Thus, the lead agency should address those CalEEMod runs that resulted in emissions values considerably higher than the quantification in the MND.

Second, at the end of the CalEEMod analysis, a heading for Section 11.0, Vegetation is listed, but there are no parameters for vegetation included. This omission disregards the MND’s role as an informative document by attempting to hide the parameters that went into CalEEMod’s Vegetation analysis for the Project. Even if the Project site does little modifications to vegetation, the extent to which it makes a difference in the quantification of GHG emissions should still be known to the public and the decision makers by including it in the CalEEMod report. The CalEEMod Vegetation analysis also accounts for variation in soil type for carbon sequestration.

The CalEEMod runs are the basis for the MND’s GHG analysis. The MND must connect the dots and show how the GHG inventory figure used in the MND derives from the CalEEMod modelling data, but, the MND for this Project fails to do that, due to the inconsistencies just discussed. These flaws mean that the MND’s GHG analysis is not supported by substantial evidence.

The City Should Draft an EIR and Mitigate to the Fair Share Level No mitigation measures were considered for GHGs due to the erroneous determination of less-than-significant impact. However, because the City should have found significant impact for GHG emissions, it should update its findings accordingly and would therefore be required to create a full Environmental Impact Report (EIR) and mitigate to the fair share level. (Napa Citizens for Honest Gov’t v. Napa County Board of Supervisors (2001) 91 Cal.App.4th 342, 364.) In this case, fair-share mitigation means full mitigation of the Project’s GHG emissions.

The City Must Prepare an EIR to Comply with CEQA
Because the above discussion provides a fair argument that the Project may have significant GHG impacts, the City must prepare an EIR. Inconsistency with applicable plans for the reduction of GHG emissions provides substantial evidence in the record to support a fair argument that the Project would have a significant environmental effect. Therefore, the City was mistaken in its choice to create an MND for a Project that would likely create such considerable GHG impact.

Redlands Regular Meeting of 11-19-24 408 of 1010
Comment Letter to City of City of Redlands Page 5
301 Tennessee Street Warehouse Project August 24, 2023
10211 Sunland Blvd., Shadow Hills, CA 91040 (818) 650-0030 X101 [email protected] Feasible Mitigation
There are many mitigation measures that can feasibly be adopted. In addition to adhering to green building standards which the Project has already committed to, the City could further mitigate the Project’s emissions by incorporating energy-generating features such as rooftop solar panels, or offset emissions through the sponsorship local renewable energy programs. The Project could require emergency generators to be powered by clean energy, enter into agreements with future tenants to enroll in the U.S. Environmental Protection Agency’s SmartWay program1 for trucking carries and to use electric equipment and vehicles to the extent possible—including requiring heavy-duty drayage trucks to be electric—and strictly prohibit idling on the premises. Lastly, we propose that the Project incorporate vehicle/truck charging stations, proportionate to the number of dock loading stations.

Conclusion
The City should not have prepared an MND for this project, but rather should have concluded that there was a likelihood of significant impact on GHG emissions, requiring an EIR with full analysis in accordance with CEQA guidelines to be prepared. The chosen threshold of 3,000 MTCO2e was compared with project emissions without providing substantial evidence for how it applies to a project in which the lead agency is not the SCAQMD. And the Project was not consistent with applicable plans, policies, and regulations for the reduction of GHGs. Thus, an MND was not appropriate for this case because there is a fair argument that the Project may have significant GHG impacts.

Please put Advocates for the Environment on the list of interested parties to receive updates about the progress of this potential project approval.

Sincerely,
Dean Wallraff, Attorney at Law
Executive Director, Advocates for the Environment
1 Learn About Smart Way, https://www.epa.gov/smartway/learn-about-smartway Redlands Regular Meeting of 11-19-24 409 of 1010
1 Sean Reilly
From: Planning Commission
Sent: Tuesday, September 26, 2023 10:31 AM
To: Sean Reilly
Cc: Linda McCasland
Subject: FW: 301 Tennessee Street project
From: Corey Oliver <[email protected]>
Sent: Tuesday, September 26, 2023 9:59 AM
To: Planning Commission <[email protected]>; planning <[email protected]> Subject: 301 Tennessee Street project
My name is J. Corey Oliver, president, CEO, and founder of Traveler Guitar in Redlands.

I am writing to register my strongest opposition to the proposed Prologis Real Estate project at 301 Tennessee Street.

Traveler Guitar’s back egress is on Kansas Street where we already experience high levels of semitruck trailer parking and traffic because of the distribution warehouses located on Park Avenue. We believe the proposed Prologis Real Estate project would exacerbate this problem and make matters worse for businesses in our area.

Also, the recent Redlands Christian School expansion has caused severe traffic congestion during drop off and pick up times; cars are backed up all the way past State Street to Park Avenue with the line reaching as far down as Business Center Court.

Our streets are at maximum capacity.

We request that the Commission oppose the proposal for the Prologis Real Estate project and also enact and enforce rules and restrictions for semitruck parking and/or storage in this area.

Respectfully,
J. Corey Oliver
J. Corey Oliver, Founder & President
Traveler Guitar | 440 Business Center Court | Redlands CA 92373 [email protected] | travelerguitar.com | o 909 307 2626 ext.101 You don't often get email from [email protected]. Learn why this is important Redlands Regular Meeting of 11-19-24 410 of 1010
Redlands Regular Meeting of 11-19-24 411 of 1010
From: Julia Lenhardt
To: Sean Reilly
Subject: Re: Question about warehouse project
Date: Friday, November 17, 2023 12:48:33 PM
You don't often get email from [email protected]. Learn why this is important [NOTICE: This message originated outside of City of Redlands -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] Hi Sean,
Thanks very much. For me personally, I would ask that this project not be approved. Redlands community members do not want more warehouses in Redlands. I understand that there are already manufacturing buildings in the space, but replacing them with a larger warehouse, which will absolutely increase traffic and pollution, is a bad option. We have an opportunity to turn these spaces into something better than they are, not something worse. Tennessee and Alabama Sts are already insane with traffic, and adding tens of thousands of trucks per year will make things much more difficult. Diesel engine pollution is also a huge contributor to why the Inland Empire has the worst ozone pollution in the entire country. Let's not make it worse!
Thanks very much for your time and consideration.

Best,
Julia
On Fri, Nov 17, 2023 at 10:44 AM Sean Reilly <[email protected]> wrote:

Julia,
The project is likely to go to the Planning Commission early next year. There is not a set date at this point.

You can either provide comments to me, or send them to the Planning Commission through the link below.
https://www.cityofredlands.org/webform/planning-commission-comments-form Sean Reilly
Principal Planner
City of Redlands
35 Cajon St., Ste. 20/P.O. Box 3005
Redlands Regular Meeting of 11-19-24 412 of 1010
You don't often get email from [email protected]. Learn why this is important Redlands, CA 92373
Office 909.798.7555 ext. 7344
Fax 909.792.8715
From: Julia Lenhardt <[email protected]>
Sent: Friday, November 17, 2023 10:40 AM
To: Sean Reilly <[email protected]>
Subject: Question about warehouse project
[NOTICE: This message originated outside of City of Redlands -- DO NOT CLICK on links or open attachments unless you are sure the content is safe.] Hello Mr. Reilly,
I'm Julia Lenhardt, a Redlands resident and I'm writing about the project at 301 Tennessee St to demolish manufacturing buildings and build a warehouse. Can you tell me when this is going to go to the planning commission? What is the best way for residents to comment on this project?
Thank you very much,
Julia
This message contains confidential information and is intended only for the individual(s) addressed in the message. If you are not the named addressee, you should not disseminate, distribute, or copy this e-mail. If you are not the intended recipient, you are notified that disclosing, distributing, or copying this e-mail is strictly prohibited.

Redlands Regular Meeting of 11-19-24 413 of 1010
From: Planning Commission
To: Sean Reilly
Subject: FW: Form submission from: Planning Commission Comments Form Date: Tuesday, November 28, 2023 12:23:33 PM
From: City of Redlands <[email protected]>
Sent: Monday, November 27, 2023 12:48 PM
To: Planning Commission <[email protected]> Subject: Form submission from: Planning Commission Comments Form 11/27/2023 - 12:47pm City of Redlands »

PLANNING COMMISSION COMMENTS
Planning Commission Date:

November 28, 2023
Agenda Item Number:

N/A
Speaker Name:

Julia Lenhardt
Address (Optional):

Subject on which the person wishes to speak:

Against
Briefly describe what you would like to say (Max 250 Words):

I am a Redlands resident, a mother of two young children, and a climate scientist, and I would like to formally state my fervent belief that warehouse projects should not be approved in Redlands or anywhere in the Inland Empire. These projects are stripping our city of its culture and increasing ozone and NO2 pollution in an already extremely unhealthy air quality district. They will increase traffic and greenhouse gas emissions from our city. Please do not approve the projects on California St, Tennessee St, and Kansas St.

Redlands Regular Meeting of 11-19-24 414 of 1010
Email to receive a copy of your submission:
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Redlands Regular Meeting of 11-19-24 415 of 1010
1 I:\cmo\Resolutions\8633 - DENY Appeal CRA 948.docx-ms RESOLUTION NO. 8633

A RESOLUTION OF THE CITY OF REDLANDS CITY COUNCIL DENYING AN APPEAL AND UPHOLDING THE PLANNING COMMISSION’S DECISION TO DENY CONDITIONAL USE PERMIT NO. 1182, COMMISSION REVIEW AND APPROVAL NO. 948, AND LOT MERGER NO. 6 INCLUDING THE SOCIOECONOMIC COST/BENEFIT STUDY AND MITIGATED NEGATIVE

DECLARATION PREPARED FOR THE PROJECT
WHEREAS, Prologis Inc., (“Applicant”), submitted development applications for Conditional Use Permit No. 1182, Commission Review and Approval No. 948, and Lot Merger No 6 to construct a 197,397 square-foot warehouse building with ancillary office space on a 10.9-acre site located at 301 Tennessee Street (APN:0292-192-11-0000) and 360 Kansas Street (APN: 0292-192-14-0000); and WHEREAS, the above-referenced applications filed with the City of Redlands are referred to hereinafter as the “Project” and “Project Entitlements”; and WHEREAS, on April 23, 2024, the Planning Commission held a public hearing and considered the staff report, oral report, the testimony and the written evidence submitted by staff, the applicant and by members of the public on the Project; and
WHEREAS, on April 23, 2024, after closing the public hearing and deliberating upon the proposed Project, the Planning Commission indicated an intent to deny the requested Project Entitlements and voted 6 to 0 to continue the matter to May 14, 2024, to allow staff sufficient time to prepare an appropriate Resolution with written findings for denial.

WHEREAS, on May 14, 2024, the Planning Commission continued the matter to the next regular Planning Commission meeting of May 28, 2024, to allow staff sufficient time to finalize an appropriate Resolution with written findings for denial.

WHEREAS, on May 28, 2024, the Planning Commission voted to deny the Project Entitlements; and
WHEREAS, Prologis Inc., (“Appellant”), has filed a timely application on June 10, 2024, to appeal the Planning Commission’s denial of the Project Entitlements for the proposed warehouse; and WHEREAS, notice of the City Council public hearing was mailed to the owners of record of all properties within 300 feet of the subject property, in accordance with Section 18.192.040 of the Redlands Municipal Code; and
WHEREAS, on November 19, 2024, the City Council held a duly noticed public hearing to consider the Appeal of the Planning Commission’s denial of the Project Entitlements, and considered verbal and written testimony of City staff, the appellant, and public comments from members of the public.

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

Redlands Regular Meeting of 11-19-24 416 of 1010
2 I:\cmo\Resolutions\8633 - DENY Appeal CRA 948.docx-ms Section 1. The City Council hereby denies the Appeal, upholds the decision of the Planning Commission denying Conditional Use Permit No. 1182, Commission Review and Approval No. 948 and Lot Merger No. 06 to construct a to construct a 197,397 square-foot warehouse building with ancillary office space on a 10.9-acre site located at 301 Tennessee Street (APN:0292-192-11-0000) and 360 Kansas Street (APN: 0292-192-14-0000) and adopts the findings for denial contained in Planning Commission Resolution No. 1632.

ADOPTED, SIGNED AND APPROVED this 19th day of November 2024. __________________________
Eddie Tejeda, Mayor
ATTEST:
_________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 11-19-24 417 of 1010
3 I:\cmo\Resolutions\8633 - DENY Appeal CRA 948.docx-ms I, Jeanne Donaldson, City Clerk of the City of Redlands, do hereby certify that the foregoing Resolution was duly adopted by the City Council at a regular meeting thereof held on the 19 th day of
November 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:
_________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 11-19-24 418 of 1010
City Council Meeting L. 1.

DATE: 11/19/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of the Second Amendment to the City Attorney Employment Agreement between the City of Redlands and Yvette M. Abich Garcia (Assistant City Manager McConnell)
MOTION(S):

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

I move to approve the Second Amendment to the City Attorney Employment Agreement between the City of Redlands and Yvette M. Abich Garcia.

RECOMMENDATION:

To approve the Second Amendment to the Employment Agreement between the City of Redlands and Yvette M. Abich Garcia.

DISCUSSION:

On April 19, 2022, the City of Redlands entered into a City Attorney Employment Agreement with Yvette M. Abich Garcia for a term of six years, ending May 22, 2028. It is the desire of the City Council to amend the employment agreement prior to its expiration. It is proposed that the City Council approve the Second Amendment to the City Attorney Employment Agreement, which proposes the following terms:

Base salary: Beginning with the pay period to be paid on January 15, 2025, annual base salary shall increase to Three Hundred Thousand Dollars ($300,000).

1. 2. Other terms as set forth in the current contract remain unchanged.

This report complies with Government Code Section 54953(c)(3).

Redlands Regular Meeting of 11-19-24 419 of 1010
ALTERNATIVES:

The City Council may elect not to approve the Agreement and provide alternative direction to staff.

STRATEGIC PLAN:

N/A.

SUBMITTED BY:

Janice McConnell, Assistant City Manager
REVIEWED BY:

Charles M. Duggan, Jr.

Yvette M. Abich Garcia, City Attorney
Danielle Garcia, Management Services/Finance Director
Fiscal Impact
Fiscal Year: 2025
Revenue Generating: No
Appropriation Required Y/N: No
Amount: 14,053
Discussion:

The Second Amendment to the City Attorney Employment Agreement represents an increase in base pay of $14,053.20. Other benefits tied to base salary will be adjusted accordingly, and their impacts are minimal.

Attachments
Second Amendment to City Attorney Employment Agreement
Redlands Regular Meeting of 11-19-24 420 of 1010
1 SECOND AMENDMENT TO CITY ATTORNEY EMPLOYMENT AGREEMENT This second amendment (“Second Amendment”) to the City Attorney Employment Agreement dated April 19, 2022 (“Agreement”), by and between the City of Redlands, a municipal corporation (“City”), and Yvette M. Abich Garcia (“Employee”), is made and entered into this 19th day of November, 2024.

RECITALS
WHEREAS, with this Second Amendment, it is the desire of the City and Employee to amend the terms and conditions of Employee’s employment as City Attorney.

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

AGREEMENT
Section 1. Section 2.1 of the Agreement is amended to read as follows:

2.1 Current Base Salary. Beginning with the pay period to be paid on January 15, 2025, Employee shall receive Three Hundred Thousand Dollars ($ 300,000.00) as annual base salary (“Salary”) for the City Attorney position, which shall be paid on a pro-rated basis bi-weekly at the same time as other employees of the City are paid. Employee’s Salary shall be subject to normal and proper withholdings as determined by state and federal law, and as determined appropriate by the City Council, and shall be subject to payroll taxes, workers’ compensation, and other payroll-related liability costs.
a. Effective the first payroll period following July 1, 2025, Employee will receive a two percent (2%) increase to her Salary over the prior year.

