CITY OF REDLANDS
CITY COUNCIL
FINANCING AUTHORITY
A G E N D A S
MAY 20, 2025
MARIO SAUCEDO
Mayor
MARC SHAW
Mayor Pro Tempore
PAUL T. BARICH
Council Member
EDDIE TEJEDA
Council Member
DENISE DAVIS
Council Member
***
JEANNE DONALDSON
City Clerk
PHILLIP DOOLITTLE
City Treasurer
CHARLES M. DUGGAN JR.
City Manager
YVETTE M. ABICH GARCIA
City Attorney
5:00 p.m. Open Public Meeting, Public Comment (Closed Session) 6:00 p.m. Open Session (Public Meeting)
* * *
City Council Chambers
Civic Center, 35 Cajon Street, Redlands, California
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A G E N D A
The following information comprises the agenda for the regular meetings of the City Council of the City of Redlands and the Redlands Financing Authority of the City of Redlands at the times noted below in the City Council Chambers, Civic Center, 35 Cajon Street, Redlands, California, on:
TUESDAY, MAY 20, 2025
To join via Zoom on a computer, laptop, or smart device Please visit www.zoom.us, click on Join a Meeting
Enter the Meeting ID 896 2789 8341, then run the Zoom launcher To join via Zoom with audio only (cell phone or landline):
Dial 1-877-853-5247
Enter the Meeting ID 896 2789 8341
Should the City lose connectivity on Zoom, we will halt the meeting until it can be restored. To check on the status of remote connectivity in the event of an outage, go to the City’s website at www.cityofredlands.org or to the City’s Facebook page at @CityofRedlands or the Instagram page at @CityofRedlands_CityHall.
In the event the City cannot reestablish Zoom connectivity in a reasonable amount of time, the mayor will adjourn the meeting to a future date.
PLEASE NOTE: Anyone desiring to speak on an agendized item at this meeting may do so during the consideration of that item. Due to time constraints and the number of persons who may wish to give oral testimony, public comments will be limited to three (3) minutes.
To provide comment while participating from Council Chambers:
Although it is not required, speakers are encouraged to submit a "Speaker Sign Up Sheet" before the meeting is convened. Forms are available in the Office of the City Clerk or in Council Chambers.
After the meeting has convened, you may place the speaker form in the basket at the table along the north wall of the Chambers. Please do not disturb the City Clerk while the meeting is in progress.
To provide comment through Zoom (on a computer, laptop, or smart device):
Click the "Raise Hand" button and the moderator will unmute you when it is your turn to speak To provide comment via audio only (cell phone or landline):
Dial *9 to "Raise Hand". The moderator will identify you by your area code and last 3 numbers of your telephone number when it is your turn to speak.
PLEASE SILENCE CELL PHONES, PAGERS AND OTHER ELECTRONIC
COMMUNICATION DEVICES UPON ENTERING THE CHAMBERS
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5:00 P.M.
A. Call City Council Meeting to Order
B. Public Comment
(Any person wishing to provide public comment on a closed session matter may do so at this time.)
C. Recess City Council Meeting to a Closed Session
1. CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9(d)(2) and
(e)(3): A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency, based on the receipt of a government claim from claimant Crystal Adrianna Martinez threatening litigation (copy available for public inspection in City Clerk’s Office).
2. Conference with legal counsel: Anticipated Litigation - Government Code §54956.9(d)(2)(e)(2)
(Assistant City Manager McConnell)
One Case:
a. Facts and circumstances: Consideration of Workers Compensation claim filed by Roy Williamson.
3. Conference with legal counsel: Existing Litigation - Government Code §54956.9(d)(1)
(City Attorney Garcia)
One Case:
Chiakowsky, et, al. v. City of Redlands, et al., San Bernardino Superior Court, Case No. CIVSB2402748
1. 6:00 P.M.
D. Reconvene City Council Meeting
E. Invocation by Council Member Barich
Pledge of Allegiance by Kimberly Elementary School Students (In keeping with long-standing traditions of legislative invocations, this City Council meeting may include a brief invocation. Such invocations are not intended to proselytize or advance any one, or to disparage any other, faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation.)
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F. Closed Session Report
(No reportable action taken in closed session unless otherwise announced by the City Attorney at this time.)
G. Public Comment - City Council
(At this time, the City Council will provide an opportunity for the public to address them on any subject, within the jurisdiction of the City Council, which is not already scheduled on this agenda. However, any matter that requires action will be referred to staff for a report and possible action at a subsequent meeting. Comments will be limited to three {3} minutes.) H. Consent Calendar
(The following routine items have been recommended for approval and will be acted upon simultaneously unless separate discussion and/or action is requested by a Councilmember or a member of the audience.)
1. Approve minutes of the regular meeting of May 6, 2025 (City Clerk Donaldson)
2. Receive and file the Conference Report - March 28, 2025, League of California Community Services Policy Committee Meeting (Mayor Saucedo)
3. Approve the Sole Source Agreement with NewEdge Services, LLC for Software Integration between Cityworks Server and Tyler Munis ERP and other professional services for a total contract not to exceed $59,300, with the option to extend the agreement for future related services (Management Services/Finance Director Garcia)
4. Approve the Professional Services Agreement for Sales, Use and Transactions Tax Audit and Consulting Services with Hinderliter De Llamas & Associates for a period of three (3) years with two (2) one-year Extended Term options in a total amount not-to-exceed $113,300 (Management Services/Finance Director Garcia)
5. Approve the Emergency Medical Services Field Internship Agreement between the City of Redlands and the San Bernardino Community College District (Crafton Hills College), designating the Redlands Fire Department as a Paramedic Clinical Field Internship Training Site for a five-year period, from July 1, 2025, through June 30, 2030 (Fire Chief Sessler)
6. Adopt Resolution No. 8691 establishing the policy for reporting on Staff Vacancies and the City’s Recruitment and Retention Efforts to comply with Government Code Section 3502.3 and Assembly Bill 2561 (Human Resources/Risk Management Director Meteau)
7. Approve an Event Services Agreement with the University of Redlands to Recycled Paper
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7. Approve an Event Services Agreement with the University of Redlands to conduct the Redlands Emergency Services Academy at the University's facility, and determine that approval of the agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Police Chief Tolber)
8. Approve an Intergovernmental Purchase of Getac Mobile Data Computers from Code 3 Technologies in the amount of $53,648.25 (Police Chief Tolber) I. Communications
1. Conference Report - 2025 City County Conference of the San Bernardino County Transit Authority (SBCTA) (Mayor Saucedo)
2. Discussion and possible action regarding South Coast Air Quality Management District's Proposed Amended Rule 1111 (Reduction of NOx Emissions from Natural Gas-Fired Furnaces) and Proposed Amended Rule 1121 (Reduction of NOx Emissions from Residential-Type, Natural Gas-Fired Water Heaters) (Mayor Pro Tem Shaw)
J. Public Hearings
1. Public Hearing to consider Resolution No. 8683 adopting the 2024 Engineering & Traffic Survey report and rescinding Resolution No. 8348, introduction of Ordinance No. 2982 amending Chapter 10.24 of the Redlands Municipal Code confirming prima facie speed limits for specified city streets and determine that approval of the resolution and introduction of the ordinance is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris) (Mayor to declare meeting open as a public hearing)
K. New Business
1. Consideration of the First Amendment to the Non-Professional Services Agreement with Yunex LLC, for Traffic Signal Systems Maintenance, to increase the Contractor's scope of services and compensation for additional services in the amount of $340,000 (Facilities and Community Services Director Crocker)
2. Consideration of the Recycled Water Supply Agreement with Southern California Edison 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 (Municipal Utilities and Engineering Director Harris)
3. Consideration of FY 25/26 MUED Annual Purchase Orders for a Total Amount Not-to-Exceed $4,852,000 (Municipal Utilities and Engineering Director Harris) Recycled Paper
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4. Consideration of the First Amendment to the Non-Professional Services Agreement with Ferguson Enterprises, LLC for the Water Meter Replacement Project to increase the total compensation amount by 2.5% to $6,915,828.08 and determine this action is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Director Harris)
L. Individual Council Member Announcements and/or Reports on Activities (No collective discussion or action.)
M. Adjournment
The next regular meeting of the City Council will be held on June 3, 2025.
N. Redlands Financing Authority
1. Call regular meeting of the Board of Directors of the Redlands Financing Authority to order
2. Public Comment - Redlands Financing Authority
(At this time, the Redlands Financing Authority will provide an opportunity for the public to address them on any subject, within its jurisdiction, which is not already scheduled on this agenda. However, any matter that requires action will be referred to staff for a report and possible action at a subsequent meeting. Comments will be limited to three {3} minutes.)
3. Approve the minutes of the regular meeting of January 21, 2025 (Secretary Donaldson)
4. Adjourn Redlands Financing Authority meeting
The next Redlands Financing Authority meeting will be held on September 16, 2025.
If you challenge any proposed development entitlement listed on this agenda in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact Goutam Dobey, of the Municipal Utilities and Engineering Department at (909) 798-7584 ext 2. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
(28 CFR 35.102-35.104 ADA Title II)
Any writings or documents distributed to a majority of the City Council regarding an Recycled Paper
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open session agenda item less than 72 hours before this meeting are available for public inspection at the City Clerk's Office or at the dais of the City Clerk once the open session meeting begins.
Staff reports or other written documentation relating to items referred to on the agenda are available at the A. K. Smiley Public Library, 125 West Vine Street, Redlands, California, and on the City’s website referenced below.
Regular meetings are televised live on Redlands TV Channel 3 (Spectrum) and Channel 35 (Frontier) and re-broadcast at 7:00 P.M. the following Wednesday, Friday and Sunday; and at 9:00 A.M. Thursday, Saturday and Monday. Meetings are also streamed live and archived for later viewing on demand on the City’s website at www.cityofredlands.org. Agendas, staff reports and minutes of the City Council of the City of Redlands are available online at: www.cityofredlands.org.
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City Council/Financing Authority Meeting H. 1.
DATE: 05/20/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Approve minutes of the regular meeting of May 6, 2025 (City Clerk Donaldson)
MOTION:
I move to approve the regular meeting minutes of May 6, 2025.
Attachments
Regular meeting minutes of May 6, 2025
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MINUTES
Regular meeting of the City Council of the City of Redlands held in the Council Chambers, Civic Center, 35 Cajon Street, on May 6, 2025 at 5:00 P.M.
Present: Mario Saucedo, Mayor
Marc Shaw, Mayor Pro Tempore
Paul Barich, Council Member
Eddie Tejeda, Council Member
Denise Davis, Council Member
Staff: Charles M. Duggan, Jr., City Manager; Yvette M. Abich Garcia, City Attorney; Jeanne Donaldson, City Clerk; Phillip Doolittle, City Treasurer; Janice McConnell, Assistant City Manager; Chris Boatman, Assistant City Manager; Carl Baker, Public Information Officer; Danielle Garcia, Management Services/Finance Director; Brian Desatnik, Development Services Director; John Harris, Municipal Utilities and Engineering Director; Rich Sessler, Fire Chief; Jeremy Floyd, Deputy Police Chief; Tabitha Crocker, Facilities and Community Services Director; Robert Meteau, HR/Risk Management Director
Mayor Saucedo called the meeting to order and explained that comments could be presented in-person, via Zoom, via cell phone or landline. He offered the public an opportunity to provide comment on any item on the agenda for the closed session. City Attorney Garcia announced that Council Member Davis was participating remotely under AB 2449 "Just Cause", due to traveling for her work with a public agency, UC Riverside.
PUBLIC COMMENT
None forthcoming
CLOSED SESSION
CONFERENCE WITH LEGAL COUNCIL- ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9(d)(2) and (e)(3): A point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing facts and circumstances, there is a significant exposure to litigation against the local agency, based on the receipt of a government claim from claimant Alexis DeLeon threatening litigation (copy available for public inspection in City Clerk’s Office) Conference with legal counsel: Existing Litigation - Government Code §54956.9(d)(1) (City Attorney Garcia)
Two Cases:
a. Chiakowsky, et, al. v. City of Redlands, et al., San Bernardino Superior Court, Case No. CIVSB2402748 California Department of Housing and Community Development v. Shangri-la Industries, LLC, et al., Los Angeles Superior Court, Case No. 24STCV00629
b.
Conference with real property negotiators - Government Code §54956.8 (Assistant City Manager Christopher Boatman)
Property: APN: 0292-063-38-0000
Agency Negotiators: Charles M. Duggan, City Manager; Christopher Boatman, Assistant City Manager Negotiating Party: Seth Davis; Managing Director, Arixa Capital Under Negotiation: Terms of payment and price for possible purchase of property by the City Conference with real property negotiators - Government Code §54956.8 CC_May 6, 2025
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Conference with real property negotiators - Government Code §54956.8 (Assistant City Manager Christopher Boatman)
Property: APN: 0171-191-30-0000
Agency Negotiators: Charles M. Duggan, City Manager; Christopher Boatman, Assistant City Manager Negotiating Party: Char Burgess, President, Redlands Historical Museum Association Under Negotiation: Terms of possible transfer of the property Conference with real property negotiators - Government Code §54956.8 (Assistant City Manager Christopher Boatman)
Property: APN: 0171-089-13-0000 (21 N. Church St.)
Agency Negotiators: Charles M. Duggan, City Manager; Christopher Boatman, Assistant City Manager Negotiating Party: Zach Smith
Under Negotiation: Terms of payment and price for possible sale of property by the City RECONVENE CITY COUNCIL MEETING
The meeting reconvened at 6:20 P.M. Council Member Davis announced that she was unable to attend the meeting in person but would participate remotely under AB 2449 "Just Cause", due to traveling for UC Riverside, a public agency. This is the second of two allowable Just Cause exceptions for her under AB 2449. The invocation was provided by Council Member Davis, and the Pledge of Allegiance to the American flag was conducted by Arroyo Verde Elementary School students.
CLOSED SESSION REPORT
City Attorney Garcia announced that no reportable action was taken during the closed session.
PRESENTATIONS
Proclamation Asian American and Pacific Islander Heritage Month Mayor Saucedo presented a Proclamation declaring May 2025 as Asian American and Pacific Islander Heritage Month to Hien Huynh, Gayatri Prasad Kattel, and Netra Prasad Dhakal.
PUBLIC COMMENT
Government Accountability - Stephen Rogers said he was embarrassed and offended by the way the City conducts its business. He listed concerns regarding the Tennessee Village Project, and permitting approvals signed off by City employees that were no longer employed. He claimed there was an appearance of employee misconduct, and he called for a review. He urged the Council to adopt an employee code of conduct and code of ethics.
FSA Redlands Hunger Walk & Run - Ipyani Lockert invited everyone to participate in the Redlands Hunger Walk and 5K Run, hosted by Family Service Association. The event is a great fundraising opportunity and is scheduled for June 7, 2025, at the University of Redlands.
Quality of Life - Eleanor Bortowski was curious about a letter she received in the mail, requesting donations to maintain a high standard of public safety in the community. She thought the letter was endorsed by the Council, and she questioned its purpose. City Manager Duggan clarified that the City had not sent any letters to residents asking for donations, and he said he would investigate the matter.
SCAQMD Proposed Rules 1111 & 1121 - Atishma Kant strongly opposed the SCAQMD proposed rules seeking to reduce NOx emissions by transitioning away from gas-fired water heaters and furnaces. She cited the high cost to consumers and the potential for power outages due to an overburdened grid. She reminded the Council that on June CC_May 6, 2025
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6, 2025, SCAQMD was scheduled to hold a public hearing to make determinations about the proposed rules, and it was critical for the City to take a stand against these proposals.
Transgender Story - Peter Hall read from an article about the life of Jazz Jennings.
Preserving Citrus - Kyle Kenison described his new upstart business, Citridea, developed with the mission to combat and eliminate waste and preserve Redlands citrus heritage. He suggested there was a better path forward than to tear out and replace the historic England grove, and he pushed for the community to work cooperatively and find solutions to allow farmers to harvest and profit as they had in the past.
Various Concerns - Joshua Hall was in support of the recent decision made by RUSD regarding transgender athletes, and he claimed that certain groups were harassing anyone who agreed with the district's determination. He was against the SCAQMD proposed rules banning gas-powered water heaters and furnaces, and he voiced concerns related to illegal immigrants.
RUSD Decision - Robert said the RUSD should make all students feel welcome and not alienate certain groups of people.
Together for Redlands - Bruce Laycook spoke about the positive work being done by Together for Redlands and said he has always known the grassroots organization to bring people together, build up the community and be a positive force.
CONSENT CALENDAR
Minutes
As public comment, Stephen Rogers claimed the City had improperly noticed the Closed Session item on the April 15, 2025, City Council meeting agenda related to the settlement agreement with Travis Martinez. He thought this lacked transparency and left the public in the dark.
On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously approved, by roll call vote, the regular meeting minutes April 15, 2025.
Vote: 5 - 0 Passed
On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tempore Marc Shaw, the City Council approved, by roll call vote, the special meeting minutes of April 29, 2025.
Vote: 4 - 0 Passed
Other: Council Member Paul Barich (RECUSE)
Proclamation Asian American Pacific Islander Heritage Month On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously approved, by roll call vote, the issuance of a proclamation declaring May 2025, as Asian American Pacific Islander Heritage Month.
Vote: 5 - 0 Passed
Proclamation Frontline Workers Appreciation Month
On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously approved, by roll call vote, the issuance of a proclamation declaring the month of May 2025 as Frontline Workers Appreciation Month.
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Vote: 5 - 0 Passed
Citizens' Measure T Oversight Committee Appointments
On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously reappointed, by roll call vote, Ruth Cook (District 1) to serve a four-year term on the Measure T Oversight Committee ending April 20, 2029; appointed Melissa Castro (District 2) to serve a four-year term on the Measure T Oversight Committee ending April 20, 2029; and appointed Dr. Sue Teele (District 4) to serve a four-year term on the Measure T Oversight Committee ending April 20, 2029.
Vote: 5 - 0 Passed
Settlement Agreement Disclosure
As public comment, Stephen Rogers objected to the way the City was using Best Best Krieger (BBK) and he insisted this item should not have been placed on the Consent Calendar. He questioned why the original claim was from 2023 and said an open discussion concerning the settlement was critical to building the public's trust. City Attorney Garcia explained this item was on the April 15, 2025, meeting agenda, under Closed Session, and was properly noticed 72 hours in advance, in compliance with the Brown Act. On April 15, upon returning to the Chambers for open session, Ms Garcia reported what occurred in Closed Session, including the vote. Furthermore, on April 16, 2025, Ms Garcia made the settlement agreement public without redaction and also included the minutes of the Closed Session discussion. The public disclosure of the settlement agreement was placed on the open session of tonight's agenda, pursuant to the Redlands Municipal Code. Bruce Laycook suggested the City consider a more transparent approach to keeping the public properly informed about settlement agreements, negotiated in closed session. He thought open dialogue was the key element missing.
On motion of Council Member Eddie Tejeda, seconded by Mayor Mario Saucedo, the City Council approved, by roll call vote, the public disclosure of details of a Settlement Agreement and Release of all Claims between the City of Redlands and Travis Martinez, releasing the other of any and all current and future claims each may have against the other and amicably end their employment relationship. Under the terms of the agreement, Mr. Martinez will submit an application for service retirement with CalPERS and the City agrees to pay Mr. Martinez $871,956.00.
Vote: 4 - 1 Passed
NAY: Council Member Paul Barich
Adoption of Ordinance No. 2981 Appointing Planning Commissioners On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously adopted, by roll call vote, Ordinance No. 2981 amending Section 2.36.020 of the Redlands Municipal Code relating to the appointment of members of the Planning Commission.
Vote: 5 - 0 Passed
Final Tract Map No. 20473 Approval
As public comment, Stephen Rogers voiced concerns about the processing of the Final Tract Map No. 20473, filed by Tri Pointe Homes, citing that he thought the item was wrongly placed on the Consent Calendar. He disagreed with the process allowing the Planning Commission to approve the Tentative Tract Map, which he said creates a situation whereby the Council is unaware of the project. Rick Rush, of Tri Pointe Homes, pointed out that Redlands was consistent with other municipalities within California, who regularly approve final maps through the consent calendar and authorize their planning commissions to approve tentative tract maps.
On motion of Council Member Eddie Tejeda, seconded by Mayor Mario Saucedo, the City Council unanimously CC_May 6, 2025
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On motion of Council Member Eddie Tejeda, seconded by Mayor Mario Saucedo, the City Council unanimously approved, by roll call vote, the Final Tract Map No. 20473, as filed by Tri Point Homes for the subdivision of approximately 37.9 acres into 98 single-family residential lots and 20 lettered (open space) lots at the southwest corner of East San Bernardino and Wabash Avenues.
Vote: 5 - 0 Passed
Resolution No. 8651 SLD & LMD Assessments
On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously determined, by roll call vote, that the adoption of Resolution No. 8651 is exempt from environmental review pursuant to the general rule of the California Environment Quality Act (CEQA) guidelines, adopted Resolution No. 8651 initiating proceedings to continue levying assessments, appointing an assessment engineer, and ordering the preparation of the Engineer's Reports for Street Lighting District No. 1 and Landscape Maintenance District No.1; and rescind Resolution No. 8542.
Vote: 5 - 0 Passed
Redlands Fourth of July Celebration In-Kind Support
On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously determined, by roll call vote, that authorization for the items associated with the Fourth of July Celebration event to be held on Friday, July 4, 2025, are exempt from environmental review pursuant to Section15311(c) of the State's guidelines implementing the California Environmental Quality Act; authorized and approved the expenditure of city resources and in-kind support in the amount of $58,001.34 for the Fourth of July Celebration to be held on Friday, July 4, 2025; authorized and approved the temporary street closures as detailed in the staff report for the event and authorized and approved the sale and consumption of alcoholic beverages at the Fourth of July Celebration on Friday, July 4, 2025.
Vote: 5 - 0 Passed
Cooperative Purchase Toyota 50-8FG45U Forklift
On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously approved, by roll call vote, the cooperative purchase of a Toyota 50-8FG45U Forklift from Crown Lift for an amount of $75,865.
Vote: 5 - 0 Passed
Amending Agreement San Timoteo Canyon, Live Oak Canyon & Alessandro Road Drainage Study On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously approved, by roll call vote, the First Amendment to the Agreement with Watearth, Inc. for the San Timoteo Canyon, Live Oak Canyon, and Alessandro Road drainage study, to incorporate additional tasks, extend the term, and increase the total agreement amount from $128,377 to an amount not to exceed $159,901.
Vote: 5 - 0 Passed
Contract Award HVAC System at Joslyn Sr. Center
On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously determined, by roll call vote, that the project is exempt from environmental review in accordance with Section 15304 of the State's guidelines implementing the California Environmental Quality Act; approved the Public Works Construction Contract with Mesa Energy Systems, Inc. for the HVAC Replacement Project at Joslyn Sr.
Center in an amount not to exceed $185,884; and approved the additional appropriation in the amount of $71,173 to allocate funds from the Joslyn Sr. Center donation reserve account.
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Vote: 5 - 0 Passed
Resolution No. 8682 Emergency Paramedic Services Special Tax On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously adopted, by roll call vote, Resolution No. 8682 establishing the rate for the voter-approved special tax for emergency paramedic services for Fiscal Year 2025-2026.
Vote: 5 - 0 Passed
MOU for Mutual Beneficial Collaboration PulsePoint Respond On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously approved, by roll call vote, the Memorandum of Understanding (MOU) between the City of Redlands and the Indiana University School of Public Health-Bloomington for Mutual Beneficial Collaboration to utilize PulsePoint Respond to send notifications to community members about overdose prevention and naloxone.
Vote: 5 - 0 Passed
Cityworks Software License Purchase
On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously approved, by roll call vote, the software license purchase with Azteca Systems, LLC for the Cityworks permitting/work order software and support for a 1-year term for a total cost of $51,810.89.
Vote: 5 - 0 Passed
Amending Agreement Business License Services
On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously approved, by roll call vote, the First Amendment to the Agreement with Hinderliter de Llamas and Associates for Business License Services, updating the contingency fee structure related to compliance, discovery, and collection services.
Vote: 5 - 0 Passed
Adopt Resolution No. 8681 Policy on Discontinuation of Residential Water Service On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously approved, by roll call vote, Resolution No. 8681 revising the Policy on Discontinuation of Residential Water Service for Non-Payment and rescinding Resolution No. 8647. Staff revised the Policy on Discontinuation of Residential Water Service for Non-Payment to correct an issue by reinstating the appeals process as adopted in 2019 under Resolution No. 8048. The corrected appeals process allows customers to dispute their water bill before a designated Board.
Vote: 5 - 0 Passed
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Contract Award HSIP Cycle 10 Enhanced Crosswalk Project On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously determined, by roll call vote, that approval of a construction contract and construction of the HSIP Cycle 10 Enhanced Crosswalk Project, Project No. S400021, HSIP-5083(027), are categorically exempt from environmental review pursuant to Section 15301(c) of the State’s guidelines implementing the California Environmental Quality Act; approved the HSIP Cycle 10 Enhanced Crosswalk Project plans and specifications; rejected the bid submitted by JT Construction Group as a nonresponsive bid; and awarded a construction contract to Elecnor Belco Electric, Inc. in the amount of $248,067.
Vote: 5 - 0 Passed
PO Lease Renewal of Automated License Plate Recognition Cameras On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously approved, by roll call vote, a sole source purchase order with Flock Group, Inc. for the renewal of leases of automated license plate recognition cameras for an amount not to exceed $99,500.
Vote: 5 - 0 Passed
COMMUNICATIONS
2025 SCAG Regional Conference Reports
Council Member Davis and Mayor Pro Tem Shaw each provided reports relating to their attendance at the 2025 Regional Conference of the Southern California Association of Governments (SCAG) and General Assembly held May 1-2, 2025, at the JW Marriott Desert Springs Resort & Spa in Palm Desert. The conference brings together local and regional leaders to share and learn from each other about the future of mobility, housing and communities, the environment, and the economy. They highlighted their top experiences, including sessions on Smart Cities and Smart Regions: Advancing Mobility Strategies and Technology Innovations and Creating a Regional Legacy for the 2028 Summer Olympics and Paralympics. They were grateful for the opportunity to represent the City.
NEW BUSINESS
Contract Award Citrus Avenue Parking Structure Maintenance and Repair Project Facilities and Community Services Director Crocker presented the Public Works Construction Contract with Angelus Waterproofing & Restoration, Inc. for an amount not-to-exceed $648,548 for the Citrus Avenue Parking Structure Maintenance and Repair Project. The structure is generally in fair condition. However, the structural elements require repairs to enhance the structure's durability and extend its service life. It is anticipated the project will be completed within thirty working days after a Notice to Proceed is issued.
On motion of Mayor Mario Saucedo, seconded by Mayor Pro Tempore Marc Shaw, the City Council determined, by roll call vote, that approval of a Public Works Construction Contract with Angelus Waterproofing & Restoration, Inc. for the Citrus Avenue Parking Structure Maintenance and Repairs Project is categorically exempt from environmental review in accordance with Section 15301(d) of the State's guidelines implementing the California Environmental Quality Act; approved the Citrus Avenue Parking Structure Maintenance and Repairs Project plans and specifications; and awarded a Public Works Construction Contract to Angelus Waterproofing & Restoration, Inc. for an amount not-to-exceed $648,548.
Vote: 4 - 1 Passed
NAY: Council Member Eddie Tejeda
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Contract Award Ford Park Restroom Replacement Project
Facilities and Community Services Director Crocker reviewed the Public Works Contract with Metrocell Construction, Inc. for an amount not-to-exceed $850,600 for the Ford Park Restroom Replacement Project. The restroom facility, located near the dog park at Ford Park, is currently out of service and in need of replacement to support park patrons. The new facility will expand the current restroom's capacity to include two restrooms with a total of six stalls (two of which are ADA-compliant), two urinals, and four sinks. Additionally, ADA-compliant walkways will be installed, providing access to the new restroom facility from the western section of the park, which includes the dog park and fishing ponds.
On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously determined, by roll call vote, that approval of the public works contract with Metrocell Construction, Inc. for the Ford Park Restroom Replacement Project is exempt from environmental review pursuant to Section 15302(c) of the State's guidelines implementing the California Environmental Quality Act; approved an award of the public works construction contract to Metrocell Construction, Inc in the amount of $850,600 for the Ford Park Restroom Replacement Project No. FCS102224DC; and approved the additional appropriation from the Park Development Fund (250) in the amount of $135,660.
Vote: 5 - 0 Passed
On-Call Sewer Collection System Maintenance Services Agreement Municipal Utilities and Engineering Director Harris reported on a Non-Professional Services Agreement with Houston & Harris PCS, Inc. for on-call sewer collection system maintenance services with an initial one-year term value not-to-exceed $250,000 with options to extend for two additional years for a total potential amount not-to-exceed $750,000. In addition to supporting the wastewater collection system, the contractor may also be called upon to assist with specialized cleaning services at the WWTP. Routine cleaning is necessary to maintain process efficiency, prevent mechanical issues, and ensure continued regulatory compliance.
On motion of Council Member Paul Barich, seconded by Council Member Eddie Tejeda, the City Council unanimously determined, by roll call vote, that approval of a Non-Professional Services Agreement with Houston & Harris PCS, Inc. is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; and approved the Non-Professional Services Agreement with Houston & Harris PCS, Inc. with Houston & Harris PCS, Inc. for on-call sewer collection system maintenance services with an initial one (1) year term value not-to-exceed $250,000 with options to extend for two (2) additional years for a total potential amount not-to-exceed $750,000.
Vote: 5 - 0 Passed
Contract Award OBT Phase 4 Project
Municipal Utilities and Engineering Director Harris provided background on the Public Works Construction Contract with Tryco General Engineering for the Orange Blossom Trail Phase 4 Project for an amount not-to-exceed $960,145. The Orange Blossom Trail Phase 4 is the final remaining segment to complete the
7.5-mile Orange Blossom Trail within the City of Redlands. Once constructed, it will connect the City’s east and west termini to parks and open space areas, including the Santa Ana River, Crafton Hills, and San Timoteo Canyon. The Project includes construction of approximately 0.75 miles of a multi-use path along the Mission Channel, extending from Redlands Boulevard to a recently constructed trail segment between the north side of the I-10 Freeway and Mountain View Avenue.
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On motion of Mayor Pro Tempore Marc Shaw, seconded by Council Member Eddie Tejeda, the City Council unanimously determined, by roll call vote, that approval of a Public Works Construction Contract with Tryco General Engineering for the Orange Blossom Trail Phase 4 Project is categorically exempt from environmental review in accordance with Section 15301(c) of the State's guidelines implementing the California Environmental Quality Act; approved the Orange Blossom Trail Phase 4 Project plans and specifications; and awarded a Public Works Construction Contract to Tryco General Engineering for an amount not-to-exceed $960,145.
Vote: 5 - 0 Passed
Resolution No. 8675 Construction Installment Sale Agreement WWTP Upgrades Project Municipal Utilities and Engineering Director Harris explained the need for Resolution No. 8675 authorizing the execution of a Construction Installment Sale Agreement with the State Water Resources Control Board (SWRCB) for the construction of the Wastewater Treatment Plant Upgrades Project, to prepare and submit required project documents, and to dedicate revenues from the Wastewater debt service fund as the source of revenue for loan payments,
On December 7, 2021, the City Council authorized the City Manager or his designee to sign and submit a Clean Water State Revolving Fund (CWSRF) loan application to the SWRCB for construction of the Wastewater Treatment Plant (WWTP) Phase 2 Project. The goals of the Project are to upgrade and modernize the wastewater treatment process components, to improve reliability through system redundancy, and to improve or repair various on-site facilities necessary to treat projected inflows associated with population growth. The SWRCB reviewed the Project loan application and, in conjunction with the City Attorney’s Office, prepared the Installment Sale Agreement (ISA), which requires City Council adoption of a closing resolution, Resolution No. 8675, and authorizes the City Manager or his designee to execute the ISA on behalf of the City. The ISA does not obligate the City to borrow funds, but provides a maximum of $45,000,000 in Project funding, pending the City’s approval of a construction contract. The CWSRF loan interest rate is 1.8% and the term is for thirty years.
The SRF loan may be used for project construction, construction contingencies, and construction management costs.
As public comment, Stephen Rogers said a full EIR should have been conducted in order to define what the WWTP needed. He criticized the effort as piecemeal, added there was no master plan, and thought the state would reject the loan application without a full environmental review. Director Harris clarified that the project underwent a full CEQA review of the whole project, with the state's approval and there was no risk of the City not securing the $45 million loan based on CEQA.
On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously determined, by roll call vote, that adoption of Resolution No. 8675 is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; adopted Resolution No. 8675 approving the Construction Installment Sale Agreement with the State Water Resources Control Board and authorizing the execution of the Agreement by the City Manager or his designee; and approving the preparation and submission of required project documents and the dedication of revenues from the Wastewater debt service fund as the source of revenue for loan payments.
Vote: 5 - 0 Passed
COUNCIL MEMBER ANNOUNCEMENTS AND ACTIVITIES
Mayor Saucedo attended a Council briefing with staff, the Chamber's Rise & Shine program, the Celebration of Life in honor of Officer Seth Franklin, enjoyed Earth Day activities at Gateway Ranch, and was proud to participate in the Pledge of Allegiance Flag Ceremony led by Kingsbury Elementary first-graders at the Burrage Mansion.
