Agenda packet — Redlands City Council, February 17, 2026 (part 1 of 4)

CITY OF REDLANDS

CITY COUNCIL

A G E N D A
FEBRUARY 17, 2026

MARIO SAUCEDO
Mayor

MARC SHAW
Mayor Pro Tempore

PAUL 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 meeting of the City Council of the City of Redlands at the times noted below in the City Council Chambers, Civic Center, 35 Cajon Street, Redlands, California, on:

TUESDAY, FEBRUARY 17, 2026
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
5:00 P.M.

A. Call City Council Meeting to Order
B. Recess until 6:00 P.M. Open Session
(There are no Closed Session matters)
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6:00 P.M.

C. Reconvene City Council Meeting
D. Invocation by Council Member Tejeda - Pledge of Allegiance (In keeping with long-standing traditions of legislative invocations, this City Council meeting may include a brief invocation. Such invocations are not intended to proselytize or advance any one, or to disparage any other, faith or belief. Neither the City nor the City Council endorses any particular religious belief or form of invocation.) E. 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.) F. 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 February 3, 2026 (City Clerk Donaldson)

2. Approve recommendations for appointments to the Human Relations Commission (Mayor Saucedo and Council Member Davis)

3. Adopt Ordinance No. 2999 Amending Title 6 (Animals) and Title 18 (Zoning Regulations), updating the lists of permitted and accessory land uses, and updating development standards pertaining to the raising or keeping of hens within single-family residential zoning districts (Assistant City Manager Boatman)

4. Adopt Resolution No. 8750 acknowledging acceptance of a report for Completed State-Mandated Fire and Life Safety Inspections by the City of Redlands Fire Department in compliance with SB 1205 and California Health and Safety Code Section 13146.4 (Fire Chief Sessler)

5. Adopt Resolution No. 8751 Declaring Weeds to be a Public Nuisance and setting March 17, 2026, as the Public Hearing for objections to the proposed weed abatement (Fire Chief Sessler)

6. Approve an Agreement for Collection Services with Cedar Business Services, LLC, related to miscellaneous accounts receivable and delinquent utility billing accounts at least 120 days old after the date of service (Management Services/Finance Director Garcia)

7. Approve a Memorandum of Understanding with Artlands Creative, recommended by the Parks and Recreation Advisory Commission, authorizing enhancements within the parcel described as APN 0170-083-03-0000 and determination that approval of the Agreement is exempt from California Environmental Quality Act (CEQA) guidelines pursuant to Section 15061 (Facilities and Community Services Director Crocker)

8. Approve the use of city resources and the request for in-kind support in the amount of $11,316.50 related to the Downtown Redlands Artwalk event on Sunday, March 29, 2026, hosted by the Kids Cures Foundation; approve temporary street closures related to the event; and determine that the event is categorically exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker)
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9. Approve the First Amendment to the Agreement with Cultural Planning Group, LLC to extend the term of the Professional Service Agreement for development of an Arts and Culture Master Plan (Facilities and Community Services Director Crocker)

10. Approve the use of city resources and the request for in-kind support in the amount of $43,875.54 related to the Run Through Redlands event hosted on March 1, 2026, by the Kiwanis Club; authorize the sale and consumption of alcohol and approve temporary street closures related to the event; and determine that the event is categorically exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker)

11. Approve first amendments to the agreements with AtWork Personnel Services and waterTALENT for the provision of temporary staffing to increase the total compensation of the agreements (Human Resources/Risk Management Director Meteau) G. Communications

1. Annual Report of the Human Relations Commission by Commission Chair Ken Ford (Human Resources/Risk Management Director Meteau)

2. Annual Report of the Traffic and Parking Commission (Municipal Utilities and Engineering Interim Director Casey)

3. Presentation and acceptance of the Fiscal Year 2025 City of Redlands Annual Comprehensive Financial Report, and the Independent Accountants’ Report on Applying Agreed-Upon Procedures related to the Article XIII-B Appropriations Limit Calculation (Management Services/Finance Director Garcia)
H. New Business

1. Consideration of a Public Works Construction Contract with MCC Pipeline, Inc. for the 2025 CIP Water Pipeline Replacement Project for an amount not-to-exceed $4,003,595; and determination that the project is categorically exempt from environmental review pursuant to Section 15302 of the State's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Interim Director Casey)

2. Consideration of the non-professional service agreement with Kirtley Construction, Inc. for On-Call Sewer Collection System Repair on an as-needed basis for an amount not-to-exceed $550,000, and determination that this action is exempt from environmental review pursuant to Section 15301(b) of the State's guidelines implementing the California Environmental Quality Act (Municipal Utilities and Engineering Interim Director Casey)

3. Consideration of Ordinance No. 3000 of the City of Redlands Amending Chapter 10.56 of the Redlands Municipal Code Relating to Electric Bicycles (Police Chief Tolber)

4. Consideration of a Purchase and Sale Agreement with Miller & Associates, LLC., and Christopher Collinsworth, Including Assignment of the City’s Purchase Rights for the Property Located at 611 W. Redlands Boulevard (Assessor Parcel Numbers 0171-031-08 and -09-0000); Authorization of an additional appropriation from the General Fund Unassigned Fund Balance in the amount of $1,820,000; and determine that approval of the Agreement is exempt from environmental review pursuant to Section 15061(b)(3) of the State’s guidelines implementing the California Environmental Quality Act (Assistant City Manager Boatman) I. Individual Council Member Announcements and/or Reports on Activities Recycled Paper
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I. Individual Council Member Announcements and/or Reports on Activities (No collective discussion or action.)
J. Adjournment
The next regular meeting of the City Council will be held on March 3, 2026.

If you challenge any proposed development entitlement listed on this agenda in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact Goutam Dobey, of the Municipal Utilities and Engineering Department at (909) 798-7584 ext 2. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
(28 CFR 35.102-35.104 ADA Title II)
Any writings or documents distributed to a majority of the City Council regarding an open session agenda item less than 72 hours before this meeting are available for public inspection at the City Clerk's Office or at the dais of the City Clerk once the open session begins.

Staff reports or other written documentation relating to items referred to on the agenda are available at the A. K. Smiley Public Library, 125 West Vine Street, Redlands, California, and on the City’s website referenced below.

Regular meetings are televised live on Redlands TV Channel 3 (Spectrum) and Channel 35 (Frontier) and re-broadcast at 7:00 P.M. the following Wednesday, Friday and Sunday; and at 9:00 A.M. Thursday, Saturday and Monday. Meetings are also streamed live and archived for later viewing on demand on the City’s website at www.cityofredlands.org
. Agendas, staff reports and minutes of the City Council of the City of Redlands are available online at: www.cityofredlands.org.

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City Council Meeting F. 1.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Approve minutes of the regular meeting of February 3, 2026 (City Clerk Donaldson)
MOTION:

I move to approve the regular meeting minutes of February 3, 2026.

Attachments
Regular Meeting Minutes of February 3, 2026
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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 February 3, 2026 at 5:00 P.M.

Present: Mario Saucedo, Mayor
Marc Shaw, Mayor Pro Tem
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/Interim Development Services Director; Carl Baker, Public Information Officer; Danielle Garcia, Management Services/Finance Director; Rich Sessler, Fire Chief; Rachel Tolber, Police Chief; Tabitha Crocker, Facilities and Community Services Director; Robert Meteau, HR/Risk Management Director; Ray Casey, Interim Municipal Utilities and Engineering 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.

PUBLIC COMMENT
None forthcoming
CLOSED SESSION
Conference with legal counsel: Existing Litigation - Government Code §54956.9(d)(1) (City Attorney Garcia)
One Case:

Coyote Aviation v. City of Redlands, et al. San Bernardino County Superior Court Case No. CIVSB2418252

1. RECONVENE CITY COUNCIL MEETING
The meeting reconvened at 6:00 P.M. with an invocation by Council Member Barich. The Pledge of Allegiance to the American flag was conducted by Victoria Elementary School.

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

PRESENTATIONS
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PRESENTATIONS
Redlands Pet Adoption
Animal Services Supervisor Joe Alcarez and Kennel Attendant Hailey Stuck showed off "Wizard", a three-year-old male German Shepherd mix, who is available for adoption, along with twenty-four other dogs and four cats at the Redlands Animal Shelter. Mr. Alcarez provided the Shelter statistics for December 2025 through January 2026, which included: 72 adopted dogs and 3 adopted cats.

Black History Month Proclamation
Mayor Saucedo presented Black History Month Proclamations to Redlands Community Reunion Members, Jimmy Dixon, Sandra Dixon, Reggie Harrison, and Tony Smith.

PUBLIC COMMENT
First Amendment & Rule of Law - Tracy Wise thanked the City for their continued support and protection of the First Amendment and the rule of law. She reminded everyone to act with basic decency, and she proposed that Federal Agents should adhere to the following:
no masks allowed; must have identification; and must obtain warrants.

Food
Shortages - With the end to the grocery gift card program, Bruce Laycook requested the Council reevaluate the budget, shift dollars and find the funds to continue the program, which has been a lifeline for those who lost their SNAP benefits. He added that food collection locations have been targeted by ICE, only increasing food insecurities in the community.

Traffic & Safety
Concerns - Roberta Lehfeldt, Juan Carlos Ulora, Lucy Larriba, Jose Rojas, and a Zoom caller urged the City to address their traffic and safety concerns on Clay Street.

They complained that employees of the Boys and Girls Club are severely impacting the neighborhood, overtaking residential parking spaces from those who live on the street, and creating congestion and unsafe double-parking hazards. They claimed the employees are disrespectful and have been unwilling to cooperate with the neighborhood.

City Manager Duggan said that staff would investigate the matter.

Meeting Agenda
Format - Andy Hoder questioned how staff reports are formatted. He thought the motion language should follow discussion and be found at the end of the report, instead of at the beginning.

RUSD Concerns - Raydon Rice cited the Redlands Unified School District has spent over $50 million in the last decade regarding charges of sexual abuse of children, which he claimed demonstrated a clear lack of care for students. He advocated for the community to work together and create programs to engage young people and give them a sense of purpose.

Citywide Mayoral
Election - Steve Rogers recommended the Council approve a ballot measure for 2026 allowing voters to determine the method for selecting the mayor, and he supported a hybrid voting system, offering voters the ability to vote across districts.

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CONSENT CALENDAR
Minutes
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 of January 20, 2026, and the special meeting minutes of January 14, 2026, and January 23, 2026.

Vote: 5 - 0 Passed
Electrical Infrastructure Capacity in District 2
Council Member Tejeda provided background on his proposal to consider sending a letter to Southern California Edison (SCE) regarding electrical infrastructure capacity limitations that may affect several City-approved commercial and residential development projects in District 2. These limitations have the potential to delay both public and private projects.

The letter outlines concerns regarding insufficient electrical infrastructure to support approved development projects, including commercial and residential developments. The letter requests that Southern California Edison prioritize the planning and construction of necessary electrical infrastructure in the affected areas and emphasizes the importance of timely improvements to avoid extended delays that could adversely affect the community.

As public comment, Ray Kayacan, representing Regency Centers, said they were recently informed by SCE there is insufficient power available for their project located at Tennesse Street and Lugonia. He stressed the critical need for the electrical infrastructure for the project to be successful, and yet he said that SCE has not been responsive. Bruce Laycook wondered how the Planning Commission could approve projects in an area where there was not enough electrical output and suggested a moratorium on any future projects coming for review. Stephen Rogers listed what he considered to be certain deficiencies with the City's General Plan, contested the procedures employed by the Council for project approvals, and reminded the City of their role to protect the public's health and safety. Matt Jordan stated that SCE's electrical capacity shortage is a statewide crisis, and not just a regional one. He stressed the community's need for the planned projects in District 2 and thanked the Council for their assistance.

City Manager Duggan added that SCE informed staff they have plans to upgrade distribution lines in 2028. Mayor Pro Tem Shaw and Council Member Barich expressed dissatisfaction with the response from SCE and fully endorsed the letter as a means to leverage necessary access.

On motion of Council Member Eddie Tejeda, seconded by Council Member Denise Davis, the City Council unanimously authorized, by roll call vote, Mayor Saucedo to sign a letter to Southern California Edison requesting immediate attention regarding electrical infrastructure capacity in District 2.

Vote: 5 - 0 Passed
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February 2026 Black History Month Proclamation

On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously authorized, by roll call vote, the issuance of a proclamation declaring the month of February 2026 as Black History Month in the City of Redlands.

Vote: 5 - 0 Passed

Airport Advisory Board Appointment

On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously appointed, by roll call vote, Austin Crane to serve the remainder of a four-year term on the Airport Advisory Board, ending May 1, 2028.

Vote: 5 - 0 Passed

Traffic and Parking Commission Appointments

On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously appointed, by roll call vote, Dr. Iyan Barrera-Sandri to serve the remainder of a four-year term on the Traffic and Parking Commission, ending December 21, 2029; and appointed Jake Mayuga-Allen to serve the remainder of a four-year term on the Traffic and Parking Commission, ending December 20, 2028.

Vote: 5 - 0 Passed

Cultural Arts Commission Appointments

On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously reappointed, by roll call vote, Daniel Gohman to serve a second four-year term on the Cultural Arts Commission ending January 6, 2030; reappointed Daniel Rodriguez to serve a second four-year term on the Cultural Arts Commission ending January 6, 2030, and appointed Robert Schooley to serve a four-year term on the Cultural Arts Commission ending January 6, 2030.

Vote: 5 - 0 Passed

Resolution No. 8748 New Water Distribution Connections & Sewer Collection Systems

On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously approved, by roll call vote, Resolution No. 8748 for new connections to the City of Redlands water distribution and sewer collection systems for seven vacant parcels located at the northeast corner of the intersection Nice Avenue and Turquoise Avenue and identified as county of San Bernardino Assessor’s Parcel Numbers 0298-103-14-0000 through 0298-103-20-0000 in the unincorporated community of Mentone within San Bernardino County; and determining that approval of the Resolution is exempt from environmental review pursuant to Sections 15303 and 15319 of the California Environment Quality Act (CEQA) guidelines.