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

IN WITNESS WHEREOF, the parties have executed this Second Amendment, to be effective as of November 19, 2024.
[Signatures on Next Page]
Redlands Regular Meeting of 11-19-24 421 of 1010
2 CITY OF REDLANDS EMPLOYEE
By: ___________________________ By: ________________________________ Eddie Tejeda, Mayor Yvette M. Abich Garcia
ATTEST:
__________________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 11-19-24 422 of 1010
City Council Meeting L. 2.

DATE: 11/19/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of the Third Amendment to the Agreement with About Food, Inc., doing business as Redlands Ranch Market, increasing the total compensation of the Agreement by $1,200,000 to a total amount not to exceed $4,904,400 for the provision of monthly grocery gift cards to facilitate Round 2 of the Resident Grocery Gift Card program (Assistant City Manager McConnell) MOTION(S):

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

I move that the City Council approve the Third Amendment to the Agreement with About Food, Inc., doing business as Redlands Ranch Market, to increase the total compensation by $1,200,000 to a total amount not to exceed $4,904,400 for the provision of monthly grocery gift cards.

1. RECOMMENDATION:

Staff recommends that the City Council approve the Third Amendment to the Agreement with About Food, Inc., doing business as Redlands Ranch Market, to increase the total compensation by $1,200,000 to a total amount not to exceed $4,904,400 for the provision of monthly grocery gift cards.

DISCUSSION:

On March 11, 2021, The American Rescue Plan Act was signed into law, and established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Funds, which together make up the Coronavirus State and Local Fiscal Recovery Funds (SLFRF). This program provides support to state, territorial, local, and tribal governments responding to the economic and public health impacts of COVID-19.

Redlands Regular Meeting of 11-19-24 423 of 1010
On March 15, 2022, the City Council approved the Resident Grocery Gift Card Program funded by the State and Local Fiscal Recovery Funds (SLFRF) through the American Rescue Plan Act (ARPA). The program provided grocery assistance to a maximum of 1,687 eligible households in the form of a monthly $100 grocery gift card for a period of 12 months.

On May 17, 2022, the City entered into an agreement with About Food, Inc. doing business as Redlands Ranch Market, for the provision of monthly gift cards through October 2023. In October 2023 City Council approved the First Amendment to extend the term of the agreement for the provision of grocery gift cards through March 31, 2024.

On November 2023 the City Council approved the reallocation of $1,625,000 from the Small Business Gift Card Match Program and $55,000 from the Nonprofits Assistance Program to fund a Round 2 of the Resident Grocery Gift Card Program that will provide assistance to 1,400 eligible households.

On March 19, 2024, the City Council approved the Second Amendment, increasing the total compensation by $1,680,000, bringing the agreement's total to $3,704,400, and extending the term through December 31, 2026, to continue providing monthly grocery gift cards for Round 2 of the Resident Grocery Gift Card Program.

Building on the program's continued success and the significant benefits to qualifying residents, on October 15, 2024, the City Council approved the reallocation of $1,200,000 from the Pandemic Response, Public Health Response category to the Resident Grocery Gift Card Program. This funding will support an additional 1,000 eligible households, providing each a $100 monthly grocery gift card for 12 months, increasing the total number of Round 2 participants from 1,400 to 2,400.

Staff is now requesting the City Council approve the Third Amendment to the Agreement with About Food, Inc. doing business as Redlands Ranch Market, to increase the total compensation by $1,200,000, facilitating the expanded Round 2 of the Resident Grocery Gift Card Program. This will bring the agreement's total compensation to an amount not to exceed $4,904,400.

Approval of the Third Amendment will further strengthen the City's commitment to providing essential assistance to residents in need and maintaining its partnership with About Food, Inc. doing business as Redlands Ranch Market.

ALTERNATIVES:

The City Council may elect not to approve the Third Amendment to the agreement. However, in doing so, staff would be unable to implement the additional 1,000 eligible applicants into the Round 2 of the Resident Grocery Gift Card program.

Redlands Regular Meeting of 11-19-24 424 of 1010
STRATEGIC PLAN:

N/A
SUBMITTED BY:

Janice McConnell, Assistant City Manager
RECOMMENDED BY:

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

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

Selina Sanchez, Grants Coordinator
Fiscal Impact
Fiscal Year: 2022-2026
Amount: 1,200,000
Budgeted Y/N: Y
Account No.: 200120
Discussion:

There is no General Fund Impact. This program is funded by the State and Local Fiscal Recovery Funds (SLFRF) through the American Rescue Plan Act (ARPA). In October 2024 , the City Council approved the reallocation of $1,200,000 from the Pandemic Response, Public Health Response category to the approved Resident Grocery Gift Card Program to fund an additional 1,000 eligible households with a $100 per month grocery gift card for a period of 12 months.

Attachments
3rd Amendment - Redlands Ranch Market
2nd Amendment - Redlands Ranch Market
1st Amendment - Redlands Ranch Market
Redlands Ranch Market - ARPA Resident Food Assistant Program Agreement Redlands Regular Meeting of 11-19-24 425 of 1010
1 I:\cmo\Agreements\Third Amendment About Food, Inc. dba Redlands Ranch Market FY24-0051.docx-ms

THIRD AMENDMENT TO AGREEMENT TO PERFORM NON-PROFESSIONAL

FOR EQUIPMENT AND SUPPLIES
This third amendment (“Third Amendment”) to the agreement for the provision of ARPA Resident Food Assistance Program - Grocery Gift Cards (“Agreement”), dated May 17, 2022, by and between the City of Redlands, a municipal corporation (“City”), and About Food, Inc., dba Redlands Ranch Market, a California corporation (“Contractor”) is made and entered into this 19th day of November, 2024.

RECITALS
WHEREAS, it is the desire of the City and Contractor to amend their existing Agreement, specifically to increase the total compensation to an amount not to exceed $4,904,400 for the provision of Round 2 ARPA Resident Food Assistance Program - Grocery Gift Cards; NOW, THEREFORE, for good and valuable consideration in the receipt of which is hereby acknowledged City and Contractor agree as follows:

AGREEMENT
Section 1. Article 1 of the Agreement, entitled "Engagement of Contractor," is hereby amended to read as follows:
“1.1 City hereby engages Contractor to provide up to 1,687 gift cards on a monthly basis to City as of the Effective Date of this Agreement through March 2024. Further, City hereby engages Contractor to provide up to 2,400 gift cards on a monthly basis beginning December 1, 2024, through December 2026 (the “Services”).” Section 2. Article 5 of the Agreement, entitled “Payments to Contractor,” is hereby amended to read as follows:
“Total compensation for Contractor’s performance of the Services shall not exceed the amount of Four Million Nine Hundred Four Thousand Four Hundred Dollars ($4,904,400). City shall pay Contractor on a time and materials basis up to the note to exceed amount in accordance with Exhibit “C,” titled “Payment Schedule,” which is attached hereto and incorporated herein by this reference.”
Section 3. Exhibit “A” of the Agreement, entitled “Scope of Services,” is hereby amended as shown in Attachment “1,” attached to this Third Amendment.

Section 4. Exhibit “C” of the Agreement, entitled “Payment Schedule,” is hereby amended as shown in Attachment “2,” attached to this Third Amendment.

Section 5. All other provisions of the Agreement, Second Amendment, and First Amendment shall remain unchanged by this Third Amendment and in effect.

Redlands Regular Meeting of 11-19-24 426 of 1010
2 I:\cmo\Agreements\Third Amendment About Food, Inc. dba Redlands Ranch Market FY24-0051.docx-ms IN WITNESS WHEREOF, the parties have executed this Second Amendment, to be effective as of November 19, 2024.

CITY OF REDLANDS CONTRACTOR
________________________________ By: ________________________________ Eddie Tejeda, Mayor Dave Ireland, General Manager
Redlands Ranch Market
ATTEST:
__________________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 11-19-24 427 of 1010
3 I:\cmo\Agreements\Third Amendment About Food, Inc. dba Redlands Ranch Market FY24-0051.docx-ms Attachment 1
EXHIBIT “A”

SCOPE OF SERVICES
A. Purpose:

According to a Resident COVID-19 Impact Survey conducted by the City, Redlands’ residents listed food assistance as one of the top 3 areas of relief that would be of greatest benefit in aiding their recovery from the economic effects of COVID-19. The Grocery Gift Card Program would provide relief to impacted and disproportionately impacted households by issuing a monthly grocery gift card exclusively for the purchase of food at Contractor’s grocery retail store for a period of 12 months.

During the term of this Agreement for the ARPA Program - Grocery Gift Card Purchase entered into between Contractor and the City, Contractor shall provide up to 1,687 gift cards on a monthly basis to the City through March 2024. The gift cards are for exclusive use at Contractor’s grocery retail store for purchase of food items only.

During the term of this Agreement for the ARPA Program – Round 2 Grocery Gift Card Purchase entered into between Contractor and the City, Contractor shall provide up to 2,400 gift cards on a monthly basis to the City through December 2026. The gift cards are for exclusive use at Contractor’s grocery retail store for purchase of food items only.

B. Description of services/deliverables:

The City will accept applications from eligible households and distribute the gift cards beginning in June 2022 and will continue to accept applications until March 1, 2023. The program will conclude with the distribution of the final monthly gift card or March 2024, whichever is sooner.

For the ARPA Program – Round 2 Grocery Gift Card program, the City will accept applications from eligible households and distribute the gift cards beginning in April 2024 and will continue to accept applications until December 30, 2025. The program will conclude with the distribution of the final monthly gift card or December 2026, whichever is sooner.
• Because the City will be accepting applications on a rolling basis from FebruaryDecember 30, 2025, the number of needed gift cards will vary each month but will not exceed 2,400 in any given month. The Contractor must designate a window timeframe to allow City staff to communicate the number of gift cards needed for the following month. The Contractor MUST register on SAM.gov and provide UEI, DUNS or TIN # prior to commencement of services and before any payment to be made.

Redlands Regular Meeting of 11-19-24 428 of 1010
4 I:\cmo\Agreements\Third Amendment About Food, Inc. dba Redlands Ranch Market FY24-0051.docx-ms The monthly services/deliverables include:
• Provide the number of requested physical gift cards to the City each month • Gift cards must be valued at $100 each
• Ensure that participant purchases made with gift cards exclude all purchases of tobacco and alcohol products
• Ensure that gift cards are used to purchase food only by participants Redlands Regular Meeting of 11-19-24 429 of 1010
5 I:\cmo\Agreements\Third Amendment About Food, Inc. dba Redlands Ranch Market FY24-0051.docx-ms Attachment 2
EXHIBIT "C"

PAYMENT SCHEDULE
Proposed Scope of Work Product or Outcome
The Scope of Work for this effort
encompasses the description of
services/deliverables found in Exhibit A,
Sections A-B. All Scope of Work activities
will be completed by the end of the contract
term.
• Must register on SAM.gov and
provide UEI, DUNS or TIN # prior to
commencement of services and before
any payment to be made
• Provide the determined number of gift
cards requested by the City each
month – not to exceed a maximum of
1,687 gift cards in any given month
• Ensure that participant purchases
made with gift cards exclude all
purchases of tobacco and alcohol
products
• Ensure that gift cards are used to
purchase food only by participants
May 2022 – March 2024
Monthly Invoice Not To Exceed $168,700.00
April 2024 – December 2026
Monthly Invoice Not To Exceed $240,000.00
TOTAL NOT TO EXCEED $4,904,400
Redlands Regular Meeting of 11-19-24 430 of 1010

SECOND AMENDMENT TO AGREEMENT TO PERFORM NON- PROFESSIONAL

FOR EQUIPMENT AND SUPPLIES
This second amendment (" Second Amendment") to the agreement for the provision of ARPA Resident Food Assistance Program - Grocery Gift Cards (" Agreement"), dated May 17, 2022, by and between the City of Redlands, a municipal corporation (" City"), and About Food Inc., dba Redlands Ranch Market, a California corporation (" Contractor") is made and entered into this 19t11 day of March, 2024.

RECITALS
WHEREAS, it is the desire of the City and Contractor to amend their existing Agreement, specifically to increase the total compensation to an amount not to exceed $ 3, 704,400 and extend the term of the agreement to December 31, 2026, for the provision of Round 2 ARPA Resident Food Assistance Program - Grocery Gift Cards;
NOW, THEREFORE, for good and valuable consideration in the receipt of which is hereby acknowledged City and Contractor agree as follows:

AGREEMENT
Section 1. Article 1 of the Agreement, entitled "Engagement of Contractor," is hereby amended to read as follows:

1. 1 City hereby engages Contractor to provide up to 1, 687 gift cards on a monthly basis to City as of the Effective Date of this Agreement through March 2024. Further, City hereby engages Contractor to provide up to 1, 400 gift cards on a monthly basis beginning April 1, 2024, through December 2026 ( the " Services")."
Section 3. Article 4 of the Agreement, entitled " Performance of Services," is hereby amended to read as follows:

4. 1 The Services shall commence immediately after the Effective Date of this Agreement. Contractor shall perform and complete the Services in a prompt and diligent manner in accordance with the schedule set forth in Exhibit "B," titled "Project Schedule," which is attached hereto and incorporated herein by this reference.

The term of this Agreement shall commence on May 17, 2022, and expire on December 31, 2026, unless terminated earlier as provided herein or otherwise modified by the Parties." Section 4. Article 5 of the Agreement, entitled " Payments to Contractor," is hereby amended to read as follows:

Total compensation for Contractor' s performance of the Services shall not exceed the amount of Three Million Seven Hundred Four Thousand Four Hundred dollars ($ 3, 704, 400).

City shall pay Contractor on a time and materials basis up to the note to exceed amount in 1 I:\ cmo\ Agreements\ Second Amendment Redlands Ranch Market ( Grocery Gift Card) FY23- 0044. docx- msv2 Redlands Regular Meeting of 11-19-24 431 of 1010
accordance with Exhibit " C," titled " Payment Schedule," which is attached hereto and incorporated herein by this reference."
Section 5. Exhibit " A" of the Agreement, entitled " Scope of Services," is hereby amended as shown in Attachment " 1," attached to this Second Amendment.

Section 6. Exhibit " B" of the Agreement, entitled " Project Schedule," is hereby amended as shown in Attachment " 2," attached to this Second Amendment.

Section 7. Exhibit " C" of the Agreement, entitled " Payment Schedule," is hereby amended as shown in Attachment " 3," attached to this Second Amendment.

Section 8. All other provisions ofthe Agreement and First Amendment shall remain unchanged by this Second Amendment and in effect.

IN WITNESS WHEREOF, the parties have executed this Second Amendment, to be effective as of March 19, 2024.

CITY 0
ddie Tejeda, Mayor
ATTEST:
e Donaldson, City Clerk

CONTRACTOR
By: ` C
Dave Ireland, General Manage
Redlands Ranch Market
2 I:\ cmo\ Agreements\ Second Amendment Redlands Ranch Market ( Grocery Gift Card) FY23- 0044. docx- msv2 Redlands Regular Meeting of 11-19-24 432 of 1010
Attachment 1

EXHIBIT A

SCOPE OF SERVICES
A. Purpose:

According to a Resident COVID- 19 Impact Survey conducted by the City, Redlands' residents listed food assistance as one of the top 3 areas of relief that would be of greatest benefit in aiding their recovery from the economic effects of COVID- 19. The Grocery Gift Card Program would provide relief to impacted and disproportionately impacted households by issuing a monthly grocery gift card exclusively for the purchase of food at Contractor' s grocery retail store for a period of 12 months.

During the term ofthis Agreement for the ARPA Program - Grocery Gift Card Purchase entered into between Contractor and the City, Contractor shall provide up to 1, 687 gift cards on a monthly basis to the City through March 2024. The gift cards are for exclusive use at Contractor' s grocery retail store for purchase of food items only.

During the term of this Agreement for the ARPA Program — Round 2 Grocery Gift Card Purchase entered into between Contractor and the City, Contractor shall provide up to 1, 400 gift cards on a monthly basis to the City through December 2026. The gift cards are for exclusive use at Contractor' s grocery retail store for purchase of food items only.