Mayor Pro Tem Shaw stated he intended to submit a written list of activities in advance of the next Council meeting.
Council Member Barich participated in Earth Day activities despite the rain, attended a ceremony honoring four recent Eagle Scout recipients, and enjoyed the Pledge of Allegiance Flag Ceremony led by Kingsbury CC_May 6, 2025
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recent Eagle Scout recipients, and enjoyed the Pledge of Allegiance Flag Ceremony led by Kingsbury Elementary first-graders at the Burrage Mansion,
Council Member Tejeda attended the Redlands Public Market ribbon-cutting ceremony, met with University of Redlands President Krista Newkirk for an update on the University Village project, visited TuckerWorks Couples Workshops located on Colton Avenue, and participated in Earth Day activities.
Council Member Davis enjoyed the AAUW FilmFest, participated in Earth Day activities, and attended the SCAG conference.
ADJOURNMENT
There being no further action required the meeting adjourned at 7:53 P.M. The next regular meeting of the City of Redlands City Council will be held on May 20, 2025.
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City Council/Financing Authority Meeting H. 2.
DATE: 05/20/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Receive and file the Conference Report - March 28, 2025, League of California Community Services Policy Committee Meeting (Mayor Saucedo)
MOTION:
I move to receive and file the conference report by Mayor Saucedo for the League of California Community Services Policy Committee meeting held on March 28, 2025.
DISCUSSION:
On March 28, 2025, Mayor Saucedo attended the 2025 League of California Community Services Policy Committee Meeting held in Burbank, California at the Marriott Burbank Airport Hotel. The Community Services Policy Committee reviews issues related to childcare, parks and recreation, libraries, natural disaster preparation, cultural arts, and community and human services programs.
In accordance with Resolution No. 7938 Section 7, each Council Member shall briefly report, either verbally or by written report, on meetings attended at city expense. Due to an administrative oversight, a meeting report was not agendized for the April 1, 2025, City Council meeting. Attached is a copy of the March 28, 2025,meeting agenda outlining the policy issues presented at the meeting. This serves as the conference report by Mayor Saucedo.
Attachments
Community Services Policy Committee Meeting Agenda March 28, 2025 Redlands Regular Meeting of 05-20-2025 19 of 1269
COMMUNITY SERVICES POLICY COMMITTEE
Friday, March 28, 2025
10:00 a.m. - 2:00 p.m.
Marriott Burbank Airport Hotel, Academy 2
AGENDA
I. Welcome and Introductions
Speakers: Chair, James Kyriaco, Council Member, Goleta
Vice-Chair, Tamala Takahashi, Vice Mayor, Burbank
II. Public Comment
III. Presentation: Governor’s Homelessness Initiatives Informational Speaker: Hafsa Kaka, Senior Advisor on Homelessness, Office of Governor Gavin Newsom
IV. Presentation: Home Again Los Angeles Informational
Speaker: Albert Hernandez, Chief Executive Officer, Home Again Los Angeles V. Update: City of Napa Senate Budget Sub-Committee Testimony Informational Speaker: Molly Rattigan, Deputy City Manager, City of Napa VI. Legislative Agenda (Attachment A) Action
Speaker: Caroline Grinder, League of California Cities
1. AB 543 (González) Medi-Cal: Street Medicine.
VII. Legislative and Budget Update Informational
Speaker: Caroline Grinder, League of California Cities
Cal Cities Community Services Sponsored Bills can be found here.
VIII. Adjourn
REMINDER: To better understand how cities are responding to homelessness, Cal Cities requests that cities complete this brief survey. Please check with your city manager to ensure your city has submitted this survey.
Next Meeting - Virtually: Friday, June 13, 9:30 a.m. – 12:30 p.m.
Brown Act Reminder: The League of California Cities’ Board of Directors has a policy of complying with the spirit of open meeting laws. Generally, offagenda items may be taken up only if:
1) Two-thirds of the policy committee members find a need for immediate action exists and the need to take action came to the attention of the policy committee after the agenda was prepared (Note: If fewer than two-thirds of policy committee members are present, taking up an offagenda item requires a unanimous vote); or 2) A majority of the policy committee finds an emergency (for example: work stoppage or disaster) exists.
A majority of a city council may not, consistent with the Brown Act, discuss specific substantive issues among themselves at League meetings. Any such discussion is subject to the Brown Act and must occur in a meeting that complies with its requirements.
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COMMUNITY SERVICES POLICY COMMITTEE
Legislative Agenda
Staff: Caroline Grinder, Legislative Advocate, Community Services Betsy Montiel, Legislative Affairs and Policy Analyst
1. AB 543 (González) Medi-Cal: street medicine.
Bill Summary:
This measure would enable street medicine providers to more effectively utilize Medi-Cal to deliver healthcare services to individuals experiencing homelessness.
Bill Description:
AB 543 has several key provisions, including:
1) Presumptive Eligibility:
This measure establishes a program of presumptive eligibility for Medi-Cal providers, including street medicine teams, to grant immediate, full-scope Medi-Cal coverage to individuals experiencing homelessness. This presumptive eligibility aims to enable providers to enroll individuals in Medi-Cal immediately, facilitating faster access to on-site medical services.
2) Data Sharing and Coordination:
This measure requires Medi-Cal and the California Statewide Automated Welfare System to establish a homelessness identifier within Medi-Cal and share data on the status of Medi-Cal applicants or beneficiaries experiencing homelessness to enable better tracking for service coordination, and connection to eligible benefits and programs.
3) Medi-Cal Managed Care Plan Requirements:
This measure requires Medi-Cal managed care plans to allow beneficiaries experiencing homelessness to seek covered services directly from any participating Medi-Cal provider, irrespective of network assignments such as primary care providers.
Background:
Securing investments to address homelessness and increase affordable housing is one of Cal Cities’ top priorities this year. California is home to 187,000 unhoused individuals, accounting for 66% of the nation’s unsheltered population. The mortality rate for people experiencing homelessness is ten times higher than that of housed individuals.
Data suggests that while over 70% of this population is enrolled in Medi-Cal, only 8% have seen a primary care provider, compared to 82% of the general population. Street 1 ATTACHMENT A
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medicine seeks to address these challenges by delivering healthcare and social services directly to people experiencing unsheltered homelessness in their living environments, such as under bridges, along riverbanks, and in encampments.
Street medicine teams provide full-scope primary care, including diagnostics, medications, wound care, psychiatry, mental health and substance use treatment, and care coordination. In fact, over 70% of street medicine programs provide full-scope primary care, behavioral healthcare, and treatment for substance use disorders and over 80% dispense medication. Additionally, street medicine teams assist individuals in securing housing and other essential services to exit homelessness.
In recent years, the state and federal government have prioritized street medicine. This includes initiatives such as California Advancing and Innovating Medi-Cal (CalAIM).
CalAIM is a multi-year program that aims to provide more integrated, person-centered care. These efforts aim to integrate physical health, behavioral health, and social services to support individuals experiencing homelessness, those with chronic medical conditions, and people involved in the justice system. CalAIM initiatives will span a multi-year period, with the first reforms implemented in January 2022 and additional reforms phased in through 2027. Street medicine directly aligns with CalAIM’s primary goal to identify and manage comprehensive needs through whole-person care approaches and social drivers of health.
Additionally, the Department of Health Care Services (DHCS) issued an All Plan Letter in 2022 and 2024 to Medi-Cal managed care health plans on the opportunities to use street medicine to address the health needs of Medi-Cal members experiencing unsheltered homelessness. Previously, street medicine programs had to cobble together funding to cover their costs. This change allowed street medicine programs to get reimbursed for important functions like care coordination and to cover the cost of important nonclinical members of street medicine care teams, like community health workers, neither of which have historically been billable services.
These efforts have facilitated reimbursement for street medicine and contributed to the field's rapid growth, with programs expanding from just six in 2018 to over 66 in 2025 across 35 counties.
According to the sponsors of AB 543, street medicine
significantly increases access to care, reduces hospital admission and hospital stays, improves chronic disease
management, and even enhances opportunities for housing placements. However, current Medi-Cal policies limit data tracking and exchange of information while also imposing constraints due to Medi-Cal delegation. These barriers prevent street medicine teams from delivering timely care, even when directly in front of patients needing critical care.
AB 543 seeks to address these gaps by ensuring that people experiencing homelessness can access Medi-Cal-covered services without unnecessary delays or administrative Redlands Regular Meeting of 05-20-2025 2 22 of 1269
barriers. The bill streamlines care delivery by establishing presumptive eligibility, expanding access to street medicine services, and introducing a homelessness identifier code within Medi-Cal systems. The goals outlined in this measure would improve health outcomes, reduce preventable deaths, lower avoidable hospital costs, and enhance coordination between health and social service systems.
Existing Cal Cities Policy:
Housing for Homeless
Homelessness is a statewide problem that disproportionately impacts specific communities. The state should make funding and other resources, including enriched services, and outreach and case managers, available to help assure that local governments have the capacity to address the needs of the homeless in their communities, including resources for regional collaborations.
Behavioral Health
Cal Cities supports additional funding and resources to expand access to behavioral health services, including efforts to assist California's homeless population, especially those individuals experiencing mental health and substance use disorders. This includes, but is not limited to, supporting counties in expanding community based care settings to provide for prevention, intervention, treatment, infrastructure, and recovery systems.
Substance Use
Cal Cities supports additional funding and resources to address the substance use crisis through appropriate prevention and intervention efforts, educational awareness campaigns, and increased access to life-saving overdose treatment aids such as naloxone.
Fiscal Impact:
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Medi-Cal is primarily funded by the federal and state government. The federal government contributes a share of the costs through the Federal Medical Assistance Percentage (FMAP) formula. In California, nearly two-thirds of Medi-Cal funding comes from the federal government. Medi-Cal covers one in three Californians.
Members of Congress have floated cuts to Medicaid to offset tax cuts. Federal cuts to Medicaid could lead to a significant budget shortfall in California, forcing the state to make difficult choices such as reducing Medi-Cal benefits, limiting provider payments, or restricting eligibility. If federal funding losses were to approach or exceed $10 billion per year, California could not replace federal funds with existing state resources alone.
In the absence of federal funding cuts, AB 543 strengthens CalAIM alignment, potentially making it easier for cities to leverage state resources instead of using general fund dollars for homeless health outreach. The author’s office argues that AB 543 simply opens a new pathway for unhoused individuals to access care through an existing reimbursable service – street medicine.
Staff Comments:
AB 543 aligns with Cal Cities' existing policy that supports expanded access to behavioral health services for California’s homeless population. However, Cal Cities has not previously engaged in Medi-Cal or street medicine issues. Committee members are encouraged to consider how this proposal relates to cities and the impacts of expanded access to street medicine in communities.
Support:
California Street Medicine Collaborative (Co-Sponsor)
University of Southern California (Co-Sponsor)
California State Association of Psychiatrists
National Alliance to End Homelessness (NAEH)
Street Medicine Institute (SMI)
CommuniCare+OLE
Elica Health Centers
Homeless Outreach Program Integrated Care System (HOPICS) Capital Compassion
Opposition:
No registered opposition at this time.
Staff Recommendation:
Staff recommends the committee discuss AB 543 and make a position recommendation to the Cal Cities Board of Directors.
Committee Recommendation:
Board Action:
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For More Information: Brad Fingard, Legislative Director | [email protected] | (916) 319 2054 Bill Summary
AB 543 establishes presumptive eligibility for
people experiencing homelessness to receive full
Medi-Cal coverage, allowing Medi-Cal providers,
including street medicine teams, to establish
eligibility on the spot and provide immediate care.
AB 543 prohibits Medi-Cal managed care plans
(MCPs) and their delegates from denying care
based solely on network assignment.
AB 543 requires Medi-Cal and the state’s welfare
system to share data on homelessness status by
introducing a homeless identifier code, enabling
better tracking, service coordination, and
connection to eligible benefits and programs.
Existing Law
Establishes the Medi-Cal program, administered by
the DHCS, under which low-income individuals are
eligible for medical coverage. (WIC §14000)
Provides presumptive eligibility for targeted
population, including pregnant persons, children,
and patients at qualified hospitals. (WIC §14011)
Background
California is home to 66% of the country’s
unsheltered population, and 28% of the nation’s
total homeless population. Over 187,000 people
live on the streets in the state, facing severe health
challenges and a mortality rate ten times higher
than the general population, largely due to barriers
in accessing care.
Although over 70% of this population is enrolled in
Medi-Cal, only 8% have access to a primary care
provider. Due to capitated payment models, MCPs
and primary care providers (PCPs) continue to
receive reimbursement from DHCS, with a federal
match, even while failing to provide care to the
remaining 92% of enrollees. This lack of access
prevents exits from homelessness, leads to
premature deaths, and results in unnecessary
suffering.
Street medicine addresses these challenges by
delivering healthcare and social services directly to
people experiencing unsheltered homelessness in
their living environments, such as under bridges,
along riverbanks, and in encampments. Street
medicine teams provide full-scope primary care,
including diagnostics, medications, wound care,
psychiatry, mental health and substance use
treatment, and care coordination. Additionally,
they assist individuals in securing housing and
other essential services to exit homelessness.
In recent years, state and federal entities have
prioritized street medicine. This includes initiatives
such as CalAIM, DHCS’s All Medi-Cal Managed Care
Plans Letter (APL 24-001), and the Center for
Medicare and Medicaid Services’ development of
the Place of Service Code 27 for street medicine.
These efforts have facilitated reimbursement for
street medicine and contributed to the rapid
growth of the field, with programs expanding from
just six in 2018 to over 66 by 2025.
The California Street Medicine Collaborative, which
convenes 175 member organizations from 35
counties, includes medical providers, health plans,
community-based organizations, and other
stakeholders. This collaborative works to scale the
street medicine model, advance best practices, and
address policy challenges. Alongside DHCS, these
organizations have been working diligently to
improve care for unsheltered individuals in
California. Their efforts aim to increase system
visibility through a homeless identifier, enroll
eligible individuals in Medi-Cal more efficiently, and
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For More Information: Brad Fingard, Legislative Director | [email protected] | (916) 319 2054 streamline care by reducing bureaucratic barriers
within Medi-Cal that hinder service delivery in
street-based environments.
Need for AB 543
Evidence-based models like street medicine are
recognized as best practices in homeless
healthcare. They significantly increase access to
care, reduce hospital admission and hospital stays,
improve chronic disease management, and even
enhance housing placements. However, current
Medi-Cal policies limit data tracking and exchange
while also imposing constraints due to Medi-Cal
delegation. These barriers prevent street medicine
teams from delivering timely care, even when
directly in front of patients.
AB 543 addresses these gaps by ensuring that
people experiencing homelessness can access
Medi-Cal-covered services without unnecessary
delays or administrative barriers. By establishing
presumptive eligibility, expanding access to street
medicine services, and introducing a homelessness
identifier code within Medi-Cal systems, the bill
streamlines care delivery. This approach improves
health outcomes, reduces preventable deaths,
lowers avoidable hospital costs, and enhances
coordination between health and social service
systems. It ensures that Medi-Cal members can
access the benefits to which they are entitled,
regardless of their housing status.
Support
California Street Medicine Collaborative (CoSponsor)
University of Southern California (Co-Sponsor)
California State Association of Psychiatrists (CSAP)
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AB 543 (Mark Gonzalez)
Medi-Cal: Street Medicine
Frequently Asked Questions (FAQ)
1. What is in AB 543?
AB 543 introduces three critical reforms aimed at removing barriers to Medi-Cal access for individuals experiencing homelessness:
Ensures unhoused Medi-Cal members have access to Medically Necessary Services (MNS) by prohibiting denials based solely on Medi-Cal Managed Care Network Assignment, regardless of delegation (PCP/IPA).
o Issue this addresses: Medi-Cal contracted street medicine providers are unable to order medically necessary services (MNS) that would typically need prior authorization – such as Durable Medical Equipment (DME) like wound care supplies or wheelchairs, diagnostic studies like X-rays, or a referral to specialty care – because they are not the patient’s assigned PCP or within the IPA, even though the patient themselves is a member.
This results in increased morbidity, mortality, and suffering for patients. Allows Presumptive Eligibility (PE) for people experiencing homelessness. PE provides immediate Medi-Cal coverage, bypassing the usual 4-6 weeks delay in approval. Currently, this is given to children, people who are pregnant, and hospitals. AB 543 permits any MediCal contracted provider treating an unhoused person to assist them in obtaining coverage. o Issue this addresses: Individuals experiencing homelessness encounter delays in accessing critical health care due to a lack of Medi-Cal coverage, despite being eligible.
When they enroll in Medi-Cal, the process takes weeks. This often results in delayed care and worsened health outcomes.
Creates a homeless indicator and data exchange process to improve coordination and access to already existing benefits.
o Issue this addresses: Existing administrative systems for accessing benefits for lowincome persons (e.g., Medi-Cal, CalSAWS, CalAIM programs) lack a definitive identifier for individuals experiencing homelessness, making it difficult to determine eligibility, track benefits received, or ensure access to future programs for which they would benefit. This leaves government systems, health plans, and health care providers to develop their own proprietary methods of identification which are incomplete, untethered to the system, and vary widely in quality.
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2 2. Why is AB 543 needed?
California has the largest population of unsheltered individuals in the country, with over 187,000 people experiencing homelessness. Currently, Medi-Cal’s network-based system results in delays and service denials for people experiencing homelessness. Although a vast majority of people who are unsheltered are enrolled in Medi-Cal and have an assigned primary care provider (PCP), very few can access their PCP. AB 543 establishes three critical reforms that improve access to full Medi-Cal coverage for people experiencing homelessness, allowing Medi-Cal providers, including street medicine teams, to establish eligibility on the spot and provide immediate, life-saving care.
3. Are unhoused patients really being denied medically necessary services (MNS) based solely on their Medi-Cal Managed Care Network Assignment? Yes. After enrollment in Medi-Cal, members are assigned to a Managed Care Plan (MCP), then the MCP assigns them to a PCP, sometimes through an Independent Practice Association (IPA). The MCP, IPA, and PCP receive a per-member-per-month payment regardless of whether the patient is seen—and in many cases, they are not. The problem is that the assigned PCP acts as gatekeepers to many MNS, including:
Diagnostic tests (e.g., X-rays, Ultrasounds, CT scans) Specialist referrals (e.g., Cardiology, Neurology, Oncology) Durable Medical Equipment (e.g., wheelchairs, oxygen tanks, wound care supplies) Despite providing care on the street, and permitted by state professional licensure, street medicine providers can’t order these basic but lifesaving services because they aren’t the patient’s assigned PCP, even in instances where the street medicine provider is contracted with the patient’s MCP. AB 543 allows street medicine providers to order MNS within the patient’s network and IPA, even if they are not the assigned PCP.
4. What are some real-life examples of patients being denied medically necessary services?
Here is one street medicine provider's firsthand experience attempting to access MNS for their MediCal Managed Care patients on March 10, 2025:
Patient 1: An electrician with severe sciatica living in a doorway needed an X-ray to begin treatment and return to work. His street medicine provider has spent eight weeks attempting to coordinate an appointment with his assigned PCP to place an X-ray order the provider is licensed to order directly. He remains in chronic pain and unable to work.
Patient 2: A married patient who cares for her sick husband, both living in a tent, suffers with epilepsy. The street medicine provider is unable to order the needed EEG and neurology referral because street medicine isn’t the assigned PCP, although licensed to order those tests. There is not established relationship with the assigned PCP, resulting in denial by the PCP to order on behalf of street medicine.
Patient 3: A 72-year-old man, formerly a Long Beach State football player and now living under the freeway, has a history of two strokes and presented with an irregular heartbeat— highly suggestive of atrial fibrillation, placing him at significant risk for another stroke. Street Medicine is unable to order an EKG, an echocardiogram, or a cardiology referral because they aren’t the PCP, although licensed to do so. Instead, they had to arrange and pay for a rideshare to his assigned PCP, whom he had never seen, delaying potentially life-saving treatment. The street medicine provider has a contract with their Managed Care Plan and will get reimbursed for the visit, but the patient is still unable to access care.
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3 Patient 4: A young woman with dreams of becoming a nurse developed a seizure disorder after being hit by a car five years ago. Thanks to anti-seizure medications prescribed by street medicine, she had been seizure-free for three months while waiting for her PCP to order an EEG and neurology referral—both of which street medicine is legally permitted to order. Two weeks ago, her medications were stolen, but her insurance refused to refill them, citing it was “too early to refill.” Last week, she suffered another seizure and was taken to the hospital, only to be discharged with instructions to follow up with her PCP—whom she has been unable to see despite three months of trying. Meanwhile, street medicine remains unable to order the EEG and neurology referral she needs to manage her condition. The PCP is held to quality metrics for post-hospital follow-up, which was met by the street medicine team’s visit, but the patient still lacks access to diagnostic testing.
Patient 5: “Papa,” named for the care he provides to others in his encampment, has been diagnosed with Hepatitis C. Five years ago a mass was discovered on his liver, raising concerns about cancer. To begin Hepatitis C treatment and determine whether the mass is cancerous, he needs a CT scan—yet street medicine was unable to order it because they aren’t the PCP. The patient declines to go to his PCP because he’s afraid to leave his belongings which will be stolen, resulting in an impossible decision between health and immediate survival.
5. How does AB 543 fix the issue of patients being denied medically necessary services?
AB 543 addresses this by allowing street medicine providers – who are contracted with a Medi-Cal Managed Care Plan – to order medically necessary services within the patient's assigned Medi-Cal and IPA network, thus bypassing the PCP, to ensure timely and life-saving care.
6. How do people who are unhoused get their Medi-Cal Managed Care Network Assignment?
When someone is enrolled in Medi-Cal, their enrollment package is sent to them by mail, providing them an opportunity to select a PCP. If they do not select a PCP, a PCP is automatically assigned to them based on proximity to their home residence. However, people experiencing homelessness often do not have a stable mailing address and thus never receive this information. Therefore, it’s rare for them to have chosen their PCP or to know who they are.
7. Why don’t people experiencing homelessness just see the PCP assigned to them through their Medi-Cal Managed Care Network?
The vast majority of experiencing homelessness never see the primary care provider (PCP) assigned to them through Medi-Cal Managed Care because they don’t know who their assigned PCP is and have no practical way to access them. Some reasons include:
No access to a phone – Many individuals cannot call to schedule appointments, navigate automated phone systems, or receive follow-up instructions. Inability to leave encampments – Fear of theft of belongings, losing their only shelter due to sweeps, or being forced to abandon pets prevents many people from leaving their location for extended periods.
Severe illness or mobility challenges – Many individuals are too sick, injured, or physically disabled to make it to their assigned provider.
Transportation challenges – Without reliable transit options, reaching a clinic across town is often impossible.
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4 Strict clinic hours – Many PCP offices operate on schedules that do not align with the unpredictable realities of homelessness, where securing food, shelter, and safety often take priority.
As a result, while over 70% of people experiencing homelessness are enrolled in Medi-Cal, less than 10% have seen a primary care provider.
12 Instead, they rely on emergency rooms or street medicine teams. Yet, street medicine providers are unable to order basic medical services because of network restrictions. AB 543 is designed to eliminate these barriers.
8. Why can’t street medicine provider just become the PCP? They can and they do, when patients request it. However, this process takes 4-6 weeks, delaying critical services the patient is entitled to. Additionally, patients relocate, or are relocated, frequently.
Even if their PCP does street medicine, there’s a need for flexibility to allow for immediate access when patients move and are seen by another street medicine team.
9. Does AB 543 increase Medi-Cal costs for California?
AB 543 is not an expansion of Medi-Cal and doesn't add any additional covered services. It also does not seek to expand funding for street medicine. The bill's purpose is to decrease barriers to care and time to receiving care. AB 543 prohibits the denial of referrals based on network assignment by allowing members to access Medically Necessary Services (MNS) through street medicine providers regardless of their PCP assignment, within the patient’s MCP network. This enables street medicine providers to refer within the patient’s network and IPA, even if the provider themselves is not the PCP or contracted with that network. DHCS has already paid networks made up of managed care plans who have already paid IPAs and PCPs to provide care for these patients. This simply opens a new pathway to accessing care for the unhoused through an already reimbursable service – street medicine. Additionally, this increases efficiency and access to care, avoiding more costly care in the future.
10. How does Bill AB 543 benefit stakeholders beyond street medicine? Allows non-hospital providers, including FQHCs, to provide immediate care through PE, eliminating delays from Medi-Cal determinations and improving quality metrics by allowing whoever is seeing the patient to help provide critical quality care while also contributing to quality metrics, not just the PCP.
Closes critical care gaps post-hospital discharge by allowing street medicine teams to implement care plans immediately. Street medicine has shown to increase post-hospital follow up 3-fold compared to brick-and-mortar care.3
Reduces costly ER visits and hospitalizations by ensuring timely, coordinated care for individuals experiencing homelessness.
Enhances state accountability by tracking Medi-Cal access and improving resource deployment.
Strengthens street medicine’s role in crisis response and housing services by removing PCP assignment barriers, enabling street medicine to more effectively respond to referrals they receive from local government, first responders, and community partners.
1Gelberg L, Gallagher TC, Andersen RM, Koegel P. Competing priorities as a barrier to medical care among homeless adults in Los Angeles. Am J Public Health. 1997; 87:217-220.
2 Feldman CT, Feldman BJ, Chowdhury T, McConnaughy M, Phan C, Yoon E, Coulourides Kogan A. Unmet health needs for people experiencing unsheltered homelessness in MacArthur Park. January 2025. DOI:10.170605/OSF.IO/6HPYK 3 Feldman BJ, Kim JS, Mosqueda L, Vongsachang H, Banerjee J, Coffey CE Jr, Spellberg B, Hochman M, Robinson J. From the hospital to the streets:
Bringing care to the unsheltered homeless in Los Angeles. Healthc (Amst). 2021 Sep;9(3):100557. doi: 10.1016/j.hjdsi.2021.100557. Epub 2021 May 27.
PMID: 34052622.
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5 11. What can I do to support AB 543?
a) Sign the Joint Letter of Support: Sign our joint letter of support, alongside organizations and associations from across the state. By March 25, send your organization name, logo, and signatory to Kaitlin Schwan, Director of the California Street Medicine Collaborative, at [email protected].
b) Submit a Letter of Support Through the California Legislature Position Letter Portal: To officially register your support, submit your letter through the Position Letter Portal. You can access the portal here: Position Letter Portal. Be sure to include your organization’s logo, signatories, why you support the bill, and (if appropriate) include a patient story. c) Reach Out to Your Local California State Assemblymember, State Senator, & County Supervisor: Contact your local Assemblymember, State Senator, and County Supervisor to explain why AB 543 is important and encourage them to support the bill. Share how the bill will positively impact your community and the people you serve, and ask them to publicly support it.
d) Invite Legislators and Stakeholders on Street Rounds: Invite legislators and other relevant stakeholders to join street rounds to witness firsthand the challenges faced by the individuals you serve.
More questions?
Please send any questions, comments, or requests to meet to:
Kaitlin Schwan, Director of the California Street Medicine Collaborative, at [email protected]
Brett Feldman, Director of USC Street Medicine, [email protected] Redlands Regular Meeting of 05-20-2025 11 31 of 1269
City Council/Financing Authority Meeting H. 3.
DATE: 05/20/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the Sole Source Agreement with NewEdge Services, LLC for Software Integration between Cityworks Server and Tyler Munis ERP and other professional services for a total contract not to exceed $59,300, with the option to extend the agreement for future related services (Management Services/Finance Director Garcia) MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to approve the sole source Professional Services Agreement with NewEdge Services, LLC in an amount not to exceed $59,300, with the option to extend the agreement for future related services.
RECOMMENDATION:
Staff recommends that the City Council approve a sole source agreement with NewEdge Services, LLC for a comprehensive services package that includes the development of a software integration between Cityworks Server PLL (the City’s permitting software) and Tyler Munis ERP (the City’s financial software), the upgrade of Cityworks to Version 23 for both Development Services and the Fire Department, and the consolidation of server instances into a single, unified system.
DISCUSSION:
The City currently uses Cityworks – Permits, Licensing, and Land Management (PLL) to manage the lifecycle of development and land-use activity, including, planning and zoning applications, engineering reviews, plan check and permitting. Cityworks PLL calculates fees for each permit type, activity or development scenario based on the City’s approved fee schedule, but lacks an integration with our main accounting software that would facilitate online Redlands Regular Meeting of 05-20-2025 32 of 1269
integration with our main accounting software that would facilitate online payments. At present, customers can only make payments in person at the Customer Service Counter. This process requires staff to manually re-enter the fees from Cityworks (line by line) into another system (enQuesta) that then enables the City to record the transaction into our accounting system, eventually.
At the end of each day, a batch file is generated from enQuesta and sent to Tyler Munis, the City’s accounting software.
To enhance efficiency, improve customer service and allow for online payments, the City seeks to bypass this cumbersome system of software handoffs by enabling online permit payments directly through the Cityworks portal. To achieve this, a software integration is required to seamlessly transfer financial data between Cityworks and Tyler Munis.
In advance of performing this integration, however, the City must upgrade to the latest version of Cityworks – Version 23. The Cityworks environment itself must then be consolidated from two instances (one for Development Services and one for the Fire Department) into one citywide instance. This will enhance operational efficiency and support coordinated services across departments.
The Cityworks product line offers a great unified platform for multi-departmental collaboration, is highly configurable in terms of fee calculations and zoning-based triggers, and supports complex workflow routing (ideal for complex municipal codes). The downside of these features is that Cityworks requires significant configuration with highly advanced, evolving technical knowledge of the system. In order to fully leverage the capabilities of this system, external vendor support is necessary.
Based on this understanding, staff undertook an extensive search for a Cityworks/Trimble Certified Partner (Certified Partners are vetted and approved by Cityworks/Trimble. Cityworks/Trimble do not provide any professional services for their software). Staff sought a firm that had experience building integrations between Cityworks and Tyler Munis. NewEdge Services has developed robust integrations between Cityworks and Tyler Munis, allowing for seamless data exchange and reducing the need for duplicate data entry.
Staff recommends contracting with NewEdge Services, LLC to perform these services. NewEdge is the only vendor capable of providing the required software integration between Cityworks and Tyler Munis ERP due to their exclusive expertise, proprietary methodologies, and direct partnerships with both software providers. As a platinum-level partner in the Cityworks/Trimble Partner Network with direct collaboration with Tyler Munis staff, NewEdge has access to specialized toolkits and methodologies that no other vendor offers. Their proven track record of successful integrations for other municipalities, combined with a recommendation from Trimble/Cityworks, confirms their unique ability to deliver this solution. The costs provided in their proposal are significantly lower than other estimates the City has received over the years to perform similar work on Redlands Regular Meeting of 05-20-2025 33 of 1269
the software and staff feels this pricing is competitive and reasonable.
ALTERNATIVES:
City Council may choose not to approve the agreement with NewEdge Services, LLC.
STRATEGIC PLAN:
Not Applicable
SUBMITTED BY:
Danielle Garcia, Management Services/Finance Director
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Dana Abramovitz-Daniel, Procurement Manager
PREPARED BY:
Whitney Mesna, Administrative Analyst
Fiscal Impact
Fiscal Year: FY 2024-25
Discussion:
The total cost for the Initial Term of the Agreement with NewEdge Services, LLC is not-to-exceed $47,300 for the initial scope of work, with optional and ongoing maintenance fees totaling $3,000/year during the four (4) Renewal Terms for a grand total of $59,300 over five (5) years.
Four (4) one-year Renewal Terms are included in the agreement and staff would like to reserve an option to extend the scope of the agreement for future-related services after the Initial Term expires and will bring the agreement back to Council for approval of any amendments to scope and cost at a future Council meeting.
Funding for this project is available in the adopted budget for the IT Division.
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Attachments
Sole Source Letter
Professional Services Agreement - NewEdge Services
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February 17, 2025
City of Redlands
35 Cajon Street Suite 15B
Redlands, CA 92373
RE: Integration Services – Cityworks and Munis
NewEdge Services, LLC (NewEdge) is uniquely positioned to provide integration services between the City of Redlands’ (City) Cityworks Server PLL software for permitting and its Munis ERP system. Due to our specialized expertise and experience in developing and implementing Munis integrations, NewEdge is the only provider capable of delivering a seamless, efficient and fully optimized integration solution tailored to the City’s needs.
NewEdge has successfully implemented multiple Munis integrations across various municipal functions, including:
• One-way financial data integration from Cityworks PLL to Munis financials • Two-way integration between Munis Utility Billing and Cityworks work orders • Two-way inventory management integration between finance and City storerooms
NewEdge, a platinum-level implementation partner in the Trimble Partner Network, has been strongly recommended by Trimble as a trusted integration partner for municipalities. Our direct collaboration with Tyler Munis staff, in-depth understanding of the Munis toolkits and unmatched expertise with Cityworks APIs enable the NewEdge team to provide integration solutions that no other vendor can replicate.
Given our proprietary methodologies, established relationships with key software providers and demonstrated success, NewEdge is the sole provider capable of delivering these integration solutions effectively and efficiently. NewEdge does understand that the City is primarily interested in the integration between Cityworks PLL and Munis ERP for financial information.
We look forward to the opportunity to assist the City of Redlands.
