Landscape Maintenance District Fund - This fund is used to account for assessments collected from landowners to maintain landscaping in parkways and common areas within the district.
Local Transportation Fund - This fund is used to account for the receipt and expenditure of street improvement and road construction funds from various sources includin
g projects financed by State grant activity.
Pavement Accelerated Repair Implementation Strategy (PARIS) Fund - This fund is used to account for the expenditures of the Pavement Accelerated Repair Implementation Strategy (PARIS) program.
Public Art Fund - This fund is used to account for donations and subsequent expenditure on public art installations.
Transportation Development Act Fund - This fund is used to account for the receipt and expenditure of Transportation Development Act revenue received by the City.
Public Facilities Development Special Revenue Fund - This fund accounts for the collection and related expenditure of development impact fees restricted for constructing new and upgrading existing public facilities.
Storm Drain Construction Fund - This fund is used to account for receipt and subsequent expenditure of developer fees assessed to provide additional storm drains, as required.
Capital Projects Funds:
Safety Hall Replacement Fund - This fund accounts for the collection and related expenditure of development impact fees restricted for constructing new and upgrading existing public facilities.
Debt Service Funds:
General Debt Service Fund - This fund is used to account for the receipt of property taxes to be used for the retirement of the 2007 Pension Obligation Bonds.
Permanent Funds:
Simonds Endowment Fund - This fund is used to account for the monies endowed by Priscilla Alden Simonds to the City for the Simonds Parkway.
Pauline Stancliff Memorial Trust Fund - This fund is used to account for the monies gifted by Pauline Stancliff to the City for benefit of the Joslyn Senior Center.
Non-Major Governmental Funds (Continued)
141
This page intentionally left blank.
142
Household
Emergency Hazardous State Air Quality Traffic
Service Waste Gas Tax Improvement Safety
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 278,023$ 318,654$ -$ 304,295$ -$ Restricted cash and investments - - - - - Accounts receivable, net - 12,860 - - - Taxes receivable 12,802 - 499,635 - - Due from other governments - - - 24,214 16,786 Prepaid items 1,182 - - - - Total assets 292,007$ 331,514$ 499,635$ 328,509$ 16,786$
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities:
Accounts payable 40,445$ -$ -$ -$ 2,044$ Accrued payroll 251,562 - - - - Deposits payable - - - - - Unearned revenues - - - - - Due to other funds - - - - - Total liabilities 292,007 - - - 2,044 Deferred inflows of resources:
Unavailable revenue - - - 24,214 - Total deferred inflows
of resources - - - 24,214 - Fund Balances:
Nonspendable 1,182
- - - - Restricted - 331,514 499,635 304,295 14,742 Assigned - - - - - Unassigned (deficit) (1,182) - - - - Total fund balances - 331,514 499,635 304,295 14,742 Total liabilities, deferred
inflows of resources,
and fund balances 292,007$ 331,514$ 499,635$ 328,509$ 16,786$ (Continued)
Special Revenue Funds
Combining Balance Sheet
Non-Major Governmental Funds
For the Year Ended June 30, 2024
City of Redlands
143
Downtown
Redlands Parking Asset
Measure I Open Space Business Area Authority Forfeiture Fund Fund Fund Fund Fund
ASSETS
Cash and investments -$ 2,568,209$ 14,846$ 14,477$ 1,908,785$ Restricted cash and investments - - - - - Accounts receivable, net - - 150 280 - Taxes receivable 475,291 - - - - Due from other governments - - - - 3,430 Prepaid items - - - - - Total assets 475,291$ 2,568,209$ 14,996$ 14,757$ 1,912,215$
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ 14,996$ 1,827$ -$ Accrued payroll - - - - - Deposits payable - - - 12,650 10,487 Unearned revenues - - - 280 - Due to other funds - - - - - Total liabilities - - 14,996 14,757 10,487 Deferred inflows of resources:
Unavailable revenue - - - - - Total deferred inflows
of resources - - - - - Fund Balances:
Nonspendable -
- - - - Restricted 475,291 2,568,209 - - 1,901,728 Assigned - - - - - Unassigned (deficit) - - - - - Total fund balances 475,291 2,568,209 - - 1,901,728 Total liabilities, deferred
inflows of resources,
and fund balances 475,291$ 2,568,209$ 14,996$ 14,757$ 1,912,215$ (Continued)
Special Revenue Funds
Non-Major Governmental Funds
For the Year Ended June 30, 2024
City of Redlands
Combining Balance Sheet (Continued)
144
Supplemental
Law Enforcement Park and Arterial Street Traffic Freeway Grant Open Space Construction Signals Interchanges
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 698,733$ 2,649,005$ 5,035,393$ 1,121,787$ 2,240,697$ Restricted cash and investments - - - - - Accounts receivable, net - - - - - Taxes receivable - - - - - Due from other governments - - - - - Prepaid items 13,499 - - - - Total assets 712,232$ 2,649,005$ 5,035,393$ 1,121,787$ 2,240,697$
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities:
Accounts payable 17,999$ -$ 22,403$ -$ -$ Accrued payroll 5,067 - - - - Deposits payable - - 28,554 368,482 - Unearned revenues 571,251 - - - - Due to other funds - - - - - Total liabilities 594,317 - 50,957 368,482 - Deferred inflows of resources:
Unavailable revenue - - - - - Total deferred inflows
of resources - - - - - Fund Balances:
Nonspendable 13,499
- - - - Restricted 104,416 2,649,005 4,984,436 753,305 2,240,697 Assigned - - - - - Unassigned (deficit) - - - - - Total fund balances 117,915 2,649,005 4,984,436 753,305 2,240,697 Total liabilities, deferred
inflows of resources,
and fund balances 712,232$ 2,649,005$ 5,035,393$ 1,121,787$ 2,240,697$ (Continued)
Special Revenue Funds
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
For the Year Ended June 30, 2024
City of Redlands
145
Street Landscape
Lighting CFD 2004-1 Maintenance Local
District #1 Assessment District Transportation PARIS
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 42,381$ 152,499$ 715$ 239,107$ 3,586,413$ Restricted cash and investments - - - - - Accounts receivable, net - - - - - Taxes receivable 567 8,113 - - - Due from other governments - - - - - Prepaid items - - - - - Total assets 42,948$ 160,612$ 715$ 239,107$ 3,586,413$
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities:
Accounts payable 146$ 49,835$ 217$ -$ 961,399$ Accrued payroll 1,206 6,506 498 - 19,986 Deposits payable - 23,987 - 35,074 27,327 Unearned revenues - - - - - Due to other funds - - - - - Total liabilities 1,352 80,328 715 35,074 1,008,712 Deferred inflows of resources:
Unavailable revenue - - - - - Total deferred inflows
of resources - - - - - Fund Balances:
Nonspendable -
- - - - Restricted 41,596 80,284 - 204,033 2,577,701 Assigned - - - - - Unassigned (deficit) - - - - - Total fund balances 41,596 80,284 - 204,033 2,577,701 Total liabilities, deferred
inflows of resources,
and fund balances 42,948$ 160,612$ 715$ 239,107$ 3,586,413$ (Continued)
Special Revenue Funds
Combining Balance Sheet (Continued)
Non-Major Governmental Funds
For the Year Ended June 30, 2024
City of Redlands
146
Capital Projects
Funds
Transportation Public Facilities Safety Hall
Development Development Storm Replacement
Public Art Act Special Revenue Drain Capital Projects
Fund Fund Fund Fund Fund
ASSETS
Cash and investments 9,867 $ - $ 1,928,937$ 2,764,922 $ 2,223,985 $ Restricted cash and investments - - - - - Accounts receivable, net - - - - - Taxes receivable - - - - - Due from other governments - 9,256 - - - Prepaid items - - - - - Total assets 9,867$ 9,256 $ 1,928,937$ 2,764,922 $ 2,223,985 $
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities:
Accounts payable - $ - $ - $ - $ 46,673$ Accrued payroll - - - - - Deposits payable - - - - - Unearned revenues - - - - - Due to other funds - 9,164 - - - Total liabilities - 9,164 - - 46,673 Deferred inflows of resources:
Unavailable revenue - 9,256 - - - Total deferred inflows
of resources - 9,256 - - - Fund Balances:
Nonspendable - - - - - Restricted 9,867 - 1,928,937 2,764,922 - Assigned - - - - 2,177,312 Unassigned (deficit) - (9,164) - - - Total fund balances 9,867 (9,164) 1,928,937 2,764,922 2,177,312 Total liabilities, deferred
inflows of resources,
and fund balances 9,867$ 9,256$ 1,928,937$ 2,764,922$ 2,223,985$ (Continued)
Combining Balance Sheet (Continued)
City of Redlands
Non-Major Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
147
Debt Service
Funds
Pauline Total
General Simonds Stancliff Non-Major
Debt Service Endowment Memorial Governmental
Fund Fund Trust Fund Funds
ASSETS
Cash and investments 339,462$ 39,272$ 23,213$ 28,503,677$ Restricted cash and investments 237,153 - - 237,153 Accounts receivable, net - - - 13,290 Taxes receivable 2,652 - - 999,060 Due from other governments - - - 53,686 Prepaid items - - - 14,681 Total assets 579,267$ 39,272$ 23,213$ 29,821,547$
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ -$ 1,157,984$ Accrued payroll - - - 284,825 Deposits payable - - - 506,561 Unearned revenues - - - 571,531 Due to other funds - - - 9,164 Total liabilities - - - 2,530,065 Deferred inflows of resources:
Unavailable revenue - - - 33,470 Total deferred inflows
of resources - - - 33,470 Fund Balances:
Nonspendable - 10,000 20,200 44,881 Restricted 579,267 29,272 3,013 25,046,165 Assigned - - - 2,177,312
Unassigned (deficit) - - - (10,346) Total fund balances 579,267 39,272 23,213 27,258,012 Total liabilities, deferred
inflows of resources,
and fund balances 579,267$ 39,272$ 23,213$ 29,821,547$ (Concluded)
Combining Balance Sheet (Continued)
City of Redlands
For the Year Ended June 30, 2024
Non-Major Governmental Funds
Permanent Funds
148
Household
Emergency Hazardous State Air Quality Traffic
Service Waste Gas Tax Improvement Safety
Fund Fund Fund Fund Fund
REVENUES:
Property taxes 1,140,928$ -$ -$ -$ -$ Fines and forfeitures - - - - 158,971 Intergovernmental - - 3,871,223 72,597 - Charges for services - 164,831 - - - Investment income (loss) - - - 21,773 - Rents and leases - - - - - Miscellaneous 7,797 2,800 - - - Total revenues 1,148,725 167,631 3,871,223 94,370 158,971 EXPENDITURES:
Current:
General government - - - - - Public safety 5,334,723 145,314 - - - Culture and recreation - - - - - Highway and streets - - - 798 - Capital outlay - - - - - Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 5,334,723 145,314 - 798 -
REVENUES OVER
(UNDER) EXPENDITURES (4,185,998) 22,317 3,871,223 93,572 158,971 OTHER FINANCING SOURCES (USES):
Transfers in 4,185,998 - - - - Transfers out - - (3,818,017) - (155,962) Total other financing sources (uses) 4,185,998 - (3,818,017) - (155,962) NET CHANGES IN FUND BALANCES - 22,317 53,206 93,572 3,009 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported - 309,197 446,429 210,723 11,733 Change with financial reporting entity
(major to non major fund) - - - - - Beginning of year, as restated - 309,197 446,429 210,723 11,733 End of year -$ 331,514$ 499,635$ 304,295$ 14,742$ (Continued)
Special Revenue Funds
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances Non-Major Governmental Funds
For the Year Ended June 30, 2024
149
Downtown
Redlands Parking Asset
Measure I Open Space Business Area Authority Forfeiture Fund Fund Fund Fund Fund
REVENUES:
Property taxes -$ -$ -$ -$ -$ Fines and forfeitures - - - - 331,870 Intergovernmental 2,057,010 - - - - Charges for services - 203,170 5,040 - - Investment income (loss) 99,074 107,216 (3,461) 943 42,470 Rents and leases - - - 5,008 - Miscellaneous - - 30,631 - 24,480 Total revenues 2,156,084 310,386 32,210 5,951 398,820 EXPENDITURES:
Current:
General government - - 135,516 25,462 - Public safety - - - - 94,212 Culture and recreation - 4,064 - - - Highway and streets 16,527 - - - - Capital outlay - - - - 14,005 Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 16,527 4,064 135,516 25,462 108,217
REVENUES OVER
(UNDER) EXPENDITURES 2,139,557 306,322 (103,306) (19,511) 290,603 OTHER FINANCING SOURCES (USES):
Transfers in - - 103,306 18,653 - Transfers out (3,733,391) - - - - Total other financing sources (uses) (3,733,391) - 103,306 18,653 - NET CHANGES IN FUND BALANCES (1,593,834) 306,322 - (858) 290,603 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 2,069,125 2,261,887 - 858 1,611,125 Change with financial reporting entity
(major to non major fund) - - - - - Beginning of year, as restated 2,069,125 2,261,887 - 858 1,611,125 End of year 475,291$ 2,568,209$ -$ -$ 1,901,728$ (Continued)
Non-Major Governmental Funds
For the Year Ended June 30, 2024
Special Revenue Funds
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 150
Supplemental
Law Enforcement Park and Arterial Street Traffic Freeway Grant Open Space Construction Signals Interchanges
Fund Fund Fund Fund Fund
REVENUES:
Property taxes - $ - $ - $ - $ - $ Fines and forfeitures - - - - - Intergovernmental 34,958 - - - 449,374 Charges for services - 641,425 317,961 19,474 188,628 Investment income (loss) 25,443 90,808 226,237 71,810 96,238 Rents and leases - - - - - Miscellaneous 82 - - - - Total revenues 60,483 732,233 544,198 91,284 734,240 EXPENDITURES:
Current:
General government - - - - - Public safety 34,958 - - - - Culture and recreation - 16,291 - - - Highway and streets - - 39,555 389 18,437 Capital outlay - - 130,908 267,702 530,499 Debt service:
Principal - 66,882 - - - Interest and fiscal charges - 35,312 - - - Total expenditures 34,958 118,485 170,463 268,091 548,936
REVENUES OVER
(UNDER) EXPENDITURES 25,525 613,748 373,735 (176,807) 185,304 OTHER FINANCING SOURCES (USES):
Transfers in - - - - - Transfers out - - - - - Total other financing sources (uses) - - - - - NET CHANGES IN FUND BALANCES 25,525 613,748 373,735 (176,807) 185,304 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 92,390 2,035,257 4,610,701 930,112 2,055,393 Change with financial reporting entity
(major to non major fund) - - - - - Beginning of year, as restated 92,390 2,035,257 4,610,701 930,112 2,055,393 End of year 117,915$ 2,649,005$ 4,984,436$ 753,305$ 2,240,697$ (Continued)
Special Revenue Funds
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Non-Major Governmental Funds
For the Year Ended June 30, 2024
151
Street Landscape
Lighting CFD 2004-1 Maintenance Local
District #1 Assessment District Transportation PARIS
Fund Fund Fund Fund Fund
REVENUES:
Property taxes -$ -$ -$ -$ -$ Fines and forfeitures - - - - - Intergovernmental - - - - - Charges for services 25,073 692,256 28,457 - - Investment income (loss) - 9,026 - 11,130 206,462 Rents and leases - - - - - Miscellaneous - 6,013 - - 24,448 Total revenues 25,073 707,295 28,457 11,130 230,910 EXPENDITURES:
Current:
General government - 599,515 34,657 - - Public safety - - - - - Culture and recreation - - - - - Highway and streets 23,355 - - - 1,617,718 Capital outlay - - - - 7,357,089 Debt service:
Principal - - - - - Interest and fiscal charges - - - - - Total expenditures 23,355 599,515 34,657 - 8,974,807
REVENUES OVER
(UNDER) EXPENDITURES 1,718 107,780 (6,200) 11,130 (8,743,897) OTHER FINANCING SOURCES (USES):
Transfers in - - 6,200 - 7,575,694 Transfers out - (130,760) - - - Total other financing sources (uses) - (130,760) 6,200 - 7,575,694 NET CHANGES IN FUND BALANCES 1,718 (22,980) - 11,130 (1,168,203) FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 39,878 103,264 - 192,903 3,745,904 Change with financial reporting entity
(major to non major fund) - - - - - Beginning of year, as restated 39,878 103,264 - 192,903 3,745,904 End of year 41,596$ 80,284$ -$ 204,033$ 2,577,701$ (Continued)
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Special Revenue Funds
For the Year Ended June 30, 2024
Non-Major Governmental Funds
152
Capital Projects
Funds
Transportation Public Facilities Safety Hall
Development Development Storm Replacement
Public Art Act Special Revenue Drain Capital Projects
Fund Fund Fund Fund Fund
REVENUES:
Property taxes - $ - $ - $ - $ - $ Fines and forfeitures - - - - - Intergovernmental - 671,581 - - - Charges for services - - 409,077 139,468 - Investment income (loss) 456 - - 123,767 120,778 Rents and leases - - - - - Miscellaneous - - - - - Total revenues 456 671,581 409,077 263,235 120,778 EXPENDITURES:
Current:
General government - - 8,181 43,634 120,846 Public safety - - - - - Culture and recreation - - - - - Highway and streets - - - - - Capital outlay - - - - 405,725 Debt service:
Principal - - - - - Interest and fiscal charges - - 661 - - Total expenditures - -
8,842 43,634 526,571
REVENUES OVER
(UNDER) EXPENDITURES 456 671,581 400,235 219,601 (405,793) OTHER FINANCING SOURCES (USES):
Transfers in - - 7,690,541 - 257,547 Transfers out - - - - - Total other financing sources (uses) - - 7,690,541 - 257,547 NET CHANGES IN FUND BALANCES 456 671,581 8,090,776 219,601 (148,246) FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 9,411 (680,745) - 2,545,321 2,325,558 Change with financial reporting entity
(major to non major fund) - - (6,161,839) - - Beginning of year, as restated 9,411 (680,745) (6,161,839) 2,545,321 2,325,558 End of year 9,867$ (9,164)$ 1,928,937$ 2,764,922$ 2,177,312$ (Continued)
Non-Major Governmental Funds
Special Revenue Funds
For the Year Ended June 30, 2024
City of Redlands
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) 153
Debt Service
Funds
Pauline Total
General Simonds Stancliff Non-Major
Debt Service Endowment Memorial Governmental
Fund Fund Trust Fund Funds
REVENUES:
Property taxes 29,039 $ - $ - $ 1,169,967$ Fines and forfeitures - - - 490,841 Intergovernmental - - - 7,156,743 Charges for services - - - 2,834,860 Investment income (loss) 14,382 1,817 1,075 1,267,444 Rents and leases - - - 5,008 Miscellaneous - - - 96,251 Total revenues 43,421 1,817 1,075 13,021,114 EXPENDITURES:
Current:
General government 3,459 - - 971,270 Public safety - - - 5,609,207 Culture and recreation - - - 20,355 Highway and streets - - - 1,716,779 Capital outlay - - - 8,705,928 Debt service:
Principal 185,000 - - 251,882 Interest and fiscal charges 207,455 - - 243,428 Total expenditures 395,914 - - 17,518,849
REVENUES OVER
(UNDER) EXPENDITURES (352,493) 1,817 1,075 (4,497,735) OTHER FINANCING SOURCES (USES):
Transfers in 372,251 -
- 20,210,190
Transfers out - - - (7,838,130) Total other financing sources (uses) 372,251 - - 12,372,060 NET CHANGES IN FUND BALANCES 19,758 1,817 1,075 7,874,325 FUND BALANCES (DEFICIT):
Beginning of year, as previously reported 559,509 37,455 22,138 25,545,526 Change with financial reporting entity
(major to non major fund) - - - (6,161,839) Beginning of year, as restated 559,509 37,455 22,138 19,383,687 End of year 579,267$ 39,272$ 23,213$ 27,258,012$ (Concluded)
Permanent Funds
For the Year Ended June 30, 2024
Non-Major Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) City of Redlands
154
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Property taxes 1,100,000$ 1,100,000$ 1,140,928$ 40,928$ Charges for services 30,000 - - - Miscellaneous 5,500 1,000 7,797 6,797 Total revenues 1,135,500 1,101,000 1,148,725 47,725 EXPENDITURES:
Current:
Public safety 6,461,946 5,576,506 5,334,723 241,783 Total expenditures 6,461,946 5,576,506 5,334,723 241,783 REVENUES OVER (UNDER) EXPENDITURES (5,326,446) (4,475,506) (4,185,998) 289,508 OTHER FINANCING SOURCES (USES):
Transfers in 5,326,446 4,479,435 4,185,998 (293,437) Total other financing sources (uses) 5,326,446 4,479,435 4,185,998 (293,437) Net change in fund balance -$ 3,929$ - (3,929)$ FUND BALANCE:
Beginning of year -
End of year -$
City of Redlands
Budgetary Comparison Schedule
Emergency Service Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
155
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 100,000$ 100,000$ 164,831$ 64,831$ Miscellaneous - - 2,800 2,800 Total revenues 100,000 100,000 167,631 67,631 EXPENDITURES:
Current:
Public safety 148,032 146,593 145,314 1,279 Total expenditures 148,032 146,593 145,314 1,279 Net change in fund balance (48,032)$ (46,593)$ 22,317 68,910$ FUND BALANCE:
Beginning of year 309,197
End of year 331,514$
City of Redlands
Budgetary Comparison Schedule
Household Hazardous Waste Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
156
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental 3,370,546$ 3,715,923$ 3,871,223$ 155,300$ Total revenues 3,370,546 3,715,923 3,871,223 155,300 OTHER FINANCING SOURCES (USES):
Transfers out (3,370,546) (3,715,923) (3,818,017) (102,094) Total other financing sources (uses) (3,370,546) (3,715,923) (3,818,017) (102,094) Net change in fund balance -$ -$ 53,206 53,206$ FUND BALANCE:
Beginning of year 446,429
End of year 499,635$
City of Redlands
Budgetary Comparison Schedule
State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
157
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental 89,000$ 92,000$ 72,597$ (19,403)$ Investment income (loss) - 23,788 21,773 (2,015) Total revenues 89,000 115,788 94,370 (21,418) EXPENDITURES:
Current:
Highway and streets 458 122,440 798 121,642 Capital outlay - 50,000 - 50,000 Total expenditures 458 172,440 798 171,642 Net change in fund balance 88,542$ (56,652)$ 93,572 150,224$ FUND BALANCE:
Beginning of year 210,723
End of year 304,295$
City of Redlands
Budgetary Comparison Schedule
Air Quality Improvement Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
158
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Fines and forfeitures 202,000$ 132,500$ 158,971$ 26,471$ Total revenues 202,000 132,500 158,971 26,471 OTHER FINANCING SOURCES (USES):
Transfers out (202,000) (132,500) (155,962) (23,462) Total other financing sources (uses) (202,000) (132,500) (155,962) (23,462) Net change in fund balance -$ -$ 3,009 3,009$ FUND BALANCE:
Beginning of year 11,733
End of year 14,742$
City of Redlands
Budgetary Comparison Schedule
Traffic Safety Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
159
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental 1,837,360$ 1,837,360$ 2,057,010$ 219,650$ Investment income (loss) - 165,000 99,074 (65,926) Total revenues 1,837,360 2,002,360 2,156,084 153,724 EXPENDITURES:
Current:
Highway and streets 16,527 16,527 16,527 - Total expenditures 16,527 16,527 16,527 - OTHER FINANCING SOURCES (USES):
Transfers out (1,820,833) (4,054,958) (3,733,391) 321,567 Total other financing sources (uses) (1,820,833) (4,054,958) (3,733,391) 321,567 Net change in fund balance -$ (2,069,125)$ (1,593,834) 475,291$ FUND BALANCE:
Beginning of year 2,069,125
End of year 475,291$
City of Redlands
Budgetary Comparison Schedule
Measure I Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
160
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 500,000$ 54,469$ 203,170$ 148,701$ Investment income (loss) - 122,241 107,216 (15,025) Total revenues 500,000 176,710 310,386 133,676 EXPENDITURES:
Current:
Culture and recreation - 1,089 4,064 (2,975) Total expenditures - 1,089 4,064 (2,975) Net change in fund balance 500,000$ 175,621$ 306,322 130,701$ FUND BALANCE:
Beginning of year 2,261,887
End of year 2,568,209$
City of Redlands
Budgetary Comparison Schedule
Open Space Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
161
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 154,000$ 2,806$ 5,040$ 2,234$ Investment income (loss) - (4,129) (3,461) 668 Miscellaneous - 18,973 30,631 11,658 Total revenues 154,000 17,650 32,210 14,560 EXPENDITURES:
Current:
General government 155,262 144,842 135,516 9,326 Total expenditures 155,262 144,842 135,516 9,326 REVENUES OVER (UNDER) EXPENDITURES (1,262) (127,192) (103,306) 23,886 OTHER FINANCING SOURCES (USES):
Transfers in - 127,192 103,306 (23,886) Total other financing sources (uses) - 127,192 103,306 (23,886) Net change in fund balance (1,262)$ -$ - -$ FUND BALANCE:
Beginning of year -
End of year -$
City of Redlands
Budgetary Comparison Schedule
Downtown Redlands Business Area Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
162
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income (loss) -$ -$ 943$ 943$ Rents and leases 11,500 8,000 5,008 (2,992) Total revenues 11,500 8,000 5,951 (2,049) EXPENDITURES:
Current:
General government 24,299 24,299 25,462 (1,163) Total expenditures 24,299 24,299 25,462 (1,163) REVENUES OVER (UNDER) EXPENDITURES (12,799) (16,299) (19,511) (3,212) OTHER FINANCING SOURCES (USES):
Transfers in 12,799 17,080 18,653 1,573 Total other financing sources (uses) 12,799 17,080 18,653 1,573 Net change in fund balance -$ 781$ (858) (1,639)$ FUND BALANCE:
Beginning of year 858
End of year -$
City of Redlands
Budgetary Comparison Schedule
Parking Authority Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
163
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Fines and forfeitures 113,600$ 331,995$ 331,870$ (125)$ Investment income (loss) 6,000 19,019 42,470 23,451 Miscellaneous - - 24,480 24,480 Total revenues 119,600 351,014 398,820 47,806 EXPENDITURES:
Current:
Public safety 158,582 203,987 94,212 109,775 Capital outlay - 14,005 14,005 - Total expenditures 158,582 217,992 108,217 109,775 Net change in fund balance (38,982)$ 133,022$ 290,603 157,581$ FUND BALANCE:
Beginning of year 1,611,125
End of year 1,901,728$
City of Redlands
Budgetary Comparison Schedule
Asset Forfeiture Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
164
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental 225,000$ 225,000$ 34,958$ (190,042)$ Investment income (loss) 1,500 29,245 25,443 (3,802) Miscellaneous - - 82 82 Total revenues 226,500 254,245 60,483 (193,762) EXPENDITURES:
Current:
Public safety 239,405 135,000 34,958 100,042 Capital outlay 75,000 - - - Total expenditures 314,405 135,000 34,958 100,042 Net change in fund balance (87,905)$ 119,245$ 25,525 (93,720)$ FUND BALANCE:
Beginning of year 92,390
End of year 117,915$
City of Redlands
Budgetary Comparison Schedule
Supplemental Law Enforcement Grant Special Revenue Fund For the Year Ended June 30, 2024
Budgeted Amounts
165
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 1,500,000$ 303,509$ 641,425$ 337,916$ Investment income (loss) - 109,736 90,808 (18,928) Total revenues 1,500,000 413,245 732,233 318,988 EXPENDITURES:
Current:
Culture and recreation 3,463 9,533 16,291 (6,758) Debt service:
Principal 66,882 66,882 66,882 - Interest and fiscal charges 35,312 35,312 35,312 - Total expenditures 105,657 111,727 118,485 (6,758) Net change in fund balance 1,394,343$ 301,518$ 613,748 312,230$ FUND BALANCE:
Beginning of year 2,035,257
End of year 2,649,005$
City of Redlands
Budgetary Comparison Schedule
Park and Open Space Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
166
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 817,000$ 294,683$ 317,961$ 23,278$ Investment income (loss) 14,000 252,726 226,237 (26,489) Total revenues 831,000 547,409 544,198 (3,211) EXPENDITURES:
Current:
Highway and streets 150,000 257,867 39,555 218,312 Capital outlay 800,000 - 130,908 (130,908) Total expenditures 950,000 257,867 170,463 87,404 Net change in fund balance (119,000)$ 289,542$ 373,735 84,193$ FUND BALANCE:
Beginning of year 4,610,701
End of year 4,984,436$
City of Redlands
Budgetary Comparison Schedule
Arterial Street Construction Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
167
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 88,000$ 14,000$ 19,474$ 5,474$ Investment income (loss) 4,500 77,750 71,810 (5,940) Total revenues 92,500 91,750 91,284 (466) EXPENDITURES:
Current:
Highway and streets 100,000 161,950 389 161,561 Capital outlay - 267,702 267,702 - Total expenditures 100,000 429,652 268,091 161,561 REVENUES OVER (UNDER) EXPENDITURES (7,500) (337,902) (176,807) 161,095 Net change in fund balance (7,500)$ (337,902)$ (176,807) 161,095$ FUND BALANCE:
Beginning of year 930,112
End of year 753,305$
City of Redlands
Budgetary Comparison Schedule
Traffic Signals Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
168
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental -$ 324,720$ 449,374$ 124,654$ Charges for services 518,000 140,000 188,628 48,628 Investment income (loss) 8,500 110,406 96,238 (14,168) Total revenues 526,500 575,126 734,240 159,114 EXPENDITURES:
Current:
Highway and streets - 78,690 18,437 60,253 Capital outlay - 1,580,063 530,499 1,049,564 Total expenditures - 1,658,753 548,936 1,109,817 Net change in fund balance 526,500$ (1,083,627)$ 185,304 1,268,931$ FUND BALANCE:
Beginning of year 2,055,393
End of year 2,240,697$
City of Redlands
Budgetary Comparison Schedule
Freeway Interchanges Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
169
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 25,000$ 24,097$ 25,073$ 976$ Total revenues 25,000 24,097 25,073 976 EXPENDITURES:
Current:
Highway and streets 21,766 23,322 23,355 (33) Total expenditures 21,766 23,322 23,355 (33) Net change in fund balance 3,234$ 775$ 1,718 943$ FUND BALANCE:
Beginning of year 39,878
End of year 41,596$
City of Redlands
Budgetary Comparison Schedule
Street Lighting District #1 Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
170
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 600,000$ 662,149$ 692,256$ 30,107$ Investment income (loss) 1,000 12,504 9,026 (3,478) Miscellaneous - - 6,013 6,013 Total revenues 601,000 674,653 707,295 32,642 EXPENDITURES:
Current:
General government 443,768 636,915 599,515 37,400 Highway and streets 15,000 - - - Total expenditures 458,768 636,915 599,515 37,400 REVENUES OVER (UNDER) EXPENDITURES 142,232 37,738 107,780 70,042 OTHER FINANCING SOURCES (USES):
Transfers out (128,596) (134,122) (130,760) 3,362 Total other financing sources (uses) (128,596) (134,122) (130,760) 3,362 Net change in fund balance 13,636$ (96,384)$ (22,980) 73,404$ FUND BALANCE:
Beginning of year 103,264
End of year 80,284$
City of Redlands
Budgetary Comparison Schedule
CFD 2004-1 Assessment Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
171
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 29,000$ 29,000$ 28,457$ (543)$ Total revenues 29,000 29,000 28,457 (543) EXPENDITURES:
Current:
General government 50,839 45,048 34,657 10,391 Total expenditures 50,839 45,048 34,657 10,391 REVENUES OVER (UNDER) EXPENDITURES (21,839) (16,048) (6,200) 9,848 OTHER FINANCING SOURCES (USES):
Transfers in 21,839 16,048 6,200 (9,848) Total other financing sources (uses) 21,839 16,048 6,200 (9,848) Net change in fund balance -$ -$ - -$ FUND BALANCE:
Beginning of year -
End of year -$
City of Redlands
Budgetary Comparison Schedule
Landscape Maintenance District Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
172
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income (loss) -$ -$ 11,130$ 11,130$ Miscellaneous - 44,000 - (44,000) Total revenues - 44,000 11,130 (32,870) EXPENDITURES:
Current:
Highway and streets - 107,571 - 107,571 Total expenditures - 107,571 - 107,571 Net change in fund balance -$ (63,571)$ 11,130 74,701 $ FUND BALANCE:
Beginning of year 192,903
End of year 204,033$
City of Redlands
Budgetary Comparison Schedule
Local Transportation Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
173
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income (loss) -$ 175,000$ 206,462$ 31,462$ Miscellaneous - 25,000 24,448 (552) Total revenues - 200,000 230,910 30,910 EXPENDITURES:
Current:
Highway and streets 553,858 506,609 1,617,718 (1,111,109) Capital outlay 4,500,000 8,579,361 7,357,089 1,222,272 Total expenditures 5,053,858 9,085,970 8,974,807 111,163 REVENUES OVER (UNDER) EXPENDITURES (5,053,858) (8,885,970) (8,743,897) 142,073 OTHER FINANCING SOURCES (USES):
Transfers in 5,311,820 7,969,939 7,575,694 (394,245) Total other financing sources (uses) 5,311,820 7,969,939 7,575,694 (394,245) Net change in fund balance 257,962$ (916,031)$ (1,168,203) (252,172)$ FUND BALANCE:
Beginning of year 3,745,904
End of year 2,577,701$
City of Redlands
Budgetary Comparison Schedule
PARIS Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
174
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income (loss) -$ -$ 456$ 456$ Total revenues - - 456 456 Net change in fund balance -$ -$ 456 456$ FUND BALANCE:
Beginning of year 9,411
End of year 9,867$
City of Redlands
Budgetary Comparison Schedule
Public Art Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
175
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Intergovernmental -$ 1,972,631$ 671,581$ (1,301,050)$ Total revenues - 1,972,631 671,581 (1,301,050) EXPENDITURES:
Current:
Highway and streets - 250,061 - 250,061 Capital outlay - 1,041,733 - 1,041,733 Total expenditures - 1,291,794 - 1,291,794 Net change in fund balance -$ 680,837$ 671,581 (9,256)$ FUND BALANCE (DEFICIT):
Beginning of year (680,745)
End of year (9,164)$
City of Redlands
Budgetary Comparison Schedule
Transportation Development Act Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
176
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 1,287,000$ 262,800$ 409,077$ 146,277$ Total revenues 1,287,000 262,800 409,077 146,277 EXPENDITURES:
Current:
General government 20,500 5,256 8,181 (2,925) Debt service:
Interest and fiscal charges - - 661 (661) Total expenditures 20,500 5,256 8,842 (3,586) REVENUES OVER (UNDER) EXPENDITURES 1,266,500 257,544 400,235 142,691 OTHER FINANCING SOURCES (USES):
Transfers in - - 7,690,541 7,690,541 Total other financing sources (uses) - - 7,690,541 7,690,541 Net change in fund balance 1,266,500$ 257,544$ 8,090,776 7,833,232$ FUND BALANCE (DEFICIT):
Beginning of year (6,161,839)
End of year 1,928,937$
City of Redlands
Budgetary Comparison Schedule
Public Facilities Development Special Revenue Fund
For the Year Ended June 30, 2024
Budgeted Amounts
177
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Charges for services 380,000 $ 75,000 $ 139,468 $ 64,468 $ Investment income (loss) 7,500 138,291 123,767 (14,524) Total revenues 387,500 213,291 263,235 49,944 EXPENDITURES:
Current:
General government 7,512 38,233 43,634 (5,401) Capital outlay 400,000 - - - Total expenditures 407,512 38,233 43,634 (5,401) Net change in fund balance (20,012)$ 175,058 $ 219,601 44,543 $ FUND BALANCE:
Beginning of year 2,545,321
End of year 2,764,922$
City of Redlands
Budgetary Comparison Schedule
Storm Drain Capital Projects Fund
For the Year Ended June 30, 2024
Budgeted Amounts
178
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income (loss) -$ 129,883$ 120,778$ (9,105)$ Total revenues - 129,883 120,778 (9,105) EXPENDITURES:
Current:
General government - 1,350,000 120,846 1,229,154 Capital outlay - 6,783,589 405,725 6,377,864 Total expenditures - 8,133,589 526,571 7,607,018 REVENUES OVER (UNDER) EXPENDITURES - (8,003,706) (405,793) 7,597,913 OTHER FINANCING SOURCES (USES):
Transfers in - 6,005,596 257,547 (5,748,049) Total other financing sources (uses) - 6,005,596 257,547 (5,748,049) Net change in fund balance -$ (1,998,110)$ (148,246) 1,849,864$ FUND BALANCE:
Beginning of year 2,325,558
End of year 2,177,312$
City of Redlands
Budgetary Comparison Schedule
Safety Hall Replacement Capital Projects Fund
For the Year Ended June 30, 2024
Budgeted Amounts
179
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Property taxes 30,000$ 30,000$ 29,039$ (961)$ Investment income (loss) 430 16,219 14,382 (1,837) Total revenues 30,430 46,219 43,421 (2,798) EXPENDITURES:
Current:
General government 3,460 3,460 3,459 1 Debt service:
Principal 185,000 185,000 185,000 - Interest and fiscal charges 207,455 207,455 207,455 - Total expenditures 395,915 395,915 395,914 1 REVENUES OVER (UNDER) EXPENDITURES (365,485) (349,696) (352,493) (2,797) OTHER FINANCING SOURCES (USES):
Transfers in - - 372,251 372,251 Total other financing sources (uses) - - 372,251 372,251 Net change in fund balance (365,485)$ (349,696)$ 19,758 369,454$ FUND BALANCE:
Beginning of year 559,509
End of year 579,267$
City of Redlands
Budgetary Comparison Schedule
General Debt Service Fund
For the Year Ended June 30, 2024
Budgeted Amounts
180
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income (loss) -$ 2,022$ 1,817$ (205)$ Total revenues - 2,022 1,817 (205) Net change in fund balance -$ 2,022$ 1,817 (205)$ FUND BALANCE:
Beginning of year 37,455
End of year 39,272$
City of Redlands
Budgetary Comparison Schedule
Simonds Endowment Permanent Fund
For the Year Ended June 30, 2024
Budgeted Amounts
181
Variance with
Final Budget
Actual Favorable/
Original Final Amounts (Unfavorable)
REVENUES:
Investment income (loss) -$ 1,195$ 1,075$ (120)$ Total revenues - 1,195 1,075 (120) Net change in fund balance -$ 1,195$ 1,075 (120)$ FUND BALANCE:
Beginning of year 22,138
End of year 23,213$
City of Redlands
Budgetary Comparison Schedule
Pauline Stancliff Memorial Trust Permanent Fund
For the Year Ended June 30, 2024
Budgeted Amounts
182
Non-Major Enterprise Funds
Groves Fund - This fund is used to account for the farming operations of citrus groves owned by the City.
Non-Potable Water Fund - This fund is used to account for non potable water utility operations, projects, debt service costs, and impact fees of the City.
Cemetery Fund - This fund is used to account for the operations of Hillside Memorial Park Cemetery.
Aviation Fund - This fund is used to account for the operations of the Redlands Municipal Airport. 183
Non-Potable
Groves Water Cemetery Aviation
Fund Fund Fund Fund Total
ASSETS
Current assets:
Cash and investments 491,263 $ 3,885,992 $ 3,500,959 $ 289,190 $ 8,167,404 $ Accounts receivable, net - 55,115 189,451 2,338 246,904 Taxes receivable - - - 103 103 Interest receivable 2,028 16,040 14,451 1,194 33,713 Lease receivable - due within one year - - 20,485 110,691 131,176 Due from other governments - - - 51,947 51,947 Total current assets 493,291 3,957,147 3,725,346 455,463 8,631,247 Noncurrent assets:
Lease receivable - due in more than one year - - - 503,028 503,028 Capital assets:
Non-depreciable 13,570,179 - 630,631 1,165,281 15,366,091 Depreciable, net 88,553 8,968 732,413 2,143,490 2,973,424 Total capital assets 13,658,732 8,968 1,363,044 3,308,771 18,339,515 Total noncurrent assets 13,658,732 8,968 1,363,044 3,811,799 18,842,543 Total assets 14,152,023 3,966,115 5,088,390 4,267,262 27,473,790
DEFERRED OUTFLOW OF RESOURCES
Related to OPEB - - 325,195 88,127 413,322 Related to pensions 55,259 29,883 245,964 71,631 402,737 Total deferred outflow of resources 55,259 29,883 571,159 159,758 816,059
LIABILITIES
Current liabilities:
Accounts payable 39,981 1,525 58,261 25,967 125,734 Accrued payroll 13,040 7,127 39,419 9,932 69,518 Interest payable - - 678 - 678 Deposits payable - - 1,386,545 13,512 1,400,057 Unearned revenue - - - 15,872 15,872 Compensated absences - due within one year 1,044 583 19,350 1,408 22,385 Long-term debt - due within one year 6,915 - 66,081 - 72,996 Total current liabilities 60,980 9,235 1,570,334 66,691 1,707,240 Noncurrent liabilities:
Advances from other funds - - 487,867 707,929 1,195,796 Compensated absences - due in more than one year 1,043 582 19,350 1,408 22,383 Long term debt - due in more than one year 5,218 - 97,673 - 102,891 Total OPEB liability - - 960,283 232,878 1,193,161 Net pension liability 193,152 104,453 859,750 250,381 1,407,736 Total noncurrent liabilities 199,413 105,035 2,424,923 1,192,596 3,921,967 Total liabilities 260,393 114,270 3,995,257 1,259,287 5,629,207
DEFERRED INFLOWS OF RESOURCES
Related to leases - - 20,326 599,835 620,161 Related to OPEB - - 647,204 130,692 777,896 Total deferred inflows of resources - - 667,530 730,527 1,398,057
NET POSITION
Net investment in capital assets 13,646,599 8,968 1,199,290 3,308,771 18,163,628 Restricted:
Capital projects 298,288 - - - 298,288 Endowment - non-expendable - - 110,741 - 110,741 Total restricted 298,288 - 110,741 - 409,029 Unrestricted (deficit) 2,002 3,872,760 (313,269) (871,565) 2,689,928 Total net position 13,946,889$ 3,881,728$ 996,762$ 2,437,206$ 21,262,585$ City of Redlands
Combining Statement of Net Position
Non-Major Enterprise Funds
June 30, 2024
184
Non-Potable
Groves Water Cemetery Aviation
Fund Fund Fund Fund Total
OPERATING REVENUES:
Charges for services 845,420 $ 553,827 $ 947,465 $ 152,175 $ 2,498,887 $ Miscellaneous operating revenue 243,393 - 278,155 194,013 715,561 Total operating revenues 1,088,813 553,827 1,225,620 346,188 3,214,448 OPERATING EXPENSES:
Salaries and benefits 164,107 96,046 702,836 204,623 1,167,612 General and administrative 1,066,996 435,507 420,874 235,618 2,158,995 Parts and supplies 175,141 - 156,872 47,898 379,911 Utilities 69,214 42,175 23,731 48,281 183,401 Depreciation/amortization 31,780 8,149 67,515 223,085 330,529 Total operating expenses 1,507,238 581,877 1,371,828 759,505 4,220,448 OPERATING INCOME (LOSS) (418,425) (28,050) (146,208) (413,317) (1,006,000) NONOPERATING REVENUES (EXPENSES):
Investment income 16,434 205,590 194,746 28,207 444,977 Interest expense (111) - (27,302) (30,316) (57,729) Property taxes - - - 104,411 104,411 Operating grants - - - 49,550 49,550 Total nonoperating revenues (expenses) 16,323 205,590 167,444 151,852 541,209
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS (402,102) 177,540 21,236 (261,465) (464,791)
CAPITAL CONTRIBUTIONS AND TRANSFERS
Capital contributions - 139,006 - - 139,006 Transfers in 406,357 - - - 406,357 Transfers out - (257,664) - - (257,664) Total capital contributions and transfers 406,357 (118,658) - - 287,699 Changes in net position 4,255 58,882 21,236 (261,465) (177,092) NET POSITION:
Beginning of year 13,942,634 3,822,846 975,526 2,698,671 21,439,677 End of year 13,946,889$ 3,881,728$ 996,762$ 2,437,206$ 21,262,585$ City of Redlands
Combining Statement of Revenues, Expenses, and Changes in Net Position Non-Major Enterprise Funds
For the Year Ended June 30, 2024
185
Non-Potable
Groves Water Cemetery Aviation
Fund Fund Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers 908,020 $ 547,062 $ 1,045,810 $ 185,106 $ 2,685,998 $ Cash payments to suppliers for goods and services (1,401,022) (529,902) (571,601) (343,095) (2,845,620) Cash payments to employees for services (180,453) (87,903) (594,458) (159,496) (1,022,310) Receipts from other operating revenues 243,393 - 278,155 194,013 715,561 Net cash provided by (used in) operating activities (430,062) (70,743) 157,906 (123,472) (466,371)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Operating grants - - - 63,405 63,405 Property taxes - - - 104,687 104,687 Advances from other funds - - (126,045) (29,684) (155,729) Transfers from other funds 406,357 - - - 406,357 Transfers to other funds - (257,664) - - (257,664) Net cash provided by (used in)
noncapital financing activities 406,357 (257,664) (126,045) 138,408 161,056
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets 1 - (131,176) (1) (131,176) Cash contributions received from developers - 139,006 - - 139,006 Inception of lease liability - - 122,163 - 122,163 Principal payment of long-term debt (6,867) - (48,571) - (55,438) Interest paid on debt (111) - (27,823) (30,316) (58,250) Net cash provided by (used in) capital and
related financing activities (6,977) 139,006 (85,407) (30,317) 16,305 CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income (loss) 14,406 189,550 180,295 27,013 411,264 Net cash provided by (used in) investing activities 14,406 189,550 180,295 27,013 411,264 Net change in cash and cash equivalents (16,276) 149 126,749 11,632 122,254 CASH AND CASH EQUIVALENTS:
Beginning of year 507,539 3,885,843 3,374,210 277,558 8,045,150 End of year 491,263$ 3,885,992$ 3,500,959$ 289,190$ 8,167,404$
(Continued)
City of Redlands
Combining Statement of Cash Flows
Non-Major Enterprise Funds
For the Year Ended June 30, 2024
186
Non-Potable
Groves Water Cemetery Aviation
Fund Fund Fund Fund Total
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Operating income (loss) (418,425) $ (28,050) $ (146,208) $ (413,317) $ (1,006,000) $ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:
Depreciation/amortization 31,780 8,149 67,515 223,085 330,529 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:
Accounts receivable, net 62,600 (6,765) 20,343 24,937 101,115 Lease receivable - - 27,181 108,872 136,053 Deferred outflows - OPEB related - - 66,846 13,369 80,215 Deferred outflows - pension related 19,453 3,845 33,548 623 57,469 Accounts payable (89,671) (52,220) 29,876 (11,298) (123,313) Accrued payroll 258 3,111 7,625 2,531 13,525 Deposits payable - - 77,921 1,508 79,429 Unearned revenue - - - 10,000 10,000 Compensated absences 1,545 905 6,619 1,927 10,996 Total OPEB liability - - (147,382) (29,476) (176,858) Net pension liability (33,572) 2,101 11,533 31,118 11,180 Deferred inflows - lease related - - (27,100) (112,386) (139,486) Deferred inflows - OPEB related - - 144,667 28,933 173,600 Deferred inflows - pension related (4,030) (1,819) (15,078) (3,898) (24,825) Total adjustments (11,637) (42,693) 304,114 289,845 539,629 Net cash provided by (used in) operating activities (430,062)$ (70,743)$ 157,906$ (123,472)$ (466,371)$ (Concluded)
For the Year Ended June 30, 2024
City of Redlands
Combining Statement of Cash Flows (Continued)
Non-Major Enterprise Funds
187
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188
Internal Service Funds
General Liability Self-Insurance Fund - This fund is used to account for the City’s self-insured general and automobile liability programs, which are provided to all City departments and funds.
Information Technology Fund - This fund is used to account for the general maintenance and service of all City computers and phone equipment provided to all City departments.
Workers' Compensation Self-Insurance Fund - This fund is used to account for the City’s self-insured Workers’ Compensation and General Safety Programs, which are provided to all City departments and funds.
Equipment Maintenance Fund - This fund is used to account for providing ongoing maintenance of all City vehicles and major equipment and to account for vehicle rental services to all City departments.
Utility Billing Fund - This fund is used to account for billing services costs provided for water, sewer, and solid waste.