B. Description of services/ deliverables:

For the ARPA Program — Round 2 Grocery Gift Card program, the City will accept applications from eligible households and distribute the gift cards beginning in April 2024 and will continue to accept applications until December 30, 2025. The program will conclude with the distribution of the final monthly gift card or December 2026, whichever is sooner.

Because the City will be accepting applications on a rolling basis from February - December 30, 2025, the number of needed gift cards will vary each month but will not exceed 1, 400 in any given month, The Contractor must designate a window timeframe to allow City staff to communicate the number of gift cards needed for the following month. The Contractor MUST register on SAM.gov and provide UEI, 3 I:\ cmo\ Agreements\ Second Amendment Redlands Ranch Market ( Grocery Gift Card) FY23- 0044. docx- msv2 Redlands Regular Meeting of 11-19-24 433 of 1010
DUNS or TIN # prior to commencement of services and before any payment to be made.

The monthly services/ deliverables include:

Provide the number of requested physical gift cards to the City each month Gift cards must be valued at $ 100 each
Ensure that participant purchases made with gift cards exclude all purchases of tobacco and alcohol products
Ensure that gift cards are used to purchase food only by participants 4 I:\ cmo\ Agreements\ Second Amendment Redlands Ranch Market ( Grocery Gift Card) FY23 - 0044. docx- msv2 Redlands Regular Meeting of 11-19-24 434 of 1010
Attachment 2

EXHIBIT B

PROJECT SCHEDULE
Participant Enrollment Period
May 2022 -
December 2025
June 2022-
December 2025
December 31,
2026 or sooner
Eligible households receive monthly gift cards from
City program staff- provided to staff by contractor
Program concludes when the last enrollee receives
their final ( 12th) gift card
5 I:\cmo\ Agreements\ Second Amendment Redlands Ranch Market ( Grocery Gift Card) FY23- 0044. docx- msv2 Redlands Regular Meeting of 11-19-24 435 of 1010
Attachment 3
EXHIBIT " C"

Must register on SAM. gov and
provide UEI, DUNS or TIN # prior to
commencement of services and before
any payment to be made
Provide the determined number of gift
cards requested by the City each
month — not to exceed a maximum of
1, 687 gift cards in any given month
Ensure that participant purchases
made with gift cards exclude all
purchases of tobacco and alcohol
products
Ensure that gift cards are used to
purchase food only by participants
X' May 2022 March 2024_
Monthly Invoicc Not To Exceed,`
x'
168, 700
ri 9
4 ettru
IVIothlY` Invoice NotT Excceecl t$ 1 0 000
TOTAL NOT TO EXCEED 3, 704, 400. 00
6 I:\ cmo\Agreements\ Second Amendment Redlands Ranch Market (Grocery Gift Card) FY23- 0044.docx-msv2 Redlands Regular Meeting of 11-19-24 436 of 1010

FIRST AMENDMENT TO AGREEMENT TO PERFORM NON-PROFESSIONAL

FOR EQUIPMENT AND SUPPLIES
This first amendment (" First Amendment") to the agreement for the provision of ARPA Resident Food Assistance Program - Grocery Gift Cards (" Agreement"), dated May 17, 2022, by and between the City of Redlands, a municipal corporation (" City"), and About Food Inc., dba Redlands Ranch Market, a California S Corporation (" Contractor") is made and entered into this 3rd day of October, 2023.

RECITALS
WHEREAS, it is the desire of the City and Contractor to amend their existing Agreement, specifically to extend the term of the agreement to March 31, 2024, and update the City' s representative;
NOW, THEREFORE, for good and valuable consideration in the receipt ofwhich is hereby acknowledged City and Contractor agree as follows:

AGREEMENT
Section 1. Article 1 ofthe Agreement, entitled "Engagement of Contractor," is hereby amended to read as follows:

1. 1 City hereby engages Contractor to provide up to 1, 687 gift cards on a monthly basis to City commencing as of the Effective Date of this Agreement through March 2024 (the Services")."
Section 2. Article 3 ofthe Agreement, entitled " Responsibilities of City," is hereby amended to read as follows:

3. 2 City designates Selina Sanchez, Grants Coordinator, as City' s representative with respect to performance ofthe Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City' s policies and decisions with respect to performance of the Services."
Section 3. Article 4 ofthe Agreement, entitled " Performance of Services," is hereby amended to read as follows:

The term of this Agreement shall commence on May 17, 2022 and expire on March 31, 2024, unless terminated earlier as provided herein or otherwise modified by the Parties." 1 Redlands
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Section 4. Exhibit "A" of the Agreement, entitled " Scope of Services," is hereby amended as shown in Exhibit " 1," attached to this First Amendment.

Section 5. Exhibit "B" ofthe Agreement, entitled " Project Schedule," is hereby amended as shown in Exhibit "2," attached to this First Amendment.

Section 6. All other provisions of the Agreement shall remain unchanged by this First Amendment and in effect.

IN WITNESS WHEREOF, the parties have executed this First Amendment, to be effective as ofOctober 3, 2023.

CITY 0
ddie Tejeda, Mayor
ATTEST:
nne Donaldson, City Clerk
2 CONTRACTOR
By:

Dave Ireland, General Manager
Redlands Ranch Market
Redlands
I:\ cmo\Agreements\ Ranch
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EXHIBIT 1

SCOPE OF SERVICES
A. Purpose:

According to a Resident COVID- 19 Impact Survey conducted by the City, Redlands' residents listed food assistance as one of the top 3 areas ofrelief that would be of greatest benefit in aiding their recovery from the economic effects of COVID- 19. The Grocery Gift Card Program would provide relief to impacted and disproportionately impacted households by issuing a monthly grocery gift card exclusively for the purchase of food at Contractor' s grocery retail store for a period of 12 months.

During the term ofthis Agreement for the ARPA Program - Grocery Gift Card Purchase entered into between Contractor and the City, Contractor shall provide up to 1, 687 gift cards on a monthly basis to the City through March 2024. The gift cards are for exclusive use at Contractor' s grocery retail store for purchase of food items only.

B. Description of services/ deliverables:

The City will accept applications from eligible households and distribute the gift cards beginning in June 2022 and will continue to accept applications until March 1st, 2023.

The program will conclude with the distribution of the final monthly gift card or March 2024, whichever is sooner.

Because the City will be accepting applications on a rolling basis from May -March 1, 2023, the number of needed gift cards will vary each month but will not exceed 1, 687 in any given month. The Contractor must designate a window timeframe to allow City staff to communicate the number of gift cards needed for the following month. The Contractor MUST register on SAM.gov and provide UEI, DUNS or TIN # prior to commencement of services and before any payment to be made.

The monthly services/deliverables include:

Provide the number ofrequested physical gift cards to the City each month Gift cards must be valued at $ 100 each
Ensure that participant purchases made with gift cards exclude all purchases of tobacco and alcohol products
Ensure that gift cards are used to purchase food only by participants 3 Redlands
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May - March
2023
June 2022-
March 2024
March 31, 2024
or sooner
EXHIBIT 2

PROJECT SCHEDULE
Participant Enrollment Period
Eligible households receive monthly gift cards from
City program staff- provided to staff by contractor
Program concludes when the last enrollee receives
their final ( 12th) gift card
4 Redlands
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L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm

AGREEMENT TO PERFORM NON-PROFESSIONAL SERVICES

FOR EQUIPMENT AND SUPPLIES
This agreement for the provision of ARPA Resident Food Assistance Program - Grocery Gift Cards (“Agreement”) is made and entered in this 17th day of May, 2022 (“Effective Date”), by and between the City of Redlands, a municipal corporation (“City”) and About Food Inc., dba Redlands Ranch Market, a California S Corporation (“Contractor”). City and Contractor are sometimes individually referred to herein as a “Party” and, together, as the “Parties.” In consideration of the mutual promises contained herein, City and Contractor agree as follows:

ARTICLE 1 – ENGAGEMENT OF CONTRACTOR

1.1 City hereby engages Contractor to provide up to 1,687 gift cards on a monthly basis to City commencing as of the Effective Date of this Agreement through October 2023 (the “Services”).

1.2 The Services shall be performed by Contractor in a professional manner, and Contractor represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional Contractors in the industry providing like and similar types of Services.

ARTICLE 2 – SERVICES OF CONTRACTOR

2.1 The Services that Contractor shall perform are more particularly described in Exhibit “A,” titled “Scope of Services,” which is attached hereto and incorporated herein by this reference.

2.2 Contractor shall comply with applicable federal, state and local laws and regulations in the performance of this agreement including, but not limited to, any applicable State prevailing wage laws.

ARTICLE 3 – RESPONSIBILITIES OF CITY

3.1 City shall make available to Contractor information in its possession that may reasonably assist Contractor in performing the Services.

3.2 City designates Maira Durazo, Grants Coordinator, as City’s representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to performance of the Services.

ARTICLE 4 – PERFORMANCE OF SERVICES

4.1 The Services shall commence immediately after the Effective Date of this Agreement.

Contractor shall perform and complete the Services in a prompt and diligent manner in accordance with the schedule set forth in Exhibit “B,” titled “Project Schedule,” which is attached hereto and incorporated herein by this reference.

Redlands Regular Meeting of 11-19-24 441 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm The term of this Agreement shall commence on May 17th 2022 and expire on October 31st 2023 unless terminated earlier as provided herein or otherwise modified by the Parties.

ARTICLE 5 – PAYMENTS TO CONTRACTOR

5.1 Total compensation for Contractor’s performance of the Services shall not exceed the amount of Two Million Twenty-Four Thousand Four Hundred Dollars ($2,024,400). City shall pay Contractor on a time and materials basis up to the not to exceed amount in accordance with Exhibit “C,” titled “Payment Schedule,” which is attached hereto and incorporated herein by this reference.

5.2 Contractor shall submit monthly the completed attached “Invoice Form” template to City describing the Services performed during the preceding month in accordance with Exhibit “D” titled “Invoice Form.” Contractor’s invoices shall include a brief description of the Services performed, the dates the Services were performed, and the number of gift cards provided to City. City shall pay Contractor no later than thirty (30) days after receipt and approval by City of Contractor’s invoice.

5.3 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date 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 mail 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 address set forth below, or such other address as a Party may provide notice in accordance with this section:

CITY CONTRACTOR
City Clerk David Ireland, General Manager
City of Redlands About Food Inc. dba Redlands Ranch Market 35 Cajon Street 800 E. Lugonia Ave.

P.O. Box 3005 (mailing) Redlands, CA, 92374
Redlands, CA 92373 [email protected]
[email protected] (951) 741-1884
(909) 798-7531
ARTICLE 6 – INSURANCE AND INDEMNIFICATION

6.1 The following insurance coverage required by this Agreement shall be maintained by Contractor for the duration of its performance of the Services. Contractor shall not perform any Services unless and until the required insurance listed below is obtained by Contractor.

Contractor shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance policies shall include a Redlands Regular Meeting of 11-19-24 442 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City.

A. Workers’ Compensation and Employer’s Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Contractor is self-insured or exempt from the workers’ compensation laws of the State of California. Contractor shall execute and provide City with Exhibit “E,” titled “Workers’ Compensation Insurance Certification,” which is attached hereto and incorporated herein by this reference, prior to performance of the Services.

B. Commercial General Liability (CGL) insurance with carriers acceptable to City:
a. Limits of insurance not less than:

1. $1,000,000 Each Occurrence Limit

2. $1,000,000 Personal and Advertising Injury Limit

3. $2,000,000 Annual Aggregate Limit

4. $2,000,000 Products‐Completed Operations Limit
b. City shall be included as an Additional Insured. Contractor shall also cause its policy to be amended to provide that the coverage afforded to the additional insured is primary to and noncontributing with any other insurance, self‐insurance or deductible amount maintained by or provided to the additional insured. Attached to each certificate of insurance shall be a copy of the additional insured endorsement that is part of the Contractor’s CGL, as well as a copy of the policy’s endorsement providing coverage to the additional insured on a primary and non‐ contributing basis.
c. CGL coverage shall be written on ISO Occurrence form CG00011093 or a substitute form providing equivalent coverage and shall cover liability arising from premises, operations, independent contractors, products‐ completed operations, and personal and advertising injury. Use of any CGL form covering defense costs within the limits of insurance requires the prior written consent of City.

C. On the certificate of insurance, the Certificate Holder section should read as follows:

City of Redlands
Attn: Risk Management
P. O. Box 3005
Redlands, CA 92373

6.2 Contractor shall defend, indemnify, and hold harmless City and its elected and appointed officials, employees, and agents from and against any and all claims, losses and liability, including attorneys’ fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Contractor, or its officers, employees and agents in performing the Services.

Redlands Regular Meeting of 11-19-24 443 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm ARTICLE 7 – CONFLICTS OF INTEREST

7.1 Contractor covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by the performance of Contractor’s Services. Contractor further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement.

7.2 Contractor agrees it is not a designated employee within the meaning of the Political Reform Act because Contractor:

A. Does not make a governmental decision whether to:

(i) Approve a rate, rule or regulation, or adopt or enforce a City law; (ii) Issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) Authorize City to enter into, modify or renew a contract; (iv) Grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) Grant City approval to a plan, design, report, study or similar item; (vi) Adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof.

B. Does not serve in a staff capacity with City and, in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City’s Conflict of Interest Code under Government Code section 87302.

7.3 In the event City determines that Contractor must disclose its financial interests, Contractor shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk’s office pursuant to the written instructions provided by the City Clerk.

ARTICLE 8 – GENERAL CONSIDERATIONS

8.1 In the event any action is commenced to enforce or interpret any of 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 attorneys’ fees, including fees for the use of inhouse counsel by a Party.

8.2 Contractor shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, results in City’s immediate termination of this Agreement.

Redlands Regular Meeting of 11-19-24 444 of 1010
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8.3 Contractor is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor any of its agents shall have control over the conduct of Contractor or Contractor’s employees, except as herein set forth. Contractor shall supply all necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by Contractor are for its account only, and in no event shall Contractor or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. Contractor shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Contractor have any authority, express or implied, to bind City to any obligation.

8.4 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, any amendment to this Agreement shall be in writing, approved by City and signed by City and Contractor.

8.5 This Agreement shall be governed by and construed in accordance with the Department of the Treasury’s Interim Final Rule (31 CFR Part 35); 2 CFR Part 200 of Federal Grant Regulations; and the laws of the State of California, without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California.

8.6 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement.

ARTICLE 9 – UNIFORM GUIDANCE PROVISIONS
By executing this Agreement, the Contractor hereby certifies that it will adhere to and comply with the following provisions as may be applicable to a Non-Federal Entity Contractor per Appendix II to Title 2 CFR Part 200 of the Federal Uniform Guidance:

9.1 Remedies for Breach – Any waiver by the City of any breach of any one or more of the terms of this Agreement shall not be construed to be a waiver of any subsequent or other breach of the same or of any other term of this Agreement. Failure on the part of City to require exact, full and complete compliance with any terms of this Agreement shall not be construed as in any manner changing the terms or preventing City from enforcement of the terms of the Agreement.

9.2 Termination for Cause - This Agreement may be terminated by City, in its sole discretion, by providing not less than ten (10) days prior written notice to Contractor of City’s intent to terminate. If this Agreement is terminated by City, an adjustment to Redlands Regular Meeting of 11-19-24 445 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm Contractor’s compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due Contractor at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Contractor. Upon receipt of a termination notice, Contractor shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, drawings, specifications, reports, summaries and such other information and materials as may have been accumulated by Contractor in performing the Services. Contractor shall be compensated on a pro-rata basis for Services completed up to the date of termination.

9.3 Equal Employment Opportunity – No construction is to be funded with moneys under this program; as such, the funds used for this program are not subject to Equal Employment Opportunity.

9.4 Davis-Bacon, as amended (40 U.S.C. 3141-3148) – No construction is to be funded with moneys under this Program; as such, the funds used for this program are not subject to Davis Bacon.