Sincerely,
Laura Carr
Chief Operating Officer
NewEdge Services, LLC
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1 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms
AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This agreement for the provision of Cityworks Consulting Services (“Agreement”) is made and entered in this 20th day of May, 2025 (“Effective Date”), by and between the City of Redlands, a municipal corporation (“City”) and NewEdge Services, LLC, a Texas limited liability company (“Consultant”). City and Consultant are sometimes individually referred to herein as a “Party” and, together, as the “Parties.” In consideration of the mutual promises contained herein, City and Consultant agree as follows:
ARTICLE 1 – ENGAGEMENT OF CONSULTANT
1.1 City hereby engages Consultant to provide Cityworks Consulting services for City (the “Services”).
1.2 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the industry providing like and similar types of Services.
ARTICLE 2 – SERVICES OF CONSULTANT
2.1 The Services that Consultant shall perform are more particularly described in Exhibit “A,” titled “Scope of Services,” which is attached hereto and incorporated herein by this reference.
2.2 Consultant shall comply with applicable federal, state and local laws and regulations in the performance of this Agreement including, but not limited to, any applicable State prevailing wage laws.
ARTICLE 3 – RESPONSIBILITIES OF CITY
3.1 City designates Danielle Garcia, Management Services/Finance Director, as City’s representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to performance of the Services.
ARTICLE 4 – PERFORMANCE OF SERVICES
4.1 Consultant shall perform and complete the Services in a prompt and diligent manner.
4.2 The Initial Term of this Agreement shall be for a period of one (1) year from the Effective Date of this Agreement (the “Initial Term”). The City shall have the option to extend the Initial Term of this Agreement by four (4) additional one-year terms (each, an “Extended Term”), on the same terms and conditions, by providing written notice to Consultant at least thirty (30) days prior to the expiration of the Initial Term or any Extended Term.
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4.3 If Consultant’s Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to City, consistent with City Council-adopted policy for the same. It shall be the obligation of Consultant to obtain a copy of such policy from City staff.
ARTICLE 5 – PAYMENTS TO CONSULTANT
5.1 Compensation: The compensation for Consultant’s performance of the Services shall not exceed the amount of Forty Seven Thousand Three Hundred Dollars ($47,300) for the Services provided during the Initial Term. Should this Agreement be extended, the compensation for Consultant’s performance for the Services shall not exceed the amount of Three Thousand Dollars ($3,000) for each of the four (4) Extended Terms, bringing the total possible amount of compensation to a not-to-exceed amount of Fifty Nine Thousand Three Hundred dollars ($59,300). For the Initial Term and each Extended Term, City shall pay Consultant on a time and materials basis up to the not to not-to-exceed amount in accordance with the rates specified in Exhibit “B,” titled “Cost Summary and Rates,” which is attached hereto and incorporated herein by this reference.
5.2 Consultant shall submit monthly invoices to City describing the Services performed during the preceding month. Consultant’s invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom, and a description of reimbursable expenses related to the Services. City shall pay Consultant no later than thirty (30) days after receipt and approval by City of Consultant’s invoice.
5.3 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile or electronic mail transmission (including PDF), if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section:
CITY: CONSULTANT:
City Clerk Laura Carr, Chief Operating Officer
City of Redlands NewEdge Services, LLC
35 Cajon Street 9191 Kyser Way, Suite 103
P.O. Box 3005 (mailing) Frisco, TX 75033
Redlands, CA 92373 [email protected]
[email protected] Phone: (469) 888-5044
Phone: (909) 798-7531 Fax: (214) 705-1573
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3 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms ARTICLE 6 – INSURANCE AND INDEMNIFICATION
6.1 The following insurance coverage required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services. Consultant shall not perform any Services unless and until the required insurance listed below is obtained by Consultant.
Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City.
A. Workers’ Compensation and Employer’s Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Consultant is self-insured or exempt from the workers’ compensation laws of the State of California. Consultant shall execute and provide City with Exhibit “C,” titled “Workers’ Compensation Insurance Certification,” which is attached hereto and incorporated herein by this reference, prior to performance of the Services.
B. Comprehensive General Liability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate, for public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City.
C. Consultant shall secure and maintain professional liability insurance throughout the term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made.
D. Business Auto Liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property damage liability. This coverage shall include all Consultant owned vehicles used in connection with Consultant’s provision of the Services, hired and non-owned vehicles, and employee non-ownership vehicles. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or selfinsurance maintained by City.
E. Consultant is expressly prohibited from assigning or subcontracting any of the Services without the prior written consent of City. In the event of mutual agreement by the Parties to assign or subcontract a portion of the Services, Consultant shall add such assignee or subcontractor as an additional insured to the insurance policies required hereby and provide City with the insurance endorsements prior to any Services being performed by the assignee or subcontractor.
6.2 Consultant shall defend, indemnify and hold harmless City and its elected and appointed officials, employees and agents from and against any and all claims, losses or liability, including attorneys’ fees, arising from injury or death to persons or damage to property Redlands Regular Meeting of 05-20-2025 39 of 1269
4 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms occasioned by any negligent act or omission by, or the willful misconduct of, Consultant, or its officers, employees and agents in performing the Services.
ARTICLE 7 – CONFLICTS OF INTEREST
7.1 Consultant covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by the performance of Consultant’s Services. Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement.
7.2 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant:
A. Does not make a governmental decision whether to:
(i) approve a rate, rule or regulation, or adopt or enforce a City law; (ii) issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize City to enter into, modify or renew a contract; (iv) grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) grant City approval to a plan, design, report, study or similar item; (vi) adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof.
B. Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a position specified in City’s Conflict of Interest Code under Government Code section 87302.
7.3 In the event City determines that Consultant must disclose its financial interests, Consultant shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk’s office pursuant to the written instructions provided by the City Clerk.
ARTICLE 8 – GENERAL CONSIDERATIONS
8.1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys’ fees, including fees for the use of inhouse counsel by a Party.
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8.2 Consultant shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, result in City’s immediate termination of this Agreement.
8.3 Consultant is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor any its agents shall have control over the conduct of Consultant or Consultant’s employees, except as herein set forth. Consultant shall supply all necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by Consultant are for its account only, and in no event shall Consultant or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind City to any obligation.
8.4 This Agreement may be terminated by City, in its sole discretion, by providing not less than five (5) days prior written notice to Consultant of City’s intent to terminate. If this Agreement is terminated by City, an adjustment to Consultant’s compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant. Upon receipt of a termination notice, Consultant shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services. Consultant shall be compensated on a pro-rata basis for Services completed up to the date of termination.
8.5 Consultant shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Consultant.
8.6 This Agreement, including the Exhibits incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, any amendment to this Agreement shall be in writing, approved by City and signed by City and Consultant.
8.7 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and Redlands Regular Meeting of 05-20-2025 41 of 1269
6 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California.
8.8 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement.
IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed in confirmation of this Agreement.
CITY OF REDLANDS NEWEDGE SERVICES, LLC
By: ___________________________ By: _________________________ Mario Saucedo, Mayor Laura Carr, Chief Operating Officer ATTEST:
___________________________
Jeanne Donaldson, City Clerk
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7 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms EXHIBIT "A"
SCOPE OF SERVICES
Item Description
1.0 Cityworks Application Business Process Review
The NewEdge team understands the City of Redlands is looking for a qualified, experienced Trimble Business Partner to evaluate the current Cityworks environment.
The NewEdge team understands the client desires a consultant that will work closely with personnel to understand the present and future goals for the use of the Cityworks software and recommend how to remedy the deficiencies in the current system and provide a roadmap of the Cityworks software. This health check does not include the implementation of new divisions or departments.
Tasks / Deliverables for the NewEdge Health Check include the following:
• Kickoff Meeting
• NewEdge Virtual Process Review Workshop
o Review of the current Cityworks database configuration and user interface,
o Review of the GIS data and how it is configured to work with the Cityworks software
o Review of business processes and workflows within the divisions currently using Cityworks
o Review of the Cityworks database to ensure those processes are configured correctly.
• Assessment report that will include recommendations for database configuration changes, workflow processes, field deployment, training and reporting needs and will include cost estimates for these tasks. • Delivery of assessment report - NewEdge staff will meet with each division interviewed in the workshops and provide an overview of the assessment report.
NewEdge has met with the City of Redlands staff and understands there are key functions that they would like NewEdge to take into account while performing the review. These include:
• Primary Target of preparing Cityworks PLL to accept on-line payments via Invoice Cloud. NewEdge will work with the City and Invoice Cloud to understand how the integration is being configured and implemented. • There are currently 2 instances of Cityworks configured at the City, one for Fire (AMS for inspections) and one for Development Services (PLL).
City staff would like to look at consolidating these into 1 instance. • Issues with ProjectDox and the webhooks used to integrate ProjectDox with Cityworks
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8 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms From the kickoff meeting to delivery of the Assessment Report, the project should take approximately 6 weeks months. The NewEdge project manager will generate a more detailed schedule upon receiving a notice to proceed.
1.1 Upgrade of the Cityworks Software to Version 23.x
NewEdge staff will perform an upgrade of the client’s Cityworks software to Version 23.x. NewEdge understands the City is currently running two instances of the Cityworks software that will be migrated into one instance under this task.
Fire uses Cityworks Server AMS for Fire Inspections and while Development Services uses Cityworks Server PLL for permitting. Both instances are in separate application environments and different versions of the software. The goal of this task will be to combine the two instances into one Cityworks database environment and upgrade to the current version of Cityworks 23.x. All users will remain in the Office Companion environment. This project will consist of the following tasks:
• Kickoff Meeting via conference call
• Upgrade of Cityworks Server AMS in the current environment. • Upgrade of the Cityworks test PLL environment
• Migration of the Cityworks Server AMS data into the PLL environment in test
• Upgrade of the Cityworks production environment.
NewEdge staff will remote desktop or VPN into the Cityworks test environment to upgrade the Cityworks software to the new version. Client staff will have 30 days for testing the upgraded application.
Once thoroughly tested in the test environment, NewEdge staff will upgrade the production environment. The upgrade will need to occur off-hours and preferably over a weekend so as not to disrupt the use of Cityworks. NewEdge staff will be available the following day of the upgrade to support any issues.
Third party integrations, such as Citizen Engagement, CCTV or custom integrations with financial or human resources software, will be thoroughly tested by the client.
For all tasks IT and Database staff should be available to address questions and assist with network/communication issues if they should arise.
Cityworks 23 is a new platform for the Cityworks software. Due to differences in the application frameworks, Office and Respond, an upgrade to Cityworks 23 will require users to run two different sites. Clients using only Office, now called Office Companion, or Respond will see no differences in their use of Cityworks.
For clients using Office and Respond, users will have to log in and out of each application to access the interface.
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9 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms Running Crystal Reports can only occur in the Office Companion environment.
Respond only users with Crystal Templates will need to either migrate those reports to the report writer in Respond, ActiveReports, or switch between the two interfaces to run Crystal reports.
2.0 Munis Integration for Payments Received through Cityworks PLL Identified Integrations between Cityworks and Third-Party Software • Munis and Cityworks Server PLL Integration
Fees received through PLL would be automatically pushed to the appropriate GL accounts in the Munis financial software.
Costs identified in this section are for the Discovery and Requirements phase only. This is an upfront cost that will be billed upon receiving the notice to proceed. NewEdge will then start working with both the client and the third party software to identify integration methods (database to database, API, etc) and start documenting the client requirements for the integration.
See section below for more details on the NewEdge methodology, schedule and costs for the Third Party Integration Services.
Goal / Purpose of Integrations:
The goal of NewEdge integration services between Cityworks and third-party applications is to eliminate the manual or paper processes that occur when a trigger or work process occurs in one application and requires action to be taken in another application. Example being money/fees collected through the PLL software are either delivered to finance in a report or csv file. This report and/or the csv file must be reviewed and then the information is either entered manually or imported from the csv file.
Workflow:
The general workflow for such communication between software systems is that data is entered into one system then printed, emailed or a phone call occurs to initiate the work. Work performed is recorded in Cityworks fees either received through the PLL Public Access module (InvoiceCloud) or entered into PLL and then manually documented on printouts delivered to finance.
Integrations relieve the paper delivery/pick-up and the dual entry by departmental or division personnel. The workflow for most integrations with a 3rd party software and Cityworks can be streamlined to the following:
Deliverables for Each Integration
Discovery / Requirements Phase
Web Service to run Cityworks APIs
Windows Service
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10 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms Tables in the Cityworks database (if required)
Trigger on Cityworks database table (would be used for instantaneous push/pull of data)
Program for cleanup should issues occur (can also run as a scheduled task)
The Discovery / Requirements Phase will be an opportunity to evaluate the methodology for the requested integration(s). This is the time that NewEdge staff will work with the 3rd party software to determine:
• Does the 3rd party have established APIs or will they be developing them during the project
• Can the 3rd party provide documentation on their APIs • If no APIs – what will be the integration methodology such as database to database triggers or export/import operations.
• Does the 3rd party software have developers available to NewEdge staff and what will that cost be to the client
Once the methodology of the integration is established, NewEdge staff will conduct a requirement meeting with the client to review the data that will be pushed and pulled between the two systems.
Schedule:
Upon receiving a notice to proceed, NewEdge staff will work with client staff to contact the 3rd party software vendor and begin discussions on integration methodology. Once this is complete, NewEdge can then schedule the requirements meeting with client staff.
Once requirements are signed off by the client, the project duration will be approximately 4 months with the following milestones:
• Installation of the integration on the client’s test environment / client testing
• Installation of the integration on the client’s production environment.
Could be contingent upon the go-live of the 3rd party software • Final acceptance
Schedule and availability of 3rd party resources could extend the timeline.
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11 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms EXHIBIT "B"
COST SUMMARY AND RATES
For all integrations there is an up-front cost for the Discovery/Requirements phase. After the requirements are complete, the client will receive a revised cost for the coding and installation of the integration. NewEdge will continue to support the integration for 1 year after the install and go-live of the integration.
Following the initial year, the integration will have a yearly maintenance cost to account for:
• Issues that arise with the integration
• Updates/Upgrades to the Cityworks application
• Support for third-party upgrades / modifications
Note – NewEdge staff will support third-party application staff if changes are made to the software, however, NewEdge staff will not make modifications to the third-party software or API code.
• Changes / modifications to the data passed between the two systems Payment Schedule
Discovery / Requirements Phase –
billed when NTP received
$8,000.00
Revised integration costs approved
Requirements approved; Coding
begins
33% of integration costs
Installation on Test Environment 60% of integration costs Installation on Production
Environment
90% of integration costs
Final Acceptance 100% of integration costs
Maintenance / Continued Support Billed Yearly from Go-Live Integration Estimates
Integration
Description
Integration
Type
Cost Maintenance
Munis Integration
for Permitting Fees
One-Way
integration
$15,000.00 $3,000.00
**Costs will be further refined after Discovery / Requirements phase.
Cityworks Hourly Support Services
NewEdge Services, LLC will provide the City Redlands IT staff advisory service hours related to Cityworks and GIS initiatives. These hours can be used remotely, or the City can request NewEdge staff to be on-site. Tasks can include but are not limited to:
• Configurations
Changing Cityworks and / or GIS configurations based on assessment meetings, advising staff on configuration options and best practices.
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12 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms • Reporting
Generate or complete reports in the Crystal Reports software • General Consulting Services
NewEdge will address user questions and hours can be used for additional training.
Prior to work commencing, tasks must be requested and approved by Richardson IT. Any work performed under this Agreement will be itemized on the invoice(s) provided to Richardson and billed at the hourly rates listed below:
Title Rate
GIS Intern $80/hour
GIS Technician $110/hour
GIS/Cityworks Specialist $130/hour
Senior GIS/Cityworks
Specialist
$165/hour
Database
Administrator/System
Admin
$165/hour
Developer $165/hour
Project Manager $200/hour
Cost Summary:
Immediate Tasks Estimated Time of Billing Costs
Cityworks Application
Business Review
50% upon receiving NTP
50% delivery of report
$8,100.00
Upgrade of Cityworks Software
to 23.x
Task will start after delivery of
Business Review Report
50% at Kickoff Meeting
50% upgrade of production
$16,200.00
Billing of Hourly Support
Hours
Primary task will be to set up
PA to accept on-line payments
Billed to the client on a
monthly basis
TBD
Integration between Munis and
PLL
Discovery and Requirements
Phase
100% Billed when receive NTP $8,000.00
Integration between Munis and
PLL
Coding and Installation Phase
10% billed at Kickoff
50% install on test
90% install on production
100% integration final
Estimated:
$15,000.00
Total Estimated Immediate Costs: $47,300.00
Plus hourly support hours
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13 I:\cmo\Agreements\NewEdge Services, LLC Agreement FY25-0058.docx-ms EXHIBIT "C"
WORKERS’ COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation in one or more of the following ways:
(a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self-insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his or her employees.
CHECK ONE
_____I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861).
_____I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers’ compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers’ compensation laws of California, immediately I shall provide the City with a certificate of consent to self-insure, or a certification of workers’ compensation insurance.
I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct.
NEWEDGE SERVICES, LLC
By: Date: ___________________
Laura Carr, Chief Operating Officer
Redlands Regular Meeting of 05-20-2025 49 of 1269
City Council/Financing Authority Meeting H. 4.
DATE: 05/20/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the Professional Services Agreement for Sales, Use and Transactions Tax Audit and Consulting Services with Hinderliter De Llamas & Associates for a period of three (3) years with two (2) one-year Extended Term options in a total amount not-to-exceed $113,300 (Management Services/Finance Director Garcia)
MOTION(S):
If the City Council determines that the staff’s recommendation is appropriate, the following motion is provided:
I move to approve a Professional Services Agreement with Hinderliter, de Llamas & Associates for a period of three (3) years with two (2) one-year Extended Term options in a total amount not-to-exceed $113,300.
RECOMMENDATION:
Staff recommends that Council approve the agreement with Hinderliter, de Llamas & Associates for Sales, Use and Transactions Tax Audit and Consulting services for a period of three (3) years with two (2) one-year Extended Term options in a total amount not-to-exceed $113,300. Staff is recommending single-source procurement of these services based on the quality and extent of work previously performed by this firm on behalf of the City, as well as their knowledge and expertise, and extensive public agency client base.
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DISCUSSION:
Hinderliter, de Llamas & Associates (HdL) provides audit and consulting services for sales, use and transactions tax revenue. Through its audit services, HdL recovers sales tax for the City through detecting and documenting misallocations of sales, use and transactions tax activity within the time limitations set by the Board of Equalization. HdL maintains the largest privately held sales tax database, containing 28 years of Redlands-specific data and has up-to-date knowledge of the City’s tax base, including aspects related to the Citrus Plaza/Mountain Grove retail establishments.
Basic sales tax is technically referred to as "sales and use" tax. This is the portion of all sales (1%) that is remitted to every city in California.
As it relates to this basic sales tax (sales and use tax), HdL proposes a monthly fee of $740.46 for these services and 15% of any new sales or use tax revenues received because of audit work performed on the City’s behalf. These fees are not billed until the misallocated revenues are received by the City.
Beyond the basic sales and use tax, there is also a sales tax referred to as a "Transaction" tax. This refers to special taxes that voters approve in different jurisdictions.
As a result of the passage of Measure T, the voters approved a transactions tax of 1% (in addition to the basic sales tax of 1%) and the California Department of Tax and Fee Administration (CDFTA) began collection of this transactions tax in April 2021.
In a way similar to that of basic sales tax, HdL proposes a $200/month charge for the transaction tax reports that will be included with HdL’s quarterly sales tax analyses, and 25% of any transaction tax revenues received because of audit work performed on the City’s behalf. These fees are also not billed until the misallocated revenues are received by the City.
HdL's scope of work for both types of sales tax includes the following: sales tax forecasting, analysis, recovery, compliance and reporting; they act on behalf of the City in reconciling amounts received by the City and the State administration for the sales tax remittance process. Unlike sales tax where there is a 3-month delay to see if the state finds errors on their own, HdL begins examining and correcting tax allocations immediately and will review all related “use tax” databases to ensure that both in-state sales and out-of-state purchases are being properly taxed and collected.
The attached agreement is for three (3) years with the option for two (2) one-year Extended Terms, with the first term going from May 6, 2025–June 30, 2026 and the subsequent years proceeding according to the City’s fiscal year.
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2026 and the subsequent years proceeding according to the City’s fiscal year.
Year 1 fees total $12,226 and with HdL has agreed not to increase the monthly fees by more than 5% per year for the subsequent years (including Extended Terms). This, along with up to $10,000 of optional consulting services from HdL for the duration of the Initial Term and each of the additional Extended Terms, brings the agreement to a Not-to-Exceed total of $113,300.
ALTERNATIVES:
The Council may reject the single-source agreements with Hinderliter De Llamas & Associates (HdL) and direct staff to pursue procurement through a Request for Proposals process. However, no other vendor offers the array of services nor the access to past data that HdL provides to the City.
STRATEGIC PLAN:
N/A
SUBMITTED BY:
Danielle Garcia, Management Services/Finance Director
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Asssitant City Manager
Dana Abramovitz-Daniel, Procurement Manager
PREPARED BY:
Valerie Abrego, Management Analyst
Fiscal Impact
Fiscal Year: 2025
Revenue Generating: Yes
Appropriation Required Y/N: No
Amount: $113,000.00
Budgeted Y/N: Y
Account No.: 101501
Discussion:
Funding for the Professional Services Agreement for Sales, Use Tax and Redlands Regular Meeting of 05-20-2025 52 of 1269
Funding for the Professional Services Agreement for Sales, Use Tax and Transactions Tax Audit and Consulting Services with Hinderliter, De Llamas and Associates (HdL) is included in the Department’s adopted budget for FY 2025 & 2026. Future yearly amounts will be included with subsequent budget requests.
Funding for recoveries of additional sales and transactions tax revenues is based on actual amounts received by the City and is limited to 15% and 25% of the amount recovered, respectively.
Attachments
HdL Professional Services Agreement
Redlands Regular Meeting of 05-20-2025 53 of 1269
1 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2
AGREEMENT TO PERFORM PROFESSIONAL SERVICES
This agreement for the provision of sales and use tax and transaction tax services (“Agreement”) is made and entered in this 20th day of May, 2025 (“Effective Date”), by and between the City of Redlands, a municipal corporation (“City”) and Hinderliter De Llamas & Associates, dba HdL Companies, a California corporation (“Consultant”). City and Consultant are sometimes individually referred to herein as a “Party” and, together, as the “Parties.” In consideration of the mutual promises contained herein, City and Consultant agree as follows:
ARTICLE 1 – ENGAGEMENT OF CONSULTANT
1.1 City hereby engages Consultant to provide sales and use tax services for economic analysis, forecasting, allocation and audit recovery and transactions tax services for economic analysis, forecasting and deficiency/allocation reviews and recovery and other optional consulting services for City (the “Services”).
1.2 The Services shall be performed by Consultant in a professional manner, and Consultant represents that it has the skill and the professional expertise necessary to provide the Services to City at a level of competency presently maintained by other practicing professional consultants in the industry providing like and similar types of Services.
ARTICLE 2 – SERVICES OF CONSULTANT
2.1 The Services that Consultant shall perform are more particularly described in Exhibit “A,” titled “Scope of Services,” which is attached hereto and incorporated herein by this reference.
2.2 Consultant shall comply with applicable federal, state and local laws and regulations in the performance of this Agreement including, but not limited to, any applicable State prevailing wage laws.
ARTICLE 3 – RESPONSIBILITIES OF CITY
3.1 City designates Danielle Garcia, Management Services Director, as City’s representative with respect to performance of the Services, and such person shall have the authority to transmit instructions, receive information, interpret and define City’s policies and decisions with respect to performance of the Services.
ARTICLE 4 – PERFORMANCE OF SERVICES
4.1 Consultant shall perform and complete the Services in a prompt and diligent manner in accordance with the schedule set forth in Exhibit “A,” titled “Scope of Services,” which is attached hereto and incorporated herein by reference. In performing the Services, Consultant is acting as an independent contractor (and not as an agent or employee of Client).
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4.2 The term of this Agreement shall be for a period of three (3) years from the Effective Date of this Agreement (the “Initial Term”). The City shall have the option to extend the Initial Term of this Agreement by two (2) additional one-year terms (each, an “Extended Term”), compensating according to Article 5, “Payments to Consultant”, by providing written notice to Consultant at least thirty (30) days prior to the expiration of the Initial Term or any Extended Term.
4.3 If Consultant’s Services include deliverable electronic visual presentation materials, such materials shall be delivered in a form, and made available to City, consistent with City Council-adopted policy for the same. It shall be the obligation of Consultant to obtain a copy of such policy from City staff.
ARTICLE 5 – PAYMENTS TO CONSULTANT
5.1 The compensation for Consultant’s performance of the Services during the first year of the Initial Term from May 6, 2025 to June 30, 2026 shall be Twelve Thousand Two Hundred Twenty-Six Dollars ($12,226.00). During year two of the Initial Term from July 1, 2026 to June 30, 2027 compensation shall not exceed Eleven Thousand Eight Hundred Fifty Dollars ($11,850.00). During year three of the Initial Term from July 1, 2027 to June 30, 2028 compensation shall not exceed Twelve Thousand Four Hundred Forty-Two Dollars ($12,442.00). During the first Extended Term (July 1, 2028 to June 30, 2029), compensation shall not exceed Thirteen Thousand Sixty-Five Dollars ($13,065.00). During the second Extended Term (July 1, 2029 to June 30, 2030), compensation shall not exceed Thirteen Thousand Seven Hundred Eighteen Dollars ($13,718.00). These totals include the increases of the Consultant’s Fixed Fees pursuant to the Consumer Price Index, as set forth in Exhibit “B” titled “Fees”.
5.2 Consultant shall be further paid fifteen percent (15%) of sales and use tax revenue and twenty-five percent (25%) of transactions tax revenue received by the City as a result of audit and recovery work performed by Consultant as set forth in Exhibit “B,” Sections 2. and 4.a. (hereafter referred to as “Audit Fees”).
5.3 Consultant shall be paid for other consulting and optional services as requested by City according to rates set forth in Exhibit “B”, Section 5, in an amount not-to-exceed Ten Thousand Dollars ($10,000.00) for the duration of both the Initial Term and each additional Extended Term.
5.4 Consultant shall submit quarterly invoices to City describing the Services performed during the preceding quarter. Consultant’s invoices shall include a brief description of the Services performed, the dates the Services were performed, the number of hours spent and by whom, and a description of reimbursable expenses related to the Services. City shall pay Consultant no later than thirty (30) days after receipt and approval by City of Consultant’s invoice.
5.5 Any notice or other communication required, or which may be given, pursuant to this Agreement, shall be in writing. Any such notice shall be deemed delivered (i) on the date Redlands Regular Meeting of 05-20-2025 55 of 1269
3 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 of delivery in person; (ii) five (5) days after deposit in first class registered mail, with return receipt requested; (iii) on the actual delivery date if deposited with an overnight courier; or (iv) on the date sent by facsimile or electronic mail transmission (including PDF), if confirmed with a copy sent contemporaneously by first class, certified, registered or express mail; in each case properly posted and fully prepaid to the appropriate address set forth below, or such other address as a Party may provide notice in accordance with this section:
CITY: CONSULTANT:
Jeanne Donaldson, City Clerk Andy Nickerson, President
City of Redlands Hinderliter, de Llamas & Associates
35 Cajon Street 120 S. State College Blvd.
Redlands, CA 92373 Brea, CA 92821
[email protected] Phone: 714-879-5000
Phone: (909) 798-7531
ARTICLE 6 – INSURANCE AND INDEMNIFICATION
6.1 The following insurance coverage required by this Agreement shall be maintained by Consultant for the duration of its performance of the Services. Consultant shall not perform any Services unless and until the required insurance listed below is obtained by Consultant.
Consultant shall provide City with certificates of insurance and endorsements evidencing such insurance prior to commencement of the Services. Insurance policies shall include a provision prohibiting cancellation or modification of the policy except upon thirty (30) days prior written notice to City.
A. Workers’ Compensation and Employer’s Liability insurance in the amount that meets statutory requirements with an insurance carrier acceptable to City, or certification to City that Consultant is self-insured or exempt from the workers’ compensation laws of the State of California. Consultant shall execute and provide City with Exhibit “D,” titled “Workers’ Compensation Insurance Certification,” which is attached hereto and incorporated herein by this reference, prior to performance of the Services.
B. Comprehensive General Liability insurance with carriers acceptable to City in the minimum amount of One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate, for public liability, property damage and personal injury is required. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self-insurance maintained by City.
C. Consultant shall secure and maintain professional liability insurance throughout the term of this Agreement in the amount of One Million Dollars ($1,000,000) per claim made.
D. Business Auto Liability coverage, with minimum limits of One Million Dollars ($1,000,000) per occurrence, combined single limit bodily injury liability and property Redlands Regular Meeting of 05-20-2025 56 of 1269
4 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 damage liability. This coverage shall include all Consultant owned vehicles used in connection with Consultant’s provision of the Services, hired and non-owned vehicles, and employee non-ownership vehicles. City shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or selfinsurance maintained by City.
E. Consultant is expressly prohibited from assigning or subcontracting any of the Services without the prior written consent of City. In the event of mutual agreement by the Parties to assign or subcontract a portion of the Services, Consultant shall add such assignee or subcontractor as an additional insured to the insurance policies required hereby and provide City with the insurance endorsements prior to any Services being performed by the assignee or subcontractor.
6.2 Consultant shall defend, indemnify and hold harmless City and its elected and appointed officials, employees and agents from and against any and all claims, losses or liability, including attorneys’ fees, arising from injury or death to persons or damage to property occasioned by any negligent act or omission by, or the willful misconduct of, Consultant, or its officers, employees and agents in performing the Services.
ARTICLE 7 – CONFLICTS OF INTEREST
7.1 Consultant covenants and represents that it does not have any investment or interest in any real property that may be the subject of this Agreement or any other source of income, interest in real property or investment that would be affected in any manner or degree by the performance of Consultant’s Services. Consultant further covenants and represents that in the performance of its duties hereunder, no person having any such interest shall perform any Services under this Agreement.
7.2 Consultant agrees it is not a designated employee within the meaning of the Political Reform Act because Consultant:
A. Does not make a governmental decision whether to:
(i) approve a rate, rule or regulation, or adopt or enforce a City law; (ii) issue, deny, suspend or revoke any City permit, license, application, certification, approval, order or similar authorization or entitlement; (iii) authorize City to enter into, modify or renew a contract; (iv) grant City approval to a contract that requires City approval and to which City is a party, or to the specifications for such a contract; (v) grant City approval to a plan, design, report, study or similar item; (vi) adopt, or grant City approval of, policies, standards or guidelines for City or for any subdivision thereof.
B. Does not serve in a staff capacity with City and in that capacity, participate in making a governmental decision or otherwise perform the same or substantially the same duties for City that would otherwise be performed by an individual holding a Redlands Regular Meeting of 05-20-2025 57 of 1269
5 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 position specified in City’s Conflict of Interest Code under Government Code section 87302.
7.3 In the event City determines that Consultant must disclose its financial interests, Consultant shall complete and file a Fair Political Practices Commission Form 700, Statement of Economic Interests, with the City Clerk’s office pursuant to the written instructions provided by the City Clerk.
ARTICLE 8 – GENERAL CONSIDERATIONS
8.1 In the event any action is commenced to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs and other relief, be entitled to the recovery of its reasonable attorneys’ fees, including fees for the use of inhouse counsel by a Party.
8.2 Consultant shall not assign any of the Services, except with the prior written approval of City and in strict compliance with the terms and conditions of this Agreement. Any assignment or attempted assignment without such prior written consent may, in the sole discretion of City, result in City’s immediate termination of this Agreement.
8.3 Consultant is for all purposes under this Agreement an independent contractor and shall perform the Services as an independent contractor. Neither City nor any its agents shall have control over the conduct of Consultant or Consultant’s employees, except as herein set forth. Consultant shall supply all necessary tools and instrumentalities required to perform the Services. Assigned personnel employed by Consultant are for its account only, and in no event shall Consultant or personnel retained by it be deemed to have been employed by City or engaged by City for the account of, or on behalf of City. Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind City to any obligation.
8.4 This Agreement may be terminated by City, in its sole discretion, by providing not less than five (5) days prior written notice to Consultant of City’s intent to terminate. If this Agreement is terminated by City, an adjustment to Consultant’s compensation shall be made, but (1) no amount shall be allowed for anticipated profit or unperformed Services, and (2) any payment due Consultant at the time of termination may be adjusted to the extent of any additional costs to City occasioned by any default by Consultant. Upon receipt of a termination notice, Consultant shall immediately discontinue its provision of the Services and, within five (5) days of the date of the termination notice, deliver or otherwise make available to City, copies (in both hard copy and electronic form, where applicable) of project related data, design calculations, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by Consultant in performing the Services. Consultant shall be compensated on a pro-rata basis for Services completed up to the date of termination.
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8.5 Consultant shall maintain books, ledgers, invoices, accounts and other records and documents evidencing costs and expenses related to the Services for a period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. Such books shall be available at reasonable times for examination by City at the office of Consultant.
8.6 This Agreement, its exhibits, including Exhibit “C,” titled “Additional Terms and Conditions” are incorporated herein by reference, represents the entire agreement and understanding between the Parties as to the matters contained herein, and any prior negotiations, written proposals or verbal agreements relating to such matters are superseded by this Agreement. Except as otherwise provided for herein, any amendment to this Agreement shall be in writing, approved by City and signed by City and Consultant.