Vote: 5 - 0 Passed
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Mills Act Contract for 1106 West Highland Avenue

On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously determined, by roll call vote, that approval of this Mills Act Contract with the property owners for the single-family residence located at 1106 West Highland Avenue is exempt from environmental review pursuant to Section 15061(b)(3) of the California Environmental Quality Act; and approved the Historic Property Contract by and between the City of Redlands and Jaret Fischer for the residential property located at 1106 West Highland Avenue, within the West Highland Avenue Historic and Scenic District (Historic District No. 7).

Vote: 5 - 0 Passed

Cooperative Purchase Getac Mobile Data Computers

On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously approved, by roll call vote, the Cooperative Purchase of Getac Mobile Data Computers for the Police Department from Code 3 Technologies in the amount of $94,386.50.

Vote: 5 - 0 Passed

Yuhaaviatam of San Manuel Nation Grant Award for RESA

On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously accepted, by roll call vote, the grant award from the Yuhaaviatam of San Manuel Nation to fund the Redlands Emergency Services Academy in the amount of $60,000 for FY2025-26 and FY2026-27; and authorized an additional appropriation of the same amount to the Police Department.

Vote: 5 - 0 Passed

Resolution No. 8746 MOU Redlands Police & U of R

Police Chief Tolber introduced Resolution No. 8746 approving a Memorandum of Understanding (MOU) pursuant to Penal Code Sections 830.7(b) and 836, outlining the authority and responsibilities of University of Redlands and the Redlands Police Department (RPD) in accordance with the Jeanne Clery Act and California Act and California Education Code Section 67381. The University and RPD have had a continuous Memorandum of Understanding since March 19, 1996, allowing the University's Department of Public Safety, which includes non-sworn Public Safety Officers, to exercise powers of arrest during the course of their employment. This updated MOU will incorporate the grant of limited authority available to Public Safety Officers as outlined in California Penal Code Sections 830.7(b) and 836 on the University's campus located at 1200 East Colton Avenue in Redlands and will strengthen law enforcement on and near the University Campus.

Chief Tolber announced there was a typo in the MOU, in the insurance section, found on CC_February 3, 2026

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page 8 - 20. b. The corrected amounts have been updated to read as follows:

Comprehensive General Liability insurance 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, instead of the numbers originally listed in parentheses as $2,000,000 and $4,000,000. As public comment, Bruce Laycook supported updating the MOU but suggested this item did not belong on the Consent Calendar. He thought this important matter deserved a thorough review and discussion.

On motion of Mayor Pro Tem Marc Shaw, seconded by Council Member Denise Davis, the City Council unanimously adopted, by roll call vote, Resolution No. 8746 approving a Memorandum of Understanding (MOU) as amended, pursuant to Penal Code Sections 830.7(b) and 836, outlining the authority and responsibilities of University of Redlands and the Redlands Police Department in accordance with the Jeanne Clery Act and California Act and California Education Code Section 67381; and adopted the Resolution rescinding the MOU between the City of Redlands and the University of Redlands dated October 18, 2005.

Vote: 5 - 0 Passed

Consulting Agreement Zero Emission Vehicle Fleet Review

On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously determined, by roll call vote, that approval of the Professional Services Agreement with ICF Consulting, LLC. dba ICF Consulting Group, 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 Professional Services Agreement with ICF Consulting, LLC. dba ICF Consulting Group, Inc., for an amount not to exceed $137,896.93 for Zero Emission Vehicle Fleet Review and Assessment Services.

Vote: 5 - 0 Passed

COMMUNICATIONS

Annual Report Street Tree Commission

Chairwoman Chris Sedmack was unable to attend tonight's meeting to provide the Annual Report for the Street Tree Commission.

On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously agreed, by roll call vote, to receive and file the Annual Report for the Street Tree Commission.

Vote: 5 - 0 Passed

Food Security Task Force

Homeless Solutions Manager David Rabindranath offered background on the Food CC_February 3, 2026

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Homeless Solutions Manager David Rabindranath offered background on the Food Security Task Force program. On November 4, 2025, the City Council adopted Resolution No. 8732 establishing the City of Redlands Food Security and Child Nutrition Support Initiative. The resolution directed staff to take a series of coordinated actions, including convening a Food Security Task Force, identifying City-owned sites for food access programs, expanding youth nutrition partnerships, exploring community mini-grants, and pursuing external funding and advocacy opportunities,
Based on feedback received during the inaugural Food Security Task Force meeting, staff is seeking City Council direction on suggested next steps that reflect the issues and needs identified by community partners. Those potential next steps include continuing to convene the Food Security Task Force to support coordination and further explore ways for the City to assist with information-sharing, including aggregating and disseminating updates related to federal and state nutrition programs, benefit changes, and funding opportunities. Assistant City Manager Boatman highlighted the biggest takeaway was the need for the City to act as a central repository, a collaborative hub to centralize information and resources.

Council Member Davis thanked staff for their efforts and was pleased with the community's support. She proposed the task force meet regularly and work towards developing a concrete framework to offer guidance as they move forward. She emphasized that food insecurity is inextricably linked to housing instability, and she advocated for a comprehensive strategy to support city residents. Council Member Barich asked about funding sources and suggested the City engage local stakeholders to supplement municipal funding. Mayor Saucedo supported the Task Force and agreed to make the City a "clearinghouse of resources", but he expressed concerns about placing additional burdens on City staff. He recommended the City rely heavily on our community action partners to work closely with staff. As public comment, Bruce Laycook passionately urged the City to prioritize food security for all residents, especially our young people. He argued that the Council should reallocate resources to protect the most vulnerable members of the community.

On motion of Council Member Paul Barich, seconded by Council Member Denise Davis, the City Council unanimously directed staff, by roll call vote, to continue convening and coordinating with local nonprofit, faith-based, and school partners to address food insecurity and related basic needs in the City of Redlands, and to return to the City Council with periodic updates and recommended next steps.

Vote: 5 - 0 Passed

PUBLIC HEARINGS

Ordinance No. 2999 Keeping of Hens

Mayor Saucedo declared the meeting open as a public hearing and called on Associate Planner Jazmin Serrato, who presented Ordinance No. 2999 amending Title 6 (Animals) and Title 18 (Zoning Regulations), and Resolution No. 8747 amending residential specific plans, to update permitted and accessory land uses and development standards for the keeping of hens within single-family residential zoning districts.

On November 4, 2025, the Council voted to direct staff to prepare an ordinance to amend CC_February 3, 2026

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the City's zoning regulations to allow for the keeping of hens on lots in single-family residential zones and districts. Currently, hens are only allowed in two residential zoning districts: the Rural Residential Animals (R-R-A) District and the Rural Estate Animals (R-A-A) District (see Attachment A). The proposed code amendment would allow the incidental keeping and raising of chickens (hens only) in all single-family residential zoning districts as well as single-family districts of Specific Plans.

Regulations will also be updated governing the number of hens permitted (based on lot size) and other reasonable standards to ensure compatibility with surrounding properties.

This ordinance would encourage sustainable small-scale food production in residential areas, protect public health and animal welfare, and prevent nuisances from noise, odor, and sanitation. The keeping of hens would be ancillary/accessory to an existing primary single-family dwelling unit, in accordance with the amended Redlands Municipal Code (RMC) Section 18.29.030. On December 9, 2025, the Planning Commission voted 6 to 0 to adopt Resolution No. 1728 recommending the text amendment Ordinance No. 371 to update the zoning regulations to permit the keeping of chickens (hens only) in single-family residential zones. There were no written comments received and with no further discussion, Mayor Saucedo closed the public hearing.

On motion of Council Member Eddie Tejeda, seconded by Mayor Pro Tem Marc Shaw, the City Council unanimously introduced, by roll call vote, Ordinance No. 2999, amending Title 6 (Animals) and Title 18 (Zoning Regulations), adopted Resolution No. 8747, amending residential specific plans, to update permitted and accessory land uses and development standards for the keeping of hens within single-family residential zoning districts; and finding that the proposal is exempt from environmental review pursuant to Sections 15061(b)(3) and 15378(b)(5) of the California Environmental Quality Act Guidelines.

Vote: 5 - 0 Passed

NEW BUSINESS

2026-2027 CDBG Program Proposed Projects

Management Analyst Tricia Munoz presented staff's recommendation for FY 2026-2027 Community Development Block Grant (CDBG) Program proposed project listing. Staff recommended funding requests for projects based on an evaluation and analysis of all the applications submitted, received and deemed eligible for the 2026-2027 CDBG Program Year, beginning on July 1, 2026. These include:

Sylvan Park Rehabilitation Project Phase II - Restroom Replacement & ADA Improvements for $170,201
Family Service Association of Redlands - Housing and Food Assistance for $7,500 Boys & Girls Club of Greater Redlands - Riverside - Family Strengthening for $7,500 YMCA of the East Valley - Legal Aid Services for $7,500 Partners Against Violence - Supportive Services for Victims of Violence for $7,500 The estimated allocation for Redlands Fiscal Year (FY) 2026-2027 is $200,201, which represents a decrease of $111,146 from the prior year, which is based on a projected 10% reduction in program funding from the most current U.S. Census statistics for poverty, overcrowded housing conditions and population estimates.

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As public comment, Bruce Laycook was concerned that $170,000+, earmarked for a park bathroom, overshadowed the $7,500 for food assistance, and he thought this was misaligned with the community's most urgent needs. Stephen Rogers said that engineering staff should manage the public works project through all phases from design to construction.

On motion of Council Member Eddie Tejeda, seconded by Council Member Paul Barich, the City Council unanimously directed staff, by roll call vote, to prepare the 2026-2027 Community Development Block Grant Program Cooperating City of Recommended Projects Form using the recommendations in this report and submit it to the County of San Bernardino Community Development and Housing Division.

Vote: 5 - 0 Passed

Contract Award Guardrail Installations Garden Street & Redlands Blvd

Facilities and Community Services Director Crocker reviewed a Public Works Contract with Alcorn Fence Company for guardrail installations on Garden Street at Hilton Avenue and at Redlands Boulevard between Ford Street and Palm Avenue, for an amount not to exceed $293,195.95. Furthermore, she explained the request to reject the lowest bid from R&J Construction in the amount of $290,575.25 as non-responsive. Staff evaluated each bid and identified Alcorn Fence Company as the lowest responsive and responsible bid. As public comment, Stephen Rogers reiterated his concern that an engineer should manage the public works project through all phases from design to construction, and he noted the staff report failed to include approval from engineering staff.

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 categorically exempt from environmental review in accordance with Section 15301 of the State's guidelines implementing the California Environmental Quality Act; rejected the bid from R&J Construction in the amount of $290,575.25; and approved the Public Works Contract with Alcorn Fence Company for an amount not to exceed $293,195.95.

Vote: 5 - 0 Passed

COUNCIL MEMBER ANNOUNCEMENTS AND ACTIVITIES

Mayor Saucedo attended the Common Vision Coalition Disability Resource Luncheon, a Measure I Ad Hoc Committee meeting, and the League of California Cities Community Policy Planning meeting. He participated in the Disaster Council meeting, toured the University of Medicine and Science in Colton, attended the League of California Cities Divisional Regional Meeting in Grand Terrace, visited the Black Chamber of Commerce Art Exhibit at the San Bernardino County Museum, and the Municipal Utilities and Public Works Commission meeting held on February 2nd.

Mayor Pro Tem Shaw
submitted his report of activities for the month of January 2026, as available online and attached to the staff report.

Council Member Barich
and Mayor Pro Tem Shaw enjoyed the Annual Kid's Fishing CC_February 3, 2026

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Derby at Ford Park on January 24. He praised staff for hosting such a great event that seems to attract more participants every year.

Council Member Tejeda
attended a council member briefing and enjoyed the Chamber of Commerce Annual Civic Awards & Installation Dinner at the Orton Center.

Council Member Davis
attended the Chamber of Commerce Annual Civic Awards &
Installation Dinner at the Orton Center, and she hosted the January Youth Council meeting, where Josiah Bruny, CEO and Founder of Music Changing Lives, energized and engaged the students.

ADJOURNMENT

There being no further action required the meeting adjourned at 7:50 P.M. The next regular meeting of the City of Redlands City Council will be held on February 17, 2026.

CC_February 3, 2026

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City Council Meeting F. 2.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Approve recommendations for appointments to the Human Relations Commission (Mayor Saucedo and Council Member Davis) MOTION:

I move to appoint Germaine Miles to serve a four-year term on the Human Relations Commission ending February 17, 2030.

1. I move to appoint Daniela Ramirez-Ponce to serve a one-year term on the Human Relations Commission ending December 31, 2026.

2. RECOMMENDATION:

In accordance with the Redlands Municipal Code Section 2.66.020, nominations to this Commission for five (5) members shall each be selected from one (1) council district, and be appointed by the Council Member of that corresponding district. Two commission members appointed by the city council shall be from the sophomore or junior class of a Redlands high school or college student.

Recommendation By:

Germaine Miles - District 1 Resident Council Member Davis Daniela Ramirez-Ponce - College Student Mayor Saucedo
DISCUSSION:

Two vacant seats exist on the Human Relations Commission due to the resignation of Alicia Gyllenhammer and the adoption of Ordinance No. 2995.

Ordinance No. 2995 reduced membership from nine (9) members to seven (7) and reorganized five (5) of its members by district (one member per district) and two (2) student members adding a college student.

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A public notice requesting interested residents from district 1 as well as local college students to submit an application for the Human Relations Commission was issued on January 7, 2026. In addition, the public notice was concurrently aired on Redlands TV and posted at the community bulletin board at the A. K.

Smiley Public Library. The local newspapers also received distribution of the public notice as well as the University of Redlands, Crafton Hills College, Cal State San Bernardino, and Riverside City College. The City received two applications from residents in district 1 interested in serving on this commission, and two applications from college students interested in serving on this commission.