9.5 Contract Work Hours/Safety Standards Act (40 U.S.C. 3701-3708)- Where applicable, all contracts awarded by the City in excess of $100,000 that involve the employment of mechanics or laborers shall include a provision for compliance with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor Regulations (29 CFR Part 5). Under Section 40 U.S.C. 3702, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard workweek of 40 hours. Work in excess of the standard workweek is permissible provided that the worker is compensated at a rate of not less than 1 1/2 times the basic rate of pay for all hours worked in excess of 40 hours in the workweek. The requirements of 40 U.S.C. 3704 are applicable to construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous.

These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence.

9.6 Rights to Inventions – Contracts or agreements for the performance of experimental, developmental, or research work shall provide for the rights of the Federal Government and the recipient in any resulting invention in accordance with 37 CFR Part 401.2, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the U.S. Department of the Treasury.

9.7 Clean Air Act (42 U.S.C. 7401-7671q) and Water Pollution Act (33 U.S.C. 1251-1387) – Contracts and subgrants of amounts in excess of $100,000 shall contain a provision that requires the recipient to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401 – 7671q) and the Redlands Regular Meeting of 11-19-24 446 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm Federal Water Pollution Control Act as amended (33 U.S.C.A. Section 1251 - 1387).

Violations shall be reported to the U.S. Department of the Treasury and the Regional Office of the Environmental Protection Agency (EPA).

9.8 Energy Efficiency – Mandatory standards and policies relating to energy efficiency which are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94 - 163, Dec. 22, 1975; 42 U.S.C.A.

Section 6201, et. seq., 89 Stat.871).

9.9 Debarment and Suspension (Executive Orders (E.O.) 12549 and 12689) – No contract shall be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with OMB guidelines at 2 CFR 180 that implement E.O.s 12549 and 12689, “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than E.O. 12549.

9.10 Anti-Lobbying Certification (31 U.S.C.A. 1352) – The language of the certification set forth in this paragraph 9.10 shall be required in all contracts or subcontracts entered into in connection with this program activity and all Contractors shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C.A. Section 1352. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and no more than $100,000 for such failure. “The undersigned certifies, to the best of his or her knowledge or belief, that: No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant loan or cooperative agreement, he/she will complete and submit Standard Form – LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.”

9.11 Procurement of Recovered Materials – A non-Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with 42 U.S.C. Section 6962 of the Solid Waste Disposal Act (42 U.S.C.A. Section 6901, et seq.), as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Redlands Regular Meeting of 11-19-24 447 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm Protection Agency (EPA) at 40 CFR Part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

9.12 Access to Records and Records Retention - Contractor shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services. Such books shall be available at reasonable times for examination by City at the office of the Contractor. The Contractor, shall allow all duly authorized Federal, State, and/or City officials or authorized representatives access to the work area, as well as all books, documents, materials, papers, and records of the Contractor, and any subconsultants or sub-contractors, that are directly pertinent to this specific program for the purpose of making audits, examinations, excerpts, and transcriptions. The Contractor, and any sub-consultants or sub-contractors, further agree to maintain and keep such books, documents, materials, papers, and records, on a current basis, recording all transactions pertaining to this agreement in a form in accordance with generally acceptable accounting principles. All such books and records shall be retained for such periods of time as required by law, provided, however, notwithstanding any shorter periods of retention, all books, records, and supporting detail shall be retained for a period of at least eight (8) years after the expiration of the term of this Agreement.

IN WITNESS WHEREOF, duly authorized representatives of City and Contractor have signed in confirmation of this Agreement.

CITY OF REDLANDS CONTRACTOR
By: ___________________________ By: _________________________ Paul T. Barich, Mayor David Ireland, General Manager
Redlands Ranch Market
ATTEST:
___________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 11-19-24 448 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm EXHIBIT "A"

SCOPE OF SERVICES
A. Purpose:

During the term of this Agreement for the ARPA Program - Grocery Gift Card Purchase entered into between Contractor and the City, Contractor shall provide up to 1,687 gift cards on a monthly basis to the City through October 2023. The gift cards are for exclusive use at Contractor’s grocery retail store for purchase of food items only.

B. Description of services/deliverables:

The City will accept applications from eligible households and distribute the gift cards beginning in June 2022 and will continue to accept applications until October 1st 2022.

The program will conclude with the distribution of the final monthly gift card or October 2023, whichever is sooner.
 Because the City will be accepting applications on a rolling basis from May-October 1, 2022, the number of needed gift cards will vary each month, but will not exceed 1,687 in any given month. The Contractor must designate a window timeframe to allow City staff to communicate the number of gift cards needed for the following month. The Contractor MUST register on SAM.gov and provide UEI, DUNS or TIN # prior to commencement of services and before any payment to be made The monthly services/deliverables include:
 Provide the number of requested physical gift cards to the City each month  Gift cards must be valued at $100 each
 Ensure that participant purchases made with gift cards exclude all purchases of tobacco and alcohol products
 Ensure that gift cards are used to purchase food only by participants Redlands Regular Meeting of 11-19-24 449 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm EXHIBIT "B"

PROJECT SCHEDULE
May - October 1,
2022
• Participant Enrollment Period
June 2022 -
October 2023
• Eligible households receive monthly gift cards from
City program staff- provided to staff by contractor
October 31,
2023 or sooner
• Program concludes when the last enrollee receives
their final (12th) gift card
Redlands Regular Meeting of 11-19-24 450 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm EXHIBIT "C"

PAYMENT SCHEDULE
Proposed Scope of Work Product or Outcome
The Scope of Work for this effort
encompasses the description of
services/deliverables found in Exhibit A,
Sections A-B. All Scope of Work activities
will be completed by the end of the contract
term.
 Must register on SAM.gov and
provide UEI, DUNS or TIN # prior to
commencement of services and before
any payment to be made
 Provide the determined number of gift
cards requested by the City each
month – not to exceed a maximum of
1,687 gift cards in any given month
 Ensure that participant purchases
made with gift cards exclude all
purchases of tobacco and alcohol
products
 Ensure that gift cards are used to
purchase food only by participants
Monthly Invoice Not To Exceed $168,700.00
TOTAL NOT TO EXCEED $2,024,400.00
Redlands Regular Meeting of 11-19-24 451 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm EXHIBIT “D”

INVOICE FORM

TO BE PROVIDED ON LETTERHEAD
Contractor Name: About Foods Inc., dba Redlands Ranch Market Mailing Address:

Redlands Ranch Market
800 E. Lugonia Ave.

Redlands CA, 92374
Invoice Number:

Payment Request for Services Rendered
Please provide a brief description of services performed:

Date Deliverable Cost
Total for this Invoice: $
Redlands Regular Meeting of 11-19-24 452 of 1010
L:\ca\djm\Agreements\RedlandsRanchMarket-ARPA Resident Food Assistant Program Agreement.docx.jm EXHIBIT "E"
WORKERS’ COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation in one or more of the following ways:
(a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self-insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his or her employees.

CHECK ONE
_____I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861).
_____I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers’ compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers’ compensation laws of California, immediately I shall provide the City with a certificate of consent to self-insure, or a certification of workers’ compensation insurance.

I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct.

CONTRACTOR
By: Date: ___________________
David Ireland, General Manager
Redlands Ranch Market
Redlands Regular Meeting of 11-19-24 453 of 1010
City Council Meeting L. 3.

DATE: 11/19/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of a Homeless Resource Services Agreement with Step Up on Second Street, Inc. for property management services at Step Up in Redlands Project Home Key for an amount
not-to-exceed Four Hundred Twenty-Five Thousand Dollars ($425,000), and determine that the services provided are exempt from environmental review pursuant to Section 15061 (b)(3) of the State’s guidelines implementing the California Environmental Quality Act (Assistant City Manager Boatman)
MOTION(S):

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

I move that the City Council determine approval of the homeless resource services agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act; and

1. I move to approve the homeless resource services agreement with Step Up on Second Street, Inc. for an amount not-to-exceed Four Hundred Twenty-Five Thousand Dollars ($425,000).

2. RECOMMENDATION:

Staff recommends that the City Council award a homeless resource services agreement to Step Up on Second Street, Inc. for an amount not-to-exceed Four Hundred Twenty-Five Thousand Dollars ($425,000). Staff further recommends City Council determine approval of the homeless resource services agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act.

Redlands Regular Meeting of 11-19-24 454 of 1010
DISCUSSION:

In 2022, the City of Redlands (City) and Step Up on Second Street, Inc. (Step Up) were partners in a "Project Home Key" grant-funded endeavor to convert the former Good Nite Inn into 98 studio apartments and maintain the facility as a permanent supportive housing complex for the formerly unhoused population.

In order to ensure the long term success of the project, the City committed to providing annual financial support of the project for the first 7 years, totaling approximately $3.5 million dollars.

Attached is a proposed Homeless Resource Services Agreement engaging Step Up on Second Street, Inc. as a Property Management Agent (PM Agent) to oversee the operations of the "Step Up In Redlands" permanent supportive housing facility, located at 1675 Industrial Park Ave., Redlands, CA. Under the proposed agreement, the PM Agent would be responsible for managing all aspects of the property, including leasing, rent collection, and maintenance, while ensuring compliance with local regulations and federal housing standards.

Step-Up will also administer tenant selection according to Project Homekey guidelines, prioritizing low-income households. In addition, the PM Agent would work to maintain positive tenant relations, with an emphasis on counseling and referrals, and would oversee both preventive maintenance and emergency repairs as needed.

The agreement would also require the PM Agent to comply with nondiscrimination laws, ensuring equal housing opportunities. Regular meetings with the City would be scheduled to provide updates and guidance on property management issues. The agent would collect rents, ensure lease compliance, and, when necessary, manage evictions. In return for these services, the PM Agent would receive a management fee of 3% of gross revenue, with a minimum payment of $3,843 per month. This arrangement is intended to ensure the efficient and professional management of the "Step Up In Redlands" facility, supporting its mission of providing housing for vulnerable community members.

Since initial occupancy of the facility in January 2023, the City and Step Up have worked closely together to maintain higher than a 95% retention rate at the facility, providing a safe and secure home for many of those who were once homeless on the streets of Redlands.

ALTERNATIVES:

City Council may choose not to approve the agreement and provide staff alternate direction.

Redlands Regular Meeting of 11-19-24 455 of 1010
STRATEGIC PLAN:

Priority B-4 Homelessness
SUBMITTED BY:

David Rabindranath, Homeless Solutions Manager
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:

Nancy Felix Administrative Assistant II
Fiscal Impact
Fiscal Year: FY2024-25
Appropriation Required Y/N: N
Amount: 425000
Budgeted Y/N: Y
Account No.: 300013
Discussion:

Adequate funds are allocated in the 2024-2026 budget.

Attachments
Agreement
Redlands Regular Meeting of 11-19-24 456 of 1010
1 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms

HOMELESS RESOURCE SERVICES AGREEMENT
This agreement for the provision of Homeless Resource Services providing property management services for the Project HomeKey facility in Redlands, California (“Agreement”) is made and entered in this 19
th day of November, 2024 (“Effective Date”), by and between the City of Redlands, a municipal corporation (“City”) and Step Up On Second Street, Inc., a California nonprofit public benefit corporation (“PM Agent”). City and PM Agent are sometimes individually referred to herein as a “Party” and, together, as the “Parties.” In consideration of the mutual promises contained herein, City and PM Agent agree as follows:

ARTICLE 1 – ENGAGEMENT OF PM AGENT

1.1 City hereby engages PM Agent to provide homeless resourcesincluding providing property management services for a Project HomeKey facility located at 1675 Industrial Park Ave., Redlands, California 92374 (“Facility”), for City (the “Services”).

1.2 The Services shall be performed by PM Agent in a professional manner, and PM Agent represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional PM Agents in the industry providing like and similar types of Services.

ARTICLE 2 – SERVICES OF PM AGENT

2.1 The Services that PM Agent shall provide are more particularly described in Exhibit “A,” titled, “Scope of Services,” which is attached hereto and incorporated herein by this reference.

2.2 PM Agent shall comply with applicable federal, state, and local laws and regulations in the performance of this Agreement including, but not limited to, any applicable State prevailing wage laws. This Agreement is subject to any additional restrictions, limitations, conditions or statutes, regulations or any other laws whether federal, State of California or any agency, department or any political subdivision of the federal or State of California which may affect the provisions, terms or funding of the ERF Grant and this Agreement in any manner.

ARTICLE 3 – RESPONSIBILITIES OF CITY

3.1 City shall make available to PM Agent information in its possession that may reasonably assist PM Agent in providing the Services.

3.2 City designates David Rabindranath, Homeless Solutions Coordinator, as City’s representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret, and define City’s policies and decisions with respect to performance of the Services.

Redlands Regular Meeting of 11-19-24 457 of 1010
2 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms ARTICLE 4 – PERFORMANCE OF SERVICES

4.1 PM Agent shall perform and complete the Services in a prompt and diligent manner in accordance with the schedule set forth in Exhibit “A,” titled, “Scope of Services” (“Services”) which is attached hereto and incorporated herein by this reference.

4.2 The term of this Agreement shall be for a period commencing as of the Effective Date and ending on June 30, 2026, or unless terminated earlier as provided herein.

4.3 Either party may terminate this agreement by giving a minimum of thirty (30) days written notice to the other party.

4.4 If PM Agent’s Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to City, consistent with City Council-adopted policy for the same. It shall be the obligation of PM Agent to obtain a copy of such policy from City staff.

4.5 The parties to this Agreement acknowledge that the City does not own the Facility, and that the current owner of the Facility may elect to cancel this Agreement at any time. The parties agree that in the event of such cancellation, or other material interference by the current Facility owner, the parties will deem this Agreement canceled when either party provide written notice to the other party of such occurrence, and will hold each other harmless.

ARTICLE 5 – PAYMENTS TO PM AGENT

5.1 Total compensation for Contractor’s performance of the Services shall not exceed the amount of Four Hundred Twenty-Five Thousand Dollars ($425,000). City shall pay PM Agent on a time and materials basis up to the not to exceed amount in accordance with Exhibit “B,” titled “Rate Sheet,” which is attached hereto and incorporated herein by this reference.

5.2 PM Agent shall submit monthly invoices to City describing the Services performed during the preceding month. PM Agent’s invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom.

City shall pay Contractor no later than thirty (30) days after receipt and approval by City of Contractor’s invoice.

Redlands Regular Meeting of 11-19-24 458 of 1010
3 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms

CITY PM AGENT
City Clerk Tod Lipka, CEO
City of Redlands Step Up On Second Street, Inc.
35 Cajon Street 1328 Second Street
P.O. Box 3005 (mailing) Santa Monica, CA 90401
Redlands, CA 92373 [email protected]
[email protected] (310) 394-6889
(909) 798-7531
ARTICLE 6 – INSURANCE AND INDEMNIFICATION

6.1 The following insurance coverage required by this Agreement shall be maintained by PM Agent for the duration of its performance of the Services. PM Agent shall not perform any Services unless and until the required insurance listed below is obtained by PM Agent. PM Agent shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City.

A. Workers’ Compensation and Employer’s Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that PM Agent is self-insured or exempt from the workers’ compensation laws of the State of California. PM Agent shall execute and provide City with Exhibit “C,” titled, “Workers’ Compensation Insurance Certification,” which is attached hereto and incorporated herein by this reference, prior to performance of the Services.

B. Comprehensive General Liability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate, for public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City.

C. Business Auto Liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability. This coverage shall include all PM Agent owned vehicles used in connection with PM Agent’s provision of the Services, hired and non-owned vehicles, and employee non-ownership vehicles. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or selfinsurance maintained by City.

6.2 PM Agent shall defend, indemnify, and hold harmless City and its elected and appointed officials, employees, and agents from and against any and all claims, losses and liability, including attorneys’ fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of PM Agent, or its officers, employees and agents in performing the Services.

Redlands Regular Meeting of 11-19-24 459 of 1010
4 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms ARTICLE 7 – CONFLICTS OF INTEREST

7.1 PM Agent covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by the performance of PM Agent’s Services. PM Agent further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement.