8.7 This Agreement shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflicts of laws provisions. The Parties agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the state courts located in San Bernardino County, California, and the federal courts located in Riverside County, California.
8.8 If one or more of the sentences, clauses, paragraphs or sections contained in this Agreement is declared invalid, void or unenforceable by a court of competent jurisdiction, the same shall be deemed severable from the remainder of this Agreement and shall not affect, impair or invalidate the remaining sentences, clauses, paragraphs or sections contained herein, unless to do so would deprive a Party of a material benefit of its bargain under this Agreement.
IN WITNESS WHEREOF, duly authorized representatives of City and Consultant have signed in confirmation of this Agreement.
CITY OF REDLANDS HINDERLITER, DE LLAMAS & ASSOCIATES
By: ___________________________ By: _________________________ Mario Saucedo, Mayor Andy Nickerson, President
ATTEST:
___________________________
Jeanne Donaldson, City Clerk
Redlands Regular Meeting of 05-20-2025 59 of 1269
7 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 EXHIBIT "A"
SCOPE OF SERVICES
SERVICES – Sales and Use Tax
1. Sales and Use Tax and Economic Analysis/Forecasting Services/Reports a. Establish a special database identifying the name, address, and quarterly allocations of all sales tax producers within the City. This database will be utilized to generate special reports to City on major sales tax producers by rank and category, sales tax activity by categories, or business districts, identification of reporting aberrations, and per capita and outlet comparisons with regional and statewide sales.
b. Provide periodic updated reports to City identifying changes in sales by individual businesses, business groups and categories, and by geographic area. These reports may include, without limitation, quarterly aberrations due to State audits, fund transfers, and receivables, along with late or double payments, and quarterly reconciliation worksheets to assist with budget forecasting. Consultant shall meet quarterly by in person or virtually with City.
c. Shall additionally provide following each calendar quarter a summary analysis for City to share with Council Members, Chamber of Commerce, other economic development interest groups and the public that analyze City’s sales tax trends by major groups and geographic areas without disclosing confidential individual tax records. d. Establish a special database with California Department of Tax and Fee Administration (“CDTFA”) registration data for businesses within applicable district boundaries holding seller’s permit accounts.
e. Periodically license for the limited, non-exclusive, non-transferable use by City’s staff certain of Consultant’s web-based sales, use and/or transactions tax program(s) containing sellers permit, registration, allocation and related information for business outlets within City’s jurisdiction registered with the CDTFA.
f. Provide periodic updated reports endeavoring to identify and assist with budget forecasting (i) changes in allocation totals by individual businesses, business groups and categories, and (ii) aberrations due to State audits, fund transfers, and receivables, along with late or double payments.
2. Allocation and Audit Recovery Services
a. Conduct (when mutually agreed with City) initial and on-going sales and use tax audits of businesses to help identify and correct distribution and allocation errors, and to proactively affect favorable registration, reporting or formula changes thereby generating previously unrealized sales and use tax income for the City and/or recovering misallocated tax from registered taxpayers. Common errors that will be monitored and corrected include but are not limited to: transposition errors resulting in misallocations; erroneous consolidation of multiple outlets; formula errors; misreporting of “point of sale” to the wrong location; delays in reporting new outlets; misallocating use tax payments to the allocation pools or wrong jurisdiction; and erroneous fund transfers and adjustments.
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8 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 b. Initiate contacts with the CDTFA and sales management and accounting officials in companies that have businesses where a probability of error exists to endeavor to help verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a professional and courteous manner. c. Prepare and submit to the CDTFA information for the purpose of correcting any identified allocation errors, and follow-up with individual businesses and the CDTFA to promote recovery by the City of back or prospective quarterly payments that may be owing. d. If, during the course of its audit, Consultant finds businesses located in the City’s jurisdiction that are properly reporting sales and use tax but have the potential for modifying their operation to provide an even greater share to City, Consultant may so advise City and collaborate with those businesses and City to encourage such changes.
SERVICES – Transactions Tax Services
3. Transactions Tax and Economic Analysis/Forecasting Services/Reports a. Consultant shall establish a database containing all applicable Department of Tax and Fee Administration (CDTFA) registration data for each business within the Measure “T” District boundaries holding a seller’s permit account. Said database shall also identify the quarterly transactions and use tax allocations under each account for the most current and previous quarters where available.
b. Consultant shall provide updated reports each quarter identifying changes in allocation totals by individual businesses, business groups and by categories. Quarterly aberrations due to State audits, fund transfers, and receivables, along with late or double payments, will also be identified. Quarterly reconciliation worksheets to assist finance officer with budget forecasting will be included. c. Consultant shall advise and work with CITY Staff on planning and economic questions related to maximizing revenues, preparation of revenue projections and general information on transactions and use tax questions. d. Consultant shall make available to CITY the HdL proprietary software program and Measure “T” database containing all applicable registration and quarterly allocation information for CITY business outlets registered with the Department of Tax and Fee Administration. The database will be updated quarterly.
4. Deficiency/Allocation Reviews and Recovery
a. Consultant shall conduct on-going reviews to identify and correct unreported transactions and tax payments and distribution errors thereby generating previously unrealized revenue for the City. Reviews shall include:
a. (1) Comparison of county-wide local tax allocations to transactions tax for brick and mortar stores and other cash register-based businesses, where clearly all transactions are conducted on-site within the Measure “T” City boundaries, and therefore subject to transactions tax.
a. (2) Review of any significant one-time use tax allocations to ensure that there is Redlands Regular Meeting of 05-20-2025 61 of 1269
9 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 corresponding transaction tax payments for taxpayers with nexus within the City boundaries.
a. (3) Review of state-wide transactions tax allocations and patterns to identify any obvious errors and omissions.
a. (4) Identification and follow-up with any potentially large purchasers of supplies and equipment (e.g. hospitals, universities, manufacturing plants, agricultural operations, refineries) to ensure that their major vendors are properly reporting corresponding transactions tax payments to the Measure “T” Transactions Tax District.
b. Consultant will initiate, where the probability of an error exists, contacts with the appropriate taxpayer management and accounting officials to verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a professional and courteous manner so as to enhance CITY’s relations with the business community.
c. Consultant shall prepare and submit to the Department of Tax and Fee Administration all information necessary to correct any allocation errors and deficiencies that are identified and shall follow-up with the individual businesses and the California Department of Tax and Fee Administration to ensure that all back quarter payments due the CITY are recovered.
5. Consulting and Other Optional Services
a. Consultant may from time to time in its sole discretion, consult with City’s staff, including without limitation, regarding (i) technical questions and other issues related to sales, use and transactions tax, (ii) utilization of reports to enhance business license collection efforts, (iii) sales tax projections for proposed annexations, economic development projects and budget planning, (iv) negotiating/review of tax sharing agreements, (v) establishing purchasing corporations, (vi) meeting with taxpayers to encourage self-assessment of tax obligations, and (vii) other sales, use or transactions tax revenue-related matters.
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10 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 EXHIBIT "B"
FEES
FEES – Sales and Use Tax Services
1. Sales and Use Tax and Economic Analysis/Forecasting Services/Reports a. Fees for performing the sales tax and economic analysis/forecasting Services as described above shall initially be $740.46 per month, commencing with the month of the Effective Date (hereafter referred to as “monthly fee”). The monthly fee shall be invoiced quarterly and shall be paid by City no later than 30 days after the invoice date.
b. Consultant will increase the monthly fee established in Exhibit B,1.a., annually, starting in the calendar year 2026, on July 1st.
This increase will be the lesser of:
i. The percentage increase in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U) for the surrounding statistical urban area for Los Angeles, as reported by the U.S. Bureau of Labor Statistics, or
ii. by an increase of 5%.
If such an index should cease to exist, then the increase in the monthly fee shall be no more than 5%.
2. Allocation and Audit Recovery Services
a. Fees for performing the allocation and audit recovery Services described above shall be 15% of all new, increased and recovered sales and use tax revenue received by the City as a result, in whole or in part, of the allocation audit and recovery services (hereafter referred to as “audit fee”). The fee shall be paid notwithstanding any related City assistance, work in parallel, and/or incurrence of attorneys’ fees or other costs or expenses in connection, with the relevant Services. b. The Fee described above include, without limitation, State fund transfers received for back quarter reallocations and monies received in the second eight (8) consecutive reporting quarters following completion of Consultant’s allocation audit and confirmation of the corrections by the CDTFA. c. These Fees shall be paid by City upon Consultant’s submittal of evidence of Consultant’s relevant Services in support thereof, including, without limitation, copies of relevant communications between Consultant and the CDTFA and/or taxpayers.
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11 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 FEES – Transactions Tax Services
3. Transactions Tax and Economic Analysis/Forecasting Services/Reports a. Fees shall be paid $200 monthly for the transaction district tax reports that we include with the quarterly sales tax analyses. The monthly fee shall be invoiced quarterly and shall be paid by City no later than 30 days after the invoice date. b. Consultant will increase the monthly fee established in Exhibit B,3.a., annually, starting in the calendar year 2026, on July 1st.
This increase will be the lesser of:
i. The percentage increase in the most recently published annual Consumer Price Index for All Urban Consumers (CPI-U) for the surrounding statistical urban area for Los Angeles, as reported by the U.S. Bureau of Labor Statistics, or
ii. by an increase of 5%.
If such an index should cease to exist, then the increase in the monthly fee shall be no more than 5%.
4. Allocation and Audit Recovery Services
a. Fees shall be paid 25% of the initial amount of new transactions or use tax revenue received by the City because of audit and recovery work performed by Consultant, (hereafter referred to as "audit fees"). New revenue shall not include any amounts determined and verified by City or Consultant to be increment attributable to causes other than Consultant’s work pursuant to this agreement. In the event, Consultant is responsible for an increase in the tax reported by businesses already properly making tax payments to the City, it shall be Consultant’s responsibility to separate and support the incremental amount attributable to its efforts prior to the application of the audit fee. Said audit fees will apply to state fund transfers received for those specific quarters identified as being missing and/or deficient following completion of the audit by Consultant and confirmation of corrections by the California Department of Tax and Fee Administration but shall not apply prospectively to any future quarter. Consultant shall provide City with an itemized quarterly invoice showing all formula calculations and amounts due for audit fees.
5. Consulting and Other Optional Services
a. Fees for performing the consulting and other optional Services described above shall be based on the following initial hourly rates: (i) Principal - $325; (ii) Programmer - $295; (iii) Senior Analyst - $245; and (iv) Analyst - $195. b. Consultant may change the rates for its hourly Fees from time to time. A 30 days’ prior written notice to City will be given.
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6. General Provisions Relating to Fees
a. Fees for travel and lodging expenses will be invoiced at cost and applied to all meetings (including implementation, training, operations and support). Travel expenses only apply to out of scope travel and must therefore be pre-approved by City.
b. Fees will be invoiced quarterly to City for Services performed during the prior quarter. To the extent that Consultant has commercially reasonable means to do so, Fees will be netted out of City’s monthly revenue disbursement.
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13 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 EXHIBIT “C"
ADDITIONAL TERMS AND CONDITIONS
1. Confidentiality; Software Use and Warranty; Records
a. Consultant will comply with the requirements of the applicable laws, ordinances and/or regulations of which it has been informed by Client pursuant to Section 5.1 concerning the confidentiality of tax records. Consultant may publicly state that it performs Services for Client.
b. As used herein, the term “proprietary information” means all information, techniques, processes, services or material that has or could have commercial value or other utility for Consultant or in Consultant’s Business, including without limitation, (i) software, computer or data processing programs; (ii) data processing applications, routines, subroutines, techniques or systems; (iii) desktop or webbased software; (iv) audit, tax or fee collection/administration or business processes, methods or routines; (v) marketing plans, analyses and strategies; (vi) materials, techniques and intellectual property used; and (vii) the Software and the Software’s documentation. Except as otherwise required by law, Client must hold in confidence and may not use (except as expressly authorized by this Agreement) or disclose to any other party any proprietary information provided, learned of or obtained by Client in connection with this Agreement. The terms of this Section
6.2 do not apply to information that is public information; provided, however, that proprietary information will not qualify as public information if it became public due to Client’s (or its employees’ or agents’) disclosure. c. If access to any software which Consultant owns is provided to Client as part of the Services under this Agreement (including, without limitation, if Client chooses to subscribe to such software and/or related reports as part of the Services pursuant to a Schedule to this Agreement) (such Consultant-owned software is, collectively, the “Software”), Consultant hereby provides a limited, non-exclusive, nontransferable license to Client (including such of Client’s staff as may be designated from time to time by Client and approved by Consultant in writing) to use the Software pursuant to and during the Term of this Agreement. d. The Software must only be used by such authorized Client staff, and Client must not sublicense, sublet, duplicate, modify, decompile, reverse engineer, disassemble, or attempt to derive the source code of the Software. The license granted hereunder does not imply ownership by Client or any of Client’s staff of the Software nor any rights of Client or any of Client’s staff to sublicense, transfer or sell the Software, or rights to use the Software for the benefit of others. Client may not create (or allow the creation of) any derivative work or product based on or derived from the Software or the Software’s documentation, nor modify (or allow the modification of) the Software or the Software’s documentation without the prior written consent of Consultant. In the event of a breach of this provision (and without limiting Consultant’s remedies), such modification, derivative work or product based on the Redlands Regular Meeting of 05-20-2025 66 of 1269
14 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 Software or the Software’s documentation is hereby deemed assigned to Consultant. Upon termination of this Agreement or this Software license, this Software license will be deemed to have expired and Client must immediately deactivate, cease using and remove, delete and destroy all the Software (including, without limitation, from Client’s computers and network). Consultant warrants that the Software will perform in accordance with the Software’s documentation.
e. Notwithstanding anything to the contrary in this Agreement (including any Schedule hereto), if access to any software which Consultant does not own is provided to Client as part of the Services pursuant to this Agreement (including pursuant to any Schedule hereto), Client hereby agrees (i) to comply with all of the terms and conditions imposed on Client’s access to such software (including, without limitation, by Consultant, such software’s owner, and pursuant to applicable law), and (ii) Consultant has no obligation during the Term of this Agreement or thereafter to provide Client with access to such software. f. All documents, preliminary drafts, communications and any and all other work product related to the Services and provided by Consultant to Client either in hard copy or electronically are the joint property of Client and Consultant. This does not include the Software or any other software, any programs, any methodologies or any systems used in the creation of such work product, nor does it include any drafts, notes or internal communications prepared by Consultant in the course of performing the Services that were not otherwise provided to Client in either hardcopy or electronic form, all of which may be protected by Consultant or third party copyrights or other intellectual property and remain Consultant’s or such third parties’ exclusive property (as the case may be). It is possible that any documents, drafts, communications or other work product provided to Client may be alleged to be public records under applicable law and/or may be discoverable through litigation. Well in advance of when Client may disclose such information in response to any request for public records, Client must notify Consultant in writing about the request and, if Consultant requests it, Client must apply for any potential exemption from disclosure that may exist under applicable law. g. Subject to applicable law, Consultant is responsible for retaining all final documents and other final work product related to the Services for a period of not less than three (3) years from the date provided to Client. Retention of any other documents, preliminary drafts, communications and any and all other work product provided to Client by Consultant is the responsibility of Client. Consultant has no responsibility to retain any drafts, notes, communications, emails or other writings created or received by Client in the course of performing the Services (other than the final documents and other final work product related to the Services and provided to Client for the term of years referenced above).
2. Additional Confidentiality Information
a. Section 7056 of the State of California Revenue and Taxation Code (“R&T Redlands Regular Meeting of 05-20-2025 67 of 1269
15 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 Code”) specifically limits the disclosure of confidential taxpayer information contained in the records of the CDTFA. Section 7056 specifies the conditions under which a city, county or district may authorize persons other than such city, county or district’s officers and employees to examine state sales and use tax records.
b. The following conditions specified in Section 7056-(b)(1) of the State of California R&T Code are hereby made part of this Agreement:
1. Consultant is authorized by this Agreement to examine sales, use or transactions and use tax records of the CDTFA provided to City pursuant to contract under the BradleyBurns Uniform Local Sales and Use Tax Law R&T Code Section 7200 et.seq.
2. Consultant is required to disclose information contained in, or derived from, those sales or transactions and use tax records only to an officer or employee of City who is authorized by City resolution provided to the CDTFA to examine the information.
3. Consultant is prohibited from performing consulting services for a retailer (as defined in R&T Code Section 6015), during the term of this agreement.
4. Consultant is prohibited from retaining the information contained in or derived from those sales, use or transactions and use tax records after this agreement has expired.
Information obtained by examination of the CDTFA records shall be used only for purposes related to collection of local sales and use tax or for other governmental functions of the City as set forth by resolution adopted pursuant to Section 7056 (b) of the Revenue and Taxation Code. The resolution shall designate the Consultant as a person authorized to examine sales and use tax records and certify that this agreement meets the requirements set forth above and in Section 7056 (b), (1) of the Revenue and Taxation Code.
3. Software Use and Proprietary Information
a. Software Use. Consultant hereby provides authorization to City to access Consultant’s Sales Tax website if City chooses to subscribe to the software and reports option. The website shall only be used by authorized City staff. No access will be granted to any third party without explicit written authorization by Consultant. City shall not sublet, duplicate, modify, decompile, reverse engineer, disassemble, or attempt to derive the source code of said software. The software use granted hereunder shall not imply ownership by City of said software, or any right of City to sell said software or the use of same, or any right to use said software for the benefit of others. This software use authorization is not transferable. Upon termination or expiration of this Agreement, the software use authorization shall expire, and all City staff website logins shall be de-activated. b. Proprietary Information. As used herein, the term “proprietary information” means all information or material that has or could have commercial value or other utility in Consultant’s business, including without limitation: Consultant’s (i) computer or data processing programs; (ii) data processing applications, Redlands Regular Meeting of 05-20-2025 68 of 1269
16 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 routines, subroutines, techniques or systems; desktop or web-based software; (iii) business processes; (iv) marketing plans, analysis and strategies; and (v) materials and techniques used; as well as the terms and conditions of this Agreement.
Except as otherwise required by law, City shall hold in confidence and shall not use (except as expressly authorized by this Agreement) or disclose to any other party any proprietary information provided, learned of or obtained by City in connection with this Agreement. The obligations imposed by this Section shall survive any expiration or termination of this Agreement or otherwise. The terms of this Section shall not apply to any information that is public information.
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17 I:\cmo\Agreements\Hinderliter de Llamas & Associates Agreement FY25-0061 v.2.docx-msv.2 EXHIBIT “D”
WORKERS’ COMPENSATION INSURANCE CERTIFICATION
Every employer, except the State, shall secure the payment of compensation in one or more of the following ways:
(a) By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State. (b) By securing from the Director of Industrial Relations, a certificate of consent to self-insure, either as an individual employer, or as one employer in a group of employers, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to his or her employees.
CHECK ONE
_____I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work and activities required or permitted under this Agreement. (Labor Code §1861).
_____I affirm that at all times, in performing the work and activities required or permitted under this Agreement, I shall not employ any person in any manner such that I become subject to the workers’ compensation laws of California. However, at any time, if I employ any person such that I become subject to the workers’ compensation laws of California, immediately I shall provide the City with a certificate of consent to self-insure, or a certification of workers’ compensation insurance.
I certify under penalty of perjury under the laws of the State of California that the information and representations made in this certificate are true and correct.
HINDERLITER, DE LLAMAS &
ASSOCIATES
By: Date: ___________________
Andy Nickerson, President
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City Council/Financing Authority Meeting H. 5.
DATE: 05/20/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the Emergency Medical Services Field Internship Agreement between the City of Redlands and the San Bernardino Community College District (Crafton Hills College), designating the Redlands Fire Department as a Paramedic Clinical Field Internship Training Site for a five-year period, from July 1, 2025, through June 30, 2030 (Fire Chief Sessler)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to approve the Emergency Medical Services Field Internship Agreement between the City of Redlands and the San Bernardino Community College District (Crafton Hills College), designating the Redlands Fire Department as a Paramedic Clinical Field Internship Training Site for a five-year period, from July 1, 2025, through June 30, 2030.
RECOMMENDATION:
Staff recommends that the City Council approve the Emergency Medical Services Field Internship Agreement (Agreement) between the City of Redlands and the San Bernardino Community College District (Crafton Hills College), designating the Redlands Fire Department as a paramedic clinical/field internship training site for a five-year period, from July 1, 2025, through June 30, 2030.
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DISCUSSION:
San Bernardino Community College District (Crafton Hills College) offers approved programs in Emergency Medical Services education, which require students to complete a field internship component. Specifically, paramedic students must complete 720 hours of training under the supervision of a licensed paramedic to meet graduation and initial licensing requirements. The City of Redlands Fire Department has the appropriate facilities and services to support these field internship requirements. Recognizing the mutual benefit to both students and the community, the City of Redlands and Crafton Hills College have maintained a longstanding partnership to support Emergency Medical Services education.
This Agreement designates the Redlands Fire Department as a Paramedic Clinical Field Internship Training Site for a five-year term, from July 1, 2025, through June 30, 2030. Under the terms of the agreement, the Redlands Fire Department will designate a staff member to serve as the Education Coordinator for EMS-related educational use of department facilities and services, including joint planning efforts with representatives of all involved medical services programs. The Fire Department will also provide faculty and students of the District with access to parking, first aid treatment (with appropriate written consent), and educational materials such as procedure guides and policy manuals, in accordance with all applicable rules and regulations. Crafton Hills College will, in turn, provide qualified and licensed healthcare practitioners to serve as instructors for all academic areas and will develop mutually agreed-upon field internship instruction plans to utilize the Fire Department's facilities in support of the educational goals of its Emergency Medical Services curriculum.
The proposed Agreement will allow the City to continue its ongoing support of EMS education and training in partnership with the community college district.
ALTERNATIVES:
The City Council may choose not to approve the Emergency Medical Services Field Internship Agreement and may instead provide alternative direction to staff.
STRATEGIC PLAN:
Priority B - Public Health & Safety
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SUBMITTED BY:
Rich Sessler, Fire Chief
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:
Kristina Rivas, Senior Administrative Assistant
Fiscal Impact
Discussion:
There is no fiscal impact associated with the renewal of the Emergency Medical Services Field Internship Agreement with San Bernardino Community College District (Crafton Hills College). The agreement provides a mutual benefit by supporting student training while enhancing the City’s role in fostering future emergency medical service professionals.
Attachments
EMS Field Externship/Clinical Site Agreement
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AGREEMENT
EMERGENCY MEDICAL SERVICES
FIELD EXTERNSHIP/CLINICAL SITE
THIS AGREEMENT for Emergency Medical Services Field Externship/Clinical Site is made and entered into this 20th day of May 2025 by and between the City of Redlands, a municipal corporation (“CITY”) hereinafter called the CITY and the San Bernardino Community College District by and on behalf of the Crafton Hills College (hereinafter called the “District” or the “College”).
PART I BASIS AND PURPOSE OF AGREEMENT
WITNESSETH:
WHEREAS, the District and CITY acknowledge a public obligation to contribute to Emergency Medical Services education for the benefit of students and to meet community needs; and
WHEREAS, the District provides approved programs in Emergency Medical Services education which require field externship experience/clinical sites for students enrolled in these programs; and
WHEREAS, the CITY has facilities suitable for the field externship/clinical site needs of the District’s programs in Emergency Medical Services; and WHEREAS, it is to the benefit of both District and CITY that Emergency Medical Services students have opportunities for externship/clinical site experience to enhance their capabilities as practitioners.
NOW, THEREFORE, the District and CITY do covenant and agree as follows:
PART II GENERAL RESPONSIBILITIES AND PRIVILEGES OF THE
DISTRICT
A. General Responsibilities of the District
1. The College is committed to the achievement of equal educational opportunity. Decisions related to admission, participation, student's employment, and financing will not be influenced by race, religion, sex, age, disability, or national origin.
2. The District assumes full responsibility for offering Emergency Medical Services education programs eligible for accreditation by any appropriate State Board or CITY.
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3. District faculty members may be invited by CITY to serve as voluntary resource persons to the CITY staff by serving on Emergency Medical Services committees, by sharing knowledge as field experts, and by participation in other matters dealing with the quality of patient care.
4. The District agrees to provide liability insurance for District employees, faculty members and students while participating in activities relating to the instructional program.
5. District shall procure and maintain for the duration of the Agreement the following insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of this Agreement by the District, their students, their agents, representatives, employees or subcontractors.
I. Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (“Occurrence” forms CGOOOL Ed. 11/85).
2. Workers compensation Insurance as required by the Labor Code of the State of California and Employer’s Liability Insurance.
3. Professional liability insurance as indicated below.
II. Minimum Limits of Insurance
District shall maintain limits no less than:
(a) General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. The general aggregate limit shall apply separately to this project/location or the general aggregate shall be twice the required occurrence limit.
Higher limits may be required by the CITY if, in the opinion of the CITY staff or its advisors, the exposure of the work to be performed warrants such.
(b) Workers’ Compensation and Employers Liability: Workers’ Compensation limits as required by the Labor Code of the State of California.
III. Deductible and Self-Insurance Retentions
Any deductible or self-insured retention must be
declared to and approved by the CITY.
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IV. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
(a) General Liability Coverage
The CITY, its officers, employees, and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the District; products and completed operation of the District premises owned, occupied or used by the District. The coverage shall contain no special limitation on the scope of the protection afforded to the City, its officers, officials, employees or volunteers.
(b) The District’s insurance coverage shall be primary insurance as respects the CITY, its officers, officials, employees and volunteers.
Any insurance or self-insurance maintained by the CITY, its officers, officials, employees or volunteers shall be excess of the District’s insurance and shall not contribute to it.
(c)With respect to the obligations under this Agreement, insurance shall insure as an additional insured CITY and its officers, officials, employees, agents and volunteers from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees for litigation) arising out of or in connection with the District’s performance of this Agreement hereunder, except such loss or damage which was caused by the sole negligence or willful misconduct of the City, its officers, employees and volunteers. (d) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the CITY, its officers, officials, employees or volunteers.
(e) The District’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.
6. All Coverages
Each insurance policy required by this provision shall be endorsed to state that coverage shall not be suspended, voided, cancelled by either party, reduced in coverage or in limits except after thirty Redlands Regular Meeting of 05-20-2025 76 of 1269
(30) days prior written notice by certified mail, return receipt requested, has been given to the CITY.
7. Verification of Coverage
District shall furnish the CITY with certificates of insurance and with original endorsements effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf with the original provided to the CITY. All certificates and endorsements are to be received and approved by the CITY before work commences. The CITY reserves the right to require complete, certified copies of all required insurance policies at any time.
8. Professional Liability (errors and omissions) coverage in the amount of $1,000,000 per claim made/$2,000,000 aggregate for Emergency Medical Services students is, and throughout the term of the Agreement will be carried by the District for all students participating in the program.
B. For Program Planning
1. District will initiate the development of mutually acceptable field externship/clinical instruction plans for using the CITY's field externship/clinical areas to meet the educational goals of the Emergency Medical Services curricula. These plans will be made available to the CITY at a mutually agreed upon time and subject to revision in instances of conflict with hospital patient care responsibilities or District interests.
C. For Field Externship/Clinical Instructors
1. District will provide faculty members who are both qualified and competent teachers and licensed health care practitioners for all academic areas.
2. District faculty will be responsible for learning and observing the regulations of both District and CITY.
D. For Emergency Medical Services
1. District faculty shall be responsible for instructing in regard to patient and institution confidentiality.
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2. District faculty will ensure the CITY that all immunization and background requirements have been met.
3. Emergency Medical Services students shall have the status of students and shall not be considered to be CITY employees, nor shall they replace CITY staff. Field externship/clinical experience will be conducted as a laboratory learning experience.
4. Emergency Medical Services students are subject to the authority, policies, and regulations of the District.
5. District will be responsible for assuring that the Emergency Medical Services students assigned to the CITY facilities and vehicles for field externship instruction comply with all applicable provisions of this Agreement and meet District academic and field
externship/clinical standards and rules and regulations of conduct.
PART III GENERAL RESPONSIBILITIES AND PRIVILEGES OF THE CITY A. General Responsibilities of CITY
1. CITY will maintain the standards which make it eligible for approval as a field externship area for instruction in Emergency Medical Services programs.
2. CITY will permit the faculty and students of the District to use its facilities, provided they comply with all applicable rules and regulations of the CITY.
B. Facilities
1. CITY will permit use of the following facilities by District Emergency Medical Services students and faculty at such times and to the degrees determined by CITY in CITY’s sole discretion:
a. Parking areas,
b. First aid treatment provided appropriate written consent is given,
c. Access to sources of information for educational purposes, such as:
1. Kardex files;
2. Procedure guides, policy manuals;
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3. Medical dictionaries, pharmacology references, and
other references suitable to the clinical/field
externship area;
4. Books and periodicals in the Medical Library.
C. For Control of District Personnel
1. CITY may without notice or hearing refuse access to its vehicles and facilities to Emergency Medical Services students or District faculty who do not meet its standards for safety, health, cooperation, or ethical behavior or any other applicable rules and regulations. An investigation and resolution of any dispute arising from this provision by the CITY and the District shall take place within sixty (60) days thereafter.
PART IV JOINT RESPONSIBILITIES AND PRIVILEGES
A. For Publications
1. Publication by District faculty or CITY staff members of any material relative to field externship program or experience that has not been approved for release by the District and CITY is prohibited.
B. Assurance of Non-Discrimination
2. The District and the CITY, in compliance with Title VI of the Civil Rights Act of 1964, Title IX of the Educational Amendments of 1972, and Section 505 of the Rehabilitation Act of 1973, do not discriminate on the basis of race, color, national origin, religion, sex, age, or handicap in any policies, procedures, or practices.
C. Indemnification
1. District shall indemnify, defend, and hold harmless the CITY and its officers, officials, employees, and agents from and against any and all liability, loss, damage, expense, costs (including without limitation costs and fees of litigation) of every nature arising out of or in connection with District’s performance of work hereunder or its failure to comply with any of its obligations contained in the agreement, except to the extent that such loss or damage which was caused by the sole negligence or willful misconduct of the CITY.
2. CITY shall indemnify, defend, and hold harmless the District and its officers, officials, employees, and agents from and against any and all liability, loss, damage, expense, costs (including without limitation Redlands Regular Meeting of 05-20-2025 79 of 1269
costs and fees of litigation) of every nature arising out of or in connection with CITY’s performance work hereunder or its failure to comply with any of its obligations contained in the agreement, except to the extent that such loss or damage which was caused by the sole negligence or willful misconduct of the District.
D. This agreement represents the entire integrated agreement between the parties as to its subject. No other representations, agreements, amendments or promises regarding the subject matter of this agreement, whether written or oral, shall be effective for any purpose unless mode in writing and officially approved by each party. The existing agreement between the parties, is superseded by this agreement.
PART V PERIOD OF AGREEMENT
A. This agreement shall be effective as of the July 1, 2025, and shall continue in effect until June 30, 2030 or terminated by written notice of either party.
This Agreement may be terminated by either party by written notice and may be terminated at any time pursuant to the following:
1. Upon written mutual consent by the District and the CITY, or
2. In the event of any uncured default of any provision in this Agreement following the expiration of 30-day prior written default notice by the non-defaulting party to the defaulting party.
IN WITNESS WHEREOF, the parties by their duly authorized representatives have executed this Agreement as of the last date written below.
APPROVED BY THE CITY APPROVED BY THE DISTRICT
City of Redlands San Bernardino Community College District Mario Saucedo, Mayor Steven J. Sutorus, Executive Director, Business & Fiscal Services
Date Date
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ATTEST:
Jeanne Donaldson, City Clerk
CITY CONTACT
Name
Title
Address
Phone
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City Council/Financing Authority Meeting H. 6.
DATE: 05/20/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Adopt Resolution No. 8691 establishing the policy for reporting on Staff Vacancies and the City’s Recruitment and Retention Efforts to comply with Government Code Section 3502.3 and Assembly Bill 2561 (Human Resources/Risk Management Director Meteau)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to adopt Resolution No. 8691.
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 8691, establishing the policy for reporting on Staff Vacancies and the City’s Recruitment and Retention Efforts to comply with Government Code Section 3502.3 and Assembly Bill 2561
DISCUSSION:
In September 2024, Assembly Bill (AB) 2561 was signed into law, adding Government Code Section 3502.3. This legislation requires public agencies to present the status of workforce vacancies and their recruitment and retention efforts at a public hearing held at least once per fiscal year. The law also provides that recognized employee organizations must be given the opportunity to make a presentation at the hearing, supporting greater transparency and labor engagement in addressing staffing challenges.
The policy entitled “Reporting on Staff Vacancies and the City’s Recruitment and Retention Efforts”, establishes the framework and procedures for presenting workforce vacancy data to the City Council, in compliance with Government Code Section 3502.3 (AB 2561). The policy defines the specific roles and Redlands Regular Meeting of 05-20-2025 82 of 1269
Code Section 3502.3 (AB 2561). The policy defines the specific roles and responsibilities of both the City and its recognized employee organizations and outlines procedural requirements to ensure a transparent and orderly process, including:
Advance Notice: Recognized employee organizations will receive timely notification prior to the City Council meeting where the vacancy data will be presented.