The Human Relations Commission consists of seven members as follows:

Vacant (D1)
Kenneth Ford (D2)
Vanessa Annaguey Aranda (D3)
Julie Houston (D3)
Roy George (D5)
Emma Bernstein (student)
Vacant (student)
ALTERNATIVES:

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

SUBMITTED BY:

Amy Edwards, Senior Administrative Assistant
REVIEWED BY:

Charles M. Duggan, Jr., City Manager
Janice McConnell, Assistant City Manager
Attachments
Human Relations Notice
HRC College Applications
HRC Dist 1 Applications
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City Council Meeting F. 3.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Adopt Ordinance No. 2999 Amending Title 6 (Animals) and Title 18 (Zoning Regulations), updating the lists of permitted and accessory land uses, and updating development standards pertaining to the raising or keeping of hens within single-family residential zoning districts (Assistant City Manager Boatman)
MOTION(S):

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

I move to adopt Ordinance No. 2999.

RECOMMENDATION:

It is recommended that the City Council adopt Ordinance No. 2999 to amend Title 6 (Animals) and Title 18 (Zoning Regulations), to update permitted and accessory land uses and development standards for the keeping of hens within single-family residential zoning districts.

DISCUSSION:

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

ALTERNATIVES:

The City Council may continue this matter in order to allow additional time to review Ordinance No. 2999.

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STRATEGIC PLAN:

Not Applicable
SUBMITTED BY:

Jeanne Donaldson, City Clerk
RECOMMENDED BY:

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

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

Altheresa Rothschild, Assistant City Clerk
Fiscal Impact
Discussion:

Codification: $22/per page affected by the change.

Legal Publication: $375
Attachments
Ordinance No. 2999 Hen Keeping
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ORDINANCE NO. 2999
AN ORDINANCE OF THE CITY OF REDLANDS AMENDING TITLE 6
(ANIMALS) AND TITLE 18 (ZONING REGULATIONS) UPDATING THE

LISTS OF PERMITTED AND ACCESSORY LAND USES AND UPDATING

DEVELOPMENT STANDARDS PERTAINING TO THE RAISING OR

KEEPING OF HENS WITHIN SINGLE-FAMILY RESIDENTIAL ZON ING DISTRICTS.

WHEREAS, the City has initiated Ordinance Text Amendment No. 371 in accordance with Chapter 18.204 of the Redlands Municipal Code; and
WHEREAS, the City has authority under its police power to impos e land use regulations and development standards for the protection of the public health, safety, and general welfare; and

WHEREAS, on December 9, 2025, the Planning Commission held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, Ordinance Text Amendment No. 371; and

WHEREAS, on December 9, 2025, the Planning Commission recommended to the City Council that proposed Ordinance Text Amendment No. 371 be approved; and

WHEREAS, the proposed Ordinance Text Amendment No. 371 is exempt from environmental review in accordance with Section 15 061(b)(3) of the California Environmental Quality Act Guidelines; and

WHEREAS, in accordance with Government Code § 65854 and/or § 65090, on January 13, 2025, the City Clerk gave notice by publication in a newspaper of general circulation of the holding of a public hearing at which the proposed Ordinance would be considered by City Council; and

WHEREAS, on February 3, 2026, the City Council held a noticed public hearing at which interested persons had an opportunity to testify in support of, or opposition to, the proposed Ordinance.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF REDLANDS DOES ORDAIN AS FOLLOWS:

Section 1. Environmental Determination. The City Council has reviewed the matter and, based upon the facts and information contained in the staff report, administrative record, and written and oral testimony, hereby finds that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines because: there is no possibility that the Specific Plan Amendment(s) may have a significant effect on the environment, as it would further ensure the proper maintenance and regulations for the keeping of chickens (hens only) as an ancillary land use to the primary residential land use(s) within the various single-family residential districts of specific plans within the City; and Section 15378(b)(5) for organizational and administrative activities of governments that will not Redlands Regular Meeting of 02-17-26
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result in direct or indirect physical changes in the environment.

Section 2. The Table of Contents for Redlands Municipal Code Title 6 (Animals), Chapter 6.24 entitled “Miscellaneous Animal Regulations,” is amended as follows:

SECTION:

6.24.010: Permit Required For Keeping Livestock Or Other Nondomestic Animals

6.24.020: Permit; Conditions And Inspections

6.24.030: Hens And Rabbits

6.24.040: Revocation Of Permit

6.24.050: Burying Of Dead Animals

6.24.060: Rodent Infestations

6.24.070: Penal Provisions; Generally

6.24.080: Cattle Running At Large

6.24.090: Leaving Livestock Unattended On Street

6.24.100: Allowing Trespass By Animal Or Fierce Dog

6.24.110: Report Of Infected Animal To Health Officer Required

6.24.120: Noisy Animals; Prohibited

Section 3. Redlands Municipal Code Title 6 (Animals), Chapter 6.24 entitled “Miscellaneous Animal Regulations,” Section 6.24.010 is amended to read as follows:
“6.24.010: PERMIT REQUIRED FOR KEEPING LIVESTOCK OR OTHER NONDOMESTIC ANIMALS:

It is unlawful to keep within the city any livestock or any other nondomestic animals without first obtaining a permit from the animal services division.”

Section 4. Redlands Municipal Code Title 6 (Animals), Chapter 6.24 entitled “Miscellaneous Animal Regulations,” Section 6.24.020 is amended to read as follows:
“6.24.020: PERMIT; CONDITIONS AND INSPECTIONS:

A. The animal services division shall grant a permit, if applicable, only upon finding that: 1) the keeping of such animal(s) for which the permit is sought is not a prohibited use in the zone in which the applicant's property lies; 2) the keeping of such animal(s) will not be detrimental to the public health, safety, or general welfare of the public, and 3) applicant has sufficient land to sustain the animal(s) for which the permit is sought and this requirement shall be determined adequate by the department director or authorized representative.

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B. Each permit shall be renewed annually and conditioned upon the applicant's compliance with all of the following provisions:

1. Animal(s) shall be confined to a cage or other enclosure of sufficient size and strength to ensure animals are secured. Fencing materials shall be of adequate height and strength to prevent escape.

2. Fencing, cages and other enclosures for larger animals shall be kept at a distance of at least fifty feet (50') from all dwellings; and for each additional large animal this distance shall be increased by an additional fifty feet (50') up to a distance of two hundred feet (200'). Small animals shall be kept at a distance of at least twenty-five feet (25') from all dwellings.

3. Enclosures shall provide cover or shade to meet the need of and to protect the animal(s).

4. Water shall be made available at all times and held in a suitable container for the animal(s). Food shall be provided to meet the particular needs of the animal(s).

5. The premises where such animals are kept shall be maintained in a clean and sanitary condition at all times.”

Section 5. Redlands Municipal Code Title 6 (Animals), Chapter 6.24 entitled “Miscellaneous Animal Regulations,” Section 6.24.030 is amended to read as follows:
“6.24.030: HENS AND RABBITS:

A. Enclosures or cages for all hens, rabbits and Belgian hares shall be kept at a distance of at least ten feet (10’) from all dwellings.

B. Incidental sale of chicken eggs produced on the subject property is permitted. Sale of other unrelated products may be allowed pursuant to a Home Occupation Permit approved in accordance with Chapter 18.160 of Title 18 of this Code.”

Section 6. Redlands Municipal Code Title 6 (Animals), Chapter 6.24 entitled “Miscellaneous Animal Regulations,” Section 6.24.070 is amended to read as follows:
“6.24.070: PENAL PROVISIONS; GENERALLY:

A. It is unlawful for any person within the city to permit, cause or allow any of the acts provided for in sections 6.24.080 through 6.24.110 of this chapter.

B. No person shall slaughter chickens on residential property or other unauthorized facilities.

C. Abandonment, neglect, or inhumane treatment of animals is prohibited and shall be subject to applicable State law and the provisions of Section 1.22.060 of Chapter 1.22 of the Redlands Municipal Code.”

Section 7. Redlands Municipal Code Section 18.20.030 for the Agricultural (A -1) District, entitled “Permitted Uses,” is hereby amended to read as follows:

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“Principal permitted uses in the A-1 district include:

Accessory public parking areas which serve existing public facilities such as parks, trails or linear parks, or similar public uses, pursuant to the review procedures set forth in section 18.12.190 of this title for lots containing ten thousand (10,000) square feet or less or twenty (20) spaces or fewer. In this instance, "accessory" shall mean that the parking area is accessory to the existing land use of either park, trail or linear park, or similar public use.

Apiaries, provided that no hives or boxes housing bees are kept closer than three hundred feet (300') from any dwelling other than that occupied by the owner of the apiary.

Community Care Facility, licensed or unlicensed, for up to six (6) persons.

Employee housing for up to six (6) persons, as defined in chapter 18.08 of this title.

Farms or ranches for the grazing, breeding or raising of not more than two (2) horses, cattle, goats or sheep per acre. Except for the keeping of up to three (3) horses, as provided for in sections 18.44.020 through 18.44.050 of this title of the R-1 zone, no animal(s) shall be housed or corralled closer than five hundred feet (500') from any existing residence in the R-1, R-1-D, R-2, R-2-2000 or R-3 zone, or one hundred feet (100') from any property line.

Farmworker and agricultural worker housing, consisting of no more than 12 units or 36 beds, in accordance with Article XIV of Chapter 18.156 of this title.

Horse boarding.

Keeping of chickens (hens only), associated with a primary single-family dwelling unit, in accordance with Section 18.29.030 of this title.

Orchards, groves, nurseries, the raising of field crops, tree crops, berry crops, bush crops, truck gardening and commercial flower growing.

Single-family residences; provided, however, that there shall be not more than two (2) dwellings on each parcel of five (5) acres or more. Where parcels of land are already subdivided into parcels less than five (5) acres in area, there shall be permitted one dwelling for each lot, provided the lot contains dimensions and an area equivalent to the closest single-family residential zone.

Supportive and transitional housing for up to six (6) persons intended to serve the target population, as defined in chapter 18.08 of this title.

The sale of fruit, vegetables, produce, flowers and other similar products grown on the property; provided, however, that roadside stands used for such sales shall not exceed five hundred (500) square feet.”

Section 8. Redlands Municipal Code Section 18.21.030 for the Agricultural (A -1-20) District, entitled “Permitted Uses,” is hereby amended to read as follows:

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“Permitted uses in the A-1-20 zone are:

Apiaries, provided that no hives or boxes housing bees shall be kept closer than three hundred feet (300') from any dwelling other than that occupied by the owner of the apiary.

Farms or ranches for the grazing, breeding or raising of not more than two (2) horses, cattle, goats or sheep per acre. Except for the keeping of up to three (3) horses, as provided for in sections 18.44.020 through 18.44.050 of this title, no animal(s) shall be housed or corralled closer than five hundred feet (500') from any existing residence in the R-1, R-1-D, R-2, R-2-2000 or R-3 zone, or one hundred feet (100') from any property line.

Employee housing for up to six (6) persons, as defined in chapter 18.08 of this title.

Farmworker and agricultural worker housing, consisting of no more than 12 units or 36 beds, in accordance with Article XIV of Chapter 18.156 of this title.

Keeping of chickens (hens only), associated with a primary single-family dwelling unit, in accordance with Section 18.29.030 of this title.

Orchards, groves, nurseries, the raising of field crops, tree crops, berry crops, bush crops, truck gardening and commercial flower growing.

Single-family residences; provided, however, that there shall be not more than two (2) dwellings on each parcel of twenty (20) acres or more. Where parcels of land are already subdivided into parcels less than twenty (20) acres in area, there shall be permitted one dwelling for each lot, provided the lot contains dimensions and an area equivalent to the closest single-family residential zone.

Supportive and transitional housing for up to six (6) persons intended to serve the target population, as defined in chapter 18.08 of this title.”

Section 9. Redlands Municipal Code Section 18.24.030 for the Estate Agricultural (A- 2) District, entitled “Permitted Uses,” is hereby amended to read as follows:
“Principal permitted uses in the A-2 district include:

Community Care Facility, licensed or unlicensed, for up to six (6) persons.

Employee housing for up to six (6) persons, as defined in chapter 18.08 of this title.

Farmworker and agricultural worker housing, consisting of no more than 12 units or 36 beds, in accordance with Article XIV of Chapter 18.156 of this title.

Keeping of chickens (hens only), associated with a primary single-family dwelling unit, in accordance with Section 18.29.030 of this title.

Keeping of horses; provided, that stables and corrals for horses are kept not less than forty feet (40') from dwellings on the property, and not less than forty feet (40') from side Redlands Regular Meeting of 02-17-26
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property lines and streets, and not less than one hundred feet (100') from all other structures used or intended for human occupancy, and not less than one hundred feet (100') from a future residential building site, and not less than one hundred feet (100') from a public park or schools, and further:

A. Evergreen planting screens, or other protective devices, shall be required on property lines when minimum distances are used,
B. No grazing shall be permitted in any required yard, C. Lot area for one horse shall not be less than twenty-five thousand (25,000) square feet, with fifteen thousand (15,000) square feet additional lot area for each additional horse,
D. No more than three (3) horses may be kept on any lot or parcel.

Orchards, groves, nurseries, the raising of field crops, tree crops, berry crops, bush crops, truck gardening, and commercial flower growing; provided, however, that such uses are on a premises not less than five (5) acres in size.

Single-family dwellings, not more than one dwelling for each lot.

Supportive and transitional housing for up to six (6) persons intended to serve the target population, as defined in chapter 18.08 of this title.

Section 10. Redlands Municipal Code Section 18.28.035 for the Rural Residential (R - R) District, entitled “Accessory Uses,” is hereby amended to read as follows:
“Private residential recreation court, subject to approval of a permit in accordance with chapter 18.156 of this title.