7.2 PM Agent agrees it is not a designated employee within the meaning of the Political Reform Act because PM Agent:

A. Does not make a governmental decision whether to:
(i) approve a rate, rule or regulation, or adopt or enforce a City law; (ii) issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize City to enter into, modify or renew a contract; (iv) grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) grant City approval to a plan, design, report, study or similar item; (vi) adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof.

7.3 In the event City determines that PM Agent must disclose its financial interests, PM Agent shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk’s office pursuant to the written instructions provided by the City Clerk.

ARTICLE 8 – GENERAL CONSIDERATIONS

8.1 No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of City to enforce at any time the provisions of this Agreement, or to require at any time, performance by PM Agent of this Agreement, shall in no way be construed to be a waiver of such provision nor to affect the validity of this Agreement or the right City to enforce the provisions of this Agreement.

8.2 In the event any action is commenced to enforce or interpret any of 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 attorneys’ fees, including fees for the use of inhouse counsel by a Party.

Redlands Regular Meeting of 11-19-24 460 of 1010
5 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms

8.3 PM Agent shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, results in City’s immediate termination of this Agreement.

8.4 PM Agent is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor any of its agents shall have control over the conduct of PM Agent or PM Agent’s employees, except as herein set forth. PM Agent shall supply all necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by PM Agent are for its account only, and in no event shall PM Agent or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. PM Agent shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall PM Agent have any authority, express or implied, to bind City to any obligation.

8.5 This Agreement may be terminated by City, in its sole discretion, by providing not less than ten (10) days prior written notice to PM Agent of City’s intent to terminate. If this Agreement is terminated by City, an adjustment to PM Agent’s compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due PM Agent at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by PM Agent. Upon receipt of a termination notice, PM Agent shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, drawings, specifications, reports, summaries and such other information and materials as may have been accumulated by PM Agent in performing the Services. PM Agent shall be compensated on a pro-rata basis for Services completed up to the date of termination.

8.6 PM Agent shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of five (5) years, or for any longer period required by law, from the date of final payment to PM Agent pursuant to this Agreement. City shall have the right to review, obtain and copy all records and supporting documentation pertaining to the performance of Services under the Agreement. Such books shall be available upon reasonable notice and during normal business hours for examination, inspecting and copying of records and documentation related to the Services provided under this Agreement, by City at the office of PM Agent.

8.7 During the performance of this Agreement, PM Agent and its employees and subcontractors shall not unlawfully discriminate, harass, or allow harassment against an employee or applicant for employment because of sex (gender), sexual orientation, gender identity, gender expression, race, color, ancestry, religion, creed, national origin, pregnancy, physical disability, mental disability, medical condition, age, genetic information, marital status, military and veteran status, denial of medical and family care leave, pregnancy disability leave or any other protected class under state or federal law.

Redlands Regular Meeting of 11-19-24 461 of 1010
6 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms PM Agent shall ensure that the valuation and treatment of its employees and applicants for employment are free from such discrimination and harassment. PM Agent shall comply with the provisions of California law against discriminatory practices relating to such protected classes.

8.8 PM Agent agrees to comply with the Drug-Free Workplace Act of 1990 (Government Code Section 8350, et seq.) and have or will provide a drug-free workplace.

8.9 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, any amendment to this Agreement shall be in writing, approved by City and signed by City and PM Agent.

8.10 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California.

8.11 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement.

IN WITNESS WHEREOF, duly authorized representatives of City and PM Agent have signed in confirmation of this Agreement.

CITY OF REDLANDS STEP UP ON SECOND STREET, INC.

By: ___________________________ By: _________________________ Eddie Tejeda, Mayor Tod Lipka, CEO
ATTEST:
___________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 11-19-24 462 of 1010
7 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms EXHIBIT "A"

SCOPE OF SERVICES
Provide property management services for the Step Up In Redlands permanent supportive housing facility located at 1675 Industrial Park Ave., Redlands, California 92374.

In consideration of the terms, conditions, and covenants hereinafter set forth, the City and PM Agent hereby mutually agree as follows:

1. Appointment and Acceptance. The City appoints PM Agent as exclusive agent for the management of the operations of the property known as Step Up In Redlands, located at 1675 Industrial Park Ave. Redlands, CA 92374 (Building), and PM Agent accepts the appointment, subject to the terms and conditions set forth in this Agreement. PM Agent represents that it is experienced in professional management of properties of the character and occupancy of the Building, and PM Agent agrees to manage the Building in accordance with the highest professional standards for such property.

2. Nondiscrimination. In the performance of its obligations under this Agreement, the City and PM Agent shall comply with the provisions of all federal, state, or local laws prohibiting discrimination in housing on the basis of race, color, ancestry, religion, national origin, sex, marital status, children, or handicap, including Title VI of the Civil Rights Act of 1964 (Public Law 88-352) and the regulations issued pursuant thereto (24 CFR Part I; Executive Order 11063 and the regulations issued pursuant thereto (25 CFR 570.601); and Title VIII of the 1968 Civil Rights Act (Public Law 90-384).

3. Meeting with the City. PM Agent agrees to cause its representative to confer with the City and to attend meetings with the City at any reasonable time or times requested by the City, but in no event less than monthly. PM Agent is to provide guidance to the City on property management and services related matters as well as guidance on the requirement of the Authorities and other federal, state, and local government agencies with respect to property management related matters.

4. Basic Information. PM Agent shall thoroughly familiarize itself with the character, location, construction, layout, plan and operation of the Building, and especially the electrical, heating, plumbing, and ventilation system, and all other mechanical equipment in the Building.

5. Leasing. PM Agent shall commence with offering for rent and shall rent the dwelling units in the Building when a unit is vacant. The leasing guidelines and form of lease referred to herein below. Incident thereto, the following provisions shall apply:
a. PM Agent shall show dwelling units for rent in the Building when the unit is ready.

Showing shall be to referrals provided by the CES PM Agent to the PM Agent. b. PM Agent shall take and process applications for rentals, including prospective Redlands Regular Meeting of 11-19-24 463 of 1010
8 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms Tenant interviews, verification of income, and sex offender checks. If an application is rejected, PM Agent shall promptly give to the applicant a proper written notice, Unable to Accommodate stating the reason for rejection. As outlined in the Tenant Selection Plan.
c. PM Agent shall comply with the special low-income housing Project Homekey and HCD requirements concerning leasing and related matters. d. PM Agent shall be responsible for the initial certification of residents covered by any Housing Assistance Payments Contracts that may be applicable to the Building with respect to federal Section 8 rent subsidies, following procedures required by the U.S. Department of Housing and Urban Development ("HUD") if applicable.

Under Project Homekey guideline residents are not required to recertify annually. PM Agent will not complete annual recertifications.
e. Subsidy sources are PSH, Section 8, VASH, City of Redlands, and HCD funding sources.
f. PM Agent will not have a waiting list of prospective Residents. Once a referral has been identified the leasing process will follow the Tenant Selection Plan. PM Agent shall exercise its best efforts (including, but not limited to, accepting CES referrals, assistance in completion of rental applications, interview of prospective residents, processing of documents, execution of Leases, and explanation of the program/ operations of the City), to effect the leasing of dwelling units, and Leases. g. PM Agent shall perform such other acts and deeds requested by the City as are reasonable, necessary, and proper in the discharge of PM Agent's rental duties under this Agreement.
h. PM Agent shall participate in the inspection of the dwelling unit identified in the Lease together with the Tenant prior to move-in and upon move-out, and shall record in writing any previous damage to the unit and any damage occurring during the Tenant's occupancy.

6. Project Homekey/HCD Requirements. PM Agent acknowledges to lease 100% of the units to residents whose income do not exceed 30% AMI. Following guidelines of the Project HomeKey Program administered by HCD. The City shall furnish PM Agent with written descriptions of such requirements as they relate to PM Agent’s leasing property management and fiscal management duties hereunder. Incident thereto, the following provisions shall apply:
a. PM Agent shall, prior to approving each rental application and prior to allowing prospective tenant to take occupancy, require each prospective tenant household to complete required forms and provide documentation to qualify application for residency. All applications will be submitted to Step Up’s Compliance Department for approval.

Redlands Regular Meeting of 11-19-24 464 of 1010
9 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms b. The Compliance Department will verify program guidelines are followed. A Tenant Income Certification, Managers Certification, and Calculation sheet will be used to confirm annual income.
c. PM Agent is authorized without the City’s prior consent to update forms, policies, and procedures to adhere to Project Homekey/HCD guidelines. d. Without the City’s prior written consent, PM Agent shall not enter into any lease on behalf of the City to a tenant household who fails to meet the income eligibility requirements for Project Homekey.
e. PM Agent shall maintain and preserve all written records of tenant income and household size, and any other information reasonably requested by the City in writing in connection with the Project HomeKey, throughout the term of the Agreement, and shall turn all such records over to the City upon the termination or expiration of this Agreement or upon written request of Owner. f. PM Agent shall, to the extent such is within the scope of its authority and duties hereunder, comply with all leasing, management, reporting, and similar requirements in connection with the Project Homekey/HCD, whether such requirements be from a monitoring agency or any branch of government g. PM Agent shall cause the Building to be maintained in compliance with all local health, safety, and building codes to the extent of available funds, and shall promptly give written notice to the City if PM Agent receives notice of any such code violation relating to the Building.

7. Collection of Rents, Etc. PM Agent shall collect when due, directly or through an on-site manager, all rents, charges, and other amounts receivable on Owner's account in connection with the management and operation of the Building. Such receipts shall be deposited in the Operating Account and controlled by the Owner, separate from all other accounts and funds.

8. Enforcement of Leases. PM Agent shall make reasonable efforts to secure full compliance by each Tenant with the terms of such Tenant's Lease. Voluntary compliance shall be emphasized, and PM Agent shall counsel Tenants and make referrals to community agencies in cases of financial hardship or other circumstances deemed appropriate by PM Agent, all to the end that involuntary termination of tenancies shall be avoided to the maximum extent, consistent with sound management of the Building.

Nevertheless, and subject to any applicable procedures prescribed in the Management Plan, PM Agent may, and shall if requested by the Owner or the City, lawfully terminate any tenancy when sufficient cause for such termination occurs under the terms of the Tenant's Lease, including, but not limited to, nonpayment of rent. For this purpose, PM Agent is authorized to consult with legal counsel and bring actions agreed upon by the City and PM Agent for eviction and execute notices to vacate and judicial pleadings Redlands Regular Meeting of 11-19-24 465 of 1010
10 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms incident to such actions; provided however, that PM Agent shall keep the Owner and the City informed of such actions and shall follow such instructions as Owner may prescribe for the conduct of any such action. Reasonable attorneys' fees and other necessary costs incurred in connection with such actions, as determined by Owner, shall be paid out of the Operating Account. PM Agent shall properly assess and collect from each Tenant, or the tenant’s security deposit, the cost of repairing any damages to the dwelling unit arising during the Tenant's occupancy.

9. Maintenance and Repairs. PM Agent shall cause the Building to be maintained in a decent, safe, and sanitary condition. In accordance with Step Up’s Maintenance Plan and local codes. PM Agent otherwise shall maintain the Building at all times in a condition acceptable to the City, including, but not limited to, performance of cleaning, painting, decorating, plumbing, carpentry, grounds care, and such other maintenance and repair work as may be necessary. Incident thereto, the following provisions shall apply:
a. Special attention shall be given to preventive maintenance, and to the greatest extent feasible, the services of regular maintenance personnel shall be used. b. PM Agent shall contract with qualified independent contractors for the maintenance and repair of major mechanical systems, and for the performance of extraordinary repairs beyond the capability of regular maintenance personnel. PM Agent shall obtain prior to commencement of any work written evidence of such contractor's liability and workers compensation insurance. c. PM Agent shall systematically and promptly receive and investigate all service requests from Tenants, take such action thereon as may be justified, and keep records of the same. PM Agent shall make all reasonable efforts to ensure that emergency requests are received and serviced on a 24-hour basis. Complaints of a serious nature shall be reported to the City after investigation. The City shall have the right to receive copies of all service requests and the reports of action taken thereon.
d. PM Agent shall, to the extent within the scope of its authority and duties hereunder, use best efforts to take such action as may be necessary to comply with any and all orders or requirements of federal, state, county, or municipal authorities having jurisdiction over the Building and orders of any board of fire underwriters, insurance companies, and other similar bodies. e. PM Agent is authorized to purchase all materials, equipment, tools, appliances, supplies, and services necessary for proper maintenance or repair of the Building.

PM Agent shall consult with the City before making any such purchase if such purchases when combined with other regularly occurring project expenses and/or when combined with outstanding accounts payable from the project's operating account will result in an Operating Account balance of less than one thousand dollars ($1,000.00).

Redlands Regular Meeting of 11-19-24 466 of 1010
11 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms f. Notwithstanding any of the foregoing provisions, the prior approval of the City shall be required for any one or combination of expenditures exceeding $2,500.00 for any labor, materials, supplies or otherwise that will be required in connection with the related maintenance and repair of a unit or condition in the Building, except for emergency repairs involving manifest danger to persons or property, or required to avoid imminent suspension of any necessary service to the Building.

The PM Agent will abide by the provisions of this paragraph when preparing a unit for re-rental. In the event of emergency repairs, PM Agent shall notify Owner of the fact promptly, and in no event later than 72 hours from the occurrence of the event.
g. PM Agent shall not procure the services of, or purchase from, any business entity that is either owned by or employs members of any nuclear or extended family members of the PM Agent. This restriction applies regardless of the dollar amount of the services or goods in question.
h. PM Agent shall inspect all units in the community annually. The expenses related to the repairs shall be paid from the operating account. If the City wants to inspect units a 24 hour written notice must be given to the residents.

10. Utilities and Services. Owner shall make arrangements for water, electricity, gas, sewage, and trash disposal, vermin extermination, decorating, laundry facilities, telephone service and internet service (if applicable) in connection with the Building. All vendor bills will be sent directly to the Owner. All services contracted will be in the name of the Owner.

11. Personnel. All on-site personnel shall be contracted service PM Agents or employees of PM Agent and shall be paid via the terms of this agreement as an expense of the Building.

Employee expense shall be paid PM Agent shall at all times have sufficient personnel physically present at the Building for the full and efficient performance of its duties under this Agreement, including physical presence of responsible persons at such times as reasonably may be requested by the City.

Operating Account. All accounts for operation and security deposits are the sole responsibility of the owner of the project. The PM Agent has no involvement with the creation or management of these accounts. Owner shall be responsible for all financial reporting

12. Management Fee. For performance of the property management functions under this Agreement, the PM Agent shall receive management fees as follows:
a. PM Agent's Compensation. As compensation for all of PM Agent's ongoing supervisory, management, file processing, reporting, record-keeping, and related services under this Agreement, PM Agent shall receive 3% of gross revenue. Not to be less than $3,843 per month.

Redlands Regular Meeting of 11-19-24 467 of 1010
12 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms EXHIBIT "B"

RATE SHEET
Staff Hourly Rate (Fully Burdened) Site Manager
(Estimated 40 hours/week)
$35.00/hour
Staff Hourly Rate (Fully Burdened) Area Manager
(Estimated 30 hours/week)
$40.00 / hour
Staff Hourly Rate (Fully Burdened) Maintenance Worker
(Estimated 40 hours/week)
$35.00 / hour
Facility Supplies Actual Cost + 5%
Property Management Fee: Does not include accounting functions 3% of Gross Monthly Revenue
Minimum of $3,843
/ month
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13 I:\cmo\Agreements\Step Up on Second Street, Inc. (Property Management) Agreement FY24-0058.docx-ms EXHIBIT "C"
WORKERS’ COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation in one or more of the following ways:
(a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self-insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his or her employees.

I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct.

STEP UP ON SECOND STREET, INC.

By: Date: ___________________
Tod Lipka, CEO
Redlands Regular Meeting of 11-19-24 469 of 1010
City Council Meeting L. 4.