Payroll Clearing Fund - This fund is used to account for the City’s reoccurring payroll obligations. 189
General Workers'
Liability Compensation Information E quipment
Self-Insurance Self-Insurance Technolo gy Maintenance
Fund Fund Fund Fund
ASSETS
Current assets:
Cash and investments 746,512$ 4,814,720$ 7,764,691$ 6,085,549$ Accounts receivable, net 740,778 - - 57,234 Interest receivable 3,081 19,874 32,050 25,119 Prepaid items 398 - 198,681 764 Inventories - - - 104,416 Total current assets 1,490,769 4,834,594 7,995,422 6,273,082 Noncurrent assets:
Capital assets:
Depreciable, net - - 666,982 244,031 Total capital assets - - 666,982 244,031 Total noncurrent assets - - 666,982 244,031 Total assets 1,490,769 4,834,594 8,662,404 6,517,113
DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 88,127 88,127 919,756 416,249 Related to pensions 110,795 282,026 714,094 329,596 Total deferred outflow of resources 198,922 370,153 1,633,850 745,845
LIABILITIES
Current liabilities:
Accounts payable 148,933 - 181,969 981,389 Accrued payroll 18,089 34,042 136,311 61,466 Compensated absences - due within one year 3,068 6,971 98,349 39,162 Claims payable - due within one year 2,200,276 5,516,461 - - Long-term debt - due within one year - - 55,044 14,723 Total current liabilities 2,370,366 5,557,474 471,673 1,096,740 Noncurrent liabilities:
Compensated absences - due in more than one year 3,068 6,971 98,349 39,162 Claims payable - due in more than one year 2,200,276 5,516,460 - - Long term debt - due in more than one year - - - 44,714 Total OPEB liability 311,933 221,986 2,769,644 1,585,300 Net pension liability 387,277 985,803 2,496,064 1,152,080 Total noncurrent liabilities 2,902,554 6,731,220 5,364,057 2,821,256 Total liabilities 5,272,920 12,288,694 5,835,730 3,917,996
DEFERRED INFLOWS OF RESOURCES
Related to OPEB 130,692 130,692 1,949,839 655,593 Total deferred inflows of resources 130,692 130,692 1,949,839 655,593
NET POSITION
Net Investment in capital assets - - 666,982 244,031 Unrestricted (deficit) (3,713,921) (7,214,639) 1,843,703 2,445,338 Total net position (deficit) (3,713,921)$ (7,214,639)$ 2,510,685$ 2,689,369$ (Continued)
City of Redlands
Combining Statement of Net Position
All Internal Service Funds
June 30, 2024
190
Utility Payroll
Billing Clearing
Fund Fund Total
ASSETS
Current assets:
Cash and investments 2,685,948$ 629,034$ 22,726,454$ Accounts receivable, net 3,746 - 801,758 Interest receivable 11,087 - 91,211 Prepaid items - 32,207 232,050 Inventories - - 104,416 Total current assets 2,700,781 661,241 23,955,889 Noncurrent assets:
Capital assets:
Depreciable, net 49,145 - 960,158 Total capital assets 49,145 - 960,158 Total noncurrent assets 49,145 - 960,158 Total assets 2,749,926 661,241 24,916,047
DEFERRED OUTFLOW OF RESOURCES
Related to OPEB 985,252 - 2,497,511 Related to pensions 506,231 - 1,942,742 Total deferred outflow of resources 1,491,483 - 4,440,253
LIABILITIES
Current liabilities:
Accounts payable 11,956 5,759 1,330,006 Accrued payroll 82,336 582,581 914,825 Compensated absences - due within one year 87,578 - 235,128 Claims payable - due within one year - - 7,716,737 Long-term debt - due within one year - - 69,767 Total current liabilities 181,870 588,340 10,266,463 Noncurrent liabilities:
Compensated absences - due in more than one year 87,577 - 235,127 Claims payable - due in more than one year - - 7,716,736 Long term debt - due in more than one year - - 44,714 Total OPEB liability 2,677,273 - 7,566,136 Net pension liability 1,769,492 - 6,790,716 Total noncurrent liabilities 4,534,342 - 22,353,429 Total liabilities 4,716,212 588,340 32,619,892
DEFERRED INFLOWS OF RESOURCES
Related to OPEB 1,815,217 - 4,682,033 Total deferred inflows of resources 1,815,217 - 4,682,033
NET POSITION
Net Investment in capital assets 49,145 - 960,158 Unrestricted (deficit) (2,339,165) 72,901 (8,905,783) Total net position (deficit) (2,290,020)$ 72,901$ (7,945,625)$ (Concluded)
City of Redlands
Combining Statement of Net Position (Continued)
All Internal Service Funds
June 30, 2024
191
General Workers'
Liability Compensation Information Equipment
Self-Insurance Self-Insurance Technology Maintenance
Fund Fund Fund Fund
OPERATING REVENUES:
Charges for services -$ 3,272,153$ 6,974,774$ 8,435,670$ Miscellaneous operating revenue 747,279 52,985 - - Total operating revenues 747,279 3,325,138 6,974,774 8,435,670 OPERATING EXPENSES:
Salaries and benefits 353,815 948,774 2,121,802 1,112,117 General and administrative 5,054,556 1,541,386 1,995,073 1,004,380 Parts and supplies 62 6,431 73,508 6,120,678 Utilities 1,231 - 331,888 6,249 Depreciation/amortization - - 490,703 49,853 Total operating expenses 5,409,664 2,496,591 5,012,974 8,293,277 OPERATING INCOME (LOSS) (4,662,385) 828,547 1,961,800 142,393 NONOPERATING REVENUES (EXPENSES):
Investment income (loss) (225,342) 200,165 253,459 263,902 Interest expense - - (5,549) (44) Total nonoperating revenues (expenses) (225,342) 200,165 247,910 263,858 INCOME (LOSS) BEFORE TRANSFERS (4,887,727) 1,028,712 2,209,710 406,251 TRANSFERS:
Transfers in 6,151,403 - - - Transfers out - - - (36,297) Total transfers 6,151,403 - - (36,297) Changes in net position 1,263,676 1,028,712 2,209,710 369,954
NET POSITION (DEFICIT):
Beginning of year (4,977,597) (8,243,351) 300,975 2,319,415 End of year (3,713,921)$ (7,214,639)$ 2,510,685$ 2,689,369$ (Continued)
City of Redlands
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the Year Ended June 30, 2024
192
Utility Payroll
Billing Clearing
Fund Fund Total
OPERATING REVENUES:
Charges for services 2,239,166$ 372,251$ 21,294,014$ Miscellaneous operating revenue 35,940 - 836,204 Total operating revenues 2,275,106 372,251 22,130,218 OPERATING EXPENSES:
Salaries and benefits 1,351,516 - 5,888,024 General and administrative 674,899 - 10,270,294 Parts and supplies 20,222 - 6,220,901 Utilities 843 - 340,211 Depreciation/amortization 9,829 - 550,385 Total operating expenses 2,057,309 - 23,269,815 OPERATING INCOME (LOSS) 217,797 372,251 (1,139,597) NONOPERATING REVENUES (EXPENSES):
Investment income (loss) 653,974 - 1,146,158 Interest expense - - (5,593) Total nonoperating revenues (expenses) 653,974 - 1,140,565 INCOME (LOSS) BEFORE TRANSFERS 871,771 372,251 968 TRANSFERS:
Transfers in - - 6,151,403 Transfers out - (372,251) (408,548) Total transfers - (372,251) 5,742,855 Changes in net position 871,771 - 5,743,823 NET POSITION (DEFICIT):
Beginning of year (3,161,791) 72,901 (13,689,448) End of year (2,290,020)$ 72,901$ (7,945,625)$ (Concluded)
City of Redlands
Combining Statement of Revenues, Expenses, and Changes in Net Position (Continued) All Internal Service Funds
For the Year Ended June 30, 2024
193
General Workers'
Liability Compensation Information Equipment
Self-Insurance Self-Insurance Technology Maintenance
Fund Fund Fund Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers (740,778)$ 3,272,153$ 6,974,774$ 8,433,663$ Cash payments to suppliers for goods and services (4,920,862) (1,735,420) (2,414,117) (7,186,810) Cash payments to employees for services (262,107) (813,697) (1,606,029) (846,120) Receipts from other operating activities 747,279 52,985 - - Net cash provided by (used in) operating activities (5,176,468) 776,021 2,954,628 400,733
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers from other funds 6,151,403 - - - Transfers to other funds - - - (36,297) Net cash provided by (used in)
noncapital financing activities 6,151,403 - - (36,297)
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets - - (263,659) (101,307) Inception of lease liability - - - 55,274 Principal payment of long-term debt - - (130,385) (7,107) Interest paid on debt - - (5,549) (44) Net cash (used in) capital and
related financing activities - - (399,593) (53,184) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income (loss) (228,423) 180,291 221,409 238,783 Net cash provided by (used in) investing activities (228,423) 180,291 221,409 238,783 Net change in cash and cash equivalents 746,512 956,312 2,776,444 550,035 CASH AND CASH EQUIVALENTS:
Beginning of year - 3,858,408 4,988,247 5,535,514 End of year 746,512$ 4,814,720$
7,764,691$ 6,085,549$
(Continued)
City of Redlands
Combining Statement of Cash Flows
All Internal Service Funds
For the Year Ended June 30, 2024
194
General Workers'
Liability Compensation Information Equipment
Self-Insurance Self-Insurance Technology Maintenance
Fund Fund Fund Fund
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Operating income (loss) (4,662,385)$ 828,547$ 1,961,800$ 142,393$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:
Depreciation/amortization - - 490,703 49,853 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:
Accounts receivable, net (740,778) - - (2,007) Prepaid items (398) - (39,079) (764) Inventories - - - (10,162) Deferred outflows - OPEB related 13,369 13,369 213,908 66,846 Deferred outflows -pension related (11,215) 2,656 26,926 (11,651) Accounts payable 41,726 (1,524) 25,431 (44,577) Accrued payroll 7,049 4,117 56,277 32,957 Compensated absences 3,332 8,936 19,984 10,477 Claims payable 93,659 (186,079) - - Total OPEB liability (29,476) (29,476) (471,624) (147,382) Net pension liability 85,088 121,899 247,343 187,234 Deferred inflows - OPEB related 28,933 28,933 462,933 144,667 Deferred inflows - pension related (5,372) (15,357) (39,974) (17,151) Total adjustments (514,083) (52,526) 992,828 258,340 Net cash provided by (used in) operating activities (5,176,468)$ 776,021$ 2,954,628$ 400,733$
(Continued)
All Internal Service Funds
For the Year Ended June 30, 2024
City of Redlands
Combining Statement of Cash Flows (Continued)
195
Utility Payroll
Billing Clearing
Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers 2,238,530$ 372,251$ 20,550,593$ Cash payments to suppliers for goods and services (687,753) (27,108) (16,972,070) Cash payments to employees for services (1,110,276) 116,229 (4,522,000) Receipts from other operating activities 35,940 - 836,204 Net cash provided by (used in) operating activities 476,441 461,372 (107,273)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:
Transfers from other funds - - 6,151,403 Transfers to other funds - (372,251) (408,548) Net cash provided by (used in)
noncapital financing activities - (372,251) 5,742,855
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (32,893) - (397,859) Inception of lease liability - - 55,274 Principal payment of long-term debt - - (137,492) Interest paid on debt - - (5,593) Net cash (used in) capital and
related financing activities (32,893) - (485,670) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income (loss) 642,887 - 1,054,947 Net cash provided by (used in) investing activities 642,887 - 1,054,947 Net change in cash and cash equivalents 1,086,435 89,121 6,204,859 CASH AND CASH EQUIVALENTS:
Beginning of year 1,599,513 539,913 16,521,595 End of year 2,685,948$ 629,034$ 22,726,454$
(Continued)
City of Redlands
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2024
196
Utility Payroll
Billing Clearing
Fund Fund Total
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Operating income (loss) 217,797$ 372,251$ (1,139,597)$ Adjustments to reconcile operating income (loss) to net cash provided by (used in) operating activities:
Depreciation/amortization 9,829 - 550,385 Changes in operating assets and liabilities, and
deferred outflows and inflows of resources:
Accounts receivable, net (636) - (743,421) Prepaid items 7,813 (32,207) (64,635) Inventories - - (10,162) Deferred outflows - OPEB related 200,539 - 508,031 Deferred outflows -pension related 91,548 - 98,264 Accounts payable 398 5,099 26,553 Accrued payroll 21,364 116,229 237,993 Compensated absences 12,728 - 55,457 Claims payable - - (92,420) Total OPEB liability (442,147) - (1,120,105) Net pension liability (44,545) - 597,019 Deferred inflows - OPEB related 434,000 - 1,099,466 Deferred inflows - pension related (32,247) - (110,101) Total adjustments 258,644 89,121 1,032,324 Net cash provided by (used in) operating activities 476,441$ 461,372$ (107,273)$
(Concluded)
Combining Statement of Cash Flows (Continued)
All Internal Service Funds
For the Year Ended June 30, 2024
City of Redlands
197
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198
STATISTICAL SECTION
(UNAUDITED)
199
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200
CONTENTS PAGE
1 Net Position by Component 202
2 Changes in Net Position 204
3 Fund Balances of Governmental Funds 208
4 Changes in Fund Balances of Governmental Funds 210
5 Assessed Value and Estimated Actual Value of Taxable Property 213 6 Assessed Value and Estimated Actual Value of Taxable Property by Major Type 214 7 Direct and Overlapping Property Tax Rates 216
8 Top Ten Principal Property Taxpayers 218
9 Property Tax Levies and Collections 219
10 Ratios of Outstanding Debt by Type 220
11 Ratios of General Bonded Debt Outstanding 222
12 Direct and Overlapping Governmental Activities Debt 223 13 Legal Debt Margin Information 224
14 Pledged Revenue Coverage 226
15 Demographic and Economic Statistics 227
16 Principal Employers 228
17 Full Time Equivalent City Government Employees by Function/Program 229 18 Operating Indicators by Function/Program 230
19 Capital Asset Statistics by Function/Program 232
Sources: Unless otherwise noted, the informatio
n in these schedules is derived fro m the City's annual comprehensive financial reports for the relevant year
CITY OF REDLANDS - STATISTICAL SECTION
Operating Information - These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.
Revenue Capacity - These schedules contain information to help the reader assess the City of Ridgecrest's most significant local revenue source, the property tax.
Debt Capacity - These schedules present information to help the reader assess the affordability of the City's current level of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information - These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.
Financial Trends - These schedules contain trend information to help the reader understand how the City of Ridgecrest's financial performance and well being have changed over time.
This part of the City of Redlands's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health.
201
2024 2023 2022 2021 2020
Governmental activities
Net investment in capital assets, 629,390,358$ 590,288,015$ 537,558,597$ 481,259,666$ 473,042,917$ Restricted 26,403,823 13,385,123 11,326,983 14,059,449 17,346,674 Unrestricted (deficit) (97,862,236) (88,121,189) (114,273,699) (143,979,153) (154,157,129) Total governmental activities net position 557,931,945$ 515,551,949$ 434,611,881$ 351,339,962$ 336,232,462$ Business type activities
Net investment in capital assets 196,064,177$ 190,475,232$ 183,665,229$ 167,349,714$ 165,453,760$ Restricted 19,763,252 16,677,323 16,677,323 18,031,654 23,794,167 Unrestricted 8,113,449 18,287,832 20,522,584 25,405,456 10,901,482 Total business type activities net position 223,940,878$ 225,440,387$ 220,865,136$ 210,786,824$ 200,149,409$ Primary government
Net investment in capital assets 825,454,535$ 780,763,247$ 721,223,826$ 648,609,380$ 638,496,677$ Restricted 46,167,075 30,062,446 28,004,306 32,091,103 41,140,841 Unrestricted (deficit) (89,748,787) (69,833,357) (93,751,115) (118,573,697) (143,255,647) Total primary government net position 781,872,823$ 740,992,336$ 655,477,017$ 562,126,786$ 536,381,871$ NOTE:
(1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015.
The Unrestricted Net Position was affected adversely by this Statement in order to reflect net pension liability. (2) The City of Redlands implemented GASB 75 for the fiscal year ended June 30, 2018.
The Unrestricted Net Position was affected adversely by this Statement in order to reflect unamortized OPEB Liability.
It is anticipated that GASB 75 will expose this fund balance category to more fluctuations in the future as a result of immediate recognition of certain items (e.g. plan changes). (3) Beginning in FY 2019, the City changed its methodology to account for Right of Way. This adversely affected net position, causing a restatement of assets. More information is provided in Management's Discussion and Analysis. (4) The significant variance in net position invested in capital assets for Governmental Activities is due to a large increase in the amount of right-of-way added as well as a significant increase in the assigned value based on the City's revised valuation methodology. More information is available in Management's Discussion and Analysis.
Fiscal Years
Last Ten Fiscal Years (accrual basis of accounting)
City of Redlands
Schedule 1
Net Position by Component
202
2019 2018 2017 2016 2015
Governmental activities
Net investment in capital assets 443,551,078$ 655,044,577$ 642,109,428$ 622,119,006$ 625,683,667$ Restricted 15,676,686 20,499,351 11,100,669 15,258,535 15,584,054 Unrestricted (deficit) (148,411,538) (148,371,437) (93,361,330) (81,795,361) (81,181,952) Total governmental activities net position 310,816,226$ 527,172,491$ 559,848,767$ 555,582,180 560,085,769 Business type activities
Net investment in capital assets 150,997,528$ 150,228,905$ 149,771,777$ 163,565,980$ 154,904,203$ Restricted 26,162,608 17,516,341 17,399,398 3,702,600 4,671,097 Unrestricted 6,544,230 117,617 12,757,392 13,253,120 22,953,122 Total business type activities net position 183,704,366$ 167,862,863$ 179,928,567$ 180,521,700$ 182,528,422$ Primary government
Net investment in capital assets 594,548,606$ 805,273,482$ 791,881,205$ 785,684,986$ 780,587,870$ Restricted 41,839,294 38,015,692 28,500,067 18,961,135 20,255,151 Unrestricted (deficit) (141,867,308) (148,253,820) (80,603,938) (68,542,241) (58,228,830) Total primary government net position 494,520,592$ 695,035,354$ 739,777,334$ 736,103,880$ 742,614,191$ NOTE:
(1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015.
The Unrestricted Net Position was affected adversely by this Statement in order to reflect net pension liability. (2) The City of Redlands implemented GASB 75 for the fiscal year ended June 30, 2018.
The Unrestricted Net Position was affected adversely by this Statement in order to reflect unamortized OPEB Liability.
It is anticipated that GASB 75 will expose this fund balance category to more fluctuations in the future as a result of immediate recognition of certain items (e.g. plan changes). (3) Beginning in FY 2019, the City changed its methodology to account for Right of Way. This adversely affected net position, causing a restatement of assets. More information is provided in Management's Discussion and Analysis. (4) The significant variance in net position invested in capital assets for Governmental Activities is due to a large increase in the amount of right-of-way added as well as a significant increase in the assigned value based on the City's revised valuation methodology. More information is available in Management's Discussion and Analysis.
Fiscal Years
Last Ten Fiscal Years (accrual basis of accounting)
City of Redlands
Schedule 1
Net Position by Component (Continued)
203
2024 2023 2022 2021 20204
Expenses
Governmental activities:
General government 42,250,996$ 28,913,048 $ 26,157,407 $ 18,717,217 $ 16,211,056 $ Public protection 70,359,582 48,272,159 61,325,651 57,395,655 57,656,302 Culture and recreation 9,900,700 9,123,335 6,902,767 4,250,967 5,227,381 Highway and streets 13,911,149 12,081,743 9,754,750 11,057,940 4,060,779 Library 4,068,345 3,557,350 2,754,340 2,792,316 2,921,245 Interest and fiscal charges 679,186 792,780 738,561 888,750 994,894 Total governmental activities expenses 141,169,958 102,740,415 107,633,477 95,102,845 87,071,657 Business type activities:
Water 30,614,235 26,729,160 26,535,646 23,411,564 22,719,142 Disposal 22,954,172 17,755,193 15,637,376 15,026,409 15,194,462 Wastewater (Sewer) 16,143,743 13,554,178 11,764,304 12,077,904 11,242,914 Groves 1,507,349 1,880,763 1,146,879 991,602 845,498 Non-Potable Water 581,877 563,123 956,768 677,088 249,911 Cemetery 1,399,130 1,441,652 958,443 1,119,999 1,049,876 Aviation 789,821 819,188 715,647 582,770 637,012 Total business type activities expenses 73,990,327 62,743,257 57,715,063 53,887,336 51,938,815 Total primary government expenses 215,160,285$ 165,483,672 $ 165,348,540 $ 148,990,181 $ 139,010,472 $ Program Revenues
Governmental activities:
Charges for services:
General governmen
t 16,010,783$ 15,681,682 $ 15,368,391 $ 13,967,066 $ 11,482,417 $ Public safety 965,128 932,542 744,389 669,155 1,769,514 Culture and recreation 641,939 421,867 748,377 261,090 291,801 Highway and streets 375,497 332,187 355,465 350,025 2,311,254 Library 20,721 83,541 118,701 418,298 120,623 Operating grants and contributions 14,227,777 5,158,328 4,223,681 3,941,740 2,995,658 Capital grants and contributions 38,207,775 53,471,990 28,433,466 11,372,774 32,104,508 Total governmental activities program revenues 70,449,620 76,082,137 49,992,470 30,980,148 51,075,775 Business type activities:
Charges for services:
Wate
r 27,009,859 27,080,827 30,131,495 31,217,602 28,014,723 Disposal 20,764,912 20,313,945 21,066,272 19,009,933 18,566,965 Wastewater (Sewer) 13,144,186 12,465,052 11,998,633 10,124,426 10,154,451 Groves 845,420 1,681,761 863,303 684,782 481,632 Non-Potable Water 553,827 618,839 641,340 629,395 484,262 Cemetery 947,465 986,715 1,139,982 1,258,104 926,398 Aviation 152,175 136,727 135,480 125,857 133,262 Operating grants and contributions 114,117 385,895 631,695 20,125 55,371 Capital grants and contributions 3,867,244 4,010,635 6,134,627 2,840,765 6,800,041 Total business type activities program revenues 67,399,205 67,680,396 72,742,827 65,910,989 65,617,105 Total primary government program revenues 137,848,825$ 143,762,533 $ 122,735,297 $ 96,891,137 $ 116,692,880 $ Net (Expense)/Revenue
Governmental activities (70,720,338) (26,658,278) (57,641,007) (64,122,697) (35,995,882) Business type activities (6,591,122) 4,937,139 15,027,764 12,023,653 13,678,290 Total primary government net expense (77,311,460)$ (21,721,139)$ (42,613,243)$ (52,099,044)$ (22,317,592)$ Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
City of Redlands
Schedule 2
Changes in Net Position
204
20193 20182 2017 2016 20151
Expenses
Governmental activities:
General government 16,210,304$ 12,394,000 $ 14,391,456 $ 16,235,478 $ 10,229,535 $ Public protection 53,095,381 32,240,549 43,263,363 42,097,211 40,920,668 Culture and recreation 4,783,803 4,748,841 4,086,880 3,542,242 3,554,720 Highway and streets 10,183,231 12,854,490 11,271,259 15,594,075 12,043,276 Library 2,537,698 2,000,613 2,304,552 2,023,972 1,929,752 Interest and fiscal charges 683,446 834,297 936,132 1,123,871 1,297,837 Total governmental activities expenses 87,493,863 65,072,790 76,253,642 80,616,849 69,975,788 Business type activities:
Water 20,857,656 20,369,100 20,514,340 21,635,151 19,556,198 Disposal 16,162,875 12,877,703 12,274,583 12,172,640 12,201,957 Wastewater (Sewer) 9,926,236 8,851,848 8,979,254 8,956,871 8,030,897 Groves 849,678 788,554 742,740 841,529 689,839 Non-Potable Water 116,759 125,323 434,912 81,152 73,383 Cemetery 936,535 861,109 75,761 1,304,891 681,223 Aviation 617,285 466,972 785,348 609,088 333,061 Total business type activities expenses 49,467,024 44,340,609 43,806,938 45,601,322 41,566,558 Total primary government expenses 136,960,887$ 109,413,399 $ 120,060,580 $ 126,218,171 $ 111,542,346 $ Program Revenues
Governmental activities:
Charges for services:
General governmen
t 11,151,187$ 10,811,937 $ 10,144,231 $ 9,270,657 $ 10,625,356 $ Public safety 2,711,769 3,076,343 2,696,810 3,403,559 1,975,667 Culture and recreation 310,780 303,222 719,642 286,315 295,199 Highway and streets 2,322,468 1,895,996 1,361,187 1,205,141 1,681,146 Library 131,338 131,408 125,052 33,098 33,270 Operating grants and contributions 1,867,228 4,469,962 2,911,259 5,596,864 8,607,394 Capital grants and contributions 7,083,735 4,533,292 2,257,370 1,346,021 4,666,849 Total governmental activities program revenues 25,578,505 25,222,160 20,215,551 21,141,655 27,884,881 Business type activities:
Charges for services:
Wate
r 28,053,989 27,030,979 22,479,655 18,873,106 22,217,588 Disposal 17,159,911 15,110,821 13,657,953 13,504,267 12,887,067 Wastewater (Sewer) 10,229,449 9,611,197 9,340,274 9,531,484 9,688,884 Groves 930,738 741,397 700,334 507,914 798,577 Non-Potable Water 528,296 638,313 83,905 508,556 499,211 Cemetery 555,256 745,347 514,015 461,997 349,472 Aviation 120,087 127,233 575,846 15,214 16,472 Operating grants and contributions 56,555 - - - 180,000 Capital grants and contributions 5,450,817 347,871 816,777 392,189 4,593,429 Total business type activities program revenues 63,085,098 54,353,158 48,168,759 43,794,727 51,230,700 Total primary government program revenues 88,663,603$ 79,575,318 $ 68,384,310 $ 64,936,382 $ 79,115,581 $ Net (Expense)/Revenue
Governmental activities (61,915,358) (39,850,630) (56,038,091) (59,475,194) (42,090,907) Business type activities 13,618,074 10,012,549 4,361,821 (1,806,595) 9,664,142 Total primary government net expense (48,297,284)$ (29,838,081)$ (51,676,270)$ (61,281,789)$ (32,426,765)$ Last Ten Fiscal Years (accrual basis of accounting)
Fiscal Years
City of Redlands
Schedule 2
Changes in Net Position (Continued)
205
2024 2023 2022 2021 20204
General Revenues and
Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 42,883,738$ 40,372,312$ 37,769,495$ 35,722,886$ 33,743,135$ Sales and taxes 47,629,644 48,632,853 48,232,171 26,541,469 17,510,274 Franchises taxes 4,471,469 4,487,821 2,625,852 2,379,571 2,369,348 Other taxes 2,676,553 3,109,696 2,706,919 2,462,019 2,031,015 Investment income (loss) 9,235,054 2,757,278 (1,546,892) 282,836 1,869,008 Intergovernmental (unrestricted) 852,762 572,685 1,308,520 1,455,573 167,157 Miscellaneous revenue 2,523,968 4,734,390 1,689,391 3,064,706 1,865,686 Transfers 2,827,146 2,742,192 48,127,470 3,660,469 1,856,495 Total governmental activities 113,100,334 107,409,227 140,912,926 75,569,529 61,412,118 Business type activities:
Property taxes 104,411 96,621 73,337 79,616 81,098 Investment income (loss) 5,841,165 1,123,030 (2,746,746) 557,392 3,214,540 Miscellaneous revenue 1,973,183 1,107,435 1,208,057 1,637,223 1,327,610 Gain on sale of capital assets - - 44,643,370 - - Transfers (2,827,146) (2,742,192) (48,127,470) (3,660,469) (1,856,495) Total business type activities 5,091,613 (415,106) (4,949,452) (1,386,238) 2,766,753 Total primary governmen
t 118,191,947$ 106,994,121 $ 135,963,474 $ 74,183,291 $ 64,178,871 $ Change in Net Position
Governmental activities 42,379,996 $ 80,750,949 $ 83,271,919 $ 11,446,832 $ 25,416,236 $ Business type activities (1,499,509) 4,522,033 10,078,312 10,637,415 16,445,043 Total primary government 40,880,487$ 85,272,982 $ 93,350,231 $ 22,084,247 $ 41,861,279 $ NOTE:
(1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015.
The Unrestricted Net Position was affected adversely by this Statement in order to reflect net pension liability. (2) The City of Redlands implemented GASB 75 for the fiscal year ended June 30, 2018.
The Unrestricted Net Position was affected adversely by this Statement in order to reflect unamortized OPEB Liability.
It is anticipated that GASB 75 will expose this fund balance category to more fluctuations in the future as a result of immediate recognition of certain items (e.g. plan changes). (3) Beginning in FY 2019, the City changed its methodology to account for Right of Way. This adversely affected net position, causing a restatement of assets. More information is provided in Management's Discussion and Analysis. (4) The significant variance in the change in net position for Governmental Activities is due to a large decrease in the prior year 'to account for a revised right-of-way valuation methodology that had an adverse affect on net position, followed by a significant 'increase in right-of-way value added. More information is available in Management's Discussion and Analysis.
Fiscal Years
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
City of Redlands
206
20193 20182 2017 2016 20151
General Revenues and
Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 31,833,632$ 30,067,473$ 28,173,741$ 26,424,395$ 25,157,824$ Sales and taxes 18,838,445 17,177,492 16,843,090 18,344,596 16,040,049 Franchises taxes 2,221,789 3,224,053 3,035,317 3,079,571 3,735,682 Other taxes 2,061,674 1,907,344 1,977,985 1,792,527 1,681,618 Investment income (loss) 2,421,036 206,304 212,991 800,889 467,427 Intergovernmental (unrestricted) 187,586 195,866 196,602 234,787 424,385 Miscellaneous revenue 1,498,562 1,689,135 7,331,734 1,105,258 1,035,134 Transfers 2,943,934 8,243,110 2,500,914 4,486,199 16,113,690 Total governmental activities 62,006,658 62,710,777 60,272,374 56,268,222 64,655,809 Business type activities:
Property taxes 85,928 66,263 40,199 38,109 35,225 Investment income (loss) 3,310,733 509,882 500,783 1,335,997 921,859 Miscellaneous revenue 1,770,702 2,457,912 4,627,943 2,911,966 1,152,177 Gain on sale of capital assets - - - - 4,840 Transfers (2,943,934) (8,243,110) (2,500,914) (4,486,199) (16,113,690) Total business type activities 2,223,429 (5,209,053) 2,668,011 (200,127) (13,999,589) Total primary governmen
t 64,230,087$ 57,501,724 $ 62,940,385 $ 56,068,095 $ 50,656,220 $ Change in Net Position
Governmental activities 91,300 $ 22,860,147$ 4,234,283 $ (3,206,972) $ 22,564,902 $ Business type activities 15,841,503 4,803,496 7,029,832 (2,006,722) (4,335,447) Total primary government 15,932,803$ 27,663,643 $ 11,264,115 $ (5,213,694) $ 18,229,455 $ NOTE:
(1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015.
The Unrestricted Net Position was affected adversely by this Statement in order to reflect net pension liability. (2) The City of Redlands implemented GASB 75 for the fiscal year ended June 30, 2018.
The Unrestricted Net Position was affected adversely by this Statement in order to reflect unamortized OPEB Liability.
It is anticipated that GASB 75 will expose this fund balance category to more fluctuations in the future as a result of immediate recognition of certain items (e.g. plan changes). (3) Beginning in FY 2019, the City changed its methodology to account for Right of Way. This adversely affected net position, causing a restatement of assets. More information is provided in Management's Discussion and Analysis. (4) The significant variance in the change in net position for Governmental Activities is due to a large decrease in the prior year 'to account for a revised right-of-way valuation methodology that had an adverse affect on net position, followed by a significant 'increase in right-of-way value added. More information is available in Management's Discussion and Analysis.
Fiscal Years
Schedule 2
Changes in Net Position (Continued)
Last Ten Fiscal Years (accrual basis of accounting)
City of Redlands
207
2024 2023 20222 2021 2020
General fund
Nonspendable 3,513,932$ 8,214,591$ 8,369,652$ 8,327,781$ 8,469,766$ Restricted 1,333,444 1,260,683 1,157,866 1,076,656 1,058,540 Committed 12,232,036 12,492,698 12,663,905 11,863,318 8,285,676 Assigned 33,591,308 35,700,799 31,734,961 4,188,185 3,901,788 Unassigned 60,505,969 53,289,070 39,513,840 29,877,229 19,000,734 Total general fund 111,176,689 110,957,841 93,440,224 55,333,169 40,716,504 All other governmental funds
Nonspendable 293,319 574,827 43,400 30,200 104,242 Restricted 24,458,555 11,961,583 9,980,754 13,024,622 16,266,437 Committed - 11,893,350 11,409,016 10,748,915 11,048,266 Assigned 2,764,922 2,325,558 2,560,682 2,742,004 1,463,122 Unassigned (deficit) (240,244) (8,448,957) (6,610,754) (7,558,978) (7,740,144) Total all other governmental fund 27,276,552 18,306,361 17,383,098 18,986,763 21,141,923 TOTAL FUND BALANCES 138,453,241$ 129,264,202$ 110,823,322$ 74,319,932$ 61,858,427$ (1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015. (2) The City passed a one-cent sales tax which added significant revenue over budget forecasts, additionally $7.1 million in unspent appropriations were carried over to the following fiscal year. Lastly the City implemented GASB 84 to recognize special deposits from another fund in the General Fund as committed fund balance.
Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
City of Redlands
Schedule 3
Fund Balances of Governmental Funds
208
2019 2018 2017 2016 20151
General fund
Nonspendable 8,707,654 $ 8,734,646 $ 8,517,994 $ 8,324,472 $ 7,481,159 $ Restricted 1,104,848 1,057,918 - - - Committed 8,285,676 8,285,676 8,122,332 8,122,332 7,935,152 Assigned 3,894,566 4,063,636 2,130,916 2,267,840 1,883,794 Unassigned 17,654,773 13,592,754 13,927,733 13,454,147 14,510,450 Total general fund 75,382,147 35,734,630 32,698,975 32,168,791 31,810,555 All other governmental funds
Nonspendable 123,682 123,661 2,539,567 - 327,340 Restricted 14,541,638 19,321,372 9,563,703 15,258,535 15,584,054 Committed 9,738,292 8,441,919 8,013,248 7,212,199 6,698,593 Assigned 1,480,036 1,204,854 3,419,978 - - Unassigned (deficit) (8,548,572) (8,761,721) (10,470,797) (9,553,680) (7,849,278) Total all other governmental fund 17,335,076 20,330,085 13,065,699 12,917,054 14,760,709 TOTAL FUND BALANCES 92,717,223 $ 56,064,715 $ 45,764,674 $ 45,085,845 $ 46,571,264 $ (1) The City of Redlands implemented GASB 68 for the fiscal year ended June 30, 2015. (2) The City passed a one-cent sales tax which added significant revenue over budget forecasts, additionally $7.1 million in unspent appropriations were carried over to the following fiscal year. Lastly the City implemented GASB 84 to recognize special deposits from another fund in the General Fund as committed fund balance.
Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
City of Redlands
Schedule 3
Fund Balances of Governmental Funds (Continued)
209
2024 2023 20222 2021 2020
Revenues
Taxes 97,661,404$ 97,890,204$ 92,468,816$ 68,307,527$ 57,080,368$ Licenses and permits 9,238,592 8,862,824 8,122,570 7,579,479 9,786,703 Intergovernmental 21,998,289 11,470,217 8,748,788 7,520,076 5,052,310 Charges for services 11,662,388 12,139,614 15,275,610 9,853,495 9,659,518 Use of money and property 6,916,285 482,019 (3,135,140) 248,353 1,659,740 Other miscellaneous 2,207,763 2,468,702 1,577,070 1,712,985 2,846,580 Total revenues 149,684,721 133,313,580 123,057,714 95,221,915 86,085,219 Expenditures
Current:
General government 36,952,522 25,336,594 23,345,899 16,897,961 14,842,765 Public safety 60,359,083 54,055,313 50,048,806 50,208,365 48,554,670 Culture and recreation 7,956,878 7,405,824 5,346,330 3,154,163 3,244,432 Highway and streets 6,513,304 5,851,214 4,491,032 4,657,068 6,998,840 Library 3,580,553 3,125,090 2,601,164 2,426,448 2,464,463 Capital outlay 23,894,085 14,328,396 47,887,675 11,067,756 4,819,364 Debt service:
Principal 3,907,790 2,545,598 2,061,323 1,708,629 1,477,188 Interest and fiscal charges 630,463 851,968 612,391 488,363 548,472 Total expenditures 143,794,678 113,499,997 136,394,620 90,608,753 82,950,194 Excess of revenues over (under) expenditures 5,890,043 19,813,583 (13,336,906) 4,613,162 3,135,025 Other financin
g sources (uses)
Proceeds from sale of property - - - 1,425,889 89,657 Inception of finance purchase agreement 3,668,445 - 3,275,547 362,413 - Inception of lease liability 2,546,260 384,011 196,119 - - Contributions to other governments - - - - - Transfers in 23,060,757 11,455,770 69,860,227 14,158,728 12,557,880 Transfers out (25,976,466) (13,212,484) (23,491,596) (11,759,357) (10,906,728) Total other financing sources (uses) 3,298,996 (1,372,703) 49,840,297 4,187,673 1,740,809 Net change in fund balances 9,189,039$ 18,440,880$ 36,503,391$ 8,800,835$ 4,875,834$ Restatements -$ -$ -$ 3,660,669$ -$ Debt service as a percentage of non-capital
expenditures 1
3.8% 3.4% 3.0% 2.8% 2.6%
NOTE:
1 Calculated by dividing the sum of principal and interest by noncapital expenditures which are total expenditures less a) capital outlay (to extent capitalized for the government-wide statements of net position; and b) expenditures for capitalized assets contained within the functional expenditure categories.
City of Redlands
Schedule 4
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
2 The City's tax revenue was bolstered by the passage of a new one-cent local sales tax and a favorable tax reallocation from its Amazon fulfillment center.
210
2019 2018 2017 2016 2015
Revenues
Taxes 56,188,843$ 53,608,771$ 51,196,332$ 49,641,089$ 46,615,173$ Licenses and permits 9,363,446 8,249,522 8,482,996 7,321,567 11,582,473 Intergovernmental 4,290,382 4,029,164 4,266,267 3,637,854 5,602,252 Charges for services 9,912,278 8,100,020 7,484,890 7,469,738 7,283,095 Use of money and property 1,823,854 185,610 191,541 717,504 431,301 Other miscellaneous 1,930,916 4,866,979 3,958,621 3,785,796 1,900,979 Total revenues 83,509,719 79,040,066 75,580,647 72,573,548 73,415,273 Expenditures
Current:
General government 14,702,684 12,830,680 12,351,772 12,915,590 11,041,353 Public safety 45,514,084 45,246,205 42,755,811 40,337,356 37,891,668 Culture and recreation 3,286,739 2,870,721 2,611,210 2,481,223 2,791,661 Highway and streets 6,565,573 7,033,817 5,695,084 5,034,090 6,107,137 Library 2,158,580 1,989,717 1,942,607 1,909,442 1,824,593 Capital outlay 10,307,277 6,132,826 15,476,158 11,481,823 23,146,625 Debt service:
Principal 2,688,630 3,043,767 3,115,653 3,947,223 3,701,474 Interest and fiscal charges 665,241 812,002 976,711 1,158,384 1,343,002 Total expenditures 85,888,808 79,959,735 84,925,006 79,265,131 87,847,513 Excess of revenues over (under) expenditures (2,379,089) (919,669) (9,344,359) (6,691,583) (14,432,240) Other financin
g sources (uses)
Proceeds from sale of property 252,613 1,975,203 6,272,810 311,189 16,083 Inception of finance purchase agreement - - - - - Inception of lease liability - - - - - Contributions to other governments - - - - (100,919) Transfers in 16,569,439 19,326,814 15,430,085 15,911,839 29,941,931 Transfers out (13,525,085) (9,788,204) (11,558,209) (9,720,247) (13,980,425) Total other financing sources (uses) 3,296,967 11,513,813 10,144,686 6,502,781 15,876,670 Net change in fund balances 917,878$ 10,594,144$ 800,327$ (188,802)$ 1,444,430$ Restatements -$ -$ -$ -$ -$ Debt service as a percentage of non-capital
expenditures 1
4.4% 5.2% 5.9% 7.5% 8.1%
NOTE:
1 Calculated by dividing the sum of principal and interest by noncapital expenditures which are total expenditures less a) capital outlay (to extent capitalized for the government-wide statements of net position; and b) expenditures for capitalized assets contained within the functional expenditure categories.
City of Redlands
Schedule 4
Changes in Fund Balances of Governmental Funds (Continued) Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal Years
2 The City's tax revenue was bolstered by the passage of a new one-cent local sales tax and a favorable tax reallocation from its Amazon fulfillment center.
211
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212
Fiscal Year Taxable Total
Ended Less: Assessed Direct Tax
June 30 Secured Unsecured Exemptions Value Rate
2024 12,812,282$ 410,488 $ (68,251) $ 13,154,519 $ 0.21758 $ 2023 11,786,415 339,774 (70,106) 12,056,083 0.21821 2022 11,148,507 342,259 (72,875) 11,417,891 0.21869 2021 10,700,129 358,630 (73,396) 10,985,363 0.21864 2020 10,187,750 361,653 (74,204) 10,475,199 0.21874 2019 9,564,308 387,527 (74,744) 9,877,091 0.21877 2018 9,090,915 328,121 (76,265) 9,342,771 0.21877 2017 8,616,414 309,224 (76,808) 8,848,830 0.21877 2016 8,112,897 337,359 (74,030) 8,376,226 0.21877 2015 7,725,648 316,364 (75,033) 7,966,979 0.21913 NOTE:
Source: San Bernardino County Assessor (via HdL, Coren & Cone) California Municipal Statistics, Inc.
San Bernardino County Auditor-Controller - Property Tax Division With the approval of ABX1 26, the State eliminated Redevelopment from the State of California for the Fiscal Year 2012/13 and years thereafter.
In 1978, the voters of the State of California passed Proposition 13, which limited property taxes to a total minimum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is re-assessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available, with respect to the actual market value of taxable property, and is subject to the limitations described above.
City of Redlands
Schedule 5
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
213
CATEGORY 2024 2023 2022 2021 2020
Residential 8,504,880$ 7,877,964$ 7,407,486$ 7,072,365$ 6,708,893$ Commercial 1,488,548 1,387,866 1,299,726 1,253,237 1,176,203 Industrial 1,723,267 1,444,607 1,361,167 1,326,479 1,253,275 Government 7,068 6,929 15,553 2,883 576 Institutional 21,037 22,473 21,841 20,405 18,506 Irrigated 27,649 29,799 25,897 27,275 28,199 Miscellaneous 60,190 45,389 36,104 37,025 33,513 Recreational 49,504 48,611 55,431 51,028 50,098 Vacant Land 276,303 264,095 270,853 222,964 232,018 SBE Nonunitary 626,016 634,683 654,449 686,469 686,469 Unsecured 438,308 363,771 360,182 358,629 361,653 Unknown - - - - - Total Assessed Value 13,222,770 12,126,187 11,508,689 11,058,759 10,549,403 Less: Exemptions (68,251) (70,106) (72,875) (73,396) (74,204) Taxable Assessed Value 13,154,519 12,056,081 11,435,814 10,985,363 10,475,199 Total Direct Rate 0.21758 0.21821 0.21755 0.21718 0.21732 NOTES:
Source: San Bernardino County Assessor (via HdL, Coren & Cone) In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few
exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Exempt values are not included in Total
Fiscal Years
City of Redlands
Schedule 6
Assessed Value and Estimated Actual Value of Taxable Property by Major Type Last Ten Fiscal Years
Source: HdL Coren Cone 214
CATEGORY 2019 2018 2017 2016 2015
Residential 6,246,593$ 5,935,215$ 5,643,230$ 5,355,614$ 5,102,276$ Commercial 1,085,468 1,040,344 988,145 959,063 941,128 Industrial 1,201,011 1,160,879 1,035,053 790,087 774,960 Government 548 522 513 505 1,478 Institutional 18,463 17,188 16,293 16,172 15,809 Irrigated 26,136 26,471 26,750 26,691 30,844 Miscellaneous 39,302 27,016 26,495 23,785 22,390 Recreational 49,887 49,678 32,808 32,520 31,962 Vacant Land 199,973 200,329 209,375 277,305 231,763 SBE Nonunitary 696,927 633,273 637,752 631,155 573,038 Unsecured 387,527 328,121 309,224 337,359 316,364 Unknown - - - - - Total Assessed Value 9,951,835 9,419,036 8,925,638 8,450,256 8,042,012 Less: Exemptions (74,744) (76,265) (76,808) (74,030) (75,033) Taxable Assessed Value 9,877,091 9,342,771 8,848,830 8,376,226 7,966,979 Total Direct Rate 0.21877 0.21877 0.21877 0.21877 0.21913 Fiscal Years
City of Redlands
Schedule 6
Assessed Value and Estimated Actual Value of Taxable Property by Major Type (Continued) Last Ten Fiscal Years
Source: HdL Coren Cone 215
2024 2023 2022 2021 2020
City Share of Basic Levy (1) 0.21878 0.21878 0.21878 0.21878 0.21878 Overlapping Rates: (2)
County General Fund 0.14600 0.14600 0.14600 0.14600 0.14600 County Superintendent 0.00501 0.00750 0.00740 0.00740 0.00750 Inland Empire Joint Resource Conservation District 0.00050 0.00050 0.00050 0.00050 0.00050 Educational Revenue Augmentation Fund 0.22110 0.22110 0.22110 0.22110 0.22110 Flood Control Zone 3 0.02560 0.02560 0.02560 0.02560 0.02560 Flood Control Admin 3-6 0.00088 0.00088 0.00088 0.00088 0.00088 Redlands Unified 0.30160 0.30160 0.30160 0.30160 0.30160 San Bernardino Community College 0.05130 0.05130 0.05130 0.05130 0.05130 San Bernardino Valley Municipal Water 0.02640 0.02630 0.02640 0.02640 0.02630 San Bernardino Valley Water Conservation District 0.00044 0.00044 0.00044 0.00044 0.00044 Superintendent - Physically Handicapped 0.00197 - - - - Superintendent - Development Center 0.00052 - - - - Total Proposition 13 Rate 1.00000 1.00000 1.00000 1.00000 1.00000 Redlands Debt Service - - - Redlands Unified 0.03160 0.02790 0.06620 0.03600 0.03390 San Bernardino Community College 0.04520 0.04500 0.05340 0.06510 0.05620 San Bernardino Unified 0.06880 0.08780 0.10890 0.10340 0.09690 San Bernardino Valley Municipal Water 0.12000 0.13000 0.13000 0.14250 0.14250 Total Voter Approved Rate 0.26560 0.29070 0.35850 0.34700 0.32950 Total Direct and Overlapping Rate 1.26560 1.29070 1.35850 1.34700 1.32950 City Share of 1% Levy Per Prop 13 (3) 0.21878 0.21878 0.21878 0.21878 0.21878 Redlands Debt Service - - - City Direct Rate (4) 0.21758 0.21821 0.21755 0.21718 0.21732 NOTES:
Source: San Bernardino County Assessor (via HdL, Coren & Cone) City of Redlands
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
(1) In 1978, California voters passed Proposition 13, which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies in which the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of various voter approved items.
Schedule 7
Fiscal Year
(4) Because basic and debt rates vary by tax rate area, individual rates cannot be summed. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures.
Source: HdL Coren Cone 216
2019 2018 2017 2016 2015
City Share of Basic Levy (1) 0.21878 0.21878 0.21878 0.21878 0.21878 Overlapping Rates: (2)
County General Fund 0.14600 0.14600 0.14600 0.14600 0.14600 County Superintendent 0.00750 0.00750 0.00750 0.00750 0.00750 Inland Empire Joint Resource Conservation District 0.00050 0.00050 0.00050 0.00050 0.00050 Educational Revenue Augmentation Fund 0.22110 0.22110 0.22110 0.22110 0.22110 Flood Control Zone 3 0.02560 0.02560 0.02560 0.02560 0.02560 Flood Control Zone 8 0.00088 0.00088 0.00088 0.00088 0.00088 Redlands Unified 0.30160 0.30160 0.30160 0.30160 0.30160 San Bernardino Community College 0.05130 0.05130 0.05130 0.05130 0.05130 San Bernardino Valley Municipal Water 0.02630 0.02630 0.02630 0.02630 0.02630 San Bernardino Valley Water Conservation District 0.00044 0.00044 0.00044 0.00044 0.00044 Superintendent - Physically Handicapped - - - - - Superintendent - Development Center - - - - - Total Proposition 13 Rate 1.00000 1.00000 1.00000 1.00000 1.00000 Redlands Debt Service - - - - - Redlands Unified 0.03240 0.04940 0.05240 0.05670 0.05940 San Bernardino Community College 0.04070 0.03760 0.03500 0.04030 0.03930 San Bernardino Unified 0.11260
0.10070 0.07950 0.11820 0.10810 San Bernardino Valley Municipal Water 0.15250 0.15250 0.16250 0.16250 0.16250 Total Voter Approved Rate 0.33820 0.34020 0.32940 0.37770 0.36930 Total Direct and Overlapping Rate 1.33820 1.34020 1.32940 1.37770 1.36930 City Share of 1% Levy Per Prop 13 (3) 0.21878 0.21878 0.21878 0.21878 0.21878 Redlands Debt Service - - - - - City Direct Rate (4) 0.21877 0.21877 0.21877 0.21877 0.21913 NOTES:
Source: San Bernardino County Assessor (via HdL, Coren & Cone) (4) Because basic and debt rates vary by tax rate area, individual rates cannot be summed. Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section. (3) City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ratio figures. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
(1) In 1978, California voters passed Proposition 13, which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies in which the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of various voter approved items.
Last Ten Fiscal Years
Direct and Overlapping Property Tax Rates (Continued)
City of Redlands
Schedule 7
Fiscal Year
Source: HdL Coren Cone 217
Percentage of Percentage of
Taxable Total Taxable Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
Southern California Edison Company 623,884$ 4.74% 572,703$ 7.19% Prologis LP 213,254 1.62% 84,633 1.06% Duke Realty LP* 190,340 1.45% 41,186 0.52% Redlands Owner LP* 168,300 1.28% - - NYS New LLC* 148,905 1.13% 74,217 0.93% PVT Apartments SPE LLC 140,030 1.06% - - Ashley Furniture Industries 122,817 0.93% - - BCI-OEF Redlands DC LP 112,271 0.85% - - AMB Institutional Alliance Fund III 96,545 0.73% 81,939 1.03% Teachers Insurance and Annuity Assoc. 91,362 0.69% - - 2301 W. San Bernardino Ave Invest Group - - 55,263 0.69% BRE Piper/Parkview Terrace Assoc. LLC - - 82,600 1.04% CLPF - Redlands Business Center - - 43,480 0.55% ROC II California Redlands LLC - - 62,931 0.79% PACGWL LLC - - 40,200 0.50%
Top Ten Total 1,907,708$ 14.50% 1,139,152$ 14.30% City Total Net Taxable Assessed Value 13,154,519$ 7,966,979$ * Pending appeals on parcels
Source: San Bernardino County Assessor (via HdL, Coren & Cone) Fiscal Year 2024 and Ten Years Prior
2015
City of Redlands
Schedule 8
Top Ten Principal Property Taxpayers
(in Thousands)
2024
Source: HdL Coren Cone 218
Fiscal Taxes Levied Subsequent Years
Year Ended for the Percent Collections Percent
June 30 Fiscal Year Amount of Levy of Prior Years Amount of Levy 2024 54,132,817$ 53,937,939$ 99.64% 997,801$ 54,935,740$ 101.48% 2023 49,559,611 49,351,461 99.58% 651,627 50,003,088 100.89% 2022 49,347,531 49,204,423 99.71% 691,484 49,895,907 101.11% 2021 46,298,808 46,048,794 99.46% 615,108 46,663,902 100.79% 2020 42,472,462 42,173,456 99.30% 524,343 42,697,799 100.53% 2019 41,184,840 40,950,087 99.43% 571,918 41,522,005 100.82% 2018 35,648,742 35,417,025 99.35% 585,973 36,002,998 100.99% 2017 33,814,971 33,547,833 99.21% 561,371 34,109,204 100.87% 2016 31,245,233 31,220,237 99.92% 593,784 31,814,021 101.82% 2015 30,236,660 30,224,565 99.96% 618,909 30,843,474 102.01% 2014 29,697,798 29,620,584 99.74% 834,306 30,454,890 102.55% NOTE:
Source: City of Redlands, San Bernardino County Auditor-Controller/Treasurer/Tax Collector City of Redlands
Schedule 9
Property Tax Levies and Collections 1
Last Ten Fiscal Years
2 Subsequent Years Collections of Prior Years may include delinquent tax payments from multiple prior years which are not identified separately by the County of San Bernardino. Any tax system changes required to identify and track this information would have to be developed in the County’s tax system and subsequently included in reports provided to the City. At this time it is not known when or if the County will make such a change.