Keeping of chickens (hens only), associated with a primary single-family dwelling unit, in accordance with Section 18.29.030 of this title.”

Section 11. Redlands Municipal Code Section 18.29.030 for the Rural Residential Animals (R-R-A) District, entitled “Permitted Uses,” is hereby amended to read as follows:
“Principal permitted uses in R-R-A Districts include:

Accessory animal raising associated with a primary single dwelling unit.

A. Regulations Established: This section establishes regulations to allow animal raising as an accessory use to a primary single dwelling unit. Table

18.29.030(c)(1) of this section identifies the types and numbers of animals allowed. Combinations of the animal types are allowed, provided:

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1. The total number in each category is not exceeded;

2. Where animal types are limited only by a maximum number per lot or unit, these animals are allowed in addition to any other accessory animal raising use. However, where animal types are limited by a ratio of animals per lot area, these animals may not be reused to allow another animal type;

3. For the purpose of this section, lots with attached multiple residential structures shall be limited to those animals allowed by table 18.29.030(c)(1) a and b of this section for lots less than seven thousand two hundred (7,200) square feet.

B. Public Health Laws: All animal raising land uses shall comply with public health laws regarding proper care and maximum number of animals.

C. Structures: Each animal raising land use includes all structures necessary to maintain and care for such animals (e.g., barn, corral, stable, pens and coops).

Such structures shall comply with all development standards including those specified by the land use district and this section.

D. Distance From Human Habitation: All animals, other than cats, dogs, canaries, birds of the species Gallus gallus domesticus, or birds of the psittacine family, shall be maintained at least seventy feet (70'), measured in a straight line, from any structure or area used for human habitation or public assembly (e.g., parks, churches, etc.) on adjoining property and forty feet (40') for structures and area used for human habitat or public assembly that is located on site. The area of human habitation shall not include cabanas, patios (attached or detached), private garages or storage buildings.

E. Distance From Property Lines: Structures for housing such animals shall maintain a clearance of at least five feet (5') from interior side and rear property lines, and fifteen feet (15') from side street rights of way, excepting an alley or bridle path, unless they comply with subsection F of this section.

F. Animal Enclosure: Animals may be maintained by a fence at least five feet (5') high and made of either chain link, wood with horizontal members no less than six inches (6") apart, solid masonry or other appropriate solid screening and confining materials. Such a fence may be located on an interior side or rear lot line and fifteen feet (15') from a side street right of way.

G. Distance From Water Well: All animals shall be kept no closer than one hundred feet (100') from a domestic water well.

H. Conditional Use Permit: Accessory animal raising of densities greater than or of animal types different from those specified by this section shall be subject to a conditional use permit.

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I. Newborn Animal Exception: Offspring of animals maintained in accordance with applicable lands and regulations which are less than four (4) months old or which have not been weaned, whichever is longer, of any animals which are maintained in compliance with the provisions of this code and any other applicable laws, ordinances and regulations shall not be subject to the maximum density or number limitations established by this title. Offspring of equestrian animals which are less than three (3) years old, for those bred on the property, are permitted. Such animals shall not be included as part of the number of allowable animals.

J. Confined Animals: Animals which are normally maintained in aquariums, terrariums, vivariums, birdcages or similar devices each of which does not exceed fifty (50) cubic feet and where such devices are maintained within an enclosed building shall be allowed as an accessory animal raising use. The maximum number or density limitations for these animal types shall comply with public health regulations.

K. Types And Number Of Animals Allowed: Table 18.29.030(c)(1) of this section identifies the types and number of animals allowed as follows:

TABLE 18.29.030(c)(1)
Animal Type Minimum
Lot Area
Maximum Density
Or Number
a. Dogs/cats Less than 7,200
7,200 - 9,999
10,000 - 19,999
20,000+
2 per lot or unit
3 per lot or unit
4 per lot or unit
5 per lot or unit1
b. Chickens or similar fowl (hens
only) or rabbits and other small
animals.

To be eligible, minimum open yard
dimensions of ten feet (10’) by
twenty feet (20’) shall be required.

Less than 4,000
4,000 - 7,200
7,201 - 9,999
10,000 - 20,000
20,000+
None
3 per lot
4 per lot
5 per lot
1 per 2,000 square feet
(maximum of 9 per species per
lot)
Male fowl 1 acre Maximum of 9 per lot with no
more than 2 of any species
c. Sheep and/or goat (female) 7,200 - 9,999 1 per lot Sheep and/or goat (female) 10,000 1 per 5,000 square feet Sheep and/or goat (male) 20,000+ 1 per lot (cumulative total of sheep and goats is 9)
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d. Cattle, buffalo, horses and other
large animals
20,000 square feet
with 60 foot
frontage
1 per 10,000 square feet with a
maximum of 9 (cumulative
total cannot exceed 9)
Note: 1. Requires conditional use permit for a kennel. For the purposes of this zone a "kennel" is defined as 5 or more cats or dogs and supersedes the definition of kennel as described in section 18.08.350 of this title.

L. Prohibited Animals: No person shall offer for sale, give away, or bring into the R-R-A zone any lion, tiger, bear, wolf, cougar, or any other wild undomesticated animal as defined in section 6.16.010 of this code. All such animals may be impounded subject to the provisions of section 6.16.010 of this code.

Community Care Facility, licensed or unlicensed, for up to six (6) persons.

Employee housing for up to six (6) persons, as defined in chapter 18.08 of this title.

Home occupations, as defined in chapter 18.08 of this title, and subject to the provisions of chapter 18.160 of this title.

Single-family dwellings, not more than one dwelling for each lot and uses permitted in the A-2, agricultural district, provided the area of the lot is not less than that required in the A-2 district. (Ord. 2190, 1992)
Supportive and transitional housing for up to six (6) persons intended to serve the target population, as defined in chapter 18.08 of this title.”

Section 12. Redlands Municipal Code Section 18.32.025 for the Residential Estate (R- A) District, entitled “Accessory Uses,” is hereby amended to read as follows:
“Private residential recreation court, subject to approval of a permit in accordance with chapter 18.156 of this title.

Keeping of chickens (hens only), associated with a primary single-family dwelling unit, in accordance with Section 18.29.030 of this title.”

Section 13. Redlands Municipal Code Section 18.36.025 for the Residential Estate (R- E) District, entitled “Accessory Uses,” is hereby amended to read as follows:
“Private residential recreation court, subject to approval of a permit in accordance with chapter 18.156 of this title.

Keeping of chickens (hens only), associated with a primary single-family dwelling unit, in accordance with Section 18.29.030 of this title.”

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Section 14. Redlands Municipal Code Section 18.40.040 for the Suburban Residential (R-S) District, entitled “Accessory Uses,” is hereby amended to read as follows:
“Accessory uses in the R-S District include:

Accessory building, such as bathhouse, cabana and storage shed.

Garage or carport.

Guesthouse.
"Home occupation", as defined in chapter 18.08 of this title, and subject to the provisions of chapter 18.160 of this title.

Private greenhouse or horticultural collection incidental to the residential use of the premises.

Private residential sports and recreation court, subject to approval of a permit in accordance with chapter 18.156, article X of this title.

Private swimming pool.

The keeping of not more than three (3) adult dogs and three (3) adult cats, and their litters up to the age of ten (10) weeks.

Keeping of chickens (hens only), associated with a primary single-family dwelling unit, in accordance with Section 18.29.030 of this title.”

Section 15. The single-family residential Specific Plans of the City of Redlands, or single-family residential distric t of adopted Specific Plans , are hereby amended to include the following provision in the applicable single-family residential district(s):
“Keeping of chickens (hens only), associated with a primary single-family dwelling unit, in accordance with 18.29.030 of Chapter 18.29 of Title 18 (Zoning Regulations) of the Redlands Municipal Code.”

Section 16. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance for any reason is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this resolution. The City Council hereby declares that it would have adopted this ordinance, each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sectio ns, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.

Section 17. The Mayor shall sign this ordinance and the City Clerk shall certify to the adoption of this ordinance and shall cause it, or a summary of it, to be published once in a newspaper of general circulation within the City, and thereafter, this ordinance shall take effect as provided by law.

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_________________________________
Mario Saucedo, Mayor

ATTEST:

____________________________________
Jeanne Donaldson, City Clerk

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I, Jeanne Donaldson, City Clerk, City of Redlands, hereby certify that the foregoing Ordinance was duly adopted by the City Council at the regular meeting thereof, held on the 3 rd day of
February 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

__________________________________
Jeanne Donaldson, City Clerk

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City Council Meeting F. 4.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Adopt Resolution No. 8750 acknowledging acceptance of a report for Completed State-Mandated Fire and Life Safety Inspections by the City of Redlands Fire Department in compliance with SB 1205 and California Health and Safety Code Section 13146.4 (Fire Chief Sessler)
MOTION(S):

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

I move to adopt Resolution No. 8750 accepting report for completed state-mandated fire and life safety inspections by the City of Redlands Fire Department in compliance with SB 1205 and California Health and safety Code Section 13146.4.

RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 8750 acknowledging receipt of a report documenting the completion of annual inspections for specific occupancies in compliance with SB 1205 and as required by California Health and Safety Code Section 13146.4.

DISCUSSION:

California Heath and Safety Code Section 13146.4 requires all fire departments that provide fire services to report annually to their administering authority on their compliance with Health and Safety Code Sections 13146.2 and 13146.3.

These sections require annual inspections of specific occupancy types including: public or private schools (used by more than six persons for educational purposes through the 12th grade), hotels and motels, as well as multifamily apartment buildings (three units or more) for compliance with the fire safety standards. The purpose of these annual fire and life safety inspections is Redlands Regular Meeting of 02-17-26
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to mitigate known hazards, reduce risk to the community, and ensure reasonable compliance with the California Fire Code. The date range for this annual report period is the 2025 calendar year. Section 13146.2 mandates that the local fire department inspect all hotels and motels annually. The Redlands Fire Department inspected 100% of the 17 hotels and motels identified in the City's jurisdiction. Section 13146.2 also mandates that the local fire department inspect all apartment buildings, except inside individual dwelling units. The code defines an apartment building as three or more attached units and excludes all duplex-style buildings. The Redlands Fire Department inspected 100% of the 298 apartment locations with three attached units or greater identified in the City's jurisdiction. Section 13146.3 also mandates that the local fire department inspect all public and private schools annually. The Redlands Fire Department inspected 100% of 40 public and private school locations identified within the City's jurisdiction.

The responsibility of conducting the required inspections is charged to the Community Risk Reduction Division of the Fire Department as overseen by the Fire Marshal. In conducting these inspections, the Community Risk Reduction Division staff review compliance with such items as fire sprinkler and fire alarm maintenance, safe exiting, fire extinguisher maintenance, conducting fire drills, and safe storage of combustibles. The state-mandated inspection program is evaluated annually for any applicable updates to parcels that may impact their inclusion in the program, such as: new construction, demolition, or change in occupancy classification. Redlands Fire completed 100% of the 355 mandated annual inspections during the 2025 calendar year as required by the California Health and Safety Code.

ALTERNATIVES:

The City Council may choose not to adopt Resolution 8750 and instead provide alternative direction to staff.

STRATEGIC PLAN:

Priority B - Public Health & Safety
SUBMITTED BY:

Rich Sessler, Fire Chief
RECOMMENDED BY:

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

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

Vince Anderson, Fire Marshal
Fiscal Impact
Fiscal Year: 25/26
Revenue Generating: N
Appropriation Required Y/N: N
Amount: N
Budgeted Y/N: N
Account No.: N
Discussion:

There is no fiscal impact associated with this recommended Council Action.

Attachments
Resolution 8750 Acknowledgment of State-Mandated Inspections HS 13146.4 Report
Redlands Regular Meeting of 02-17-26
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RESOLUTION NO. 8750
A RES

OLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

ACKNOWLEDGING RECEIPT OF A REPORT PREPARED BY THE FIRE

CHIEF OF THE REDLANDS FIRE DEPARTMENT REGARDING THE

INSPECTION OF CERTAIN OCCUPANCIES PURSUANT TO SECTION
13146 OF THE CALIFORNIA HEALTH AND SAFETY CODE
WHER
EAS, State of California Senate Bill No. 1205 added Section 13146.4 to the California Health and Safety Code; and,
WHE
REAS, Health and Safety Code Sections 13146.2 and 13146.3 require all fire departments or fire districts, including the Redlands Fire Department, that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel, motel, and apartment occupancies for compliance with building standards, as provided; and, WHER
EAS, Health and Safety Code Section 13146.4 requires all fire departments, or fire districts, including the Redlands Fire Department, that provide fire protection services to report annually to its administering authority on its compliance with Sections 13146.2 and 13146.3 at the time of its annual budget review or at another time as determined by the administering authority; and, WHER
EAS, Section 13146.2 mandates that the local fire department inspect all hotels and motels annually. RFD inspected 100% of the 17 hotels and motels identified in the City’s jurisdiction.; and,
WHE
REAS, Section 13146.2 also mandates that the local fire department inspect all apartment buildings, except inside individual dwelling units. Code defines an apartment building as three or more attached units and excludes all duplex-style buildings. RFD inspected 100% of the 254 apartment locations with three attached units or greater identified in the City’s jurisdiction; and, WHER
EAS, Section 13146.3 also mandates that the local fire department inspect all public and private schools annually. RFD inspected 100% of 40 public and private school locations identified in the City’s jurisdiction; and,
WHE
REAS, the City Council of the Redlands intends this Resolution to fulfill the requirements of the Health and Safety Code regarding acknowledgment of receipt of the 2025 compliance report (Exhibit “A").

NOW, THER

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

Sec
tion 1. That the City Council of the City of Redlands acknowledges receipt of the 2025 compliance report prepared by the Redlands Fire Department pursuant to Health and Safety Code sections 13146.2, 13146.3, and 13146.4.

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ADOPTED, SIGNED AND APPROVED this 17th day of February, 2026.