DATE: 11/19/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of a Real Property Exchange Agreement with Property One, LLC for the for the exchange of Assessor's Parcel Numbers 0169-272-27-0000 and 0170-142-12-0000, and determine that approval of the agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act (Assistant City Manager Boatman)
MOTION(S):

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

I move that the City Council find that approval of the Real Property Exchange Agreement with Property One, LLC is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act; and

1. I move that City Council approve the Real Property Exchange Agreement with Property One, LLC.

2. RECOMMENDATION:

Staff recommends that the City Council determine that approval of the Real Property Exchange Agreement with Property One, LLC is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act.

Staff further recommends that the City Council approve the Real Property Exchange Agreement with Property One, LLC for the exchange of Assessor's Parcel Numbers 0169-272-27-0000 and 0170-142-12-0000.

Redlands Regular Meeting of 11-19-24 470 of 1010
DISCUSSION:

The City owns certain real property located at or about the west side of Eureka Street, north of west Redlands Blvd, and south of Oriental Avenue (APN:
0169-272-27-0000) (the “City Property”). The property is approximately 7,809.45 square feet in size. This property is a substandard sized parcel with no value to the City.

Property One, LLC owns certain real property located at or about the west side of Division Street, south of Sylvan Blvd and north of Interstate 10 (APN:
0170-142-12-0000) (the “Property One Property”). The parcel is located and contiguous to Sylvan Park and therefore has value to the city due to its proximity to the open space. The City and Property One desire to exchange titles to their respective properties. Furthermore, an appraisal was conducted and indicated that the properties are of essentially equal value.

Surplus Land Act
The Surplus Land Act (Government Code sections 54220 et seg. the "Act") applies when a local agency disposes of surplus land, which is described in the Act as "land owned in fee simple by any local agency for which the local agency's governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency's use." Under the Act, "exempt surplus Land" includes land that a local agency is exchanging for another property necessary for the agency's use.

On September 3, 2024, the subject property was declared exempt surplus land.

The City received confirmation from the California Department of Housing and Community Development that none of the characteristics listed under Government Code section 54221(f)(2) apply to the subject property.

Determination of General Plan Conformity
Prior to the acquisition or sale of real property by a local agency, Government Code Section 65402 requires that such acquisition or sale be submitted to the Planning Commission (Commission) for an evaluation as to its conformity with the General Plan. The proposed purchase herein for the property identified as APN 0170-142-12-0000 was submitted to the Planning Commission for evaluation on July 23, 2024.

The Commission evaluated the proposed purchase for General Plan conformity and provided its report through the adoption of a resolution (Attachment C).

Through the adoption of this resolution, the Commission found that the purchase would be in conformance with the General Plan in that it is consistent with General Plan Policies 4-A.41 and 7-A.25.

Redlands Regular Meeting of 11-19-24 471 of 1010
Furthermore, approval of the Purchase and Sale Agreement is exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3). Section 15061(b)(3) states that an activity is covered by the common sense exemption where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The approval of the agreement will only transfer ownership of the subject property and will not result in a physical change in the environment. Therefore, the proposed purchase is exempt from further CEQA review.

ALTERNATIVES:

The City Council may elect not to approve the agreement and direct staff accordingly.

STRATEGIC PLAN:

Not Applicable
SUBMITTED BY:

Christopher Boatman, Assistant City Manager
RECOMMENDED BY:

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

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

Tricia Swope, Manager, Facilities and Community Services Fiscal Impact
Fiscal Year: FY 2024-25
Discussion:

There will be minimal fiscal impact related to the costs of the escrow for this Property Exchange Agreement.

Attachments
A. Real Property Exchange Agreement
Redlands Regular Meeting of 11-19-24 472 of 1010
B. Map of Properties
C. Resolution No. 1685 General Plan Conformity
Redlands Regular Meeting of 11-19-24 473 of 1010
17942.00158\42470111.4
I:\cmo\Agreements\Property One, LLC Real Property Exchange Agreement FY24-0045.docx-ms

REAL PROPERTY EXCHANGE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
Between

CITY OF REDLANDS
and

PROPERTY ONE, LLC
Effective Date: NOVEMBER 19, 2024
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2 REAL PROPERTY EXCHANGE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

THIS REAL PROPERTY EXCHANGE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (“Agreement”) is entered into this 19th day of November 2024 (“Effective Date”) by and between the CITY OF REDLANDS, a municipal corporation (the “City”) and PROPERTY ONE, LLC, a California limited liability company, (“Property One”). The City and Property One are sometimes hereinafter referred to individually as a “Party” and collectively as the “Parties.”

R E C I T A L S
A. The City owns that certain real property located at or about the West side of Eureka Street, North of West Redlands Blvd, and South of Oriental Avenue (APN: 0169-272-27-0000) within the city of Redlands, as more particularly described in Exhibit “A” attached hereto and incorporated herein (the “City Property”); and
B. Property One owns that certain real property located at or about the West side of Division Street, South of Sylvan Blvd and North of Interstate 10 (APN: 0170-142-12-0000) within the city of Redlands, as more particularly described in Exhibit “B” attached hereto and incorporated herein (the “Property One Property”).

C. The City Property and Property One Property are sometimes hereinafter referred to collectively as the “Properties.”

A G R E E M E N T
Based upon the foregoing Recitals, which are incorporated herein by this reference, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Property One agree as follows:

1. EXCHANGE OF PROPERTIES.

1.1 Agreement to Exchange. Subject to all the terms, conditions, and provisions of this Agreement, and for the consideration herein set forth, City and Property One agree to exchange title to their respective Properties, each including, to the extent owned by either Party, without limitation, such Party’s interest in all mineral, oil, gas and other hydrocarbon substances on and under the properties as well as all development rights, air rights, water, water rights and water stock relating to the Properties and any other easements, rights-of-way or appurtenances, used in connection with the beneficial use and enjoyment of the Properties.

2. INSPECTIONS AND REVIEW.

2.1 Feasibility/Financing Period. As used herein, the term "Feasibility Period" shall refer to a period of time to expire at 5:00 p.m., California time, on the one hundred and twentieth (120th) calendar day following the Effective Date or the receipt of all Due Diligence Materials, whichever is later; provided, however, that if the one hundred and twentieth (120th) day is a Saturday, Sunday or holiday on which banking institutions are closed in the State of California, Redlands Regular Meeting of 11-19-24 475 of 1010
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3 then the Feasibility Period shall expire on the following business day. Each Party, in its sole and absolute discretion, may elect, by written notice at any time prior to the expiration of the Feasibility Period, to terminate this Agreement. If a Party desires to terminate this Agreement pursuant to this Section 2.1 then before the expiration of the Feasibility Period, it shall deliver written notice to of the election to terminate (the "Notice to Terminate"). If a Party fails to deliver a Notice to Terminate prior to the expiration of the Feasibility Period, then the Parties shall be deemed to have elected to proceed with this Agreement and the Closing, subject to Section 5, below. In the event of the termination of this Agreement pursuant to this Section 2.1, neither party shall have any further obligations to the other hereunder (except under provisions of this Agreement which specifically state that they survive termination). The following notwithstanding, either Party may extend the Feasibility Period one time by a period of sixty (60) days to complete the inspections identified in Section 2.4 below.

2.2 Delivery of Due Diligence Materials. Property One will provide City with copies of all documents in Property One’s possession or control relating to the Property One Property and the general feasibility of use of the Property One Property by City, including but not limited to, zoning, use permits for commercial use, government approvals and entitlements, engineering drawings, biological surveys or reports, grading plans, improvement plans, conditions of approval, soils reports, surveys, and environmental reports (the “Property One Due Diligence Materials”).

City will provide Property One with copies of all documents in City’s possession or control relating to the City Property and the general feasibility of use of the City Property by City, including but not limited to, zoning, use permits for commercial use, government approvals and entitlements, engineering drawings, biological surveys or reports, grading plans, improvement plans, conditions of approval, soils reports, surveys, and environmental reports (the “City Due Diligence Materials”). In the event a Party elects to terminate this Agreement, or if Closing does not occur for any reason, the Parties shall return all Due Diligence Materials received.

2.3 Assumption of Risk. Any Due Diligence Materials shall be provided to the other Party without any recourse or liability of any type or nature. Each Party assumes all risk of any kind with regard to the use of and reliance upon any of the Due Diligence Materials provided by the other Party. Neither Party is relying upon the other Party for any information related to, concerning, or involving the respective properties for this transaction, including, without limitation, the monetary value of the Properties.

2.4 Inspections. The Parties and their respective representatives, agents, engineers, consultants, contractors, and designees shall have the right to enter onto each other’s Properties from and after the date of this Agreement through the Closing for purposes of examining, inspecting and investigating the other’s Properties, including the site, soil, subsurface soils, drainage, seismic and other geological and topographical matters, location of asbestos, toxic substances, hazardous materials or wastes, if any, and, in each Party’s sole and absolute discretion, determining whether the other’s Properties are acceptable to them. Prior to entering the Properties, the entering Party (the “Entering Party”) shall provide the welcoming Party (the “Welcoming Party”) with at least twenty-four (24) hour written notice identifying the date and time of the planned inspection. The Welcoming Party will permit the Entering Party’s planned inspection unless the planned inspection will interfere with a previously planned Welcoming Party activity or event in which case the Parties shall work together in good faith to identify another mutually convenient date or time as soon as possible. Both Parties shall have the right, for any reason and Redlands Regular Meeting of 11-19-24 476 of 1010
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4 at any time on or before the expiration of the Feasibility Period, to terminate this Agreement by delivering a written notice of such termination to the other Party and Escrow Agent.

2.5 Repair; Indemnification. The Entering Party shall, in a timely manner, repair any and all damage to the Welcoming Party’s Properties caused by any inspection or investigation described herein, to a condition substantially the same as the condition of the Welcoming Party’s Properties prior to such inspection or investigation. The Entering Party shall hold harmless, defend and indemnify the Welcoming Party and all of the principals, members, agents and partners of the Welcoming Party from any loss, expense (including attorney’s fees), liability or cost which arises due to or out of any inspection by said Party. The foregoing indemnity shall survive the close or the termination of this transaction.

2.6 As-Is. Based on the inspection rights set forth in the preceding paragraph and in reliance on the due diligence of each Party, City and Property One acknowledge and agree that except for the limited warranties and representations expressly set forth in this Agreement, the exchange of the Properties is made solely on an AS IS WHERE IS BASIS, WITH ABSOLUTELY NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED. But for the foregoing understanding and agreement, the Parties would not have entered into this transaction.

Each Party acknowledges that due to the expertise, experience and business acumen of both Parties and their respective consultants, each Party has the ability to conduct a complete and through due diligence of the respective Properties and would not close the transaction unless totally satisfied with the respective Property, and has otherwise conducted an exhaustive and complete due diligence which would enable the taking of the respective Property in an AS IS WHERE IS BASIS

WITH ABSOLUTELY NO REPRESENTATIONS OR WARRANTIES, EXPRESSED OR IMPLIED.

2.7 Title Review. During each Parties’ respective Feasibility Period, each Party shall obtain a preliminary title report for each respective Property, together with copies of all written instruments creating the exceptions specified therein, and plat maps plotting all easements specified therein (collectively, the “Title Reports”). The Parties shall notify one another in writing (each, an “Objection Notice”) on or before the expiration of the Feasibility Period of any objections they may have to the title exceptions contained in the respective Title Report for the Properties. A Party’s failure to provide an Objection Notice within said period shall constitute such Party’s approval of all exceptions to title shown on the respective Title Report for the Properties. Upon receipt of an Objection Notice, the receiving Party (the “Receiving Party”) shall have a period of ten (10) days after receipt of the objecting Party’s (the “Objecting Party”) Objection Notice in which to deliver written notice to the Objecting Party (“Objection Response”) of the Receiving Party’s election to either (i) agree to remove or cure the objected to items prior to the Close of Escrow, or (ii) decline to remove or cure any such title exceptions and, at the Receiving Party’s discretion, terminate Escrow and this Agreement. If the Receiving Party notifies the Objecting Party of its election to terminate Escrow rather than remove and cure the objected to items, the Objecting Party shall have the right, by written notice delivered to the Receiving Party within ten (10) days after the Objecting Party’s receipt of the Objection Response, to agree to accept the respective Property subject to the objected to items, in which event the Receiving Party’s election to terminate the Escrow shall be of no effect, and the Objecting Party shall take title at the Close of Escrow subject to such objected to items without any adjustment to the Exchange. The Receiving Party may cure any objection by acquiring, at the Receiving Party’s expense, a title Redlands Regular Meeting of 11-19-24 477 of 1010
17942.00158\42470111.4
5 insurance endorsement related to the objected to exception, reasonably acceptable to the Objecting Party. Any extension of the time to review the Title Report for a Property subject to an Objection Notice shall only occur in strict accordance with the following paragraph.

2.8 Review of Amendments and Supplements. Upon the issuance of any amendment or supplement to the Title Report by the Receiving Party for a Property which adds additional exceptions, or adds any new requirement, the foregoing right of review and approval by the Objecting Party shall also apply to said amendment or supplement; provided, however, that the Objecting Party’s period of review and approval or disapproval of any such additional exceptions shall be limited to fifteen (15) business days following the Objecting Party’s and its counsel’s receipt of the instrument(s) creating such additional exceptions. The foregoing extension shall only be allowed for and pertain to the review of the new matter and the Objecting Party shall not be entitled to object to any previously known exception or requirement for which the time for objection has expired.

2.9 Removal of Certain Exceptions. Notwithstanding anything else stated in this Agreement, in all events, the Parties shall satisfy and otherwise remove all monetary and financial liens and encumbrances on their respective Properties in existence as of the Effective Date or incurred on or before Closing (other than current taxes not yet due). In addition, the Parties shall, except as may be otherwise specifically set forth in this Agreement, terminate all leases, possessory agreements, licenses, and operating agreements that affect the respective Properties and cause all parties-in-possession title exceptions shown on the Title Report, if any, to be deleted, and neither Party need object to any such matters.

2.10 Governmental Approvals. During the course of the Escrow, each Party shall be entitled to seek all necessary approvals from any applicable governmental authorities, quasigovernmental authorities, and/or utility providers and regulators (collectively, “Governmental Authorities” and the approvals, collectively, the “Government Approvals”) necessary to utilize the Properties they will receive via this Exchange in any way they see fit. The Parties shall reasonably cooperate with each other to support their efforts to obtain each other’s Governmental Approvals and shall timely execute any and all applications, consents, and other documents reasonably requested by the other Party in connection therewith.

3. ESCROW.

3.1 Opening of Escrow. Within five (5) business days following the Effective Date, the Parties shall open an escrow (the “Escrow”) with Chicago Title (“Escrow Agent”), at its offices located at 9090 Milliken Avenue, Suite 100, Rancho Cucamonga, CA 91730, Attn: Erin Graeberbougie, Escrow Officer, by causing a fully executed copy of this Agreement to be deposited with Escrow Agent (the “Opening of Escrow”). Escrow Agent shall provide each of the Parties with written confirmation of the date of the Opening of Escrow. Chicago Title NCS California (the “Title Company”) shall also provide title insurance services related to this Agreement.

3.2 Close of Escrow; Closing Date. Escrow shall close on or prior to the date which is thirty (30) days after the conclusion of the Feasibility Period, unless mutually extended by both Parties, provided that the conditions to Closing described in Section 4 below have been satisfied Redlands Regular Meeting of 11-19-24 478 of 1010
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6 or waived (the “Closing Date”). The terms the “Close of Escrow”, and/or the “Closing” are used herein to mean the date the Grant Deeds (as the term is defined in Section 3.5 herein) are recorded in the Office of the County Recorder of the County of San Bernardino (the “Official Records”).

3.3 Possession. Respective possession of the Properties shall be delivered to each Party at the Close of Escrow, free and clear of all liens, encumbrances, tenancies, lessees, occupants, licensees, and all possessory rights of any kind or nature, except for any Permitted Exceptions, as set forth and defined in Section 4.1.3.

3.4 Joint Escrow Instructions. This Agreement, together with any standard instructions of Escrow Agent, shall constitute the joint escrow instructions of the Parties to Escrow Agent. In the event of any conflict between the provisions of this Agreement and Escrow Agent’s standard instructions, this Agreement shall prevail.