1 The amounts presented include City property taxes and Redevelopment Agency tax increment, as well as amounts collected by the City and Redevelopment Agency that were passed-through to other agencies. The State dissolved the redevelopment agency effective in 2012. This resulted in the City having to issue a refund of increment received that the County deemed as excess.
Fiscal Year of Levy
2 Collected within the
Total Collections to Date2
219
Fiscal Year Taxable Notes / Total
Ended Pension Certificates of Leases / SBITAs Governmental June 30 Bonds Participation Payable Activities
2024 4,469,940$ -$ 7,785,799$ 12,255,739$ 2023 4,607,478 - 5,376,102 9,983,580 2022 6,172,956 - 5,739,328 11,912,284 2021 7,591,783 - 2,147,431 9,739,214 2020 8,869,341 - 2,148,647 11,017,988 2019 10,015,991 - 2,033,734 12,049,725 2018 12,452,070 - 2,207,364 14,659,434 2017 14,596,411 643,006 2,376,131 17,615,548 2016 16,581,841 1,466,010 2,656,784 20,704,635 2015 18,367,081 3,299,014 2,959,007 24,625,102 NOTE:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Source: City of Redlands
Governmental Activities
Last Ten Fiscal Years
Ratios of Outstanding Debt by Type
Schedule 10
City of Redlands
220
Fiscal Year Water Wastewater Solid Waste Notes / Total Total Percentage Debt Ended Revenue Revenue Revenue Leases / SBITAs Business-type Primary of Personal Per June 30 Bonds Bonds Bonds Payable Activities Government Income Capita 2024 - $ - $ - $ 13,558,549$ 13,558,549 $ 25,814,288 $ 0.84% 357 $ 2023 - - 1,660,000 13,461,929 15,121,929 25,105,509 0.88% 343 2022 - - 3,408,353 14,644,928 18,053,281 29,965,565 1.05% 409 2021 - - 5,091,347 15,514,242 20,605,589 30,344,803 1.16% 426 2020 - - 6,704,343 16,784,165 23,488,508 34,506,496 1.20% 486 2019 - - 8,247,337 18,129,060 26,376,397 38,426,122 1.54% 542 2018 - - 9,720,331 19,440,040 29,160,371 43,819,805 1.76% 618 2017 - 990,000 11,138,322 20,929,311 33,057,633 50,673,181 2.31% 732 2016 - 2,021,443 12,506,313 18,819,314 33,347,070 54,051,705 2.41% 774 2015 1,195,000 3,024,098 13,834,309 16,429,544 34,482,951 59,108,053 2.63% 847 Business-type Activities
Last Ten Fiscal Years
Ratios of Outstanding Debt by Type (Continued)
City of Redlands
Schedule 10
221
Fiscal Year Taxable Accumulated Net Percent of
Ended Pension Certificates of Resources to General Assessed Per June 30 Bonds Participation Total Repay Principal Bonded Debt Value 1 Capita 2024 4,470 $ - $ 4,470$ 200 $ 4,270 $ 0.03% 59 $ 2023 4,607 - 4,607 185 4,422 0.04% 60 2022 6,173 - 6,173 1,620 4,553 0.04% 62 2021 7,592 - 7,592 1,480 6,112 0.06% 86 2020 8,869 - 8,869 1,520 7,349 0.08% 104 -
2019 10,016 - 10,016 1,383 8,633 0.10% 122 -
2018 12,452 - 12,452 2,575 9,877 0.13% 139 -
2017 14,596 643 15,239 2,416 12,823 0.17% 185 -
2016 16,582 1,466 18,048 2,265 15,783 0.21% 232 -
2015 18,367 3,299 21,666 2,129 19,537 0.27% 280 -
NOTE:
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
Outstanding General Bonded Debt
City of Redlands
Ratio of General Bonded Debt Outstanding
(In Thousands, except Per Capita)
As a result of the dissolution of the redevelopment agency in 2012, the outstanding $30,150,000 indebtedness of the former redevelopment agency was transferred to the Successor Agency. As of 6/30/2023, that indebtedness has been fully satisfied.
Last Ten Fiscal Years
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).
Schedule 11
222
Net Taxable 2023-2024 Assessed Valuation 13,126,700$
Estimated
Share of
Percentage Outstandin g Overlapping
Applicable 1 Debt 06/30/24 Debt
Overlapping Tax and Assessment Debt:
San Bernardino Community College District 12.968% 905,105,266$ 117,374,051$ Redlands Unified School District 56.228% 48,943,512 27,519,958$ San Bernardino City Unified School District 0.049% 315,584,428 154,636$ City of Redlands Community Facilities District No. 2001-1 100.000% 1,960,000 1,960,000$ City of Redlands Community Facilities District No. 2003-1 100.000% 6,440,000 6,440,000$ Total Overlapping Tax and Assessment Debt 1,278,033,206 153,448,645 Overlapping General Fund Debt:
San Bernardino County General Fund Obligations 4.121% 131,565,000 5,421,794 San Bernardino County Flood Control District General Fund Obligations 4.121% 37,295,000 1,536,927 San Bernardino City Unified School District (Certificates of Participation) 0.049% 56,025,000 27,452 Redlands Unified School District (Certificates of Participation) 56.228% 21,210,000 11,925,959 Yucaipa-Calimesa Joint Unified School District (Certificates of Participation) 0.694% 43,237,273 300,067 Total Overlapping General Fund Debt 289,332,273 19,212,198 Overlapping Tax Increment Debt (Successor Agencies)
San Bernardino County Inland Valley Tax Allocation Bonds 5.470% 209,565,000 11,463,206$ Total Overlapping Tax Increment Debt 209,565,000 11,463,206 Total Gross Overlapping General Fund Debt 498,897,273 30,675,404 Total Gross Overlapping Debt 184,124,049$
Direct General Fund Debt:
City of Redlands Pension Obligations 100.000% 4,469,940 4,469,940 Total Direct General Fund Debt 4,469,940
Direct Loan/Capital Lease Debt:
I-Bank Sports Park Lease 100.000% 1,087,565$ 1,087,565$ Finance Purchase Agreements and Leases Payable 100.000% 3,701,646 3,701,646 Lease Liability 100.000% 2,941,545$ 2,941,545 $ Subscription Liability 100.000% 55,044 55,044 Total Direct General Fund Debt 2,996,589 7,785,800 Total Direct Debt 12,255,740$
Combined Total Direct and Overlapping Debt 2 196,379,789$ 1 The overlapping district's assessed valuation located within the City is divided by the total assessed valuation of the overlapping district. That percentage is multiplied by the total debt outstanding for the overlapping district resulting in the City's share of debt. 2 Excludes tax and revenue anticipation notes, enterprise revenue, and mortgage revenue.
Ratios to 2023-24 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.17%
Total Direct Debt ($3,925,485) 0.03%
Combined Total Debt 1.43%
Ratios to Redevelopment Successor Agencies Incremental Valuation ($1,622,271,373) Total Overlapping Tax Increment Debt 0.67%
Sources: Avenu Insights and Analytics
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City of Redlands. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City of Redlands boundaries and dividing it by each unit's total taxable assessed value.
City of Redlands
Direct and Overlapping Governmental Activities Debt
Schedule 12
As of June 30, 2024
This report reflects debt which is being repaid through voter-approved tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non-bonded capital lease obligations, and certificates of participation, unless provided by the City of Redlands. 223
Legal Debt Margin Calculation 2024 2023 2022 2021 2020
Assessed valuation 13,154,519$ 12,056,083,275$ 11,435,814,517$ 10,985,363,463$ 10,475,199,528$ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 3,288,630 3,014,020,819 2,858,953,629 2,746,340,866 2,618,799,882 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 493,294 452,103,123 428,843,044 411,951,130 392,819,982 Total net debt applicable to limit:
General obligation bonds - - - - - Legal debt margin 493,294$ 452,103,123$ 428,843,044$ 411,951,130$ 392,819,982$ Total debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% NOTE:
Source: San Bernardino County Assessor (via HdL, Coren & Cone) City of Redlands
California Municipal Statistics, Inc.
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt mar
gin was enacted by the State of California for local governments located within the state.
City of Redlands
Schedule 13
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year
224
Legal Debt Margin Calculation 2019 2018 2017 2016 2015
Assessed valuation 9,877,091,307$ 9,342,770,314$ 8,925,637,991$ 8,450,256,632$ 8,042,012,336$ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 2,469,272,827 2,335,692,579 2,231,409,498 2,112,564,158 2,010,503,084 Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 370,390,924 350,353,887 334,711,425 316,884,624 301,575,463 Total net debt applicable to limit:
General obligation bonds - - - - - Legal debt margin 370,390,924$ 350,353,887$ 334,711,425$ 316,884,624$ 301,575,463$ Total debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.0% Last Ten Fiscal Years
Fiscal Year
City of Redlands
Schedule 13
Legal Debt Margin Information (Continued)
225
Fiscal Year Less Net
Ended Water Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2024 - $ - $ - $ - $ - $ N/A 2023 - - - - - N/A 2022 - - - - - N/A 2021 - - - - - N/A 2020 - - - - - N/A 2019 - - - - - N/A 2018 - - - - - N/A 2017 - - - - - N/A 2016 19,566,403 18,802,920 763,483 1,195,000 17,925 * 0.63 2015 23,236,963 16,684,682 6,552,281 1,160,000 53,250 5.40 Fiscal Year Less Net
Ended Wastewater Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2024 - $ - $ - $ - $ - $ N/A 2023 - - - - - N/A 2022 - - - - - N/A 2021 - - - - - N/A 2020 - - - - - N/A 2019 - - - - - N/A 2018 9,689,226 7,274,339 2,414,887 990,000 19,800 * 2.39 2017 9,483,891 7,207,159 2,276,732 960,000 58,800 2.23 2016 9,981,677 7,319,389 2,662,288 925,000 91,875 2.62 2015 9,932,156 6,483,856 3,448,300 900,000 119,250 3.38 Fiscal Year Less Net
Ended Solid Waste Operating Available
June 30 Revenue Expenses Revenue Principal Interest Coverage 2024 22,070,109$ 17,987,135$ 4,082,974$ 1,660,000$ 122,500$ 2.24 2023 20,447,864 16,549,875 3,897,989 1,580,000 122,500 2.29 2022 21,106,844 14,161,410 6,945,434 1,500,000 199,500 3.21 2021 19,780,794 13,669,667 6,111,127 1,430,000 272,750 2.82 2020 19,833,178 13,639,644 6,193,534 1,360,000 342,500 3.64 2019 17,996,521 14,518,673 3,477,848 1,290,000 408,750 1.61 2018 15,507,091 11,060,050 4,447,041 1,235,000 465,700 2.05 2017 13,899,757 9,911,432 3,988,325 1,185,000 537,800 2.32 2016 13,974,604 10,437,524 3,537,080 1,145,000 572,150 2.06 2015 13,442,842 10,341,915 3,100,927 1,115,000 516,422 1.90 NOTE:
* In 2016, the Water Refunding Revenue Bonds Series 2012A matured and were paid in full. * In 2018, the Wastewater Refunding Revenue Bonds Series 2012A matured and were paid in full. * In 2024, the Solid Waste Revenue Bonds Series 2013A matured and were paid in full.
Source: City of Redlands
City of Redlands
Details regarding the City's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation expenses.
Last Ten Fiscal Years
Pledged Revenue Coverage
Debt Service
Debt Service
Water Revenue Bonds
Wastewater Revenue Bonds
Debt Service
Solid Waste Revenue Bonds
Schedule 14
226
Personal Per Capita
Calendar Population Income Personal Unemployment
Year (1) (2) (In Thousands) Income (3) Rate (4)
2023 72,696 3,702,989 $ 50,938 $ 3.6% 2022 72,259 3,086,832 42,719 5.5% 2021 73,288 2,846,286 38,837 2.9% 2020 71,154 2,607,936 36,652 7.4% 2019 70,952 2,882,851 40,631 3.0% 2018 71,441 2,790,914 39,066 3.2% 2017 70,851 2,494,168 35,203 3.1% 2016 69,211 2,195,442 31,721 3.3% 2015 68,040 2,192,657 32,226 3.0% 2014 69,814 2,243,752 32,139 4.7% 2013 69,882 2,265,714 32,422 6.0% Sources: (1) Information presented on the calendar year basis, therefore the most current full year is included (2) State of California, Department of Finance - Demographic Research Unit (3) U.S Department of Commerce U.S Census Bureau
(4) State of California, Employment Development Department City of Redlands
Schedule 15
Demographic and Economic Statistics
Last Ten Fiscal Years
227
Percent of Percent of
Number of Total Number of Total
Employer Employees Employment Employees Employment
Redlands Unified School District* 2,513 6.79% 2,894 8.74% ESRI 2,432 6.57% 2,590 7.82% Redlands Community Hospital 1,759 4.75% 1,600 4.83% Optum (Beaver Medical Group & Epic Mgmt) 1,000 2.70% 1,200 3.63% Amazon Fulfillment Center (Redlands) 888 2.40% 1,300 3.93% City of Redlands 538 1.45% 557 1.68% University of Redlands 501 1.35% 550 1.66% Loma Linda University Behavioral Medicine Ctr. 455 1.23% 350 1.06% Madison Grove Post Acute (Terracina Post Acute) 388 1.05% - Asistencia Villa Rehabilitation and Care Center 229 0.62% - The Home Depot 670 2.02%
La-Z-Boy, Inc. 449 1.36%
Total of Top Employers 10,703 28.93% 12,160 36.74% Total Employees in City(1)
37,000 33,100
County "Donut Hole" Employers (2):
Burlington Coat Factory Distribution Center 824 2.23% Amazon Fulfillment Center* 500 1.35% Target 235 0.64%
Lamps Plus DC & Store 205 0.55%
The Home Depot Distribution Center 190 0.51% Becton Dickinson (BD) Distribution 125 0.34% Kohl's Retail Store 119 0.32%
Total Employees 2,198 5.94%
*Count includes PT/FT, classified, certificated, admin.
NOTES:
(1)Total Employees in City provided by EDD Labor Force Data, represents the total employment of all employers located within City limits.
(2) The City of Redlands fully encapsulates a county pocket containing Citrus Plaza and a significant industrial area which is home to a number of distribution centers and logistics companies.
The City of Redlands has chosen to list some of the significant employers within this area as it is believed to contribute to the financial well being of the city.
Source: Avenu Insights and Analytics
2024 2015
City of Redlands
Schedule 16
Principal Employers
Fiscal Year 2024 and Ten Years Prior
Source: MuniServices LLC 228
FUNCTION/PROGRAM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Full-time employees:
City clerk's office 2 2 2 2 - 1 1 1 1 1 City manager's office 14 13 10 7 9 12 12 11 9 7 Development services 27 27 19 18 17 19 21 22 22 21 Finance 33 31 28 26 24 27 24 27 26 25 Fire 70 70 65 63 62 63 61 60 60 60 Human resources 13 12 11 9 7 9 9 10 8 7 Library 24 23 20 11 18 20 18 17 17 16 Management information systems - - - - - - - - - 9 Department of Innovation & Tech 16 15 12 9 12 12 10 9 10 - Municipal utilities and engineering:
Administration 26
41 36 26 30 29 33 34 34 34 Water 48 47 48 45 48 50 50 49 49 50 Wastewater 22 22 17 21 23 24 24 24 24 24 Police 142 138 134 112 117 130 126 122 122 121 Facilities & Community Services2
Administration, parks & streets 85 67 67 51 63 63 62 56 56 52 Equipment maintenance 4 5 5 10 4 4 5 5 5 6 Solid waste 49 44 42 38 39 39 33 33 33 32 Cemetery 5 5 4 4 4 4 4 4 4 4 580 562 520 452 477 506 493 484 480 469 Part-time employees 40 40 51 39 43 68 90 87 87 88 At-will employees - - - 10 - - - - - - Grant-funded employees
1 3 1 1 1 1 7 7 10 10 10 Limited Term Position - - - 1 - - 4 1 1 - 623 603 572 503 521 581 594 582 578 567 1 Includes both full & part time positions.
2 Prior to Fiscal Year 2018, the Facilities & Community Services Department was referred to as the Quality of Life Department Reorganizations in 2008 and 2016 created new departments, moved divisions and transferred employees. Historical data has been changed to reflect some but not all of these reorganizations.
Source: City of Redlands Budget
City of Redlands
Schedule 17
Full Time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years
Fiscal Years
229
FUNCTION/PROGRAM 2024 2023 2022 2021 2020
Police:
Calls for service 35,478 38,502 44,746 44,259 52,520
Emergency calls for service 1 539 665 68,761 649 808
Citations issued 4,275 2,685 2,135 4,239 6,837
Fire:
Number of incidents 12,118 11,624 11,386 10,636 10,789
Inspections performed 2,057 1,521 1,688 1,362 6,429
Building and safety:
Permits issued 2,723 3,005 2,764 2,078 2,159
Inspections performed 17,970 18,040 15,613 12,017 11,211 Parks and recreation:
Community center attendance 36,700 31,069 28,245 13,645 45,022 Senior center attendance 28,588 19,539 17,763 5,822 20,175 Joslyn center attendance2 6,810 0 870 1,206 18,257
Youth sports attendance 34,392 34,392 31,266 4,774 10,032 Adult sports attendance 7,945 7,945 7,223 6,524 2,480
Water:
Number of services 22,882 22,744 22,639 22,537 22,380
Average daily consumption
(thousands of gallons) 20,445 20,487 29,317 22,560 25,926 Solid waste:
Recycled materials (tons) 26,664 21,809 23,307 24,703 23,952 Refuse disposed (tons) 50,417 49,625 47,567 61,631 52,476 Library:
Number of volumes 150,558 152,448 149,577 148,652 146,379 1 Except for in FY 2021-22, this number indicates the total number of priority 1 calls received only. In FY 2021-22, it encompassed all levels. 2 In FY 2022-23 , the Joslyn Senior Center was closed for the duration of fiscal year for renovations.
Fiscal Years
City of Redlands
Schedule 18
Operating Indicators by Function/Program
Last Ten Fiscal Years
Source: Various City Departments 230
FUNCTION/PROGRAM 2019 2018 2017 2016 2015
Police:
Calls for service 1 52,914 54,370 40,159 47,488 55,972
Emergency calls for service 1 815 708 517 578 538
Citations issued 1 5,449 7,347 5,299 7,062 6,733
Fire:
Number of incidents 10,760 10,684 10,484 10,169 9,354
Inspections performed 1 5,821 4,075 2,827 2,186 1,974
Building and safety:
Permits issued 2,111 2,408 2,110 1,947 1,932
Inspections performed 9,431 9,381 10,015 8,293 4,486
Parks and recreation:
Community center attendance 48,500 51,000 44,725 42,625 31,238 Senior center attendance 25,109 24,970 24,415 28,675 29,415 Joslyn center attendance 22,679 20,498 21,554 23,795 21,846 Youth sports attendance 12,396 12,870 12,271 11,521 21,102 Adult sports attendance 3,200 1,800 2,830 5,760 7,200
Water:
Number of services 22,440 22,113 22,378 21,842 21,842
Average daily consumption
(thousands of gallons) 26,670 30,328 20,989 18,679 24,631 Solid waste:
Recycled materials (tons) 25,474 23,758 22,287 22,805 20,611 Refuse disposed (tons) 51,769 51,798 52,527 52,826 49,416 Library:
Number of volumes 146,173 144,173 144,887 144,122 140,667 Source: City of Redlands
Fiscal Years
City of Redlands
Schedule 18
Operating Indicators by Function/Program (Continued)
Last Ten Fiscal Years
Source: Various City Departments 231
FUNCTION/PROGRAM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Police:
Stations 1 1 1 1 1 1 1 1 1 1 Sub-stations 1 1 1 1 1 1 2 2 2 2 Fire:
Fire stations 4 4 4 4 4 4 4 4 4 4 Public works:
Streets (miles) 302 302 300 300 368 368 368 319 316 316 Traffic signals (city-owned) 74 74 73 73 73 72 69 68 68 68 Parks and recreation:
Parks (acreage) 313 313 333 333 333 327 295 295 295 295 Groves (acreage) 184 184 199 199 199 180 164 164 159 159 Community centers 3 3 3 3 3 3 3 3 3 3 Water:
Water mains (miles) 427 427 400 400 388 388 388 385 386 386 Maximum daily production capacity
(thousands of gallons) 56,500 34,900 34,900 34,900 55,000 55,000 55,000 55,000 55,000 55,000 Non Potable Water
Water mains (miles) 34 34 34 34 34 34 34 34 33 32 Maximum daily production capacity
(thousands of gallons) 5,600 4,100 4,100 4,100 14,000 4,500 4,500 4,500 4,500 4,500 Wastewater:
Sewers (miles) 250 250 247 247 245 245 245 245 245 245 Daily capacity of wastewater plant
(thousands of gallons) 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 9,500 Solid waste:
Landfill (city-owned) 1 1 1 1 1 1 1 1 1 1 Library:
Public library 1 1 1 1 1 1 1 1 1 1 Source: City of Redlands
City of Redlands
Schedule 19
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
Source: Various City Departments 232
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
December 18, 2024
To the Honorable Mayor and Members of the City Council
of the City of Redlands
Redlands, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Redlands (the “City”) for the year ended June 30, 2024, and have issued our report thereon dated December 18, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards and the Uniform Guidance, as well as certain information related to the scope and timing of our audit. We have communicated such information in our letter to you dated May 1, 2024. Professional standards also require that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the basic financial statements.
New Accounting Standards
In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections – an Amendment of GASB Statement No. 62 . The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability.
Implementation of this Statement had a moderate effect on the City’s financial statements for the fiscal year ended June 30, 2024.
We noted no other new accounting policies were adopted and the application of existing policies was not changed during 2024. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected.
The most sensitive estimates affecting the City’s financial statements were:
Management’s estimate of the depreciation on capital assets is based on the industry standard and past experience on actual useful life of the asset groups. We evaluated the key factors and assumptions used to develop the depreciation on capital assets in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the net other postemployment benefits (“OPEB”) liability is based on the actuarial valuation on total OPEB liability. We evaluated the key factors and assumptions used to develop the total OPEB liability in determining that it is reason able in relation to the financial statements taken as a whole.
To the Honorable Mayor and Members of the City Council
of the City of Redlands
Redlands, California
Management’s estimate of the net pension liabilities is based on the proportionate share of actuarial valuation on total pension liability and the proportionate share of the fiduciary net position for CalPERS plans. We evaluated the key factors and assumptions used to develop the net pension liability in determining that it is reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were:
Note 1 – Summary of Significant Accounting Policies
Note 3 – Leases Receivable
Note 11 – Pension Plans
Note 12 – Other Postemployment Benefits
Note 14 – Fund Balance and Net Position
Note 20 – Changes to or within the Financial Reporting Entity Note 21 – Commitments and Contingencies
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report.
We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the management representation letter dated December 18, 2024.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the governmental unit’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.
To the Honorable Mayor and Members of the City Council
of the City of Redlands
Redlands, California
Other Audit Findings or Issues
We gene
rally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
Other Matters
W
e applied certain limited procedures to the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Schedule of Changes in the Net Pension Liability and Related Ratios, the Schedule of the City’s Proportionate Share of the Net Pension Liability and Rela ted Ratios, the Schedules of the Contributions, and the Schedule of Changes in Total Other Postemployment Benefits Liability and Related Ratios, which are required supplementary information (“RSI”) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were en
gaged to report on the Combining and Individua l Nonmajor Fund Financial Statements and Budgetary Comparison Schedules, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
We we
re not engaged to report on the Introductory and Statistical Sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it.
Restriction on Use
This information is intended solely for the use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Santa Ana, California
City of Redlands
Redlands, California
Independent Accountants’ Report on
Agreed-Upon Procedures Applied to
Appropriations Limit Schedule
For the Year Ending June 30, 2024
200 E. Sandpointe Avenue, Suite 600
Santa Ana, California 92707
INDEPENDENT ACCOUNTANTS’ REPORT ON
APPLYING AGREED-UPON PROCEDURES
To the Honorable Mayor and Members of City Council
of the City of Redlands
Redlands, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Schedule of the City of Redlands, California (the “City”) for the year ending June 30, 2024. The management at the City is responsible for the Appropriations Limit Schedule.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements set forth in Section 1.5 of Article XIII-B of the California Constitution. The procedures, which were suggested by the League of Califor nia Cities and presented in the publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution were performed solely to assist you in meeting the requirements. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsib le for determining whether the procedures performed are appropriate for their purposes.
The procedures and the associated findings are as follows:
1. We obtained the completed worksheets used by the City to calculate its appropriations limit for the year ending June 30, 2024, and compared the limit and annual calculation factors that were adopted by resolution of City Council. We also compared the population and inflation options that were selected by a recorded vote of the City Council.
Finding: No exceptions were noted as a result of our procedures.
2. For the accompanying Appropriations Limit Schedule, we added the prior year’s limit to the total adjustments, and compared the resulting amount to the current year’s limit.
Finding: No exceptions were noted as a result of our procedures.
3. We compared the current year information presented in the accompanying Appropriations Limit Schedule to corresponding information in worksheets used by the City.
Finding: No exceptions were noted as a result of our procedures.
4. We compared the appropriations limit presented in the accompanying Appropriations Limit Schedule to the appropriations limit adopted by the City Council.
Finding: No exceptions were noted as a result of our procedures.
To the Honorable Mayor and Members of City Council
of the City of Redlands
Redlands, California
2 We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respective on the accompanying Appropriation Limit Schedule. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be, used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited.
Santa Ana, California
January 19, 2024
City of Redlands
Appropriations Limit Schedule
For the Year Ending June 30, 2024
3 Amount Source
A. Appropriations Limit FY 2022-2023 151,979,697$ Prior year B. Calculation Factors:
1) Population increase % 1.0012 State Department of Finance 2) Inflation increase % 1.0444 State Department of Finance 3) Total adjustment % 1.0457 (B1*B2) C. Annual Adjustment Increase 6,945,472 [A*(B3-1)] D. Other Adjustments:
1) Loss responsibility (-) - N/A 2) Transfer to private (-) - N/A 3) Transfer to fees (-) - N/A 4) Assumed responsibility (+) - N/A E. Total Adjustments 6,945,472 (C+D)
F. Appropriations Limit FY 2023-2024 158,925,169$ (A+E)
See accompanying Notes to Appropriations Limit Schedule.
City of Redlands
Notes to Appropriations Limit Schedule
For the Year Ending June 30, 2024
4 Note 1 – Purpose of Limited Procedures Review
Under Article XIIIB of the California Constitution (the Gann Spending Limita tion Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit.
Note 2 – Method of Calculation
Under Section 10.5 of Article XIIIB, fo r fiscal years beginning on or after Ju ly 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below.
Note 3 – Population Factors
A California governmental agency may use as its populatio n factor either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year 2023-2024 represents the annual percentage change in population for the County.
Note 4 – Inflation Factors
A California governmental agency may use as its inflation factor either the annual percentage change in the 4 th
quarter per capita personal income (w hich percentage is supplied by the St ate Department of Finance) or the percentage change in the local assess ment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year 2023-2024 represents the percentage change in California per capita personal income.
Note 5 – Other Adjustments
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustments for the year 2023-2024.
City Council/Financing Authority Meeting I. 2.
DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Discussion and possible action relating to the designation of Voting Delegates to represent the City at the 2025 Regional Conference of the Southern California Association of Governments (SCAG) and General Assembly (Mayor Saucedo)
MOTION:
I move to designate ____________________ to serve as the voting delegate at the 2025 Regional Conference of the Southern California Association of Governments (SCAG).
1. I move to designate _____________________ to serve as the alternate voting delegate at the 2025 Regional Conference of the Southern California Association of Governments (SCAG).
2. DISCUSSION:
The Southern California Association of Governments (SCAG) is holding its Regional Conference and General Assembly on May 1-2, 2025, at the JW Marriott Desert Springs Resort & Spa in Palm Desert, California. In order to participate in the SCAG General Assembly meeting, a delegate must be officially designated by the City. An alternate may also be designated in the event the designated delegate is unable to serve in that capacity.
This item is on the agenda to allow the City Council an opportunity to officially designate a delegate and alternate to participate in the SCAG General Assembly meeting. Additional information regarding the conference is attached for the Council’s consideration.
SUBMITTED BY:
Janice McConnell, Assistant City Manager
REVIEWED BY:
Charles M. Duggan, Jr., City Manager
PREPARED BY:
Jennifer Macias, Management Analyst
Fiscal Impact
Discussion:
The event registration and hotel information are not yet available for this conference. In 2024, the cost was $641.89 for two council members to attend.
This expense was charged to 101100-6402.
Attachments
2025 SCAG Regional Conference & General Assembly
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DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Annual Report of the Parks and Recreation Commission by Chair Douglas Gonzales and Commissioner Roy Cencirulo (Facilities and Community Services Director Crocker)
DISCUSSION:
For this evening's City Council Meeting, Parks and Recreation Chair Douglas Gonzales and Commissioner Roy Cencirulo will be presenting the Parks and Recreation Commission Annual Report.
City Council/Financing Authority Meeting I. 4.
DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Annual Report of the Airport Advisory Board by Chair Jason Golembeski (Facilities and Community Services Director Crocker) DISCUSSION:
For this evening's City Council Meeting, the chair, Jason Golembeski, will be presenting the Airport Advisory Board's Annual Report.
City Council/Financing Authority Meeting J. 1.
DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of the process to select new members to the City's Planning Commission; authorize the formation of, and
appointments to an ad hoc subcommittee of the City Council to interview Planning Commission candidates; and direct staff to prepare an ordinance formalizing the selection process for City Council consideration at a future meeting (Assistant City Manager Boatman)
MOTION:
If the City Council agrees with staff's recommendation, the following motion is provided:
I move to direct staff to bring back an ordinance formalizing the selection process for Planning Commissioners and policies related to Commissioner qualifications; and,
1. I move to authorize the formation of an ad hoc subcommittee of the City Council to review current applications, interview candidates and make recommendations to the City Council to fill the two current vacancies on the Planning Commission; and
2. I move to appoint ____________________ and ___________________ to the ad hoc subcommittee of the City Council.
3. RECOMMENDATION:
Staff recommends that the City Council provide direction to staff for the preparation of an ordinance formalizing the selection process and policy for new Commissioner qualifications to be considered at a future meeting; and authorize the formation of, and appointments to, an ad hoc subcommittee consisting of two Council members that will review current applications, interview candidates and make recommendations to the City Council to fill the two current vacancies.
DISCUSSION:
Section 2.36.020 of the Redlands Municipal Code (RMC) states: "The Planning Commission shall consist of seven (7) members appointed by the Mayor with the approval of the City Council. Each member shall serve for a four (4) year term until his or her successor is appointed." Historically, when a vacancy occurs on the Planning Commission, the Mayor has reviewed applications and recommended new commissioners to the City Council for approval, in accordance with this provision of the RMC. These recommendations have typically been placed on the Consent Calendar for City Council approval.
To enhance participation and broaden engagement in this process, staff recommends that the City Council consider appointing a subcommittee of two Council members to review applications, conduct candidate interviews, and formulate recommendations for the full Council. This approach, commonly used in other cities, could involve a subcommittee composed of the Mayor and Mayor Pro-Tem, two members appointed by the Mayor, or two members approved by the full City Council. Additionally, the Council may wish to establish guidelines or minimum qualifications for new Planning Commission members based on professional or personal expertise. Suggested qualifications could include experience in real estate development, construction, urban planning, architectural design, landscape design, or related fields. Should the Council choose to adopt minimum qualifications, staff recommends requiring that only three or four members of the Planning Commission meet these criteria, allowing for flexibility and diversity among members. Alternatively, if no minimum qualifications are adopted, staff suggests prioritizing candidates with relevant expertise through a formal policy.
Staff seeks direction from the City Council on these proposals. If the Council approves, staff will prepare a code amendment and associated resolution to formalize the selection process for Planning Commission members and establish a policy regarding background qualifications. Once direction is provided, staff will return with a draft ordinance and resolution for Council consideration. To address current vacancies, staff has also included a motion for the Council to establish an ad hoc committee immediately to consider applications already received for the two current openings on the Planning Commission. This ad hoc subcommittee would ensure that the vacancies are filled expeditiously while the broader subcommittee selection process is under development. The ad hoc subcommittee will not be subject to the Brown Act as it will be limited in scope of its tasks and duration, and will automatically dissolve upon completion of the tasks.
SUBMITTED BY:
Brian Desatnik, Development Services Director
REVIEWED BY:
Charles M. Duggan, Jr., City Manager
Janice McConnell, Assistant City Manager
Chris Boatman, Assistant City Manager
City Council/Financing Authority Meeting J. 2.
DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of a Purchase and Sale Agreement with Meritage Homes of California, Inc. for the acquisition of Assessor Parcel Numbers 0173-231-23-0000 and 0173-231-26-0000 for $100,000 and an additional appropriation in the same amount and
determination 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 Purchase and Sale Agreement with Meritage Homes of California, 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 that the City Council approve the Purchase and Sale Agreement with Meritage Homes of California, Inc. for the acquisition of property in the amount of $100,000; and
2. Approve an additional appropriation in the amount of $100,000. 3.
RECOMMENDATION:
COMMISSION RECOMMENDATION:
On April 9, 2024, the Citrus Preservation Commission recommended that the City Council approve the Purchase and Sale Agreement with Meritage Homes of California for the subject property.
STAFF RECOMMENDATION:
Staff recommends that the City Council determine that approval of the Purchase and Sale Agreement with Meritage Homes of California, Inc. is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act.
DISCUSSION:
Over the past several years, the England Grove (Grove) has been the subject of several plans for development, conservation, or alternative preservation and is currently held by the seller with a conservation easement to ensure the citrus grove is maintained on the property. The England Grove, located at the southeast corner of Palm Avenue and Alvarado Street, consists of two (2) parcels, approximately 6.82 acres in total, as well as an interest in and 15 shares of Redlands Water Company (the “Water Shares”).
The purchase price for the property is $100,000, which includes the installation of the irrigation system and replanting completed by the seller before the close of escrow. The replanting and irrigation system will be equivalent to the recent improvements made at the City’s Lugonia grove. The following is a list of salient terms of the attached purchase and sale agreement:
Purchase price of $100,000, including without limitation all of Seller’s right, title and interest in and to fifteen (15) shares of Redlands Water Company; The sale price includes 15 shares of Redlands Water Company Stock $10,000 deposit due at the opening of escrow, refundable up until waiver of contingencies;
A 60-day due diligence period; and
Closing Date shall be within the earliest of ten (10) business days after the Seller delivers notice and reasonable supporting documentation that the Citrus Planting and installation of the Irrigation System have occurred (the “Closing Contingencies”), or (b) August 25, 2025 (the “Outside Closing Date”).
As part of the sale of the England Estate in Redlands, California, 15 water shares of Redlands Water Company stock will be included in the transaction.
These water shares hold significant value in the region's agricultural landscape, as they represent access to vital water resources crucial for maintaining the estate's citrus groves. The water shares will be exchanged with the city for water through the potable system. This exchange mechanism facilitates a more efficient and regulated distribution of water resources, aligning with modern water management practices aimed at conservation and sustainability.
Moreover, the water acquired through this exchange will be delivered to the estate's grounds via a modern fan jet irrigation system. This system represents a leap forward in irrigation technology, offering precise and controlled water delivery to optimize plant health and minimize waste. By integrating modern irrigation methods with strategic water resource management, the England Estate can continue its legacy of citrus cultivation while prioritizing responsible water usage for the benefit of the environment and the community.
Determination of General Plan Conformity
The England estate in Redlands, California, holds a rich history deeply intertwined with the region's citrus industry. Established in the late 19th century during the citrus boom, the estate was one of the many sprawling groves that dotted the landscape, contributing significantly to Redlands' reputation as the "Citrus Belt." Preserving the citrus heritage on the England estate is crucial for several reasons. First, it serves as a tangible link to Redlands' agricultural past, reminding residents and visitors alike of the city's roots and the pivotal role citrus played in shaping its identity. By safeguarding this heritage, future generations can continue to appreciate and learn from the legacy of the citrus industry in Southern California.
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 for an evaluation as to its conformity with the General Plan. The proposed purchase herein for the property identified as APN 0173-231-23-0000, and 0173-231-26-0000 was submitted to the Planning Commission for evaluation on April 11, 2023.
The Planning Commission (Commission) evaluated the proposed purchase for General Plan conformity and provided its report through the adoption of a resolution (Attachment B). Through the adoption of this resolution, the Commission found that the purchase would be in conformance with the General Plan in that it is consistent with General Plan Policies 2-A.37; 2-P.22; 2-p.23; 4-P.24; 4-A.41; 6-p.1; 6-9.11; 6-p.12; and 6-A.1.
California Environmental Quality Act
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:
City Council may elect not to approve the Purchase and Sale Agreement and provide alternative direction.
STRATEGIC PLAN:
Supports Strategic Plan Priority A - Quality of Life - Strategic Objective 2 - Economic Vitality. Increase accessibility to businesses and essential services through improvements to mobility and parking.
SUBMITTED BY:
Christopher Boatman, 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:
Tricia Swope, Manager, Facilities and Community Services Department Fiscal Impact
Fiscal Year: FY 2023-24
Amount: $100,000
Discussion:
Funding for the project would be provided by the Agricultural Open Space designation of the Palmetto Grove Land Sale Proceeds. Staff has included a reallocation of the necessary funds from the Agricultural Open Space - Acquisition/Conservation Easements subcategory.
Attachments
A. Purchase and Sale Agreement Meritage Homes of California Inc.
B. Resolution No. 1667
Additional Appropriation Form
C. Property Map
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1 PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
(England Grove)
THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW
INSTRUCTIONS (this “Agreement”) is made and entered into by and between MERITAGE HOMES OF CALIFORNIA, INC. , a California corporation ( “Seller”), and the CITY OF REDLANDS, a municipal corporation organized in accordance with the laws of the State of California (“Buyer”), as of the date of last execution hereof by “Seller” or “Buyer” (the “Agreement Date”), for the purpose of setting forth the agreement of the parties and to provide instructions to FIRST AMERICAN TITLE COMPANY, in its capacity as Escrow Agent (“Escrow Agent”), with respect to the transaction contemplated by this Agreement.
R E C I T A L S
Upon and subject to the terms, covenants, and conditions of this Agreement, Seller desires to sell, transfer, and convey to Buyer, and Buyer desires to purchase and acquire from Seller, certain real property located in the City of Redland (the “City”), County of San Bernardino (the “County”), California, and legally described on Exhibit “A” attached hereto, together with all appurtenant improvements, rights, interests, easements, tenements and estates, including, without limitation all of Seller’s right, title, and interest in and to 15 shares of Redlands Water Company (collectively, the “Property”).
A G R E E M E N T
NOW, THEREFORE, in consideration of the mutual covenants contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller hereby agree, and instruct Escrow Agent, as follows:
1. PURCHASE AND SALE.
Subject to and upon all of the terms and conditions set forth in this Agreement, Seller agrees to sell, transfer, and convey to Buyer, and Buyer agrees to purchase and acquire from Seller, the Property.
2. PURCHASE PRICE AND INDEPENDENT CONSIDERATION.
2.1 Purchase Price. The purchase price of the Property (the “Purchase Price”) shall be:
One Hundred Thousand Dollars ($100,000). The Purchase Price shall be payable as follows:
2.1.1 Deposit. Within five ( 5) Business Days (as hereinafter defined) following the Agreement Date, Buyer shall deposit into Escrow (as hereinafter defined) the sum of Ten Thousand Dollars ($10,000) (which amount, together with any and all interest thereon, shall hereinafter be referred to as the “Deposit”). Until disbursed in accordance with the terms of this Agreement, Escrow Agent shall hold the Deposit in a federally insured account, subject to immediate withdrawal without penalty. The Deposit shall be paid to Seller and credited against the Purchase Price of the Property at the Closing.
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2 2.1.2 Balance. At Closing, Buyer shall pay to Seller the balance of the Purchase Price, over and above the Deposit, by wire transfer of immediately available U.S. funds, net of all prorations and adjustments as provided in this Agreement.
2.2 Independent Consideration. Ten Dollars ($10.00) of the Deposit shall be referred to in this Agreement as the “Independent Consideration.” The Independent Consideration shall be released to Seller immediately following Escrow Agent ’s receipt of the Deposit and shall be non - refundable to Buyer as independent consideration for the rights and options extended to Buyer under this Agreement, including, without limitation, the right and option to terminate this Agreement as provided therei n. In all instances und er this Agreement in which Buyer elects to terminate or is deemed to have terminated this Agreement and any of the Deposit is returned to Buyer, the Independent Consideration shall be subtracted therefrom and retained by Seller. The Independent Consideration shall not be treated as consideration given by Buyer for any purpose other than as stated in this Section 2.2.
3. OPENING OF ESCROW.
3.1 Opening. The transaction contemplated by this Agreement shall be consummated through an escrow ( “Escrow”) to be established with Escrow Agent by each of Seller and Buyer delivering to Escrow Agent a counterpart of this Agreement executed by such party (in accordance with and subject to Section 13.14 below) at the same time that such party delivers a copy thereof to the other party. The opening of escrow (the “Opening of Escrow”) shall occur when Escrow Agent receives an executed counterpart of this Agreement from each of Buyer and Seller. If the Opening of Escrow has not occurred within three (3) Business Days after Seller signs a counterpart of this Agreement and delivers it to Escrow Agent, then any offer that may result from the execution of this Agreement by Seller will be deemed not accepted and such offer and this Agreement shall be null and void. Escrow Agent shall promptly deliver to each of Buyer and Seller written notice of the date of the Opening of Escrow and, once executed by Escrow Agent, one fully executed Agreement.
3.2 Instructions. This Agreement shall constitute instructions to Escrow Agent as well as the agreement of the parties. In the event that any other printed instructions are requested of the parties by Escrow Agent and the terms thereof conflict or are inconsistent with any provision of this Agreement or any deed, instrument, or document executed by the parties hereto or delivered in connection with the transaction contemplated hereby, the provisions of this Agreement, or such deed, instrument, or document sha ll control. Without limiting the foregoing, no provision in any printed form instructions shall excuse any performance by either party at the times provided in this Agreement, extend the Closing Date, provide either party hereto with any grace period not provided in this Agreement, indemnify or excuse Escrow Agent for its negligence or willful failure to perform its duties, or give Escrow Agent and/or any broker or other third party any rights in the Deposit, and any such provision shall be deleted and deemed void and of no effect. Escrow Agent is hereby appointed and designated to act as Escrow Agent, and is instructed to deliver, pursuant to the terms of this Agreement, the documents and funds to be deposited with Escrow Agent as herein provided.
3.3 Termination. Upon any termination of this Agreement by either of the parties hereto as expressly allowed under this Agreement (including, without limitation, any deemed termination):
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3 (i) the Deposit shall be delivered by Escrow Agent to the party that this Agreement specifies is entitled thereto; (ii) all other documents, instruments, and funds delivered to Escrow Agent shall be returned to the party that delivered such items thereto; and (iii) thereafter, all of the provisions of this Agreement shall be of no further force or effect and neither party shall have any further rights or obligations hereunder, other than pursuant to any provision of this Agreement that expressly survives the termination of this Agreement, including, without limitation, any indemnity obligations of Buyer or Seller set forth in this Agreement. A copy of any notice of termination allowed under this Agreement and sent to a party shall also be sent to Escrow Age nt by the party electing to terminate.
4. ACTIONS PENDING CLOSING.
4.1 Due Diligence.
4.1.1 Property Materials . Buyer acknowledges and agrees that, as of the Agreement Date, Seller has made available to Buyer in “hard copy” form and/or via a web based “drop box” service the information and documentation relating to the Property listed on Exhibit “C- 1” attached hereto (collectively, the “Property Materials”). Buyer acknowledges and agrees that (a) Seller has not made, does not make, and specifically negates and disclaims any representations, warranties, covenants, or guaranties whatsoever regardi ng the Property Materials; (b) Seller shall have no obligation to take any action with respect to any of the Property Materials, and if Buyer delivers a Feasibility Notice (as hereinafter defined) on or prior to the Due Diligence Termination Date, then Buyer also shall be conclusively deemed to have accepted all of such materials in the state received by Buyer as of the Due Diligence Termination Date. Further, Buyer acknowledges and agrees that the Property Materials were prepared by third parties and that Property Materials and any other documents and information provided to Buyer by or on behalf of Seller are and will be furnished under the express condition that (i) Buyer shall make its independent verification of the accuracy of all information containe d therein and (ii) Buyer shall not attempt to assert any liability against Seller by reason of Seller’s having furnished such information or for the reason of any such information becoming or proving to have been incomplete, incorrect, or inaccurate in any respect.
4.1.2 Buyer’s Diligence Tests.
4.1.2.1 At all reasonable times from the later of (a) Opening of Escrow or (b) delivery to Seller of the insurance certificate specified in Section 4.1.2.2 below, and until the Due Diligence Termination Date or earlier termination of this Agreement, Buyer and its agents, consultants, contractors, and representatives shall be entitled at Buyer ’s sole cost and expense to:
(i) enter onto the Property to perform any non -intrusive physical and environmental tests, examinations, and investigations of the Property (collec tively, the “Inspection”); (ii) review all Property Materials; (iii) obtain a new boundary survey of the Property, which shall be certified to Seller, Buyer, Escrow Agent, and Title Insurer if so obtained (the “Survey”); and (iv) investigate such other matters pertaining to the Property as Buyer may desire. Buyer ’s entry onto and Inspection of the Property in accordance with the terms hereof shall not damage any of the Property in any respect and, prior to Closing, Buyer shall not conduct or permit any physically invasive testing of, on, or under any of the Property without first obtaining Seller ’s written consent (which shall be at Seller ’s sole and absolute discretion) as to the timing and scope of the work to be 17942.00158\42286672.8
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4 performed, including, without limitation, as to any Phase II environmental testing, soils borings, drilling test wells and/or otherwise sampling any previously drilled wells, and/or digging test pits; provided, however, that Seller ’s consent shall not be required to perform Phase I environmental testing. Further, notwithstanding the foregoing, before entering upon any of the Property to conduct any Inspection, Buyer first will provide Seller at least two (2) Business Days advance notice thereof so that a representative of Seller also can be present during any such Inspection. Buyer agrees to cause each Inspection report or study that is obtained by Buyer or at Buyer’s direction from a third party to be addressed to and certified (if customarily certified) to Seller, as well as to Buyer and to be delivered to Seller at the same time it is delivered to Buyer, all at Buyer ’s expense. Any entry by Buyer onto the Property shall be subject to, and conducted in accordance with, all applicable laws and with the terms and provisions set forth on Exhibit “B-2” (Inspection Conditions).
4.1.2.2 Prior to any entry onto the Property, Buyer shall deliver to Seller a currently effective certificate or certificates evidencing all insurance required in the Inspection Conditions attached hereto as Exhibit “B-2”. Such insurance shall be maintained at all times during the term of this Agreement. The provisions of this Section 4.1.2.2 shall survive the Closing or the earlier termination of this Agreement.
4.1.2.3 Buyer shall indemnify, protect, defend, and hold Seller and each of its present and former shareholders, parent companies , officers, directors, beneficiaries, members, managers, partners, employees, agents, affiliates, representatives , subsidiaries, insurers, heirs, attorneys, successors and assignees (each, an “Indemnified Party ” and collectively, the “Indemnified Parties ”) harmless for, from, and against any and all claims (including, without limitation, claims for mechanic ’s liens or materialmen ’s liens) , causes of action, demands, obligations, losses, damages, liabilities, judgments, costs, and expenses (including, without limitation, reasonable attorneys ’ fees, charges, and disbursements) (collectively, “Claims”) in connection with or arising out of any entry upon the Property or any tests, examination, and investigations of the Property carried on by or on behalf of Buyer; provided, however, that Buyer shall not be required to indemnify any Indemnified Party for any Claims (i) arising or resulting from the mere discovery of existing conditions on the Property or (ii) caused by such Indemnified Party’s gross negligence or willful misconduct. Buyer shall promptly repair any damage to any of the Property caused by its entry thereon and restore the same to materially the same condition in which it existed prior to such entry. The provisions of this Section 4.1.2.3 shall survive the Closing (and shall not be merged into the Deed or other Closing documents ) or the earlier termination of this Agreement.
4.1.2.4 Section 25359.7 of the California Health and Safety Code requires owners of nonresidential property who know or have reasonable cause to believe that a release of a Hazardous Material has come to be located on or beneath real property to provide written notice of that condition to a buyer of the real property. The only releases of the Hazardous Materials actually known to Seller, without duty of inquiry or investigation, are those specifically described as actual releases in the Property Materials delivered to Buyer. Buyer acknowledges and agrees that, prior to the Due Diligence Termination Date, Buyer shall have been provided with an adequate opportunity to, and encouraged to, retain its own consultants and experts to conduct its own inspections and examin ations of the Property and all matters relating to the Property. By its execution of this Agreement, Buyer acknowledges its receipt of the foregoing notice given pursuant 17942.00158\42286672.8
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5 to Section 25359.7 of the California Health and Safety Code and that it is aware of the benefits conferred to Buyer by Section 1542 of the California Civil Code and the risks it assumes by any waiver of its benefits thereunder. The provisions of this Section shall survive the Closing (and shall not be merged into the Deed or any other Closing documents) or the earlier termination of this Agreement.
4.1.2.5 Prior to the Due Diligence Termination Date, Title Insurer shall provide Buyer with a Natural Hazard Disclosure Statement ( “Natural Hazard Disclosure Statement”) in the form required by law. Buyer acknowledges and agrees that nothing contained in the Natural Hazard Disclosure Statement shall release Buyer from its obligation to fully investigate the condition of the Property, including, without limitation, whethe r the Property is located in any natural hazard areas, and that Buyer has the expertise to perform such investigations and will have had the opportunity to do so under the terms of this Agreement. Buyer further acknowledges and agrees that the matters set forth in the Natural Hazard Disclosure Statement may change on or prior to Closing and that Seller has no obligation to up date, modify, or supplement the Natural Hazard Disclosure Statement. The provisions of the Natural Hazard Disclosure Statement, if any, shall in no way be deemed or construed to limit the “AS-IS, WHERE-IS” nature of this Agreement. The provisions of this Section shall survive Closing and shall not be merged into the Deed or other Closing documents.
4.1.3 Buyer’s Termination Right . Buyer shall have the right at any time on or before 5:00 p.m. (California time) on the forty -fifth (45th) day following the Agreement Date (the “Due Diligence Termination Date”) to terminate this Agreement for any or no reason by delivering a written notice of such termination to Seller and Escrow Agent, in which event the Deposit shall be returned to Buyer as provided in Section 3.3 above. In the event that Buyer elects to proceed with the transaction contemplated by this Agree ment, then Buyer must indicate its unconditional approval of its feasibility review and waiver of the due diligence condition described in this Section
4.1 by delivering written notice thereof (a “Feasibility Notice”) to Seller and Escrow Agent on or prior to the Due Diligence Termination Date. In the event Buyer fails to timely give a Feasibility Notice as provided above, this Agreement and the Escrow shall automatically be deemed terminated, in which event the Deposit shall be returned to Buyer as provided in Section 3.3 above.