Mario Saucedo, Mayor
ATTEST:

Jeanne Donaldson, City Clerk
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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 17th day of February, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Jeanne Donaldson, City Clerk
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FIRE DEPARTMEN
T
January 19, 2026

EXHIBIT
“A”
City of

REDLANDS
Incorporated 1888
City of Redlands
35 Cajon Street, Suite 12, Redlands, CA 92373
909-798-7601
[email protected]

COMMUNITY RI
SK

REDUCTION DIVISION
Subject: 2025
Report of Compliance with California Health and Safety Code Section 13146.4:

State-Mandated Annual Fire Inspections
Honorable Mayor and City Council Members,
Background
H
ealth and Safety Code sections 13146.2 and 13146.3 require all fire departments or fire districts, including the Redlands Fire Department, that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel, motel, and apartment, occupancies for compliance with building standards.

Health and Safety Code section 13146.4 requires all fire departments, or fire districts, including the Redlands Fire Department, that provide fire protection services to report annually to its administering authority on its compliance with Sections 13146.2 and 13146.3 at the time of its annual budget review or at another time as determined by the administering authority.

Discussion
T
he following table provides a summary of the sites identified in the City’s jurisdiction by occupancy type that required a state mandated fire inspection and the associated number of completed inspections in calendar year 2025.

Occupancy Type Number of Identified Sites Number of Sites Inspected Hotels and Motels 17 17
K-12 Schools 40 40
Apartments
(+3 Units) 296 296
Conclusi
on
Redlands Fire Department completed 100% of the mandated annual inspections identified in the City’s jurisdiction during the 2025 calendar year as required by the California Health and Safety Code.

Vince Anderson | Fire Marshal
4 I:\cmo\Resolutions\Resolution No.8750.Fire Inspection.bm.01.29.2026.docx Redlands Regular Meeting of 02-17-26
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FIRE DEPARTMENT

January 19, 2026
City of

REDLANDS
Incorporated 1888
City of Redlands
35 Cajon Street, Suite 12, Redlands, CA 92373
909-798-7601
[email protected]

COMMUNITY RISK

REDUCTION DIVISION

Subject: 2025 Report of Compliance with California Health and Safety Code Section 13146.4:

State-Mandated Annual Fire Inspections

Honorable Mayor and City Council Members,

Background
Health and Safety Code sections 13146.2 and 13146.3 require all fire departments or fire districts, including the Redlands Fire Department, that provide fire protection services to perform annual inspections in every building used as a public or private school, hotel, motel, and apartment, occupancies for compliance with building standards.

Discussion
The following table provides a summary of the sites identified in the City’s jurisdiction by occupancy type that required a state mandated fire inspection and the associated number of completed inspections in calendar year 2025.

Occupancy Type Number of Identified Sites Number of Sites Inspected Hotels and Motels 17 17
K-12 Schools 40 40
Apartments
(+3 Units) 296 296

Conclusion
Redlands Fire Department completed 100% of the mandated annual inspections identified in the City’s jurisdiction during the 2025 calendar year as required by the California Health and Safety Code.

Vince Anderson | Fire Marshal
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City Council Meeting F. 5.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Adopt Resolution No. 8751 Declaring Weeds to be a Public Nuisance and setting March 17, 2026, as the Public Hearing for objections to the proposed weed abatement (Fire Chief Sessler) MOTION(S):

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

I move to adopt Resolution No. 8751.

RECOMMENDATION:

Staff recommends that the City Council adopt Resolution No. 8751 declaring weeds to be a public nuisance and setting March 17, 2026, as the public hearing for public comment on the proposed weed abatement.

DISCUSSION:

Resolution No. 8751 establishes a weed abatement procedure as outlined in Government Code Section 39501. This Code Section authorizes the City's legislative body to compel the owner, lessee, or occupant of buildings, grounds or lots within the city, to remove dirt, rubbish, weeds, and rank growths from buildings, or grounds and adjacent sidewalks. Resolution No. 8751 also requires the City Council to declare weeds to be a public nuisance on known properties, offers notice to property owners, and establishes an opportunity for property owners or occupants to be heard as to why said weeds should not be abated.

ALTERNATIVES:

The Council may choose not to approve Resolution No. 8751.

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STRATEGIC PLAN:

Priority B - Public Health & Safety
SUBMITTED BY:

Rich Sessler, Fire Chief
RECOMMENDED BY:

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

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

Vince Anderson, Fire Marshal
Fiscal Impact
Fiscal Year: 25/26
Revenue Generating: N
Appropriation Required Y/N: N
Discussion:

There is no fiscal impact associated with this recommended Council Action item.

Attachments
Resolution 8751 Declaring Weeds a Public Nuisance
Spring 2026 Weed Abatement Nuisance Declaration-Addresses Redlands Regular Meeting of 02-17-26
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RESOLUTION NO. 8751

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS

DECLARING WEEDS A PUBLIC NUISANCE AND INITIATING ABATEMENT

PROCEEDINGS
Section 1. The City Council elects to proceed under Government Code Sections 39501 and 39502, and Section 39560 et seq., to declare a public nuisance and abate all weeds growing upon streets, sidewalks, and private property in the City. In this resolution and in all subsequent proceedings, the term “weeds” means that, when mature, bear wingy or downy seeds that will attain such a large growth as to become a fire menace when dry, or that are otherwise noxious or dangerous, and includes sagebrush, chaparral, poison oak and poison ivy, when the conditions of growth are such as to constitute a menace to the public health, dry grass, stubble, brush, litter and all other flammable material that endangers the public safety by creating a fire hazard.

Section 2. The City Council declares as a public nuisance all weeds growing upon the streets, sidewalks, and private property in the City.

Section 3. The streets referred in Section 2 are described in Exhibit “A” attached hereto and made part hereof by this reference.

Section 4. The properties upon which, or in front of which, the nuisance declared in Section 2 exist are described in Exhibit “A” attached hereto and made part hereof by this reference.

The City Council finds and declares that weeds on or in front of parcels specified in Exhibit “A” are seasonal and recurrent in nature. In accordance with Governmental Code Section 39562.1, the seasonal and recurrent nuisances shall be abated under Government Code Sections 39510 through and including 39588, and upon the second and subsequent occurrence in same calendar year, no further hearings will be held and notice shall be by mailing a post card as provided in Government Code Section 39562.1.

Section 5. The Fire Chief, or his authorized designee, is the person designated to perform the duties imposed by Government Code Sections 39560 through 39588 upon the Fire Marshal, and all references in these proceedings to Fire Marshal means that person.

Section 6. March 17, 2026, at 6:00 pm, or as soon thereafter as the matter may be heard, at 35 Cajon St., Redlands, California, is fixed as the time and place for hearing all objections to the proposed removal of weeds.

Section 7. The Fire Marshal shall prepare notices as follows: The heading of the notice shall be “Notice to destroy weeds” in letters not less than one inch in height. The notice shall be substantially in the following form:

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NOTICE TO DESTROY WEEDS
Notice is given that on February 17, 2026, the City Council of the City of Redlands passed a resolution declaring that noxious or dangerous weeds were growing upon or in front of the property on this street, and more particularly described in the resolution, and that they constitute a public nuisance that must be abated by the removal of the weeds. Otherwise, they will be removed and the nuisance abated by the City and the cost of removal assessed upon the land from on or in front of which the weeds and will constitute a lien upon such land until paid. Reference is made to the resolution for further particulars. A copy of the resolution is on file in the office of the City Clerk.

All property owners having any objections to the proposed removal of the weeds, are notified to attend a meeting of the City Council of the City of Redlands to be held at 35 Cajon Street, Redlands, California, on March 17, 2026, at 6:00 pm, or as soon thereafter as the matter may be heard, when their objections will be heard and given due consideration.

Date: February 17, 2026

Fire Marshal
City of Redlands
Section 8. In addition to posting, the City Clerk shall mail written notice of the proposed abatement to all persons owning property described in Section 4 of this resolution. Then notice shall be mailed to each person to whom the property is assessed as shown on the last equalized assessment roll. The City Clerk shall mail the notice at least Five (5) days before the time set for hearing. The notice shall be in the form described above that is posted on the property, except that the notice shall be signed by the City Clerk and the notice need not contain the heading in one-inch letters.

ADOPTED, SIGNED AND APPROVED ON this 17th day of February, 2026.

Mario Saucedo, Mayor
ATTEST:

Jeanne Donaldson, City Clerk
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EXHIBIT “A”

[ See Attached ]
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Accessor Parcel Number Approximate Street Address
0167-171-13-0000 1200 W Lugonia Ave.
0169-341-08-0000 1517 W Lugonia Ave.
0167-171-15-0000 W. Lugonia Ave. & Tennessee St.
0167-171-16-0000 W. Lugonia Ave. & Tennessee St.
0167-221-10-0000 515 E. Lugonia Ave.
0167-221-15-0000 540 E. Pennsylvania Ave.
0167-221-16-0000 542 E. Pennsylvania Ave.
0167-221-17-0000 517 E. Lugonia Ave.
0167-061-02-0000 1175 Domestic Ave.
0167-061-10-0000 1502 Orange St.
0167-271-06-0000 700 E. Lugonia Ave.
0169-011-04-0000 1005 W. Lugonia Ave.
0168-051-09-0000 1106 E. Pioneer Ave.
0170-221-50-0000 332 N. Grove St
0170-241-32-0000 843 E. Citrus Ave
0172-013-76-0000 1265 Brookside Ave.
0176-392-06-0000 458 Marilyn Lane
0174-041-03-0000 322 E. Highland Ave.
0174-121-16-0000 221 E Sunset Dr. N
0174-154-01-0000 1320 Ford Street
0174-181-02-0000 1670 E. Citrus Ave.
0174-181-07-0000 24 S La Salle St.
0174-211-20-0000 1720 6th Ave.
0174-252-04-0000 219 E Sunset Dr. N
0174-252-11-0000 1350 Ford Street
0174-281-13-0000 Reservoir Road & Wabash Ave.
0174-631-59-0000 320 Kelisa Cir.
0174-631-60-0000 1423 Patricia Dr.
0174-631-61-0000 1383 Patricia Dr.
0174-681-04-0000 1744 Camelot Dr.
0175-191-35-0000 1084 W Sunset Dr.
0175-191-35-0000 1092 W Sunset Dr.
0175-191-43-0000 1086 W Sunset Dr.
0175-371-18-0000 1327 Arroyo Crest
0175-271-17-0000 1627 Alessandro Rd
0175-371-18-0000 1325 Arroyo Crest
0175-422-11-0000 1530 Smiley Heights Dr
Spring 2026 Weed Abatement Nuisance Declaration List
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0175-182-12-0000 945 Carob St.
0176-041-21-0000 Interstate 10 & Wabash Ave.
0176-062-32-0000 1661 Henrietta St.
0176-052-15-0000 724 W Sunset Dr.
0176-074-33-0000 102 W Mariposa Dr.
0176-111-10-0000 625 W Sunset Dr.
0176-111-11-0000 855 W Sunset Dr.
0176-111-12-0000 857 W Sunset Dr.
0176-121-02-0000 551 Manzanita Rd.
0176-141-01-0000 1746 Fairmont Dr.
0176-141-02-0000 1748 Fairmont Dr.
0176-141-02-0000 1753 Fairmont Dr.
0176-141-03-0000 1750 Fairmont Dr.
0176-141-04-0000 1752 Fairmont Dr.
0176-141-04-0000 1755 Fairmont Dr.
0176-141-07-0000 1754 Fairmont Dr.
0176-153-13-0000 101 E Sunset Dr. S
0176-172-07-0000 101 1/2 E Sunset Dr. S
0176-461-09-0000 551 W Sunset Dr.
0176-461-10-0000 549 W Sunset Dr.
0176-074-04-0000 1645 Halsey St.
0176-471-17-0000 1744 Fairmont Dr.
0292-032-38-0000 2405 W. Lugonia Ave.
0292-062-18-0000 1617 Orange Tree Lane.
0292-062-19-0000 1619 Orange Tree Lane.
0292-062-21-0000 1621 Orange Tree Lane.
0292-153-22-0000 1910 W Park Ave.
0292-165-10-0000 11036 Iowa St.
0292-167-02-0000 11017 Iowa St.
0292-182-08-0000 1417 W. Redlands Blvd.
0292-251-20-0000 27475 W Lugonia Ave
0292-441-08-0000 1239 Indiana Ct
0292-211-31-0000 58 Alabama St.
0292-481-93-0000 78 Alabama St.
0292-481-94-0000 80 Alabama St.
0292-341-26-0000 1741 Plum Ln.
0292-341-25-0000 1750 Plum Ln.
0292-152-21-0000 10796 New Jersey St
0293-083-01-0000 Barton Rd. & Ladera St.
0293-083-02-0000 Barton Rd. & Ladera St.

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0293-083-02-0000 Barton Rd. & Ladera St.
0293-083-02-0000 Barton Rd. & Ladera St.
0293-151-08-0000 11820 San Timoteo Canyon Rd.
0293-151-13-0000 11738 San Timoteo Canyon Rd.
0293-161-05-0000 11978 San Timoteo Canyon Rd.
0293-161-51-0000 27103 Beaumont Ave.
0294-081-14-0000 13170 San Timoteo Canyon Rd.
0294-081-15-0000 13180 San Timoteo Canyon Rd.
0294-081-16-0000 13188 San Timoteo Canyon Rd.
0294-081-28-0000 13510 San Timoteo Canyon Rd.
0294-081-34-0000 13308 San Timoteo Canyon Rd.
0294-081-35-0000 13310 San Timoteo Canyon Rd.
0294-081-37-0000 13314 San Timoteo Canyon Rd.
0294-081-41-0000 13316 San Timoteo Canyon Rd.
0294-133-34-0000 522 Elder Rd.
0294-133-45-0000 2020 Vinton Way
0299-213-12-0000 Reservoir Road & Wabash Ave.
0299-213-13-0000 Reservoir Road & Wabash Ave.
0299-213-14-0000 Reservoir Road & Wabash Ave.
0299-213-21-0000 Reservoir Road & Wabash Ave.
0300-012-11-0000 12261 Wabash Ave.
0300-012-09-0000 12262 Wabash Ave.
0300-022-01-0000 31031 E Outer Highway 10
0300-061-04-0000 31071 E. Sunset Dr N.
0300-071-14-0000 30934 E. Sunset Dr. S.
0300-171-21-0000 31396 Alta Vista Dr.
0300-241-17-0000 31286 Freya Dr
0300-241-19-0000 13083 South Ln.
0300-241-37-0000 13081 South Ln.
0300-241-38-0000 31507 Highview Dr.
0300-261-03-0000 31060 Bedford Dr.
0300-412-10-0000 12570 Sunset Ct.
0300-481-07-0000 12912 South Ln.
0300-521-05-0000 805 La Solana Drive
0300-621-06-0000 820 Panorama Point Dr.
0300-631-14-0000 31150 Sutherland Dr.
0300-631-13-0000 31160 Sutherland Dr.
1212-091-04-0000 1106 E. Lugonia Ave.
121-226-129-0000 810 E. Pennsylvania Ave.
121-237-108-0000 1003 Crystal Ct.