1. Right to Present: Employee organizations may request to make a presentation or offer public comment in response to the vacancy report, consistent with the City’s existing public meeting procedures.
2. Presentation Format and Time Limits: The policy defines an orderly format and reasonable time allocations for presentations by City staff and labor representatives to ensure efficient use of meeting time while allowing for meaningful participation.
3. This policy is intended to enhance public transparency, promote effective communication between the City and its recognized employee organizations, and support a collaborative approach to addressing recruitment and retention challenges. The City may update or revise the policy in the future to reflect changes in applicable law, evolving labor relations practices, or organizational needs.
ALTERNATIVES:
N/A
STRATEGIC PLAN:
N/A
SUBMITTED BY:
Robert Meteau Jr., Human Resources/Risk Management 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
Redlands Regular Meeting of 05-20-2025 83 of 1269
PREPARED BY:
Kisha McDonald, Human Resources Manager
Fiscal Impact
Discussion:
N/A
Attachments
Resolution No. 8691
Exhibit A, Policy (AB2561)
Redlands Regular Meeting of 05-20-2025 84 of 1269
1 I:\cmo\Resolutions\8691 Adopting Policy to Comply Gov Code 3502.3.docx-ms RESOLUTION NO. 8691
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
ADOPTING A POLICY TO COMPLY WITH GOVERNMENT CODE
SECTION 3502.3 RELATED TO THE PUBLICATION OF VACANCIES IN
CITY POSITIONS AND THE HOLDING OF AN ANNUAL PUBLIC
HEARING RELATED THERETO
WHEREAS, Government Code 3502.3 (California Assembly Bill 2561) requires public agencies to hold at least one (1) public hearing per fiscal year to discuss vacancies in City positions and the recruitment and retention efforts of the City to maintain filled positions to carry out services to the Redlands community; and WHEREAS, Government Code 3502.3 contains specific requirements to be shared at the public hearing which includes the vacancies of each bargaining unit, the City’s recruitment and retention efforts, and any concerns with the City’s policies, procedures, and recruitment activities which may pose an obstacle in the hiring process; and
WHEREAS, Government Code Section 3502.3 allows recognized employee organizations to make a presentation during the public hearing if the organizations so elect and additional requirements when the vacancy rate in a bargaining unit is at least 20% of the total number of authorized full-time positions; WHEREAS, the purpose of the policy is to provide guidance in this annual process to ensure that the public hearing is fair, orderly and efficient process.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS;
Section 1. That the City Council hereby adopts the policy entitled, “Reporting on Staff Vacancies and the City’s Recruitment and Retention Efforts” attached hereto as Exhibit “A” in compliance with Government Code Section 3502.3.
Section 2. This Resolution shall take effect immediately upon its adoption.
ADOPTED, SIGNED AND APPROVED this 20th day of May 2025. ________________________
Mario Saucedo, Mayor
ATTEST:
____________________________
Jeanne Donaldson, City Clerk
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2 I:\cmo\Resolutions\8691 Adopting Policy to Comply Gov Code 3502.3.docx-ms I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certify that the foregoing Resolution was duly adopted by the City Council at a regular meeting thereof, held on the 3 rd day of June, 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
__________________________________
Jeanne Donaldson, City Clerk
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3 I:\cmo\Resolutions\8691 Adopting Policy to Comply Gov Code 3502.3.docx-ms EXHIBIT “A”
POLICY ON REPORTING ON STAFF VACANCIES,
AND THE CITY’S RECRUITMENT AND RETENTION EFFORTS
[Attached]
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Administrative
Policy XX
Approved by City Council 05/20/2025
1 REPORTING ON STAFF VACANCIES,
AND THE CITY’S RECRUITMENT AND RETENTION EFFORTS
PURPOSE
This policy establishes the framework and requirements for holding public hearings and reporting on the City of Redlands workforce vacancies, recruitment, and retention efforts in compliance with Assembly Bill (“AB”) 2561. (Gov. Code § 3502.3.) Effective January 1, 2025, Government Code Section 3502.3 requires City of Redlands to present information on the status of staff vacancies of each bargaining unit and the City’s recruitment and retention efforts at a public hearing before the City Council of the City of Redlands at least once per fiscal year.
DEFINITIONS
A. Public Hearing: A formal meeting that is open to the public, where City of Redlands representatives present information and accept public comments on specific topics, as required by law.
B. Vacancies: Unfilled positions within the City of Redlands workforce that require recruitment efforts to be adequately staffed.
C. Recruitment: The process of attracting, screening, and selecting qualified candidates for employment with the City of Redlands.
D. Retention: Efforts to maintain a stable and satisfied workforce by addressing the factors that contribute to stability in the workforce.
PROCEDURE
Policy Statement
In accordance with AB 2561 (Gov. Code § 3502.3), the City of Redlands is committed to holding a public hearing on vacancies, recruitment, and retention efforts and any issues with the City of Redlands policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.
The City of Redlands will hold a public hearing at least once each fiscal year and provide reports on vacancies, recruitment, and retention efforts.
POLICY PROVISIONS:
Public Hearing Requirements
A. The City of Redlands shall conduct public hearings at least on an annual basis (once each fiscal year) to present information on vacancies, recruitment and retention efforts and issues Redlands Regular Meeting of 05-20-2025 88 of 1269
Administrative
Policy XX
Approved by City Council 05/20/2025
2 with the policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.
B. Public hearings shall be announced in advance and provide an opportunity for members of the public to make comments.
C. Recognized employee organizations shall have the right to present information, concerns, and recommendations at the public hearing.
a. In the notice, the City will inquire whether the employee organization intends to make a presentation to the City Council at the public hearing. The City will request that, for planning purposes, the employee organization provides written notice to the Human Resources Department at least ten (10) working days in advance of the public hearing indicating whether the employee organization intends to make a presentation at the public hearing.
b. The notice will also inform the employee organization for each bargaining unit they will be allotted ten (10) minutes for their presentation at the public hearing. c. Notice of the hearing to the public will be provided in accordance with the Ralph M.
Brown Act. (Gov. Code §§ 54950-54963.)
D. Separate public hearings may be scheduled to address individual bargaining units or bargaining unit groupings.
E. The City Clerk shall ensure that each public hearing is adequately documented, with minutes and recordings made publicly available.
1. REPORTING REQUIREMENTS
The City of Redlands shall present information on the following at the public hearing:
A. The status of vacancies at the City of Redlands
B. Information on the City of Redlands recruitment and retention efforts.
C. Identification of any obstacles in the City of Redlands policies, procedures, and recruitment activities that may create challenges in the hiring process.
2. SPECIAL REPORTING REQUIREMENTS FOR HIGH VACANCY RATES If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the City of Redlands shall, upon request of the recognized employee organization, include the following information during the public hearing:
A. The total number of job vacancies within the bargaining unit.
B. The total number of applicants for vacant positions within the bargaining unit.
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Administrative
Policy XX
Approved by City Council 05/20/2025
3 C. The average number of days to complete the hiring process from when a position is posted.
D. Opportunities to improve compensation and other working conditions.
3. MONITORING AND REVIEW
The Director of Human Resources/Risk Management or designee may review the effectiveness of this policy and make revisions as necessary to ensure ongoing compliance with Gov. Code § 3502.3 (AB 2561) and alignment with best practices in public transparency.
4. COMPLIANCE AND ENFORCEMENT
The City of Redlands will maintain records of all public hearings, reports, and related documents in compliance with public records requirements.
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City Council/Financing Authority Meeting H. 7.
DATE: 05/20/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Approve an Event Services Agreement with the University of Redlands to conduct the Redlands Emergency Services Academy at the University's facility, and determine that approval of the agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act (Police Chief Tolber) MOTION(S):
If City Council determines that staff's recommendation is appropriate, the following motions are provided:
I move to determine that approval of the agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; and
1. I move to approve the Event Services Agreement with the University of Redlands.
2. RECOMMENDATION:
Staff recommends that the City Council approve the Event Services Agreement between with the University of Redlands for services relating to the Redlands Emergency Services Academy beginning Wednesday, July 09, 2025, through Wednesday, July 16, 2025, and determine that approval of the agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act.
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DISCUSSION:
The Redlands Emergency Services Academy (RESA) is a partnership with the Redlands Police Department, Redlands Fire Department, Crafton Hills College, and the University of Redlands to provide graduating high school students with a rigorous, hands-on introduction to public safety careers. The week-long academy gives local students interested in careers in emergency services an opportunity to learn from Redlands police officers and firefighters. Many participants have gone on to careers in both fields. For over twenty-five years, the University of Redlands has provided RESA with the use of their facilities to include housing, meeting rooms, and meals. The agreement incorporates costs associated with RESA program activities that take place on the campus. A portion of these costs are underwritten by the University of Redlands. The remaining costs will be funded through donations from the community and local organizations. Currently, RESA has applied for several donations, including a $30,000 grant from Yuhaaviatam of San Manuel Nation, a $20,000 grant from Stater Brothers, a $12,000 grant from Tom Bell, a $500 donation from Redlands Police Officers' Association, and a $500.00 donation from Redlands Professional Firefighters' Association. The total cost for the University of Redlands, including sleeping rooms, facility rentals and meals is $52,433.64.
The University of Redlands and Harvest Table have agreed to underwrite (donate) $44,500.00 for sleeping rooms, meals, and facility rentals. This leaves RESA responsible for $7,933.64 to cover fees, meals and service. This amount is covered by the grants/donations, leaving no fiscal impact on the General Fund.
ALTERNATIVES:
Do not authorize the agreement between the City of Redlands and the University of Redlands.
STRATEGIC PLAN:
Not applicable.
SUBMITTED BY:
Rachel Tolber, Police Chief
RECOMMENDED BY:
Charles M. Duggan, Jr., City Manager
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REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
PREPARED BY:
Sergeant Dominick Povero, Police Department
Fiscal Impact
Fiscal Year: FY 2025-26
Appropriation Required Y/N: No
Budgeted Y/N: No
Discussion:
Attachments
RESA 2025 Event Services Agreement
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(909) 748-8116
[email protected]
www.redlands.edu/event-services
Redlands, CA 92373
PO Box 3080
1200 East Colton Avenue
Organization: City of Redlands University of Redlands Event Services Client Contact: Povero, Dominick
1270 W. Park Avenue
Redlands CA 92373
Address:
Phone: (909) 557-6928
Email: [email protected]
EVENT SERVICES AGREEMENT
This is an agreement by and between the University of Redlands, a California nonprofit educational corporation with multiple campuses in California (the “University”) and City of Redlands , a municipal coporation and general law city, herein (the “User”). Essentially, the User is agreeing to rent space from, and utilize the services of, the University on the terms and conditions specified in this agreement (the
“Agreement”).
Agreement Issue Date: March 09, 2025
Agreement Expiration Date: April 16, 2025
To give the User time to review, consider, and finalize this Agreement, the University will reserve the event dates and event spaces that are the subject of this Agreement until the Agreement Expiration Date as a courtesy to the User. If the User has not returned the completed/executed Agreement, together with any required deposits and documents, the User understands that the University may release, and not hold, the dates and space.
Subject of this Agreement: RESA25 - Housing - 2025-ABPWMQ
RESERVATIONS
Wednesday, July 09, 2025
12:01 AM - 11:59 PM
Grossmont Hall (120)
07:00 AM - 08:30 AM
05:00 PM - 06:30 PM Expected Attendance:40
Dinner at The Table
Thursday, July 10, 2025
12:01 AM - 11:59 PM
Grossmont Hall (120)
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RESA25 - Housing - 2025-ABPWMQ
Thursday, July 10, 2025
07:00 AM - 08:30 AM Expected Attendance:40
Breakfast at The Table
05:00 PM - 06:30 PM Expected Attendance:40
Dinner at The Table
Friday, July 11, 2025
12:01 AM - 11:59 PM
Grossmont Hall (120)
07:00 AM - 08:30 AM Expected Attendance:40
Breakfast at The Table
05:00 PM - 06:30 PM Expected Attendance:40
Dinner at The Table
Saturday, July 12, 2025
12:01 AM - 11:59 PM
Grossmont Hall (120)
07:00 AM - 08:30 AM Expected Attendance:40
Breakfast at The Table
05:00 PM - 06:30 PM
Sunday, July 13, 2025
12:01 AM - 11:59 PM
Grossmont Hall (120)
07:00 AM - 08:30 AM Expected Attendance:40
Breakfast at The Table
05:00 PM - 06:30 PM Expected Attendance:40
Dinner at The Table
Monday, July 14, 2025
12:01 AM - 11:59 PM
Grossmont Hall (120)
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RESA25 - Housing - 2025-ABPWMQ
Monday, July 14, 2025
07:00 AM - 08:30 AM Expected Attendance:40
Breakfast at The Table
05:00 PM - 06:30 PM Expected Attendance:40
Dinner at The Table
Tuesday, July 15, 2025
12:01 AM - 11:59 PM
Grossmont Hall (120)
07:00 AM - 08:30 AM Expected Attendance:40
Breakfast at The Table
05:00 PM - 06:30 PM Expected Attendance:40
Dinner at The Table
08:00 PM - 11:00 PM
Orton Center
Wednesday, July 16, 2025
12:01 AM - 11:59 PM
Grossmont Hall (120)
07:00 AM - 08:30 AM Expected Attendance:40
Breakfast at The Table
05:00 PM - 06:30 PM
05:00 PM - 09:00 PM
Orton Center
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RESA25 - Housing - 2025-ABPWMQ
FINANCIALS
List Price Adjustment Sub Total for Jul 09 2025
Standard Breakfast ($11.80 Plus tax)7/1 $2,832.00 $3,079.80 $3,079.80
List Price Adjustment Sub Total for Jul 09 2025
Standard Dinner ($14.44 plus tax) 7/1 $3,465.60 $3,768.84 $3,768.84
List Price Adjustment Sub Total for Jul 16 2025
Orton Center $3,500.00 (100%) Concession $.00
AV – Conference AV Base Package $100.00 (100%) Concession $.00 $.00
List Price Adjustment Sub Total for Jul 09 2025
Grossmont Hall (120) $37,800.00 (100%) Concession $.00
Conference - Service Fee $1,085.00 $155 x 7 days $1,085.00 $1,085.00
List Price Adjustment Sub Total for Jul 15 2025
Orton Center $3,000.00 (100%) Concession $.00
AV – Conference AV Base Package $100.00 (100%) Concession $.00 $.00
Additional services and/or equipment may result in fees not outlined in the financials above, such as audio visual or rentals .
Minimum Revenue Requirement : (80%) $6,346.91
Non-Refundable Reservation Deposit (25%): $1,983.41
TOTAL MINIMUM INITIAL PROJECTED AMOUNT: $7,933.64
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RESA25 - Housing - 2025-ABPWMQ
C. Rooming List
twenty-one (21) days prior to the first day of guest arrival.
Check-in and check-out times and locations must be arranged and approved by Event Services no less than B. Check-In and Check-Out
communicate any such changes to the User in a timely manner. becomes necessary, the University will provide comparable residence hall/apartment space and will change specific residence hall/apartment assignments as necessary for University business. If a change Although it is rare, and the University seeks to avoid any changes, the University reserves the right to A. Specific Residence Hall/Apartments
.apply
When residence halls and/or apartments are included in a reservation, the following terms and conditions will III. HOUSING
twenty-one (21) days prior to the first day of guest arrival can not be guaranteed. needs of your entire group with the venues that are available. Any accommodation requests submitted less than days prior to the first day of guests arrival. Strong pre-planning will allow us to create a program that meets the accommodation specifications for attendees with special needs (including housing) no less than twenty-one (21) for all individuals, it is imperative that the User submit to Event Services a written request specifying the advent of modern building codes and accessibility standards. To provide access or reasonable accommodation varying degrees on our campus. Despite our efforts to be inclusive, some buildings were built prior to the The University of Redlands strives to be inclusive of all individuals with disabilities and/or limited mobility of the alternate location.
circumstances. In the event a function is moved, the University agrees to provide directions and assistance on due to inclement weather (including excessive heat and/or poor air quality), construction, or other unforeseen make the final decision concerning the suitability of holding a function outdoors or relocating to an indoor space Although collaboration between the University and the User is expected, the University reserves the right to communicate any such changes to the User in a timely manner. will move the event/function to a comparable and adequate venue on the University campus and will specific venue assignments as necessary for University business. If a change becomes necessary, the University Although it is rare, and the University seeks to avoid any changes, the University reserves the right to change first day of guest arrival can not be guaranteed.
the first day of guest arrival. Any set-up specifications submitted less than twenty-one (21) days prior to the request specifying the room set-up specifications and/or diagrams no less than twenty-one (21) days prior to If the User wants the venue(s) set up in a particular way, the User must submit to Event Services a written additional costs, including audio visual equipment and/or services. from the University’s inventory and located in the venue. Other equipment and services may be arranged with only (a) use of the reserved venue during the reserved days/times and (b) existing tables and chairs available The University has venues that may be available for rental throughout the year. Fees for venue rentals include II. VENUE(S)
initial projected amount specified in the Agreement.
the University has received a non-refundable reservation deposit in the amount of 25% of the total minimum A reservation becomes effective after (a) the Agreement is signed by both the University and the User and (b) issued.
If the University is able to accommodate the additional reservations an addendum to this Agreement will be adjustment. Requests for additional reservations are not guaranteed, but will be accommodated when possible. plans, equipment, or services be requested, the User must submit to the University a written request for the cleanup, including any time needed by User’s external vendors. Should additional venues, housing, food service Agreement. User’s reservation must include the time needed for pre-event preparations and post-event The University will reserve the venue(s), housing, food service plans, equipment, and services as outlined in this I. RESERVATION
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RESA25 - Housing - 2025-ABPWMQ
be outlined when linens are ordered, not when Agreement is signed. days prior to the first day of guest arrival and cannot be added after this date. Final pricing per pillow will Pillows are available to rent, per seven (7) day period. Pillows must be ordered no less than fourteen (14) J. Pillows
outlined when linens are ordered, not when Agreement is signed. prior to the first day of guest arrival and cannot be added after this date. Final pricing per packet will be pillowcase, blanket, bath towel, and wash cloth. Linens must be ordered no less than fourteen (14) days Linens are available to rent, per seven (7) day period. Each linen packet includes a pillow, two sheets, I. Linens
All calls for assistance should be made to Public Safety at 909-748-8888.
Any questions or services required after hours will be handled by the University’s Public Safety Department.
H. After Hours
living environment.
operated so as not to disturb. This is to be observed by all guests to ensure a peaceful and comfortable Quiet hours are 11:00 PM-07:00 AM. Radios, televisions, stereos, and other such equipment must be G. Quiet Hours
includes vendors contracted by the University.
repair, emergency, or compliance with University policies without prior notification to the User. This circumstances shall the University enter housing for any reason other than health, safety, maintenance and inspection, for repair, or in any situation deemed by the University to be an emergency. Under no inspect the premises for the purposes of maintaining health and safety, for reasonable maintenance The University reserves the right to enter any housing provided to the User pursuant to this Agreement to F. Right of Entry
Onsite staff members are trained mandated reporters and have undergone a background check.
Be advised the User may be placed in housing that has a student affairs professionals living in residence.
E. Notice of Onsite Staff
residence hall or apartment.
plans provided by the University. Under no circumstances may attendees sleep on the floor of any more than the number of persons per established sleeping room, unless otherwise designated on floor To meet fire codes and ensure personal safety, room capacities in the residence halls shall be limited to no D. Safety Requirements
it is due to guest behavior.
comparable room. The User will not be charged for any room assignment initiated by the University unless The University may, in its sole discretion, reassign any guest within the residence halls/apartments to a All rooming lists must be legible and include participants’ first and last names. reported to Event Services.
changes are handled by the User’s conference registrar, event planner, or representative and must be The University will provide hall charts and diagrams for the User to make room assignments. Room and room assignment.
prior to the first day of guest arrival. The FINAL rooming list must include: each guest’s first and last names A FINAL rooming list of all guests must be submitted to Event Services no less than fourteen (14) days Redlands Regular Meeting of 05-20-2025 99 of 1269
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RESA25 - Housing - 2025-ABPWMQ
The possession or consumption of alcoholic beverages by anyone under the age of twenty-one (21) is G. Alcoholic Beverages
guaranteed numbers given for either meal cards or catered events.
The Table and which meals will be a Harvest Table catered event. User accepts all responsibility for It is the responsibility of the User to notify the University as to which standard meals will be provided at involved in catering arrangements and does not accept responsibility for catering.
Harvest Table no less then twenty-one (21) days prior to the first day of guest arrival. The University is not Catering arrangements, including any financial obligations, must be made directly between the User and F. Catering
guest arrival.
directly between the User and Harvest Table no less than twenty-one (21) days prior to the first day of If additional water stations are needed, arrangements, including any financial obligations, must be made A complementary water station, including to-go cups, will be available daily outside of the Irvine Commons. .E Water Stations
guest arrival.
guaranteed. Changes to guest counts cannot be made less than three (3) days prior to the first day of Harvest Table up to seven (7) days prior to the first day of guest arrival, but adjustments are not Should the User’s numbers increase after the FINAL GUARANTEE has been given, requests can be made to meal plan or additional meal events that change the number of guests using their standard meal plan. received for any reason including, but not limited to, guests who do not show up and use their standard plan configurations. Numbers for standard meal plans may not be reduced once the FINAL GUARANTEE is days prior to the first day of guest arrival. User can have no more than three (3) different standard meal User must submit a FINAL GUARANTEE for standard meal plans to Harvest Table no less than fourteen (14) D. Final Guarantee for Standard Meal Plans
notified immediately a and replacement fee will be incurred for each new pass.
Meal passes will be supplied by the University to the User. If a meal pass is lost, Event Services must be along with other potential users or diners eating during User’s stay. there will be a surcharge on each meal. A surcharge will be determined based on User guest numbers, Harvest Table needs a guarantee of fifty (50) guests to open The Table. If User is below fifty (50) guests to the first day of guest arrival.
to-go options are needed, arrangements must be made with Harvest Table no less than ten (10) days prior (“The Table”). Meals at The Table are All-You-Care-To-Eat and must be consumed on the premises. If Prices specified in the Agreement reflect the standard meal plans at The Table in The Irvine Commons C. Standard Meal Plans
(21) days prior to the first day of guest arrival.
User must submit FINAL MEAL TIMES for standard meal plans to Harvest Table no less then twenty-one Breakfast 07:00 AM- 08:30 AM, Lunch 11:30 AM- 01:00 PM, and Dinner 05:00 PM- 06:30 PM B. Regular Summer Dining Hours at The Table
on the Redlands campus without prior written approval from Harvest Table and Event Services. and beverage services on the University’s Redlands campus. No external food or beverages may be brought The University has an exclusive contract with Harvest Table Culinary Group (“Harvest Table”) for all food A. Exclusive Provider
When food service plans are included in a reservation, the following terms and conditions will apply.
IV. FOOD SERVICE PLANS
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Payment may be made by check, credit card or wire.
C. Payment
billable amount for all events.
The User understands and agrees that the University adds a service fee of five percent (5%) to the final B. Service Fee
plus Additional Charges as outlined below.
3. The actual number of guests, venues, housing, and food service plans if higher than final guarantees, than actual numbers, plus Additional Charges as outlined below. standard meal plans (submitted twenty-one (21) days prior to the first day of guest arrival) if greater (submitted fourteen (14) days prior to the first day of guest arrival), and the final guarantee for twenty-one (21) days prior to the first day of guest arrival), the final rooming list of all guests
2. The final requested room set-up specifications and/or diagrams of all needed venues (submitted circumstances with the User be charged less the Minimum Revenue Requirement.
1. The Minimum Revenue Requirement, plus Additional Charges as outlined below. Under no criteria detailed below, and will be whichever is greatest of the following:
actual number of guests or spaces and equipment used. Final invoices will be calculated based on the User understands and fully accepts the Minimum Revenue Requirement due to the University no matter the Projected Amount, and multiplying this figure by 80%.
of the Venues, Housing, Food Service, and other billable expenses which equal the Total Minimum Initial User will be billed a Minimum Revenue Requirement which is determined by adding the total dollar values A. Minimum Revenue Requirement
The following financial terms and conditions apply to this Agreement.
VI. FINANCIAL TERMS AND CONDITIONS
must be specifically arranged and agreed upon.
printing services, or use of the University’s Outdoor Programs equipment. Additional services and equipment venue rental rates. Common services or equipment include audio-visual services or equipment, IT services, Sometimes Users arrange for additional services or equipment from the University that are not included in the V. ADDITIONAL SERVICES AND/OR EQUIPMENT
removal of the guests from the residence hall at the University’s sole discretion.
Alcohol is not permitted in the residence halls. Violation of this Agreement may result in the immediate assessments, and liability of any nature as a result of the above. and well-being of all guests. In addition, the User will be responsible for all fines, loss of business, function entirely at the User’s expense. User shall be responsible for providing transportation for the safety the university or Harvest Table reserves the right to close the bar immediately and/or terminate the onto the premises without prior written approval, or allows any minor to consume any alcoholic beverage, Should the University or Harvest Table determine any User or User’s guest has brought any type of alcohol made.
minimum of thirty (30) days prior to the event date. Once the diagram is approved, changes cannot be The perimeter fence must be diagramed by Event Services and submitted to Harvest Table for approval a In order to serve alcohol at an outdoor venue, perimeter fencing must be provided at the User’s expense. minimum of thirty (30) days advanced notice of a bar/alcohol request. requires state regulated training for bartenders and wait staff that handle alcohol. Harvest Table requires a alcohol available for an event at the University. Harvest Table carries the appropriate liquor licenses and Harvest Table Culinary Group (Harvest Table) is the only organization that is permitted to bring to or have prohibited by California law.
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decisions regarding the necessity of cleaning are unilaterally made by the University which is under an goes beyond light cleaning will be billed to the User at the hourly cleaning rate then in effect. All will be charged for this basic cleaning as it is included in the rental fee. Cleaning that is required that vacuuming venue and sanitizing of bathrooms), both before and after the event. No additional fees The standard rental of any venue on campus includes a basic “light-cleaning” (which includes any property, items, or material goods left in the venue or on University property. venue or University location. The University is not responsible for the delivery, storage, or protection of charge of $300.00 will be assessed to the User for rental items left by User or service providers in any removed upon departure. No rental items are to be left on University property overnight. A minimum plates, bottles, or linens on lawns are to be picked-up. Rental items from service providers must be contracted venue(s). Any glass breakage is to be swept up and removed from the premises. Any be removed prior to departure. All trash must be placed in the trash receptacles in or near the Each User (and User’s service providers) will be responsible for general cleanup. All decorations must
2. Cleaning
judgments about damages.
that discretion in a reasonable manner. The User agrees to respect the University’s unilateral regarding damages are unilaterally made by the University which is under an obligation to exercise possible, the date and time they occurred (or were discovered) along with a photograph. All decisions University will provide as much detailed information concerning the location of damages and, if providers. Reasonable wear and tear is not considered to be “damages.” Should damages occur, the The User is responsible for all damages caused by User, User’s guests/attendees, and/or User’s service
1. Damages
F. Additional Charges
including but not limited to late fees.
The User specifically agrees to be responsible for any and all charges levied consistent with this Agreement, charged at a rate of 5% every fourteen (14) days.
balance due as stated on the invoice within thirty (30) days of the invoice date will result in late fees being The User agrees to pay any invoice within thirty (30) days after receipt of the invoice. Failure to pay the unpaid balances/amounts and any charges incurred during the event as provided for in this Agreement.
Following the conclusion of the event, the University will mail to the User a final invoice that captures any E. Payment Schedule
The deposit will be applied to the User’s full invoice or to any cancellation fee that may apply. executed and when the University receives payment a deposit (see above). Deposits are non-refundable.
The reservation that is the subject of this Agreement becomes effective when both the Agreement is fully D. Deposit Payment
General questions regarding billing should be addressed with Event Services.
Events Services.
For Payments more than $25,000, the University prefers wire payment, which can be coordinated with For payments less than $25,000, the University accepts payment by credit card.
A $25.00 fee will be assessed for returned checks.
Redlands, CA 92373
1200 East Colton Avenue
Event Services Department
University of Redlands
Checks should be made payable to “University of Redlands” and sent to the following address:
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usage. Fitness Center usage is restricted to persons eighteen (18) years or older during the User’s event and Fitness Center passes must be used during the posted hours for general day period. The availability of Fitness Center passes is contingent upon the Fitness Center being open Fitness Center passes are available at a cost per guest. Fitness Center passes are valid for a seven (7)
10. Fitness Center Passes
the age of eighteen (18) years must be accompanied by a responsible adult who also has a pool pass. passes must be used during the posted hours for general usage. Any guest using the pool who is under availability of pool passes is contingent upon the pool being open during the User’s event and pool Pool passes are available at a cost per guest. Pool passes are valid for a seven (7) day period. The
9. Pool Passes
of $750.00 each. There are NO exceptions to the return timeline. event or not returned during check-out or within eight (8) hours after check-out will be assessed a fee will be assessed a fee of $75.00 each for residence hall/apartment keys. Master keys lost during the Keys lost during the event or not returned during check-out or within eight (8) hours after check-out
8. Lost Keys
outlined in HOUSING, Rooming List.
beyond the FINAL rooming list due date until the User’s rooming list is received by the University – The University reserves the right to charge the User a late fee of up to $200.00 per day for each day .7 Late Housing Lists
average hourly cost of the rental).
established in the Agreement (the rate for extra-contractual time will be a minimum of 150% of the agrees that the User will be billed for the additional rental time, rounded up to the next hour, at a rate tear-down. If the User exceeds the time limits established in the Agreement, the User understands and User’s reservation must include the time needed (including time for User’s venders) for set-up and
6. Time Charges
specifications and/or diagrams due date.
to charge the User a late fee of up to $200.00 per day for each day beyond requested room set-up the final venue setup is submitted (or if the setup is submitted late), the University reserves the right University inventory limits for the reserved venues. If the User changes the setup or arrangement after Rental fees include University setup and take down service for the existing tables and chairs based on
5. Room Setup Changes or Late Submissions
complies with all requirements stated in the INSURANCE section of this Agreement.
User shall ensure that all such entitles or vendors that it retains directly maintain insurance that User’s direction).
services or equipment are arranged by the University on behalf of the User as a courtesy (and at the the University whether the User arranges for these services or equipment directly or whether the financial responsibility for any and all services or equipment rentals obtained from providers outside Sometimes Users need services or equipment that are not available from the University. User accepts
4. Services or Equipment from Outside the University
additional charges.
Services or Equipment, IT Services, Printing Services, and Outdoor Programs equipment will incur Services or Equipment ordered through the University including, but not limited to, Audio-Visual
3. Services or Equipment from the University
University’s unilateral judgments about cleaning.
obligation to exercise that discretion in a reasonable manner. The User agrees to respect the Redlands Regular Meeting of 05-20-2025 103 of 1269
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Non-cancelable costs are defined as third party costs for services already rendered or items already consumed. by the University of Redlands before the event that occasioned the delay, interruption, or prevention. therefore, except, however that the User shall remain liable for all non-cancelable costs paid and/or contracted power failures or interruptions, or any other cause beyond its control, such party shall not be liable to the other enactment, regulation or order, civil tumult, pandemic, epidemic, telecommunications failures, network or of an act of nature, fire, flood, war, public disaster, acts of terror, strikes or labor difficulties, governmental If either party is delayed, interrupted or prevented from the performance of its contractual obligations by reason VIX. FORCE MAJEURE
VII. TERMINATION/CANCELLATION
A. Termination of Agreement by the University
The University does not have the right unilaterally to cancel this Agreement or terminate its obligations under the Agreement absent a force majeure event.
B. Termination of Agreement by the User
User must give written notice of any event cancellation or termination of the Agreement. A cancellation that is received by the University more than ninety (90) days prior to the event date will result in a forfeiture of the deposit User made, together with any costs already incurred to outside vendors. A cancellation that is received by the University ninety (90) days or less before the event date will result in a forfeiture of the entire cost of the event as specified in the Agreement, together with any costs already incurred and agreed to by User. Rescheduling an event is considered the same as cancellation and is subject to the above policy.
VIII. INSURANCE
The University requires all non-university events and users to carry either self-insure or carry comprehensive general liability insurance. A certificate of insurance can be purchased through Campus Connexions, the University of Redlands' special event insurance partner: https://redlands.campusconnexions.com/studentinsurance/tenant-user-liability-insurance.html. A certificate of insurance can also be obtained through an existing business or homeowner's insurance company. Most insurance companies will provide a rider policy for the day of the event for a nominal fee. This service works for events that are personal in nature - i.e. weddings, parties, anniversaries, graduation parties, etc. Comprehensive General Liability insurance must list the University of Redlands, its trustees, officers, employees, representatives, and assigns as an additional insured on a primary and non-contributory basis, and must include a waiver of subrogation. A certificate of insurance should be issued by the carrier in the amount of $1,000,000 for each occurrence and $2,000,000 for general aggregate. The certificate of liability insurance must be received by the University thirty (30) days from the Agreement date.
If in connection with this Agreement, User or guests of User will include persons under the age of eighteen (18), then the General Liability insurance policy must provide coverage for sexual misconduct (including by definition sexual molestation, abuse, and harassment) with limits of no less than $1,000,000 per occurrence/$2,000,000 aggregate. Note: If the General Liability coverage has any sub-limits or exclusions inconsistent with the above that apply to coverage for sexual misconduct the Certificate of Insurance must define those limits or exclusions.