In the event that Buyer delivers a Feasibility Notice on or prior to the Due Diligence Termination Date, then the Deposit shall be nonrefundable to Buyer except as specifically provided otherwise in this Agreement.
4.2 Title.
4.2.1 Title Documents. Promptly following the Agreement Date, Escrow Agent shall cause First American Title Insurance Company (in such capacity, “Title Insurer”) to issue and deliver to Buyer: (a) a preliminary title report for the Property (the “Title Report”), and (b) copies of all documents referenced as exceptions therein (together with the Title Report, the “Title Documents”).
4.2.2 Buyer’s Review of Title . Buyer shall have until the Due Diligence Termination Date (the “Title Review Period ”) to review the Title Documents and Survey (if applicable) to determine Buyer’s satisfaction therewith. Seller shall have no obligation to cure or correct any matter set forth in any of the Title Documents or Survey. If Buyer delivers a Feasibility 17942.00158\42286672.8
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6 Notice, then any matters reflected in the Title Documents and/or Survey, as amended and received by Buyer as of the Due Diligence Termination Date, shall be conclusively deemed to have been approved by Buyer and shall constitute Permitted Exceptions (as hereinafter defined). In the event that the Title Report is amended or modified by Title Insurer after the Title Review Period has expired and prior to the Closing to include any title exception recorded after the date of the initial Title Report, other tha n the Permitted Exceptions and matters arising by or through Buyer , then Buyer shall have until the earliest of (a) one (1) Business Day before the Closing Date, and (b) two (2) Business Days after receipt of such amended Title Documents to either (i) terminate this Agreement by giving Seller and Escrow Agent written not ice of termination, whereupon the Deposit shall be returned to Buyer as provided in Section 3.3, or (ii) approve such exception(s) and consummate the Closing. If Buyer does not terminate th is Agreement within such time period, then, except as specifically provided otherwise in Section 4.2.3, all exceptions or matters reflected in the amended Title Documents shall be conclusively deemed to have been approved by Buyer and shall constitute Permitted Exceptions.
4.2.3 Permitted Exceptions . As used in this Agreement, the term “Permitted Exceptions” collectively shall mean the following: (a) the exceptions to title that are reflected in the Title Documents and any amendment(s) to the Title Documents that have been approved (or deemed approved) by Buyer pursuant to this Section 4.2 , including, without limitation, (i) the grants, reservations, covenants, conditions, and restrictions set forth in the Grant Deed recorded in the Official Records of San Bernardino County, Calif ornia as instrument No. 2022 -0133463, and (ii) that certain Declaration of Restrictive Use Covenant Affecting Real Property recorded in the Official Records of San Bernardino County, California as instrument No. 2022 -0137410; (b) any matters that are created by or arise from the act or acquiescence of Buyer, its affiliates, employees, agents, contractors, subcontractors, or representatives; (c) any unpaid taxes and assessments not yet delinquent (subject to the prorations in Section 5.5); (d) zoning and other governmental restrictions; (e) any additional matters that would be disclosed by an inspection or accurate ALTA/NSPS survey of the Property meeting the minimum standard detail requirements of an urban survey, as most recently adopted by ALTA/NSPS, and c ontaining all Table A items thereunder; and (f) any other matters that are approved or deemed approved by Buyer under or in connection with this Agreement or are otherwise contemplated by the express terms of this Agreement. Notwithstanding anything to the contrary contained in this Agreement, at or before Closing, Seller shall be obligated to satisfy and otherwise remove (and none of such matters shall constitute Permitted Exceptions): (A) all monetary and financial liens and encumbrances arising out of instruments executed by Seller or out of work performed by Seller or at Seller ’s direction (other than current taxes and assessments not yet due) that pertain to the Property, whether or not objected to by Buyer, and (B) any leases executed by Seller, except as otherwise approved by Buyer in its sole discretion.
4.2.4 Owner’s Title Policy . Title Insurer shall issue to Buyer at Closing, or be irrevocably committed at Closing to issue to Buyer after the Closing, an ALTA extended coverage owner’s policy of title insurance (“ALTA Extended Policy”) for the Property (a) showing fee title to the Property“ vested in Buyer, (b) with liability coverage in an amount equal to the Purchase Price, (c) with those endorsements reasonably requested by Buyer that Title Insurer has agreed prior to the Due Diligence Termination Date to iss ue at Closing , and (d) containing no exceptions other than the Permitted Exceptions and the reservations and other matters referenced or described in the Grant Deed (the “Owner’s Title Policy”). Buyer shall pay any difference in the cost of the premium for a standard 17942.00158\42286672.8
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7 ALTA owner ’s policy of title insurance and the ALTA Extended Policy and the cost of any endorsements to the Owner’s Title Policy . If a new or updated survey is required to enable the Title Company to issue the ALTA Extended Policy, Buyer shall obtain the same, at its sole cost and expense, in a timely manner so as to facilitate the issuance of the ALTA Extended Policy upon the Close of Escrow. Seller shall have no obligation to obtain any such extended coverage and/or endorsements.
4.3 Citrus Planting. As a condition to Closing, Seller shall cause Seven Hundred Eighty- Four (784) additional new navel orange citrus trees (or such other citrus trees approved by the City’s Citrus Preservation Commission) to be planted on the Property (the “Citrus Planting”).
4.4 Irrigation System. As a condition to Closing, Seller shall cause a fan jet irrigation system to be installed on the Property in order to provide irrigation to the trees located on the Property (the “Irrigation System”). City agrees that the Irrigation System may be connected to the City’s municipal water system located adjacent to the Property and need not pump water from any other source. If any approvals or authorizations needed to connect to the City ’s municipal water system are not timely obtained an d provided to the Seller, the Irrigation System need not be connected to a water source as part of the condition to Closing. However, if the Irrigation System is connected to the City’s municipal water system and this Agreement is terminated prior to Closing, then Seller shall disconnect from the City ’s municipal water system within ninety ( 90) days of the termination of this Agreement.
5. CLOSING.
5.1 Closing Date. Subject to the provisions of this Agreement, the Closing shall take place within the earlier of (a) ten (10) days after Seller delivers notice and reasonable supporting documentation that the Citrus Planting and installation of the Irrigation System have occurred (the “Closing Contingencies ”), or (b) August 25, 2025 (the “Outside Closing Date ”). Buyer acknowledges that the trees for the Citrus Planting are not currently available and that the Outside Closing Date has been established based on third -party information about future tree availability.
Accordingly, if there is a delay or inability to obtain trees and/or other materials necessary to satisfy the Closing Contingencies, then Seller shall have the right, but not the obligation, to extend the Outside Closing Date by up to ninety (90) days by delivery of written notice to Escrow Agent and Buyer at least thirty (30) days prior to the Outside Closing Date. I f, despite Seller ’s good faith efforts, any of the Closing Contingencies have not been satisfied as of the date that is fifteen (15) days prior to the Outside Closing Date, as the same may be extended by Seller as provided above, then the Purchase Agreement shall automatica lly terminate (in which event, the Deposit shall be returned to Buyer as provided in Section 3.3) unless Buyer delivers a written notice waiving all such unsatisfied Closing Contingencies on or before the date that is ten (10) days prior to the Outside Closing Date. As used herein: (i) “Closing” shall mean the execution and delivery by Seller to Escrow Agent of the Deed and the other documents to be executed and delivered by Seller hereunder and the delivery by Buyer to Escrow Agent of the balance of the Purchase Price and all documents to be exe cuted and delivered by Buyer hereunder such that Escrow Agent is unconditionally prepared and committed to proceed in accordance with Section 5.4 and Escrow Agent’s proceeding in accordance therewi th; and (ii) “Closing Date ” shall mean the date that Closing occurs.
17942.00158\42286672.8
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8 5.2 Deliveries by Seller . On or before the Closing Date, Seller, at its sole cost and expense, shall deliver or cause to be delivered to the Escrow Agent (to be held in escrow pending the Closing) the following documents and instruments, each dated as of the Closing Date and fully executed and, if appropriate, acknowledged by Seller:
5.2.1 Deed. A grant deed for the Property in the form of Exhibit “C” attached hereto (the “Deed”).
5.2.2 Non-Foreign Certification. A certification of non-foreign status in the form of Exhibit “D” attached hereto.
5.2.3 State Affidavit. A California state tax withholding certificate in accordance with the requirements of California Revenue and Taxation Code Section 18668.
5.2.4 ’Redlands Water Company Stock Certificate & Assignment Separate from Certificate. Original Stock Certificate(s) evidencing the RWC Shares to be transferred hereunder, and an Assignment Separate from Certificate in the form of Exhibit “E” attached hereto.
5.2.5 Proof of Authority . Such proof of Seller ’s authority and authorization to enter into this Agreement and the transaction contemplated hereby, and such proof of the power and authority of the individual(s) executing or delivering any instruments, documents, or certificates on behalf of Seller to act for and bind Seller as may be reasonably required by Escrow Agent or Title Insurer.
5.2.6 Other. Such other documents and instruments, signed and properly acknowledged by Seller, if appropriate, as may be reasonably required in order to effectuate the provisions of this Agreement and the Closing.
5.3 Deliveries by Buyer . On or before the Closing Date, Buyer, at its sole cost and expense, shall deliver or cause to be delivered to the Escrow Agent (to be held in escrow pending the Closing) the following funds and the following documents and instruments, each dated as of the Closing Date and fully executed and, if appropriate, acknowledged by Buyer:
5.3.1 Cash. Cash or other immediately available federal funds in an amount equal to the Purchase Price (over and above the Deposit to be credited at Closing) and Buyer ’s entire share of the Closing Costs and of the prorations pursuant to Section 5.5 below (and otherwise sufficient to close the transaction contemplated herein).
5.3.2 Proof of Authority . Such proof of Buyer ’s authority and authorization to enter into this Agreement and the transaction contemplated hereby, and such proof of the power and authority of the individual(s) executing or delivering any instruments, documents, or certificates on behalf of Buyer to act for and bind Buyer as may be reasonably required by Escrow Agent or Title Insurer.
5.3.3 Certificate of Acceptance. A duly executed Certificate of Acceptance for the Deed in the form attached to the form of Deed attached as Exhibit “C” hereto. 17942.00158\42286672.8
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9 5.3.4 Other. Such other funds and documents and instruments, signed and properly acknowledged by Buyer, if appropriate, as may reasonably be required in order to effectuate the provisions of this Agreement and the Closing.
5.4 Actions by Escrow Agent . Provided that Escrow Agent shall not have received written notice from Buyer or Seller of the termination of this Agreement in accordance with its terms, when Buyer and Seller have deposited with Escrow Agent all of the documents and funds required by this Agreement for the Closing, Escrow Agent, in the order and manner herein below indicated, shall take the following actions to effectuate the Closing:
5.4.1 Recording. Cause the Deed and any other documents customarily recorded and/or that the parties hereto may mutually direct to be recorded (or that are specifically contemplated by any of the other Closing documents) to be recorded in the official records of the County (the “Official Records”) and obtain conformed copies thereof for distribution to Buyer and Seller.
5.4.2 Funds. Disburse all funds as follows:
5.4.2.1 Pursuant to the Closing Statement (as hereinafter defined), retain for Escrow Agent ’s own account any applicable escrow/closing fees and costs, disburse to Title Insurer the fees and expenses incurred in connection with the issuance of the Owner’s Title Policy, and disburse to any other persons or entities entitled thereto the amount of any other Closing Costs and any other disbursements reflected on the Closing Statement;
5.4.2.2 Disburse to, or at the direction of, Seller an amount equal to the Purchase Price, less or plus the net debit or credit to Seller by reason of the prorations and allocations of Closing Costs and any other disbursements reflected on the Closing Statement or other adjustments provided for in this Agreement; and
5.4.2.3 Disburse to the party who deposited the same any remaining funds in the possession of Escrow Agent after the payments pursuant to Sections 5.4.2.1 through Section 5.4.2.2 above have been completed.
5.4.3 Delivery of Documents . Deliver: (a) to Seller, one copy of all documents deposited into Escrow in connection with Closing; and (b) to Buyer, (i) one original of all documents deposited into Escrow in connection with Closing (other than the Deed and the other documents recorded pursuant to the terms of this Agreement); and (ii) one conformed copy of each document recorded pursuant to the terms hereof. Originals of any documents recorded at Closing shall be delivered as indicated thereon after such recording.
5.5 Prorations. All real estate taxes and current assessments to which the Property is subject as of the Closing shall be prorated between Buyer and Seller as of the Closing Date based on a 365-day year and the latest available information at the time of proration (including the greatest possible discount for early payment to the extent applicable), which proration shall be final. Upon recordation of the Grant Deed, Buyer will request cancellation of the real property taxes for the Property pursuant to California Revenue and Taxation Code Section 4986. 17942.00158\42286672.8
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10 5.6 Closing Costs. Each party shall pay its own costs and expenses arising in connection with Closing (including, without limitation, its own attorneys ’ and advisors ’ fees, charges, and disbursements), except the following costs (the “Closing Costs”), which shall be allocated between the parties as follows(in addition to any other costs and expenses specifically allocated to the parties elsewhere in this Agreement):
5.6.1 Seller Costs. Seller shall pay for the following items: (i) Seller’s prorations pursuant to Section 5.5; (ii) one -half (1/2) of Escrow Agent ’s escrow/closing fees; (iii) fees and documentary transfer tax for recording the Deed; (iv) the portion of the Owner ’s Title Policy premium attributable to ALTA standard form coverage in the amount of the Purchase Price; and (v) Seller’s attorneys’ fees.
5.6.2 Buyer Costs. Buyer shall pay for the following items: (i) Buyer’s prorations in accordance with Section 5.5; (ii) one-half (1/2) of Escrow Agent’s escrow/closing fees; (iii) the costs of any financing utilized by Buyer, if any; (iv) the balance of the Owner ’s Title Policy premium over and above the amount payable by Seller pursuant to Section 5.6.1 above and the cost of any endorsements to the Owner ’s Title Policy; (v) the cost of any Survey; and (vi) Buyer ’s attorneys’ fees.
5.7 Closing Statement. On or before the Closing Date, Escrow Agent shall deliver to each of the parties for their review and approval a preliminary closing statement (the “Preliminary Closing Statement”) that sets forth: (a) the Purchase Price payable at Closing and the Deposit to be credited to Buyer at Closing; (b) the proration amounts allocable to each of the parties pursuant to Section 5.5; (c) the Closing Costs allocable to each of the parties pursuant to Section 5.6, and (d) any other expenses to be paid directly to third parties pursuant to the approved Closing Statement.
Based on each of the party ’s comments, if any, regarding the Preliminary Closing Statement, Escrow Agent shall revise the Preliminary Closing Statement and deliver a final, signed version of the closing statement to each of the parties at the Closing (the “Closing Statement”).
6. [INTENTIONALLY OMITTED].
7. SELLER’S REPRESENTATIONS AND WARRANTIES.
7.1 Representations and Warranties. Seller represents and warrants to Buyer as follows:
7.1.1 Due Organization. Seller is a corporation duly incorporated, validly existing, and in good standing under the laws of the State of California.
7.1.2 Seller’s Authority; Validity of Agreements. Seller has full right, power, and authority to sell the Property to Buyer as provided in this Agreement and to carry out its obligations hereunder. The individual(s) executing this Agreement and the instruments referenced herein on behalf of Seller has /have the legal power, right, and actual authority to bind Seller to the terms hereof and thereof. This Agreement is, and all other instruments, documents, and agreements to be executed and delivered by Seller in connection with this Agreement shall be, duly authorized, executed, and delivered by Seller and the valid, binding, and enforceable obligations of Seller (except as enforcement may be limited by bankruptcy, insolvency, or similar laws) and do not, and 17942.00158\42286672.8
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11 as of the Closing Date will not, violate any provision of any agreement or judicial order to which Seller is a party or to which Seller is subject.
7.1.3 Foreign Person. Seller is not a “foreign person” as such term is defined under § 1445 of the Internal Revenue Code of 1986, as amended.
7.1.4 Litigation. To Seller ’s knowledge and except as disclosed in the Property Materials or Title Documents, there are no (a) actions, investigations, suits, or proceedings pending or threatened that affect the Property, the ownership or operation thereof, or the ability of Seller to perform its obligations under this Agreement or (b) judgments, orders, awards, or decrees currently in effect against Seller with respect to the ownership or operation of the Property that have not been fully discharged prior to the Effective Date hereof.
7.1.5 No Violations of Environmental Laws . To Seller ’s knowledge and except as disclosed in the Property Materials or Title Documents: (a) the Property is not currently under investigation for violation of any federal, state, or local law, ordinance, or regulation relating to industrial hygiene, worker health and safety, or to the environmental conditions in, at, on, under, or about the Property, including, but not limited to, soil and groundwater conditions; and (b) Seller has not used, generated, manufactured , stored, or disposed in, at, on, or under the Property any Hazardous Materials in violation of applicable law. Notwithstanding the foregoing, Buyer acknowledges that Seller only recently acquired the Property, the current and historical use of the Property is agricultural, and the Property may have been subject to chemicals commonl y used in agricultural.
7.2 Change in Circumstances. Notwithstanding anything to the contrary in Section 7.1:
(a) all of the representations and warranties shall be subject to any changes in facts that arise by reason of any acts or omissions of Buyer or its agents, representatives, or employees, or Buyer’s breach of this Agreement, and (b) Seller shall have the right to update such representations and warranties as of or prior to Closing based on changes in facts that do not arise from Seller’s breach of this Agreement or Seller int entionally causing any of Seller’s representations or warranties to become untrue, in which event Buyer, as its sole and exclusive remedy, will have five (5) Business Days following such notice to terminate this Agreement and receive a return of the Deposit . If Buyer fails to terminate this Agreement in writing within such 5-Business Days’ period, then Buyer shall be deemed to have accepted such representation and warranty , as modified by such update, and Seller shall have no liability for the untruth or inaccuracy of the representation or warranty as qualified by such update.
7.3 Survival; Limited Liability. The representations and warranties of Seller set forth in Section 7.1 or in any document executed and delivered by Seller for the benefit of Buyer in connection with the Closing shall survive the Closing for a period of nine (9) months after the Closing (the “Survival Period”). Buyer will not have any right to bring any action against Seller as a result of any untruth or inaccuracy of such representations and warranties unless and until the aggregate amount of all liability an d losses arising out of any such untruth or inaccuracy exceeds $10,000 (“Deductible”), and then only to the extent of such excess. In addition, in no event will 17942.00158\42286672.8
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12 Seller’s liability for all such breaches exceed, in the aggregate, $25,0001 (“Liability Cap”). In the event of any breach of any of Seller’s representations or warranties that is discovered by Buyer during the Survival Period, Buyer shall give Seller written notice of such alleged breach (a “Breach Notice”) prior to the expiration of the Survival Period and shall allow Seller the opportunity to cure any such alleged breach that is reasonably susceptible of cure prior to making any claim for damages under this Agreement, in each case, as more particularly set forth below. In the event that Seller elects, by written notice to Buyer (an “ Election Notice”) within ten (10) Business Days of receipt of any Breach Notic e, to cure any such breach that is reasonably susceptible of cure, Seller shall have a period of time (“ Seller’s Cure Period ”) equal to thirty (30) days (as such period shall be extended for such time as may be reasonably necessary to cure any such breach that is not reasonably capable of cure within such initial thirty (30) -day period as long as Seller continues to diligently prosecute cure until completion) to attempt to cure such breach prior to Buyer making a claim for damages under this Agreement with respect thereto. In the event Seller delivers an Election Notice to Buyer, Buyer shall allow Seller to have reasonable access to the Property and shall reasonably cooperate with Seller (at no out-of-pocket cost or expense to Buyer) to allow Seller to prosecute the cure of the applicable breach during Seller’s Cure Period. Buyer waives all rights and remedies with respect to all breaches, if any, not alleged in a Breach Notice delivered during the Survival Period as set forth above. Seller shall have no liability with respect to any of Seller’s representations, or warranties herein or in any document executed and delivered by Seller for the benefit of Buyer in connection with a Closing if, prior to the Closing, Buyer has actual knowledge (from whatever source, including, without limitation, as a result of Buyer's due diligence, or in any Property Materials or Title Documents , or written disclosure by Seller or Seller's agents and employees) of any breach of a representation or warranty of Seller herein or i n any document executed and delivered by Seller for the benefit of Buyer in connection with Closing, or Buyer obtains actual knowledge (from whatever source, including, without limitation, as a result of Buyer’s due diligence, or in any Property Materials or Title Documents , or written disclosure by Seller or Seller’s agents and employees) that contradicts any of Seller’s representations and warranties herein, and Buyer nevertheless consummates the transaction contemplated by this Agreement. Any provision providing that it survives the Closing will survive each Closing without limitation unless a specified period is otherwise provided in this Agreement. In no event shall Buyer seek or obtain, or be entitled to seek or obtain, speculative, special, punitive, consequential, exemplary, lost profits or diminution in value damages against Seller due to any breach of a representation or warranty by Seller, or any breach or default by Seller under this Agreement; provided, however, that the foregoing shall not pro hibit Buyer from seeking any other actual damages subject to the terms and conditions of this Agreement. Notwithstanding the foregoing or anything to the contrary in this Agreement, none of the limitations set forth in this Section 7.3 or Article 9, below , including, without limitation, the Survival Period, Deductible, Liability Cap or Seller’s Cure Period, shall be applicable to claims arising from the fraud or intentional misrepresentation of Seller (collectively “Excluded Claims”). This Section 7.3 shall survive Closing.
7.4 Seller’s Knowledge. For purposes of this Agreement and any document delivered at Closing, whenever the phrase “to Seller’s knowledge,” or the “knowledge” of any Seller or words of similar import are used, they shall be deemed to refer to facts within the actual knowledge o nly
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13 of Johanna Crooker and no others, at the times indicated only, without duty of inquiry whatsoever.
Buyer acknowledges and agrees that the individual named above is named solely for the purpose of defining and narrowing the scope of Seller’s knowledge and not for the purpose of imposing any liability on or creating any duties running from such individual to Buyer. Buyer covenants that it will bring no action of any kind against such individual, any shareholder, partner or member of Seller, as applicable, or related to or arising out of the foregoing representations and warranties of Seller. This Section 7.4 shall survive each Closing or any termination of this Agreement.
8. BUYER’S REPRESENTATIONS AND WARRANTIES.
8.1 Representations and Warranties. Buyer represents and warrants to Seller as follows:
8.1.1 Due Organization. Buyer is a municipal corporation duly organized, validly existing, and in good standing under the laws of the State of California.
8.1.2 Buyer’s Authority; Validity of Agreements. Buyer has full right, power, and authority to purchase and acquire the Property from Seller as provided in this Agreement and to carry out its obligations hereunder. The individual(s) executing this Agreement and the instruments referenced herein on behalf of Buyer has/have the legal power, right, and actual authority to bind Buyer to the terms hereof and thereof. This Agreement is, and all instruments, documents, and agreements to be executed and delivered by Buyer in connection with this Agreement shall be, duly authorized, executed, and delivered by Buyer and shall be valid, binding, and enforceable obligations of Buyer (except as enforcement may be limited by bankruptcy, insolvency, or similar laws) and do not, and as of the Closing Date will not, violate any provision of any agreement, law, statute, ordinance, rule, regulation, or judicial order to which Buyer is a party or to which Buyer is subject.
8.2 Survival. All of the representations and warranties of Buyer set forth in this Agreement shall not survive the Closing.
9. AS-IS AND RELEASE.
9.1 As-Is. Buyer acknowledges and agrees that Buyer is a sophisticated purchaser of real property and is familiar with real property of which the Property is a type and, other than the representations and warranties expressly stated in Section 7.1 or in the instruments executed and delivered by Seller at Closing (the “Express Representations”), Seller has not made, does not make, and specifically negates and disclaims any representations, warranties, promises, covenants, agreements, or guaranties of any kind or character whatsoever, whether express or implied, oral or written, past, present, or future, of, as to, concerning, and/or with respect to the Property Materials, the Title Documents, and/or the Property, including, without limiting the generality of the foregoing; (a) the value, nature, quality, or condition of the Property, including, without limitation, the water, soil, and geology; (b) the income to be derived from the Property; (c) the suitability of the Property for any and all activities and uses that Buyer may desire to conduct thereon; (d) the compliance of or by the Property or its operation with any laws, rules, ordinances, or regulations of any governmental authority; (e) the habitability, merchantability, marketability, profitability, or fitness for a particular purpose of the Property; (f) the m anner or quality of the construction or materials, if any, heretofore incorporated into the Property; (g) the manner, quality, state of repair, 17942.00158\42286672.8
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14 or lack of repair of the Property; (h) compliance with any environmental protection, pollution, land use, zoning, development, or regional impact laws, rules, regulations, orders, or requirements, including, without limitation, those pertaining to Hazardou s Materials (as defined below); (i) the existence in or on the Property of any Hazardous Materials; (j) the content, suitability, and/or sufficiency of any plans, plats, drawings, specifications, reports, studies, agreements, and/or documents with respect to the Property (including, without limitation, any of the foregoing listed items delivered as part of the Property Materials and/or assigned at or in connection with Closing); or (k) any other matter with respect to the Property Materials, the Title Docum ents, and/or the Property. Buyer further acknowledges and agrees that, except for the Express Representations: (i) Buyer is relying entirely on Buyer ’s own investigations and examinations as to the physical condition and every other aspect of the Property Materials, the Title Documents, and/or the Property, including, without limitation, those matters set forth above; (ii) Buyer has performed, or will have the right to perform prior to the Due Diligence Termination Date, any and all inspections Buyer deems necessary or appropriate for Buyer to be satisfied with the acceptability of the Property; (iii) no person or entity, including, without limitation, any consultants, contractors, agents, and representatives of Seller and any governmental entity or representative, is authorized to make any representation or warranty on behalf of Seller, and Buyer agrees that it shall not attempt to assert any liability against Seller by reason of any representation, warranty, and/or information provided by any of such perso ns becoming or proving to have been incomplete, incorrect, or inaccurate in any respect; (iv) Buyer has the sole responsibility for determining the existence or nonexistence of any fact material to Buyer ’s decision to purchase the Property; and (v) Buyer i s purchasing the Property on an “AS-IS”, “WHERE-IS”, and “WITH ALL FAULTS ” basis, without any implied warranties, and Buyer accepts and agrees to bear all risks with respect to all attributes and conditions, latent or otherwise, of the Property. For purposes of this Agreement, the term “Hazardous Materials” means any wastes, materials, substances, pollutants, and other matters regulated by any federal, state, or local law, ordinance, or regulation relating to environmental conditions, including, without li mitation, soil and groundwater conditions, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Sections 9601, et seq.), the Resources Conservation and Recovery Act of 1976 (42 U.S.C. Section 6903, et seq.), the Clean Water Act (33 U.S.C. Section 1251, et seq.), the Safe Drinking Water Act (14 U.S.C. Section 1401, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. Section 5101, et seq.), and the Toxic Substance Co ntrol Act (15 U.S.C. Section 2601, et seq.), and any other federal, state or local law of similar effect.
9.2 Release. Except with respect to the Express Representations (which are subject to the terms and conditions of Section 7.2 through Section 7.4) , Seller does not warrant any of the Property to be free from defects and Buyer expressly accepts the possibility of such defects, subject only to Buyer ’s ability to terminate this Agreement prior to the expiration of the Due Diligence Termination Date as described abov e in Section 4.1.3 or upon receipt of a notice of change in circumstances pursuant to the terms and conditions of Section 7.2 . Except with respect to the Express Representations (which are subject to the terms and conditions of Section 7.2 through Section 7.4) or Excluded Claims, effective as of the Closing, and as a material inducement for Seller to enter into this Agreement, Buyer hereby fully releases each and all of the Indemnified Parties for and from any and all Claims Buyer may have now or in the future based upon the condition of the Property at or prior to the Closing, the Property Materials (including, without limitation, by reason of Seller’s having furnished such information or for the reason of any such information becoming 17942.00158\42286672.8
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15 or proving to have been incomplete, incorrect, or inaccurate in any respect), the Title Documents, and/or all other matters pertaining to the Property (including, without limitation, those matters set forth in Section 9.1). Such release applies to claims or causes of action arising at common law, under statute, or otherwise, whether sounding in contract or in tort, including, without limitation, claims or causes of action for misrepresentation or nondisclosure, provided, however, it shall not be applicable to any of the Excluded Claims. It is expressly understood and agreed that the amount of the Purchase Price reflects, and the Property is being sold by Seller and purchased by Buyer subject to the foregoing and Buyer hereby agrees that the matters released herein are not limited to matters that are known or suspected.
BUYER ACKNOWLEDGES THAT IT HAS BEEN ADVISED BY ITS LEGAL COUNSEL
AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:
“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
THAT THE CREDITOR OR RELEASING PARTY DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT
THE TIME OF EXECUTING THE RELEASE AND THAT, IF
KNOWN BY HIM OR HER WOULD HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMEN T WITH THE DEBTOR
OR RELEASED PARTY.”
BUYER BEING AWARE OF SAID CODE SECTION, AND EFFECTIVE AS OF THE
CLOSING, HEREBY EXPRESSLY WAIVES AS TO THE MATTERS RELEASED IN THE
IMMEDIATELY PRECEDING PARAGRAPH ANY RIGHT IT MAY HAVE
THEREUNDER, AS WELL AS UNDER ANY OTHER STATUTE OR COMMON LAW
PRINCIPLE OF SIMILAR EFFECT IN CONNECTION WITH THE RELEASES GIVEN IN THIS SECTION 9.
BUYER SELLER
9.3 Survival. The provisions of this Section 9 shall survive Closing and shall not be merged with the Deed or any other Closing documents.
10. DEFAULTS AND REMEDIES.
10.1 Default by Seller.
10.1.1 Prior to Closing. If Seller fails to perform when due any act required by this Agreement to be performed by Seller on or prior to the Closing Date, and provided Buyer is not then in default, then Buyer may either (a) waive the default and proceed with the Closing or, (b) if such default is not cured after five (5) Business Days’ notice to Seller and Escrow Agent, as its sole and exclusive remedy, terminate this Agreement and the Escrow, such termination to be effective upon Buyer giving written notice of t ermination to Seller and Escrow Agent, and upon such termination, Buyer shall be entitled to a return of, and Escrow Agent shall deliver to Buyer, the 17942.00158\42286672.8
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16 Deposit, as provided in Section 3.3, or (ii) bring an action within sixty (60) days of such default to compel specific performance of Seller’s obligations hereunder, thereby waiving any other legal and equitable remedies against Seller (and Buyer hereby waives any provisions of applicable law with respect to the time for commencement of an action); provided, however, that if the remedy of specific performance is not available to Buyer because Seller has affirmatively conveyed title to the Property to another party, then Buyer shall be entitled to seek its actual damages (but not incidental, consequential, exemplary, or punitive damages) directly resulting from such breach . Except as specifically provided otherwise in the immediately preceding clause (ii), in no event shall Buyer be entitled to seek or obtain money damages against Seller based on Seller’s failure or alleged failure to perform when due any act required by this Agreement to be performed by Seller on or prior to the Closing Date, Buyer hereby waiving and covenanting not to assert any right to seek or obtain any money damages (including, but not limited to, incidental, consequential, exemplary, punitive, or other money damages) resulting from Seller’s breach.
10.1.2 Following Closing. If, after the Closing, Seller shall breach any obligation that survived Closing, if any, and such breach is not cured within thirty (30) days following notice to Seller and Escrow Agent, then Buyer may seek i ts actual out of pocket damages, as its sole and exclusive remedy therefor (Buyer hereby waiving and covenanting not to assert any right to seek or obtain any incidental, consequential, exemplary, punitive, or other money damages other than actual damages); provided, however, that any breach of any representation or warranty of Seller shall be governed by Section 7.2 through Section 7.4.
10.2 Default by Buyer. Subject to the terms of the balance of this Section 10.2, if Buyer fails to perform when due any act required by this Agreement to be performed by Buyer on or prior to the Closing Date, in the time and manner set forth in this Agreement, and provided Seller is not then in default, Seller may (a) either waive the default and proceed with the Closing or, (b) if such default is not cured after five (5) Business Days’ notice to Buyer and Escrow Agent (subject to the terms of the balance of th is Section 10.2 ), as its sole and exclusive remedy, terminate this Agreement and the Escrow, in which event Escrow Agent shall deliver to Seller the Deposit, as consideration for acceptance of this Agreement, for taking Seller ’s interest in the Property off the market, and as the parties’ best estimate of Seller’s damages resulting from Buyer’s default, but not as a penalty. THE FOREGOING PROVISIONS ARE BASED ON THE FACT THAT IN THE EVENT OF BUYER ’S BREACH AS PROVIDED ABOVE, SELLER WILL BE DAMAGED AND WILL BE ENTITLED TO COMPENSATION FOR THOSE DAMAGES; BUT SUCH
DAMAGES WILL BE EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN FOR THE FOLLOWING REASONS: THE DAMAGES TO WHICH SELLER WOULD BE
ENTITLED IN A COURT OF LAW WILL BE BASED IN PART ON THE DIFFERENCE
BETWEEN THE ACTUAL VALUE OF THE PROPERTY AT THE TIME SET FOR THE
CLOSING, WHICH WILL BE BASED ON OPINIONS OF VALUE OF THE PROPERTY THAT
CAN VARY IN SIGNIFICANT AMOUNTS, AND THE PURCHASE PRICE FOR THE PROPERTY AS SET FORTH IN THIS AGREEMENT; AND IT IS IMPOSSIBLE TO PREDICT
AS OF THE EFFECTIVE DATE WHETHER THE VALUE OF THE PROPERTY WILL
INCREASE OR DECREASE AS OF THE CLOSING IN THE TIME AND MANNER SET FORTH IN THIS AGREEMENT. THEREFORE, IF BUYER DEFAULTS PRIOR TO CLOSING
AS PROVIDED ABOVE, AND THIS AGREEMENT I S TERMINATED AS PROVIDED
ABOVE, THE ESCROW SHALL BE CANCELED AND ESCROW AGENT SHALL DELIVER 17942.00158\42286672.8
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17 TO SELLER THE DEPOSIT, AS LIQUIDATED DAMAGES. THE RETENTION OF BUYER’S DEPOSIT AS LIQUIDATED DAMAGES SHALL BE SELLER ’S SOLE AND EXCLUSIVE REMEDY AGAINST BUYER IN ALL RESPECTS, EXCEPT AS PROVIDED IN SECTION 10.3 BELOW. THE LIQUIDATED DAMAGES ARE NOT INTENDED AS A PENALTY OR A FORFEITURE UNDER CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369. EXCEPT AS PROVIDED IN SECTION 10.3 BELOW, SELLER HEREBY WAIVES ALL OTHER CLAIMS,
DAMAGES AND OTHER REMEDIES, INCLUDING THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTIONS 3384, 3387 AND 338999
Buyer Initials: ____________ Seller Initials: ___________________
10.3 Post-Termination/Closing Remedies . Nothing contained in this Section 10 shall limit or prevent Seller from enforcing Buyer’s indemnity or other obligations and liabilities and/or Seller’s associated rights that survive a termination of this Agreement.
11. BROKERS.
Each of Buyer and Seller hereby represents and warrants to and agrees with each other that it has not had, and shall not have, any dealings with any third party to whom the payment of any broker’s fee, finder’s fee, commission, or other similar compensation (collectively, “Commission”) shall or may become due or payable in connection with the transaction contemplated hereby. Seller shall indemnify, defend, protect, and hold Buyer harmless for, from, and against any and all Claims incurred by Buyer by reason of any breach or inaccuracy of the representation, warranty, and agreement of Seller contained in this Section. Buyer shall indemnify, defend, protect, and hold Seller harmless for, from, and against any and all Claims incurred by Seller by reason of any breach or inaccuracy of the representation, warranty, and agreement of Buyer contained in this Section.
The provisions of this Section shall survive the Closing (and shall not be merged into the Deed or any other Closing documents) or the earlier termination of this Agreement. Buy er acknowledges that principals, officers, employees, affiliates and/or agents of Seller may be licensed real estate brokers and/or salespersons in the State of California.
12. NO JOINT VENTURE.
Nothing in this Agreement shall be deemed to constitute the creation of a joint venture or partnership relationship between Seller and Buyer, nor shall any provision of this Agreement be deemed to impose any duty or liability on either party with respect to third parties. Each party acknowledges and agrees that the other party is not a joint venturer or partner of such party in connection with the Property.
13. MISCELLANEOUS PROVISIONS.
13.1 Governing Law; Venue. This Agreement and the legal relations between the parties hereto shall be governed by and construed and enforced in accordance with the laws of the State of California, without regard to its principles of conflicts of law. Exclusive venue for a ny action brought to interpret or enforce this Agreement shall be any applicable state or federal court located in the County.
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18 13.2 Entire Agreement. This Agreement, including the exhibits attached hereto (each of which is incorporated herein by this reference), constitutes the entire agreement between Buyer and Seller pertaining to the subject matter hereof and supersedes all prior agreements, under standings, letters of intent, term sheets, negotiations, and discussions, whether oral or written, of the parties, and there are no warranties, representations, or other agreements, express or implied, made to either party by the other party in connection with the subject matter hereof except as specifically set forth herein or in the documents delivered pursuant hereto or in connection herewith.
13.3 Modification; Waiver. No supplement, modification, waiver, or termination of this Agreement shall be binding unless executed in writing by the party to be bound thereby. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.
13.4 Notices. All notices, consents, requests, reports, demands, or other communications hereunder (collectively, “Notices”) to be given any party hereto and/or such party ’s agent or representative shall be in writing and may be given personally, by registered or certified mail (return receipt requested), by electronic mail (but only if an email is provided for such party and a copy of such Notice is transmitted the same day by one of the other specified methods for giving notice), by courier, or by FedEx (or o ther reputable overnight delivery service) for overnight delivery, at the following addresses, or to such other address or such other person (in each instance, so long as located in the United States of America) as the addressee party shall have last designated by Notice to the other party and Escrow Agent:
To Seller: Meritage Homes of California, Inc.
5 Peters Canyon Road, Suite 310
Irvine, California 92606
Attention: Nick Emsiek
E-mail: [email protected]
With A Required Copy To: Meritage Homes
18655 North Claret Drive, Suite 400
Scottsdale, AZ 85255
Attention: Mel Faraoni
E-mail: [email protected]
and with an additional
required copy of any
notice of default, event of
default, breach, claim, or
demand to:
Meritage Homes Corporation
18655 North Claret Drive, Suite 400
Scottsdale, AZ 85255
Attention: General Counsel – THIS NOTICE MAY
REQUIRE IMMEDIATE ATTENTION
To Buyer: City of Redlands, a Municipal corporation
35 Cajon Street, Suite 2
PO Box 3005
Redlands, CA 92373
Attention: Mario Saucedo, Mayor
E-mail: [email protected]
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19 With A Required Copy To: Best Best & Krieger, LLP
500 Capitol Mall Suite, 2500
Sacramento, CA 95814
Attention: Todd M. Gee
E-mail: [email protected]
To Escrow Agent: First American Title Company
18500 Von Karman Avenue, Suite 600
Irvine, CA 92612
Attention: Jeanne Gould
Telephone: 949-885-2405
E-mail: [email protected]
Each Notice shall be deemed to have been delivered, given, and received for all purposes as of the date so delivered, at the applicable address (so long as delivery is evidenced by the customary courier or U.S. mail receipt, as applicable); provided that ( a) Notices received on a day that is not a Business Day shall be deemed received on the next Business Day and (b) Notices by electronic mail shall be deemed delivered on the date sent to the e -mail of the intended recipient as set forth in this Agreement ( as evidenced by the senders “sent mail ” mailbox and by the absence of an immediate delivery failure message in the sender’s “inbox”). Notice to a party shall not be effective unless and until each required copy of such Notice specified above (or as the parties may from time to time specify by notice in accordance with this Section) is given. The inability to deliver a Notice because of a changed address of which no Notice was given, or any rejection or other refusal to accept any Notice, shall be deemed to be the receipt of the Notice as of the date of such inability to deliver or rejection or refusal to accept. Any telephone numbers set forth above are provided for convenience only and shall not alter the manner of giving Notice set forth in this Section . Any Notice to be given under this Agreement may be given by legal counsel for such party giving the Notice. Notwithstanding the foregoing, if no email address is provided for a party, then the date for delivery shall be extended by the number of days t o effectuate alternate delivery of Notice so long as the Notice was transmitted on the date due.
13.5 Expenses. Subject to the provision for payment of the Closing Costs in accordance with the terms of Section 5.6 of this Agreement and to any other provision of this Agreement, whether or not the transaction contemplated by this Agreement shall be consummated, all fees and expenses incurred by any party hereto in connection with this Agreement shall be borne by such party.
13.6 Severability. Any provision or part of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall, as to such situation and such jurisdiction, be ineffective only to the extent of such invalidity and shall not affect the enforceability of the remaining provisions hereof or the validity or enforceability of any such provision in any other situation or in any other jurisdiction.
13.7 Successors and Assigns . All of the parties ’ rights, duties, benefits, liabilities, and obligations under this Agreement shall inure to the benefit of, and be binding upon, their respective successors and assigns; provided, however, that Buyer may not assign its rights or delegate its 17942.00158\42286672.8
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20 obligations hereunder without the prior written consent of Seller, which consent may be withheld by Seller for any reason and at its sole discretion, and any attempt by Buyer to assign, transfer, or encumber this Agreement shall be void and shall be a breach of this Agreement.
13.8 Headings. The Section and subsection headings of this Agreement are for convenience of reference only and shall not be deemed to modify, explain, restrict, alter, or affect the meaning or interpretation of any provision hereof.
13.9 Time of Essence . Time shall be of the essence with respect to all matters contemplated by this Agreement.
13.10 Further Assurances. In addition to the actions recited herein and contemplated to be performed, executed, and/or delivered by Seller and Buyer, Seller and Buyer agree to perform, execute, and/or deliver or cause to be performed, executed, and/or delivered at the Closing or after the Closing any and all such further acts, instruments, deeds, and assurances as may be reasonably required to consummate the transaction contemplated hereby.
13.11 Construction. As used in this Agreement, the masculine, feminine, and neuter gender and the singular or plural shall each be construed to include the other whenever the context so requires. This Agreement shall be construed as a whole and in accordance with its fair meaning, without regard to any presumption or rule of construction causing this Agreement or any part of it to be construed against the party causing the Agreement to be written. The parties acknowledge that each has had a full and fair oppor tunity to review the Agreement and to have it reviewed by counsel. If any words or phrases in this Agreement have been stricken, whether or not replaced by other words or phrases, this Agreement shall be construed (if otherwise clear and unambiguous) as if the stricken matter never appeared and no inference shall be drawn from the former presence of the stricken matters in this Agreement or from the fact that such matters were stricken.
13.12 Attorneys’ Fees. In the event that either party hereto brings an action or proceeding against the other party to enforce or interpret any of the covenants, conditions, agreements, or provisions of this Agreement, the prevailing party in such action or proceeding shall b e entitled to recover all costs and expenses of such action or proceeding, including, without limitation, attorneys’ fees, charges, disbursements, and the fees and costs of expert witnesses. If any party secures a judgment in any such action or proceeding, then any costs and expenses (including, but not limited to, attorneys’ fees and costs) incurred by the prevailing party in enforcing such judgment, or any costs and expenses (including, but not limited to, attorneys ’ fees and costs) incurred by the prevailing party in any appeal from such judgment in connection with such appeal shall be recoverable separately from and in addition to any other amount included in such judgment. The preceding sentence is intended to be severable from the othe r provisions of this Agreement, and shall survive and not be merged into any such judgment.
13.13 Business Days. As used herein, the term “Business Day” shall mean a day that is not a Saturday, Sunday, or a day on which nationally chartered commercial banks in the State of California are authorized or required by applicable law to close. In the event that the date for the performance of any covenant or o bligation under this Agreement shall fall on a day that is not a Business Day, the date for performance thereof shall be extended to the next Business Day.
Similarly, if the day for the performance of any covenant or obligation under this Agreement 17942.00158\42286672.8
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21 involving Escrow Agent or the county recorder for the County shall fall on a Business Day on which Escrow Agent or the county recorder, as applicable, is closed for business to the public, the date for performance thereof shall be extended to the next Busi ness Day on which Escrow Agent or the county recorded, as applicable, is open for business to the public.
13.14 Counterparts; Electronic Transmission . This Agreement may be executed in as many counterparts as may be deemed necessary and convenient, and by the different parties hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same instrument. The parties agree that they may reflect and confirm their agreement to be bound hereby, and their execution and delivery of this Agreement, by transmitting a signed copy hereof by facsimile or e -mail in .pdf to Escrow Agent, the other party hereto, and to the persons entitled to copies of notices to such recipient pursuant to this Agreement. Alternatively, they may fax or e -mail in .pdf to such persons only the signature page of this Agreement and any pages that have been modified from the form of this Agreement either (a) received by the faxing party from the other party or its attorneys, or (b) transmitted by the faxing party (or its attorney) to the other party hereto (in eith er such circumstance, the “Original Proposed Document”), which act shall constitute their representation and warranty that, except as reflected in such transmission, the transmitting party has executed this Agreement without change from the Original Proposed Document. The provisions of this Section with respect to e-mail shall be applicable solely with respect to this Section and shall have no effect on the provisions of Section
13.4 of this Agreement with respect to all other Notices under this Agreement.
13.15 Non-Recordation of Agreement. Buyer and Seller agree that neither this Agreement nor a copy of this Agreement nor any memorandum thereof may ever be filed of record without the other party’s prior written consent, which consent may be withheld for any or no reason in such party’s sole and absolute discretion and any attempted recordation of this Agreement in violation of the foregoing prohibition shall, at the option of the party who did not record this Agreement, render this Agreement, or such portions of this Agreement as such party shall elect, to be null, void and terminated. If either party violates the foregoing prohibition, the other party may avail itself of any remedies available to it at law or in equity.
13.16 Condition Precedent. Notwithstanding any provision contained in this Agreement to the contrary, Seller ’s obligations under this Agreement are contingent upon its receipt of the approval of the Land Committee of Seller/Seller ’s ultimate parent entity ( “Land Committee Approval”). Land Committee Approval shall be evidenced, if at all, by written notice to Buyer and Escrow Agent. If written notice of Land Committee Approval is not provided to Buyer and Escrow Agent on or before the Due Diligence Termination Date, or if Seller de livers notice that the Land Committee of Seller/Seller ’s ultimate parent entity has disapproved of this Agreement, then this Agreement will automatically be terminated, in which event the Deposit shall be returned to Buyer as provided in Section 3.3 above. No waiver of the condition set forth in this Section will be implied, but will be expressed, if at all, only by written notice from Seller specifically waiving such condition and confirming the approval of the Land Committee.
Remainder of this page intentionally left blank.
Signature page(s) follow(s).
17942.00158\42286672.8
S-1
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Agreement Date.
SELLER:
MERITAGE HOMES OF CALIFORNIA, INC.,
a California corporation
By:
Name:
Its:
Date: ______________ ____, 2025
BUYER:
CITY OF REDLANDS, a municipal corporation
organized in accordance with the laws of the State of
California
By:
Name: Mario Saucedo
Its: Mayor
ATTEST:
Jeanne Donaldson, City Clerk
Date: ______________ ____, 2025
17942.00158\42286672.8
S-2
ESCROW AGENT:
The undersigned Escrow Agent hereby accepts the foregoing Purchase and Sale Agreement and Joint Escrow Instructions, agrees to act as Escrow Agent under such agreement in strict accordance with its terms, agrees to insert as the “Date of Opening of Escrow” below, the date this Agreement was signed by both Seller and Buyer and received by Escrow Agent, and agrees to comply with the applicable provisions of the Internal Revenue Code with respect to the transactions contemplated hereby.
FIRST AMERICAN TITLE COMPANY
By:
Name: Jeanne Gould
Its: Senior Commercial Escrow Officer
Date of Opening of Escrow:
17942.00158\42286672.8
List of Exhibits – Page 1
LIST OF EXHIBITS
EXHIBIT “A” LEGAL DESCRIPTION OF PROPERTY
EXHIBIT “B-1” PROPERTY MATERIALS
EXHIBIT “B-2” INSPECTION CONDITIONS
EXHIBIT “C” DEED
EXHIBIT “D” NON-FOREIGN CERTIFICATION
EXHIBIT “E” FORM OF ASSIGNMENT SEPARATE FROM CERTIFICATE 17942.00158\42286672.8
Exhibit A – Page 1
EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
17942.00158\42286672.8
Exhibit B-1 – Page 1
EXHIBIT “B-1”
PROPERTY MATERIALS
Stock Certificate evidencing the RWC Shares
17942.00158\42286672.8
Exhibit B-2 – Page 1
EXHIBIT “B-2”
INSPECTION CONDITIONS
Buyer may perform certain inspections and investigations of the Property, at Buyer’s sole cost and expense, subject to and upon the terms and conditions set forth in the Agreement and below.
1. Buyer will comply with (and shall cause its contractors, testing companies and all other persons or entities performing any of the Inspections to comply with) all applicable laws and all licenses, authorizations, clearances, permits, certifications, approvals and inspections applicable to the Property.
2. Buyer shall cause all of its contractors, testing companies and all other persons or entities performing any of the Inspections to maintain the following insurance:
(a) Worker’s Compensation insurance covering all persons who are engaged in the performance of any of the Inspections in the form and in such amounts as are prescribed by applicable laws and Employer’s Liability Coverage, in not less than the minimum amount required by law; and
(b) Commercial general liability insurance, including, without limitation, blanket contractual and broad form property damage coverage, protecting against liability for bodily injury, death, property damage and personal injury, written on an occurrence basis, with a combined single limit of $2,000,000 and automotive liability insurance, including owned, non -owned, or rented automotive equipment used in connection with the Inspections, having a combined single limit in an amount not less than $1,000,000 per occurrence and in the aggregate.
3. All insurance described above shall be primary and non -contributory. Each insurance policy: (i) shall be issued by an insurer licensed in the State of California to issue the coverage provided by the policy; (ii) shall be issued by an insurer having an A.M. Best ’s rating (or its successor) of not less than A -VIII; (iii) shall be for a term not less than the period commencing upon the Agreement Date and expiring upon the Closing Date; and (iv) shall provide that the policy cannot be canceled as to Seller, except after the insurer gives such party thirty (30) days prior written notice of cancellation or ten (10) days prior written notice for non-payment. The insurance coverage described in this Exhibit “B” shall insure with respect to the liabilities arising out of the Inspections and shall name the Indemnified Parties as additional insureds.
4. Neither Buyer nor any of its contractors, testing companies or any other person or entity performing any Inspections of the Property shall enter the Property nor commence (or permit to be commenced) the Inspections (or any portion thereof) until a certificate or certificates of insura nce evidencing that the aforesaid insurance has been obtained and is in full force and effect has been delivered to Seller and approved by Seller.