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121-237-109-0000 1009 Crystal Ct.
121-237-110-0000 1019 Crystal Ct.
121-237-111-0000 1029 Crystal Ct.
121-237-112-0000 1039 Crystal Ct.
121-237-113-0000 1049 Crystal Ct.
121-237-114-0000 1050 Crystal Ct.
121-237-115-0000 1040 Crystal Ct.
121-237-116-0000 1030 Crystal Ct.
121-237-117-0000 1020 Crystal Ct.
121-237-118-0000 1010 Crystal Ct.
121-237-119-0000 1004 Crystal Ct.
121-237-120-0000 1010 E. Lugonia Ave.
121-237-120-0000 1002 Crystal Ct.

Note: For this list, vacant parcels with no formally assigned street address for the site are approximated, based on nearby addresses of developed parcels. All notices and compliance documents are mailed to the property owner's address on-file with the County Assessor's Office.

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City Council Meeting F. 6.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Approve an Agreement for Collection Services with Cedar Business Services, LLC, related to miscellaneous accounts receivable and delinquent utility billing accounts at least 120 days old after the date of service (Management Services/Finance Director Garcia) MOTION:

If the City Council determines that staff's recommendation is appropriate, the following motion is provided:
"I move to approve an agreement for delinquent billing collection services with Cedar Business Services, LLC. related to miscellaneous accounts receivable and delinquent utility billing accounts at least 120 days old after the date of service."
RECOMMENDATION:

Staff recommends the City Council approve an agreement for delinquent billing collection services with Cedar Business Services, LLC, related to miscellaneous accounts receivable and delinquent utility billing accounts at least 120 days old after the date of service.

DISCUSSION:

The City has a policy to address accounts receivable that remain outstanding in excess of 150 days and its objective is to recover delinquent amounts in a manner that is fair to ratepayers and taxpayers, protects due process, and preserves customer dignity. Such receivables will be written off and turned over to a collection agency. All accounts to be written off will be submitted and recommended by the appropriate department head and require the signature of the Finance Director and City Manager.

This policy is intended not only to allow the customer ample time to render Redlands Regular Meeting of 02-17-26
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This policy is intended not only to allow the customer ample time to render payment, but also to expedite the collection process in the event of non-payment. In practice, the City provides multiple written notices prior to any referral, including the original bill and subsequent delinquency notices, and offers payment plans and customer assistance programs for eligible customers to support resolution before escalation.

Cedar Business Services, LLC was one of four financial collection agencies that responded to the City’s Request for Proposals (RFP) for Collection Agency Services, distributed on November 25, 2025. Proposals were evaluated and ranked on the agency's qualifications and its responsiveness to the requirements of the RFP. Secondly, cost proposals were reviewed and based on overall evaluation points. With an impressive proposal that highlighted the firm’s expertise in collections, Cedar Business Services, LLC was selected as the firm most qualified to perform the collection services. Additionally, the financial collection fee assessed by Cedar Business Services LLC is lower than the City's current provider.

SUBMITTED BY:

Danielle Garcia, Management Services/Finance Director
RECOMMENDED BY:

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

Yvette Garcia, City Attorney
Janice McConnell, Assistant City Manager
Dana Abramovitz-Daniel, Procurement Manager
Fiscal Impact
Discussion:

The proposed agreement has a minimal fiscal impact and represents a prudent use of existing resources. Approval would authorize Cedar Business Services, LLC to continue collection efforts on the City’s behalf at a reduced contingency-based fee of 19.5 percent, assessed only on amounts successfully recovered. No upfront costs are incurred, and funds collected through this process would otherwise remain uncollected. This was the lowest rate offered among proposals received and, as well, is lower than the rate of the City's previous provider (21 percent).

In FY 2024–25, delinquent miscellaneous accounts receivable totaling $24,261 were referred to the collection agency. Based on historical recovery rates, the estimated recoverable amount is $19,166, resulting in an associated collection fee of $5,095. This approach maximizes potential revenue recovery while limiting financial exposure and administrative burden to the City.

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Attachments
Cedar Business Services LLC Professional Service Agreement 2026 Cedar's Cost Proposal
Cedar's Technical Proposal
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A

GREEMENT TO PERFORM PROFESSIONAL SERVICES

This agreement for the provision of C ollection Services (“Agreement”) is made and entered in this 17 th day of February, 2026 (“Effective Date”), by and between the City of Redlands, a municipal corporation (“City ”) and Cedars Business Services, LLC a California 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 Accounts Receivable Management Services on certain referred debtor accounts and related 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 T he Servi ces that Consultant shall perform are more particularly described in Exhibit “A,” titled “Scope of Servi ces,” which is attached hereto and incorporated herein by this reference.

2.2 Consultant shall comply with applicable federal, state and local laws and regulati ons in the performance of this A greement 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 or her authorized designee, 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.

3.2 City of Redlands shall, subject to all requirements of law:
- Write authorizations for settlements on claims, in its sole discretion. - Provide the Consultant with a list of outstanding receivables. - Provide referrals and supply the necessary account information to the Consultant. - Notify the Consultant if efforts need to be ceased on accounts that are recalled. - Notify Consultant to reactivate and continue collection efforts when appropriate. - Request inventory listing, cancellation reports, history reports and dispute - resolution
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- P
rovide Consultant with information on direct pays within a week or less for any account held with Consultant

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.

The Initial Term of this Agreement shall be for a period of (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”), 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.

4.2 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 Total compensation for Consultant’s performance of the Services is a contingency-based fee of 19.5% on all amounts successfully collected on behalf of the City.

5.2 Consultant shall submit monthly Statements to City containing account names, numbers, dates of payments received, gross amounts of collections, and collection fees of Consultant. Consultant shall remit payment to the City by the 15 th of each month for any
collections received in the previous calendar month. All remit tances will be considered “Net Remits” as agreed upon.

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 Patrick Miller
City of Redlands Cedars Business Services, LLC
35 Cajon Street 5230 Las Virgenes Road, Suite 210
P.O. Box 3005 , (mailing) Calabasas, CA 91302
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edlands, CA 92373 [email protected]
[email protected] Phone:757-560-5801
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 “B,” titled “Workers’ Compensation Insurance Certification,” which is attached hereto and incorporated herein by this reference, prior to performance of the Services.

B. Comprehensive General L iability 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 self-insurance maintained by City.

E. Cyber Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Consultant in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual Redlands Regular Meeting of 02-17-26
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operty, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

F. 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 Redlands Regular Meeting of 02-17-26
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ding a position specified in City’s Conflict of I nterest 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 in-house counsel by a Party.

8.2 Consultant shall not assign any of the Services, except with the prior written approval of City and in s trict 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) business 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) business 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, 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 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 C EDARS BUSINESS SERVICES, LLC

By: ___________________________ By: ________________________________ Mario Saucedo, Mayor Patrick Miller, Director of Development & Solutions

ATTEST:

___________________________
Jeanne Donaldson, City Clerk

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XHIBIT "A"

SCOPE OF SERVICES

A. The Consultant shall provide debt collection services as described below:

1. Perform skip-tracing abilities at the state level.

2. Possess credit report accounts nationwide.

3. Possess a valid California business license.

4. Maintain current certificates of insurance covering professional liability and worker's compensation. Upon request from City or Redlands, the Consultant shall provide certificates of coverage.

B. Consultant shall perform services in accordance with all applicable state and federal laws which include but are not limited to the: Fair Credit Billing Act; Federal Equal Credit Opportunity Act; federal Fair Debt Collection Practices Act; state Rosenthal Fair Debt Collection Practices Act; and Regulation B, as amended, of the Consumer Credit Protection Act. Consultant shall adopt procedures and practices to ensure City of Redlands compliance with the Accounts Receivable Management Act.

1. Consultant shall provide full-service collection to include, but not be limited to, written correspondence and telephonic means of collection.

2. Consultant shall provide fully computerized office services, not merely an account card service, which shall include:
• Reporting to credit bureaus electronically
• Using an automated direct dialer system.
• Storage of all documents on a computer.
• Backing up data to a secure server.
• Working directly from the computerized system.
o In collaboration with City of Redlands, Consultant shall establish a secure, timely, and efficient transfer of account information. Any electronic exchange of information shall be via an approved method mutually agreed upon by the City of Redlands and the Consultant.

3. Consultant shall maintain a database accessible to City of Redlands with real-time information and data regarding collection accounts.

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4. The database shall be formatted in such a manner that the screens are printable, and the data is exportable.

5. The Consultant shall notify City of Redlands of any changes via email to IT accessibility and/or compatibility within ten (10) business days. • Consultant shall not release personal information and shall safeguard the information from disclosure. The Consultant is liable and shall be held accountable by City of Redlands for inappropriate use or disclosure of personal information.

6. The Consultant shall implement the following debt collection processes when providing services under this Agreement:
a. Collection Process:
o After the initial telephone/dialer contact, the account is transferred to a collector with an automatically generated credit report, based upon pre- determined account criteria.
o Collectors shall make contact attempts approximately every three (3) to ten (10) business days; depending on propensity to pay score, until contact is made. If no contact is made, skip-tracing begins. If no phone number is available (within City of Redlands media/data), skip-tracing begins immediately after assignment to contact the debtor. o When contact is made, the Consultant shall request that the debtor make a payment towards the full balance. If the debtor is unable to pay the amount owed, all demographics and financial history are sought to determine ability to pay.
b. Skip- Tracing Process:
o The Consultant shall perform skip-tracing, employment and income verification, and property search services. The Consultant's services shall include, but are not limited to the following:
 The Consultant shall utilize standard tools, such as credit reports from all three (3) major credit bureaus (Equifax, Experian. and Trans- Union), crisscross books, reconciling information from cable companies, and other entities, as well as matching it to the Consultant’s debtor account database.
 The Consultant shall have and retain records which include information on debtors' property ownership, marriages, divorces, probates, name changes, and criminal indexes.

 The Consultant shall update current database(s) quarterly. Updated information shall include the following if applicable:

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1. Real Estate by Situs & Alpha for specific states

2. UCC filings

3. Fictitious files

4. Crisscross phone and address for the continental United States

5. Corporate status

6. BOE

c. Cancellations:
o After extensive collection activities and all skip-tracing efforts have been exhausted, the account will be given a final management review by the Consultant. The Consultant's management staff will review all accounts, in order to verify that every effort has been made and the debtor has no assets to justify a lawsuit for balances of Ten Thousand dollars ($10,000.00) or higher. The Consultant's management staff may return the account to the Consultant's collection staff after the instructive management review where the collector will continue to perform additional specific work, if necessary.
o The Consultant shall immediately cease efforts on recalled accounts upon request of City of Redlands. The Consultant shall cancel and pull the account from the collection process and submit a "Client Cancellation Acknowledgement Report" electronically to City of Redlands. o The Consultant shall continue to skip-trace inactive accounts quarterly in order to re- establish contact or locate assets. The Consultant shall possess computer systems adequate for the storage and retrieval of all accounts (both active and inactive).
o At the time of closure, the Consultant shall return all debt collection files to City of Redlands, unless otherwise instructed by City of Redlands, and remove the delinquent account from national credit reporting. Once a debtor's account has been cancelled, City of Redlands may choose, after review, to re- activate and continue collection efforts.

d. Procedures and Timelines Used to Process Claims:

o Once City of Redlands has made its referrals and supplied the necessary account information to the Consultant, including when available; the debtor's social security number (SSN), the Consultant shall use its federally mandated first notice, which shall be sent to each debtor. Media/data format from City of Redlands may be hard copy or electronic download. An initial telephone call and/or telephone contact shall be made for each delinquent account as a first attempt for a possible quick resolution. Between one (1) to five (5) business days after City of Redlands has made its referral, each referred account shall have a minimum of one (1) notice and one (1) telephone call contact or attempted contact.

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e. Required Reports:

Consultant shall provide reports that capture information as described below and combine all accounts into one (1) cumulative list.

o Monthly Activity Report: The Consultant shall provide monthly activity reports to City of Redlands. The monthly activity report shall provide information including, but not limited to, an account's assignment date, balance, date last worked, geography, area code, and a variety of other additional information (as may requested by City of Redlands and when available to the Consultant).
o Performance Statistics: Upon City of Redlands request, the Consultant shall submit monthly Performance Statistics, which capture information on account summaries by age and statistical overview by status codes, etc. o Acknowledgement Report: Upon City of Redlands request, the Consultant shall confirm (in writing) all accounts/claims referred by City of Redlands where an account number has been assigned. The Acknowledgement Report shall include the debtor's name, date assigned, Consultant's account number, total dollars.
o Inventory Listing: Upon City of Redlands request, the Consultant shall furnish an inventory listing to City of Redlands. The Consultant shall submit the listing either monthly or quarterly (as required by City of Redlands), which captures information including debtor's name, account number, assigned amount, payments to date, outstanding balance, and the Consultant's recovery statistics.
o Cancellation Report: The Consultant shall submit monthly, to City of Redlands, a Cancellation Report containing an itemization and summary of all accounts returned to City of Redlands. The Cancellation Report shall include the account number, debtor's name, balance owing, and reason(s) for cancellation.

o History Report: Upon City of Redlands request, the Consultant shall provide History Reports to City of Redlands, which are cumulative reports reflecting the amount of dollars collected during the current statement period against the month in which they were assigned.

o Dispute-Resolution Report: The Consultant shall notify City of Redlands, in the event a debtor disputes all or part of the outstanding fine or cost recovery.