If the event includes the use of an automobile for the purposes of the activity, automobile insurance is required by the carrier in the amount of $1,000,000 for each occurrence and $2,000,000 for general aggregate.
If the client is bringing workers on campus for the event, workers comp is required at the state-mandated limits.
Each insurance policy shall be issued by an insurance company authorized to do business in the State of California or eligible surplus lines insurer acceptable to the State and having agents in California to whom service of process may be made, and currently rated by A.M. Best as “(A-) IX” or better.
For subcontractor insurance requirements, see the Services or Equipment from Outside the University section of this Agreement.
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All University venues are equipped with fire safety systems. All attendees must evacuate the building H. Fire Safety
etc.) must be supplied by User, not the University. This may include the volleyball nets.
Equipment needed for gaming tables (billiards, table tennis, etc.) and outdoor courts (volleyball, basketball, G. Equipment
misuse. Notify the University immediately if an elevator failure occurs.
Misuse may result in temporary loss of service and/or a service charge for repairs resulting from that Elevators exist in some University venues for the convenience of guests. Elevators must be used properly.
F. Elevators
local law enforcement for possible prosecution.
under a no tolerance policy and will also report any instances of substance abuse, possession, or sale to residence hall, and dismissal from participation in activities on University property. The University operates not. Non-compliance by anyone associated with the User will result in immediate removal from the is strictly prohibited, including the use of medical marijuana whether a medical marijuana card is issued or User and User’s guests’ involvement in the use, possession, distribution, or sale of illegal drugs or narcotics E. Drugs
and/or decorating policies may result in additional fees for damage or excessive cleaning. conclusion of the event. Failure of the User, their guests, or service providers to abide by the building Any decorations, flower arrangements, or additional items brought in by the User must be removed at the allowed in indoor venues. Users must place protective drip plates under candles.
No open flames of any kind may be used at outdoor events. Only votive candles and hurricane lamps are machine is strictly prohibited.
Services office. Use of confetti, straw, bird seed, rice, silly string, powder, sparklers, glitter, or smoke any area of the University. If directional signs are posted outdoors, they must be placed by the Event block vision of emergency exit signs. No items, including pictures, may be removed from walls or shelves in attach decorations to antique furniture, ceiling fixtures, windows, or doors. No items can be attached to or Decorations may be attached by using reusable all surface poster tack (painter’s tape). User may not clay, tacks, screws, nails, or any other adhering devise to any indoor or outdoor property at the University.
Users may only decorate the venue(s) reserved within this Agreement. Users may not attach tape, florist D. Decorations
residence halls.
makers with an automatic shut-off. Appliances which have an open coil or use hot oil are not allowed in Guests may not bring their own refrigerator or microwave. Guests may bring and use in their rooms, coffee C. Cooking Appliances
permitted inside any building.
each residence hall. The University is not responsible for the security of bicycles. Motorbikes are not Bicycles may not be brought into or kept in residence halls. Ample parking for bicycles is available near B. Bicycles
on campus during events. Prior notification of the need of service animals is requested. not permitted. Service animals that accomplish tasks for a disabled person are the only animals permitted University of Redlands campus, the University campus does not become a “residence” and thus ESAs are qualifying individual’s permanent residence. Because guests are staying in temporary housing on the (ESAs) are also not permitted. Under Fair Housing Act/HUD guidelines, ESAs must be permitted in a No animals of any kind may be brought into or kept in a University venue. Emotional Support Animals A. Animals
X. MISCELLANEOUS
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physical child abuse. By way of clarity and not by way of limitation, User’s indemnification of university but not limited to training for adult advisors, background checks, and reporting obligations for sexual or applicable laws and regulations for the User’s operations pertaining to the protection of minors, including section INSURANCE regarding insurance for events with minors present or as participants, and with all User hereby agrees and acknowledges that it has complied and will comply with applicable provisions of For groups whose participants are under the age of eighteen (18) O. Minors (under the age of eighteen (18))
In the event of a medical emergency or injury, call Public Safety at 909-748-8888 or 911 N. Medical Emergency / Injury
and others is expected at all times.
diverse backgrounds. Courtesy towards others, both within the User’s group and between the User’s group The use of foul language and profanities is discouraged at all times. The University hosts many groups with M. Language
content downloaded by the User or User’s attendees.
User. All downloads are done at User’s own risk. User accepts full responsibility for the legality of all responsibility for the safety of information downloaded by the User or any individual associated with the over-the-air nature, wireless communications are vulnerable to intrusive attacks. The University accepts no The campus wireless network is a common means for people to access internet services. Due to its computer lab without supervision.
hours when available to the public. Children under the age of eighteen (18) may not be left in any Internet access is also available on campus computers, including in Computer Labs and the Library during in inability to provide access to campus internet.
arranged in advance at an additional cost. Failure to submit a request in advance may, on occasion, result guaranteed. If internet access is essential for the event, such access must be specifically requested and to the University. Typically, internet access can be arranged without additional cost; internet access is not Requests for internet access for User and User’s attendees while on campus must be submitted, in writing, L. Internet
also is, of course, prohibited and grounds for immediate removal. immediate removal from the campus. Additionally, illegal harassment based on protected characteristics aggressive tactics to engage students, staff, or faculty. Failure to abide by this policy will result in University campus. External clients including conferences, meetings, or special events may not use The University prohibits aggressive recruitment through proselytizing, selling, etc. to any persons on the K. Harassment
Gambling of any nature is strictly prohibited on University property.
J. Gambling
an enjoyable one.
routinely for these pests. Your support and diligence in observing this regulation will help make your visit is not unusual for ants to be found on the 3rd floor of dormitories and classrooms. The University sprays immediately drawn to open food and soda containers. Crumbs also draw these insects from other areas. It old campus is located on the site of former citrus groves. There is a massive ant population which is venues that do not have kitchens. Food and sugar-filled sodas attract ants and cockroaches. The 100+ year The University strongly discourages food and soft drinks in the dormitories, classrooms, and meeting I. Food Outside of the Irvine Commons
forbidden and will result in damage charges to the User and to prosecution. (sprinkler systems, smoke detectors, fire alarms, pull stations, fire extinguishers, and fire hoses) is strictly User should familiarize all attendees with these routes. Misuse or damage to fire safety equipment immediately when the fire alarm sounds. Maps describing evacuation routes are posted within each venue.
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Before the User or User’s service providers attempt to sell any merchandise on University property, the the University. These may not be used without prior consent from the University.
The name “University of Redlands” as well as all University logos and trademarks are the sole property of venues are properly represented.
proposed publication to the University for written approval in order to ensure that University services and services are mentioned, or in which any University venues are pictured, User must send a draft of such Before the User prints or distributes any publication or other material in which the University venues and/or U. Publications and Sales
can be reached at 909-748-8888.
For emergency situations, Public Safety is available 24 hours a day, 7 days a week, 365 days a year, and T. Public Safety
pool privileges with no refund of the pool pass fees.
must be followed at all times. Failure to follow established safety procedures will result in a cancellation of all users are respectful and courteous at all times. Safety rules are clearly posted at the entrance. All rules The University pool is used by all faculty, staff, students and guests of the University. It is expected that S. Pool Etiquette/Safety Rules
original owner/location.
responsibility of the individual. The University will not assume the cost of shipping any item back to its All shipping charges associated with the return of property to the User or a User attendee will be the days after the last day of conference residency.
effects from the University as soon as possible. The University cannot hold items longer than fourteen (14) responsibility for any item found at a venue. To prevent loss, participants should reclaim their personal While the University attempts to return personal effects to their proper owners, it cannot assume Public Safety or Event Services
User or to any of the User’s guests. Guests who believe they have left personal effects behind may contact The University assumes no responsibility for loss, theft, or damage to personal property belonging to the R. Personal Property
items shipped, or left for pick-up to/at the University. departure date. The University is not responsible for mislabeled packages, lost packages, or damages to reserves the right to discard any materials not removed within seven (7) days after your scheduled expense, arrangements must be made for the return shipping of any surplus materials. The University seven (7) days in advance of your event may be returned at the User’s expense. Also, at the User’s own storage space. Charges will be assessed for storing or moving these materials. Items received more than Do not send materials more than seven (7) days prior to the arrival date, as the University has limited being used.
Please check with the university before shipping packages to confirm that the correct shipping address is Event Services.
addition to the designated mailing address for proper handling: User group and person’s name, Attention:
AM-04:30 PM and Friday 08:00 AM-11:00 AM. All shipping labels must have the following information, in coordinate receipt of all packages. Fees may apply. Packages can be received Monday-Thursday 08:00 User will inform the University of Redlands of any materials being shipped to the campus in order to Q. Packages
University standards.
The University reserves the right to evict any person or persons whose conduct is unacceptable by P. Misconduct
under section INDEMNIFICATION expressly applies to any breach of User’s obligations under this provision.
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or damages arising out of the performance of this Agreement but only in proportion to and to the extent such from and against any and all liability, loss, expense (including reasonable attorneys’ fees), or claims for injury User shall defend, indemnify and hold harmless the University, its trustees, officers, agents, and employees of any kind are permitted on the University of Redlands campus.
User hereby assumes all responsibility for the safety and welfare of guests during the event. No illegal activities XII. INDEMNIFICATIONS
provide a certificate of liability insurance as outlined in INSURANCE.
University will be managed by the University. All service providers, regardless of how they are engaged, must that are contracted directly with User are the sole responsibility of the User. Service providers arranged by the must be available to accept deliveries. All external service providers (rental companies, florists, musicians, etc.) User, or a representative of User, must be on the premises when external service providers are on campus and XI. EXTERNAL SERVICE PROVIDERS
window screen removed or damaged.
Window screens, where provided, are not to be removed for any reason. User will be charged for each BB. Windows
dangerous chemicals such as mace, pepper spray, or tear gas, or any object prohibited by law. limited to firearms, BB/pellet/air soft guns, paint guns, knives with blades 2.5 or more inches in length, “Weapon” means any object designed to inflict a wound, cause injury, or incapacitate, including, but not The University and California Penal Code prohibit carrying or possession of weapons on University property.
AA. Weapons
this Agreement are violated.
participants to leave the residence hall(s) and/or University property if regulations/procedures specified in that residence hall. University staff may require the User to request any participants or group of All non-resident visitors within a residence hall are required to be escorted at ALL times by a resident of Z. Visitation
all state, local, and campus parking laws/policies must be followed. subject to guidelines established by the Department of Public Safety. Parking permits are not required, but the University responsible for damage to any vehicle while located on University property. All parking is User’s attendees assume all responsibility for vehicles on University property. Under no circumstances is Vehicles on University property are governed by the University’s Department of Public Safety. User and Y. Vehicles and Parking
etc.), and other concerned parties aware of and abide by University policies and regulations. service providers (event planners, wedding coordinators, musicians, photographers, DJs, rental deliveries, applicable University rules, policies, and regulations. The User shall be responsible to make guests, their Any individual or organization renting venues at the University must abide by and conform with all X. University Rules and Policies
smoking in any venue.
of and in compliance with the no smoking policy. Cleaning charges will be assessed if there is evidence of The University is entirely non-smoking. User is responsible for making guests and service providers aware W. Smoking
environment.
other guests. This is to be observed by all guests to ensure a peaceful and comfortable living and learning 07:00 AM. Radios, televisions, stereos, and other such equipment must be operated so as not to disturb Quiet hours in all shared-use venues are 09:00 PM-09:00 AM daily. Quiet hours in housing are 11:00 PMV. Quiet Hours User must first obtain written approval from the University.
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arbitration, including fees of its counsel.
The costs of the arbitrators shall be split equally between the parties. Each party shall bear its own cost of amend, modify or delete any provision of this Agreement. entered as a judgment in a court of competent jurisdiction. The arbitrators shall not have the authority to conclusion of the hearing. The decision of the arbitrators shall be final and binding upon the parties and may be The arbitrators, by majority decision, shall issue a written decision within five (5) calendar days after the be represented by legal counsel.
be no pre-hearing discovery, except for the foregoing. Testimony shall be taken under oath and the parties may the production of documents as provided in Section 1282.6 of the California Code of Civil Procedure. There shall necessary, may issue subpoenas upon the request of the parties to compel the testimony of third parties and hearing at which the parties to the dispute may submit evidence and examine witnesses. The arbitrators, if Within seven (7) calendar days after the submission of the two proposed decisions, the arbitrators will hold a proposed decision. A copy of the proposed decision shall be given to the other party and to all arbitrators. proposed decision to the arbitrators with appropriate findings of fact and conclusions of law to support the Within five (5) calendar days after the selection or appointment of the third arbitrator, each party shall submit a Superior Court, for the appointment of a third arbitrator. agree upon a third arbitrator, either party may petition the presiding judge of the San Bernardino County arbitrator within five (5) calendar days after the selection of the second. In the event that the two are unable to and unaffiliated in any way with either of the parties. The two arbitrators so selected will together choose a third arbitrator and give notice of its choice to the first party. The two arbitrators so selected shall be unrelated to Within five (5) calendar days of receipt of the written demand to arbitrate, the second party shall select one of selection of one arbitrator.
Arbitration must be initiated by a party providing the other party with a written demand to arbitrate and notice below.
under it, or the breach thereof, shall be determined by arbitration in accordance with the procedures established against individuals or other entities) arising out of or relating to this Agreement, the services to be performed All controversies, disputes or claims (including those based upon statute, tort or public policy and those brought Arbitration
the laws of the State of California, as applied to contracts made and to be performed in California. the parties agree to submit the matter to binding arbitration as follows below. This Agreement is governed by out their differences with each other in good faith. If the matter cannot be resolved through good faith efforts, In the event that a dispute arises under this Agreement, the University and User agree first to attempt to work XIV. DISPUTE RESOLUTION
found to exist, User hereby assumes all responsibility for correcting or removing such violation. and ordinances apply to the activity of the User and to ensure compliance with same. Should any violation be the User and made available to the University. It is also the responsibility of the User to determine which laws If requested by the University, any permit, license or tax required for any activity shall be purchased/paid by fire departments shall be observed.
local – including all ordinances of the City of Redlands. All rules, regulations, and requirements of the police and Individuals and/or organizations renting venues at the University shall comply with all laws – federal, state and XIII. COMPLIANCE WITH STATE AND LOCAL LAWS AND REGULATIONS right to plead defensively such immunity or exemption against the University. exemption (statutory or otherwise) from liability for damage or injury to property or person, hereby waives its User, if a charitable organization, association, corporation, entity or individual, having or claiming immunity or any provision of this Agreement.
negligent or intentional acts or omissions of User, User’s guests, or User’s service providers, or Users breach of liability, loss, expense, attorney’s fees, or claims for injury or damages are caused by or result from the Redlands Regular Meeting of 05-20-2025 109 of 1269
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and its terms are incorporated by reference into this Agreement contract and binding on the User. other published media, the FILMING GUIDELINES, ADDENDUM TO AGREEMENT must be completed by the User, If the User videotapes, films, take digital images, still photography, or anything intended for motion pictures or XIX. FILM SHOOT
the express written consent of the other party
Agreement. Neither User nor the University may assign their rights or obligations under this Agreement without have been made to each other by their respective agents, representatives, or employees with respect to this and User guarantee that, except as set forth in this Agreement, no representatives, warranties, or promises made prior to this Agreement are hereby extinguished and considered null and void by both parties. University Any and all other proposals, negotiations, promises, arrangements, or understandings, whether oral or written, User with respect to its subject matter and may be amended only by written notification between both parties.
This Agreement, and its accompanying Addendums, constitute the entire agreement between the University and XVIII. ENTIRE AGREEMENT
this Agreement, the language in this Agreement shall prevail.
In the event that the language in this Agreement conflicts with any language in any other documents related to XVII. PREVAILING LANGUAGE
practice shall act to modify any provision of this Agreement. be construed as a waiver of any provision or right. Neither the course of conduct between the parties nor trade The University’s failure to insist upon or enforce strict performance of any provision of this Agreement shall not XVI. ENFORCEMENT
and Non-Discrimination.
The parties agree to be bound by applicable state and federal rules governing Equal Employment Opportunity XV. NON-DISCRIMINATION
This space intentionally left blank.
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XX. Mutual and Binding Agreement
effective to bind such parties to this Agreement.
digital or encrypted, of a party to this Agreement shall be as valid as an original signature of such party and shall be organizations and agree to the terms and conditions herein. The parties agree that the electronic signature, whether cancellation provisions. The person(s) signing this Agreement shall have the authority to bind their respective be considered in force and legally binding on both parties. The User acknowledges reviewing and accepting the This Agreement, when signed and dated below by the respective authorized representatives of University and User will City of Redlands
Signature
Date
Date
Mario Saucedo, Mayor
University of Redlands
Signature
Terri Fusco, Senior Director
Revised January 2023
(909) 748-8116
[email protected]
www.redlands.edu/event-services
Redlands, CA 92373
PO Box 3080
1200 E. Colton Ave
University of Redlands Event Services
Date
Jeanne Donaldson, City Clerk
Signature
Attest:
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City Council/Financing Authority Meeting H. 8.
DATE: 05/20/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Approve an Intergovernmental Purchase of Getac Mobile Data Computers from Code 3 Technologies in the amount of $53,648.25 (Police Chief Tolber)
MOTION(S):
If the City Council determines that staff’s recommendation is appropriate, the following motion is provided:
I move to approve an Intergovernmental Purchase of Getac Mobile Data Computers from Code 3 Technologies in the amount of $53,648.25.
RECOMMENDATION:
Staff recommends that City Council approve an Intergovernmental Purchase of Getac Mobile Data Computers for the Police Department from Code 3 Technologies in the amount of $53,648.25.
DISCUSSION:
The Redlands Police Department (RPD) relies on mobile data computers (MDCs) installed in patrol vehicles to access critical dispatch system resources while responding to active calls for service. MDCs are an essential component of daily operations, enabling efficient communication and access to real-time information in the field.
The selected MDC units are equipped with high-visibility displays suitable for both indoor and outdoor use and are fully ruggedized to provide protection against impact and liquid exposure. Upon approval of this procurement, the MDCs will be installed in RPD’s newly acquired fleet of 12 Chevrolet Tahoe vehicles, enhancing the department’s operational capabilities.
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Staff followed the procurement guidelines by identifying and selecting an existing competitively bid cooperative contract through Sourcewell. Sourcewell employs advanced procurement practices to develop cooperative purchasing agreements that provide public agencies with access to high-quality products and services at competitive prices. Based on staff’s evaluation, the proposed hardware is recommended to be procured through this cooperative purchasing agreement to ensure cost-effectiveness and compliance with City procurement standards.
ALTERNATIVES:
City Council may choose to reject, modify or table the proposed purchase.
However, the purchase is recommended in order to ensure the continued functionality of the Police Department's mobile data computing operations.
STRATEGIC PLAN:
N/A
SUBMITTED BY:
Rachel Tolber, Police Chief
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Janice McConnell, Assistant City Manager
Dana Abramovitz-Daniel, Procurement Manager
PREPARED BY:
Jimmy Nguyen, Management Analyst
Fiscal Impact
Fiscal Year: 2024-25
Revenue Generating: N
Appropriation Required Y/N: N
Amount: 53,648.25
Budgeted Y/N: Y
Account No.: 101202
Discussion:
Funding will be provided through existing budget savings.
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Attachments
Getac Quote
Getac & Sourcewell Contract
Getac Sourcewell Authorized Reseller List
Getac Sourcewell Product List
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PROPOSAL
Date: 4/13/2025
QUOTE: 25-231
Thanks for your business!
Quote expires 4/30/2025*
Gabriela Gonzalez
Redlands Police Department
35 Cajon St. Ste. 222
Redlands, CA 92373
909-335-4775
Customer ID: RPDCA001
Salesperson Project Payment Terms Contract#
Michelle Best MDC – Getac K120G3 Net 30 Sourcewell 090122-GET Part# Description Qty Unit Price Ext Price
KTA764V1AQXX
Getac Fully Rugged K120G3 with Keyboard Dock - Intel i5-1335U Processor, Windows Hello Webcam, Standard Batteries (2-pack), Win11 Pro x64, 16GB RAM, 256GB PCIe SSD, Sunlight Readable Full HD LCD, Touchscreen, Screen Protector, Rear Camera, Hard Tip stylus, USB-C AC Adapter, Power Cord, Keyboard Dock (w/ RF Passthrough), WIFI, Bluetooth, 5G Sub-6 (EM9190), Integrated GPS/Glonass, Passthrough, Thunderbolt 4 USB, 3 Year Bumper 2 Bumper Warranty 12 $3665 $43,980
GE-SVTBNFX5Y Bumper-to-Bumper Extended Warranty – Tablet (Years 4 & 5) 12 $481 $5772 Subtotal $49,752.00
Sales Tax $3848.25
Recycle $48.00
Shipping $0.00
Total $53,648.25
*We offer financing & Leasing, device buyback, and rugged device insurance coverage, just ask! *CCs add 2.89%. Purchasing contracts add 1-2% (GSA, OMNIA, Sourcewell, PEPPM, SLP, DIR) Code 3 Technology/9855 E Southern Ave #50882 Mesa AZ 85209/ 480-888-6401/ [email protected] Redlands Regular Meeting of 05-20-2025 115 of 1269
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Solicitation Number: 090122
CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Getac, Inc., 15495 Sand Canyon Ave., Suite 350, Irvine, CA 92618 (Supplier).
Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.
Sourcewell issued a public solicitation for Law Enforcement Equipment from which Supplier was awarded a contract.
Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).
1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.
B. EXPIRATION DATE AND EXTENSION. This Contract expires November 7, 2026, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.
C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.
2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.
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Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.
All Equipment and Products provided under this Contract must be new and the current model.
Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.
This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.
B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in materials and workmanship. In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.
C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.
3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.
When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.
Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.
A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be
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returned within a reasonable time at no cost to Sourcewell or its Participating Entities.
Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.
Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.
Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.
B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.
C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.
When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.
Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.
4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.
At a minimum, the request must:
x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change;
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x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.
A fully executed Sourcewell Price and Product Request Form will become an amendment to this Contract and will be incorporated by reference.
5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS
A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.
The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.
Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.
B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.
6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell
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contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.
Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.
B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.
C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.
D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:
1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or
2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.
E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.
7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:
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x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.
B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.
8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).
The Report must contain the following fields:
x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.
B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.
The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased
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by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.
Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.
In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.
9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.
Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.
10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.
B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.
C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.
D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.
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E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.
F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.
11. INDEMNITY AND HOLD HARMLESS
Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Supplier is not liable in any event for consequential damages. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.
12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.
13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY
1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.
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2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.
3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.
4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.
B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.
C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.
D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.
14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.
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15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.
16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.
17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:
1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.
2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.
3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs, with the exception of consequential damages, incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.
B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:
1. Nonperformance of contractual requirements, or
2. A material breach of any term or condition of this Contract.
The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
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x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.
18. INSURANCE
A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:
1. Workers’ Compensation and Employer’s Liability.
Workers’ Compensation: As required by any applicable law or regulation.
Employer's Liability Insurance: must be provided in amounts not less than listed below:
Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.
Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate
3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.
Minimum Limits:
$1,000,000 each accident, combined single limit
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4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.
Minimum Limits:
$2,000,000
5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.
Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.
B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.
Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.
C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.
D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other
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insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.
E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.
19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.
B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.
20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.
Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.
21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER
UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all
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references to “federal” should be interpreted to mean the United States federal government.
The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.
A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-
1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.
B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by nonfederal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions.
C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).
Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of
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not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.
F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.
G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any
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person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).
H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.
I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.
J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.
K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.
L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
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M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier cannot use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.
N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by a Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.
O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.
P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.
Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.
R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.
Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.
S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.
T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.
22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s
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Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.
Sourcewell Getac, Inc.
By: __________________________ By: __________________________ Jeremy Schwartz Hsin Jung-Lu
Title: Chief Procurement Officer Title: VP Finance & Business Services Date: ________________________ Date: ________________________ Approved:
By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________
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Redlands Regular Meeting of 05-20-2025 152 of 1269
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Bid Number: RFP 090122 Vendor Name: Getac, Inc.
Redlands Regular Meeting of 05-20-2025 153 of 1269
Bid Number: RFP 090122 Vendor Name: Getac, Inc.
Table 148: Depth and 8readth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.
Line Item Category or Type Offered Comments
71 Law Enforcement duty gear Yes
No
N/A *
72 Traffic safety enforcement equipment, devices, and
instruments
Yes
No
Getac solutions are built to
improve upon the computer-aided
dispatch software (CAD) and
police records management
system (RMS) you already use.
Writing citations, collision reports,
and DUI arrest reports has never
been easier thanks to Getac
solutions. With our rugged
devices, you can write, sync, and
submit all the documents required
from the field electronically, saving
time, and reducing errors. Getac
rugged devices are built with law
enforcement in mind, providing
you access to information to stay
situationally aware as you protect
and serve. Whether on patrol or
during an emergency, Getac
devices allow you to remain in
contact with command, dispatch,
and your fellow officers to make
sure everyone is safe and
informed.
*
73 Crime scene management and evidence collection
equipment and supplies
Yes
No
N/A *
74 Tactical and EOD equipment (with the exception of those items excluded in subsections 2. or 3. of RFP)
Yes
No
ANSI rated rugged devices
available for EOD environments *
75 Services related to the offering of the solutions in subsections above, such as training, installation, testing, maintenance, warranty programs, and technical support
Yes
No
N/A
*
Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text.
Redlands Regular Meeting of 05-20-2025 154 of 1269
Bid Number: RFP 090122 Vendor Name: Getac, Inc.
Documents
Ensure your submission document(s) conforms to the following:
1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.
2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.
3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.
4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - Sourcewell Pricing Page_Final.pdf - Wednesday August 31, 2022 13:23:12 Financial Strength and Stability - Financial Review Form.pdf - Tuesday August 09, 2022 14:38:46 Marketing Plan/Samples - Marketing Plan.pdf - Wednesday August 31, 2022 12:37:18 WMBE/MBE/SBE or Related Certificates (optional)
Warranty Information - Warranty Details.pdf - Tuesday August 09, 2022 17:33:13 Standard Transaction Document Samples - Sample Quote.pdf - Wednesday August 31, 2022 11:28:20 Upload Additional Document - Getac-All in One-US-July2022.pdf - Wednesday August 10, 2022 17:29:18
Redlands Regular Meeting of 05-20-2025 155 of 1269
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Bid Number: RFP 090122 Vendor Name: Getac, Inc.
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Getac North America
15495 Sand Canyon Rd., Ste 350
Irvine, CA 92618
www.getac.com/us
949.681.2900
v.24.2
As of Tuesday, June 18, 2024, the current Authorized Resellers for the Sourcewell Contract #090122- GET are listed below. Copies of the executed MOA are available upon request.
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Solicitation Number: 090122
CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Getac, Inc., 15495 Sand Canyon Ave., Suite 350, Irvine, CA 92618 (Supplier).
Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.
Sourcewell issued a public solicitation for Law Enforcement Equipment from which Supplier was awarded a contract.
Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities that access Sourcewell’s cooperative purchasing contracts (Participating Entities).
1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.
B. EXPIRATION DATE AND EXTENSION. This Contract expires November 7, 2026, unless it is cancelled sooner pursuant to Article 22. This Contract may be extended one additional year upon the request of Sourcewell and written agreement by Supplier.
C. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract.
2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.
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Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.
All Equipment and Products provided under this Contract must be new and the current model.
Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.
This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.
B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in materials and workmanship. In addition, Supplier warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Supplier’s dealers and distributors must agree to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that extends beyond the expiration of the Supplier’s warranty will be passed on to the Participating Entity.
C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.
3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.
When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.
Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.
A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be
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returned within a reasonable time at no cost to Sourcewell or its Participating Entities.
Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.
Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.
Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.
B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.
C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.
When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.
Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities.
4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.
At a minimum, the request must:
x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change;
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x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.
A fully executed Sourcewell Price and Product Request Form will become an amendment to this Contract and will be incorporated by reference.
5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS
A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.
The benefits of this Contract should be available to all Participating Entities that can legally access the Equipment, Products, or Services under this Contract. A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.
Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.
B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.
6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell
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contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.
Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.
B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.
C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.
D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:
1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or
2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.
E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.
7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:
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x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.
B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.
8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).
The Report must contain the following fields:
x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.
B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.
The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased
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by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.
Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.
In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.
9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.
Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.
10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.
B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.
C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.
D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.
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E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.
F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.
11. INDEMNITY AND HOLD HARMLESS
Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, arising out of any act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. Supplier is not liable in any event for consequential damages. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.
12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.
13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY
1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.
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2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.
3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.
4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.
B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract.
C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.
D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.
14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.
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15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.
16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.
17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:
1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.
2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.
3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, the Supplier will bear any additional costs, with the exception of consequential damages, incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.
B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:
1. Nonperformance of contractual requirements, or
2. A material breach of any term or condition of this Contract.
The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
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x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.
18. INSURANCE
A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:
1. Workers’ Compensation and Employer’s Liability.
Workers’ Compensation: As required by any applicable law or regulation.
Employer's Liability Insurance: must be provided in amounts not less than listed below:
Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease
2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.
Minimum Limits:
$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate
3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.
Minimum Limits:
$1,000,000 each accident, combined single limit
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4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.
Minimum Limits:
$2,000,000
5. Network Security and Privacy Liability Insurance. During the term of this Contract, Supplier will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Supplier’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service.
Minimum limits:
$2,000,000 per occurrence
$2,000,000 annual aggregate
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.
B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.
Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.
C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds.
D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other
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insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.
E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.
19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.
B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.
20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.
Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.
21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER
UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all
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references to “federal” should be interpreted to mean the United States federal government.
The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.
A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-
1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.
B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by nonfederal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions.
C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5).
Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of
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not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.
E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).
Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.
F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.
G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any
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person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).
H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.
I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.
J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.
K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.
L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
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M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier cannot use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.
N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by a Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.
O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.
P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.
Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.
R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.
Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.
S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.
T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.
22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s
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Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.
Sourcewell Getac, Inc.
By: __________________________ By: __________________________ Jeremy Schwartz Hsin Jung-Lu
Title: Chief Procurement Officer Title: VP Finance & Business Services Date: ________________________ Date: ________________________ Approved:
By: __________________________
Chad Coauette
Title: Executive Director/CEO
Date: ________________________
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Bid Number: RFP 090122 Vendor Name: Getac, Inc.
Redlands Regular Meeting of 05-20-2025 196 of 1269
Bid Number: RFP 090122 Vendor Name: Getac, Inc.
Table 148: Depth and 8readth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.
Line Item Category or Type Offered Comments
71 Law Enforcement duty gear Yes
No
N/A *
72 Traffic safety enforcement equipment, devices, and
instruments
Yes
No
Getac solutions are built to
improve upon the computer-aided
dispatch software (CAD) and
police records management
system (RMS) you already use.
Writing citations, collision reports,
and DUI arrest reports has never
been easier thanks to Getac
solutions. With our rugged
devices, you can write, sync, and
submit all the documents required
from the field electronically, saving
time, and reducing errors. Getac
rugged devices are built with law
enforcement in mind, providing
you access to information to stay
situationally aware as you protect
and serve. Whether on patrol or
during an emergency, Getac
devices allow you to remain in
contact with command, dispatch,
and your fellow officers to make
sure everyone is safe and
informed.
*
73 Crime scene management and evidence collection
equipment and supplies
Yes
No
N/A *
74 Tactical and EOD equipment (with the exception of those items excluded in subsections 2. or 3. of RFP)
Yes
No
ANSI rated rugged devices
available for EOD environments *
75 Services related to the offering of the solutions in subsections above, such as training, installation, testing, maintenance, warranty programs, and technical support
Yes
No
N/A
*
Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text.
Redlands Regular Meeting of 05-20-2025 197 of 1269
Bid Number: RFP 090122 Vendor Name: Getac, Inc.
Documents
Ensure your submission document(s) conforms to the following:
1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.
2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.
3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.
4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - Sourcewell Pricing Page_Final.pdf - Wednesday August 31, 2022 13:23:12 Financial Strength and Stability - Financial Review Form.pdf - Tuesday August 09, 2022 14:38:46 Marketing Plan/Samples - Marketing Plan.pdf - Wednesday August 31, 2022 12:37:18 WMBE/MBE/SBE or Related Certificates (optional)
Warranty Information - Warranty Details.pdf - Tuesday August 09, 2022 17:33:13 Standard Transaction Document Samples - Sample Quote.pdf - Wednesday August 31, 2022 11:28:20 Upload Additional Document - Getac-All in One-US-July2022.pdf - Wednesday August 10, 2022 17:29:18
Redlands Regular Meeting of 05-20-2025 198 of 1269
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Bid Number: RFP 090122 Vendor Name: Getac, Inc.
Redlands Regular Meeting of 05-20-2025 200 of 1269
City Council/Financing Authority Meeting I. 1.
DATE: 05/20/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Conference Report - 2025 City County Conference of the San Bernardino County Transit Authority (SBCTA) (Mayor Saucedo) DISCUSSION:
For this evening’s City Council Meeting, Mayor Saucedo will provide a report relating to his attendance at the 2025 City County Conference hosted by the San Bernardino County Transit Authority, held May 8 - 9 in Lake Arrowhead, California at the Lake Arrowhead Resort. The City County Conference brings together elected officials and agency staff to hear presentations about important countywide topics.