5. Upon completion of the Inspections, Buyer will cause all waste, materials, equipment, debris, rubbish, tools, equipment and machinery introduced on the Property by Buyer or any of its contractors, testing companies or by other persons or entities performin g any of the Inspections to be removed from the Property and shall leave the Property clean and restored to the condition existing prior to the performance of the Inspections.
17942.00158\42286672.8
Exhibit B-2 – Page 2
6. Buyer shall repair any damage to the Property or surrounding areas caused by or in connection with the performance of the Inspections.
7. Seller shall not be responsible for, nor shall Seller maintain insurance coverage for, any tools, equipment, or machinery brought onto the Property in connection with the Inspections.
8. In the event Buyer encounters on the Property material reasonably believed to be a Hazardous Substance or Hazardous Materials, Buyer shall immediately stop conducting the Inspections, verbally notify Seller, and, if requested by Seller in writing, report the condition to Seller in writing.
Buyer acknowledges and agrees that the foregoing does not: (x) constitute a lease or license of the Property or any portion thereof; (y) entitle Buyer to any compensation or reimbursement from Seller in connection with any costs and expenses incurred in connection with the performance of Buyer’s Due Diligence Activities or the Inspections; or (z) constitute an agreement for the development, joint venture, ground lease, sale or other transfer of the Property or an offer to enter into any such relationship or transaction.
17942.00158\42286672.8
Exhibit C – Page 1
EXHIBIT “C”
RECORDING REQUESTED BY:
First American Title Company
WHEN RECORDED MAIL TO:
City of Redlands
PO Box 3005
Redlands, CA 92373
Attention: City Clerk
GRANT DEED
The Undersigned Grantor(s) Declare(s): DOCUMENTARY TRANSFER TAX $___________; CITY TRANSFER TAX $__________; SURVEY MONUMENT FEE $____________
[ ] computed on the consideration or full value of property conveyed, OR [ ] computed on the consideration or full value less value of liens and/or encumbrances remaining at time of sale, [ ] unincorporated area; [ ] City of ___________________, and
[ ] __________________________________
Signature of Declarant
FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby acknowledged, the undersigned, MERITAGE HOMES OF CALIFORNIA, INC., a California corporation ( “Grantor”), hereby grants to CITY OF REDLANDS, a municipal corporation, the real property in the City of Redlands, County of San Bernardino, State of California, described in Exhibit ”A” attached hereto and incorporated herein by this reference, together with all the tenements, hereditaments, easements and appurtenances, if any, thereto belonging or in anywise appertaining;
SUBJECT TO all general and special taxes and other assessments; and all covenants, conditions, restrictions, servitudes, liens, reservations, easements, rights -of-way, declarations, encumbrances and other matters of record or to which reference is made in the public records; any and all matters that an accurate survey and/or physical inspection of the property would reveal; and zoning and other restrictions, reservations, prohibitions, regulations, and requirements imposed by governmental authorities.
Signature pages follow.
17942.00158\42286672.8
Exhibit C – Page 2
IN WITNESS WHEREOF, the Grantor has executed this grant deed as of this ______ day of _________, 20___.
GRANTOR:
MERITAGE HOMES OF CALIFORNIA, INC., a
California corporation
By:
Name:
Its:
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF )SS
COUNTY OF )
On before me, , Notary Public, personally appeared
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within inst rument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature Affix appropriate seal above
17942.00158\42286672.8
Exhibit C – Page 3
FORM OF CERTIFICATE OF ACCEPTANCE
This is to Certify that the interest in real property conveyed by the Grant Deed dated ____________, 202_, from Meritage Homes of California, a California corporation, to the City of Redlands, a municipal corporation, is hereby accepted by the undersigned officer or agent on behalf of the City Council of the City of Redlands pursuant to the authority conferred by Resolution No. 7893 of the City Council of the City of Redlands adopted on July 17, 2018, and the grantee consents to recordation thereof by its duly authorized officer.
Dated: __________
By: ________________________________
Name: Charles M. Duggan, Jr.
Title: City Manager
ATTEST:____________________________
Jeanne Donaldson, City Clerk
17942.00158\42286672.8
Exhibit C – Page 4
EXHIBIT “A” TO DEED
Legal Description
17942.00158\42286672.8
Exhibit D – Page 1
EXHIBIT “D”
CERTIFICATION OF NON-FOREIGN STATUS
Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform [INSERT BUYER ENTITY], a [___________] (“Transferee”), that withholding of tax is not required upon the disposition of a U.S. real property interest by MERITAGE HOMES OF CALIFORNIA, INC., a California corporation (“Transferor”), the undersigned hereby certifies the following on behalf of Transferor:
1. Transferor is not a non-resident alien, foreign corporation, foreign partnership, foreign trust, foreign estate, or other foreign person within the meaning of § 1445 and § 7701 of the Internal Revenue Code and the treasury regulations promulgated thereunder.
2. Transferor is not a disregarded entity as defined in § 1.1445-2(b)(2)(iii).
3. Transferor’s U.S. taxpayer identification/social security number is: ____________.
4. Transferor’s business address is: ________________________.
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 penalties 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 have authority to sign this document on behalf of Transferor.
Dated this ____ day of ___________, 202__.
MERITAGE HOMES OF CALIFORNIA, INC.,
a California corporation
By:
Name:
Its:
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Exhibit E – Page 1
EXHIBIT “E”
FORM OF ASSIGNMENT SEPARATE FROM CERTIFICATE
STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE
FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto ______________________, ____________________ (_____) shares of common stock of ____________________, a _____________ corporation, standing in his/her name on the books of said Corporation represented by Certificate Number ______, and does hereby irrevocably constitute and appoint ______________________, to transfer said stock on the books of the within -named Corporation with full power of substitution.
Dated: __________________
England Grove Property
Corner of Palm Ave. and Alvarado St.
City Council/Financing Authority Meeting J. 3.
DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of Amendment No. 1 to an Operations and Maintenance Agreement with San Bernardino County
Transportation Authority and the University of Redlands (Assistant City Manager Boatman)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to approve Amendment No. 1 to an Operations and Maintenance Agreement with San Bernardino County Transportation Authority and the University of Redlands.
RECOMMENDATION:
Staff recommends the City Council approve Amendment No. 1 to an Operations and Maintenance Agreement with San Bernardino County Transportation Authority and the University of Redlands.
DISCUSSION:
In February 2021, the City Council approved an Operations and Maintenance Agreement with San Bernardino County Transportation Authority (SBCTA) and the University of Redlands (University) for the University Station serving the Arrow train. That agreement delineated the roles and responsibilities of each agency, as well as responsibilities related to insurance.
Currently, the City is responsible for all real property insurance costs related to University Station except for its betterments, for which the University is solely responsible. Amendment No. 1 will update the terms of the insurance section to provide for a 50-50 cost split between the City and SBCTA for the standard station platforms. SBCTA will now be responsible for obtaining and maintaining station platforms. SBCTA will now be responsible for obtaining and maintaining real property insurance for the standard station platforms, and the City will reimburse SBCTA for its share. The City will continue to fully insure all non-operating property at University Station as it has since the original agreement was signed in 2021.
ALTERNATIVES:
City Council may elect not to approve Amendment No. 1 to an Operations and Maintenance Agreement with San Bernardino County Transportation Authority and the University of Redlands.
STRATEGIC PLAN:
Not applicable.
SUBMITTED BY:
Christopher Boatman, Assistant City Manager
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:
Ross Wittman, Economic Development Coordinator
Fiscal Impact
Discussion:
Amendment No. 1 and the proposed cost-sharing approach for real property insurance will result in savings of approximately $6,000 annually in insurance premiums.
Attachments
Amendment No. 1 to Operation and Maintenance Agreement
2021 Operation & Maintenance Agreement
1 I:\cmo\Agreements\SBCTA - Amendment No. 1 to Agreement for University Station-FY25-0003.docx-jm
AMENDMENT NO. 1 TO AGREEMENT 20-1002255 BETWEEN THE SAN
BERNARDINO COUNTY TRANSPORTATION AUTHORITY AND THE CITY OF
REDLANDS AND THE UNIVERSITY OF REDLANDS FOR THE OPERATING AND
MAINTENANCE OF UNIVERSITY STATION
This Amendment No. 1 to Agreement 20-1002255 regarding University Station is hereby made, entered into and effective on the date the last Party signs it, by and between the San Bernardino County Transportation Authority (“SBCTA”), the City of Redlands (“CITY”), and the University of Redlands (“U of R”), all of which are collectively referred to as the “Parties,” and individually as “Party.”
WHEREAS, SBCTA, CITY , and U of R are parties to the University Station Operations and Maintenance Agreement, SBCTA Contract No.20 -1002255, dated February 8, 2022 (“AGREEMENT”), which defines the Parties’ roles and responsibility for the maintenance and security for University Station; and
WHEREAS, the Parties desire to amend the AGREEMENT to further define the roles and responsibilities of the Parties with respect to how real property insurance for University Station will be obtained and paid for.
NOW, THEREFORE, the Parties hereby mutually agree as follows:
1. The recitals above are true and correct and are hereby incorporated herein by this reference.
2. Except as specifically amended by this Amendment No. 1, all other provisions of the AGREEMENT, shall remain in full force and effect.
3. Section V , subsection 5.1, paragraph b is DELETED in its entirety and REPLACED as follows:
b. CITY shall be 100% responsible for all costs required to operate and maintain the Commuter Rail Station platform areas, including, but not limited to the cost of liability insurance, maintenance of the Standard Platforms, signage, security, perimeter lands caping, and lighting, excluding any Commuter Rail Station Betterments to be maintained pursuant to Section 6.1, Maintenance of the Commuter Rail Station Betterments.
4. Section XVI is ADDED to read as follows:
XVI.
Insurance
16.1 SBCTA shall obtain real property insurance for the Standard Platforms, the cost of which shall be shared equally between SBCTA and CITY . For example, if the insurance premium attributed to insuring the Standard Platforms at the Commuter Rail Station was determined to be $1,000 on year, then CITY shall reimburse SBCTA $500 for that year’s cost of real property insurance for the Standard Platforms.
2 I:\cmo\Agreements\SBCTA - Amendment No. 1 to Agreement for University Station-FY25-0003.docx-jm
16.2 U of R shall be responsible for securing and maintaining property insurance or self - insurance which covers the Commuter Rail Station Betterments, with coverage types and limits consistent with U of R insurance of similar assets. Pursuant to Section
6.1(a), U of R shall be responsible for 100% of the cost of insurance required under this Section 16.2. U of R shall add SBCTA as an Additional Insured on all property insurance covering said property.
16.3 CITY shall be responsible for securing and maintaining property insurance or self - insurance which covers Non-Operating Property which is not otherwise insured , by SBCTA pursuant to Section 16.1 or by U of R pursuant to Section 16.2, with coverage types and limits consistent with CITY insurance of similar assets. CITY shall be responsible for 100% of the cost of insurance required under this Section. CITY shall add SBCTA as an Additional Insured on all property insurance covering said property.
IN WITNESS WHEREOF, the authorized parties have signed below; CITY:
CITY OF REDLANDS , a municipal
corporation
By:
Mario Saucedo, Mayor
ATTEST:
Jeanne Donaldson, City Clerk
U of R:
UNIVERSITY OF REDLA NDS, a
California non-profit corporation
By:
Grace Crickette, Vice President Finance
and Administration/CFO and Treasurer
SBCTA:
SAN BERNARDINO COUNTY
TRANSPORTATION AUTHORITY
By:
Ray Marquez, Board President
Approved as to Form
Julianna K. Tillquist, General Counsel
SBCTA Contract No. 20-1002255
AGREEMENT NO. 20-1002255
BY AND AMONG
SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY
AND
CITY OF REDLANDS
AND
UNIVERSITY OF REDLANDS
FOR
UNIVERSITY STATION
OPERATIONS AND MAINTENANCE AGREEMENT
THIS AGREEMENT ("Agreement") is hereby made, entered into and effective on the date the last Party signs it , by and between the SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY ("SBCTA"), the CITY OF REDLANDS ("CITY"), and UNIVERSITY OF REDLANDS ("U of R"), collectively referred to as the "Parties," with regard to the University Station located in the CITY.
WHEREAS, the CITY and SBCTA previously entered into a Cooperative Agreement, SBCTA Contract No. C97026, dated October 1, 1996, with regard to the planning, design, construction, operation and maintenance of the Downtown Redlands Station including a commitment to make available 100 parking spaces within a quarter mile of a future rail terminal located at the University of Redlands; and
WHEREAS, the Parties entered into an Assignment, Novation and Consent Agreement, dated February 11, 2021, transferring to the U of R the CITY's obligation to construct the 100 parking spaces; and
WHEREAS, the U of R and SBCTA previously entered into a Cooperative Agreement, SBCTA Contract No. 16-1001469, dated August 6, 2016, with regard to design, construction, operation and maintenance of enhancements to the University Station ( "Commuter Rail Station") beyond the basic desig n and cost criteria established by SBCTA for the University Station; and
WHEREAS, the University Station, when fully completed, will consist of a commuter rail s tation which includes platforms that will serve the Redlands Passenger Rail Project ("RPRP"); a Parking Lot to be used for the Commuter Rail Station; and a detention basin needed for compliance with a Municipal Separate Storm Sewer System ("MS4") permit to support the Commuter Rail Station and Parking Lot; and
SBCTA Contract No. 20-1002255
WHEREAS, the Parties desire to enter into this Agreement to further define the roles and responsibilities of the Parties for the maintenance and security of the University Station ; and
WHEREAS, after this Agreement has been in effect for one year, the Parties will meet and evaluate the performance and costs of the maintenance and operations being performed under this Agreement, and will mutually agree upon any revisions needed to the Agreement ; and
NOW, THEREFORE, the Parties hereby mutually agree as follows:
I.
DEFINITIONS
1.1. Definitions. As used in this Agreement, the following terms, phrases, words and their derivations, shall have the meanings set forth herein. Words used in the present tense include the future tense, words used in the singular shall include the plural, and plural words shall include the singular. Words not specifically defined shall be given their common and ordinary meaning.
a. "Operating Property" shall refer to the real property owned by SBCTA that is used for railroad operations, including but not limite d to railroad trackage right-of-way, rails, ties and ballast, shown as Area "E" on Exhibit "A", Property. b. "Non-Operating Property" shall refer to such real property and facilities, excluding Operating Property, on which the Commuter Rail Station is situate d, shown as Area "A" on Exhibit "A", Property. Non-Operating Property shall also include the Standard Platform.
c. "Commuter Rail Station Betterments" shall refer to such facilities constructed beyond the basic design and cost criteria for a standard platform upon or adjacent to the Commuter Rail Station, shown as Area "B" on Exhibit "A", Property. d. "Standard Platform" shall refer to that certain type of rail passenger platform, the size, dimensions, and materials of which are set forth in more particular detail in Exhibit "B", Standard Platform.
e. "Station Site" shall refer to the real property purchased from the Santa Fe Railroad and/or other persons upon which the subject University Station is built, as more particularly described in Exhibit "A", Property.
f. "Commuter Rail Station" shall refer to the commuter rail passenger terminal and all Operating Property and Non- Operating Property associated therewith. The Commuter Rail Station is shown as Area "A" and Area "E" on Exhibit "A", Property, and further includes portions shown as Area "B" on Exhibit "A" which lie within the original Park Avenue right of way as shown on the Map of Lugonia Park, recorded in Book 4 of Maps, Page 50, records of San Bernardino County. g. "SCRRA" shall refer to the Southern California Regional Rail Authority. h. "Parking Lot" shall refer to the surface parking lot located within a quarter mile of SBCTA Contract No. 20-1002255
the Commuter Rail Station which will serve the Commuter Rail Station. The Parking Lot is shown as Area "C" on Exhibit "A", Property.
i. "Detention Basin" shall refer to the basin constructed for the University Station and appurtenant facilities in order to comply with the Municipal Separate Storm Sewer System permit. The Detention Basin is shown as Area "D" on Exhibit "A", Property.
II.
PURPOSE OF COOPERATIVE AGREEMENT
2.1. Maintenance and Security of the University Station. The purpose of this Agreement shall be to provide for the maintenance and security of the Commuter Rail Station , Parking Lot, and Detention Basin.
III.
OWNERSHIP OF PROPERTY
3.1. University Station Vesting of Title. The Parties agree that title to the University Station shall be held as follows:
a. SBCTA shall hold title to the Commuter Rail Station shown as Area "A" and Area "E" on Exhibit "A", Property, and further includes those portions shown as Area "B" on Exhibit "A" which lie within the original Park Avenue right of way as shown on the Map of Lugonia Park, recorded in Book 4 of Maps, Page 50, records of San Bernardino County.
b. SBCTA shall hold title to the parking lot shown as Area "C" on Exhibit "A", Property. SBCTA shall grant a real property license to the CITY for the parking lot use substantially in the form attached hereto as Exhibit “G”. c. U of R shall hold title to the Detention Basin, shown as Area "D" on Exhibit "A", Property.
d. U of R shall convey to SBCTA an easement which shall run with the land for the benefit of the Detention Basin tributary area s of the rail right of way for drainage purposes with additional covenants and restrictions largely in the form of Exhibit "F".
IV.
TERM OF AGREEMENT
4.1. Term. The term of this Agreement is hereby effective on the date the last Party signs it, and shall continue thereafter until terminated as provided for in Article XV - Termination of Agreement.
V.
COMMUTER RAIL STATION
5.1. Maintenance of Commuter Rail Station . Parties agree that CITY shall oversee the maintenance of the Commuter Rail Station platform areas. The Commuter Rail Station SBCTA Contract No. 20-1002255
platform maintenance areas are shown as Area "A", Commuter Rail Station N on- Operating Property platform areas, on Exhibit "A", Property. a. CITY shall arrange for and provide the maintenance of the Commuter Rail Station platform areas as set forth in Exhibit "C", Maintenance Schedule. b. CITY shall be 100% responsible for all costs required to operate and maintain the Commuter Rail Station platform areas, including, but not limited to, the costs of real property and liability insurance, maintenance of the Standard Platforms, signage, security, perimeter landscaping, and lighting, excluding any Commuter Rail Station Betterments to be maintained pursuant to Section 6.1, Maintenance of the Commuter Rail Station Betterments.
5.2. Commuter Rail Station Security. Parties agree that CITY shall arrange for and provide security to the Commuter Rail Station platform areas.
a. CITY shall be 100% responsible for all costs to provide security to the Commuter Rail Station platform areas.
b. CITY shall arrange for the provision of security for the Commuter Rail Station platform areas to ensure customer and vehicle safety during commuter periods.
Security shall be provided from 15 minutes before the first scheduled train until 30 minutes after the last scheduled train.
c. The "Level of Security " and other standards to establish minimum security requirements shall be jointly developed by the Parties to this Agreement and shall be consistent with the " Level of Security " provided by CITY for the Downtown Redlands Station. CITY station security responsibilities shall exclude any security inside the trains. CITY or its security contractor shall not be prevented from entering the trains or Detention Basin area if relevant to a security situation. The Parties agree to meet and confer no later than eighteen (18) months after the start of revenue service to jointly re-examine the minimum security requirements for the Commuter Rail Station platform areas.
5.3. First Two Years Costs. Notwithstanding the City's responsibility for costs in Section 5.1 and 5.2 above, SBCTA shall be responsible for 100% of the costs described therein for the first two years, commencing with the inauguration of the passenger rail service.
SBCTA's responsibility hereunder shall only apply after the exhaustion of any Parking Fee funding described in Section 7.2 . In the event City, in its sole and exclusive discretion, decides to initiate Parking Fees pursuant to Section 7.2 hereof, SBCTA’s responsibility hereunder shall be offset by any fees received by City during said first two years.
VI.
COMMUTER RAIL STATION BETTERMENTS
6.1. Maintenance of the Commuter Rail Station Betterments. U of R shall arrange for and fund security and maintenance of the Betterments. The Betterments area is shown as Area "B" on Exhibit "A", Property.
SBCTA Contract No. 20-1002255
a. U of R shall be 100% responsible for all costs to maintain the Commuter Rail Station Betterments, including, but not limited to, the costs of real property insurance, maintenance of signage, perimeter landscaping, and lighting.
VII.
PARKING LOT
7.1. Reservation of Parking. CITY shall restrict use of the Parking Lot to patrons or visitors of the University Station during operating hour s. Signage shall be posted within the parking lot notifying the public of the same.
7.2. Parking Fees. The CITY may, subject to approval by SBCTA, which approval shall not be unreasonably withheld, initially set and charge parking fees to provide funding for :
1) maintenance of the Commuter Rail Station platform areas, Parking Lot and Detention Basin; and 2) security for commuter rail patrons during operating hours. All such fees collected by the CITY shall be applied toward the CITY’s pro-rata share for the security and maintenance cost s associated with the University Station . Any remaining balance shall be reserved and applied towards the Parties’ collective costs for major maintenance and rehabilitation projects of the Commuter Rail Station platform areas, Parking Lot and Detention Basin. Notwithstanding the provisions of Section 11.2 and Section 15.2, upon termination of this Agreement, the CITY shall retain any fund balance of parki ng fees collected pursuant to this Section.
7.3. Maintenance of the Parking Lot. CITY shall manage and oversee the maintenance of the Parking Lot. The Parking Lot maintenance area is shown as Area "C" on Exhibit "A", Property.
a. CITY shall arrange for the maintenance of the Parking Lot as set forth in Exhibit "C", Maintenance Schedule.
b. CITY shall be 100% responsible for all costs to maintain the Parking Lot, including, but not limited to, maintenance of signage, security, perimeter landscaping, lighting, and a pro- rata share of costs associated with appurtenant water quality facilities serving the Parking Lot.
7.4. Security of the Parking Lot. CITY shall manage and oversee the security of the Parking Lot. The Parking Lot security area is shown as Area "C" on Exhibit "A", Property. a. CITY shall be 100% responsible for all costs to provide security to the Parking Lot. b. CITY shall arrange for the provision of security for the Parking Lot to ensure customer and vehicle safety during commuter periods. Security shall be provided from 15 minutes before the first scheduled train until 30 minutes after the last scheduled train.
c. The "Level of Security " and other standards to establish minimum security requirements shall be jointly developed by the Parties to this Agreement and shall be consistent with the " Level of Security " provided by CITY for the Downtown Redlands Station. The Parties agree to meet and confer no later than eighteen (18) months after the start of revenue service to jointly re-examine the minimum security SBCTA Contract No. 20-1002255
requirements for the Commuter Rail Station platform areas.
VIII.
DETENTION BASIN
8.1. Detention Basin Maintenance: Parties agree that CITY shal l arrange for and provide maintenance of the Detention Basin area. The Detention Basin area is shown as Area "D" on Exhibit "A", Property. Detention Basin Maintenance responsibly is inclusive of the appurtenant storm drain facilities constructed by the RPRP for the purpose of conveying water to and/or from the Detention Basin.
a. The CITY shall provide periodic and continuous maintenance , as set forth in Exhibit "D", Detention Basin Maintenance Schedule and Plans, including, but not necessarily limited to, vegetation control and sediment removal , to assure proper performance and as required in order to comply with the San Bernardino Municipal Separate Storm Sewer System (MS4) Permit. The City shall be responsible for any fines or penalties related to noncompliance with the MS4 Permit resulting from lack of maintenance.
b. Commencing upon completion of the Commuter Rail Station and Parking Lot , U of R and SBCTA shall provide monthly payments to the CITY for their pro-rata shares to provide maintenance for the Det ention Basin . The p ro-rata shares for providing maintenance is based on the drainage tributary areas flowing to the Detention Basin and shall be as follows:
I. SBCTA: Pro-rata share shall be 25%.
II. CITY: Pro-rata share shall be 59%.
III. U of R: Pro-rata share shall be 16%.
c. CITY shall be responsible for tracking the actual cost to provide maintenance for the Detention Basin area.
8.2. Detention Basin Security: Parties agree that there is no need to provide security services for the Detention Basin area. CITY and its security contractor shall not be prevented from entering the Detention Basin area if relevant to a security situation.
IX.
FISCAL YEAR
9.1. Fiscal Year. The fiscal year of this Agreement shall begin on the first day of July each year.
X.
INVOICES AND ACCOUNTING
10.1. Accounting. Each Party shall render to the other Part ies a complete accounting of the affairs undertaken or conducted by such Party pursuant to this Agreement, if any, as of the close of business on the last day of June each year. Such accountings shall be rendered to each Party to this Agreement within thirty (30) days after the close of each SBCTA Contract No. 20-1002255
such year. Each Party shall make the relevant portions of its accounting books and records available to the other Parties at any time during the term of this Agreement upon reasonable prior written notice. Except as to manifest errors brought to the attention of the other Parties to this Agreement within thirty (30) days after it is rendered, each such accounting shall be final and conclusive as to each Party to this Agreement.
10.2. Submission of Invoices . Parties hereby agree and covenant to submit a n annual, itemized statement to respective Parties on or before the 15th calendar d ay of June that indicates revenue, all costs, fees, and other charges incurred related to the Maintenance and Security responsibilities pursuant to this Agreement . The statement shall describe the amount of services and supplies provided since the initial commencement date, or since the first calendar day of the most recent billing period, as appropriate, through the date of the current statement. The invoice shall specify the pro rata share owed by each Party. A summary of pro rata shares is included in Exhibit "E".
10.3. Approval and Payment of Invoice. Parties hereby agree and covenant to pay all invoices as received, if any should be submitted on or before the 15th calendar day of June , in compliance with Section 10.2-Submission of Invoices . Parties shall remit payment within thirty (30) days to the designated payee. Parties shall not unreasonably withhold payment and shall promptly pay all undisputed amounts. Should Parties dispute any portion of an invoice, Parties must deliver written notice within ten (10) working days after receipt of the invoice. The written notice must reasonably describe the dollar amount withheld and the reason or reasons therefor. Any such dispute shall be resolved pursuant to Article XIV-Default and Remedies. No Party shall be entitled to dispute the amount of any invoice previously approved for which it has already issued payment .
Failure of Parties to deliver timely written notice of a disputed payment shall be deemed approval of any such payment.
10.4. Invoice Estimate. CITY hereby agrees to jointly develop a cost estimate for the monthly maintenance and security cost s. CITY will notify the other Parties immediately in writing upon developing a c ost estimate, and will notify the Parties immediately, in writing, upon any change or anticipated change in the estimated cost.
XI.
DISTRIBUTION OF PROPERTY
11.1. Distribution of Property. Upon termination of this Agreement, any real property leased from SBCTA to the CITY in connection with this Agreement shall also be terminated .
Vesting of the Detention Basin shall be retained by U of R or its heirs and successors.
Vesting of the Station Site shall be retained by SBCTA or its heirs and successors. The easement appurtenant for the benefit of the Detention Basin tributary area shall endure.
11.2. Distribution to Parties. Except as provided in Section 11.1-Distribution of Property, all proceeds that may accrue to the Parties under this Agreement shall be distributed to the Parties in direct proportion to their monetary participation.
SBCTA Contract No. 20-1002255
XII.
NOTICES
12.1. Notices to Parties. All notices, consents, directions, approvals, instructi ons, requests, and other communications regarding this Agreement shall be in writing, shall be addressed to the person and address set forth below, and shall be (i) deposited in the U.S. mail, first class, certified with return receipt requested and with appropriate postage, (ii) hand delivered or (iii) sent via email with a return receipt. From time to time each of the Parties may designate a new address for purposes of this Article by providing notice to the other signatories to this Novation Agreement as provided in this Section 12.1.
To University: Facilities Management
University of Redlands
1200 East Colton Avenue
P.O. Box 3080
Redlands, CA 92373
Attn: Director of Facilities Management
Telephone: 909-748-8020
E-mail: [email protected]
With a copy to: General Counsel
University of Redlands
1200 East Colton Avenue
P.O. Box 3080
Redlands, CA 92373
Attn: General Counsel
Telephone: 909-748-8076
E-mail: [email protected]
To City: City Clerk
City of Redlands
35 Cajon Street, Suite 4
Redlands, CA 92373
With a copy to: City Attorney
City of Redlands
35 Cajon Street, Suite 200
Redlands, CA 92373
To SBCTA: Director of Transit & Rail Programs
San Bernardino County Transportation Authority
1170 W. Third Street, 2nd Floor
San Bernardino, CA 92410
With a copy to: General Counsel
San Bernardino County Transportation Authority
1170 W. Third Street, 2nd Floor
SBCTA Contract No. 20-1002255
San Bernardino, CA 92410
All notices shall be deemed to have been given three (3) business days following deposit in the United States Postal Service (postage prepaid) or, upon receipt, if sent by overnight delivery service, courier, electronic mail (so long as receipt is acknowledged or otherwise confirmed), or personally delivered. Notice to a Party shall not be effective unless and until each required copy of such notice is given to said Party as provided above in this Section 12.1. The inability to deliver a notice because of a changed address of which no notice was given, or any rejection or other refusal to accept any notice, shall be deemed to be the receipt of the notice as of the dat e of such inability to deliver or rejection or refusal to accept. Any notice to be given by any Party may be given by legal counsel for such Party. Telephone numbers are provided herein for convenience only, and shall not alter the manner of giving notice set forth in this Section 12.1.
XIII.
MISCELLANEOUS
13.1. Consents and Agreements. Any and all consents and agreements provided for or permitted by this Agreement shall be in writing, and a signed copy thereof shall be filed and maintained by each P arty in its official records together with this Agreement.
Whenever consent or approval of any Party is required, that Party shall not unreasonably withhold or delay such consent or approval.
13.2. Sole and Only Agreement. This Agreement contains the sole and only agreement of the Parties as to the subject of this Agreement and correctly sets forth the rights, duties, and obligations of each Party to the other as of this date . Any prior agreements, policies, negotiations, and/or representations are expressly set forth in this Agreement.
13.3. Amendments. This Agreement may be amended or modified in any manner by an instrument in writing, stating the amendment or modification, signed by the P arties hereto.
13.4. Severability. If any one or more provisions contained in this Agreement shall be held invalid or illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision, and this Agreeme nt shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein.
13.5. Headings and Subtitles . Headings and subtitles of this instrument have been used for convenience only and do not constitute matter to be considered in interpreting this Agreement.
13.6. Indemnity. Each party hereto covenants and agrees to release, indemnify, defend, and hold harmless the other party hereto, its affiliates and their respective owners, members, commissioners, officers, directors, employees, agents, consultants, contractors, partners, affiliated entities, subsidiaries, permittees, licensees, successors and assigns, to the maximum extent permitted by law, from and against all liability, loss, claims, suits, damages (including consequential damages), costs, judgments and expenses (including, without limitation, any fines, penalties, judgments, litigation expenses, and experts’ and SBCTA Contract No. 20-1002255
attorneys’ fees), that arise, directly or indirectly, from, asserted against or incurred by reason of, resulting in any manner from, or relating in any manner to: (a) the acts or omissions of such party, its employees, contractors or agents relating to this Agreement and the performance of the duties set forth herein; (b) any claims by third parties arising from or relating to or in connection with the breach or alleged breach of any of the provisions hereof by the respective parties; (c) acts or omissions of any firm employed by the respective parties to perform any portion of the duties or obligations contained herein; (d) completed operations liability or other personal injury claims which may be asserted arising from respective passenger rail services. Each party shall obtain and maintain during the time this Agreement is in effect adequate insurance or self-insurance to cover its liability, defense and indemnification obligations, including but not limited to Commercial General Liability, Automobile Liability, Worker’s Compensation and Property Insurance, in order to protect itself and the other parties. Each p arty shall list each other party as additionally insured on their respective Commercial General Liability insurance policies.
13.7. Law of the Jurisdiction and Venue. In the event of any litigation arising out of the terms of this Agreement, the law of the State of California shall apply, and the venue of any such action shall be the Superior Court of the State of California for the County of San Bernardino, San Bernardino District.
13.8. Dispute Resolution. In the event any dispute arises between the Parties under or in connection with this Agreement, the dispute shall be resolved by the U of R General Counsel, the Executive Director of SBCTA, and the City Manager of the CITY, or their duly authorized representatives, within thirty (30) calendar days after receipt of written notice of said dispute . Said notice shall include a detailed statement of the grounds of the dispute and reasons why the dispute should be resolved in the disputing Party’s favor. If the Parties fail to resolve the dispute in a manner acceptable to the disputing Party, then such dispute shall be decided by the court as set forth in Section
13.7. Pending resolution of the dispute, Parties shall proceed with the performance of this Agreement to the extent practicable.
XIV.
DEFAULT AND REMEDIES
14.1. Event of Default. Each of the following shall constitute an "Event of Default":
a. A failure by any Party to make, or cause to be made, any payment due and payable by said Party to another non- defaulting Party on or before the date that any such payment or deposit is due following the expiration of any applicable grace period set forth in the applicable document;
b. Failure by any Party to perform or observe any of its obligations set forth in this Agreement.
14.2. Opportunity to Cure. Except as provided below, no Event of Default under Section 14.1- Event of Default shall constitute a "Default" until all of the following has occurred and the Event of Default remains uncorrected:
a. The non-defaulting Party has given written notice to the defaulting Party of such SBCTA Contract No. 20-1002255
Event of Default, specifying the particular facts and circumstances that constitute an Event of Default. However, f ailure to provide notice of Event of Default in accordance with Section 12.1 Notices to Parties shall not be deemed to waive any Party’s rights under this Agreement or applicable law , and may be cured by subsequently providing notice in the required manner;
b. The defaulting Party has had thirty (30) days after receipt of such written notice to correct the E vent of D efault. If the defaulting Party can not correct the Event of Default within thirty (30) days, and the non- defaulting Party, in its reasonable judgment, consents, the defaulting Party may initiate and diligently pursue necessary corrective measures approved by the non- defaulting Party. However, any Event of Default must be remedied within one hundre d eighty (180) days after its initial occurrence. Should the defaulting Party fail to initiate and diligently pursue the approved corrective action, then the Event of Default shall constitute a Default; and c. If the defaulting Party fails to take and complete action necessary to cure any Event of Default, the non- defaulting Party may initiate any corrective action it deems appropriate.
14.3. Remedies. Whenever any Event of Default becomes a Default pursuant to Section 14.2 -Opportunity to Cure, any or all of the following remedial procedures shall be available to the non-defaulting Party:
a. The non- defaulting Party may take whatever action at law or in equity that may appear necessary or desirable to collect the payments required to be made by the defaulting Party then due and thereafter to become due; and b. The non-defaulting Party may take whatever action at law or in equity may appear necessary or desirable to compel the defaulting Party to perform as required by this Agreement.
14.4. No Remedy Exclusive . No remedy herein conferred upon or reserved to any Party is intended to be exclusive of any other available remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy available under this Agreement, at law or in equity. No delay or omission to exercise any right or power accruing upon any Default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right or power may be exercised from time-to-time and as often as may be deemed expedient.
14.5. Attorneys’ Fees. In addition to any other remedies provided hereunder or available pursuant to law, if any Party brings an action or procee ding to enforce, protect or establish any right or remedy hereunder, the prevailing Party shall be entitled to recover from the other Party or Parties, as applicable, its costs of suit and reasonable attorneys’ fees. The costs, salary and expenses of the City Attorney , SBCTA's General Counsel and U of R’s General Counsel and members of their offices in enforcing the Agreement shall be considered as "attorneys’ fees" for the purposes of this Section.
SBCTA Contract No. 20-1002255
XV.
TERMINATION OF AGREEMENT
15.1. Acts Constituting Termination . This Agreement shall commence on the date of its execution and shall continue until:
a. Mutual agreement of the Parties hereto to terminate this Agreement; b. Mutual agreement of non-defaulting parties when one or more parties are in Default or breach of this Agreement, which has not been cured in accordance with Section
14.2, Opportunity to Cure.
15.2. Distribution on Termination . Upon termination of this Agreement pursuant t o Section 15.1, all affairs undertaken or conducted pursuant to this Agreement shall be wound up, the assets liquidated, the debts paid and the proceeds divided among the Parties to this Agreement as provided in Article XI-Distribution of Property. Upon successful termination of this Agreement pursuant to Section 15.1, all duties, obligations and responsibilities of the Parties, or any successors to their interests in this Agreement, shall be assumed in the manner as may be provided by mutual agreement or as may be ordered by a court.
------------------------------SIGNATURES ON THE FOLLOWING PAGE-------------------------- SBCTA Contract No. 20-1002255
XVI.
ACCEPTANCE
16.1. Acceptance of Agreement. The Parties have approved this Agreement by official actions of their respective governing bodies, and accept and agree to the terms set forth therein as of the date set forth above.
CITY:
CITY OF REDLANDS, a municipal corporation
ATTEST: By:
Paul Barich, Mayor
____________________________
Jeanne Donaldson, City Clerk
UNIVERSITY:
UNIVERSITY OF REDLANDS, a California
non-profit corporation
By:
Ralph W. Kuncl, PhD, MD,
President
By:
Michelle L. Rogers, EdD,
Vice President, Administration
SBCTA:
SAN BERNARDINO COUNTY
TRANSPORTATION AUTHORITY
By:
Frank J. Navarro,
Board President
Approved as to Form:
_______________________________
Julianna K. Tillquist, General Counsel
SBCTA Contract No. 20-1002255
EXHIBIT A
Property
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UNIVERSITY
COOK
University Station
Platforms, Tracks, Drainage & Parking
2020-03-31
20-1002255 - EXHIBIT A - PROPERTY
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1963-5975-0761
PARK
I 10
UNIVERSITY
I 10
PARK AVE
Area D - Detention Basin
Area C - Rail Commuter Parking Lot
Area A - Passenger Rail Station - Non-Operating Property Area E - Passenger Rail Station - Operating Property
Area "B" - Betterments
Park Avenue - City maintained public street
University Street - City maintained public street.
0 175 350 525 70087.5
Feet
0 100 200 300 40050
Feet
Detention Basin Access Easement
Area C - Rail Commuter Parking Lot
SBCTA Contract No. 20-1002255
EXHIBIT B
Standard Platform
526 OF 2442
(;+,%,7%
527 OF 2442
528 OF 2442
529 OF 2442
530 OF 2442
531 OF 2442
SBCTA Contract No. 20-1002255
EXHIBIT C
Maintenance Schedule
ITEM
Landscape/Irrigation
Trash Pickup and Cleanup
Platform Washing
Graffiti Removal
Plumbing/Electrical
Vandalism Repairs
Storm Drain System (includes inlets)
FREQUENCY
Twice Monthly
Daily
Weekly
As Needed
Annually and As Needed
As Needed
As Needed
SBCTA Contract No. 20-1002255
EXHIBIT D
Detention Basin Maintenance Schedule and Plans
Infiltration Basin TC- 11
I Inspection Actlvttfes Suggested
F.nica11.-c:v
D Observe drain time for a storm after completio n or modification of the facility to Post construction confim1 that the desired drain time hns been obtained. and semi-annually D Newly established vegetation should be inspected several times to determine if any (beginning and end landscape maintertonce (reseeding, irrigation , etc.) is necessa,y. of rainy senson) 0 Inspect for upslope or adjacent contributing sediment sources and ensure that pretreatment systems are in place.
0 Inspect for the following issues: differential accumulation of sediment, signs of wetness Semi-annually and or damage to structures, erosion of the basin Ooor, dead or dying grass on the bottom, after extreme events condition of riprap, drain time, signs of petroleum hydrocarbon contamination, standing water, trash and debris, sediment accumulation, slope stability, pretreatm ent device condition
I Maintenance Actlvttfes Sugg~d
~
0 Factors responsib le for clogging should be repaired immediately. Immediately D Remove invasive weeds once monthly during the first two growing seasons. Monthly during growing season
0 Stabilize eroded banks with erosion control mat or mulch and revegetate. Standard 0 Repair undercut and eroded areas at inflow and outflow structures. maintenance (as needed) 0 Maintain access to the basin for regular maintenance activities. 0 Mow as appropriate for vegetative cover species.
0 Monitor health of vegetation and replace as necessary. 0 Control mosquitoes as necessary.
0 Remove litter and debris from infiltration basin area as required. 0 Trim vegetation to prevent establishment of woody ,·egetation that decreases storage volume.
0 Mow and remove grass clippings, litter , and debris. Semi-annual 0 Replant eroded or barren spots to prevent erosion and accumulation of sedi,:nent. 0 Scrape bottom and remove sediment when accumulated sediment reduces original 3·syear infiltration rate by 25-50%. Restore original cross-section and infiltration rate. maintenance Properly dispose of sediment.
0 Seed or sod to restore ground cover.
0 Di.,c or otherwise aerate bottom.
0 Dethatch basin bottom.
If there are actual signs of clogging or significant loss of infiltrative capacity the following maintenance activities should be considered:
o Mechanically de-thatching and/or aerating the top soils along the sides and bottom of the basin.
o Tilling or dicing to scarify the bottom of the basin
September 2014 California Stormwater BMP Handbook
Industrial and Commercia l
www.casqa.org
2 of 4
285 OF 2442
286 OF 2442
287 OF 2442
SBCTA Contract No. 20-1002255
EXHIBIT E
Maintenance and Security Pro-Rata Share Summary
Maintenance Costs
Area Description Party Share
A Standard
Platforms
CITY 100%*
B Betterments U of R 100%
C Parking Lot CITY 100%*
D Detention Basin CITY 59%*
SBCTA 25%
U of R 16%
E Operating
Property
SBCTA 100%
Security Costs
Area Description Party Share
A Standard
Platforms
CITY 100%*
B Betterments U of R 100%
C Parking Lot CITY 100%*
D Detention Basin Not Applicable Not Applicable
E Operating
Property
SBCTA 100%
* For the first two (2) years of passenger rail Arrow Service, SBCTA is responsible for the maintenance and security costs associated with Area A, Area C and their proportionate share of Area D related to the drainage of Area A and Area C.
SBCTA Contract No. 20-1002255
EXHIBIT F
Drainage Easement Covenants and Restrictions
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RECORDING REQUESTED BY:
SAN BERNARDINO COUNTY
TRANSPORTATION AUTHORITY
1170 W. 3rd Street, 2nd Floor
San Bernardino, California 92410-1715
WHEN RECORDED MAIL TO:
SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY
1170 W. 3rd Street, 2nd Floor
San Bernardino, California 92410-1715
______________________________________________________________________________ APN(s): 0170-191-39-0000 EXEMPT FROM RECORDING FEES PER GOVT. CODE §27383 EXEMPT FROM DOCUMENTARY TRANSFER TAX PER REV. & TAX CODE §11922
EASEMENT DEED
Grant of Easement for Drainage, Detention and Access
FOR GOOD AND VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the University of Redlands, an IRC section 501(c)(3) nonprofit corporation (hereinafter referred to as “Grantor”) does hereby GRANT and CONVEY to San Bernardino County Transporta tion Authority (“Grantee”), and its successors and assigns, a permanent easement for drainage , detention and access purposes as set forth in this Easement Deed (hereinafter referred to as this “Easement”), over, above, on, under, in, across, along and through that certain portion of Grantor’s real property as described below, in accordance with the term s and provisions of this Easement.
RECITALS
A. Grantor and Grantee are the owners of two adjoining parcels of real property located in the City of Redlands, County of San Bernardino, and State of California.
B. The parcel owned by Grantor is known as San Bernardino County Assessor’s Parcel No. 0170- 191-39-0000 and is more particularly described in Exhibit A , attached hereto and incorporated herein by this reference (the “Grantor’s Property”). Grantor’s Property is sometimes also referred to in this Easement as the “Servient Tenement”.
C. The parcel owned by Grantee is known as San Bernardino County Assessor’ s Parcel No. 0170-181-49-0000 and is more particularly described in Exhibit B, attached hereto and incorporated herein by this reference (the “Grantee’s Property”). Grantee’s Property is sometimes also referred to in this Easement as the “Dominant Tenement”.
D. Grantee’s Property is pa rt of the railroad corridor owned by Grantee, and upon which Grantee is currently constructing the Redlands Passenger Rail Project (the “Project”).
57772113.v5
E. Grantor’s Property is currently vacant; however, Grantee intends to construct a detention basin and related appurtenances (the “Detention Basin”) on Grantor’s Property as part of its construction of the Project (the “Detention Basin Easement Area”). Grantee further intends to construct and install drainage pipelines (the “Drainage Facilities”) on, under, across and through Grantor’s Property, to allow surface and storm water from Grantee’s Property to drain into the Detention Basin (the “Drainage Easement Area”).
F. Grantor has agreed to grant a Detention Basin Easement and Drainage Easement in favor of Grantee and Grantee’s Property , over, across, under and through Grantor’s Property, together with a right of access to enter upon Grantor’s Property for the purpose of performing activities related to the detention basin and/or drainage facilities thereon (“Access Easement”), subject to the terms and conditions set forth herein.
THE EASEMENTS
1. EASEMENTS
1.1 Grant of Detention Basin Easement. Grantor does hereby grant and convey to Grantee and its successors and assigns in ownership of Grantee’s Property for the benefit of and as an appurtenance to Grantee’s Property, a perpetual, non -exclusive easement on, over, upon, under, across and through Grantor’s Property for the purpose of directing, discharging, collecting and detaining in the Detention Basin any and all storm and surface water emanating from Grantee’s Property and further, if and to the extent Grantee should need to conduct any service, repa ir, maintenance or replacement of the Detention Basin pursuant to Section 2.3 below, for the purposes of servicing, maintaining, repairing and replacing the D etention Basin. In connection therewith, Grantor agrees to accept and detain in the Detention Bas in any and all such storm and surface water emanating from Grantor’s Property.
1.2 Grant of Drainage Easement . Grantor does hereby grant and convey to Grantee and it successors and assigns in ownership of Grantee’s Property for the benefit of and as an appurtenance to Grantee’s Property, a perpetual, non-exclusive easement on, over, upon, under, across and through Grantor’s Property for the purpose of concentrating, directing and transporting any and all storm and surface water emanating from Grantee’s Property into and through the Drainage Facilities to the Detention Basin and further, if and to the extent Grantee should need to conduct any service, repair, maintenance or replacement of the Drainage Facilities pursuant to Section 2.3 below, for the purposes of servicing, maintaining, repairing and replacing the Drainage Facilities.
1.3 Grant of Access Easement . Grantor does hereby grant and convey to Grantee and it successors and assigns in ownership of Grantee’s Property for the benefit of and as an appurtenance to Grantee’s Property, a perpetual, non-exclusive access easement on, over, upon, under, across and through Grantor’s Property for ingress and egress purposes to and from Grantor’s Property for service, repair, maintenance or replacement of the Detention Basin or Drainage Facilities, or for emergency purposes related to the Detention Basin or Drainage Facilities.
57772113.v5
1.4 Covenants Running with the Land . This Easement and all terms, provisions, rights and obligations set forth herein shall be binding upon each party and its respective successors and assigns succeeding to any interest in the Dominant Tenem ent or the Servient Tenement. The Detention Basin Easement, the Drainage Easement and the Access Easement shall be appurtenant to and for the benefit of the Dominant Tenement and shall run with the land. Any conveyance of Grantor’s Property, or any porti on thereof, shall be subject to the easements, covenants, conditions, representations and restrictions contained in this Easement .
Therefore, the term “Grantor” shall mean and include the owner of Grantor’s Property from time to time, and the term “Grantee” shall mean and include the owner of Grantee’s Property from time to time.
1.5 Perpetual Easements . The Detention Basin Easement, the Drainage Easement and the Access Easement are each granted in perpetuity.
1.6 No Interference with Grantee’s U se of the Easements . Grantor ’s use of Grantor’s Property may not disturb, disrupt or interfere with Grantee’s use or occupancy of, or access to and from, the Detention Basin or the Drainage Facilities. Further, Grantor shall not allow any use of Grantor’ s Property which would disturb, disrupt or interfere with Grantee’s use or occupancy of, or access to and from, the Detention Basin or the Drainage Facilities.
2. CONSTRUCTION AND MAINTENANCE
2.1 Construction of the Detention Basin and Drainage Facilities . Grantee intends on completing construction of the Detention Basin and Drainage Facilities servicing Grantee’s Property on or before February 10, 2021. Said construction is the sole responsibility of Grantee and Grantee shall bear all costs associated therewith. However, Grantee is not responsible for the construction of any other drainage pipelines, and shall not pay for the cost of constructing any other drainage pipelines, that may connect to the Detention Basin beyond those particular Drainage Facilities servincing Grantee’s Property.
2.2 Maintenance. Grantee, for itself and its successors and assigns, agrees maintain the Detention Basin and the Drainage Facilities within Grantor’s Property upon the granting of this easement. The responsible party, as may be modified pursuant to Subs ection 2.5 below, agrees to maintain the Detention Basin and Drainage Facilities within Grantor’s Property as set forth in the Provisions for the Maintenance and Use of the Detention Basin and Drainage Facilities attached hereto as Exhibit C and incorporated herein by this reference (the “Maintenance and Use Provisions ”) Maintenance of the Drainage Facilities that lie within Grantee’s Property shall be Grantee’s sole responsibility.
2.3 Failure to Adequately Maintain Detention Basin and Drainage Facilities. In the event the Grantor should fail to adequately maintain the Drainage Facilities and/or the Detention Basin in accordance with this Easement and/or the Maintenance and Use Provisions, Grantee shall have the right but not the obligation to service, maintain, repair and replace the Drainage Facilities and/or the Detention Basin, and seek reimbursement from Grantor for any costs and expenses associated with said service, maintenance, repair or replacement work, which costs shall include administrative time spent on performing said work, and Grantee’s overhead for same.
57772113.v5
If there is a disagreement as to the maintenance or repair work that must be completed, Grantee will be allowed to make any repairs or conduct any maintenance that it deems urgent and/or necessary, as set forth in Subsection 2.4 below . This Subsection 2.3 applies to maintenance responsibilities for facilities subject to this easement which Grantor or Grantor's successors or assigns have assumed pursuant to Subsection 2.5 below.
2.4 Emergency Repairs . Grantee shall (and may, without first obtaining Grantor’s consent) have the right to make such repairs and take such other actions as are reasonable and necessary to address any em ergency situation relating to the existence, use, operation, maintenance or repair of the Detention Basin and Drainage Facilities, in the event (but only to the event) such emergency situation arises out of, results from or relates to the existence of, or Grantee’s construction, use, operation, maintenance or repair of, the Project and/or the Drainage Facilities within Grantee’s Property. The purpose of this Subsection 2.4 is to permit Grantee to immediately address emergency situations without first obtaining Grantor’s consent; however, Grantee shall, nonetheless, attempt to contact Grantor as soon as reasonably possible and advise of Grantee’s actions and proposed actions to address the emergency situation and/or results thereof and Grantee shall, to the extent reasonably practicable, seek Grantor’s consent to Grantee’s actions.