The disputed accounts will remain suspended until additional information is obtained relative to the dispute and instructions are given by City of Redlands to proceed, cancel, etc.

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XHIBIT “B”

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 insurer s 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.

VENDOR

By: Date: ___________________
Patrick Miller, Director of Development & Solutions

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Patrick Miller
Director of Government Business Development
Cedar Financial ║ Member of TCM Group ║ ACA International Main: (818) 224-3800 ║ Direct: (214) 307-4227 ║ Cell: (757) 560-5801 [email protected]

Cost Proposal from Cedars Business Services, LLC, a
Los Angeles County based California Small
Business (SBA)
City of Redlands, CA
Collection Agency Services
RFP # 20251125ER
December 16, 2025

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G. FEE/COST PROPOSAL.

A fee proposal should be submitted indicating the term of three (3) years with the option to extend the initial term of the agreement by two (2) additional one-year terms, on the same terms and conditions. It should also include the fee structure for the applicable services, including any applicable minimums, additions or penalties. Cost proposals must be submitted via separate sealed envelope and apart from the vendor’s actual project proposal. Cost proposals that are not received in a separate sealed envelope WILL cause the vendor’s entire proposal to be disqualified.

Cedars Business Services proposes a contingency-based fee of 19.5% on all amounts successfully collected on behalf of the City of Redlands. This performance-based structure ensures that the City incurs no upfront or out-of-pocket costs—our compensation is earned only when recoveries are made.

No collection = no fee.

Why This Model Benefits the City
• Aligns Cedars’ success directly with the City’s recovery goals. • Eliminates financial risk and guarantees payment only for measurable results. • Provides full-service collections without additional administrative burden.

Scope of Services Included in the Rate
• Complete account management from validation through payment processing. • Access to CollectCo® Client Portal with 24/7 reporting and real-time performance dashboards. • AI-driven call auditing and compliance monitoring on 100% of live calls. • Secure payment processing under PCI-DSS Level 1 and SOC 2 Type II certification. • Advanced skip tracing, data validation, and multi-channel outreach (letters, calls, email, SMS where permitted).
• Administrative support, account reconciliation, and monthly remittance reporting at no additional charge.

Competitive Advantage
Cedars’ 19.5% contingency rate is highly competitive compared to industry averages for similar municipal and utility portfolios, which often range from 25% to 35%. This rate delivers exceptional value—top-tier performance and compliance without increasing operational or financial burden.

Additional Value-Added Services (Included at No Extra Cost)

1. Utility Billing System Integration (API-Ready)
Secure API or SFTP integration with the City’s billing system to streamline placements and updates.

2. Customer Hardship & Assistance Referral
Compassionate outreach with referrals to City assistance programs when applicable.

3. Community Reporting & Analytics
Quarterly dashboards summarizing recovery by ZIP code, account type, and aging trends.

4. Disaster Recovery & Business Continuity
Redundant data centers and tested continuity plans to ensure uninterrupted service.

5. Quarterly Educational Briefings for City Staff
Complimentary sessions on regulatory updates, billing best practices, and consumer behavior trends.

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Patrick Miller
Director of Government Business Development
Cedar Financial ║ Member of TCM Group ║ ACA International Main: (818) 224-3800 ║ Direct: (214) 307-4227 ║ Cell: (757) 560-5801 [email protected]

Proposal from Cedars Business Services, LLC, a Los
Angeles County based California Small Business
(SBA)
City of Redlands, CA
Collection Agency Services
RFP # 20251125ER
December 16, 2025

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City of Redlands, CA
RFP#20251125ER
Collection Agency Services
11 PROPOSAL DOCUMENTS:

PROPOSAL COVER PAGE
Name of Firm, Entity or Organization:

Federal Employer Identification Number (EIN):

State of California License Number (If Applicable):

Name of Contact Person:

Title:

E-Mail Address:

Mailing Address:

Street Address (if different):

City, State, Zip:

Telephone: Fax:

Organizational Structure – Please Check One:

Corporation Partnership Proprietorship Joint Venture Other If Corporation:

Date of Incorporation: State of Incorporation:

States Registered in as Foreign Corporation:

Authorized Signature:

Print Name: ______________________________________________________ Signature: _______________________________________________________ Title: ____________________________________________________________ Phone: __________________________________________________________ This document must be completed and returned with your Submittal.

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City of Redlands, CA
RFP#20251125ER
Collection Agency Services
12 EXCEPTIONS OR DEVIATIONS TO SPECIFICATIONS

Note: Proposer must sign the appropriate statement below as applicable.

( ) Proposer understands and agrees to all terms, conditions, requirements and specifications stated herein.

Firm:

Signature:

( ) Proposer takes exceptions to terms, conditions, requirements or specifications stated herein. (Proposer must itemize each exception below and return with the Proposal Form.)
Firm:

Signature:

Proposer should note that any exceptions taken from the stated terms and/or specifications may, but not necessarily will be cause for their submittal to be deemed “non-responsive”, risking rejecting of the submittal.

Attached are _________ additional pages.

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City of Redlands, CA
RFP#20251125ER
Collection Agency Services
13 This document must be completed and returned with your Submittal

PROPOSER’S CERTIFICATION

Submit To: City of Redlands
Revenue Division
PO Box 3005
35 Cajon Street, Suite 15B
Redlands, CA 92373
Phone 909-798-7543
accountsreceivable @cityofredlands.org

CITY OF REDLANDS

REQUEST FOR PROPOSAL (RFP) CERTIFICATION

AND ADDENDA ACKNOWLEDGMENT

DUE DATE: December 17, 2025 DUE TIME: 5:00pm RFP #20251125ER TITLE: Collection Agency Services

VENDOR NAME: PHONE NUMBER:

VENDOR MAILING ADDRESS: FAX NUMBER:

CITY/STATE/ZIP: E-MAIL ADDRESS:

“I, the undersigned, certify that I have reviewed the addenda listed below (list all addenda received to date). I understand that timely commencement will be considered in award of this RFP and that cancellation of award will be considered if commencement time is not met, and that untimely commencement may be cause for assessment of liquidated damages claims. I further certify that the services will meet or exceed the RFP requirements. I, the undersigned, declare that I have carefully examined the RFP, specifications, terms and conditions as applicable for this Request, and that I am thoroughly familiar with all provisions and the quality and type of coverage and services specified. I further declare that I have not divulged, discussed, or compared this RFP with any other Offer or and have not colluded with any offerors or parties to an RFP whatsoever for any fraudulent purpose.” ___________ ____________ ____________ ____________ ____________ Addendum # Addendum # Addendum # Addendum # Addendum #

“I certify that this quote is made without prior understanding, agreement, or connection with any corporation, fi rm, or person submitting an RFP for the same material, supplies, equipment or services and is in all respects fair and without collusion or fraud. I agree to abide by all conditions of this RFP and certify that I am authorized to sign this response and that the offer is in compliance with all requirements of the RFP, including but not limited to certification requirements. In conducting offers with an agency for the City of Redlands respondent agrees that if this proposal is accepted, the respondent will convey, sell, assign, or transfer to the City all rights, title and interest in and to all causes of action it may now or hereafter acquire under the anti-trust laws of the United States for price fixing relating to the particular commodities or services purchased or acquired by the City. At the City’s discretion, such assignment shall be made and become effective at the time the purchasing agency renders final payment to the respondent.”

___________________________________________________ _______________________________________________ Authorized Agent Name, Title (Print) Authorized Signature Date

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NO-PROPOSAL RESPONSE

City of Redlands
Statement of “No Proposal”

If you do not intend to submit a proposal for this project, please complete and return this form prior to date shown for receipt of proposals to: City of Redlands, Revenue Department- PO Box 3005, 35 Cajon Street, Suite 15B, Redlands, CA 92373, Attn: Elizabeth Ramirez.

We, the undersigned, have declined to submit a proposal on your RFP # 20251125ER for diversity and Inclusion training for the following reasons:

Specifications are too “tight”, i.e. geared toward one brand or manufacturer only _________ (please explain reason below)
_________ Insufficient time to respond to Request for Proposals. _________ We do not offer this product/s or equivalent. _________ Remove us from your bidders’ list for this commodity or service. _________ Our product schedule would not permit us to perform to specifications. _________ Unable to meet specifications.
_________ Unable to meet insurance requirements.
_________ Specifications unclear (please explain below). _________ Competition restricted by pre-approved owner standards. _________ Other (please specify below).

Remarks:

Company Name: _______________________________________________________

Address: ______________________________________________________________

Signature and Title:

Telephone Number ____________________ Date _____________________________

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2 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Contents
B. Executive Summary ................................................................................................................................... 4 C. Approach and Methodology: .................................................................................................................... 5 Implementation Plan For The City ............................................................................................................ 5 Collection Process ..................................................................................................................................... 7 Skip Tracing ............................................................................................................................................... 9 Data Transfer and System Integration .................................................................................................... 10 Innovative Methods and Best Practices .................................................................................................. 11 Credit Reporting ...................................................................................................................................... 17 Consumer Payment Portal ...................................................................................................................... 19 Dispute and Complaint Resolution ......................................................................................................... 25 Agents Assigned to the City .................................................................................................................... 27 Collector Training .................................................................................................................................... 27 Customer Service & Client Engagement ................................................................................................. 30 Client Portal – Account Management ..................................................................................................... 31 Reports – where you can track all transactions/information ................................................................. 34 D. Firm Information/Organization. ............................................................................................................. 45 Areas of Expertise ................................................................................................................................... 46 Years in Business ..................................................................................................................................... 46 Total Number of Staff ............................................................................................................................. 47 Memberships & Industry Affiliations ...................................................................................................... 48 Comparable Government & Utility Programs ......................................................................................... 49 Client Satisfaction & Check-ins ............................................................................................................... 50 Client Reviews & Performance Feedback ............................................................................................... 52 E. Staffing. ................................................................................................................................................... 54 City’s Primary Contact Information ........................................................................................................ 54 Key Personnel Assigned to the City ........................................................................................................ 54 F. References. .............................................................................................................................................. 57 G. FEE/COST PROPOSAL. ............................................................................................................................. 59 Why Work With Cedars? ............................................................................................................................. 60

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3 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal

City of Redlands
Attn: Elizabeth Ramirez
PO Box 3005
35 Cajon Street, Suite 15B
Redlands, CA 92373

RE: Proposal Submission for Collection Agency Services – RFP #20251125ER

Dear Ms. Ramirez and Selection Committee,

Cedars Business Services, LLC is pleased to submit our proposal for Collection Agency Services (RFP #20251125ER). As a California-based small business with over 34 years of experience serving government entities, we understand the City of Redlands’ commitment to fiscal responsibility and community trust. We recognize the City’s need for a full-service collection program that manages miscellaneous accounts (fire inspections, false alarm fees, cost recovery, returned checks, airport fees, fines) on a monthly basis and utility accounts quarterly, as outlined in the RFP. We are dedicated to delivering a program that combines compliance, transparency, and efficiency to help the City achieve its revenue recovery goals.

Cedars manages over $500 million in active receivables for 63 government entities and 146 educational institutions, consistently achieving average recovery rates of 21% for government portfolios. This experience ensures scalable, compliant, and high-performing solutions for the City’s monthly placements of 20–30 miscellaneous accounts and quarterly utility placements.

Cedars’ proven success is built on a “Putting People First” approach that emphasizes empathy, transparency, and data-driven performance We strictly adhere to FDCPA, FCRA, and California regulations, supported by robust cyber liability coverage and SOC 2 Type II standards. Beyond compliance, our People-First philosophy ensures every interaction is handled with empathy and professionalism, reducing complaints and strengthening public trust.

Our proprietary CollectCo platform delivers real-time reporting, secure portals, and predictive analytics for complete transparency. CollectCo enables automated outreach, self-service payment options, and compliance auditing—giving the City full visibility and control without additional burden on staff.

We are confident that Cedars offers the City of Redlands the best long-term economic value and a partnership built on integrity, innovation, and results. Thank you for considering Cedars as your trusted partner. Please feel free to contact me directly at (214) 307-4227 or via email at [email protected] with any questions.

Sincerely,
Patrick Miller
Director of Government Business Development
Cedars Business Services, LLC
Main: (818) 224-3800 | Direct: (214) 307-4227 | Cell: (757) 560-5801 Email: [email protected]
5230 Las Virgenes Road, Suite 210
Calabasas, CA 91302
Phone: 818-224-3800
December 17, 2025

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4 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal B. Executive Summary
Cedars Business Services, LLC is pleased to submit this proposal for Collection Agency Services (RFP #20251125ER). As a California-based small business with over 34 years of experience serving government entities, Cedars specializes in delivering compliant, technology-driven, and consumer- focused collection solutions that align with municipal values of transparency and fairness.

Proven Expertise
Cedars manages over $500 million in active receivables for 63 government entities and 146 educational institutions, consistently achieving average recovery rates of 21% for government portfolios. Our experience spans all receivable types identified in the RFP—including utility billing, fire inspections, false alarm fees, and miscellaneous accounts—ensuring scalable, high-performing solutions for the City’s monthly and quarterly placements.