3.5 Deliveries by City. No later than 5:00 p.m. on the business day preceding the Closing Date, City shall deliver to Escrow Agent:
(a) A fully executed and acknowledged grant deed conveying fee simple title to the City Property to Property One, in the form of Exhibit “C,” attached hereto, in recordable form;
(b) A non-foreign affidavit (the “Non-Foreign Affidavit”) in the form of Exhibit “D”, attached hereto;
(c) A certificate of acceptance for the Property One Property Grant Deed, in the form of Exhibit “E”, attached hereto;
(d) Such other documents as may be reasonably required by Title Company or Escrow Agent in order to issue the City Title Policy, transfer the City Property to Property One, or otherwise fulfill the terms and intent of this Agreement.

3.6 Deliveries by Property One. No later than 5:00 p.m. on the business day preceding the Closing Date, Property One shall deliver to Escrow Agent:
(a) A fully executed and acknowledged grant deed conveying fee simple title to the Property One Property to the City, in the form of Exhibit “E,” attached hereto, in recordable form;
(b) A Non-Foreign Affidavit in the form of Exhibit “D”; and (c) Such other documents as may be reasonably required by Title Company or Escrow Agent in order to issue the Property One Title Policy, or otherwise required to transfer the Property One Property to City in accordance with the terms of this Agreement.

3.7 Closing, Recording and Disbursements. On or before the Closing Date, and when all of the conditions precedent to the Close of Escrow set forth in Section 4 of this Agreement have been satisfied or waived in writing, Escrow Agent shall take the actions set forth in this Section

3.7. Redlands Regular Meeting of 11-19-24 479 of 1010
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7 3.7.1 Recording. Escrow Agent shall cause the Grant Deeds to be recorded in the Official Records.

3.7.2 Title Policy. Escrow Agent shall deliver to both Parties a commitment to issue Title Policies for the respective Properties, as referred to in Section 4.1.3 of this Agreement.

3.7.3 Delivery of Documents. Escrow Agent shall deliver to the respective Parties a conformed copy of the respective Grant Deeds, and any other documents (or copies thereof) deposited by the other Party with Escrow Agent pursuant to this Agreement. The originals of the Grant Deeds shall be returned to the respective Parties after recordation.

3.7.4 Real Property Taxes. All non-delinquent general and special real property taxes and assessments shall be prorated as of the Close of Escrow.

3.8 Payment of Costs. The Parties shall be responsible for payment of all applicable documentary transfer taxes and costs associated with recording the Grant Deeds for the respective Properties they are acquiring. The Parties shall also be responsible for all title insurance premiums for the respective ALTA standard owner’s form policy for the respective Properties they are acquiring, as well as all charges associated with the title insurance premiums for any additional cost of obtaining any additional coverage requested by a Party, including the difference between an ALTA standard owner’s policy and an ALTA extended owner’s policy. The Parties shall share the Escrow fees or Escrow Agent’s termination fees, as applicable, 50-50, unless the termination is caused by one Party’s default (pursuant to Section 6), in which case the defaulting Party shall be liable for all outstanding Escrow fees, including Escrow termination fees. The Parties shall each be responsible for their respective attorneys’ fees. All other costs of Escrow not specifically allocated in this Agreement shall be split equally among the Parties.

4. CONDITIONS PRECEDENT TO CLOSE OF ESCROW.

4.1 Conditions to City’s Obligations. City’s obligation to close the Exchange shall be subject to the satisfaction or written waiver by City of each of the conditions precedent set forth in this Section 4.1.

4.1.1 Property One’s Performance. Property One is not in default of any term or condition of this Agreement. In the event City alleges that Property One is in default, City shall notify Property One in writing and describe the alleged default in detail. Property One shall have a reasonable time, but not less than fifteen (15) days, to cure any alleged default.

4.1.2 Property One Deliveries Made. Property One has deposited with Escrow Agent all documents required of Property One by this Agreement.

4.1.3 Title Policy. Title Company has committed to issue to City an ALTA standard, or at City’s choice, an ALTA extended coverage owner’s policy of title insurance (“Title Policy”), showing fee title to Property One’s Property vested in City, subject only to:
(a) the standard printed exceptions and exclusions contained in the form of the Title Policy commonly used by Title Company;
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8 (b) title exceptions approved by City pursuant to Section 2.7 and 2.8 of this Agreement;
(c) title exceptions resulting from documents being recorded or delivered through Escrow pursuant to this Agreement; and (d) any other exceptions approved in writing by City in its sole and absolute discretion.

The terms of sub-sections (a) through (d), inclusive, being herein collectively referred to as “Permitted Exceptions.”

4.1.4 Representations and Warranties. All representations and warranties made by Property One in this Agreement, to the best of Property One’s actual knowledge, are true and correct as of the Closing as though made at that time.

4.2 Conditions to Property One’s Obligations. Property One’s obligation to close the Exchange shall be subject to the satisfaction or written waiver by Property One of each of the conditions precedent set forth in this Section 4.2.

4.2.1 City’s Performance. City is not in default of any term or condition of this Agreement. In the event City alleges that City is in default, Property One shall notify City in writing and describe the alleged default in detail. City shall have a reasonable time, but not less than fifteen (15) days, to cure any alleged default.

4.2.2 City’s Deliveries Made. City has deposited with Escrow Agent all documents required of City by this Agreement.

4.2.3 Title Policy. Title Company has committed to issue to Property One an ALTA standard, or at Property One’s choice, an ALTA extended coverage owner’s policy of title insurance (“Title Policy”), showing fee title to the City Property vested in Property One, subject only to:
(a) the standard printed exceptions and exclusions contained in the form of the Title Policy commonly used by Title Company;
(b) title exceptions approved by Property One pursuant to Section 2.7 and 2.8 of this Agreement;
(c) title exceptions resulting from documents being recorded or delivered through Escrow pursuant to this Agreement; and (d) any other exceptions approved in writing by Property One in its sole and absolute discretion.

The terms of sub-sections (a) through (d), inclusive, being herein collectively referred to as “Permitted Exceptions.”
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9 4.2.4 Representations and Warranties. All representations and warranties made by City in this Agreement, to the best of City’s actual knowledge, are true and correct as of the Closing as though made at that time.

4.2.5 No Challenges. There shall not be pending any challenge to the validity of this Agreement or the Exchange contemplated herein, including but not limited to any challenges pursuant to the Surplus Land Act.

4.3 Hazardous Materials; Environmental Compliance. As a result of the Parties’ respective inspections pursuant to Section 2.4 herein, each Party intends to satisfy itself that the Properties, as applicable, are not in violation of any federal, state, or local law, ordinance, or regulation relating to Hazardous Materials, industrial hygiene, or to the environmental conditions on, under, or about the respective Properties, or any portion thereof, including, but not limited to, soil and groundwater conditions (together, “Environmental Laws”). If, at any time prior to the expiration of the Diligence Period, a Party determines that a Property it is intending to acquire, or any portion thereof, is in violation of said Environmental Laws, such Party may elect to terminate this Agreement and cancel the Escrow by delivering written notice to that effect to the other Party and Escrow Agent, thereby rendering this entire Agreement invalid, void, and unenforceable. The term “Hazardous Materials” when used in this Agreement shall mean any hazardous waste, hazardous substance, hazardous materials or toxic substances as defined, as of the Closing Date, in any federal, state, or local statute, ordinance, rule, or regulation applicable to the Property, including, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (Title 42 United States Code sections 9601-9675), the Resource Conservation and Recovery Act (Title 42 United States Code sections 6901-6992k), the Carpenter-Presley-Tanner Hazardous Substance Account Act (Health and Safety Code sections 25300-25395), Hazardous Waste Control Law (Health and Safety Code section 25100-25250.25); the Hazardous Materials Transportation Act, as amended (Title 49 United States Code Sections 1801-1819); and any substance defined as “hazardous waste” in Health and Safety Code Section 25117 or as a “hazardous substance” in Health and Safety Code Section 25316, and in the regulations adopted and publications promulgated under these laws. “Hazardous Materials” shall also include asbestos or asbestos-containing materials, radon gas, and petroleum or petroleum fractions, whether or not defined as a hazardous waste or hazardous substance in any such statute, ordinance, rule, or regulation as of the Closing Date.

4.4 Satisfaction of Conditions. Where satisfaction of any of the foregoing conditions requires action by a Party, such Party shall use its diligent best efforts, in good faith, and at its own cost, to satisfy such condition. Where satisfaction of any of the foregoing conditions requires the approval of a Party, such approval shall be granted in such Party’s sole and absolute discretion.

4.5 Waiver. The Parties may at any time or times, at their respective election, waive any of the conditions set forth in Sections 4.1 or 4.2, as applicable, but any such waiver shall be effective only if contained in a writing signed by the waiving Party and delivered to the other Party.

4.6 Termination. Subject to Section 6, in the event all of the conditions set forth in Sections 4.1 and 4.2 are not timely satisfied or waived, the Party whose conditions are not satisfied may, at its option, terminate this Agreement and the Escrow, thereby releasing the Parties from further obligations related to the Exchange of the Properties hereunder. Furthermore, in the event Redlands Regular Meeting of 11-19-24 482 of 1010
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10 this Agreement is terminated by either Party, all documents delivered by any Party to Escrow Agent shall be returned within a reasonable time to the original Party. Nothing in this Section 4.6 shall be construed as releasing any Party from liability for any default of its obligations hereunder or breach of its representations and warranties under this Agreement occurring prior to the termination of this Agreement and/or the Escrow to be opened hereunder.

5. REPRESENTATIONS AND WARRANTIES-BROKERAGE COMMISSIONS.

5.1 Representations and Warranties. The Parties hereby make the following representations and warranties to one another, each of which (i) is material and relied upon by the other in making their respective determinations to enter into this Agreement, (ii) is to the best of each Party’s actual knowledge true in all respects as of the Effective Date and shall be true in all respects on the Closing Date, and (iii) shall survive the Close of Escrow for one (1) year:
(a) Each Party has the full right, power, and authority to enter into this Agreement and to perform its obligations hereunder. This Agreement and all other documents delivered by one Party to the other now or at the Close of Escrow, have been or will be duly executed and delivered by such Party and are legal, valid, and binding obligations of such Party, sufficient to convey to the other Party good and marketable title to the respective Properties, are enforceable in accordance with their respective terms, and do not materially violate any provision of law or any agreement to which such Party is a party. (b) Other than those matters actually known and disclosed by the Parties as of the Effective Date, there are no pending or known threatened actions, suits, writs, injunctions, decrees, legal proceedings or governmental investigations against or affecting the Properties or relating to the ownership, maintenance, use or operation of the Properties. (c) Other than those matters actually known and disclosed by the Parties as of the Effective Date, neither Party has received any written notices nor has any actual knowledge of any violation of any laws, ordinances, rules, regulations or requirements of any Governmental Authority affecting or relating to the Properties. (d) Other than those matters actually known and disclosed by the Parties as of the Effective Date, there are no written leases, rights of first refusal, or other agreements relating to the right of possession and/or occupancy of any of the Properties by any person or entity, except for matters of record approved by such Party pursuant to Sections 2.7 and 2.8 above. (e) Other than those matters actually known and disclosed by the Parties as of the Effective Date, to the best of each Party’s actual knowledge, neither the Properties nor the Parties are in violation of any applicable Federal, State or local statute, ordinance, order, requirement, law, or regulation materially adversely affecting the Properties or construction of any improvement thereon. Neither Party has received a written notice of any such violation of applicable law. The Parties shall make their own independent determination of the feasibility of the use of the respective Properties they seek to acquire for their intended use. (f) Neither Party has personally caused or knowingly permitted any contamination by Hazardous Materials (as defined in Section 4.3 of this Agreement) to occur on, at, about, or within their respective Properties, or any portion thereof, or otherwise knows of any Redlands Regular Meeting of 11-19-24 483 of 1010
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11 such contamination of Hazardous Materials on, at, about, or within their respective Properties, or any portion thereof.

5.2 Duty to Notify of Changed Circumstances; “Knowledge”. If either Party becomes aware of any act or circumstance which would change or render incorrect, in whole or in part, any representation or warranty made by such Party, whether as of the Effective Date or any time thereafter through the Closing Date, such Party will give immediate written notice of such changed fact or circumstance to the other Party, but such notice shall not release the noticing Party of any liabilities or obligations with respect thereto. In the event a Party delivers such notice, the other Party shall have the right, upon written notice, to terminate this Agreement. For purposes of this Agreement, the knowledge requirement shall be based on actual written notice to each Party’s designated person in a form which would provide actual notice to a person without a duty of inquiry. City’s designated person is solely limited to ____________________________, personally, and does not include his or any of City’s agents, advisors or consultants. Property One’s designated person is solely limited to Lance Lenhert, personally, and does not include his/her or any of Property One’s agents, advisors or consultants. The Parties’ respective designated persons shall incur no personal liability for any breach or alleged breach under this Agreement.

5.3 Brokerage Commissions. The Parties hereby each represent and acknowledge that neither Party has hired or otherwise engaged in an agreement with a broker or other party who is entitled to a commission or payment based on the transactions set forth herein. The Parties hereby indemnify and hold the other free and harmless from and against any and all costs and liabilities including, without limitation attorneys’ fees, for causes of action or proceedings which may be instituted by a broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of the indemnifying Party in connection with this Agreement. The foregoing representation and indemnity shall survive the termination of this Agreement.

6. DEFAULT. In the event either Party defaults under any of the terms and provisions of this Agreement (and such default continues for a period of fifteen (15) business days following receipt of written notice of such default from the non-breaching Party), the non-breaching Party shall have the right, but not the obligation, as its sole remedy for such default, to terminate this Agreement and the Escrow created hereby. In the event of such termination, the breaching Party shall deliver to the non-breaching Party all work product prepared by or on behalf of the breaching Party with respect to the Properties which the breaching Party would have received in the Exchange, but excluding internally prepared financial analyses, work product subject to proprietary rights of third parties and the attorney work product doctrine, and any documents protected by attorney client privilege, and without representation or warranty or right to rely thereon.

7. MISCELLANEOUS.

7.1 Costs of Conveyance. All costs related to each Party’s due diligence inspections and testing, and production of and/or reproduction of the Due Diligence Materials shall be the sole responsibility of the Party expending such costs.

7.2 Attorneys’ Fees; Litigation. If any arbitration or action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party (including on Redlands Regular Meeting of 11-19-24 484 of 1010
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12 appeal) shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such Party may be entitled.

7.3 Notices. All notices required to be delivered under this Agreement to the other Party must be in writing and shall be effective (i) on the date of personally delivery by the other Party, by messenger or by courier; (ii) three (3) business days after deposit in the United States mail, registered or certified; (iii) twenty-four (24) hours after deposit before the daily deadline time with a reputable overnight courier or service; or (iv) upon receipt of an email, provided a hard copy of such transmission shall be thereafter delivered in one of the methods described in the foregoing (i) through (iii); in each case postage fully prepaid and addressed to the respective Parties as set forth below or to such other address and to such other persons as the Parties may hereafter designate by written notice to the other Party hereto:

To City: CITY OF REDLANDS
Assistant City Manager
Attn: Chris Boatman
City of Redlands
P.O. Box 3005
Redlands, CA 92373
With copy to: CITY OF REDLANDS
City Attorney
Attn: Yvette M. Abich Garcia
300 E. State Street, Suite 690
Redlands, CA 92373
And: Best Best & Krieger LLP
Attn: Todd M. Gee
500 Capitol Mall, Suite 2500
Sacramento, CA 95814
To Property One: PROPERTY ONE, LLC
P.O. Box 7538
Redlands, CA 92375
Attn: Veronica Burgess
With A Copy To: Legal Dept.

P.O. Box 7538
Redlands, CA 92375
Attn: , Sim Saran, Esq.

7.4 Authority. The person(s) executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which said Party is bound.

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13 7.5 Execution in Counterparts. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all Parties hereto, notwithstanding that all Parties are not signatories to the original or the same counterpart.