2.5 Modification to Detention Basin or Drainage Facilities . Neither Grantor nor Grantee shall make modifications to the Detention Basin or Drainage Facilities without first obtaining prior written consent of the other party. Said consent shall not be unreasonably withheld provided that requestor of said consent demonstrates that the Detentio n Basin and Drainage Facilities as modified will at all times, satisfy the terms, provisions and requirements set forth in a Municipal Separate Storm Sewer System permit or other such prevailing document as may exist at such time said consent is requested, including but not limited to preserving existing water storage and treatment capacity, in addition to complying with all applicable laws, ordinances, rules and regulations of any governmental agency or authority having jurisdiction over the management and treatment of storm and surface waters. Grantor and Grantee mutually agree for themselves, their successors and assigns that as a condition of consent to modify the Detention Basin or Drainage Facilities, the requesting party shall assume responsibility for the maintenance of such modified facilities and the cost of said maintenance.
3. GENERAL PROVISIONS
3.2 Severability. A determination by a court that any provision hereof is invalid for any reason shall not affect the validity of any other provision hereof.
3.3 No Forfeiture. Notwithstanding any contrary provision of this Easement , the easements, rights and privileges granted and conveyed in this Easement are intended to be independent of any contractual agreements or obligations of any party hereto and a breach or default by any party hereto of any duty or obligation under this Easement shall not cause or result in the forfeiture or reversion of any such easements, rights or privileges.
3.4 Governing Law. This Easement shall be governed by and construed under the laws of the State of California.
57772113.v5
3.6 Modification. This Easement may not by modified, amended or terminated except by execution and recording of a written instrument signed by Grantor and Grantee, or by their respective successors.
IN WITNESS WHEREOF, Grantor has caused this instrument to be executed on the date set forth below.
Dated: __________________________ GRANTOR:
THE UNIVERSITY OF REDLANDS
By:
Name:
Its:
57772113.v5
ACKNOWLEDGEMENT
STATE OF CALIFORNIA )
)
COUNTY OF _________________ )
On ______________________ before me, ____________________________________, Notary Public, personally appeared ____________________________________ who proved to me on the basis of satisfact ory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the pers on(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: (SEAL)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
57772113.v5
CERTIFICATE OF ACCEPTANCE
(Government Code Section 27281)
This is to certify that the interest in real property conveyed by this Easement Deed to the undersigned San Bernardino County Transportation Authority (“SBCTA ”), the provisions of which instrument are incorporated by this reference as though fully set forth in this certificate, is hereby accepted by the undersigned officer on behalf of SBCT A pursuant to authority conferred by the San Bernardino County Transportati on Authority’s Board of Directors, Agenda Item 12, adopted on June 5, 2013, and the Grantee consents to recordation thereof by its duly authorized officer.
Description/ identification of real property: San Bernardino County Assessor’s Parcel No. 0170- 191-39-0000
Dated: By:
Carrie Schindler, PE
Director of Transit and Rail Programs
ACKNOWLEDGEMENT
STATE OF CALIFORNIA )
)
COUNTY OF _________________ )
On ______________________ before me, ____________________________________, Notary Public, personally appeared ____________________________________ who proved to me on the basis of satisfactory evidence to be th e person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: (SEAL)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
57772113.v5
EXHIBIT “A” TO
GRANT OF EASEMENT FOR DRAINAGE, DETENTION AND ACCESS
LEGAL DESCRIPTION OF GRANTOR’S PROPERTY
[APN(s): 0170-191-39-000]
[attached behind this page]
57772113.v5
EXHIBIT “B” TO
GRANT OF EASEMENT FOR DRAINAGE, DETENTION AND ACCESS
LEGAL DESCRIPTION OF GRANTEE’S PROPERTY
[APN(s): 0170-181-49-0000]
[attached behind this page]
57772113.v5
EXHIBIT “C” TO
GRANT OF EASEMENT FOR DRAINAGE, DETENTION AND ACCESS
PROVISIONS FOR THE MAINTENANCE AND USE OF
THE DETENTION BASIN AND DRAINAGE FACILITIES
[attached behind this page]
SBCTA Contract No. 20-1002255
EXHIBIT G
Parking Lot License
SBCTA Contract No.: 18-1001928
File No.:
Subdivision: Redlands
Milepost(s): 10.0 (Parking Lot)
SBCTA Contract No. 18-1001928
LICENSE AGREEMENT
BETWEEN
SBCTA
AND
CITY OF REDLANDS
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
i
LICENSE AGREEMENT
This LICENSE AGREEMENT (“License”) is made and entered into as of the date executed by SBCTA, by and between SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY, a county transportation authority pursuant to California Public Utilities Code §§130800 et. seq. (“SBCTA”), and, CITY OF REDLANDS, a municipal corporation (“LICENSEE”), upon and in consideration of the agreements, covenants, terms and conditions below .
PART I – BASIC LICENSE PROVISIONS
The Basic License Provisions provided in this Part I and the Standard License Provisions set forth in Part II of this License, together with all Exhibits and Attachments referenced in either, are incorporated into and made part of this License. In the event of conflict between Part I and Part II or of any Exhibits and Attachments, Part I shall control.
Basic License Provisions
Part II
Section Cross
Reference
1. Parties.
SBCTA’s Address:
Attn: Transit & Rail Programs
1170 West 3rd Street, 2nd Floor
San Bernardino, California 92410-1715
909-884-8276
Licensee’s Address:
City of Redlands
35 Cajon Avenue, Suite 15A
Redlands, CA 92373
Attn: City Clerk
Telephone: 909-798-7531
E-mail: [email protected]
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
ii
2. Description of the Premises.
City/County: City of Redlands, San Bernardino County
Subdivision: Redlands
Address or Milepost Location:
Mile Post 10.0 (Cook St) and west thereof
Approximate area:
59,230 square feet; 1.36 acres
See map/diagram in Exhibit “A”.
Description and Dimensions of Premises Area:
An approximately 613 foot portion of SBCTA's Redlands Subdivsion's rail right of way , 100 foot wide, adjacent to and west of Cook Street, excepting that portion of the rail right of way maintained by the City of Redlands as Park Avenue.
3. Allowable Improvements, Facilities and Uses. Licensee shall construct only the following improvements and/or facilities and conduct or permit only the following uses on the Premises:
Description of Improvements and/or Facilities (“Improvements”):
A one hundred (100) space parking lot reserved for rail commuter use and appurtenant facilities.
Use of the Premises:
Operation and maintenance of parking lot for rail commuter use, and the rights and/or obligations of Licensee pursuant to SBCTA Contracts 20-1002255, 21-1002525 and that certain MOU as amended, originally dated October 1, 1996 between Licensee and SBCTA.
4. Term.
Commencement Date: Date executed by SBCTA
Term (check one):
A. Month-to-month
B. Until End Date: Twenty (20) years after the
Commencment Date, thereafter the term shall convert to
month to month.
(subject to termination pursuant to the terms of this License – see especially Standard License Provisions §2.2).
§ 1.1
§ 1.3
§ 2.1
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
iii
Basic License Provisions
Part II
Section Cross
Reference
5. Fees.
A. Administration Fee: $Zero per year or portion thereof, payable annually in advance.
B. Base Use Fee (check one):
i. $_________ per month, payable monthly in
advance
ii. $_Zero_ per year, payable annually in
advance
C. Additional Use Fee (check one):
i. One-time fee: $___________
ii. Other: Not Applicable_____________
___________________________________
D. Base Use Fee Adjustment Dates (check if applicable):
i. CPI Adjustment. Annually, effective on the
first day of the anniversary month of the
Commencement Date, based on the published
Consumer Price Index (or its successor)
(“CPI”) as defined in Section 3.2.1 of the
Standard License Provisions.
ii. Fair Market Rate Adjustment. At intervals
of not less than three (3) years, based on the
then current fair market rental value of the
Premises as set forth in Section 3.2.2 of the
Standard License Provisions.
iii. Other: _Not Applicable_____________
__________________________________
§ 3
§ 3.1.1
§ 3.1.2
§3.1.3
§ 3.2
§ 3.2.1
§ 3.2.2
§ 3.2.3
6. Security Deposit (if any). $___Zero_________
§ 4
7. Insurance Amount. See Exhibit “B” §§ 10, 13
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
iv
IN WITNESS WHEREOF, this License was duly executed by the Parties identified in Item 1 of this Part I on the dates below, and is effective as the date executed by SBCTA.
LICENSEE: SBCTA
CITY OF REDLANDS, a coroporate
municipality
SAN BERNARDINO COUNTY
TRANSPORTATION AUTHORITY
By: By:
Name: Name: Raymond W. Wolfe
Title Title: Executive Director
Date: Date:
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
v
PART II – STANDARD LICENSE PROVISIONS
TABLE OF CONTENTS
Section Page
1. GRANT AND SCOPE OF LICENSE .................................................................................1
2. TERM, TERMINATION AND SURRENDER ..................................................................2
3. PAYMENTS ........................................................................................................................4
4. SECURITY DEPOSIT ........................................................................................................6
5. TAXES ................................................................................................................................6
6. LIENS ..................................................................................................................................6
7. ASSUMPTION OF RISK AND WAIVER .........................................................................7
8. DEFAULT, BREACH AND REMEDIES ..........................................................................7
9. INDEMNIFICATION .........................................................................................................9
10. INSURANCE .....................................................................................................................10
11. MAINTENANCE AND REPAIR .....................................................................................11
12. ALTERATIONS AND CONSTRUCTION ......................................................................11
13. CONTRACTORS; APPROVAL AND INSURANCE .....................................................12
14. REIMBURSEMENT .........................................................................................................12
15. LANDSCAPING ...............................................................................................................12
16. MARKERS ........................................................................................................................12
17. COMPLIANCE WITH LAWS ..........................................................................................13
18. SBCTA’S RIGHT OF ACCESS ........................................................................................13
19. ENVIRONMENTAL ASSESSMENT ..............................................................................14
20. HAZARDOUS/TOXIC MATERIAL USE AND INDEMNITY ......................................14
21. UNDERGROUND STORAGE TANKS ...........................................................................15
22. CONDEMNATION ...........................................................................................................15
23. BROKER’S FEES .............................................................................................................15
24. SUBORDINATE RIGHTS ................................................................................................15
25. ABANDONMENT ............................................................................................................16
26. GENERAL PROVISIONS ................................................................................................16
Exhibits:
“A” Premises
“B” Insurance Requirements
“C” Permitted Hazardous Material
“D” Additional Provisions
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
1 PART II - STANDARD LICENSE PROVISIONS
1. GRANT AND SCOPE OF LICENSE
1.1. Grant of License. SBCTA hereby grants a non-exclusive, revocable license to Licensee in, on, over, under, across and along the real property of SBCTA in the location shown in the diagram attached hereto as Exhibit A and described in Item 2 of the Basic License Provisions (the “Premises”), for construction, installation, operation, alteration, maintenance, reconstruction and/or removal of the Improvements described in Item 3 of the Basic License Provisions, and any usual and necessary related appurtenances thereto (the “Improvements”), for the purposes described in Item 3 of the Basic License Provisions, together with rights for access and entry onto the Premises as necessary or convenient for the use of the Improvements and for no other purpose. In connection with this grant of license, Licensee, its employees, agents, customers, visitors, invitees, licensees, consultants and contractors (collectively, “Licensee’s Parties”) subject to the provisions hereof, may have reasonable rights of entry and access onto adjoining real property of SBCTA if necessary for the use of the Improvements or the Premises, with the time and manner of such entry and access to be subject to SBCTA’s prior written approval. The Premises, adjoining real property of SBCTA and personal property of SBCTA located thereon shall hereinafter collectively be referred to as “SBCTA Property.”
1.2. Condition of Premises. Licensee acknowledges that it has inspected the Premises in its present condition, including without limitation, all existing environmental conditions.
Licensee accepts the Premises “as is” as suitable for the purpose for which the Premises are licensed and assumes all risk with respect to all present conditions of the Premises, whether patent or latent, including, without limitation, all existing environmental conditions. Taking of possession by Licensee shall be conclusive to establish that the Premises are in good and satisfactory condition when possession is taken.
1.3. Use. The Premises and the Improvements shall be used only for the purposes specified in Item 3 of the Basic License Provisions and for such lawful purposes as may be directly incidental thereto, and no other purpose. No change shall be made by Licensee in the use of the Premises, the Improvements or the commodity or product being conveyed through the Improvements (if any) without SBCTA’s prior written approval.
1.4. Non-exclusive and Revocable Nature of License. The License granted herein is not exclusive and SBCTA specifically reserves the right to grant other licenses within the Premises. Licensee agrees that notwithstanding the Improvements made by Licensee to the Premises or other sums expended by Licensee in furtherance of this License, the license granted herein is fully revocable by SBCTA in accordance with the terms of this License.
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
2 1.5. Easements. SBCTA reserves to itself the right, from time to time, to grant such easements, rights and dedications that SBCTA deems necessary or desirable, and to cause the recordation of parcel maps, easement agreements and covenants, conditions and restrictions, so long as such easements, rights, dedications, maps and covenants, conditions and restrictions do not unreasonably interfere with the permitted use of the Premises by Licensee. Licensee shall sign any of the aforementioned documents upon request of SBCTA and failure to do so shall constitute a material breach of this License.
2. TERM, TERMINATION AND SURRENDER
2.1. Term of License. The term of this License shall commence on the “Commencement Date” specified in Item 4 of the Basic License Provisions. If Item 4.A of the Basic License Provisions is checked, this License shall continue in full force and effect on a month-to-month basis. If Item 4.B of the Basic License Provisions is checked, then this License shall be a license for the term specified in said Item 4.B. The term of this License as provided above is referred to as the “Term.”
2.2. Termination.
2.2.1. Convenience. If Item 4.A is checked, this License shall continue in full force and effect on a month-to-month basis until terminated by either Party on thirty (30) days’ prior written notice. If Item 4.B is checked, this License shall continue in full force and effect until the End Date, unless SBCTA, acting by its Executive Director or his or her designee, for any reason and in its sole and absolute discretion, determines that this License is no longer in SBCTA’s best interests. In which case, SBCTA may terminate this License on thirty (30) days’ prior written notice, but SBCTA shall also return to Licensee, within thirty (30) days after the termination, the pro-rata portion of any annual Use Fee paid by the Licensee for the portion of the agreed term that will not be used by Licensee.
2.2.2. Cause. SBCTA may terminate this License for cause in accordance with the provisions hereof, including, without limitation, Sections 24 (Abandonment), 8 (Default, Breach and Remedies) and 25.11 (Assignment). In addition, SBCTA shall have the right to immediately, without notice and at Tenant’s expense, terminate this License upon discovery of any default set forth in Section 8.1(d) and abate any such public nuisance and/or dangerous condition.
2.2.3. Public Use. In addition to any and all other termination rights of SBCTA described herein, Licensee hereby expressly recognizes and agrees that the Premises are located on SBCTA property that may be developed for public projects and programs which may be implemented by SBCTA or other public agencies, such as, but not limited to: rail and bus transitways, bikeways, walkways, beautification projects, roadways, parking facilities, flood control and drainage facilities, and/or any other public or other governmental uses (collectively and individually “Public Use”); and that Licensee’s use of the Premises under this License is a temporary, interim use as to which Licensee has no right to nor expectation of use for any
City of Redlands SBCTA Contract 18-1001928
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3 particular length of time that may be terminated by SBCTA by thirty (30) days written notice to Licensee as set forth in Section 2.2.1 above. Accordingly, as a condition to entering into this License, Licensee expressly acknowledges and agrees that:
(a) SBCTA may terminate this License as set forth above for any Public Use, to be determined in the sole and absolute discretion of SBCTA’s Executive Director, or designee;
(b) Licensee shall NOT object to, oppose, or protest at any approval proceeding; nor file suit to prevent or delay any Public Use when planned or implemented on or adjacent to the Premises;
(c) If SBCTA’s Executive Director, or designee, at any time, or from time to time, determines in his or her sole and absolute discretion, that there is a need for the Premises or any adjoining property for a Public Use and such Public Use requires relocation or removal of the Improvements, Licensee shall reconstruct, alter, modify, relocate or remove its Improvements, as directed by SBCTA or any parties having operating rights over the Premises, at Licensee’s sole cost and expense, within thirty (30) days after written notice from SBCTA; and (d) Licensee expressly assumes all risk of any future Public Use as determined by SBCTA and in the event SBCTA terminates this License and requires Licensee to vacate the Premises for any Public Use, Licensee shall not, as a result of such termination and vacation of the Premises, be entitled to receive any:
(i) relocation assistance, moving expenses, goodwill or other payments under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, 42 U.S.C. §4601 et seq. and/or the California Relocation Assistance Law, as amended, California Government Code §7260 et seq; and
(ii) compensation under any eminent domain or inverse condemnation law.
2.2.4. Penalty: If Licensee fails to terminate use of the Premises and/or restore the Premises as required in Item 2.3 below, on or before the End Date specified in Item
4.B of the Basic License Provisions or the termination date established as otherwise provided in this License (“Termination Date”), then, in addition to any and all other remedies available to SBCTA under the terms of this License or at law or equity, Licensee shall pay a Penalty equal to twice the Base Use Fee in effect on the day prior to the Termination Date, plus twice any Additional Use Fee, calculated and payable on a monthly basis, for the number of months (partial months counting as whole months) from the Termination Date to the date that Licensee has terminated use and restored the Premises to the required condition. In the event that any Additional Use Fee is set as a percentage of revenues, or on some other variable basis, it shall be calculated based on the average for the prior twelve month period or if in effect less than one year, the monthly average from the effective date to the day prior to the Termination Date. Licensee shall indemnify SBCTA against all liabilities, costs and damages sustained by SBCTA by reason of such failure to terminate and restore.
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4 2.3. Termination of Use and Restoration of Premises. Upon the Termination Date , unless otherwise requested in writing by SBCTA prior to the Termination Date, Licensee, at its own cost and expense, shall immediately remove all alterations additions and Improvements made by Licensee to the Premises and restore the SBCTA Property as nearly as possible to the same state and condition as existed prior to the construction, reconstruction or installation of said Improvements. Should Licensee fail to comply with the requirements of the preceding sentence, SBCTA may at its option (i) perform the same at Licensee’s expense (including costs, interest, and fees), which Licensee agrees to pay to SBCTA on demand, or (ii) assume title and ownership of said Improvements. No termination hereof shall release Licensee from any liability or obligation hereunder, whether of indemnity or otherwise, resulting from any acts, omissions or events happening prior to the date the Improvements are removed and the SBCTA Property is restored.
3. PAYMENTS
3.1. Fees. As consideration for the rights herein granted, Licensee agrees to pay to SBCTA the Administration and Use Fees specified in Item 5 of the Basic License Provisions, adjusted as set forth in Section 3.2.
3.1.1. Administration Fee. The Administration Fee set forth in Item 5.A of the Basic License Provisions shall be due and payable annually in advance prior to each anniversary of the execution date of this license.
3.1.2. Base Use Fee. If Item 5.B.i of the Basic License Provisions is checked, the first month’s Base Use Fee noted therein shall be due and payable upon Licensee’s execution of this License. Thereafter, the Base Use Fee, as such fee may be adjusted pursuant to the provisions of Section 3.2, shall be due and payable, without demand, on or before the first day of each calendar month succeeding the Commencement Date during the Term. The Base Use Fee for any fractional calendar month at the commencement or end of the Term shall be prorated on a daily basis. If Item 5.B.ii of the Basic License Provisions is checked, the annual Use Fee amount, as such fee may be adjusted pursuant to the provisions of Section
3.2, shall be due and payable, without demand, annually in advance on or before the anniversary month of the Commencement Date for the convenience of both Parties, without affecting the Term of this License as specified in Section 2.1 of the Basic License Provisions.
3.1.3. Additional Use Fee. If Item 5.C.i of the Basic License Provisions is checked, the one-time fee noted therein shall be due and payable upon execution of this License by Licensee. If Item 5.C.ii of the Basic License Provisions is checked, the fee noted therein shall be due and payable as indicated in Item 5.C.ii.
3.2. Use Fee Adjustment.
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5 3.2.1. Annual CPI Adjustment. If Item 5.D.i of the Basic License Provisions is checked, then the Base Use Fee shall be increased, but not decreased, as provided below on the first day of each month during which an annual anniversary of the Commencement Date occurs unless another date is provided in Item 5 of the Basic License Provisions (the “Adjustment Date”). If no adjustment is made at the annual anniversary date, an adjustment may nevertheless be made at a subsequent date and thereafter at not less than annual intervals. The adjusted Base Use Fee as of each Adjustment Date shall be the greater of the Base Use Fee on the day preceding that Adjustment Date or that amount multiplied by a fraction, the numerator of which is the CPI figure for the month that is three (3) months prior to the month during which the particular Adjustment Date occurs and the denominator of which is the CPI figure for the month that is three (3) months prior to the month containing the prior Adjustment Date or, if there has been no prior Adjustment, three (3) months prior to the first day of the anniversary month of the Commencement Date. As used in this section, the “CPI” means the Consumer Price Index for Urban Wage Earners and Clerical Workers, Los Angeles/Riverside/Orange County, all items (1982-84 = 100), published by the U.S. Department of Labor, Bureau of Labor Statistics (Bureau), or if such index is no longer published, the U.S. Department of Labor’s most comprehensive official index then in use that most nearly corresponds to the index named above. If it is calculated from a base different from the base period 1982-84 = 100, figures used for calculating the adjustment shall first be converted to the base period used under a formula supplied by the Bureau. If a comparable index shall no longer be published by the U.S. Department of Labor, another index generally recognized as authoritative shall be substituted by SBCTA.
3.2.2. Fair Market Adjustment. If Item 5.D.ii of the Basic License Provisions is checked, then, at intervals of not less than three (3) years, the Base Use Fee (as such fee may be adjusted by Section 3.2.1, above) payable under this Section 3 shall be increased, but not decreased, in order to adjust the fee to the then fair market rental value of the Premises as determined by SBCTA in good faith. Such increases shall be effective as of thirty (30) days after written notice from SBCTA to Licensee of such adjustment, or the date specified in such written notice, whichever is later. If no adjustment is made at any three (3) year interval, an adjustment may nevertheless be made on any subsequent date and thereafter at intervals of not less than three (3) years apart.
3.2.3. Other Adjustment. If Item 5.D.iii of the Basic License Provisions is checked, then, in addition to any adjustments required under Items 5.D.i and 5.D.ii, the adjustment set forth in 5.D.iii shall be applied in accordance with its terms.
3.3. Late Charge. Licensee acknowledges that late payment by Licensee of any payment owed to SBCTA under this License will cause SBCTA to incur costs not contemplated by this License, the exact amount of such costs being extremely difficult and impracticable to determine. Therefore, if any payment due from Licensee is not received by SBCTA within five (5) days of when due, Licensee shall pay to SBCTA an additional sum of ten percent (10%) of the overdue payment as a late charge, up to a maximum amount of $500 for each late payment. The Parties agree that this late
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6 charge represents a fair and reasonable estimate of the administrative costs that SBCTA will incur by reason of a late payment by Licensee. Acceptance of any late payment charge shall not constitute a waiver of Licensee’s default with respect to the overdue payment, nor prevent SBCTA from exercising any of the other rights and remedies available to SBCTA under this License, at law or in equity. In addition, any payment not made within 15 days of when due shall bear interest at the rate of eighteen percent (18%) per annum, or the highest legally allowable rate, whichever is lower, until paid in full.
4. SECURITY DEPOSIT
Upon execution of this License and in addition to the payment described in Section 3 of the Basic License Provisions, SBCTA may require Licensee to pay SBCTA a security deposit in the amount set forth in Item 6 of the Basic License Provisions (“Security Deposit”), which sum shall be held by SBCTA in its general fund, without obligation for interest, as security for the faithful performance by Licensee of all of the terms, covenants, conditions and obligations of this License. If at any time Licensee fails to keep and perform any of the terms, covenants, and conditions of this License, including making any payment required hereunder, SBCTA may, at its sole option, apply all or any portion of the Security Deposit to any overdue payment and/or any loss or damage incurred by SBCTA by reason of Licensee’s default or breach. Within a reasonable time after termination of this License and after Licensee has vacated the Premises, SBCTA shall return, without interest, said deposit or portion remaining, if any, after deductions for any unpaid payments and any losses or damages sustained by SBCTA due to any breach or default by Licensee or any damage to the Premises or any failure to restore the Premises to the required condition.
5. TAXES
Licensee shall be liable for and agrees to pay promptly and prior to delinquency, any tax or assessment, including but not limited to any possessory interest tax as described in California Revenue and Taxation Code Section 107, levied by any governmental authority: (a) against the Improvements, the Premises and/or any personal property, fixtures or equipment located on or placed on the Premises, whether owned by Licensee or any person or entity acting for or at the request of Licensee; or (b) as a result of the Licensee’s or the Improvements’ operations.
6. LIENS
Licensee will fully and promptly pay for all materials joined or affixed to the Improvements or Premises, and fully and promptly pay all persons who perform labor upon said Improvements or Premises. Licensee shall not suffer or permit to be filed or enforced against the Premises or the Improvements, or any part thereof, any mechanics’, materialmen’s, contractors’, or subcontractors’ liens or stop notices arising from, or any claim for damage growing out of, any testing, investigation, maintenance, Work, activities, or operations of Licensee, or out of any other claim or demand of any kind. The term “Work” under this License means any construction, reconstruction, installation, restoration, alteration, repair, replacement, or removal, other than normal maintenance. Licensee shall provide SBCTA with immediate written notice of any such liens, claims, demands, or stop notices that are placed against the Premises or the
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7 Improvements. Licensee shall pay or cause to be paid all such liens, claims or demands, including sums due with respect to stop notices, together with attorney’s fees incurred by SBCTA with respect thereto, within ten (10) business days after notice thereof and shall indemnify, hold harmless and defend SBCTA from any and all such obligations and claims, including attorney’s fees. Licensee shall furnish evidence of payment upon request of SBCTA.
Licensee may contest any lien, claim or demand by furnishing a statutory lien bond or equivalent with respect to stop notices to SBCTA in compliance with applicable California law. If Licensee does not discharge any mechanic’s lien or stop notice for works performed for Licensee, SBCTA shall have the right to discharge same (including by paying the claimant) and Licensee shall reimburse SBCTA for the cost of such discharge, as well as any associated costs and fees, within ten (10) business days after billing. In such circumstances, Licensee shall pay an additional fee to SBCTA of twenty five percent (25%) of the costs of the discharge of the lien or stop notice in order to cover SBCTA’s administrative costs. SBCTA reserves the right at any time to post and maintain on the Premises such notices as may be necessary to protect SBCTA against liability for all such liens and claims. The provisions of this section shall survive the termination of this License.
7. ASSUMPTION OF RISK AND WAIVER
To the maximum extent allowed by law, Licensee assumes any and all risk of loss, damage or injury of any kind to any person or property, including without limitation, the Improvements, the SBCTA Property and any other property of, or under the control or custody of, Licensee, which is on or near the Premises. Licensee’s assumption of risk shall include, without limitation, loss or damage caused by defects in any structure or improvement on the SBCTA Property, accident or fire or other casualty on the SBCTA Property, or electrical discharge, noise or vibration resulting from SBCTA’s transit operations on or near the SBCTA Property. The term “SBCTA” as used in this section shall include: (i) any transit or rail-related company validly operating upon or over SBCTA’s tracks or other property, and (ii) any other persons or companies employed, retained or engaged by SBCTA. Licensee, on behalf of itself and its officers, directors, affiliates, employees, agents, independent contractors and subcontractors anyone directly or indirectly employed by or for whose acts Licensee is liable (collectively, “Personnel”), as a material part of the consideration for this License, hereby waives all claims and demands against SBCTA for any such loss, damage or injury of Licensee and/or its Personnel. In that connection, Licensee expressly waives the benefit of California Civil Code Section 1542, which provides as follows:
A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.
The provisions of this section shall survive the termination of this License.
8. DEFAULT, BREACH AND REMEDIES
8.1. Licensee Default. Licensee shall be deemed to have breached and be in default under this License when any of the following occurs:
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8 (a) Licensee shall fail to make any payment or any reimbursement to SBCTA required herein when due;
(b) Licensee shall vacate all or a substantial portion of the Premises, whether or not Licensee is in default of the payment or other charges due under this License;
(c) Licensee shall fail to comply with any other term, provision or covenant of this License, and shall not cure such failure within three (3) days after written notice thereof to Licensee; or
(d) Licensee shall create or maintain, or allow any other person or entity to create or maintain, any public nuisance or any condition that fails to comply with any federal, state, SBCTA or rail operator specifications or safety regulations or that presents a danger to public safety or a safety hazard to any operations, personnel, passengers or property of SBCTA or any rail carrier operating upon the affected rail line(s) on the Premises or SBCTA’s adjacent right of way.
8.2. SBCTA’s Remedies.
8.2.1. Termination. Upon the occurrence of Licensee’s default and breach, SBCTA shall have the right, at any time, with or without notice or demand, to terminate this License, and at any time thereafter to recover possession of the Premises or any part thereof and expel and remove therefrom Licensee and any other person occupying the same, by any lawful means, and again repossess and enjoy the Premises without prejudice to any of the remedies that SBCTA may have under this License, at law or equity by reason of Licensee’s default or of such termination.
8.2.2. Corrective Measures. Should Licensee default on, breach, or fail to keep, observe or perform any agreement, covenant, term or condition on its part herein contained, then, in addition to any other available rights and remedies, SBCTA at its option may perform any corrective measures deemed by SBCTA in its sole and absolute discretion to be necessary or appropriate to protect public health or safety, or SBCTA’s legitimate governmental or proprietary interests or the interests of its railroad operators, at Licensee’s expense (including fees, costs and interest) which Licensee agrees to pay to SBCTA upon demand.
8.2.3. Costs. If SBCTA incurs any cost or expense occasioned by the default of Licensee (including but not limited to attorneys’ fees and costs), then SBCTA shall be entitled to receive such costs together with interest on all funds SBCTA expends at the lesser of eighteen percent (18%) per annum or the maximum rate allowed by law, whichever is lower, including without limitation, brokers’ fees incurred by SBCTA in connection with relicensing the whole or any part of the Premises; the costs of removing and storing Licensee’s or other occupant’s property; the costs of repairing, altering, and/or otherwise restoring the Premises to a safe and suitable
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9 condition, useable and acceptable to SBCTA, rail operators and future licensees; and all reasonable expenses incurred by SBCTA in enforcing or defending SBCTA’s rights and remedies, including reasonable attorneys’ fees whether or not suit is actually filed.
8.2.4. Remedies Cumulative. All rights, privileges and remedies of the parties are cumulative and not alternative or exclusive to the extent permitted by law except as otherwise provided herein
8.3. SBCTA Default and Licensee’s Remedies. SBCTA shall not be in default under this License unless SBCTA fails to perform obligations required of SBCTA within sixty (60) days after written notice is delivered by Licensee to SBCTA specifying the obligation which SBCTA has failed to perform; provided, however, that if the nature of SBCTA’s obligation is such that more than sixty (60) days are required for performance, then SBCTA shall not be in default if SBCTA commences performance within such sixty (60) day period and thereafter diligently prosecutes the same to completion. Licensee’s exclusive remedies shall be an action for specific performance.
9. INDEMNIFICATION
9.1. Licensee, on behalf of itself and its successors and assigns, agrees to indemnify, defend (by counsel satisfactory to SBCTA), and hold harmless SBCTA, in all of its capacities, and its members, commissioners, officers, directors, employees, agents, consultants, contractors, partners, affiliated entities, subsidiaries, permittees, licensees, successors and assigns (individually and collectively, “Indemnitees”), to the maximum extent allowed by law, from and against all loss, liability, claims, demands, suits, liens, claims of lien, damages (including consequential damages), costs and expenses (including, without limitation, any fines, penalties, judgments, litigation expenses, and experts’ and attorneys’ fees), that are incurred by or asserted against Indemnitees arising out of or connected in any manner with (i) the acts or omissions to act of the Licensee, or its Personnel (as defined in Section 7, Assumption of Risk and Waiver) or invitees of Licensee in connection with the SBCTA Property or the presence upon or performance of activities by Licensee or its Personnel with respect to the SBCTA Property, (ii) bodily injury to or death of any person (including employees of Indemnitees) or damage to or loss of use of property resulting from such acts or omissions of Licensee or its Personnel, or (iii) non-performance or breach by Licensee or its Personnel of any term or condition of this License, in each case whether occurring during the Term of this License or thereafter.
9.2. The Licensee acknowledges that any construction allowed on the Premises pursuant to this License is not being performed for SBCTA’s benefit or on SBCTA’s account and that this is an agreement allowing Licensee and/or its contractor(s) to enter upon SBCTA’s Property as an accommodation within the meaning of California Civil Code Section 2782.1. Therefore, the foregoing indemnity shall be effective regardless of any negligence (whether active, passive, gross, derivative, sole, joint, concurring or comparative) on the part of Indemnitees, unless caused solely by the gross negligence
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10 or willful misconduct of Indemnitees, and is in addition to any other rights or remedies which Indemnitees may have under the law or under this License. Upon request of SBCTA, Licensee shall provide insurance coverage for possible claims or losses covered by the indemnification and defense provisions of this License.
9.3. Claims against the Indemnitees by Licensee or its Personnel shall not limit the Licensee’s indemnification obligations hereunder in any way, whether or not such claims against Indemnitees may result in any limitation on the amount or type of damages, compensation, or benefits payable by or for Licensee or its Personnel under workers’ compensation, disability benefits or other employee benefits laws or insurance.
9.4. The indemnification and defense obligations of Licensee set forth in this section shall survive the termination and End Date of this License.
10. INSURANCE
10.1. SBCTA’s Insurance. SBCTA may maintain insurance covering the Premises and SBCTA’s ownership and operation thereof in such types and amounts as it deems necessary in its sole discretion. Such insurance shall be for the sole benefit of SBCTA and under its sole control. Licensee’s insurance policies shall provide primary coverage to SBCTA; when any such policy issued to SBCTA provides duplicate coverage or is similar in coverage, SBCTA’s policy will be excess over Licensee’s policies.
10.2. Licensee’s Insurance. Licensee, at its sole cost and expense, shall obtain and maintain in full force and effect during the Term of this License insurance as required by SBCTA in the amounts and coverages specified and issued by insurance companies as described in, and meeting all other requirements set forth in, Exhibit “B”. SBCTA reserves the right, throughout the Term of this License, to review and change the amount and type of insurance coverage it requires in connection with this License or the Work to be performed on the Premises. Prior to (i) entering the Premises or (ii) performing any Work or maintenance on the Premises, Licensee shall furnish SBCTA with insurance endorsements or certificates evidencing the existence, amounts and coverages of the insurance required to be maintained hereunder. SBCTA shall not be liable for the payment of any premiums or assessments for insurance required to be maintained by Licensee under this License. Self-insurance is not permitted. However, SBCTA may, in its sole and absolute discretion, permit self-insurance on a case by case, coverage by coverage, basis where the Licensee has documented, to SBCTA’s sole satisfaction, sufficient available assets and/or available funds and sufficient legal security in those assets to assure SBCTA that its risk is not greater than it would have been with acceptable insurance coverage, and otherwise meeting SBCTA’s self- insurance requirements. The privilege to self-insure with respect to any coverage required to be maintained hereunder may be granted or revoked by SBCTA at its sole and absolute discretion at any time. Upon revocation of self-insurance privilege, Licensee shall immediately provide all required insurances.
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11 10.3. Increases to Insurance. If any increase in the fire and extended coverage insurance premiums paid by SBCTA is caused by Licensee’s use and occupancy of the Premises, or if Licensee vacates the Premises and causes any increase in such premiums, then Licensee shall pay as an additional fee the amount of such increase to SBCTA, and, upon demand by SBCTA, the amount required to correct at Licensee’s expense the cause of such disallowance, penalty or surcharge to the satisfaction of the particular insurance authority.
11. MAINTENANCE AND REPAIR
Licensee, at Licensee’s sole expense, shall during the term of this License maintain the Improvements in a first-class condition, shall maintain the Premises in a good condition, free from weeds, litter, debris, refuse or other nuisance, and shall perform all maintenance and clean- up of the Premises and the Improvements as necessary to keep the Premises and the Improvements in good order and condition, to SBCTA’s sole satisfaction. If any portion of the SBCTA Property, including improvements or fixtures, suffers damage by reason of the access to or use of the Premises by Licensee or Licensee’s employees, agents, customers, invitees, licensees, consultants, and contractors (collectively, “Licensee’s Parties”), including but not limited to damage arising from any tests or investigations conducted upon the Premises, Licensee shall, at its own cost and expense, immediately repair all such damage and restore the SBCTA Property to as good a condition as before such cause of damage occurred. Repair of damage shall include, without limitation, re-grading and resurfacing of any holes, ditches, indentations, mounds or other inclines created by any excavation by Licensee or Licensee’s Parties. Licensee shall not perform any maintenance on railroad tracks and facilities without express prior written approval of and direction from SBCTA or the railroads with valid operating authority over SBCTA’s lines and compliance with all applicable standards, specification and safety requirements.
12. ALTERATIONS AND CONSTRUCTION
Except as otherwise provided herein, Licensee shall make no alterations, additions or Improvements to the Premises without obtaining the prior written consent of SBCTA in each instance. Any Work performed or caused to be performed by Licensee on the Improvements or the Premises shall be performed (a) at Licensee’s sole cost and expense; (b) in accordance with any and all applicable permit requirements, laws, rules, regulations and safety requirements (including SBCTA’s rules and regulations), and (c) in a manner which is (i) equal to or greater than the then applicable standards of the industry for such Work, and (ii) satisfactory to SBCTA.
Prior to commencement of any Work on the Premises, Licensee shall submit Work plans to SBCTA for review and approval. Any such Work must be carried out pursuant to Work plans approved in writing by SBCTA. In addition, Licensee shall provide SBCTA with at least fourteen (14) calendar days’ written notice prior to commencement of any Work on the Premises or the Improvements, except in cases of emergency, in which event Licensee shall notify SBCTA’s representative personally or by phone prior to commencing any Work. SBCTA shall have the right at any time and from time to time to post and maintain notices of non- responsibility. Unless otherwise requested by SBCTA, upon completion of any Work, Licensee shall restore the SBCTA Property to its condition immediately preceding the commencement of such Work.
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12 13. CONTRACTORS; APPROVAL AND INSURANCE
Any contractors of Licensee performing Work on the Improvements or the Premises shall first be approved in writing by SBCTA and acquire all required right of entry permits and authorizations from SBCTA and any rail operator utilizing affected or adjacent railroad tracks. With respect to such Work, Licensee shall, at its sole cost and expense, obtain and maintain in full force and effect throughout the term of such Work, insurance, as required by SBCTA, in the amounts and coverage specified on and issued by insurance companies as described in Exhibit “B”.
Additionally, Licensee shall cause any and all of its contractors and subcontractors which may (i) be involved with such Work, or (ii) may, for any reason, need to enter onto the Premises, to obtain and maintain in full force and effect during the Term of this License, or throughout the term of such Work (as applicable), insurance, as required by SBCTA, in the amounts and coverage specified on, and issued by insurance companies as described in Exhibit “B”. SBCTA reserves the right, throughout the Term of this License, to review and change the amount and type of insurance coverage it requires in connection with this License or the Work to be performed on the Premises.
14. REIMBURSEMENT
Licensee agrees to reimburse SBCTA for all reasonable costs and expenses that SBCTA incurs in connection with Work on or maintenance of the Premises or the Improvements, including, but not limited to, costs incurred by SBCTA in furnishing any materials or performing any labor, reviewing Licensee’s Work plans and inspecting any Work, installing or removing protection beneath or along SBCTA’s tracks, furnishing of watchmen, flagmen and inspectors as SBCTA deems necessary and such other items or acts as SBCTA in its sole discretion deems necessary to monitor or aid in compliance with this License, protect the safety of, and railway operations upon, its tracks and right-of-way, and to otherwise protect its interests. The costs and expenses addressed in this Section 14 shall include all costs that SBCTA incurs in complying with the Work or maintenance requirements of the railroads with valid operating authority over SBCTA’s lines.
15. LANDSCAPING
If required by SBCTA, then Licensee, at its sole cost and expense, shall install barrier landscaping to shield the Improvements from public view. SBCTA shall have the right to review and approve landscaping plans prior to installation. All landscaping activities shall be done in accordance with the provisions of Section 12 above (Alterations and Construction).
16. MARKERS
Except as modified by any additional provisions attached at Exhibit “D”, project markers in form and size satisfactory to SBCTA, identifying the Improvements and their owner(s), shall be installed and constantly maintained by and at the expense of Licensee at such locations as SBCTA shall designate. Such markers shall be relocated or removed upon request of SBCTA without expense to SBCTA. Absence of markers in or about SBCTA Property does not constitute a warranty by SBCTA of the absence of subsurface installations.
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13 17. COMPLIANCE WITH LAWS
Licensee shall comply with all applicable federal, state and local laws, regulations, rules and orders in its Work on, or maintenance, inspection, testing or use of, the SBCTA Property, and shall furnish satisfactory evidence of such compliance promptly upon request of SBCTA.
Licensee shall obtain all required permits or leases required by any governmental authority for its use of the Premises, at its sole cost and expense. Licensee shall comply with all SBCTA policies, rules and regulations applicable to its properties. Subject to SBCTA’s approval, Licensee shall at its own cost and expense install and construct all physical improvements to or needed to serve the Premises that are required by any federal, state or local building code or other law or regulation applicable to the Premises, or that are made necessary by the nature of Licensee’s use of the Premises. Licensee shall promptly comply with all governmental orders and directives for the correction, prevention and abatement of nuisances in or upon, or connected with, the Premises, all at Licensee’s sole expense.
18. SBCTA’S RIGHT OF ACCESS
18.1. Inspections. SBCTA shall have the right at any time (upon provision of reasonable notice of inspection to Licensee) or in case of emergency (without notice), to inspect the Premises in order to protect SBCTA’s interests therein and to monitor compliance with this License, including compliance with applicable federal, state and local laws, regulations, rules and orders. Failure to submit to or cooperate with any inspection may result in termination of the License.
18.2. Tests. If, in SBCTA’s sole judgment, any installation on, or use or condition of the Premises may have an adverse effect on the Premises or SBCTA Property, adjacent property or SBCTA’s operations, SBCTA shall be permitted to conduct any tests or assessments, including but not limited to environmental assessments, of, on or about the Premises, as it determines to be necessary or useful to evaluate the condition of the Premises. Licensee shall cooperate with SBCTA in any tests or inspections deemed necessary by SBCTA.
18.3. Costs. Licensee shall pay or reimburse SBCTA, as appropriate, for all reasonable costs and expenses incurred due to tests, inspections or any necessary corrective Work, maintenance and inspections thereafter. SBCTA may establish an inspection fee, which may be changed from time to time, as part of an inspection program. The user shall pay such fee for each such inspection. Failure to pay the fee may result in termination of the License.
18.4. Sale or Lease of Premises. SBCTA may at any time place on or about the Premises (including the Improvements) any ordinary “for sale” and “for lease” signs. Licensee shall also permit SBCTA and its agents, upon request, to enter the Premises or any part thereof, at reasonable times during normal business hours, to show the Premises to prospective tenants, purchasers or mortgagees.
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
14 19. ENVIRONMENTAL ASSESSMENT
Upon execution of this License, SBCTA may, in its sole discretion and if applicable, require Licensee to retain a duly licensed environmental consultant acceptable to SBCTA who shall perform an environmental assessment of the Premises and Licensee’s and Licensee’s Parties’ business activities and prepare a report on Licensee’s and/or Licensee’s Parties’ compliance with the provisions of this section. SBCTA may, if applicable, require Licensee to cause a similar environmental assessment to be conducted on an annual basis, and/or upon or within one (1) year after the expiration or earlier termination of this License, the cost of which shall be the sole responsibility of Licensee. Licensee shall provide a copy of the report or reports from the consultant(s) promptly to SBCTA upon receipt, and upon request shall promptly provide to SBCTA a copy of all data, documents and other information prepared or gathered in connection therewith.
20. HAZARDOUS/TOXIC MATERIAL USE AND INDEMNITY
20.1. Licensee shall operate and maintain the Premises in compliance with all, and shall not cause or permit the Premises to be in violation of any, Environmental Law which is now or may hereafter become applicable to Licensee or the Premises. As used herein, “Environmental Law” means any federal, state or local environmental, health and/or safety-related law, regulation, standard, decision of a court, permit or permit conditions, currently existing or as amended or adopted in the future. Except for any Hazardous Material expressly approved by SBCTA in writing as shown on Exhibit “C”, Licensee shall not cause or permit, or allow any of Licensee’s Parties to cause or permit, any Hazardous Material to be brought upon, stored, used, generated, treated or disposed of on or about the SBCTA Property. Any Hazardous Material on the site shall be stored, used, generated and disposed of in accordance with all applicable Environmental Laws. As used herein, “Hazardous Material” means any chemical, substance or material, including any mixture or solution, which by virtue of its properties or effects is potentially harmful to health, safety or property, or which is now or becomes in the future listed, defined or regulated in any manner under any Environmental Law as a hazardous or dangerous material or substance.
20.2. Licensee shall indemnify, defend (by counsel acceptable to SBCTA) and hold harmless the Indemnitees (as defined in Section 9, Indemnification) from and against all loss, liability, claim, damage, cost or expense (including without limitation, any fines, penalties, judgments, litigation expenses, attorneys’ fees, and consulting, engineering, and construction fees and expenses) incurred by Indemnitees as a result of (a) Licensee’s breach of any prohibition or provision of this section, or (b) any release of Hazardous Material upon or from the Improvements or the Premises or contamination of the SBCTA Property (i) which occurs due to the use and occupancy of the Improvements or the Premises by Licensee or Licensee’s Parties, or (ii) which is made worse due to the act or failure to act of Licensee or Licensee’s Parties.
20.3. The foregoing indemnity shall be effective regardless of any negligence (whether active, passive, derivative, joint, concurring or comparative) on the part of Indemnitees, unless caused solely by the gross negligence or willful misconduct of
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Form Approved 4/21/15 File No:
15 Indemnitees; shall survive termination or End Date of this License; and is in addition to any other rights or remedies which Indemnitees may have under the law or under this License.
20.4. In addition, in the event of any release on or contamination of the Premises, Licensee, at its sole expense, shall promptly take all actions necessary to clean up the affected property (including the SBCTA Property and all affected adjacent property – whether or not owned by SBCTA) and to return the affected property to the condition existing prior to such release or contamination, to the satisfaction of SBCTA and any governmental authorities having jurisdiction.
21. UNDERGROUND STORAGE TANKS
21.1. NEITHER LICENSEE NOR LICENSEE’S PARTIES SHALL INSTALL OR USE
ANY UNDERGROUND STORAGE TANKS ON THE PREMISES UNLESS
SPECIFICALLY APPROVED IN ADVANCE IN WRITING BY SBCTA, WHICH APPROVAL MAY BE WITHHELD IN SBCTA’S SOLE DISCRETION.
21.2. At SBCTA’s option, upon the termination of this License at any time and for any reason, Licensee shall, prior to the effective date of such termination, remove and close all underground storage tanks and related equipment and clean up and remove all Hazardous Material in, on, under and about the Premises, in accordance with the requirements of all Environmental Laws and to the satisfaction of SBCTA and any governmental authorities having jurisdiction, and deliver to SBCTA a copy of a certificate of closure issued for such tanks by the appropriate governmental authority.
22. CONDEMNATION
In the event all or any portion of the Premises shall be taken or condemned for public use by a governmental agency or any other party having the power of eminent domain (including conveyance by deed in lieu of or in settlement of condemnation proceedings), Licensee shall receive compensation (if any) only for the taking and damage to the Improvements. Any other compensation or damages arising out of such taking or condemnation awarded to Licensee are hereby assigned by Licensee to SBCTA.
23. BROKER’S FEES
Licensee agrees to indemnify and hold SBCTA harmless from and against any claims by any broker, agent or other person claiming a commission or other form of compensation by virtue of having dealt with Licensee with regard to obtaining this License.
24. SUBORDINATE RIGHTS
This License is subject and subordinate to the prior and continuing rights and obligation of SBCTA, its successors and assigns, to use the SBCTA Property in the exercise of its powers and in the performance of its duties, including those as a public transportation body, and to all Bonds issued by SBCTA and their Indentures. Accordingly, there is reserved and retained unto
City of Redlands SBCTA Contract 18-1001928
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16 SBCTA, its successors, assigns and permittees, the right to construct, reconstruct, operate, maintain and use existing and future rail tracks, facilities and appurtenances and existing and future transportation, communication, pipeline and other facilities and appurtenances in, upon, over, under, across and along the SBCTA Property or any portion thereof, and in connection therewith the right to grant and convey to others, rights and interests to the SBCTA Property or the Premises and in the vicinity of the Improvements, regardless of any effect or impact on the Improvements. Licensee shall bear all costs and losses it incurs associated with any modifications to the Improvements necessary to accommodate SBCTA’s exercise of any right hereunder. This License is subject to all licenses, leases, easements, restrictions, conditions, covenants, encumbrances, liens, claims and other matters of title (“title exceptions”) which may affect the SBCTA Property now or hereafter. This License is executed and delivered by SBCTA without any warranty of title, express or implied, and the words “grant” or “convey” as used herein shall not be construed as a warranty of title or a covenant against the existence of any such title exceptions.
25. ABANDONMENT
Should Licensee at any time abandon the use of the Improvements or the Premises, or any part thereof, or fail at any time for a continuous period of ninety (90) days to use the same for the purposes contemplated herein, then this License shall terminate to the extent of the portion so abandoned or discontinued, and in addition to any other rights or remedies, SBCTA shall immediately be entitled to exclusive possession and ownership of the portion so abandoned or discontinued, without the encumbrance of this License.
26. GENERAL PROVISIONS
26.1. Notices. All notices and demands which either of the Parties is required to or desires to give to the other shall be made in writing by personal delivery, by express courier service or by certified mail postage prepaid, and addressed to the other Party at its address set forth in the Basic License Provisions. Either of the Parties may change its address for the receipt of notice by giving written notice thereof to the other Party in the manner herein provided. Notices shall be effective only upon receipt by the Party to whom notice or demand is given.
26.2. Governing Law. This License shall be governed by the laws of the State of California.
26.3. Binding Effect. The terms, provisions and covenants and conditions contained in this License shall apply to, inure to the benefit of, and be binding upon, the parties hereto and upon their respective heirs, legal representatives, successors and permitted assigns, except as otherwise herein expressly provided. If more than one person executes this License as Licensee, then each shall be jointly and severally liable for all obligations of Licensee hereunder.
26.4. No Third Party Beneficiaries. This License is not intended by either party to confer any benefit on any third party other than the constituent members of SBCTA, including without limitations any broker, finder, or brokerage firm.
City of Redlands SBCTA Contract 18-1001928
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17 26.5. Severability. If any term, covenant, condition or provision of this License, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions, or provisions of this License, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.