Attachments
Conference Agenda
Redlands Regular Meeting of 05-20-2025 201 of 1269
11:00 a.m. Registration and Buffet Lunch Open
12:20 p.m. Welcome: Dawn Rowe, Chairman, San Bernardino County Board of Supervisors
Master of Ceremonies: L. Dennis Michael, Mayor, City of Rancho Cucamonga
Session 1A—Main Ballroom
Prop 36 Implementation and Impacts
A panel discussion on California Proposition
36 will explore its implementation and
impacts, focusing on how the law has
reformed sentencing for nonviolent
drug offenders. Experts will discuss its
effectiveness in reducing incarceration, its
challenges in execution, and its broader
effects on the criminal justice system and
rehabilitation programs.
Moderator: Shannon D. Dicus, SheriffCoroner, San Bernardino County Sheriff’s Department
Panelists:
Jason Anderson, District Attorney,
San Bernardino County
Darren L. Goodman, Chief of Police,
San Bernardino Police Department
Trevis Newport, Assistant Sheriff, San
Bernardino County Sheriff’s Department
Session 1B—Lakeview Terrace
California Advanced Clean Fleet
Compliance
This panel will shed light on the Advanced
Clean Fleets regulation, unpack its
implications for your operations, and
discuss strategies to ensure a seamless
and effective transition. We’ll tackle critical
questions, including California Emissions
Regulations: Current Status and Future
Outlook, Infrastructure demands, Available
California Air Resources Board exemptions,
Appeals Process, and Federal Waiver
Impacts.
Moderator: Mark McCullough, Director
of Fleet Management, County of San
Bernardino
Panelists:
David Worthington, Fleet Manager,
County of Santa Clara
Bradley Northrup, Public Works
Superintendent, City of Carlsbad
Michael Taylor, Senior Advisor, HillStaffer
LLC and Managing Partner, Diakon
Partners, Inc.
12:45 p.m.
THURSDAY, MAY 8
AGENDA
Redlands Regular Meeting of 05-20-2025 202 of 1269
1:45 p.m.
3:00 p.m.
THURSDAY, MAY 8
BREAK
3:15 p.m.
Session 2A—Main Ballroom
Disaster Response: Lessons Learned
through Fire and Ice
In this session, we will share how emergency
response in San Bernardino County is multileveled from neighbor helping neighbor to inter-agency organized professional
response.
Moderator: Trevor Leja, Assistant Executive
Officer, San Bernardino County
Panelists:
Dan Munsey, Fire Chief/Fire Warden, San
Bernardino County Fire Protection District
Crisanta Gonzalez, Director, San Bernardino
Office of Emergency Service
Julia Juarez, Deputy Commissioner for
Community Relations and Outreach,
California State Insurance
Rich Sessler, Fire Chief, Redlands Fire
Department
Session 3A—Main Ballroom
The Evolving Industrial Landscape:
New Challenges and New Opportunities
The audience will gain a perspective on
warehousing and logistics, learn about
local adaptations to the evolving economic,
technological, and legislative landscape.
Moderator: Phil Burum, Deputy City Manager,
City of Fontana
Panelists:
Bryan Jones, Assistant City Manager, City of
Menifee
Jolene Hayes, Senior Associate, Fehr and
Peers
Becky Bradley, Executive Director, Lehigh
Valley Planning Commission
Jonathan Shardlow, Partner, Allen Matkins
Session 2B—Lakeview Terrace
Using AI
This engaging session will explore AI
policies, implementation strategies, and
real-world use cases. Panelists will discuss
AI and have a conversation around its
usage. The session will also address
potential pitfalls, emphasize that using AI is
not cheating, and highlight the benefits and
impact of AI in local government.
Moderators:
Lynn Fyhrlund, Chief Information Officer,
San Bernardino County
Ray Ebert, Deputy City Manager,
City of Fontana
Panelists:
Emily Vaughn Henry, Assistant Chief
Information Officer, San Bernardino County
Michael Fermin, Chief Assistant District
Attorney, San Bernardino County
Session 3B—Lakeview Terrace
Public Safety Cloud: Data Commons for
Smart City Emergency Services
Smart cities and public safety systems
are hindered by siloed technology, but
initiatives like public safety clouds, which
integrate real-time data and AI, are helping
agencies like County Fire and Sheriff
share information securely and improve
interoperability for better decision-making.
Moderator:
Dan Munsey, Fire Chief/Fire Warden, San
Bernardino County Fire Protection District
Panelists:
Shannon D. Dicus, Sheriff-Coroner, San
Bernardino County Sheriff’s Department
Lynn Fyhrlund, Chief Information Officer,
San Bernardino County
AGENDA
Redlands Regular Meeting of 05-20-2025 203 of 1269
THURSDAY, MAY 8
8:00 a.m. Breakfast Buffet
4:30 p.m.
5:00 p.m.
8:30 a.m. Opening Remarks – Main Ballroom
FRIDAY, MAY 9
Legislative Roundtable—Main Ballroom
Chad Mayes, Partner, Capitol Advocacy and California State Assembly Retired Scott Wilk, Senior Vice President, Los Angeles/Ventura County Chapter of the Building Association of Southern California
Anthony Rendon, PhD, Speaker Emeritus, California State Assembly Phil Ting, Founder, Illum Advisors
Economic Update—Main Ballroom
Chris Thornberg, Founding Partner, Beacon Economics LLC
CLOSE/END CONFERENCE
9:00 a.m.
10:00 a.m.
11:00 a.m.
Guest Speaker—Main Ballroom
Eric Dickerson, NFL Hall of Famer
Networking Reception and Dinner – Lakeside Lawn (outside) Dinner Buffet
Music and Networking
AGENDA
Redlands Regular Meeting of 05-20-2025 204 of 1269
City Council/Financing Authority Meeting I. 2.
DATE: 05/20/2025
TO: Honorable Mayor and City Council Members
SUBJECT: Discussion and possible action regarding South Coast Air Quality Management District's Proposed Amended Rule 1111 (Reduction of NOx Emissions from Natural Gas-Fired Furnaces) and Proposed Amended Rule 1121 (Reduction of NOx Emissions from
Residential-Type, Natural Gas-Fired Water Heaters) (Mayor Pro Tem Shaw)
MOTION:
If the City Council concurs with Mayor Pro Tem Shaw's recommendation, then the following motion is provided:
I move that the City Council authorize the Mayor to sign a letter to SCAQMD on behalf of the City Council in opposition to Proposed Amended Rule 1111 and Proposed Amended Rule 1121.
RECOMMENDATION:
It is recommended by Mayor Pro Tem Shaw that the City Council authorize the Mayor to sign a letter to SCAQMD on behalf of the City Council in opposition to Proposed Amended Rule 1111 and Proposed Amended Rule 1121.
DISCUSSION:
UPDATE:
At the March 18, City Council meeting, City Council was first presented with PAR 1111 and 1121 information and elected to table the discussion to the April 1 Council meeting in order to gather additional information from SCAQMD related to the impacts of the PARs implementation. At the April 1 City Council meeting, Council again elected to table the discussion to a future Council meeting in order to hear SCAQMD's presentation to the SBCTA Board at their April 2 meeting.
Redlands Regular Meeting of 05-20-2025 205 of 1269
At the April 2 SBCOG Board meeting, staff reminded the Board that at their January 8, 2025, Board meeting, they received a presentation from SCAQMD regarding PAR 1111 and 1121 and that on that same date, the Board adopted Resolution No. 25-059 opposing the PARs. Comments received from Board members at the April 2 meeting were overwhelmingly opposed to the PARs. As the SCAQMD presentation was a receive and file item, no action was taken to withdraw Resolution No. 25-59 and SBCOG's opposition to the PARs remains in place.
At the April 2 Redlands Chamber of Commerce's Government Review Committee meeting, the Committee voted to join the Cost of Living Council in opposition to PARs 1111 and 1121.
In addition to SBCOG and the Redlands Chamber of Commerce, a number of neighboring agencies in Southern California have submitted letters of opposition to PARs 1111 and 1121, including the cities of Anaheim, Corona, Temecula, Upland, and Yorba Linda.
BACKGROUND
The South Coast Air Quality Management District (SCAQMD) is the government agency responsible for air quality in the greater Southern California region. One of the functions of SCAQMD is to develop plans and promulgate Rules that assist the region in attaining federal air quality standards. SCAQMD's 2022 Air Quality Management Plan includes a goal of a 67% reduction in oxides of nitrogen (NOx) emissions over baseline levels by 2037. In furtherance of this goal, the SQAQMD proposes to amend Rule 1111 and 1121 (PAR 1111 and PAR 1121), both of which were adopted in the late 1970's, to both lower the NOx emission standard to zero and implement mandatory compliance time frames for both new construction and existing buildings and homes. Rule 1111 regulates the emissions from residential gas-fired furnaces, and Rule 1121 regulates the emissions from residential gas-fired water heaters. The PARs seek to transition to zero-emission space and appliances, based on future effective dates when existing appliances need to be replaced. The updated AQMD guidelines include two key changes from the November PAR 1111 to the March PAR: lowering the BTU threshold from 2,000,000 to 175,000, limiting the order to primarily residential appliances, and excluding mobile homes from the new guidelines. Additionally, AQMD highlighted the Manufacturer Alternative Compliance Mitigation Fee, set to begin in 2027, which would allow manufacturers to continue selling NOx-emitting furnaces and water heaters through payment of a mitigation fee. The proposed fees include $100 per NOx-emitting furnace, $50 per NOx-emitting water heater, and a $500 fee for each unit sold beyond established targets, with potential increases over time. A copy of AQMD's presentation on the proposed rules is attached for reference.
A number of other jurisdictions have already expressed formal opposition of the PARs to SCAQMD, including the Cities of Chino, La Verne, Lakewood, and Redlands Regular Meeting of 05-20-2025 206 of 1269
Yorba Linda. The San Bernardino Council of Governments, of which Redlands is a member, also adopted a resolution opposing the PARs. Mayor Pro Tem Shaw has requested that the City Council discuss this matter and, if in agreement, authorize the Mayor to send a letter on behalf of the City to SQAQMD opposing the adoption and implementation of the PARs. A draft opposition letter is Attachment 3 to this report. PAR 1111
As currently proposed, on and after the applicable compliance date, no person shall manufacture, supply, sell, resell, offer for sale, import, or install, any furnace for use in the South Coast AQMD, that exceed the NOx emission limits.
The applicable compliance dates for New Building types shall be determined based on the construction or alteration completion date.
Equipment Category NOx Emission
Limit (ng/j)
Building
Type
Compliance
Date
Residential
Fan-Central Furnace 0.0
New
Existing
Jan. 1, 2027
Jan. 1, 2029
Mobile Home Furnace 0.0 New Jan. 1, 2027
Wall Furnaces &
Floor Furnaces 0.0
New
Existing
Jan. 1, 2027
Jan. 1, 2029
PAR 1121
As currently proposed, on and after the applicable compliance dates, no person shall manufacture, supply, sell, resell, offer for sale, import, or install a Water Heater for use in the South Coast AQMD that exceeds the NOx emission limits.
The applicable compliance dates for New Building types shall be determined based on the construction or alteration completion date.
Equipment Type NOx Limit
(ng/j)
Building
Type
Compliance
Date
Water Heater 0.0 New
Existing
Jan. 1, 2027
Jan. 1, 2029
Mobile Home Water
Heater 0.0 New Jan. 1, 2027
PAR 1111 and 1121 are currently in draft phase. SCAQMD is currently anticipating releasing updated PARs in early April, and a tentative public hearing date scheduled for May 2, 2025, for approval of the PARs.
Estimated Replacement Costs
Redlands Regular Meeting of 05-20-2025 207 of 1269
Estimates from an SCAQMD draft staff report on the PARs show replacement costs for space heaters ranging from $18,500 to $21,500 if an electric panel upgrade is needed. For water heater replacements, the cost to go electric ranges from approximately $5,200 to $8,200.
Incentives
SCAQMD's Governing Board approved Go Zero, a zero-emission pilot incentive program for residents and small businesses to adopt zero-NOx emission space and water heating appliances. GO Zero will be funded with $21 million and elements of the rebate program are anticipated to include:
Single Family Residential ($9 million)
Multi-Family Residential ($5 million)
Small Business ($5 million)
Installer training ($1 million)
Outreach and application assistance, with an emphasis on overburdened communities ($1 million)
As of AQMD's February 2025 Working Group meeting, the estimated rebate program incentives for the aforementioned categories are as follows:
Single Family Resident Rebate: $1,000 to $3,000 per unit.
Multi-Family Resident Rebate: $1,000 to $3,000 per unit, with a cap of $300,000.
Small Business Rebate: $4,000 per unit.
It is important to note that the exact details of the Go Zero pilot incentive program have yet to be formally approved.
SUBMITTED BY:
Christopher Boatman, Assistant City Manager
REVIEWED BY:
Charles M. Duggan, Jr., City Manager
PREPARED BY:
Ross Wittman, Economic Development Coordinator
Fiscal Impact
Discussion:
There is no fiscal impact associated with staff sending a letter to AQMD opposing the draft guidelines.
Redlands Regular Meeting of 05-20-2025 208 of 1269
Attachments
AQMD Presentation
Proposed Amended Rule 1111 - Draft (March 2025)
Proposed Amended Rule 1121 - Draft (March 2025)
SCAQMD - Letter of Oppos
Redlands Regular Meeting of 05-20-2025 209 of 1269
Proposed Amended Rule 1111 –
Reduction Of NOx Emissions From Natural
Gas-Fired Furnaces (PAR 1111)
Proposed Amended Rule 1121 –
Reduction of NOx Emissions From
Residential-Type, Natural Gas-Fired Water
Heaters (PAR 1121)
Public Consultation
March 6, 2025
Join Zoom Webinar Meeting - from PC or Laptop
https://scaqmd.zoom.us/j/97271436016
Zoom Webinar ID: 972 7143 6016 (applies to all)
1 Redlands Regular Meeting of 05-20-2025 210 of 1269
Agenda
Background Rule Concepts
PAR 1111 Third
Preliminary Draft
Rule Language
PAR 1121 Third
Preliminary Draft
Rule Language
Updates to CostEffectivenessSocioeconomic
Impacts
California
Environmental
Quality Act (CEQA)
Next Steps
2 Redlands Regular Meeting of 05-20-2025 211 of 1269
Background
Redlands Regular Meeting of 05-20-2025 212 of 1269
Background
• Our region fails to meet multiple national air quality standards • Oxides of Nitrogen (NOx) is the key pollutant that must be controlled to address air quality
• Under Federal law, areas that fail to meet air quality standards by required deadlines face potential sanctions
• Most severe is loss of federal highway funds
• We estimate we need to cut NOx over 67% to meet air quality standards by the 2037 deadline
• Requires that we adopt zero-emission technologies to replace combustion wherever feasible
4 Redlands Regular Meeting of 05-20-2025 213 of 1269
2022 AQMP Control Measures
2022 Air Quality Management Plan adopted December 2, 2022 • Established path for meeting federal ozone standards
• Seeking to require zero-emission technologies across all sections, wherever feasible, to meet stringent standards
Control Measures R-CMB-01 and R-CMB-02 aim to reduce NOx emissions for residential-type space and water heating appliances, with a focus on zero-emission standards
• PAR 1111 will implement Control Measure R-CMB-02
• PAR 1121 will implement Control Measure R-CMB-01
5 Redlands Regular Meeting of 05-20-2025 214 of 1269
Rule 1111 Regulatory History
Rule 1111 was adopted on December 1, 1978
• Applies to natural gas-fired furnaces less than 175,000 Btu/hr • Established NOx emission limit of 40 ng/J for natural gas-fired furnaces Amended on November 6, 2009
• Lowered NOx emission limit from 40 ng/J to 14 ng/J with effective dates from October 2014 to October 2016
• Set emission limit for mobile homes at 40 ng/J by October 2012 and 14 ng/J by October 2018 Amended on September 5, 2014
• Provided alternative compliance option through mitigation fees • Amended six times from 2018 – 2023 to extend the mitigation fee end dates, increase mitigation fees, and allow limited exemptions for furnaces at high altitude 6 Redlands Regular Meeting of 05-20-2025 215 of 1269
Rule 1121 Regulatory History
Rule 1121 was adopted on December 1, 1978
• Applies to natural gas-fired water heaters less than 75,000 Btu/hr • Set emissions limit to 40 ng/J for gas-fired residential water heaters and 50 ng/J for gas-fired mobile home water heaters effective in 1982
Amended December 10, 1999
• Reduce emissions limit in two steps from 40 ng/J to 20 ng/J to 10 ng/J (effective January 2005) • Mitigation fee as alternative to meeting interim limit • Mobile home emissions limit reduced to 40 ng/J (effective January 2000) Most recently amended on September 3, 2004
• Extended the compliance dates and mitigation fee period 7 Redlands Regular Meeting of 05-20-2025 216 of 1269
PAR 1111 and PAR 1121 Rulemaking Process
• PAR 1111 and PAR 1121 were developed through a public process that started in the fourth quarter of 2023
• Includes a series of working group meetings, individual stakeholder meetings, and site visits to affected facilities
• Conducted Public Workshop on October 3, 2024
• Updated Stationary Source Committee on October 18, 2024, December 20, 2024, and February 21, 2025
October
5, 2023
November
28, 2023
January 31,
2024
April
4, 2024
June
20, 2024
August
15, 2024
December
4, 2024
February
13, 2025
Working Group Meetings:
8 Redlands Regular Meeting of 05-20-2025 217 of 1269
Proposed Rule Amendment
• Preliminary draft PAR 1111 and PAR 1121 with original rule proposal shared at the Public Workshop
• Over 200 written comments and many verbal comments received for the original rule proposal • About 70 percent comments opposing the original rule proposal • Staff revised the original rule proposal and proposed a new rule concept • Presented at Working Group Meeting #8 on February 13, 2025 Original Rule Concept
• Zero-emission standards for new and existing
buildings based on future effective dates
• Included several alternative compliance
options for emergency replacement,
construction, etc.
New Rule Concept
• Replace other alterative options with
manufacturer sales target for zero-emission
and NOx-emitting appliances
• Not expanding space heating rule
applicability to commercial size furnaces
• Propose including those units in future rule
9 Redlands Regular Meeting of 05-20-2025 218 of 1269
Original Rule
Concepts
Redlands Regular Meeting of 05-20-2025 219 of 1269
Original Rule Concept
Applicability
• Expand PAR 1111 applicability from 175,000 Btu/hr to 2 million Btu/hr • No change to PAR 1121 applicability
New Residential Structures
• Require zero-emission appliances California building code already requires zero-ready starting 2026 Existing Residential Structures
• Require replaced appliances to meet zero-NOx-emissions standard beginning in 2029 when equipment needs to be replaced
• Staff proposed alternative compliance options for certain situations • Emergency replacements
• Stranded asset from newer AC unit
• Multifamily buildings
• Installations in high altitude regions
11 Redlands Regular Meeting of 05-20-2025 220 of 1269
Key Comments on Original Rule Concept
• Over 200 comment letters received from October
2024 to February 2025 for the original rule concept
• ~70% letter opposed the original rule concept
• Key comments include:
• Affordability, especially for low-income
• Lack of consumer choice if rule mandates a
complete conversion to zero-emission technologies
• Concerns about zero-emission technology readiness
• Concerns about electricity demand and grid
sustainability
• Proposed rules will impact small units in schools
and businesses
12 Redlands Regular Meeting of 05-20-2025 221 of 1269
New Rule
Concepts
Redlands Regular Meeting of 05-20-2025 222 of 1269
New Rule Concept – Revert PAR 1111 Applicability
Both PAR 1111 and PAR 1121 apply to appliances based on size (e.g., rated heat input capacity)
Initially PAR 1111 (space heating) proposed to expand applicability from 175,000 Btu/hr to 2 million Btu/hr
Staff recommending to revise proposal to keep current PAR 1111 applicability (up to 175,000 Btu/hr)
Future rulemaking will address commercial furnaces with heat input between 175,000 Btu/hr and 2 million Btu/hr
14 Redlands Regular Meeting of 05-20-2025 223 of 1269
Revised Proposal for PARs 1111 and 1121
• Removed mandate to meet zero-emission standard
• Set compliance goals that allow manufacturers to sell NOx-emitting units and zero-emission units (new and existing buildings) • Compliance goals change over time, creating a glide path for zeroemission units • Allows manufacturers to sell units that meet current NOx limit • Mitigation fee applicable to NOx-emitting units
Zero-Emission and NOx Emission Standard
Manufacturer Approach
15 Redlands Regular Meeting of 05-20-2025 224 of 1269
Manufacturer Alternative Compliance Targets and
Effective Dates
Target Dates 2027-2028 2029-2032 2033-2035 2036 and
after
NOx
Emitting
Units
(e.g. gas)
70% 50% 25% 10%
Zero-NOx
Emission
Units
30% 50% 75% 90%
16 Redlands Regular Meeting of 05-20-2025 225 of 1269
Manufacturer Alternative Compliance Mitigation Fee
• Zero-emission manufacturer option would be combined with mitigation fees • Fee will partially mitigate emissions forgone from the alternative compliance option • Provide a revenue stream for Go Zero incentive program • Manufacturers previously paid $150 - $450 mitigation fee per 40 ng/J gas furnace • Proposing nominal fee to incentivize transition to zero-emission technologies without putting undue financial burden on homeowners
Mitigation fee for all gas units sold after 2027
• $100/NOx emitting furnace
• $50/NOx emitting water heater
• $500 mitigation fee for each NOx emitting unit sold over target* • Discounted fee if zero-emission goal exceeded
* Considering increasing fee over time
17 Redlands Regular Meeting of 05-20-2025 226 of 1269
Zero-NOx Standard for New Buildings
• California Title 24 Building Code includes zero-NOx emission appliance ready requirements starting January 1, 2026
• Requirement is not prescriptive, some NOx-emitting units can be installed • Proposed space and water heating rules include flexibility to sell both NOx-emitting and zero-NOx emission appliances
• Zero-NOx Emission Manufacturer Alternative Compliance Option starting January 1, 2027
• 2026 calendar year will have limited flexibility in current form • Staff proposing to delay the New Building zero-NOx emission standard until January 1, 2027 to align with Zero-NOx Emission Manufacturer Alternative Compliance Option 18 Redlands Regular Meeting of 05-20-2025 227 of 1269
Affordability, especially for low-income residents
• Individual decision as gas units will still be available Lack of consumer choice
• Homeowners will have a choice to purchase gas unit or zero-emission unit Concerns about zero-emission technology readiness
• Slower transition to zero-emission allows more technology development Concerns about electricity demand and grid sustainability • Slower transition will slow demand increase and time to meet future demand Concerns on implementation in schools and small business • With revised applicability, units are small size and mainly for residential installation How the New Rule Concept Addresses Comments
19 Redlands Regular Meeting of 05-20-2025 228 of 1269
Other Benefits to New Proposed Rule Concept Address
Concerns
Simplifies the proposed rules,
removes other alternative
compliance options
•Original concept put more
responsibility on the installer
• Request delays for
construction
•Notify for emergency
replacements
Mitigation fee will help fund
Go Zero
• Provides funding source
• Longer life of the program
• Focus on low-income
residents
20 Redlands Regular Meeting of 05-20-2025 229 of 1269
Proposed Changes to
Mobile Home Appliance
Requirements
Redlands Regular Meeting of 05-20-2025 230 of 1269
Changes Proposed for Mobile Home Appliances
• Mobile home appliances have unique challenges such as:
• Special design to accommodate smaller closet space for installations; and • Additional regulation by Department of Housing and Urban Development • Compared to single-family homes, mobile homes are more frequently replaced by new mobile homes
• Proposing to remove future effective zero-NOx emission limit for existing mobile homes • Appliances to transition to zero-NOx emissions once mobile homes are replaced, not when appliance is replaced
• Exemption for mobile homes located at master metered mobile home parks due to electricity limitations at the parks
Prior rule proposal included future effective date for zero-NOx emission limit for existing mobile home appliances
22 Redlands Regular Meeting of 05-20-2025 231 of 1269
Mobile Home Furnaces NOx Limit Background
NOx limit for Mobile Home Furnaces lowered from 40 to 14 ng/J at the 2009 amendment
• Rule 1111 includes an alternative compliance option in the 2014 amendment that allowed for mitigation fees in lieu of complying with NOx limit Mobile home furnaces currently designed to meet 40 ng/J standard • All manufacturers opting to comply through the alternative compliance mitigation fee option
• Current sunset date is September 30, 2025
• Manufacturers have zero-NOx emission units commercially available and installed in new mobile homes
23 Redlands Regular Meeting of 05-20-2025 232 of 1269
Staff Proposal for Mobile Home Furnaces
Require zero-NOx emission
appliances for new mobile
homes
• Mobile home furnaces for installation in
existing buildings continue to comply with
Table 1 NOx emission limit or comply with
Mitigation Fee Alternative Compliance
Option
Align mobile home mitigation
fee with proposed zero-NOx
emission manufacturer fee
• Current mitigation fee is $150 per unit
• Proposing to change to $100 on and after
October 1, 2025
24 Redlands Regular Meeting of 05-20-2025 233 of 1269
PAR 1111
Third Preliminary
Draft Rule
Redlands Regular Meeting of 05-20-2025 234 of 1269
PAR 1111 Applicability
• Reverted to current rule applicability
• Rated heat input capacity less than 175,000 Btu/hr, or for combination heating and cooling units, a cooling rate of less than 65,000 Btu per hour • Furnaces with heat input rated between 175,000 Btu/hr and 2 million Btu/hr will be addressed in future rulemaking
26 Redlands Regular Meeting of 05-20-2025 235 of 1269
Definitions
• Removed the definition for Commercial Furnace
• Updated Floor Furnace and Wall Furnace definitions on the rated heated input capacity to less than 175,000 Btu per hour
• Added Zero-NOx Emission Unit definition
• Used in the new manufacturer alternative compliance option 27 Redlands Regular Meeting of 05-20-2025 236 of 1269
Table 1 Emission Requirements
• Table 1 limits are applicable prior to Table 2 zero-NOx emission limit compliance date • Not proposing zero-NOx emission limit for mobile home furnaces in existing buildings, which will remain subject to Table 1
28 Redlands Regular Meeting of 05-20-2025 237 of 1269
Zero-NOx Emission Requirements Table 2
• Removed commercial furnace
requirement
• Removed Mobile Home Furnace ZeroNOx emission requirement for existing buildings
• Changed new buildings compliance dates
• From January 1, 2026, to January 1,
2027
• Aligns with the zero-NOx emission
compliance option
29 Redlands Regular Meeting of 05-20-2025 238 of 1269
Mobile Home Furnace Alternative Compliance for 14 ng/J
NOx Limit
• Mobile home mitigation fee alternative
compliance option for $150 per unit
• Ends on September 30, 2025, in current
rule
• Revised the fee to align with mitigation
fee rate for other furnaces under the new
manufacturer alternative compliance
target
• Effective on October 1, 2025
30 Redlands Regular Meeting of 05-20-2025 239 of 1269
ZEM Alternative Compliance
Option • Establishes zero
-NOx emission
manufacturer alternative compliance
option • Manufacturer submits an alternative
compliance plan by November 1, 2026, to
enroll in this option
• Comply with the specified sales targets • Pay mitigation fee for each NOx-emitting unit
• Submit report and payment 90 days after
each compliance year
31 Redlands Regular Meeting of 05-20-2025 240 of 1269
ZEM Alternative Compliance Option - Cont.
• Table 3 for ZEM alternative compliance
option targets and mitigation fee
schedule
• $100 for each furnace
• Higher fee for each furnace over
furnace sales target
32 Redlands Regular Meeting of 05-20-2025 241 of 1269
ZEM Alternative Compliance
Option - Cont.
• Establishes a mechanism to incentivize
manufacturers to sell more zero-NOx
emission units
• Higher fee for each furnace over
furnace sales target
• Discounted mitigation fee determined
by the equation for zero-NOx emission
units sold greater than their target
33 Redlands Regular Meeting of 05-20-2025 242 of 1269
Considerations for ZEM Sales Targets
Determining sales targets will be complicated for some zero-emission systems Minisplit heat pumps and electric resistance wall or floor furnaces are non-ducted units, non-centralized systems
Larger homes may have multiple units installed to replace one NOx-emitting furnace
Staff is considering mechanisms to address this potential discrepancy 34 Redlands Regular Meeting of 05-20-2025 243 of 1269
Informative Materials for
Mobile Home Furnaces • Existing labeling requirements for mobile home furnaces under
mitigation fee alternative
compliance option • Relied on informative materials
to display the labeling language
• Adjusted the language to reflect
the fee revision
35 Redlands Regular Meeting of 05-20-2025 244 of 1269
Reporting and Recordkeeping for ZEM Alternative
Compliance Option
• Establishes reporting and recordkeeping
requirements for manufacturers
utilizing ZEM alternative compliance
option
• Specifies recordkeeping requirements
• Information shall be maintained for at
least five years and made available
upon request
36 Redlands Regular Meeting of 05-20-2025 245 of 1269
Exemption
• Specifies the exemption from zero-NOx
emission limits under paragraph (d)(2),
for: • Mobile home furnaces for installation
in existing buildings;
• Mobile home furnace installations in
new and existing buildings in master
metered mobile home parks
• New buildings with building permit
issued prior to the date of rule
adoption
37 Redlands Regular Meeting of 05-20-2025 246 of 1269
PAR 1121
Third Preliminary
Draft Rule
Redlands Regular Meeting of 05-20-2025 247 of 1269
Definitions
• Added two definitions that will
be used in the new
manufacturer alternative
compliance option
• Responsible Official
• Zero-NOx Emission Unit
39 Redlands Regular Meeting of 05-20-2025 248 of 1269
Table 1 Emission Requirements
• Table 1 limits are applicable prior to
Table 2 zero-NOx emission limit
compliance date
• Not proposing zero-NOx emission
limit for mobile home water
heaters in existing buildings,
which will remain subject to
Table 1
40 Redlands Regular Meeting of 05-20-2025 249 of 1269
Zero-NOx Emission Requirements Table 2
• Removed Mobile Home Water Heater
Zero-NOx emission requirement for
existing buildings
• Continue to comply with 40 ng/J, or
55 ppmv NOx emission limit
• Changed Zero-NOx emission
requirement for new buildings
• From January 1, 2026, to January 1,
2027
41 Redlands Regular Meeting of 05-20-2025 250 of 1269
ZEM Alternative
Compliance Option
• Establishes zero-emission manufacturer
alternative compliance option • Manufacturers submit an alternative compliance plan by November 1,
2026, to enroll in this option
• Comply with the specified sales
targets
• Pay mitigation fee for each NOx-
emitting unit
• Submit report and payment 90 days
after each compliance year
42 Redlands Regular Meeting of 05-20-2025 251 of 1269
ZEM Alternative Compliance Option - Cont.
• Table 3 for ZEM alternative compliance
option sales targets and mitigation fee
schedule
• $50 for each water heater
• Higher fee for each water heater over
water heater sales target
43 Redlands Regular Meeting of 05-20-2025 252 of 1269
ZEM Alternative Compliance Option - Cont.