7.6 Assignment. Neither Party hereto may assign its rights or delegate its obligations hereunder without the prior written consent of the other Party.

7.7 Third Party Beneficiaries. Nothing in this Agreement shall be construed to confer any rights upon any person or entity not signatory to this Agreement.

7.8 Binding on Heirs. This Agreement shall be binding upon the Parties hereto and their respective heirs, representatives, transferees, successors, and assigns.

7.9 Time of the Essence. Time is of the essence with respect to each of the terms, covenants, and conditions of this Agreement.

7.10 Condemnation and Casualty. In the event either of the Properties are (i) taken, in whole or in part, or designated to be taken by condemnation proceedings other than condemnation proceedings instigated by the City, or proceedings in lieu thereof, or (ii) damaged as a result of any earthquake, hurricane, tornado, flood, sinkhole, landslide, fire, or other casualty, prior to the Close of Escrow, each Party shall have the right to terminate this Agreement and cancel Escrow by delivering to the other Party and Escrow Agent written notice thereof.

7.11 City’s Authority. Property One acknowledges City is entering into this Agreement in its proprietary capacity and not in its regulatory or governmental capacity. Nothing in this Agreement shall be interpreted or construed as restraining, impairing, limiting, impeding or restricting the City of Redlands in its regulatory capacity, or granting any rights upon Property One with respect to the use, occupancy, development, or operation of the City Property in a manner inconsistent with any laws or applicable requirements.

7.12 Entire Agreement, Waivers and Amendments. This Agreement and any written agreement entered into by the Parties with respect to the Properties, incorporate all of the terms and conditions mentioned herein, or incidental hereto, and supersede all negotiations and previous agreements between the Parties with respect to all or part of the subject matter thereof. All waivers of the provisions of this Agreement must be in writing and signed by the appropriate authorities of the Party to be charged. Any amendment or modification to this Agreement must be in writing and executed by both Parties. The City Manager of the City of Redlands, in consultation with the City Attorney, shall determine whether any such amendment or modification requires City Council approval. Amendments and modifications of this Agreement that only extend the time for the Parties to complete actions prior to the Closing Date or extend the Closing Date shall not require City Council approval.

7.13 Exhibits. All exhibits attached to this Agreement are incorporated herein by this reference and made a part hereof. Said Exhibits are identified as follows:
“A” Legal Description of City Property
“B” Legal Description of Property One Property
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14 “C” Form of City Property Grant Deed
“D” Non-Foreign Affidavit
“E” Form of Property One Property Grant Deed
“F” Certificate of Acceptance

7.14 Effect of Recitals. The Recitals above are deemed true and correct, are hereby incorporated into this Section as though fully set forth herein, and the Parties acknowledge and agree that they are each bound by same.

7.15 Section References. Any reference to any section of this Agreement cited without a decimal includes all sections following the cited section. For example, a reference to Section 5 includes Sections 5.1, 5.1(a), etc.

7.16 Severability. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

7.17 Interpretation: Governing Law; Venue. This Agreement shall be construed according to its fair meaning and as if prepared by both Parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect on the Effective Date with venue in San Bernardino County, California.

7.18 Covenants to Survive Escrow. The covenants and agreements contained in this Agreement shall survive the Close of Escrow.

7.19 Conflicts of Interest. No director, officer, official, representative, agent or employee of either Party shall have any financial interest, direct or indirect, in this Agreement.

7.20 Nondiscrimination. There shall be no discrimination by the Parties against any person on account of race, color, religion, sex, marital status, national origin, ancestry, or any other protected class under the Constitution of the State of California or of the United States in the performance of their respective obligations under this Agreement.

7.21 Rights and Remedies are Cumulative. Except as may be otherwise expressly stated in this Agreement, the rights and remedies of the Parties are cumulative, and the exercise by any Party of one or more of its right or remedies shall not preclude the exercise by it, at the same time or at different times, of any other rights or remedies for the same default or any other default by another Party.

7.22 Provisions Required by Law Deemed Inserted. Each and every provision of law and clause required by law to be inserted in this Agreement shall be deemed to be inserted herein and the Agreement shall be read and enforced as though it were included herein, and if through mistake or otherwise, any such provision is not inserted, or is not correctly inserted, then upon application of either Party, the Agreement shall forthwith be physically amended to make such Redlands Regular Meeting of 11-19-24 487 of 1010
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15 insertion or correction. The foregoing shall not be read in a manner which works to strike or modify a negotiated term of this Agreement.

7.23 Cooperation. The Parties acknowledge that it may be necessary to execute documents other than those specifically referred to herein in order to complete the Exchange and/or to accomplish the objectives and requirements that are set out in this Agreement. Both Parties hereby agree to cooperate with each other by executing such other documents or taking such other actions as may be reasonably necessary to complete this transaction in accordance with the intent of the Parties as evidenced in this Agreement and attached Exhibits hereto. [Signatures on Following Page]
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16 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective duly authorized officers, as of the Effective Date.

CITY OF REDLANDS PROPERTY ONE, LLC
a California municipal corporation a California limited liability company BY ITS MANAGER:

JUDSON & BROWN, LLC
a Nevada limited liability company
By: By: Lance Lenhert
Its: Its: Manager
ATTEST:
_____________________
Jeanne Donaldson, City Clerk
APPROVED AS TO FORM:

By:

Yvette M. Abich Garcia, City
Attorney
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17 EXHIBIT A

LEGAL DESCRIPTION OF CITY PROPERTY
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18 EXHIBIT B

LEGAL DESCRIPTION OF PROPERTY ONE PROPERTY
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19 EXHIBIT C

FORM OF CITY PROPERTY GRANT DEED

RECORDING REQUESTED BY
City of Redlands

WHEN RECORDED

AND MAIL TAX STATEMENTS TO
Property One, LLC
Attn: Veronica Burgess
P.O. 7538
Redlands, CA 92375

SPACE ABOVE THIS LINE FOR RECORDER'S USE
APN: 0169-272-27-0000
Grant Deed
The undersigned declare(s):

Documentary transfer tax is $
Computed on full value of property conveyed, or
Computed on full value less value of liens and encumbrances remaining at time of sale.

Unincorporated area City of Redlands, and
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, The CITY OF REDLANDS, a California municipal corporation does hereby grant to
PROPERTY ONE, LLC, a California limited liability company any and all rights, title and interests in and to that certain real property in the City of Redlands, County of San Bernardino, State of California, specifically described in EXHIBIT A and depicted in EXHIBIT B, attached hereto and incorporated herein.

Dated: _______________, 2024 CITY OF REDLANDS, a municipal corporation By: __________________________________
Name: ________________________________
Its: ___________________________________
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20 EXHIBIT “A” TO GRANT DEED

LEGAL DESCRIPTION
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21 EXHIBIT D

NON-FOREIGN AFFIDAVIT
Section 1445 of the Internal Revenue Code provides that the transferee of an interest in real property located in the United States must withhold tax if the transferor is a foreign person.

To inform the _____________________ (“Transferee”), that withholding of tax is not required upon the sale by ____________________ (“Transferor”), of its fee simple interest in that certain real property sold pursuant to the Real Property Exchange Agreement and Joint Escrow Instructions dated ___________________, 2024 (“Agreement”), which real property is described in the legal description attached to the Agreement as Exhibit “A,” and incorporated herein by this reference, the undersigned hereby certifies the following:

1. The Transferor is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and the income tax regulations promulgated thereunder);

2. The Transferor’s United States Taxpayer Identification Number is _________________;

3. The Transferor’s office address is [address]; and

4. The Internal Revenue Service has not issued any notice with respect to Transferor or listed Transferor as a person whose affidavit may not be relied upon for purposes of Section 1445 of the Internal Revenue Code.

The Transferor understands that this certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment or both.

Under penalty of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I am the ___________ of the Transferor, and that I have authority to sign this document on behalf of the Transferor.

Dated: ______________
By:

Its:

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22 EXHIBIT E

FORM OF PROPERTY ONE PROPERTY GRANT DEED

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

CITY OF REDLANDS
Attn: City Clerk
300 E. State Street, Suite 690
Redlands, CA 92373

SPACE ABOVE THIS LINE FOR RECORDER'S USE
APN: 0170-142-12-0000
Grant Deed
This document is being recorded for the benefit of the City of Redlands and is exempt from the payment of a recordation fee pursuant to Govt. Code Section 6103 The undersigned declare(s): This conveyance is exempt from the payment of a documentary transfer tax pursuant to Revenue and Taxation Code Section 11922.

FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, PROPERTY ONE, LLC, a California limited liability company does hereby grant to
The CITY OF REDLANDS, a California municipal corporation any and all rights, title and interests in and to that certain real property in the City of Redlands, County of San Bernardino, State of California, specifically described in EXHIBIT A, attached hereto and incorporated herein.

Dated: _______________, 2024 PROPERTY ONE, LLC, a California limited liability company
By: __________________________________
Name: ________________________________
Its: ___________________________________
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23 EXHIBIT “A” TO GRANT DEED

LEGAL DESCRIPTION
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24 EXHIBIT F

CERTIFICATE OF ACCEPTANCE
(Government Code Section 27281)
This is to certify that the interest in real property conveyed by the Grant Deed dated _______________________, from PROPERTY ONE, LLC, a California limited liability company duly organized and validly existing under the Constitution and the laws of the State of California, to the CITY OF REDLANDS, a California municipal corporation, is hereby accepted by the undersigned officer on behalf of the Grantee pursuant to authority conferred by the California Constitution and City Council action dated ___________, 2024, and the Grantee consents to recordation thereof by its duly authorized officer.

Dated: _______________ CITY OF REDLANDS
_________________________________
ATTEST:

Jeanne Donaldson, City Clerk
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City Council Meeting L. 5.

DATE: 11/19/2024
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of a sole source purchase and Master Agreement with Systems & Software, Inc. for services to upgrade the utility billing and customer data management software for an amount of $737,261, approve an additional appropriation of the same, and authorize the City Manager, or designee, to execute all related documents as well as determine that approval of the Master Agreement with Systems & Software, Inc. is exempt from
environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act (Management Services/Finance Director Garcia)
MOTION(S):

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

I move to determine that approval of the Master Agreement with Systems & Software, Inc. is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act; and

1. I move to approve a sole source purchase and Master Agreement with Systems & Software, Inc. in an amount not to exceed $737,261 to upgrade utility billing and customer data management software from enQuesta Version 5R to enQuesta Version 6, including the Capricorn Portal, Software License, Subscription, Services, Support and Maintenance and Hosting Services Agreement; and

2. I move that the City Council approve an additional appropriation of $737,261; and

3. I move that City Council authorize the City Manager, or designee, to execute all related documents.

4. Redlands Regular Meeting of 11-19-24 501 of 1010
RECOMMENDATION:

Staff recommends that the City Council approve a sole source purchase and master agreement with Systems & Software, Inc. (“S&S”) to upgrade to enQuesta Version 6 for the EnQuesta Utility Database for Customer Management and Billing for an amount of $737,261 and an additional appropriation for the same, and to authorize the City Manager, or designer, to execute all related documents as well as determine that approval of the Master Agreement with Systems & Software, Inc. is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act.

DISCUSSION:

Since 2004, the City has used the enQuesta Utility Database and Customer Management software from Systems & Software (S&S). Version upgrades were performed in 2008 and 2015. The EnQuesta system provides utility billing, collections and cash receipting functionality for the Customer Service and Revenue Division, in addition to managing approximately 25,000 active customer accounts for water, wastewater, solid waste, household hazardous waste and street cleaning fees. This system is not only vital for the accurate and timely production of 132,000 utility bills annually, it is also critical to the operational efficiency and integrity of the records contained therein.

There are evolving requirements for software enhancements, improvements to features, security and integrity of data. The upgrade completed in 2015 included the enhanced features needed for City operations at that time. With that being over 9 years ago, enhancements are unavailable in the current version in use (Version 5R or v5R). Moving to Version 6, or v6, will bring new features and functionality along with addressing software issues, cybersecurity and the need for a better customer self-service portal. It will also resolve critical on-premises disk storage space that is close to reaching its maximum capacity. Included in the upgrade engagement to v6 is the transfer of all utility billing, customer and rate data, custom reports and any custom software modifications that have been previously developed in earlier versions / implementations of enQuesta. Also, a part of the implementation is full data conversion and verification of all enQuesta v5R data to v6 along with 16 hours of end user training for Customer Service and/or IT staff to support this new installation of enQuesta v6.

Even the greatest architecture of v5R cannot support the complex IT challenges that exist today. Cyber threats are becoming more prevalent, and hackers are becoming much more sophisticated. Customer Information and Utility Billing Systems must be robust and highly secure. EnQuesta v6 was designed from the ground up with security as a top priority. To support this architecture, Systems & Software partnered with vendor solutions from VMware, Red Hat, Oracle, Java, and Apache using their latest supported solutions to power v6. As part of the v6 Redlands Regular Meeting of 11-19-24 502 of 1010
upgrade with the City, at no additional cost, S&S is including the professional services stated under the Hosting Service Agreement to migrate the City's on-premise data to the S&S Oracle Cloud. Additionally, S&S will store ninety (90) days of backup data.

The Capricorn Customer Portal is a comprehensive web platform designed to provide convenient services and increase overall customer engagement. With a responsive design platform, customers can access the portal from any device (i.e.: laptop, tablet, smartphone, etc.) which drives overall customer adoption.

The City currently utilizes the RedConnect platform, which will be replaced by Capricorn and provide customers with a more user-friendly experience. This project upgrade is slated for approximately 6 months in duration.

Furthermore, approval of the Master Agreement with Systems & Software, Inc. is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act (CEQA) as the activity will not have a significant effect on the environment.

ALTERNATIVES:

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

STRATEGIC PLAN:

Not Applicable
SUBMITTED BY:

Danielle Garcia, Management Services/Finance Director
RECOMMENDED BY:

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

Albert Maldonado, Special Counsel
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Dana Abramovitz-Daniel, Procurement Manager
PREPARED BY:

Aimee Hoover, Revenue Manager
Redlands Regular Meeting of 11-19-24 503 of 1010
Fiscal Impact
Fiscal Year: FY 2025
Revenue Generating: No
Appropriation Required Y/N: Yes
Amount: $737,261
Budgeted Y/N: N
Account No.: 608900
Discussion:

The total cost of this upgrade is $737,261 and staff recommends that an additional appropriation for this purchase be made from the Utility Billing Fund (608). In reviewing the budget and 2-year funding plan for Fund 608, there is sufficient cash to cover this expense and meet all other budgeted obligations.

The unassigned cash in this fund is estimated at $2.3 million as of June 30, 2024. Required funding for software maintenance in subsequent fiscal years will be included in the department's budget request.

Redlands Regular Meeting of 11-19-24 504 of 1010
Attachments
Additional Appropriations
Master Service Agreement
Attachment A - Detailed Pricing
Schedule B.0 Statement of Work
Schedule B.1 Capricorn Statement of Work
Schedule C. Standard Maintenance and Support Guidelines Support and Maintenance Quote 2025-2029
Schedule D
Redlands Regular Meeting of 11-19-24 505 of 1010
DATE OF REQUEST:

An additional appropriation is hereby requested as follows:

Department:

JUSTIFICATION:

Requested By:

Recommended By Finance Director: Recommended:

Yes No Signed
Comments: Approved by City Council:

Date:

Signed:

City Clerk
REVENUE APPROPRIATION INCREASE (if applicable)
EXPENDITURE APPROPRIATION INCREASE (if applicable)
$ -
$ -
TRANSACTION NO:

ACCOUNTING PERIOD:

Account Description Orgkey Object Code Job Ledger (If
applicable) Amount
Job Ledger (If
applicable) Account Description Orgkey Object Code Amount Department Head
City Manager

CITY OF REDLANDS

REQUEST FOR ADDITIONAL APPROPRIATION

FINANCE USE ONLY

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Redlands City CouncilNovember 19, 2024

Redlands City Council
November 19, 2024