26.6. Interest on Past-due Obligations. Except as expressly herein provided, any amount due to SBCTA that is not paid when due shall bear interest, from the date due, at the maximum rate then allowable by law. Such interest will be due SBCTA as it accrues.
Payment of such interest shall not excuse or cure any default by Licensee under this License, provided, however, that interest shall not be payable on late charges incurred by Licensee.
26.7. Captions. The captions included in this License are for convenience only and in no way define, limit, or otherwise describe the scope or intent of this License or any provision hereof, or in any way affect the interpretation of this License.
26.8. Survival of Obligations. All obligations of Licensee hereunder not fully performed as of the expiration or earlier termination of the Term of this License shall survive the expiration or earlier termination of this License, including without limitation all indemnity and defense obligations, all payment obligations with respect to Fees and all obligations concerning the condition of the SBCTA Property and the Improvements.
26.9. Waiver of Covenants or Conditions. The waiver by either Party of any term, covenant, agreement or condition under this License shall not invalidate this License, nor shall it be considered a waiver by it of any other covenant or condition or of the same covenant or condition in another instance. To the extent patterns of practice between the Parties are inconsistent with the terms of this License, such patterns of practice shall not waive in part or in full SBCTA’s right to insist upon strict accordance with any of the provisions of this License. The subsequent acceptance of payments hereunder by SBCTA shall not be deemed to be a waiver of any preceding breach by Licensee of any provisions, covenant, agreement or condition of this License, other than the failure of Licensee to pay the particular payment so accepted, regardless of SBCTA's knowledge of such proceeding breach at the time of acceptance of such payment.
26.10. Effective Date/Nonbinding Offer. Submission of this License for examination or signature by Licensee does not constitute an offer of or option for a license, and it is not effective as a license or otherwise until executed and delivered by both SBCTA and Licensee. Each individual executing this License on behalf of SBCTA or Licensee represents and warrants to the other Party that he or she is authorized to do so.
26.11. Assignment. This License and the license granted herein are personal to the Licensee. Licensee shall not assign or transfer (whether voluntary or involuntary) this License in whole or in part, or permit any other person or entity to use the rights or
City of Redlands SBCTA Contract 18-1001928
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18 privileges hereby conveyed, without the prior written consent of SBCTA, which may be withheld in SBCTA’s sole and absolute discretion, and any attempted act in violation of the foregoing shall be void and without effect and be a material breach of this License, which gives SBCTA the right to immediately terminate this License and seek all other available remedies for breach.
26.12. Entire Agreement; Amendments. This License, including all attached Exhibits, constitutes the entire agreement between the Parties and supersedes all prior verbal or written agreements and understandings between the Parties with respect to the items set forth in this License. The Parties each acknowledge that no representations, inducements, promises or agreements, oral or written, have been made by either SBCTA or Licensee, or anyone acting on behalf of SBCTA or Licensee, other than those contained in this License. No amendments, changes, revisions, or discharges, at any time in whole or in part, of this License shall be binding upon the Parties unless they are in writing and executed by the Parties.
26.13. Attorneys’ Fees. If either SBCTA or Licensee commences or engages in, or threatens to commence or engage in, an action by or against the other party arising out of or in connection with this License or the Premises, the prevailing party shall be entitled to have and recover from the losing party reasonable attorneys’ fees and other costs incurred in connection with the action, preparation for such action, any appeals relating thereto and enforcing any judgments rendered in connection therewith. If SBCTA becomes involved in any action, threatened or actual, by or against anyone not a party to this License, but arising by reason of or related to any act or omission of Licensee or Licensee’s Parties, Licensee agrees to pay SBCTA’s reasonable attorneys’ fees and other costs incurred in connection with the action, preparation for such action, any appeals relating thereto and enforcing any judgments rendered in connection therewith.
26.14. Nondiscrimination. Licensee certifies and agrees that all persons employed by Licensee and Licensee’s affiliates, subsidiaries, or holding companies, and any contractors retained by Licensee with respect to the Premises, are and shall be treated equally without regard to or because of race, religion, ancestry, national origin, or sex, and in compliance with all federal and state laws prohibiting discrimination in employment, including but not limited to the Civil Rights Act of 1964; the Unruh Civil Rights Act; the Cartwright Act; and the California Fair Employment Practices Act.
26.15. Further Acts. Licensee agrees to perform any further acts and to execute and deliver in recordable form any documents which may be reasonably necessary to carry out the provisions of this License, including, at SBCTA’s sole discretion, the relocation of the Improvements and the license granted hereby.
26.16. Time of Essence. Time is of the essence for this License.
26.17. Certificates. Licensee agrees from time to time within ten (10) days after request of SBCTA, to deliver to SBCTA, or SBCTA’s designee, all financial statements for the previous three (3) fiscal years of Licensee, and an estoppel certificate stating that
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
19 this License is in full force and effect, the date to which all applicable payments have been paid, the unexpired Term of this License and such other matters pertaining to this License as may be requested by SBCTA.
26.18. Security Measures. Licensee hereby acknowledges that the payments payable to SBCTA hereunder do not include the cost of guard service or other security measures, and that SBCTA shall have no obligation whatsoever to provide same. Licensee assumes all responsibility for the protection of Licensee, Licensee’s Parties and their property from acts of third parties.
26.19. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment “under protest” and such payment shall not be regarded as a voluntary payment, and there shall survive the right on the part of said party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was not legally required to pay under the provisions of this License.
26.20. No Recording. Licensee shall not record or permit to be recorded in the official records of the county where the Premises are located, this License, any memorandum of this License or any other document giving notice of the existence of this License or the license granted hereby.
26.21. Flagmen. Where applicable, as a part of or in addition to all other safety obligations, Licensee shall maintain, at Licensee’s expense, competent flagmen to protect and control movement of vehicles and equipment of Licensee or any other user of the Premises while upon the Premises, consistent with any applicable laws and regulations regarding work protection, including the rules and policies of SBCTA and/or any railroad operator having rights to utilize any affected or adjacent railroad tracks.
26.22. Additional Provisions. Those additional provisions set forth in Exhibit “D”, if any, are hereby incorporated by this reference as if fully set forth herein. To the extent that any additional provisions in Exhibit “D” conflict with the provisions contained in this Part II, Standard License Provisions, the provisions in Exhibit “D” shall control.
Exhibit “A”
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
1 Premises
D
D
D
D
C
O
O
K
0 5 0 1 0 0 1 5 0 2 0 02 5
F e e t
1 8 - 1 0 0 1 9 2 8 - E x h ib it A
A 5 9 , 2 3 0 s q u a r e f o o t u s e o f t h e R e d la n d s S u b d iv is io n f o r a R a il C o m m u t e r P a r k in g L o t ; 6 1 3 f e e t b y 1 0 0 f e e t , m o r e o r le s s , e x c e p t in g t h a t p o r t io n o f t h e r a il r ig h t o f w a y m a in t a in e d a s P a r k A v e n u e .
U n iv e r s it y S t a t io n P a r k in g L o t
Exhibit “B”
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
1 INSURANCE REQUIREMENTS
Exhibit “B”
Insurance Requirements Exhibit B SBCTA Contract No. 18-1001928 1 File No.
INSURANCE REQUIREMENTS
1. AGREEMENT shall mean the permit, license, lease, or location specific exhibit to which this Exhibit is attached. WORK shall mean any activity or use permitted under the AGREEMENT . The holder of the AGREEMENT is hereinafter referred to as PERMITTEE. PERMITTEE shall at all times during the term of the AGREEMENT or for such other periods as required herein, procure and maintain broad form insurance against claims for injuries to persons or damages to property that may arise from, or in connection with, the use of SBCTA property hereunder by the PERMITTEE, its agents, representatives, employees, or subcontractors, with coverage at least as broad as the following minimum requirements specified below. Selected subparagraphs to this Paragraph 1 shall apply:
1.1. Worker’s Compensation/Employer’s Liability. The policies must include the following:
• Coverage A. Statutory Benefits
• Coverage B. Employer’s Liability
• Bodily Injury by accident - $1,000,000 per accident
• Bodily Injury by disease - $1,000,000 policy limit/$1,000,000 each employee Such policies shall contain a waiver of subrogation in favor of the parties named as Indemnitees below. Such insurance shall be in strict accordance with the applicable workers’ compensation laws in effect during performance of the WORK by PERMITTEE, any subcontractor of any tier. All subcontractors of any tier performing any portion of the WORK for PERMITTEE shall also obtain and maintain the same insurance coverage as specified in this subparagraph, with a waiver of subrogation in favor of PERMITTEE and all parties named as Indemnitees by the AGREEMENT .
Where coverage is provided through the California State Compensation Insurance Fund, the requirement for a minimum A.M. Best rating does not apply.
1.2. Commercial General Liability. The policy must include the following:
• PERMITTEE shall maintain commercial general liability (CGL) insurance (Insurance Services Office (ISO) Form CG 00 01), and if necessary excess/umbrella commercial liability insurance, with a combined limit of liability of not less than $7,000,000 each occurrence . If the AGREEMENT value is equal to or in excess of $25,000,000, then the combined limit of liability shall be no less than $25,000,000 each occurrence.
• The policy shall, at a minimum, include coverage for any and all of the following: bodily injury, property damage, personal injury, broad form contractual liability (including coverage to the maximum extent possible for the indemnifications in the AGREEMENT), premises-operations (including explosion, collapse and underground coverage), duty to defend in addition to (without reducing) the limits of the policy(ies), and products and completed operations. o $2,000,000 per occurrence limit for property damage or bodily injury o $1,000,000 per occurrence limit for personal injury and advertising injury o $2,000,000 per occurrence limits for products/completed operations covera ge (ISO Form 20 37 10 01) if SBCTA’s Risk Manager determines it is in SBCTA’s best interests to require such coverage,
o If a general aggregate applies, it shall apply separately to this project/location. The project name must be indicated under “Description of Operations/Locations” (ISO Form CG 25 03 or CG 2504).
• Coverage is to be on an “occurrence” form. “Claims made” and “modified occurrence” forms are not acceptable.
Insurance Requirements Exhibit B SBCTA Contract No. 18-1001928 2 File No.
• A copy of the declaration page or endorsement page listing all policy endorsements for the CGL policy must be included.
All subcontractors of any tier performing any portion of the WORK for PERMITTEE shall also obtain and maintain the CGL insurance coverage with limits not less than:
• Each occurrence limit: $1,000,000
• General aggregate limit: $2,000,000
• Personal injury and advertising limit $1,000,000
• Products-completed operations aggregate limit $2,000,000 All subcontractors’ deductibles or self -insured retentions must be acceptable to SBCTA’s Risk Manager.
1.3. Umbrella/Excess CGL. The policy must include the following:
• If the PERMITTEE elects to include an umbrella or excess policy to cover any of the total limits required beyond the primary commercial general liability policy limits and/or the primary commercial automobile liability policy limits, then the policy must include the following:
o The umbrella or excess policy shall follow form over the PERMITTEE’s primary general liability coverage and shall provide a separate aggregate limit for products and completed operations coverage.
o The umbrella or excess policy shall not contain any restrictions or exclusions beyond what is contained in the primary policy.
o The umbrella or excess policy shall contain a clause stating that it takes effect (drops down) in the event the primary limits are impaired or exhausted. o The umbrella or excess policy must also extend coverage over the automobile policy if it is to be used in combination with the primary automobile policy to meet the total insurance requirement limits.
There shall be no statement limiting the coverage provided to the parties listed as additionally insureds or as indemnitees in the AGREEMENT.
1.4. Commercial Auto. The policy must include the following:
• A total limit of liability of not less than $5,000,000 each accident . This total limit of liability may be met by combining the limits of the primary auto policy with an umbrella or excess policy in accordance with Section 1.3 (Umbrella/Excess CGL), above. • Such insurance shall cover liability arising out of any vehicle, including owned, hired, leased, borrowed and non-owned vehicles assigned to or used in performance of the WORK. • Combined Bodily Injury and Property Damage Liability insurance The commercial automobile liability insurance shall be written on the most recent edition of ISO Form CA 00 01 or equivalent acceptable to SBCTA.
1.5. Pollution Liability The policy must include the following:
• $2,000,000 per claim or occurrence limits/$4,000,000 in the aggregate • If the WORK involves mold identification / remediation, the policy shall not contain a mold exclusion and the definition of “Pollution” shall include microbial matter including mold. • If the WORK involves lead-based paint or asbestos identification/remediation, the policy shall
Insurance Requirements Exhibit B SBCTA Contract No. 18-1001928 3 File No.
not contain lead-based paint or asbestos exclusions.
1.6. Railroad Protective Liability Insurance: Insurance Services Office Form Railroad Protective Liability, AAR-AASHTO (ISO/RIMA), in the name of SCRRA with respect to the operations they or any of their subcontractors perform on the Property. Minimum Limits: $2 million per occurrence, combined single limit, for coverage and for losses arising out of injury to or death of all persons and for physical lo ss or damage to or destruction of Property, including the loss of use thereof. A $6 million annual aggregate shall apply. If providing coverage on the London claims- made form, the following provisions shall apply:
• The limits of liability shall be not less than $3 million per occurrence, combined single limit. A $9 million aggregate may apply.
• Declarations item 6, extended claims made date, shall allow an extended claims made period no shorter than the length of the original policy period plus one year. • If equivalent or better, wording is not contained in the policy form, the following endorsement must be included:
o It is agreed that "physical damage to Property" means direct and accidental loss of or damage to rolling stock and their contents, mechanical c onstruction equipment or motive power equipment, railroad tracks, roadbed, catenaries, signals, bridges or buildings.
In cases of low hazard activity and insignificant risk to rail facilities, and if the exposure to the track is physically separated by a b uilding, floor or a continuous fence (no thoroughfares) and the employees of the Contractor are explicitly notified, trained, and supervised such that they are not permitted to have any contact with the track or its related improvements, the Railroad Prote ctive Liability Insurance requirement may be waived by SBCTA, or its designated representative, in SBCTA’s sole and absolute discretion, where SBCTA’s agreements and obligations with rail operators allow it.
2. General Provisions
2.1. Qualifications of Insurance Carriers. All policies shall be written by insurance carriers shall be authorized and admitted to do business in the state of California with a current A.M. Best rating of A-VIII or better. Contractor’s Pollution Liability policies may be from non -admitted carriers provided they are authorized and licensed in the state of California and meet the current A.M. Best rating of A: VIII or better.
2.2. Additional Insurance Coverage. All policies, except those for Workers’ Compensation insurance, shall be endorsed by ISO Form CG 20 10 11 85, or if not available, then ISO Form CG 20 38, to name San Bernardino County Transportation Authority and its officers, directors, members, employees, agents and volunteers, as additional insureds (“Additional Insureds”). With respect to general liability arising out of or connected with work or operations performed by or on behalf of the PERMITTEE permitted under this AGREEMENT, coverage for such Additional Insureds shall not extend to liability to the extent prohibited by section 11580.04 of the Insurance Code. The additional insured endorsements shall not limit the scope of coverage for SBCTA to vicarious liability but shall allow coverage for SBCTA to the full extent provided by the policy.
2.3. Proof of Coverage. Evidence of insurance in a form acceptable to SBCTA’s Risk Manager, including declarations pages of each policy, certificates of insurance and the required additional insured endorsements, shall be provided to SBCTA’s Procurement Analyst prior to issuance of the NTP or pr ior to commencing any WORK , as SBCTA specifies. Certificate(s) of insurance, as evidence of the required insurance shall: be executed by a duly authorized representative of each insurer; show compliance with the insurance requirements set forth in the AGREEMENT together with Exhibit B; set forth deductible amounts applicable to each policy; list all exclusions which are added by endorsement to each policy; and also include the Contract Number and the SBCTA Project Manager’s name on the face of the certificate. If requested in writing by SBCTA,
Insurance Requirements Exhibit B SBCTA Contract No. 18-1001928 4 File No.
PERMITTEE shall submit complete copies of all required insurance policies within ten (10) business days of a written request by SBCTA.
2.4. Deductibles. Regardless of the allowance of exclusions or deductibles by SBCTA, PERMITTEE shall be responsible for any deductible amount and shall warrant that the coverage provided to SBCTA is consistent with the requirements of the AGREEMENT together with Exhibit B .
PERMITTEE will pay, and shall require its sub -consultants to pay, all deductibles, co -pay obligations, premiums and any other sums due under the insurance required in Exhibit B . All deductibles will be in amounts acceptable to SBCTA’s Risk Manager. PERMITTEE will advise SBCTA in writing as to the amounts of any deducti ble, or as to any increase in any insurance deductible under any insurance required above. There will be no deductibles in excess of $250,000 per occurrence, loss or claim under the insurance. There shall be no self-insured retention. SBCTA will have the right, but not the obligation, to pay any deductible due under any insurance policy. If SBCTA pays any sums due under any insurance required above, SBCTA may withhold said sums from any amounts due PERMITTEE. The policies shall not provide that any deductible, or other payment required under the policy can be paid only by the named insured, and not by an additional insured.
2.5. PERMITTEE’s and Sub contractors’ Insurance will be Primary. All policies required to be maintained by the PERMITTEE or any subcontractor with the exception of Professional Liability and Worker’s Compensation shall be endorsed, with a form at least as broad as ISO Form CG 20 01 04 13), to be primary coverage, and any coverage carried by any of the Additional Insureds shall be excess and no n-contributory. Further, none of PERMITTEE’s nor subcontractors’ pollution, automobile, general liability or other liability policies (primary or excess) will contain any cross-liability exclusion barring coverage for claims by an additional insured against a named insured.
2.6. Waiver of Subrogation Rights. To the fullest extent permitted by law, PERMITTEE hereby waives all rights of recovery under subrogation against the Additional Insureds named herein, and any other consultant, subconsultant or sub-subcons ultant performing work or rendering services on behalf of SBCTA, in connection with the planning, development and construction of the Project.
To the fullest extent permitted by law, PERMITTEE shall require similar written express waivers and insurance clauses from each of its subcontractors of every tier. PERMITTEE shall require all of the policies and coverages required in Exhibit B to waive all rights of subrogation against the Additional Insureds (ISO Form CG 24 04 05 09). Such insurance and coverage s provided shall not prohibit PERMITTEE from waiving the right of subrogation prior to a loss or claim.
2.7. Cancellation. If any insurance company elects to cancel or non -renew coverage for any reason, PERMITTEE will provide SBCTA thirty (30) days prior writ ten notice of such cancellation or nonrenewal. If the policy is cancelled for nonpayment of premium, PERMITTEE will provide SBCTA ten (10) days prior written notice. In any event, PERMITTEE will provide SBCTA with a copy of any notice of termination or notice of any other change to any insurance coverage required herein which PERMITTEE receives within one business day after PERMITTEE receives it by submitting it to SBCTA at [email protected] to the attention of SBCTA’s Procurement Analyst, and by dep ositing a copy of the notice in the U.S. Mail in accordance with the notice provisions of the AGREEMENT.
2.8. Enforcement. SBCTA may take any steps as are necessary to assure PERMITTEE’s compliance with its insurance obligations as identified within the AGREEMENT and / or Exhibit B . Failure to continuously maintain insurance coverage as provided herein is a material breach of contract.
In the event the PERMITTEE fails to obtain or maintain any insurance coverage required, SBCTA may, but is not required to, maintain this coverage and charge the expense to the PERMITTEE or withhold such expense from amounts owed PERMITTEE, or terminate the AGREEMENT. The insurance required or provided shall in no way limit or relieve PERMITTEE of its duties and responsibility under the Contract, including but not limited to obligation to indemnify, defend and hold harmless the Indemnitees named below. Insurance coverage in the minimum amounts set forth
Insurance Requirements Exhibit B SBCTA Contract No. 18-1001928 5 File No.
herein shall not be construed to relieve PERMITTEE for liability in excess of such coverage, nor shall it preclude SBCTA from taking other actions as available to it under any other provision of the Contract or law. Nothing contained herein shall relieve PERMITTEE, or any subcontractor of any tier, of their obligations to exercise due care in the performance of their duties in connection with the WORK, and to complete the WORK in strict compliance with the AGREEMENT.
2.9. No Waiver. Failure of SBCTA to enforce in a timely manner any of the provisions of Exhibit B shall not act as a waiver to enforcement of any of these provisions at a later date.
2.10. Contractors and S ubcontractors Insurance. Insurance required of the PERMITTEE shall be also provided by subcontractors, or by PERMITTEE on behalf of all subcontractors, to cover WORK, performed by said subcontractors, permitted under the AGREEMENT. PERMITTEE may reduce types and the amounts of insurance limits provided by subcontractors to be proportionate to the amount of the subcontractor ’s contract and the level of liability exposu re for the specific type of work performed by the subcontractor. PERMITTEE shall be held responsible for all modifications, deviations, or omissions in these insurance requirements as they apply to subcontractor.
2.11. Higher limits. If PERMITTEE maintains higher limits than the minimums shown above, SBCTA shall be entitled to coverage for the higher limits maintained by PERMITTEE. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to SBCTA.
2.12. Special Risks or Circumstances. SBCTA reserves the right to modify any or all of the above insurance requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Exhibit “C”
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
1 Permitted Hazardous Material
No hazardous material is permitted to be used or stored on Premises.
Exhibit “D”
City of Redlands SBCTA Contract 18-1001928
Form Approved 4/21/15 File No:
1 Additional Provisions
Exhibit "D"
Exhibit “D” - Additional Requirements SBCTA Contract No. 18-1001928 Form Approved 2019 03 06 1 File No.
ADDITIONAL REQUIREMENTS
The following Additional Requirements are imposed on the Tenant/Licensee/Permittee and all of its contractors, subcontractors, employees, laborers or other persons performing any work upon SBCTA property on behalf of Tenant/Licensee/Permittee, and are made part of the terms of the Lease/License/Permit to which this Exhibit D is attached (“Agreement”).
As used hereinafter, the term “Contractor” shall include the Tenant/Licensee/Permittee and each and every one of its contractors, subcontractors, employees, laborers, agents or other persons performing any work upon SBCTA property on behalf of Tenant/Licensee/Permittee; and the term “railroad operator” or “operating railroad” shall mean Southern California Regional Rail Authority (SCRRA), Burlington Northern Santa Fe Railroad Railway Company (BNSF) and/or any other railroad company or rail carrier ha ving operating rights over rail lines owned or controlled by SBCTA.
Contractor shall fully comply with each and every one of the Additional Requirements below which is in any way applicable to the type of use, construction, installation or facility allowed under the Contractor’s Agreement and approved by SBCTA as required thereunder (“Permitted Use”). The inclusion of an Additional Requirement below that is not in any way applicable to the Contractor’s Permitted Use shall not imply any right, permission or consent to expand the Permitted Use in any way.
1. Contractor agrees to execute and deliver to each railroad operator prior to commencing any work within the rail right -of-way, a railroad Right of Entry Agreement which will include agreement to abide by each railroad operator’s rules and requirements for construction on railway property. Contractor shall secure approval from SBCTA and each railroad operator of the design of any structures and facilities prior to commencing work on their construction or installation.
2. Contractor will acquire and comply with any and all additional permits required by the railroad operator(s), affected public utilities and/or by any government agency having jurisdiction. Any permit fees, inspection fees, flagging fees, or costs ass ociated with the use or maintenance of the Premise by any governmental agency, department, or organization, and any labor expenses for the installation or maintenance of any permitted improvements are the Contractor’s sole responsibility. Fully conformed c opies of all permits are to be provided to SBCTA . Additional permits required of the Contractor may include but are not limited to encroachment permits, Storm Water Pollution Prevention Plans, environmental permits, temporary use permits, regulatory permit s and third party utility permits. Contractors shall have all original executed agreements and permits on hand while on site and will present them on demand of representative of SBCTA and/or the railroad operator(s). Prior to the commencement of work, the contractor shall submit to SBCTA for review and approval, a description of the work process including a detailed schedule of all work activities to be carried out on SBCTA property.
SCRRA’s Right of Way Engineers Office - (909) 394 - 3418; BNSF’s Roadmaster Office - (909) 386 - 4061
Exhibit "D"
Exhibit “D” - Additional Requirements SBCTA Contract No. 18-1001928 Form Approved 2019 03 06 2 File No.
3. Contractor at its sole cost and expense shall obtain and maintain, in full force and effect, insurance, as required by SBCTA and the railroad operator(s) during the entire construction period. The Contractor shall furni sh copies of the insurance certificates to SBCTA and all affected railroad operators.
4. Contractor agrees to comply with instructions of SBCTA and each railroad operator’s Employee-In-Charge (EIC) and other representatives in relation to the proper manner of protection of the tracks and the traffic moving thereon, pole lines, signals and other property of SBCTA or its member agencies, tenants or licensees at or in the vicinity of the work, and shall perform the work at such times as not to endanger or interfe re with safe and timely operations of railroad operators or of SBCTA’s track and other facilities.
5. Contractor will call the appropriate operating railroad to arrange for flagging services a minimum of fifteen (15) working days prior to beginning work. Although every effort is made to accommodate schedules, prior notification does not guarantee the availability of protective/flagging services for the proposed date of work. The SCRRA/BNSF flagman/EIC has sole authority to protect safe railroad operations and infrastructure, therefore, only they and their representatives are permitted to perform flagging operations within the railroad right- of-way. At all times the contractor shall follow the flagman/EIC’s direction. Contractor’s work may not proceed in the absence of a flagman in accordance with applicable rules. At no time shall any contractor be permitted to cross any track or place or maintain any personnel or equipment within the railroad right -of- way without the permission of the railroad flagman.
SCRRA’s Flagging Office (213) 305-8424
BNSF’s Flagging Office (909) 386-4061
6. Prior to the start of construction and at the contractor’s expense, all personnel including subcontractors and third parties shall complete SCRRA’s/BNSF’s Third Party Safety Training course, which is required for all work near or within the railroad right- of-way.
Evidence of training must be supplied upon request of SBCTA and its representatives.
No work may commence on the railroad right -of-way until this training has been completed. The contractor shall make the necessary arrangements for each equipment operator to have constant and direct radio contact with their foreman. The foreman will in turn have constant and direct contact with the SCRRA/BNSF flagman/EIC.
7. Contractor shall be respo nsible for the location and protection of any and all surface, sub- surface, and overhead lines, structures and improvements. Contractor shall not damage, destroy or interfere with any existing encumbrances, licenses and rights (whether public or private), granted upon or relating to the railroad right -of-way. It shall be the Contractor’s responsibility to contact Underground Alert and locate all underground facilities prior to the commencement of construction. At the same time, the contractor shall notify the operating railroad for signal and communications cables and conduits mark- outs. Contractor shall obtain permission from the owners of any fiber optic, gas, electrical, water, oil or other lines which may be impacted by work on or any use of the Premises by Contractor.
SCRRA Signal Department (909) 592-1346
BNSF Signal Department (909) 386-4051
Exhibit "D"
Exhibit “D” - Additional Requirements SBCTA Contract No. 18-1001928 Form Approved 2019 03 06 3 File No.
8. In case of signal emergencies or grade crossing problems, the contractor shall call the following emergency numbers.
SCRRA Signal Emergency Department (888) 446-9721
BNSF Signal Emergency Department (909) 386-4051
9. Contractor shall prepare and submit traffic control plan for SBCTA/SCRRA approval for projects that will affect vehicular traffic at an existing highway-rail grade crossing.
10. If SBCTA or any of its as sociated rail entities or railroad operators deem it necessary in the future, to modify, or to build additional, track or tracks or other facilities in connection with the operation of its railroad, at the request of SBCTA, contractor shall modify, at its own expense, any or all of its permitted facilities to conform to the rail facilities.
11. Both Contractor and SBCTA acknowledge that the Premises is Licensed in “AS IS” condition and any track removal, grading, paving and fencing as may be necessary or required to meet Contractor’s needs will be the sole responsibility and at the sole cost of the Contractor and subject to SBCTA’s and any affected operating railroad’s prior review and approval, which may be withheld in SBCTA’s or the affected operating railroad’s sole and absolute discretion. SBCTA or the affected operating railroad may require that any track removal and/or other work within the right -of-way be done by SBCTA or the railroad operator, respectively, but all suc h work shall remain at the sole cost of the Contractor, who may be required to deposit the estimated cost plus 25% in advance of the work, subject to refund or additional charge at the conclusion of the work.
No permanent structures may be constructed on t he premises without SBCTA’s prior written approval. Contractor will be responsible for the removal of any or all permitted improvements upon termination of Agreement as directed by SBCTA.
12. Contractor shall pay for any and all utilities for its benefit, security and use.
13. SBCTA makes no warranties as to the suitability of the location for Contractor’s intended use, and Contractor assumes all risks as to environmental compliance, zoning, visibility, or any other factors which may affect Contractor’s intended us e of the premises.
14. Boring of carrier or direct burial utilities by directional boring methods is prohibited.
15. Signs are not permitted on or along the perimeter of the Premises unless such signs were requested and approved under Contractor’s original proposal and covered by the required insurance. The contractor shall install permanent signs identifying the location of pipes at the edge of the railroad right-of-way unless within a public grade crossing.
16. Contractor shall not bring upon or use any impor t soil on the Premises in conjunction with any purposes allowed under this Agreement, until said import soil has been laboratory tested by a certified hazardous waste testing laboratory and the test results have been approved by SBCTA. Additionally, any soil currently existing on the Premises may not be spread on the Premises unless and until it is characterized as clean soil to the reasonable satisfaction of SBCTA. All soil piles are to be placed on a barrier to prevent intermingling with surface soils.
Exhibit "D"
Exhibit “D” - Additional Requirements SBCTA Contract No. 18-1001928 Form Approved 2019 03 06 4 File No.
17. Contractor shall keep the Premises free and clear of weeds, trash, vegetation, unauthorized vehicle parking and graffiti and from occupancy by transients/homeless persons or individuals. Contractor shall be fully responsible for all maintenance and maintenance of adjoining SBCTA property that is required or necessary in connection with Contractor’s use of Premises.
18. Prior to commencement of construction, the contractor shall submit to SBCTA / SCRRA a plan showing the proposed method of casing installation, construction access, stockpile locations, SWPPP control measures, fencing type and location and a milestone schedule.
19. For pipelines carrying flammable or hazardous materials, the contractor shall adhere to special conditions stated in the Right of Entry (ROE) Agreement.
20. The jacking and receiving pits shall be constructed outside of the railroad right of way unless shown on the SBCTA approved plans and shall not be located between any track and the automatic signal gate arms. The contractor shall layout the proposed jack and bore pits prior to the commencement of work. Only after the SBCTA/SCRRA inspector has approved the layout will the Contractor be allowed to begin work.
21. Contractor shall construct a temporary fence along the railroad right–of-way, or along the edge of pits closest to the track, on both sides of the pit, extending 50- feet in both directions from the pit, and measuring a minimum of 6- feet high. Fences are not required for w ork at grade crossings. Contractor shall pave the Premises area with asphalt or concrete, when requested, around the entire perimeter of the property as described in the Agreement in Part I and Exhibit “A”. Contractor shall be responsible for total expense of fencing and asphalt.
22. All jack and bore operations within the railroad right -of-way shall be performed continuously on a 24-hour basis until work is completed with a SCRRA/BNSF flagman and SCRRA/BNSF inspector present at all times. Should work begin wi thout the flagman and inspector present, the work will be halted and any casing installed will be abandoned in place, pressure grouted full, and capped to the satisfaction of SBCTA.
23. The contractor shall submit to SBCTA/SCRRA for review, drawings and calculations for any shoring that may affect or be influenced by the railroad tracks. All shoring designs shall comply with the requirements of, and be approved by, SBCTA and/or the affected operating railroad. All drawings and calculations shall be signed and stamped by a California licensed Civil or Structural Professional Engineer.
24. Prior to commencement of work, the contractor shall submit to SBCTA /SCRRA for review, load calculations for the proposed jacking casing with applied load as defined by Cooper E -80 with a 50% added impact load. The calculations shall be signed and stamped by a California licensed Civil or Structural Professional Engineer.
25. Should ground water or loose or unstable soils conditions be encountered during construction, the contractor shall immediately stop work, notify the railroad flagman, provide necessary structural support to track and other railroad structures, and notify t he affected operating railroads and SBCTA. It shall be the responsibility of the contractor to make necessary corrections to the construction process to allow for said conditions.
26. All underground utilities under railroad tracks shall be encased in a larger pipe or conduit Exhibit "D"
Exhibit “D” - Additional Requirements SBCTA Contract No. 18-1001928 Form Approved 2019 03 06 5 File No.
called the “casing pipe”. Said casing pipe shall be installed across the entire width of the railroad right- of-way and shall extend beyond the right of way a minimum of 10- feet.
The top of the casing shall have a minimum depth of 6- feet below the top of tie and a minimum depth of 5-feet below ground surface including bottom of ditches and other low points within the railroad right- of-way. All ends of the casing pipe shall be sealed unless otherwise authorized by SBCTA. Casing and carrier pipes shall be constructed to prevent leakage of any substance. When casing pipes are sealed at each end, vent pipes shall be installed. All casing pipes shall be installed with a minimum slope of 1%. Installation of casing pipes by open trenching is prohibited.
27. Abandoned pipes shall be removed from their casing pipes. The empty casing pipe shall be pressure grouted full for the entire length of the pipe. Should there be no casing pipe; the abandoned pipe shall be pressure grouted full the entire length of the pipe. A SBCTA / SCRRA inspector must be present during the grouting process.
28. Casing jacking shall adhere to the following requirements:
a. This method shall be in accordance with the American Railway Engineering and Maintenance of Way Association recommended practices, Volume 1, Chapter 1, Part 4, “Earth Boring and Jacking Culvert Pipe Through Fills.” This operation shall be conducted without hand-mining ahead of the pipe and without the use of any type of boring, augering, or drilling equipment.
b. Bracing and backstops and jacks shall be designed and used with sufficient rating so that the jacking can progress without stoppage (except for adding lengths of pipe) until the leading edge of the pipe reaches the receiving pit. c. During jacking, an earth plug 1.5 times the diameter of the casing shall be maintained at all times. Jacking operations shall be continuous on a non -stop, 24- hour per day basis until the jacking operation is completed.
29. Casing boring shall adhere to the following requirements:
a. This method consists of pushing the pipe into the fill with a boring auger rotating within the pipe to remove the spoil. When augers or similar devices are used for casing replacement, the front of the pipe shall be provided with mechanical arrangements or devices that will positively prevent the auger from leading the casing so that there will be no unsupported excavation ahead of the casing. The auger and cutting head arrangement shall be removable from within the pipe in the event an obstruction is encountered. The over -cut by the cutting head shall not exceed the outside diameter of the pipe by more than one -half inch. The face of the cutting head shall be arranged to provide reasonable obstruction to the free flow of soft or poor material.
b. The use of water or other liquids to facilitate casing placement and /or spoil removal is prohibited.
c. Plans and descriptions of the auger stop arrangement to be used shall be submitted to SBCTA / SCRRA for approval prior to commencement of work.
Exhibit "D"
Exhibit “D” - Additional Requirements SBCTA Contract No. 18-1001928 Form Approved 2019 03 06 6 File No.
d. Any method which employs simultaneous boring and jacking or drilling and jacking for pipes over 8- inches in diameter that does not adhere to the above requirements will not be permitted. For casings 8 -inches and smaller in diameter, augering or boring without the same requirements may be considered if approved by SBCTA/SCRRA.
30. If an obstruction is encountered during installation of the casing pipe that will stop the forward action of the pipe, and it becomes evident that it is impossible to advance the pipe, operations will cease and the pipe shall be abandoned in-place and pressure grouted full before continuing with work. Location, length, and depth of abandoned casing pipes and carrier pipes shall be shown on the as-built drawings.
31. Bored or jacked installations shall have a bored-hole diameter essentially the same as the outside diameter of the casing plus the thickness of the protective coating. If voids should develop or if the bored- hole diameter is greater than the outside diameter of the casing pipe, plus coating, by more than approximately 1 -inch, grouting or other methods as approved by SBCTA/SCRRA shall be employed to fill such voids.
32. Pressure grouting of the soils before or during jacking or boring may be required to stabilize the soil, control water, prevent loss of material, and prevent settlement or displacement of the ground and/or tracks. Grout shall be cement, chemical or other special injection material selected to accomplish the necessary stabilization. The grouting contractor shall be a specialist in the field with a minimum of 5 -years continuous experience of successfully grouting soil. Materials to be used and the method of injection shall be prepared by a California licensed Geotechnical Engineer, or by an experienced and qualified company specializing in this work and submitted for approval by SBCTA/SCRRA prior to the commencement of work. Proof of experience and competency shall accompany the submission.
33. When water is known or expected to be encountered, pumps of sufficient capacity to handle the flow shall be maintained at the site and be constantly attended operationally on a 24- hour per day basis until the SBCTA/SCRRA inspector determines their operation can be safely halted. When dewatering, close observation shall be maintained t o detect any settlement or displacement of track, ground, or facilities.
34. The dewatering system shall lower and maintain the ground water level a minimum of 2- feet below the invert at all times during construction by utilizing well points, vacuum well poin ts, or deep wells to prevent the inflow of water or water and soil into the heading. Ground water observation wells may be required to demonstrate that the dewatering requirements are being complied with.
35. The proposed methods of dewatering shall be submitted to SBCTA/SCRRA prior to the commencement of work. The discharge from the dewatering operations in the vicinity of the railroad shall be carefully monitored. Should excessive fine soils particles, pollu tants, or hazardous materials or fluids be observed at any time during the dewatering process, the dewatering shall be halted immediately and cannot resume until the unsatisfactory condition is remedied to the satisfaction of the SBCTA/SCRRA inspector.
Exhibit "D"
Exhibit “D” - Additional Requirements SBCTA Contract No. 18-1001928 Form Approved 2019 03 06 7 File No.
36. All backfilling shall be at 90% relative dry compaction. For areas within or that affect the railroad right-of-way, the contractor shall submit a compaction report prepared by a California licensed Geotechnical Professional Engineer prior to release of any deposited fund balance.
37. The Contractor shall remove all temporary facilities constructed on the railroad right- of- way, debris, and other items not originally at the site prior to construction and shall notify SBCTA and any affected operating railroad that all construction has been completed.
After as-builts have been received, SBCTA inspects the construction site and signs -off the work, SBCTA will release any unused deposit funds it holds. Contractor shall be responsible to arrange refunds due from any affected operating railroads.
38. A minimum of five feet (5’) clearance is required above signal and communication lines for overhead crossings.
39. Poles for any use within the railroad right -of-way must be located fifty -feet (50’) out from the centerline of the railr oad main, branch and running tracks, CTC sidings, and heavy tonnage spurs. Pole locations adjacent to industry track must provide at least a ten foot (10’) clearance from the centerline of track, when measured at right angles. If located adjacent to curved track, then said clearance must be increased at the rate of 1.5 inches per degree of curved track.
40. Regardless of the voltage, un- guyed poles shall be located a minimum distance from the centerline of any track, equal to the height of the pole above the ground–line plus ten feet (10’). If guying is required, the guys shall be placed in such a manner as to keep the pole from leaning/falling in the direction of the tracks.
41. Poles must be located a minimum distance from the railroad signal and communication line equal to the height of the pole above the ground- line or else be guyed at right angles to the lines. High voltage towers (34.5 kV and higher) must be located off railroad right - of-way.
42. Grade crossings or temporary grade crossing must not be installed under or within five- hundred feet (500’) of the end of any railroad bridge, or three hundred feet (300’) from the centerline of any culvert or switch area.
43. For overhead crossings, complete spanning of the property is encouraged with supportive structures and appurtenances located outside of the railroad property. For electric supply and communication lines, normally the crossing span shall not exceed one -hundred fifty- feet (150’) with adjacent span not exceeding 1.5 times the crossing span length. For heavier type construction, longer spans will be considered.
44. To ensure that overhead crossings are clear from contact with any equipment passing under such wires, communication lines shall be constructed with a minimum clearance above top of rail of twenty-eight feet (28’).. Electric lines must have a fluorescent ball marker on low wire over centerline track.
45. The utility owner will label the poles closest to the crossing with the owner’s name and telephone number for emergency contact.
46. Overhead flammable and hazardous material lines are prohibited.
Exhibit "D"
Exhibit “D” - Additional Requirements SBCTA Contract No. 18-1001928 Form Approved 2019 03 06 8 File No.
47. Because inductive interference from certain types of lines have the potential to disrupt the railroad signal and communication systems causing failures with the signals, communication, and at -grade crossing warning devices, . SBCTA may require that an inductive coordination study be performed prior to approval of the permitted use at the expense of the utility owner for proposed electrical lines crossing tracks.
48. Joint-use construction is encouraged at locations where more than one utility or type of facility is involved. However, electricity and petroleum, natural gas or other flammable materials shall not be combined.
Contract SBCTA
Initials
City Council/Financing Authority Meeting J. 4.
DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of an unsolicited offer of donation of property identified as Assessor’s Parcel No. 0170-302-07 000 (Assistant City Manager Boatman)
MOTION(S):
If the City Council determines that the offer of the donation of property is appropriate, the following motion is provided:
I move to direct staff to proceed with acceptance of the donation of property identified as Assessor’s Parcel No.0170-302-07 000, subject to satisfactory completion of City's due diligence.
RECOMMENDATION:
Staff recommends that the City Council direct staff accordingly.
DISCUSSION:
In August 2024, staff received an unsolicited offer of donation of the subject property from the owner. The property is approximately 8,000 square feet in area and is located on Dearborn Street immediately adjacent to the City's water treatment plant. The property is desirable to the City as it will be integrated into the existing facility.
If the City Council directs staff to proceed with the acceptance of the donation of the subject property, staff will prepare the appropriate documents for this transaction and will bring the item back to the City Council at a future meeting for your consideration once the City's due diligence is completed.
ALTERNATIVES:
The City Council may decline to accept the donation of the property and direct staff accordingly.
STRATEGIC PLAN:
Not Applicable.
SUBMITTED BY:
Christopher Boatman, Assistant City Manager
REVIEWED BY:
Charles M. Duggan Jr., City Manager
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:
Tricia Swope, Manager, Facilities & Community Services Department Fiscal Impact
Fiscal Year: FY 2024-25
Discussion:
There is no fiscal impact
Attachments
A. Donation Offer
B. Map of Property
City Council/Financing Authority Meeting J. 5.
DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Introduction of Ordinance No. 2975 to amend Title 13 (Public Services) relating to water, sewer and solid waste charges and payments, and consideration of Resolution No. 8647 revising the Policy on Residential Water Service Discontinuation and Rescinding Resolution No. 8048 (Management Services/Finance Director Garcia)
MOTION(S):
If the City Council deems it appropriate, staff recommends the following motions:
I move to introduce Ordinance No. 2975, and
1. I move to adopt Resolution No. 8647 revising the Policy on Discontinuation of Residential Water Service for Non-Payment, rescinding Resolution No. 8048.
2. RECOMMENDATION:
Staff recommends that Council introduce Ordinance No. 2975 to amend Title 13 (Public Services) relating to water, sewer and solid waste charges and payments. Staff further recommends that the Council adopt Resolution No. 8647, a resolution revising the Policy on Discontinuation of Residential Water Service for Non-Payment and rescinding Resolution No. 8048.
DISCUSSION:
As a result of the passage of Senate Bill (SB) 998 in 2019, the City established a Policy on the Discontinuation of Residential Water Service for Non-Payment through Resolution No. 8048 and Ordinance No. 2903, revising the municipal code to include a provision for an alternative payment plan to comply with the new legislation. SB 998 prohibited disconnection of delinquent water service accounts that met certain criteria, including certification from a primary care provider that disconnection of water service would pose a threat to the health and safety of a resident of the customer's premises and that the customer demonstrates they are financially unable to pay for the water service within the City's normal billing cycle.
Ordinance No. 2903 added RMC 13.12.025, which outlined an alternative payment plan option for customers that meet the above criteria. Three years after SB 998 passed, the California legislature passed SB 3, which expanded the conditions under which the City is required to provide payment plans to customers who are unable to pay their bill. The City is now required to extend a payment plan option to all customers, not just customers who meet certain medical and financial criteria.
In an effort to update this policy to reflect the new provisions of SB 3, staff have developed Ordinance No. 2975 and Resolution No. 8647. These two documents will amend the policy accordingly:
The alternative payment arrangements will be available to all residential water service customers.
The payment options will be updated to ensure the policy is consistent with current practices.
The terms and conditions of the alternative payment plan will be more well-defined to improve clarity for customers.
Limits for disconnection fees will be defined to ensure compliance with law.
The updated, written policy on Discontinuation of Water Service to Residents for Non-Payment will be made available in prescribed languages (English, Spanish, Chinese, Tagalog, Vietnamese and Korean).
These changes to the municipal code and policy on residential water service discontinuation are required by SB 3 and staff therefore recommend adoption as presented. The adoption of Resolution No. 8647 will rescind Resolution No. 8048.
ALTERNATIVES:
The City Council may choose to reject, modify, or table the proposed ordinance.
STRATEGIC PLAN:
Not applicable
SUBMITTED BY:
Danielle Garcia, Management Services/Finance Director
RECOMMENDED BY:
Charles M. Duggan, Jr., City Manager
REVIEWED BY:
Janice McConnell, Assistant City Manager
Yvette M. Abich Garcia, City Attorney
PREPARED BY:
Whitney Mesa, Administrative Analyst
Fiscal Impact
Fiscal Year: FY 2024-25
Discussion:
This fiscal impact associated with approval of Ordinance No. 2975 and adoption of Resolution No. 8647 is estimated to be immaterial to the overall budget of each of the City's utility operations.
Attachments
Ordinance Summary
Exhibit A - Discontinuation Policy
Ordinance No. 2975-Clean
Ordinance No. 2975-Legislative
Summary of Ordinance 2975
Ordinance No. 2975, if adopted, would amend Chapter 13.12 of the Redlands Municipal Code to comply with Senate Bill (SB) 3 by expanding access to alternative payment plans for all residential water customers, regardless of financial or health conditions. The ordinance updates payment plan terms, sets limits on disconnection fees per SB 998, and ensures the policy is available in multiple languages. In summary, this ordinance would ensure compliance with state legislation by revising local regulations governing residential water service discontinuation and improving accessibility to alternative payment options for residents.
1 I:\cmo\Resolutions\8647 Water Service Discontinuation Policy.docx-jm RESOLUTION NO. 8647
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDLANDS ADOPTING A REVISED POLICY ON THE DISCONTINUATION
OF RESIDENTIAL WATER SERVICE FOR NON -PAYMENT AND RESCIND RESOLUTION NO. 8048
WHEREAS, Senate Bill 998, Discontinuation of residential water service, was adopted into state law on September 28, 2018; and
WHEREAS, Senate Bill 998, Discontinuation of residential water service, requires the City, as a water service provider, to formally adopt a detailed written policy concerning residential water service shutoff for nonpayment according to its provisions; and
WHEREAS, Senate Bill 998 would prohibit residential water service from being discontinued under specified circumstances; and
WHEREAS, the City complied with the provisions of SB 998 by adopting Resolution No. 8048 and Ordinance No. 2903, which established a policy to govern the discontinuation of residential water service for non-payment; and
WHEREAS, SB 998 has been amended by SB 3, which expanded the protections of SB 998 and the requirement to provide alternative payment options to all customers who are unable to pay their b ill, not only those customers that met specific medical and financial criteria; and
WHEREAS, Senate Bill 3 again requires to formally adopt a detailed written policy concerning residential water service shutoff for nonpayment according to its provisions;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS:
Section 1. The City Council hereby adopts the Discontinuation of Residential Water Service for Non-Payment Policy. Attached hereto as Exhibit “A”.
Section 2. This Resolution and the policy established by this Resolution shall become effective on February 4, 2025.
Section 3. That Resolution No. 8048 is hereby rescinded.
2 I:\cmo\Resolutions\8647 Water Service Discontinuation Policy.docx-jm ADOPTED, SIGNED AND APPROVED this 21st day of January, 2025.
Mario Saucedo, Mayor
ATTEST:
Jeanne Donaldson, City Clerk
3 I:\cmo\Resolutions\8647 Water Service Discontinuation Policy.docx-jm EXHIBIT ‘A’
POLICY ON DISCONTINUATION OF
RESIDENTIAL WATER SERVICE FOR NON-PAYMENT
Notwithstanding any other policy of the City, this Policy on Discontinuation of Residential Water Service for Non-Payment shall apply to the City’s discontinuation of residential water service for non-payment under the provisions set forth herein. In the event of any conflict between this Policy and any other policy of the City, this Policy shall prevail.
I. Application of Policy; Contact Telephone Number : This policy enumerates City’s administrative actions for the collection of delinquent accounts, including notifications, fee assessments and discontinuation of residential water service. This policy will be made available to the public on the City’s websit e and translated into the following languages:
Spanish, Chinese, Tagalog, Vietnamese, and Korean. The City’s Utility Billing Customer Service Division can be contacted by phone at (909) 798 -7516 to discuss o ptions for averting discontinuation of residential water service for nonpayment under the terms of this policy.
This policy shall apply only to residential water service for non -payment and the City existing policies and procedures shall continue to apply to commercial and industrial water service accounts.
II. Discontinuation of Residential Water Service for Non-Payment:
A. Rendering and Payment of Bills: Bills for water service are presented to each customer on a bimonthly basis (six times per year). Bills for service are due and payable upon presentation and become overdue and subject to 1) a late charge as specified in RMC
13.12.020 (B), and 2) discontinuation of service if not paid within sixty (60) days from the date of the bill. There are several methods of payment accepted including cash, checks, debit and credit cards. Various payment options are available and can be found on our website. However, it is the customer’s responsibility to ensure that payments are received by the City according to the timelines prescribed by RMC 13.12.020.
B. Bills will be computed as follows:
1. Meters will be read at regular intervals for the preparation of periodic bills and as required for the preparation of opening bills, closing bills, and special bills.
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2. Bills for metered service will show the meter reading for the current and previous meter reading period for which the bill is rendered, the number of units, date, and days of service for the current meter reading.
3. Customer bills shall be paid in legal tender of the United States of America.
Notwithstanding the foregoing, the City shall have the right to refuse any payment of such billings in coin.
C. Delinquent Accounts: Delinquent accounts are identified as any account that remains unpaid (and without having previously made payment arrangements or established an alternative payment schedule) by close of business 25 days after the date of the customer’s bill.
1. Late Charge: Any and all late charges will be assessed by the City onto the water service customer’s account as prescribed in RMC 13.12.020.
2. Overdue Notice: The City shall not discontinue water service for non-payment until payment by the customer has been delinquent for at least sixty (60) days.
The City will make a responsible, good faith effort to contact the customer in writing at least seven (7) business days before disconnection of water services for nonpayment.