• Establishes a mechanism to incentivize
manufacturers to sell more zero-NOx
emission units
• Higher fee for each water heater over
water heater sales target
• Discounted mitigation fee determined
by the equation for zero-NOx
emission units sold greater than their
target
44 Redlands Regular Meeting of 05-20-2025 253 of 1269
Informative Materials for Mobile Home Water Heaters
• Mirror Rule 1111 “informative
materials” requirements for NOxemitting mobile home water heaters • On and after January 1, 2027,
zero-emission limit will apply to
new mobile homes but not
existing mobile homes
45 Redlands Regular Meeting of 05-20-2025 254 of 1269
Reporting and Recordkeeping for ZEM Alternative
Compliance Option
• Specifies reporting requirements for
manufacturers utilizing ZEM alternative
compliance option
• Specifies recordkeeping requirements
• Information shall be maintained for at
least five years and made available
upon request
46 Redlands Regular Meeting of 05-20-2025 255 of 1269
Exemption
• Specifies the exemption from zero-NOx emission limits under paragraph (d)(2), for:
• Mobile home water heaters for installation in existing buildings; • Mobile home water heater installations in new and existing buildings in master metered mobile home parks
• New buildings with building permit issued prior to the date of rule adoption 47 Redlands Regular Meeting of 05-20-2025 256 of 1269
Updates to Cost
Assumptions
Redlands Regular Meeting of 05-20-2025 257 of 1269
• Staff considers upfront “project costs” and lifetime operational costs • Customers will have choice to transition to zero-emission units upon unit replacement, so costs considered are incremental costs
Cost-Effectiveness Assessment
Upfront project cost
Unit, installation, panel upsizing,
and other electrical work
Fuel switching cost difference
Difference between the gas and
electricity utility rate and
appliance efficiency
• Electricity rates are higher than natural
gas, but heat pumps are 3 – 5 times
more efficient than conventional units
which can result in lifetime cost savings
49 Redlands Regular Meeting of 05-20-2025 258 of 1269
Staff updated cost assessment to reflect most
recent available cost data (i.e., 2024-dollars)
Staff updated:
• Project costs
• Utility rates based on updated projection
• Annual fuel use for fuel switch cost
• Staff looked at lifetime operational costs based
on different climate zones
• South Coast AQMD is a diverse region
• Installation and utility costs can vary for
mountain, inland, city, and coastal installations
Summary of Updated Costs
50 Redlands Regular Meeting of 05-20-2025 259 of 1269
Updated Space and
Water Heating Project
Costs
51 Redlands Regular Meeting of 05-20-2025 260 of 1269
Updated Zero-NOx Emission Appliance Project Costs
Staff uses the TECH Clean California real-world project cost for heat pump installations
• Cost data available in publicly searchable database by county • Previous cost estimates relied on data from 2021 – June 2024 • Updated to only consider 2024 costs
• Include comparison of full dataset to 2024 data
• Updated to weighed cost by population of each county (vs. region average previously) Staff uses median project costs for cost-effectiveness
assessment
• More representative of costs than average
• Less sensitive to outliers
52 Redlands Regular Meeting of 05-20-2025 261 of 1269
Evaluation of TECH Data for Single-Family Space Heating Space Heating (PAR 1111)
• Median costs for 2024 similar to past data
• Update will not have a significant impact on cost-effectiveness assessment TECH Single Family HP HVAC Installations: 2021-2024
Number of Installations 10,223
Percentage Needing
Electrical Service Upgrade 3.8%
Percentage Installed in
Disadvantaged Community 15.1%
Project Cost Average ($) 20,000
Project Cost Median ($) 18,000
TECH Single Family HP HVAC Installations: 2024
Number of Installations 3,074
Percentage Needing
Electrical Service Upgrade 3.7%
Percentage Installed in
Disadvantaged Community 13.6%
Project Cost Average ($) 21,100
Project Cost Median ($) 19,000
Project Cost Weighted by
County Population ($) 19,000
53 Redlands Regular Meeting of 05-20-2025 262 of 1269
Multifamily Space Heating TECH Data
Installations in 2022-2024
Total Number of Properties 964
Total Number of Units Installed 1,211
Percentage Installed in
Disadvantaged Community 32.5%
Cost per Unit Average ($) 6,200
Cost per Unit Median ($) 6,000
Installations in 2023-2024
Total Number of Properties 839
Total Number of Units Installed 1,060
Percentage Installed in
Disadvantaged Community 25.0%
Cost per Unit Average ($) 6,300
Cost per Unit Median ($) 6,000
Project Cost Weighted by
County Population ($) 5,900
• Staff used data from 2023-2024 since there is no 2024 data for some counties • Median costs same as past data
Space Heating (PAR 1111)
54 Redlands Regular Meeting of 05-20-2025 263 of 1269
Single-Family and Multifamily* Water Heating
• Significant increase in the number of units installed • Median costs for 2024 higher than past data
• Increase may be influenced by significant increase in incentive funds • Update will increase cost-effectiveness assessment
Installations from 2021-2024
Number of Installations 1,644
Percentage Needing Panel
Upgrades 15.4%
Percentage Installed in
Disadvantaged Community 38.3%
Project Cost Average ($) 6,500
Project Cost Median ($) 5,800
Installations in 2024
Number of Installations 1,212
Percentage Needing Panel
Upgrades 15.8%
Percentage Installed in
Disadvantaged Community 46.7%
Project Cost Average ($) 6,800
Project Cost Median ($) 6,900
Project Cost Weighted by
County Population ($) 5,400
* Due to insufficient sample size in tech data for multifamily water heating, staff relied on single-family cost Water Heating (PAR 1121)
55 Redlands Regular Meeting of 05-20-2025 264 of 1269
Updated NOx-Emitting Appliance Project Costs
Staff uses the E3 “Residential Building Electrification in California” for the NOx-emitting appliance cost
Same source as previous cost-effectiveness calculation
• Adjusted from 2019 to 2024 for inflation
Cost is weighted to housing type (new construction, 90’s construction, etc.) based on Census data
• Previously used region-wide housing type weighed cost • The update refined the cost by further weighing the cost by population of each county
56 Redlands Regular Meeting of 05-20-2025 265 of 1269
Updated NOx-Emitting Space Heating Project Costs
E3 NOx-Emitting
Space Heating Appliance Costs ($): 2023
Single-Family HVAC 18,800
Multifamily HVAC 12,400
Single Family Furnace Only 10,000
Multifamily Furnace Only 6,600
E3 NOx-Emitting
Space Heating Appliance Costs ($): 2024
Single-Family 20,000
Multifamily 12,000
Single Family Furnace Only 11,000
Multifamily Furnace Only 7,300
• Comparing previous costs (2023) and updated costs (2024) • Slight change of NOx-emitting appliance project costs 57 Redlands Regular Meeting of 05-20-2025 266 of 1269
Updated NOx-Emitting Appliance Project Costs
E3 NOx-Emitting
Water Heating Appliance Costs ($): 2023
Single-Family 3,000
Multifamily 2,700
E3 NOx-Emitting
Water Heating Appliance Costs ($): 2024
Single-Family 3,300
Multifamily 3,300
• Comparing previous costs (2023) and updated costs (2024) • Slight change of NOx-emitting appliance project costs 58 Redlands Regular Meeting of 05-20-2025 267 of 1269
Project Cost Summary
Appliance Type Property Type Installation Type Zero-NOx Emission Unit Costs ($)
NOx-Emitting Unit
Cost ($)
Additional Project
Cost for Choosing
Zero-NOx Emission
Unit ($)
Space Heating
(Rule 1111)
Single-Family
Furnace + AC to
Heat Pump 19,000 20,000 -1,000
Furnace to
Heat Pump 19,000 11,000 10,000
Multifamily
(Cost per unit)
Furnace + AC to
Heat Pump 5,900 12,000 -6,100
Furnace to
Heat Pump 5,900 7,300 -1,400
Water Heating
(Rule 1121)
Single-Family Water Heater 5,400 3,300 2,100
Multifamily Water Heater 5,400 3,300 2,100
59 Redlands Regular Meeting of 05-20-2025 268 of 1269
2024 data
showed some
increases to the
project costs
Space heating costs have been consistent
Technology is more mature
Increases were more dramatic for water heating
New plug-in 120V units have significantly lower
cost
Higher incentives may drive up project costs
Offset homeowner costs
Conclusion on Cost Updates
60 Redlands Regular Meeting of 05-20-2025 269 of 1269
Estimated Fuel Switching Costs
61 Redlands Regular Meeting of 05-20-2025 270 of 1269
Utility Rate Forecast
• Staff relies on the California Energy Commission’s
Integrated Energy Progress Report (IEPR) to estimate
future utility costs (i.e., gas and electricity rates)
• Cost of operating zero-NOx emitting appliance
• Typically, an electric heat pump
• Cost of operating NOx-emitting appliance
• Typically, a natural gas furnace
• Used residential rate for single-family home and
multifamily homes
62 Redlands Regular Meeting of 05-20-2025 271 of 1269
Updated Utility Rate Forecast
Prior assessment relied on 2023 forecast
for electricity and natural gas rates
Forecast shows natural gas prices increasing at
a higher rate than electricity prices
As demand for natural gas decreases, rates
expected to increase as fewer consumers left
to pay to maintain aging gas infrastructure
December 2024, IEPR updated their
electricity rate forecast
Estimated both residential and commercial
electricity rates will increase by ~$0.03 per
kWh from prior forecast
63 Redlands Regular Meeting of 05-20-2025 272 of 1269
Climate Zone Fuel Use Assessment
• The South Coast AQMD region ranges from coast
to mountains covering five climate zones
• Different weather patterns by various climate
zones could cause distinction of fuel use
• Income and economy difference may also mean
varied equipment installation costs
• Prior analysis assumed same fuel use costs across
the region
• To understand the fuel switching costs for regions
within the South Coast AQMD, staff evaluated
fuel use by climate zone for space heating
• Water heating cost not impacted by climate
zone so cost by climate zone not available
Climate
Zone County Fuel Use
6 8 Los Angeles and Orange
9 10
Riverside and San Bernardino
16 64
Redlands Regular Meeting of 05-20-2025 273 of 1269
Fuel Use and Fuel Switching Costs
• California Energy Commission Residential Appliance Saturation Study (RASS) used for fuel use for heat pumps and natural gasfired units • Fuel use for zones 6, 8, 9, 10, and 16 were used and averaged based on counties represented by the climate zones
• Fuel use for other climate zones in the South Coast AQMD, such as climate zone 15, not available
𝐹𝑢𝑒𝑙 𝑆𝑤𝑖𝑡𝑐ℎ𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 =
annual electricity use ∗ average electricity rate over unit lifetime − (annual gas use ∗ average gas rate over unit lifetime)
Image Source: Redwood Energy
65 Redlands Regular Meeting of 05-20-2025 274 of 1269
Updates to Fuel Switching Costs
Rule Housing Type Installation Type Replacement Previous Cost ($) Updated Cost ($) Space
Heating
(Rule 1111)
Single-Family Furnace Heat Pump -$1,900 -$750
Multifamily Furnace Heat Pump $200 -$200
Water
Heating
(Rule 1121)
Single-Family Water Heater Heat Pump -$1,400 -$1,100
Multifamily Water Heater Heat Pump -$1,400 -$1,100
• As mentioned in previous slides, RASS data by climate zones used for annual fuel use for:
• Zero-NOx emission units (e.g., heat pumps); and
• Natural gas-fired units
• Updated fuel switching costs equate to less savings, except for multifamily • All scenarios show fuel switching cost savings
• Utilities bills will be lower
66 Redlands Regular Meeting of 05-20-2025 275 of 1269
Climate zone assessment shows more nuanced fuel
switching impacts
Fuel switching assessment shows cost savings to operate a heat pump versus NOx-emitting furnace
High efficiency of the heat pump offsets the higher cost of electricity
Conclusion on Fuel Switching Cost Update
67 Redlands Regular Meeting of 05-20-2025 276 of 1269
Updated CostEffectiveness
Assessment
Redlands Regular Meeting of 05-20-2025 277 of 1269
BARCT assessment requires proposed NOx limits to be technically feasible and cost effective
2022 Air Quality Management Plan established a cost-effectiveness screening threshold using a health benefit-cost approach • Threshold shall be inflation-adjusted based on the year the costs are brought into analysis
• 2022 AQMP threshold = $325,000 per ton of NOx reductions by 2021 dollars • Previous analysis = $349,000 per ton of NOx reductions by 2022 dollars • Updated threshold = $383,000 per ton of NOx reductions by 2024 dollars If cost-effectiveness is above the screening threshold, alternative compliance options must be available
Updated Cost-Effectiveness Screening Threshold
69 Redlands Regular Meeting of 05-20-2025 278 of 1269
Cost-Effectiveness Calculation
𝐶𝑜𝑠𝑡 𝐸𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒𝑛𝑒𝑠𝑠 ൗ
$
𝑡𝑜𝑛𝑠 𝑁𝑂𝑥 𝑟𝑒𝑑𝑢𝑐𝑒𝑑
=
𝐶𝑜𝑠𝑡 𝐷𝑖𝑓𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑖𝑛 𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡 + (𝐹𝑢𝑒𝑙 𝑆𝑤𝑖𝑡𝑐ℎ𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 ∗ 𝑃𝑉𝐹) 𝐿𝑖𝑓𝑒𝑡𝑖𝑚𝑒 𝐸𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑅𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠
• Costs calculated using following variables and
sources:
•Upfront Project Costs
• Annual Fuel Switching Costs
• Present Value Factor (PVF) = current worth of
future sum of money
r = real interest rate (discount rate, 4%)
N = years of equipment life
Present Value Factor (PVF) Equation
70 Redlands Regular Meeting of 05-20-2025 279 of 1269
Updated Cost-Effectiveness Assumptions
Project Cost
Assumptions:
• 2024 costs weighted by county
• Proposal considers replacement at the end of unit lifetime • Project costs are the difference in cost between NOx emitting and Zero-NOx emitting appliances
Annual Operating Costs
are the Fuel Switching
Cost:
• Fuel use based on California Energy Commission Residential Appliance Saturation Study
• 2024 IEPR electricity and gas demand
• Weighted by climate zone
Present Value Factor
(PVF) = current worth of
future sum of money
• Based on equipment lifetime
• 25 years for space heating
• 15 years for water heating
71 Redlands Regular Meeting of 05-20-2025 280 of 1269
Updated Cost-Effectiveness for Space and Water Heating
Housing Type Scenario Cost-Effectiveness
($/ton NOx)
Single-Family
Heat Pump Replacing Furnace + AC -592,000
Heat Pump Replacing Furnace only 1,730,000
Multifamily
Heat Pump Replacing Furnace + AC -785,000
Heat Pump Replacing Furnace only -197,000
Housing Type Scenario Cost-Effectiveness
($/ton NOx)
Single-Family and
Multifamily
Heat Pump Replacing Conventional
Tank Type Water Heater 405,000
Space Heating (PAR 1111)
Water Heating (PAR 1121)
72 Redlands Regular Meeting of 05-20-2025 281 of 1269
Conclusion on Cost-Effectiveness
Space Heating (PAR 1111)
• Cost-effectiveness below screening threshold for a heat pump replacing a HVAC system • High cost-effectiveness for replacing a furnace only with a heat pump • Other lower cost zero-emission technologies exist
Water Heating (PAR 1121)
• Based on updated costs, cost-effectiveness just above screening threshold for heat pump replacing NOxemitting water heater • Other lower cost zero-emission technologies exist
Zero-Emission Manufacturer Alternative Compliance Option addresses the cost and concern for consumer choice
• Both zero-NOx emission units and NOx-emitting units will be available • Homeowners with high-cost installations can choose to install a NOx-emitting unit 73 Redlands Regular Meeting of 05-20-2025 282 of 1269
Zero-Emission Space Heating Options
• Project costs ~$9,800, about
$1,200 cheaper than NOxemitting unit
• Not preferable in colder climates
• High cost to operate
• Cost-effective option for where
space heating demand is low,
e.g., coastal regions
Electric Resistance
• Project cost of $2,000 - $8,800
per single zone unit and a fivezone unit averages $4,800 - $18,000 for large home
• Comprised of indoor and
outdoor unit
• Multiple zones allow room level
temperature control
• Less expensive to operate than
heating/ cooling the entire living
space
Minisplit
• Low-cost alternative that costs
~$500 per unit, versus ~$300 for
window AC
• Unit that straddle units
developed as a low-cost solution
at ~$3,800 per unit
• Wall/window units that can be
quickly installed without the
need for an installer
Wall and Window
Units
Source:
https://www.gradientcomfort.com/
Source:
https://www.bobvila.com/articles/minisplit-installation-cost Source:
https://www.angi.com/articles/how-muchdoes-it-cost-install-electric-furnace.htm 74 Redlands Regular Meeting of 05-20-2025 283 of 1269
Zero-Emission Water Heating Options
TECH Clean California real-world project cost
240V vs. 120V Installations in the South Coast AQMD in 2024 • 120V heat pump water heaters
introduced in 2023
• Designed for existing building retrofits
• 120V heat pump water heaters have
lower percentage that need a panel
upgrade
• Plug into a standard wall socket
• Promising solution for retrofits and
installation in disadvantaged
communities
240V & 120V 240V 120V
Number of Installations 1,212 1,006 206
Percentage Needing
Electrical Upgrades 15.8% 18.6% 2.4%
Percentage Installed in
Disadvantaged Community 46.7% 42.7% 66.0%
Project Cost Median ($) 6,900 7,100 3,900
120V Zero
Emission Cost($)
NOx Emitting
Cost ($)
Project Cost
Saving ($)
Lifetime Utility
Savings ($)
Water Heater 3,300 3,900 600 1,100
120V Costs Compared with NOx Emitting Water Heater
75 Redlands Regular Meeting of 05-20-2025 284 of 1269
Socioeconomic Impact Assessment
• A Socioeconomic Impact Assessment will be prepared and released for public review and comment at least 30 days prior to the South Coast AQMD Governing Board Hearing for PAR 1111 and PAR 1121, which is scheduled for May 2, 2025 (subject to change)
• The analysis will consider:
• Range of probable costs or savings
• Type of affected industries, including small business •Impact on employment and the regional economy
76 Redlands Regular Meeting of 05-20-2025 285 of 1269
California Environmental Quality Act (CEQA)
Draft Subsequent Environmental Assessment (SEA) for PAR 1111 and PAR 1121:
• Tiers off the Final Program Environmental Impact Report (EIR) for 2022 AQMP • Released for a 46-day public review and comment period from September 27, 2024 to November 12, 2024
• Analysis based on September 2024 versions of PAR 1111 and PAR 1121 • Potentially significant adverse impacts and mitigation measures identified for:
o Air Quality during construction
o Energy due to increased demand for electricity and natural gas • February 2025 versions of PAR 1111 and PAR 1121 provide more flexibility and result in fewer adverse impacts and fewer NOx emission reductions than what was initially analyzed in the Draft SEA
77 Redlands Regular Meeting of 05-20-2025 286 of 1269
Staff Conclusions and Takeaways
Zero emission space and water heating appliances are commercially available • Replacing furnace & air conditioner with heat pump will save on upfront costs and monthly utility bills • Replacing only a furnace with central heat pump will have higher upfront costs but monthly utility bills will be lower
• Other zero-emission options can save on upfront costs • New rule concept that allows for NOx emitting unit sales addresses high-cost scenarios Space Heating Costs
• Replacing conventional water heater with heat pump will have higher upfront costs but monthly utility bills will be lower
• New 120V water heaters can save on upfront costs
• New rule concept that allows for NOx emitting unit sales addresses high-cost scenarios Water Heating Costs
Rebates and incentives are available to offset upfront costs 78 Redlands Regular Meeting of 05-20-2025 287 of 1269
Next Steps
March 2025
Stationary Source Committee
Spring 2025
Launch Go Zero Incentive Program
April 1, 2025
Release draft PAR 1111 and PAR 1121 and draft
supporting documents
May 2, 2025 (subject to change)
Public Hearing
79 Redlands Regular Meeting of 05-20-2025 288 of 1269
▪ To receive newsletter updates via email for
notifications regarding Go Zero, 1111 and 1121
rule development, or other forthcoming building
appliances rules, please subscribe by checking
the Go Zero, Rule 1111, Rule 1121, or Building
Appliances check boxes located under Rule
Updates:
http://www.aqmd.gov/sign-up
▪ Visit our newly redesigned Residential Building
Appliance Clearinghouse Webpage:
https://www.aqmd.gov/home/rules-
compliance/residential-and-commercial-building-
appliances
Sign Up for Notifications
80 Redlands Regular Meeting of 05-20-2025 289 of 1269
Staff Contacts
Jen Vinh AQ Specialist [email protected] 909.396.2148
Emily Yen AQ Specialist [email protected]
Yanrong ZhuProgram [email protected] Heather Farr Planning and Rules Manager [email protected] Michael Krause Assistant DEO [email protected] 81 Redlands Regular Meeting of 05-20-2025 290 of 1269
Third Preliminary
Draft Proposed Amended Rule 1111
PAR 1111 – 1
(Adopted December 1, 1978)(Amended July 8, 1983)(Amended November 6, 2009) (Amended September 5, 2014)(Amended March 2, 2018)(Amended July 6, 2018) (Amended December 6, 2019)(Amended September 4, 2020)(Amended October 1, 2021) (Amended September 1, 2023)(Amended [DATE OF RULE ADOPTION]) PROPOSED AMENDED RULE 1111 REDUCTION OF NOx EMISSIONS
FROM NATURAL- GAS- FIRED , FANTYPE CENTRAL FURNACES
[RULE INDEX TO BE ADDED AFTER RULE ADOPTION]
(a) Purpose and Applicability
The purpose of this rule is to reduce Oxides of Nitrogen (NOx) emissions from fantype central furnaces Furnaces used for interior space heating, as defined in this rule. This rule applies to manufacturers, distributors, sellers, and installers of residential and commercial fan-type central furnaces, requiring either single-phase or three-phase electric supply, used for comfort heating with a rated heat input capacity of less than 175,000 BTU per hour, or, for combination heating and cooling units, a cooling rate of less than 65,000 BTU per hour. (b) Applicability
The provisions of this rule are applicable to manufacturers, distributors, retailers, Resellers, and Installers of Furnaces used for interior space heating with a Rated Heat Input Capacity less than 175,000 British thermal units (Btu) per hour, or, for combination heating and cooling units, a cooling rate of less than 65,000 Btu per hour.
(bc) Definitions
(1) ANNUAL FUEL UTILIZATION EFFICIENCY (AFUE) is defined in Section 10.1 of Code of Federal Regulations, Title 10, Part 430, Subpart B, Appendix N.
(2) BTU means British thermal unit or units.
(32) CONDENSING FURNACE means a high-efficiency furnace Residential Fan-Type Central Furnace that uses a second heat exchanger to extract the latent heat in the flue gas by cooling the combustion gasses to near ambient temperature so that water vapor condenses in the heat exchanger, and is collected and drained.
(43) DOWNFLOW FURNACE means a condensing Condensing or noncondensingNon-Condensing furnace Furnace installed in a configuration in Redlands Regular Meeting of 05-20-2025 291 of 1269
Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 2
which the furnace takes in cool air from the top, warms it, then releases the warm air through the ductwork below.
(5) DUAL FUEL SYSTEM is a heating, ventilation, and air conditioning system utilizing a HEAT PUMP as the primary source of heating and cooling with a FAN-TYPE CENTRAL FURNACE serving as auxiliary heating.
(4) EXISTING BUILDING means a building that is not a New Building as defined in this rule.
(6) FAN-TYPE CENTRAL FURNACE is a self-contained space heater using natural gas, or any fan-type central furnace that is in natural gas-firing mode, providing for circulation of heated air at pressures other than atmospheric through ducts more than 10 inches in length that have:
(A) a RATED HEAT INPUT CAPACITY of less than 175,000 BTU per hour; or
(B) for combination heating and cooling units, a cooling rate of less than 65,000 BTU per hour.
(5) FLOOR FURNACE means a self-contained, floor-mounted space heater using natural gas without ducts that has a Rated Heat Input Capacity at or less than 175,000 Btu per hour.
(6) FURNACE means any Residential Fan-Type Central Furnace, Wall Furnace, or Floor Furnace as defined in this rule.
(7) HEAT INPUT means the higher heating value of the fuel to the furnace measured as BTU per hour. means the chemical heat released due to assumed complete combustion of fuel to a Furnace, using the higher heating value of the fuel. This does not include the sensible heat of incoming combustion air.
(8) HEAT PUMP means an all-electric device that utilizes condensation and evaporation of refrigerant to absorb and release heat for heating, ventilation, and air conditioning applications.
(9) INSTALL means the action of an Installer to place a Furnace in a position ready for use.
(10) INSTALLER means a person who Installs a Furnace and is required to obtain a license issued by the Department of Consumer Affairs Contractors State License Board for a classification related to buildings and appliances. (911) MOBILE HOME means a prefabricated structure on a permanently attached chassis.structure, transportable in one or more sections, that is built Redlands Regular Meeting of 05-20-2025 292 of 1269
Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 3
on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities. (1012) MOBILE HOME FURNACE means a Residential Fan-Type Central furnace Furnace designed specifically and solely for installation to heat a mobile home.
(13) NEW BUILDING means a building that is newly constructed or a building with a major alteration which changes the occupancy classification of a building, which means a change in the formal designation of the primary purpose of the building pursuant to 2022 Title 24 California Building Code Part 2 Chapter 3 for occupancy classification and use, or any subsequent version of the Building Code. For Mobile Homes, the newly constructed building includes installation of the Mobile Home onto the property of residence.
(14) NON-CONDENSING FURNACE means a standard Residential Fan-Type Central Furnace that is not a Condensing Furnace, Weatherized Furnace, or Mobile Home Furnace.
(1115) NOx EMISSIONS means the sum of nitrogen nitric oxide and nitrogen dioxide (oxides of nitrogen) in the flue gas emitted, calculated, and collectively expressed as nitrogen dioxide.
(1216) RATED HEAT INPUT CAPACITY means the gross HEAT INPUTHeat Input of the combustion device, as supported by required documentation. (17) RESELLER means anyone who sells Furnace(s) either retail, wholesale, or on an individual basis.
(18) RESIDENTIAL FAN-TYPE CENTRAL FURNACE is a self-contained natural gas-fired space heater, or any fan-type central furnace that is in natural gas-firing mode, providing for circulation of heated air at pressures other than atmospheric through ducts more than 10 inches in length that has:
(A) A Rated Heat Input Capacity less than 175,000 Btu per hour; or (B) For combination heating and cooling units, a cooling rate of less than 65,000 Btu per hour.
(1319) RESPONSIBLE OFFICIAL means:
(A) For a corporation: a president or vice-president of the corporation in charge of a principal business function or a duly authorized person who performs similar policy-making functions for the corporation, or
Redlands Regular Meeting of 05-20-2025 293 of 1269
Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 4
(B) For a partnership or sole proprietorship: general partner or proprietor, respectively.
(14) SINGLE FIRING RATE means the burners and control system are designed to operate at only one fuel input rate and the control system cycles burners between the maximum heat output and no heat output.
(1520) USEFUL HEAT DELIVERED TO THE HEATED SPACE is the AFUE (expressed as a fraction) multiplied by the heat input. (16) VARIABLE FIRING RATE means the burners and control system are designed to operate at more than one fuel input rate and the control system cycles burners between two or more heat output rates and no heat output. (21) WALL FURNACE means a wall-mounted, self-contained space heater using natural gas without ducts that exceed 10 inches that has a Rated Heat Input Capacity less than 175,000 Btu per hour.
(1722) WEATHERIZED means a Residential Fan-Type Central Furnace designed for installation outside of a building, equipped with a protective jacket and integral venting, and labeled for outdoor installation. (23) ZERO-NOx EMISSION UNIT means an appliance that provides space heating with heating capacity equivalent to Furnaces subjected to this rule and emits no more than zero nanograms of NOx per joule of Useful Heat Delivered To The Heated Space (ng/J).
(cd) Requirements
(1) A manufacturer shall not, after January 1, 1984, manufacture or supply for sale or use in the South Coast AQMD fan-type central furnaces, unless such furnaces meet the requirements of paragraph (c)(3).
(2) A person shall not, after April 2, 1984, sell or offer for sale within the South Coast AQMD fan-type central furnaces unless such furnaces meet the requirements of paragraph (c)(3).
(3) Fan-type central furnaces shall:
(A) not emit more than 40 nanograms of oxides of nitrogen (calculated as NO2) per joule of useful heat delivered to the heated space; and (B) be certified in accordance with subdivision (d) of this rule. (41) On or after October 1, 2012No person shall not manufacture, supply, sell, resell, offer for sale, import, or installInstall, for use within the South Coast AQMD, fan-type central furnaces subject to this rule any of the following Furnaces, unless such furnaceFurnace is certified pursuant to subdivision Redlands Regular Meeting of 05-20-2025 294 of 1269
Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 5
(e) not to exceed complies with the applicable Table 1 emission limit and compliance date set forth in Table 1 and is certified in accordance with subdivision (d) of this rule., expressed by nanograms of NOx per joule of Useful Heat Delivered to the Heated Space (ng/J):
(A) Any Residential Fan-Type Central Furnace prior to the applicable Table 2 compliance date, except for Mobile Home Furnaces for Existing Buildings; and
(B) Any Mobile Home Furnace for Existing Buildings.
Table 1 – Furnace NOx Limits and Compliance Schedule
Compliance Date Equipment Category NOx Emission Limit
(nanograms/Joule *)
October 1, 2012 Mobile Home Furnace 40
April 1, 2015 Condensing Furnace 14
October 1, 2015 Non-condensing Furnace 14
October 1, 2016 Weatherized Furnace 14
October 1, 2018 Mobile Home Furnace 14
Table 1 – Residential Fan-Type Central Furnace NOx Limits Equipment Category NOx Emission
Limit (ng/J )
Condensing Furnace 14
Non-Condensing Furnace 14
Weatherized Furnace 14
Mobile Home Furnace 14
Redlands Regular Meeting of 05-20-2025 295 of 1269
Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 6
(2) On and after the applicable Table 2 compliance date, no person shall manufacture, supply, sell, resell, offer for sale, import, or Install, any Furnace for use in the South Coast AQMD, that exceeds the Table 2 NOx emission limits. The applicable Table 2 compliance dates for New Building types shall be determined based on the construction or alteration completion date.
Table 2 – Zero-Emission Limits and Compliance Schedule
Equipment Category NOx Emission
Limit (ng/J)
Building
Type Compliance Date
Residential Fan-Type
Central Furnace1 0
New January 1, 2027
Existing January 1, 2029
Mobile Home Furnace 0 New January 1, 2027
Wall Furnace and Floor
Furnace 0
New January 1, 2027
Existing January 1, 2029
1 Includes Condensing, Non-Condensing, and Weatherized Furnaces. (5) Any manufacturer of fan-type central furnaces regulated by this rule may elect to pay a per unit mitigation fee in lieu of meeting the 14 nanogram/Joule NOx emission limit in Table 1 of paragraph (c)(4) of this rule, provided the manufacturer complies with the following requirements:
(A) Prior to the phase one mitigation fee start date specified in Table 2, pays a per unit mitigation fee of $200 for each condensing furnace and $150 for each other type of furnace distributed or sold into the South Coast AQMD, disregarding the furnace size.
(B) On and after the phase one mitigation fee start date but no later than the mitigation fee option end date specified in Table 2, pays a per unit phase one or phase two mitigation fee for each condensing, noncondensing, weatherized or mobile home furnace according to Table 2.
Table 2 – Alternate Compliance Plan with the Phase One and Phase Two Mitigation Fee Schedules
Furnace
Phase One Mitigation
Fee Phase Two Mitigation Fee
Phase Two
Mitigation
Fee Option
End Date
Size
Range
Furnace
Category
Phase
One
Mitigation
Phase One
Mitigation
Fee ($/Unit)
Phase Two
Mitigation
Fee Start
Date
Phase Two
Mitigation
Fee ($/Unit)
Redlands Regular Meeting of 05-20-2025 296 of 1269
Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 7
Fee Start
Date
≤ 60,000
BTU/hr
Condensing May 1,
2018 $275 October 1, 2018 $350 September 30, 2019
NoncondensingOctober 1,
2018 $225 April 1, 2019 $300 September 30, 2019
Weatherized October 1,
2018 $225 April 1, 2019 $300 September 30, 2021
Mobile Home October 1,
2018 $150 April 1, 2019 $150 September 30, 2025
> 60,000
Btu/hr
and ≤
90,000
BTU/hr
Condensing May 1,
2018 $300 October 1, 2018 $400 September 30, 2019
NoncondensingOctober 1,
2018 $250 April 1, 2019 $350 September 30, 2019
Weatherized October 1,
2018 $250 April 1, 2019 $350 September 30, 2021
Mobile Home October 1,
2018 $150 April 1, 2019 $150 September 30, 2025
> 90,000
BTU/hr
Condensing May 1,
2018 $325 October 1, 2018 $450 September 30, 2019
NoncondensingOctober 1,
2018 $275 April 1, 2019 $400 September 30, 2019
Weatherized October 1,
2018 $275 April 1, 2019 $400 September 30, 2021
Mobile Home
October 1,
2018 $150
April 1,
2019 $150
September
30, 2025
(C) Submits an alternate compliance plan for each 12-month time period after the applicable Table 1 compliance date during which the manufacturer elects to pay the mitigation fee in lieu of meeting the NOx emission limit.
(D) Submits to the South Coast AQMD an alternate compliance plan no later than 60 days prior to the applicable compliance date, or no later than March 16, 2018 for the condensing furnace compliance plan starting on April 1, 2018, which includes the following:
(i) a letter with the name of the manufacturer requesting the mitigation fee compliance option signed by a responsible official identifying the category of fan-type central furnaces and the 12 month alternate compliance period that the
mitigation fees cover;
(ii) an estimate of the quantity of applicable Rule 1111 fan-type central furnaces to be distributed or sold into the South Coast AQMD during the alternate compliance period, which
estimate shall be based on total distribution and sales records Redlands Regular Meeting of 05-20-2025 297 of 1269
Proposed Amended Rule 1111 (Cont.) (Amended September 1, 2023TBD) PAR 1111 – 8
or invoices of weatherized or mobile home fan-type central furnaces that were distributed or sold into the South Coast AQMD during the 12 month period of July 1 to June 30 prior to the applicable compliance date, along with supporting documentation;
(iii) a completed South Coast AQMD Form 400A with company name, identification that application is for an alternate compliance plan (section 7 of form), identification that the request is for the Rule 1111 mitigation fee compliance
option (section 9 of form), and signature of the responsible official;
(iv) a check for payment of the alternate compliance plan filing fee (Rule 306, subdivision (c)).
(E) Submits to the Executive Officer a report signed by the responsible official for the manufacturer identifying by model number the quantity of Rule 1111 fan-type central furnaces actually distributed or sold into South Coast AQMD and a check for payment of mitigation fees for the applicable 12 month alternate compliance period for the quantity of applicable Rule 1111 fan-type central furnaces distributed or sold into the South Coast AQMD during the alternate compliance period. The report and the payment of mitigation fees must be submitted to the South Coast AQMD no later than thirty (30) days after the end of each 12-month mitigation fee alternate compliance period.
(F) Notwithstanding the requirements set forth in subparagraph (c)(5)(E), during the phase one period specified in Table 2, submits a report signed by the responsible official for the manufacturer identifying by model number the quantity of Rule 1111 fan-type central furnaces actually distributed or sold into South Coast AQMD and a check for payment of mitigation fees for the phase one period no later than thirty (30) days after the end of the phase one period.