If the customer’s address is not the address of the property to which the service is provided, the City shall mail a second notice to the service address at least ten (10) business days before disconnection of water services for nonpayment, addressed to “Occupant.” The Past Due Reminder Notice and Final Notice shall contain the following:
a) Customer’s name and address;
b) Amount of delinquency;
c) Date by which payment or arrangement for payment must be made in order to avoid discontinuation of service;
d) Description of the process to apply for a payment plan e) Description of the procedure to dispute or appeal a bill f) City phone number and the web address to the City’s written Policy on Discontinuation of Residential Water Service for Non- Payment
The City may alternatively provide notice to the customer of the impending discontinuation of service by telephone. If that notice is provided by telephone, the City shall offer to provide the customer with a copy of this policy and also
5 I:\cmo\Resolutions\8647 Water Service Discontinuation Policy.docx-jm offer to discuss with the customer the options for alternative payments, as described in Section III, below, and the procedures for review and appeal of the customer’s bill, as described in Section IV, below.
3. Unable to Contact Customer: If the City is not able to contact the customer by written notice (e.g., a mailed notice is returned as undeliverable) or by telephone, the City will make a good faith effort to visit the residence and leave or make other arrangements to place in a cons picuous location, a notice of imminent discontinuation of service for non-payment, and a copy of this Policy.
4. Turn-Off Deadline: Payment for water service charges must be received by the City no later than 4:00 p.m. on the date specified in the Past Due Reminder Notice and Final Notice. Postmarks are not acceptable.
D. Conditions Prohibiting Discontinuation : The City shall not discontinue residential water service if the customer is willing to enter into an alternative payment schedule, consistent with the provisions of Section III, below.
E. Landlord-Tenant Scenario : The below procedures apply to individually metered detached single-family dwellings, multi -unit residential structures and mobile home parks where the property owner or manager is the customer of record.
1. Required Notice: At least 10 days prior if the property is a multi-unit residential structure or mobile home park, or 7 days prior if the property is a detached single-family dwelling, to the possible discontinuation of water service, the City must make a good faith effort to inform the tenants/occupants at the property by written notice that the water service will be discontinued.
The written notice must also inform the tenants/occupants that they have the right to become customers to whom the service will be billed (see Subdivision 2, below), without having to pay any of the delinquent amounts.
2. Tenants/Occupants Becoming Customers: The City is not required to make service available to the tenants/occupants unless each tenant/occupant agrees to the terms and conditions for service and meets the City’s requirements and rules.
6 I:\cmo\Resolutions\8647 Water Service Discontinuation Policy.docx-jm a. However, if (i) one or more of the tenants/occupants assumes responsibility for subsequent charges to the account to the City’s satisfaction, or (ii) there is a physical means to selectively discontinue service to those tenants/occupants who have not met the City’s requirements, then the City may make service available only to those tenants/occupants who have met the requirements.
b. If prior service for a particular length of time is a condition to establish credit with the City, then residence at the property and proof of prompt payment of rent for that length of time, to the City’s satisfaction, is a satisfactory equivalent.
c. If a tenant/occupant becomes a customer of the City and the tenant’s/occupant’s rent payments include charges for residential water service where those charges are not separately stated, the tenant/occupant may deduct from future rent payments all reasonab le charges paid to the City during the prior payment period.
III. Alternative Payment Arrangements: For any customer who is unable to pay for services within the normal payment period may request an alternative payment arrangement consisting of the amortization of the unpaid balance under Subdivision (A), below.
A. Amortization: Any customer who is unable to pay for water service within the City’s normal payment period may enter into an amortization plan with the City on the following terms:
1. Term: The customer shall pay the unpaid balance, less twenty percent (20%) down payment due immediately, over a period not to exceed twelve (12) months. The unpaid balance less the 20% down payment shall be divided into five (5) installments to be billed bi -monthly (every two months) for twelve (12) months and that amount shall be added to the customer’s ongoing bi - monthly bills for water service. The initial payment of 20 percent represents the down payment, with the first installment beginning with the custo mer’s next billing cycle, which may be in the same week installments were initiated.
If the amount due is greater than $3,000, a payment plan may be granted, according to the same payment terms above, but for a longer repayment period in excess of twelve ( 12) months, but under no circumstances longer than eighteen (18) months at the discretion of and approval by the City Manager.
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2. Down Payment: For any approved amortization plan, a twenty percent (20%) down payment of the unpaid balance as calculated at the time of entering into a payment arrangement with the City will be due and payable immediately as a condition of entering into a payment arrangement.
3. Compliance with Plan: The customer must comply with the amortization plan and remain current as charges accrue in each subsequent billing period.
Where the customer fails to comply with the terms of the amortization plan for sixty (60) days or more, or fails to pay the customer’s current service charges for sixty (60) days or more, the City may discontinue water service to the customer’s service address at least five (5) business days after the City posts at the customer’s residence a final notice of its i ntent to discontinue service.
4. Payment Priority: The customer is required to keep up with new and current charges along with the payment plan.
5. Restrictions: The customer may not request further payment arrangements of any subsequent unpaid charges while paying delinquent charges pursuant to any other payment arrangement.
6. Default on Payment Arrangement : If a customer defaults on an existing payment arrangement, the remaining balance must be paid in full. Once a payment arrangement is defaulted, the balance is no longer eligible to be restructured under a new payment arrangement.
IV. Appeals: The procedure to be used to appeal or contest the amount set forth in any bill for residential water service is as follows, in accordance with RMC 13.12.070, 13.16.030 and
13.04.010:
A. Disputed Bills: In the event of a complaint by a customer that his or her water bill is excessive, a reread of the meter shall be made and a check shall be made to determine in particular if there are leaks in the meter. Should no leak in such meter be found, then, upon request of the customer, the meter shall be removed and be subject to a test upon it as set forth in RMC 13.16.030 and section (B) Meter Testing below. In the event that meter tests within the approved limitations, and the customer continues to question the water bill, a personal investigation of said premises served by the meter shall be made by the water superintendent or his or her appointed representative. Should such
8 I:\cmo\Resolutions\8647 Water Service Discontinuation Policy.docx-jm investigation find no reason to adjust said bill, he or she shall refer the disputed bull to the Public Services Appeals Board for a final ruling, subject to the rights of the customer to appeal the ruling to the City Council.
B. Meter Testing : When the accuracy of a water meter is questioned, the City, upon request from the customer, will cause an official test of the meter to be made for a charge as set forth by resolution. The meter will be tested on variable rates of delivery and if the average registration is more than two percent (2%) in excess of actual quantity of water passing through the meter, the City shall refund to the customer the overcharge based on the test, for the prior twelve (12) mont hs, unless it can be shown that the error was due to some cause for which the date can be fixed. In the latter case, the overcharge shall be computed back and not beyond such times. In the event the accuracy of the meter is determined to be in error, then all testing and meter replacement charges shall be at the City’s expense.
C. Public Services Appeals Board : For the purpose of serving as a board to which customers may refer their disputed bills for a final ruling, the Board shall consist of three (3) City management employees, as from time to time appointed by the City Manager. Board rulings are subject to appeal to the City Council by the customer.
D. Appeal Hearing: Following receipt of a complaint or a request for an investigation, a hearing date shall be set by the Public Services Appeals Board. After evaluation of the evidence provided by the customer and the information on file with the City concerning the water charges i n question, the Board shall render a decision as to the accuracy of the water charges and shall provide the appealing customer with a brief written summary of the decision.
1. If water charges are determined to be incorrect, a corrected invoice will be provided and payment of the revised charges will be due within ten (10) days of the invoice date for revised charges. If the revised charges remain unpaid for more than sixty (60 ) days after the corrected invoice is provided, water service will be disconnected, on the next regular working day after expiration of that sixty (60) day period; provided that the City shall provide the customer with the Overdue Notice in accordance with Section II(C)(2), above. Water service will only be restored upon full payment of all outstanding water charges, penalties, and any and all applicable reconnection charges.
a. If the water charges in question are determined to be correct, the water charges are due and payable at the time the Board’s decision is rendered.
9 I:\cmo\Resolutions\8647 Water Service Discontinuation Policy.docx-jm At the time the Hearing Officer’s decision is rendered, the customer will be advised of the right to further appeal before the City Council. Any such appeal must be filed in writing within seven (7) days after the Board’s decision is rendered.
b. If the customer does not timely appeal to the City Council, the water charges in question shall be immediately due and payable. In the event the charges are not paid in full within sixty (60) days after the original billing date, then the City shall provi de with the Overdue Notice in accordance with Section II(C)(2), above, and may proceed in potentially discontinuing service to the customer’s property.
2. When a customer plans to appeal the decision of the Public Services Appeals Board, the customer or their representative will be required to personally appear before the City Council to present evidence and reasons as to why the water charges in question ar e not accurate. The Board shall evaluate the evidence presented by the customer, as well as the information on file with the City concerning the water charges in question and render a decision as to the accuracy of said charges.
a. If the City Council finds the water charges in question are incorrect, the customer will be invoiced for the revised charges. If the revised charges remain unpaid for more than sixty (60) days after the corrected invoice is provided, water service will be disconnected, on the next regular working day after expiration of that sixty (60) day period; provided that the City shall provide the customer with the Overdue Notice in accordance with Section II(C)(2), above. Water service will be restored only after outstanding water charges and any and all applicable reconnection charges are paid in full.
b. If the water charges in question are determined to be correct, the water charges are due and payable at the time the decision of the Council is rendered. In the event the charges are not paid in full within sixty (60) days after the original billing date, then the City shall provide with the Overdue Notice in accordance with Section II(C)(2), above, and may proceed in potentially discontinuing service to the customer’s property.
10 I:\cmo\Resolutions\8647 Water Service Discontinuation Policy.docx-jm c. Any overcharges will be reflected as a credit on the next regular bill to the customer, or refunded directly to the customer, at the sole discretion of the City.
d. Water service to any customer shall not be discontinued at any time during which the customer’s appeal to the City, the Public Services Appeals Board, or the City Council is pending.
e. The City Council’s decision is final and binding.
V. Restoration of Service: In order to resume or continue service that has been discontinued by the City due to non -payment, the customer may be required to post a pre -payment deposit to re -establish the customer’s public services account in the event any previous prepayments have already been applied. In addition, the customer is responsible for all bills, fees and charges.
a. The City will set a disconnection of service fee at no more than fifty dollars ($50), but not to exceed the actual cost of disconnection if it is less. Disconnection fees shall be subject to an annual adjustment for changes in the Consumer Price Index beginning January 1, 2021. For the reconnection of residential service during nonoperational hours, the City shall set a reconnection of service fee, which shall be combined with the disconnection of service fee, and the two combined shall not be more than one hundred fifty dollars ($150), but not to exceed the actual cost if it is less. Nonoperational hours reconnection fees, including the disconnection service fee, shall be subject to an annual adjustment for changes in the Consumer Price Index beginning January 1, 2021.
b. The City will endeavor to make such reconnection as soon as practicable as a convenience to the customer. The City shall make the reconnection no later than the end of the next regular working day following the customer’s request and payment of all outsta nding water charges, penalties, and any and all applicable disconnection/reconnection charges up to and including pre-payment deposits.
1 I:\cmo\Ordinances\2975 Ordinance_No._2975_to_amend_RMC_13.12-CLEAN.docx-jm
ORDINANCE NO. 2975
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING CHAPTER
13.12 OF THE REDLANDS MUNICIPAL CODE TO ENSURE
COMPLIANCE WITH STATE REGULATIONS FOR WATER CHARGES
DUE DATES, REFUNDS & ADJUSTMENTS, PREPAYMENT
REQUIREMENTS, AND BILLING & DEPOSIT FOR SOLID WASTE
SERVICES
WHEREAS, Ordinance No. 29 75 would amend Section 13.12.025 (Alternative Payment Plans) of Chapter 13.12 (Water Charges) of the Redlands Municipal Code to modify the alternative payment plan procedures according to the provisions of Senate Bill 3 (2024)
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN AS FOLLOWS:
SECTION 1. Section 13.12.025, entitled “Alternative Payment Plan,” is hereby amended in the Redlands Municipal Code to read as follows:
“13.12.025: ALTERNATIVE PAYMENT PLAN:
A. The City shall offer an alternative payment plan to a water service customer under certain circumstances and under terms and conditions set by resolution of the city council. A customer shall be eligible for an alternative payment plan if all three (3) of the following circumstances are satisfied:
1. The customer is willing to enter into an alternative payment schedule with respect to all delinquent charges.
2. The customer is not currently in default on any other pre-existing alternative payment plan under this section.
3. The customer has not been in default on their municipal services account for longer than sixty (60) days
B. The customer must comply with the payment plan and remain current as charges accrue in each subsequent billing period. The customer may not request further payment plans for any subsequent unpaid charges while paying delinquent charges pursuant to a payment plan. Where the customer fails to comply with the terms of the payment plan for sixty (60) days or more, meaning that the full agreed upon payment is not made toward
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the unpaid delinquent balance on his or her account, the City may discontinue water service per Section 13.12.020 C to the extent authorized by law.
SECTION 2. Severability. If any section, sentence, clause or phrase of this ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provisions or application, and to this end the provisions of this ordinance are severable. The City Council of the City of Redlands hereby declares that it would have adopted this ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
SECTION 3. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of this ordinance and shall cause it, or a summary of it, to be published once in a newspaper of general circulation within the City and thereafter this ordinance shall take effect as provided by law.
ATTEST: Mario Saucedo, Mayor
Jeanne Donaldson, City Clerk
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I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing ordinance was duly adopted by the City Council at a regular meeting thereof held on the 4th day of February, 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Jeanne Donaldson, City Clerk
1 I:\cmo\Ordinances\2975 Title 13 RMC_13.12-Legislative.docx-jm ORDINANCE NO. 2975
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING CHAPTER
13.12 OF THE REDLANDS MUNICIPAL CODE TO ENSURE
COMPLIANCE WITH STATE REGULATIONS FOR WATER CHARGES
DUE DATES, REFUNDS & ADJUSTMENTS, PREPAYMENT
REQUIREMENTS, AND BILLING & DEPOSIT FOR SOLID WASTE
SERVICES
WHEREAS, Ordinance No. 2975 would amend Section 13.12.025 (Alternative Payment Plans) of Chapter 13.12 (Water Charges) of the Redlands Municipal Code to modify the alternative payment plan procedures according to the provisions of Senate Bill 3 (2024)
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN AS FOLLOWS:
Section 1. Section 13.12.025, entitled “Alternative Payment Plan,” is hereby amended in the Redlands Municipal Code to read as follows:
“13.12.025: ALTERNATIVE PAYMENT PLAN:
A. The City shall offer an alternative payment plan to a water service customer under certain circumstances and under terms and conditions set by resolution of the city council. A customer shall be eligible for an alternative payment plan if all three (3) of the following circumstances are satisfied:
1. The customer, or tenant of the customer, submits to the City the certification of a primary care provider, as that term is defined in Section 14088(A)(1)(b) of the Welfare and Institutions Code, that discontinuation of residential water service will be life threatening to, or pose a serious threat to, the health and safety of a resident of the premises where residential water service is provided.
2. The customer demonstrates that he or she is financially unable to pay for residential water service within the City’s normal billing cycle.
1. The customer is willing to enter into an alternative payment schedule with respect to all delinquent charges.
2. The customer is not currently in default on any other pre-existing alternative payment plan under this section.
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3. The customer has not been in default on their municipal services account for longer than sixty (60) days
B. The customer must comply with the payment plan and remain current as charges accrue in each subsequent billing period. The customer may not request further payment plans for any subsequent unpaid charges while paying delinquent charges pursuant to a payment plan. Where the customer fails to comply with the terms of the payment plan for sixty (60) days or more, meaning that no the full agreed upon payment is not made toward the unpaid delinquent balance on his or her account, the City may discontinue water service per Section 13.12.020 C to the extent authorized by law.
Section 2. Severability. If any section, sentence, clause or phrase of this ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provisions or application, and to this end the provisions of this ordinance are severable. The City Council of the City of Redlands hereby declares that it would have adopted this ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 3. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of this ordinance and shall cause it, or a summary of it, to be published once in a newspaper of general circulation within the City and thereafter this ordinance shall take effect as provided by law.
ATTEST: Mario Saucedo, Mayor
Jeanne Donaldson, City Clerk
3 I:\cmo\Ordinances\2975 Title 13 RMC_13.12-Legislative.docx-jm I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing ordinance was duly adopted by the City Council at a regular meeting thereof held on the 21st day of January, 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Jeanne Donaldson, City Clerk
City Council/Financing Authority Meeting J. 6.
DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Introduction of Ordinance No. 2974 amending Section 2.48.040 of Chapter 2.48 of the Redlands Municipal Code relating to the Traffic and Parking Commission (Municipal Utilities and Engineering Director Harris)
MOTION(S):
If City Council determines the staff recommendation is appropriate, the following motion is provided:
I move to introduce Ordinance No. 2974.
RECOMMENDATION:
Staff recommends that the City Council introduce Ordinance No.2974 amending the Redlands Municipal Code relating to the Traffic and Parking Commission.
DISCUSSION:
The Redlands Traffic and Parking Commission (TPC) is a volunteer citizen commission that serves in an advisory capacity to the City Manager and City Council on general traffic and parking related matters. The seven (7) person commission was first established in 1994 and includes a student commissioner with full voting rights, each appointed by the Mayor with City Council approval.
Representatives from the Redlands Police Department (RPD) and the Municipal Utilities and Engineering Department (MUED) support the TPC as ex officio advisory members.
Chapter 2.48, Section 2.48.040 of the Redlands Municipal Code (RMC) outlines the TPC duties as:
"It shall be the duty of the Traffic and Parking Commission to perform educational activities in traffic matters, to supervise the preparation and educational activities in traffic matters, to supervise the preparation and publication of traffic reports, to receive complaints relating to traffic matters and to recommend to the City Council ways and means of improving traffic conditions and the administration and enforcement of traffic regulations. The Traffic and Parking Commission shall also advise the City Council on the development of adequate parking for commercial and retail uses, recommend policies to encourage, develop and support adequate parking within the City, recommend actions for the establishment of long-term parking plans for the City and in particular the downtown Redlands business area, and advise the City Council in the administration of resources for the development of parking. The commission may also assist other advisory groups such as the Planning Commission in matters relating to parking. The commission shall keep records of all of its acts and proceedings, and shall submit all of its recommendations to the City Council and to the City Manager."
In March 2023, the TPC began discussing potential revisions to this section of the RMC to more accurately define its duties, particularly related to motorized vs. non-motorized transportation, public vs. private parking facilities, and TPC vs.
Planning Commission roles. On September 26, 2024, the TPC voted 5:0 in favor of recommending to City Council the following amendment to Section 2.48.080 of the RMC:
"It shall be the duty of the Traffic and Parking Commission to advise the City Engineer, Planning Commission, City Manager, and City Council, and to generally serve as a liaison between the general public and the City Council regarding traffic matters, including:
Receiving complaints relating to motorized and non-motorized traffic and parking matters and the enforcement of traffic regulations within public rights-of-way and parking facilities and to recommend ways and means of improving traffic conditions;
1. Reviewing and providing input for traffic reports, studies, and analyses prepared by City staff and consultants related to public pedestrian, motorized and non-motorized transportation, and parking projects;
2. Reviewing and making recommendations on master plans, projects, and programs related to pedestrian, motorized, non-motorized, and mass transit facilities;
3. Advising the City Council with respect to on-street and public off-street parking, posting of speed limits, traffic calming alternatives, bicycle and pedestrian facilities, and traffic circulation;
4. The commission shall keep records of all of its acts and proceedings and shall submit all of its recommendations to the City Council and to the City Manager." The City Attorney reviewed the proposed language and recommended modifying the language to make clear that the TPC duties relate to city-initiated projects and programs that are not subject to review by the Planning Commission. These changes will ensure that there are no conflicts with the duties of the Planning Commission and their review of projects that involve traffic analyses.
RPD, MUED, and Development Services Department staff support the TPC recommendation to amend Section 2.48.40 of the RMC.
Adoption of Ordinance No. 2974 is exempt from the California Environmental Quality Act (CEQA) because: (i) it is not a project within the meaning of Public Resources Code, Section 21065 because it has no potential to alter the physical environment; and (ii) pursuant to CEQA Guidelines Section 15061(b)(3).
ALTERNATIVES:
City Council may deny the staff recommendation and provide alternate direction.
STRATEGIC PLAN:
N/A
SUBMITTED BY:
John R. Harris, Municipal Utilities and Engineering Director RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Rachel Tolber, Police Chief
PREPARED BY:
John R. Harris, Municipal Utilities and Engineering Director Fiscal Impact
Fiscal Year: FY 24/25
Discussion:
There is no fiscal impact associated with this action.
Attachments
Ordinance 2974 Clean
Ordinance 2974 Legislative
Ordinance_2974_Summary
1 I:\cmo\Ordinances\5868_Ordinance_2974_Clean.docx-jm
ORDINANCE NO. 2974
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING SECTION
2.48.040 OF CHAPTER 2.48 OF THE REDLANDS MUNICIPAL CODE
RELATING TO THE TRAFFIC AND PARKING COMMISSION
Section 1. Section 2.48.040 of Chapter 2.48 of the Redlands Municipal Code, titled “TRAFFIC AND PARKING COMMISSION,” is hereby amended to read as follows:
“2.48.040: DUTIES
It shall be the duty of the Traffic and Parking Commission to advise the City Engineer, Planning Commission, City Manager, and City Council, and to generally serve as a liaison between the general public and the City Council regarding traffic matters, including:
1. Receiving complaints relating to motorized and non-motorized traffic and parking matters and the enforcement of traffic regulations within public rights-of-way and parking facilities and to recommend ways and means of improving traffic conditions;
2. Reviewing and providing input for traffic reports, studies, and analyses prepared by City staff and consultants related to city-initiated public pedestrian, motorized and non- motorized transportation, and parking projects not subject to Planning Commission review;
3. Reviewing and making recommendations on city-initiated master plans, projects, and programs related to pedestrian, motorized, non-motorized, and mass transit facilities not subject to Planning Commission review; and
4. Advising the City Council with respect to on-street and public off-street parking, posting of speed limits, traffic calming alternatives, bicycle and pedestrian facilities, and traffic circulation.
The commission shall keep records of all of its acts and proceedings and shall submit all of its recommendations to the City Council and to the City Manager.”
Section 2. If any section, sentence, clause or phrase of this ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provisions or application, and to this end the provisions of this ordinance are severable. The City Council of the City of Redlands hereby declares that it would have adopted this ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 2 I:\cmo\Ordinances\5868_Ordinance_2974_Clean.docx-jm
Section 3. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of this ordinance and shall cause it, or a summary of it, to be published once in a newspaper of general circulation within the City, and thereafter, this ordinance shall take effect as provided by law.
__________________________
Mario Saucedo, Mayor
ATTEST:
__________________________
Jeanne Donaldson, City Clerk
3 I:\cmo\Ordinances\5868_Ordinance_2974_Clean.docx-jm
I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the 21st day of January 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
Jeanne Donaldson, City Clerk
1 I:\cmo\Ordinances\5868_Ordinance_2974_Legislative.docx-jm
ORDINANCE NO. 2974
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING SECTION
2.48.040 OF CHAPTER 2.48 OF THE REDLANDS MUNICIPAL CODE
RELATING TO THE TRAFFIC AND PARKING COMMISSION
Section 1. Section 2.48.040 of Chapter 2.48 of the Redlands Municipal Code, titled “TRAFFIC AND PARKING COMMISSION,” is hereby amended to read as follows:
“2.48.040: DUTIES
It shall be the duty of the Traffic and Parking Commission to perform educational activities in traffic matters, to supervise the preparation and publication of traffic reports, to receive complaints relating to traffic matters and to recommend to the City Council ways and means of improving traffic conditions and the administration and enforcement of traffic regulations.
The Traffic and Parking Commission shall also advise the City Council on the development of adequate parking for commercial and retail uses, recommend policies to encourage, develop and support adequate parking within the City, recommend actions for the establishment of long term parking plans for the City and in particular the downtown Redlands business area, and advise the City Council in the administration of resources for the development of parking. The commission may also assist other advisory groups such as the Planning Commission in matters relating to parking. The commission shall keep records of all of its acts and proceedings, and shall submit all of its recommendations to the City Council and to the City Manager. (Ord. 2265 § 1, 1994)
It shall be the duty of the Traffic and Parking Commission to advise the City Engineer, Planning Commission, City Manager, and City Council, and to generally serve as a liaison between the general public and the City Council regarding traffic matters, including:
1. Receiving complaints relating to motorized and non-motorized traffic and parking matters and the enforcement of traffic regulations within public rights-of-way and parking facilities and to recommend ways and means of improving traffic conditions;
2. Reviewing and providing input for traffic reports, studies, and analyses prepared by City staff and consultants related to city-initiated public pedestrian, motorized and non- motorized transportation, and parking projects not subject to Planning Commission review;
3. Reviewing and making recommendations on city-initiated master plans, projects, and programs related to pedestrian, motorized, non-motorized, and mass transit facilities not subject to Planning Commission review; and
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4. Advising the City Council with respect to on-street and public off-street parking, posting of speed limits, traffic calming alternatives, bicycle and pedestrian facilities, and traffic circulation.;
The commission shall keep records of all of its acts and proceedings and shall submit all of its recommendations to the City Council and to the City Manager.”
Section 2. If any section, sentence, clause or phrase of this ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provisions or application, and to this end the provisions of this ordinance are severable. The City Council of the City of Redlands hereby declares that it would have adopted this ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 3. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of this ordinance and shall cause it, or a summary of it, to be published once in a newspaper of general circulation within the City, and thereafter, this ordinance shall take effect as provided by law.
__________________________
Mario Saucedo, Mayor
ATTEST:
__________________________
Jeanne Donaldson, City Clerk
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I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the 21st day of January, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
Jeanne Donaldson, City Clerk
Ordinance No. 2974, if adopted, will amend Redlands Municipal Code Chapter 2.48 (“Traffic and Parking Commission”) to clarify the duties of the Traffic and Parking Commission. The City’s intention to adopt Ordinance No. 2974 was publicly noticed in accordance with California law, and a public hearing is scheduled for February 2, 2025.
City Council/Financing Authority Meeting J. 7.
DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Introduction of Ordinance No. 2978, establishing an exhaustion of administrative remedies procedure for challenges to fees, charges, and assessments, and consideration of Resolution No. 8657, amending the utility rate protest submission and tabulation procedure (Municipal Utilities and Engineering Director Harris) MOTION(S):
If City Council determines the staff recommendation is appropriate, the following motions are provided:
I move that the City Council introduce Ordinance No. 2978; and, I move that the City Council adopt Resolution No. 8657.
RECOMMENDATION:
Staff recommends that City Council introduce Ordinance No. 2978 and adopt Resolution No. 8657.
DISCUSSION:
The City operates water, wastewater, and solid waste utilities, each of which occasionally requires rate increases to generate revenue necessary to provide services and to operate, maintain, and improve infrastructure. The City also maintains a schedule of fees, charges, and assessments that apply to residents, businesses, and customers receiving specific services. In 1996, Proposition 218, the Right to Vote on Taxes Act, amended the California Constitution and established utility rate increase public noticing and protest requirements. In 2012, City Council adopted Resolution No. 7128 to establish a policy for the submission and tabulation of protests with respect to public hearings for proposed utility rate adjustments.
Proposition 218 limits utility rates and adjustments to amounts necessary to provide related services, justified by a cost of services study. Proposition 218 also requires a forty-five (45) day public notice of proposed rate increases and a public hearing to receive and tabulate written protests to the proposed rate increase. A proposed utility rate increase fails if formal protests are received from a simple majority of the utility customers. Resolution No. 7128 requires written protests to be submitted to the City Clerk prior to the end of the public hearing, limits protests to one (1) per land parcel, and establishes protest validation criteria. For transparency, Resolution No. 7128 is attached to the Proposition 218 public notice information that is distributed to each utility customer and parcel owner prior to the rate-setting public hearing. During the protest hearing, the City will keep written protests confidential until tabulation begins following the protest hearing. Once a protest is opened during that tabulation, it becomes a disclosable public record under state law. However, City staff may open and inspect protests before the hearing to identify them as such and to identify any legal objections for which a response is required under Government Code Section 53759.1(c)(5).
On September 25, 2024, Governor Newsom signed into law Assembly Bill 2257 (AB 2257), which authorizes local agencies the option of implementing new rate-setting procedures to limit litigated challenges. AB 2257 adds Government Code Sections 53759.1 and 53759.2 and became effective on January 1, 2025.
Ordinance No. 2978 complies with AB 2257 and limits judicial actions or proceedings alleging noncompliance with the California Constitution or other applicable law for any new, increased, or extended fee, charge, or assessment levied by the City to persons who submitted to the City Clerk a timely, written objection to that fee, charge, or assessment specifying the grounds for alleging noncompliance. The Ordinance also limits the issues raised in any such judicial action or proceeding to those raised through the local agency's administrative remedies. For example, a person filing a lawsuit alleging a new or recently increased fee, charge, or assessment is unconstitutional must have first submitted a valid written protest to the City Clerk prior to the closing of the public hearing. Furthermore, the alleged unconstitutionality must have been included in the valid written protest submitted to the City Clerk. The Ordinance also requires the City staff to respond in writing, before or during the public hearing, to any timely written protests.
Adoption of Ordinance No. 2978 and Resolution No. 8657 is exempt from the California Environmental Quality Act (CEQA) because: (i) it is not a project within the meaning of Public Resources Code, Section 21065 because it has no potential to alter the physical environment; and (ii) pursuant to CEQA Guidelines Section 15061(b)(3), the so-called "common sense" exemption, for this same reason.
ALTERNATIVES:
City Council may deny the staff recommendation and provide alternate direction.
STRATEGIC PLAN:
N/A
SUBMITTED BY:
John R. Harris, Municipal Utilities and Engineering Director RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Tabitha Crocker, Facilities and Community Services Director Brian Desatnik, Development Services Director
Chris Boatman, Assistant City Manager
PREPARED BY:
John R. Harris, Municipal Utilities and Engineering Director Fiscal Impact
Fiscal Year: FY 24/25
Discussion:
There is no fiscal impact associated with this action.
Attachments
Resolution No. 7128
Ordinance No. 2978
Resolution No. 8657
RRESOLUTION NO. 7128
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
ESTABLISHING A POLICY FOR THE SUBMISSION AND TABULATION OF PROTESTS WITH
RESPECT TO PUBLIC HEARINGS FOR PROPOSED UTILITY RATE ADJUSTMENTS WHEREAS, Article XIIID, section 6 of the Califomia Constitution requires the City to consider written protests to certain proposed increases to utility rates; and WHEREAS, the California Constitution does not offer specific guidance as to who is allowed to submit protests, how written protests are submitted, or how the city is to tabulate the protests;
BE IT RESOLVED by the City Council of the City of Redlands as follows:
Section 1. When notice of a public hearing with respect to a utility or other rate adjustments has been given by the City pursuant to Article XIIID, Section 6 of the California Constitution, the following guidelines shall apply:
A. Submission of Protests
1. Any property owner or utility customer may submit a written protest to the City Clerk, either by mail or delivery to the City Clerk's Office, 35 Cajon Street, Suite #4, Redlands, CA 92373 or by submitting the protest at the public hearing.
Protests must be received by the end of the public hearing.
2. Each protest must state that it is a protest (or indicate opposition to the proposed rates). If the City has given notices for the public hearings regarding rates for both sewer and water service, and those hearings are to be held on the same date, then the protest may indicate whether it is made (i) with respect only to water rates, (ii) with respect only to sewer rates, or (iii) with respect to both water and sewer rates. If no limitation is indicated. the City will interpret the protest as covering all rates to be considered on the hearing date. Email or facsimile protests cannot be accepted. Although oral comments at the public hearing will not qualify as a formal protest unless accompanied by a written protest, the City Council welcomes input from the community during the public hearing on proposed fees.
3. A protest by a property owner that is a trust must be signed by the Trustee and identified as such with the signature (i.e_ John Smith. Trustee for Smith Family trust). Protests by property owners that are corporations, partnerships, or similar entitles must be signed by a person authorized to execute documents on behalf of the property owner.
4. If a parcel served by the City is owned by more than a single record owner, or more than one name appears on the City's records as the customer for the property, or the customer is not the record owner, each owner or customer may I:\cclerk\Resolutions\Res 7100-7200\7128 Guidelines Submission Tabulation Protests.doc
ssubmit a protest, but only one protest will be counted per parcel and any one protest submitted in accordance with these rules will be sufficient to count as a protest for that property.
5. In order to be valid, a protest must bear date. designation of parcel address or parcel number, printed name. and original signature of the record owner or customer of record with respect to the property identified on the protest. The customer of record is the name of the person whose name is printed on the utility bills for the parcel. Except as set forth in paragraph 3 above, protests not bearing the original signature of a record owner or customer of record shall not be counted. Protests which have been altered by someone other than the person who signed them shall not be counted.
6. Any person who submits a protest may withdraw it by submitting to the City Clerk a dated. written request that the protest be withdrawn. The withdrawal of a protest shall contain sufficient information to identify the affected parcel and the name of the record owner or record customer who submitted both the protest and the request that it be withdrawn.
7. A fee protest proceeding is not an election.
8. To ensure transparency and accountability in the fee protest tabulation, protests shall constitute disclosable public records from and after the close of the public hearing.
B. Tabulation of Protests
1. The City Clerk shall determine the validity of all protests. The City Clerk shall not accept as valid any protest if the City Clerk determines that any of the following conditions exist:
a. The protest does not identify a property that will be subject to proposed fees.
b. The protest does not bear an original signature of a record owner or identified as trustee of the parcel identified on the protest or of a record customer of that parcel.
c. The protest does not state its opposition to the proposed fees or is illegible. d. The protest has been altered in any way by someone other than the person who is signed to it.
e. The protest was not received by the City Clerk before close of the public hearing on the proposed fees.
f. A request to withdraw the protest was received by the City Clerk prior to the close of the public hearing on the proposed fees.
2. The City Clerk's decision that a protest is not valid shall constitute a final action ofthe City and shall not be subjected to any internal appeal.
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33. A majority protest exists (50% plus one) if written protests are timely submitted and not withdrawn by the record owners. trustee. or customers with respect to, a majority of the properties subject to the proposed fee. If both water and sewer rates are being considered, a separate determination will be made for with respect to each ofthese two types of fees.
4. At the conclusion of the public hearing, the City Clerk shall count all protests received, including those received during the public hearing, and shall report the results to the City Council upon completion. If review of the protests received demonstrates that the number received is manifestly less than one-half of the parcels served by the City with respect to the fee which is the subject of the protest, then the City Clerk may advise the City Council of the absence of a majority protest without determining the validity of all protests.
5. If, at the conclusion of the public hearing, the City Clerk determines that the City Clerk will require additional time to count the protests, the City Clerk shall so advise the City Council, which may adjourn the meeting to allow the count to be completed on another day or days. If so, the City Council shall declare the time and place of the count, which shall be conducted in a place where interested members of the public may observe the counting, and the City Council shall declare the time at which its meeting shall be resumed to receive an act in the report of the City Clerk.
Section 2. The City Council hereby directs City staff to include the requirements described in Section 1.A of this Resolution, which govern the submission of written protests, within all notices of protest hearings that are mailed to property owners and customers of City utility services.
ADOPTED, SIGNED AND APPROVED this 6* day of March, 2012.
Peté Aguilar, Mayor
A TT EST:
Sam Irwin ity'Clerk
I celerk R emlutions\Res 7100-7200\7128 Guidelines Submission Tabulation Protests.doc 3
II, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoing Resolution was duly adopted by the City Council at a regular meeting thereof, held on the 6* day of March 2012. by the following vote:
AYES: Councilmembers Harrison, Bean, Gardner; Mayor Aguilar NOES: Councilmember Foster
ABSTAIN: None
ABSENT: None
Sam Irwin, City Clerk
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1 I:\cmo\Ordinances\2978_Exhaustion_of_Remedies_Prop_218.docx-jm
ORDINANCE NO. 2978
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF REDLANDS ADOPTING AN
ADMINISTRATIVE REMEDIES PROCEDURE FOR CHALLENGES TO FEES, CHARGES,
AND ASSESSMENTS
THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN AS FOLLOWS:
Section 1. AUTHORITY . This Ordinance is authorized by the City’s authority under California Constitution, article XI, sections 7 (police power) and 9 (utility power) as well as Government Code section 53759.1.
Section 2. CODE AMENDMENT. Chapter 3.04 (“Fiscal Procedures”) of Title 3 (“Revenue and Finance”) of the Redlands Municipal Code is hereby amended to modify the table of contents and to add a new section 3.04.080 to read as follows:
“SECTION:
3.04.010: Contract Signing And Attestation
3.04.020: Bond Requirement Authority
3.04.030: Payments To The City
3.04.040: Unpaid Negotiable Instruments
3.04.050: Handling Charge
3.04.060: Nonnegotiable Instruments
3.04.070: Collection Charge
3.04.080: Exhaustion of Administrative Remedies for Challenges to Fees, Charges and Assessments on Real Property”
…
“3.04.080: EXHAUSTION OF ADMINISTRATIVE REMEDIES FOR
CHALLENGES TO FEES, CHARGES, AND ASSESSMENTS ON REAL PROPERTY:
A. Scope. The duty to exhaust administrative remedies imposed by this section extends to:
a. any fee or charge subject to articles XIII C or XIII D of the California Constitution,
b. any assessment on real property levied by the City, and c. the methodology used to develop and levy such a fee, charge, or assessment.
B. “Hearing” as used in this section means the hearing referenced in paragraph 4 of subsection D of this section.
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C. Duty to Exhaust Issues. No person may bring a judicial action or proceeding alleging noncompliance with the California Constitution or other applicable law for any new, increased, or extended fee, charge, or assessment levied by the City, unless that person submitted to the City Clerk a timely, written objection to that fee, charge, or assessment specifying the grounds for alleging noncompliance. The issues raised in any such action or proceeding shall be limited to those raised in such an objection unless a court finds the issue could not have been raised in such an objection by those exercising reasonable diligence.
D. Procedures. The City shall:
(1) Make available to the public any proposed fee, charge, or assessment to which this section is to apply no less than 45 days before the deadline for a ratepayer or assessed property owner to submit an objection pursuant to paragraph 4 of this subsection D. (2) Post on its internet website a written basis for the fee, charge, or assessment, such as a cost of service analysis or an engineer’s report, and include a link to the internet website in the written notice of the Hearing, including, but not limited to, a notice pursuant to subdivision (c) of Section 4 or paragraph (1) of subdivision (a) of Section 6 of Article XIII D of the California Constitution.
(3) Mail the written basis described in paragraph 2 of this subsection D to a ratepayer or property owner on request.
(4) Provide at least 45 days for a ratepayer or assessed property owner to review the proposed fee or assessment and to timely submit to the City Clerk a written objection to that fee, charge, or assessment that specifies the grounds for alleging noncompliance. Any objection shall be submitted before the end of the public comment portion of a Hearing on the rate, charge or assessment.
(5) Include in a written notice of the Hearing, a statement in bold-faced type of 12 points or larger that:
(A) All written objections must be submitted to the City Clerk by the end of public comment period at the Hearing and that a failure to timely object in writing bars any right to challenge that fee, charge, or assessment in court and that any such action will be limited to issues identified in such objections.
(B) All substantive and procedural requirements for submitting an objection to the proposed fee, charge, or assessment such as those specified for a property-related fee under California Constitution, article XIII D, section 6(a) or for an assessment on real property under California Constitution, article XIII D, section 4(e).
E. Council Consideration; City Responses. Before or during the Hearing, the City Council shall consider and the City shall respond in writing to, any timely written objections.
The City Council may adjourn the Hearing to another date if necessary to respond to comments received after the agenda is posted for the meeting at which the Hearing occurs. The City’s responses shall explain the substantive basis for retaining or altering the proposed fee, charge, or 3 I:\cmo\Ordinances\2978_Exhaustion_of_Remedies_Prop_218.docx-jm
assessment in response to written objections, including any reasons to reject requested amendments.
F. City Council Determinations. The City Council, in exercising its legislative discretion, shall determine whether:
(1) The written objections and the City’s response warrant clarifications to the proposed fee, charge, or assessment.
(2) To reduce the proposed fee, charge or assessment.
(3) To further review the proposed fee, charge, or assessment before determining whether clarification or reduction is needed.
(4) To proceed with the Hearing, to continue it, or to abandon the proposal.” Section 3. The City Council finds that adoption of this Ordinance is exempt from CEQA because: (i) it is not a project within the meaning of Public Resources Code, section 21065 because it has no potential to alter the physical environment; (ii) and pursuant to CEQA Guidelines section 15061(b)(3), the so-called “common sense” exemption, for this same reason.
Section 4. If any section, sentence, clause or phrase of this ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this ordinance which can be given effect without the invalid provisions or application, and to this end the provisions of this ordinance are severable. The City Council of the City of Redlands hereby declares that it would have adopted this ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
Section 5. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of this ordinance and shall cause it, or a summary of it, to be published once in a newspaper of general circulation within the City, and thereafter, this ordinance shall take effect as provided by law.
_________________________________
Mario Saucedo, Mayor
ATTEST:
____________________________________
Jeanne Donaldson, City Clerk
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I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the 21st day of January 2025, by the following vote:
AYES:
NOES:
ABSENT:
__________________________________
Jeanne Donaldson City Clerk
1 I:\cmo\Resolutions\8657 Resolution_No._8657-Tabulation of Protests.doc-jm
RESOLUTION NO. 8657
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS AMENDING
AND RESTATING A POLICY FOR THE SUBMISSION AND TABULATION OF
PROTESTS WITH RESPECT TO PUBLIC HEARINGS FOR PROPOSED UTILITY RATE ADJUSTMENTS AND REPEALING RESOLUTION NO. 7128
WHEREAS, Article XIIID, section 6 of the California Constitution requires the City to consider written protests to certain proposed increases to utility rates; and
WHEREAS, the California Constitution does not offer specific guidance as to who is allowed to submit protests, how written protests are submitted, or how the city is to tabulate the protests; and
WHEREAS, the Redlands City Council adopted a policy in 2012 which it now updates as set forth in this Resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS:
Section 1. When notice of a public hearing with respect to a utility or other rate adjustments has been given by the City pursuant to Article XIIID, Section 6 of the California Constitution, the following guidelines shall apply:
A. Submission of Protests
1. Any property owner or utility customer may submit a written protest to the City Clerk, either by mail or delivery to the City Clerk’s Office, 35 Cajon Street, Suite #4, Redlands, CA 92373 or by submitting the protest at the public hearing.
Protests must be received by the end of the public hearing.
2. Each protest must state that it is a protest (or indicate opposition to the proposed rates). If the City has given notices for the public hearings regarding rates for both sewer and water service, and those hearings are to be held on the same date, then the protest may indicate whether it is made (i) with respect only to water rates, (ii) with respect only to sewer rates, or (iii) with respect to both water and sewer rates. If no limitation is indicated, the City will interpret the protest as covering all rates to be considered on the hearing date. Email or facsimile protests cannot be accepted. Although oral comments at the public hearing will not qualify as a formal protest unless accompanied by a written protest, the City Council welcomes input from the community during the public hearing on proposed fees.
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3. A protest by a property owner that is a trust must be signed by the Trustee and identified as such with the signature (i.e., John Smith, Trustee for Smith Family trust). Protests by property owners that are corporations, partnerships, or similar entitles must be signed by a person authorized to execute documents on behalf of the property owner.
4. If a parcel served by the City is owned by more than a single record owner, or more than one name appears on the City’s records as the customer for the property, or the customer is not the record owner, each owner or customer may submit a protest, but only one protest will be counted per parcel and any one protest submitted in accordance with these rules will be sufficient to count as a protest for that property.
5. In order to be valid, a protest must bear date, designation of parcel address or parcel number, printed name, and original signature of the record owner or customer of record with respect to the property identified on the protest. The customer of record is the name of the person whose name is printed on the utility bills for the parcel. Except as set forth in paragraph 3 above, protests not bearing the original signature of a record owner or customer of record shall not be counted. Protests which have been altered by someone other than the person who signed them shall not be counted.
6. Any person who submits a protest may withdraw it by submitting to the City Clerk a dated, written request that the protest be withdrawn. The withdrawal of a protest shall contain sufficient information to identify the affected parcel and the name of the record owner or record customer who submitted both the protest and the request that it be withdrawn.
7. A fee protest proceeding is not an election.
8. To protect the privacy rights of persons who submit protests, the City will keep written protests confidential until tabulation begins following the protest hearing.
Once a protest is opened during that tabulation, it becomes a disclosable public record under state law. However, City staff may open and inspect protests before the hearing to identify them as such and to identify any legal objections for which a response is required under Government Code Section 53759.1(c)(5).
B. Tabulation of Protests
1. The City Clerk shall determine the validity of all protests. The City Clerk shall not accept as valid any protest if the City Clerk determines that any of the following conditions exist:
a. The protest does not identify a property that will be subject to proposed fees.
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b. The protest does not bear an original signature of a record owner or identified as trustee of the parcel identified on the protest or of a record customer of that parcel.
c. The protest does not state its opposition to the proposed fees or is illegible. d. The protest has been altered in any way by someone other than the person who is signed to it.
e. The protest was not received by the City Clerk before close of the public hearing on the proposed fees.
f. A request to withdraw the protest was received by the City Clerk prior to the close of the public hearing on the proposed fees.
2. The City Clerk’s decision that a protest is not valid shall constitute a final action of the City and shall not be subjected to any internal appeal.
3. A majority protest exists (50% plus one) if written protests are timely submitted and not withdrawn by the record owners, trustee, or customers with respect to, a majority of the properties subject to the proposed fee. If both water and sewer rates are being considered, a separate determination will be made for with respect to each of these two types of fees.
4. At the conclusion of the public hearing, the City Clerk shall count all protests received, including those received during the public hearing, and shall report the results to the City Council upon completion. If review of the protests received demonstrates that the number received is manifestly less than one -half of the parcels served by the City with respect to the fee which is the subject of the protest, then the City Clerk may advise the City Council of the absence of a majority protest without determining the validity of all protests.
5. If, at the conclusion of the public hearing, the City Clerk determines that the City Clerk will require additional time to count the protests, the City Clerk shall so advise the City Council, which may adjourn the meeting to allow the count to be completed on another day or days. If so, the City Council shall declare the time and place of the count, which shall be conducted in a place where interested members of the public may observe the counting, and the City Council shall declare the time at which its meeting shall be resumed to receive an act in the report of the City Clerk.
Section 2. The City Council hereby directs City staff to include the requirements described in Section 1.A of this Resolution , which govern the submission of written protests, within all notices of protest hearing s that are mailed to property owners and customers of City utility services.
Section 3. Resolution No. 7128 is hereby repealed.
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ADOPTED, SIGNED AND APPROVED this 21st day of January, 2025.
________________________________
Mario Saucedo, Mayor
ATTEST:
_______________________________
Jeanne Donaldson, City Clerk
5 I:\cmo\Resolutions\8657 Resolution_No._8657-Tabulation of Protests.doc-jm
I, Sam Irwin, City Clerk of the City of Redlands, hereby certify that the foregoing Resolution was duly adopted by the City Council at a regular meeting thereof, held on the 20th day of March 2012, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
__________________________________
Sam Irwin, City Clerk
City Council/Financing Authority Meeting J. 8.
DATE: 01/21/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of the twelve (12) year sole source Wastewater Treatment Plant Membrane Bioreactor filter preventive
maintenance and replacement Agreement with Zenon
Environmental Corporation with $219,578 annual payments, for a total value of $2,634,939, and determination that this action is exempt from environmental review pursuant to Section 15061(b)(3) of the state's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris) MOTION(S):
If City Council determines the staff recommendation is appropriate, the following motions are provided:
I move that City Council determine that approval of the Wastewater Treatment Plant Membrane Bioreactor filter preventive maintenance and replacement Agreement with Zenon Environmental Corporation is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; and
1. I move City Council approval of a twelve (12) year sole source Wastewater Treatment Plant Membrane Bioreactor filter preventive maintenance and replacement Agreement with Zenon Environmental Corporation with $219,578 annual payments, for a total value of $2,634,939.
2. RECOMMENDATION:
Staff recommends that City Council determine that approval of a twelve (12) year sole source Wastewater Treatment Plant Membrane Bioreactor filter preventive maintenance and replacement Agreement with Zenon Environmental Corporation is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act, and approve the Agreement, which includes $219,578 annual payments, for a total value of $2,634,939.
DISCUSSION:
In 2004, the City's Wastewater Treatment Plant (WWTP) treatment process was upgraded with a ZENON Environmental Corporation (ZENON) Membrane Bioreactor (MBR) filter facility. This MBR system uses semi-permeable membrane filters to treat raw wastewater influent to State Water Resources Control Board Title 22 standards, in accordance with its 2019 Water Recycling Policy, before distributing the treated effluent (recycled water) to customers for use as landscape irrigation water, and/or percolating into the groundwater basin.
A portion of this recycled water is also distributed to the Southern California Edison Mountainview Generating Station for use as cooling tower water. In 2020, City Council approved an Agreement with Veolia Water Technologies and Solutions (Veolia) to purchase and install replacement MBR filters manufactured by ZENON.
In 2021, Veolia acquired ZENON. Recently, MUED staff collaborated with Veolia to develop a MBR preventive maintenance and replacement program specifically designed for the City's WWTP. This program includes annual inspections, testing, and preventive maintenance practices that will maximize the service life of the MBR system, and includes the supply and installation of replacement MBR cassettes near the end of the twelve (12) year program term. This program resolves supply chain issues that continue to plague the wastewater treatment industry, and provides remote technical support around the clock. The program also provides MBR cassette replacement timing flexibility to ensure WWTP performance is not compromised.
Purchasing MBR filters from another vendor would require a significant investment in additional engineering, construction, and permitting. Therefore, staff recommends City Council approval to waive typical competitive procurement practices and purchase replacement MBR filters and associated services directly from Veolia. The annual cost of this Agreement is $219,578, for a total cost of $2,634,939 during the twelve (12) year Agreement term.
Approval of this agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act since it can be seen with certainty that there is no possibility that doing so will have a significant effect on the environment.
ALTERNATIVES:
City Council may deny the staff recommendation and provide alternate direction.
STRATEGIC PLAN:
Priority D "Sustainability", Strategic Objective 3 "Infrastructure" - Develop and implement Water and Wastewater Utility Master Plans to ensure facilities are improved and maintained to meet the needs of our expanding community.
SUBMITTED BY:
John R. Harris, Municipal Utilities and Engineering Director RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Dana Abramovitz-Daniel, Procurement Manager
PREPARED BY:
Fernando Mata, Wastewater Utility Manager
Fiscal Impact
Fiscal Year: FY 24/25
Revenue Generating: No
Appropriation Required Y/N: No
Amount: $219,578
Budgeted Y/N: Yes
Account No.: 521900
Discussion:
There is no fiscal impact associated with this action. The MUED Wastewater Service budget includes funding for this expenditure.
Attachments
Agreement
Sole Source Form Zenon
Veolia Membrane Replacement Agreement for the Redlands WWTP Proposal number 587585 – revision #2 – December 20, 2024