Cedars’ proven track record includes successful partnerships with California Department of Transportation (CalTrans), Contra Costa County – Animal Services Division, California Department of Resources Recycling and Recovery (CalRecycle), California Board of Barbering and Cosmetology, and California Public Employee Retirement System (CalPERS). These engagements demonstrate our ability to manage complex government and utility portfolios under strict compliance requirements while delivering measurable results. For example, Cedars provides third-party collections, skip tracing, and litigation support for CalPERS and regulatory receivables for the Board of Barbering and Cosmetology— services that mirror the scope and compliance expectations outlined in this RFP.

Technology & Transparency
Cedars’ proprietary CollectCo™ platform is the cornerstone of our digital-first approach, designed to provide the City of Redlands with complete visibility, control, and confidence throughout the collections process. CollectCo™ offers:
• Real-Time Reporting & Dashboards
• Secure Client Portal
• Predictive Analytics
• Automated Outreach
• Self-Service Consumer Portal
• Compliance Monitoring

People-First Approach
Cedars’ philosophy of “Putting People First” ensures every interaction is handled with empathy and professionalism. Our collectors are trained in de-escalation, cultural sensitivity, and financial hardship resolution, reducing complaints and strengthening public trust.

Compliance & Security
Cedars maintains industry-leading standards, including SOC 2 Type II and PCI-DSS Level 1 certifications, AES-256 encryption, and annual staff re-certification through Cedar University. We adhere strictly to FDCPA, FCRA, and California regulations, ensuring full compliance and data protection.

With a contingency-based fee structure and proven results, Cedars offers the City of Redlands a partnership built on integrity, innovation, and measurable outcomes.

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5 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal C. Approach and Methodology:

Implementation Plan for the City
The type of support, level of support and which members that are needed from the City staff and IT team will differ from project launch, implementation, and post implementation. Typically, more assistance and involvement are needed from our client during the first 30 to 60 days of project implementation, and far less once the project is up and running.

The staff members from the City that will likely need to be involved include:
• IT Staff to facilitate setting up and sharing data files to and from Cedars and the City via secure SFTP or similar platforms. Your IT staff will provide Cedars’ IT team with all sample files and file layouts. All of this applies to the following objectives:

1. Establish secure connection.
• Determine exactly which data fields the City will be sending to Cedars. • Consult and learn how any of these data fields drive correspondence, written payment postings, accounting and reporting needs and requirements that the City has.
• Program customized data mapping, importing, and exporting scripts and BOTS to facilitate and automate various collections and demographic record updates, payment processing, accounting and daily, weekly, monthly, or other frequency of reporting that is required.

o Operations Management and Consumer Support with both the City and Cedars’ staff should share conference call(s) to determine any standard or uniquely tailored methods of serving your consumers, processing your accounts, and meeting your Client Service needs and requirements.

We consult with you regarding the following:

o Preferred methods of communication when the City and Cedars’ staff need to reach out to one another with questions, and other items that may come up from time-to-time. o How ‘Direct Pays’ received by the City will be reported to Cedars. o Introduction to our Client Services Department and discussions of how your emails and phone calls with questions will be addressed promptly and professionally. o Determining and defining all required payment, reporting and other data processing and frequencies (which are daily, weekly, biweekly, monthly, etc.).

All processes are written and then processed in a test environment until any all exceptions are identified and corrected… all before we go live.

Cedars has developed a proven implementation framework that ensures a smooth, efficient, and fully compliant transition of accounts from the City to our collections program. Our process minimizes disruption, protects consumer data, and delivers immediate transparency into recovery activities.

Phase 1: Project Kick-Off (Weeks 1–2)
• Kick-Off Meeting: Within five (5) business days of award, Cedars will meet (virtually or in person) with the City’s Finance staff to review scope, expectations, timelines, and reporting requirements.

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6 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal • Designated Team Assignment: Cedars will assign a dedicated Client Success Manager (CSM), compliance officer, and operations lead as the City’s support team. • Data & File Transfer Setup: Our IT team will configure secure file transfer methods (SFTP, FTPS, or portal upload) for automated and manual placements. File mapping will be tested and validated.
• Business License & Compliance Documents: Cedars will obtain and provide the City of Redlands Business License (if needed) and confirm all insurance and compliance documentation.

Phase 2: Data Integration & Testing (Weeks 2–3)
• Data Validation: Cedars will work with City staff to scrub and validate initial account data for completeness and accuracy (addresses, balances, prior activity). • System Testing: Trial uploads will be processed in our CollectCo® system to confirm formatting, reporting, and account visibility in the City’s client portal. • Secure Access Setup: The City’s designated staff will receive portal login credentials with multi- factor authentication (MFA) for secure access to real-time account data.

Phase 3: Training & Program Launch (Week 3–4)
• Staff Training: Cedars will provide orientation for City staff on the CollectCo® Client Portal, including reporting, file uploads, and real-time monitoring. • Collector Training: Assigned Cedars government collectors will undergo Redlands–specific training on City policies, expectations, and compliance requirements. • Initial Placements: The City will transmit the first batch of accounts, which Cedars will begin working within 24 hours of placement.

Phase 4: Performance Monitoring & Reporting (Ongoing)
• Monthly Reports: Delivered to the City Finance Department summarizing account status, payments, balances, and collection activities in compliance with RFP requirements. • Annual Reports (Fiscal Year-End, June 30): Comprehensive summaries with period-to-date and year-to-date performance, including collection percentages and aging reports. • Quarterly Reviews: Cedars’ senior management will conduct Quarterly Business Reviews with the City to discuss KPIs, address challenges, and plan enhancements. • Continuous Feedback: Cedars will solicit City feedback through satisfaction surveys, performance reviews, and ongoing communications.

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7 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Collection Process
The process below is provided as a sample framework; Cedars will tailor actual workflows based on the City’s data, policies, and objectives.

Cedars’ Technology-Driven, Data-Backed Omnichannel Platform If awarded the contract, Cedars will deploy its data-driven omnichannel communications platform to maximize recovery of the City’s delinquent accounts while ensuring transparency, compliance, and fairness in every interaction. Unlike traditional “multichannel” agencies, where systems operate in silos, Cedars’ fully integrated environment delivers a seamless experience across letters, phone, text, email, and our secure web portal. This ensures consumers can resolve their obligations using the most convenient method for them, leading to faster resolutions and higher recovery rates.

Account Rehabilitation and Data Integrity
Prior to initiating contact, Cedars will send a validation notice to every responsible party and scrub account records against the National Change of Address (NCOA) database. Address element correction is applied automatically to ensure accuracy. These practices reduce undeliverable mail and speed initial engagement. In the event a consumer has a change of address on file, we will update the account and forward the letter to the new address. We also perform address element correction. For example, if an address is listed as “Asdal Stt,” we will correct it to “Ashdale Street.”

Where individuals owe multiple City receivables, our system can link companion accounts into a single file for ease of management, while ensuring accounts are never co-mingled with those of other clients.

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8 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Data Access & Advanced Analytics
Cedars will leverage decades of government recovery experience, enhanced by access to premier data sources, to locate responsible parties quickly and completely. Our Right Party Contact (RPC) platform consolidates phone, address, and email records from multiple databases, creating a comprehensive profile for each debtor.

Every City placement will be prioritized using our account scoring system, which draws from historical payment data, demographic behavior, and proprietary analytics. This enables Cedars to focus resources on accounts most likely to resolve quickly while still ensuring that all accounts are worked thoroughly.

Artificial Intelligence & Compliance Oversight
Cedars will apply AI-driven call auditing across 100% of live collection calls performed on behalf of the City. Rather than reviewing calls after they occur, our proprietary AI technology monitors interactions in real time, providing immediate feedback and coaching to collectors to ensure full compliance with the Fair Debt Collection Practices Act (FDCPA), Regulation F, and California collection laws, while maintaining a courteous and professional tone with every resident.

Supervisors have the ability to listen, whisper, or intervene live to guide any conversation that requires additional oversight. This proactive quality-control system allows Cedars to identify and correct issues instantly—before they become complaints—resulting in stronger compliance, greater transparency, and enhanced protection of the City’s reputation within the community.

Omnichannel Engagement
Our omnichannel platform ensures consumers can engage with us through their preferred communication channel:
• Letters
• Phone calls
• Email (with consent)
• SMS text messaging (with consent)
• 24/7 web portal and IVR

Every communication, regardless of type, is automatically recorded into the account record. Consumers can choose full self-service options through our secure payment portal or interact with a live agent as they prefer.

Data Science & Recovery Optimization
Our data scientists will apply machine learning algorithms to payment histories and demographic information to predict which accounts are most likely to be recovered quickly. Accounts are scored and routed accordingly, allowing collectors to prioritize high-probability cases while still working every account. This results in faster recovery cycles for the City and more efficient use of resources.

CollectCo® – Proprietary Collection Software
Cedars’ proprietary CollectCo® platform has been refined over three decades and is designed specifically for government receivables. For the City, it will provide:
• Client Portal – 24/7 access to account status, recovery metrics, and detailed reports.

Cedars audits 100% of
inbound and outbound calls
using AI-driven monitoring.

Every call is recorded, audited,
and available for City review to
guarantee transparency.

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9 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal • Consumer Portal – Consumers will be able to securely review their balance, upload documents, set up payment plans, or pay in full online.
• Full Transparency – All notes, call recordings, and payment histories will be available to the City through real-time dashboards.

Payment Plan Technology & Negotiation Tools
Our collectors are trained to seek payment in full on first contact whenever possible, but our system is designed to support the City’s requirements for Payment Plan Arrangements (PPA):
• Automated pop-up windows on collector screens provide approved negotiation options, ensuring consistent application of City policies.
• Consumers can establish customized payment schedules (monthly, bi-weekly, etc.) with pre- authorized debit/credit drafts or ACH transfers.
• Automated reminders (letters, calls, emails, or texts) reduce missed payments, while system alerts notify collectors immediately if a payment fails.

All payment plan processes are fully compliant with FDCPA, PCI DSS, and California-state regulations. For consumers who prefer not to engage directly, Cedars also provides encrypted email options for secure payment reminders and settlement agreements.

Payment Options for Debtors
Cedars offers multiple convenient payment methods, including:
• Online Payments – Secure web portal for 24/7 payments. • Phone Payments – IVR and live agent-assisted transactions. • Mail Payments – Traditional check/money order processing. • In-Person Payments – Available at designated locations. • Installment/Payment Plans – Flexible payment arrangements based on debtor financial capacity.

Skip Tracing
Skip tracing is one of the most important drivers of successful recoveries, especially in municipal collections where responsible parties may relocate. If awarded the Redlands contract, Cedars will apply its multi-layered waterfall skip tracing process, which has achieved successful right-party contact in over 75% of accounts across our government portfolio.

Our process begins with an automated scrub of every account through premier data providers, including LocateSmarter, LexisNexis Accurint, TransUnion/TLO, Experian, and Equifax, as well as proprietary API integrations. If a valid number or email is found, the account is immediately returned to our calling sequence. If the number is deemed invalid, it is stored and flagged so vendors cannot return the same bad information, and the account re-enters the waterfall for continued research until new contact details are identified.

Accounts that remain unresolved after full automation are escalated to manual skip tracing conducted by Cedars’ experienced research team. These collectors leverage decades of expertise, along with specialized private and public data portals, to locate responsible parties and assets that automated vendors cannot identify. High-balance cases or accounts flagged for potential litigation are given additional manual attention to ensure every viable recovery path is pursued.

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10 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Once contact information is secured, Cedars’ omnichannel communication system ensures that every consumer can be reached and engaged in the manner most convenient for them. With consumer consent, we utilize phone calls, letters, emails, text messages, and our secure CollectCo® portal. Our AI- driven processes analyze when individuals are most likely to be active on their devices, scheduling outreach during those optimal times to maximize engagement.

This combination of automated skip tracing, manual research, and omnichannel engagement ensures that no City account is overlooked. Whether through automated updates, manual investigation, or ongoing monitoring of credit activity, Cedars will pursue every reasonable opportunity to identify liable parties and secure recovery for the City.

Data Transfer and System Integration
If awarded the contract, Cedars will establish secure, automated data transfer processes with the City to ensure efficient and compliant handling of all placements, payments, and reporting files. We will support the City’s preferred transfer method—your preference is our preference—with the following secure channels available:

• FTPS (Implicit or Explicit, secured by TLS/SSL)
• SFTP (secured by SSH)
• Web Portal (secured by TLS/SSL)

Cedars’ IT team will work directly with the City Finance staff to configure data mapping between our systems. This includes:
• Inbound Files – Receivable placements provided by the City. • Outbound Files – Demographic updates, payment and remittance files, settlement information, and accounting transaction records.
• Reporting Files – Monthly and YTD reports by account type, recovery status, and department, plus any custom reports the City requires.

This approach ensures the City has complete transparency and reliable updates at every stage of the recovery process, with all data securely transmitted, fully auditable, and tailored to City’s operational and reporting requirements.

Data Security Statement
Cedars places the highest priority on the security, confidentiality, and integrity of client data. All information transmitted to and from our systems will be encrypted using industry-standard protocols, including TLS/SSL and SSH. Our systems are housed in a SOC 2 Type 2-certified environment, with rigorous controls that have been independently audited to verify compliance with the five Trust Service Criteria: security, availability, processing integrity, confidentiality, and privacy.

Cedars maintains full PCI-DSS Level 1 certification for all payment processing activities and adheres strictly to the Fair Debt Collection Practices Act (FDCPA), Regulation F, and all applicable Georgia and federal privacy regulations.

Access to any City data is role-based and protected by multi-factor authentication, ensuring that only authorized personnel can view or handle sensitive information. All system activity is continuously monitored through real-time intrusion detection and logging, providing complete visibility and security Redlands Regular Meeting of 02-17-26
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11 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal oversight. This layered protection framework ensures that the City’s data—and its consumers’ information—remain fully secure at every stage of the collection process.

In addition, Cedars retains all records for a minimum of seven years. Our internal compliance team conducts quarterly audits and annual penetration testing to ensure ongoing system resilience.

By combining independent third-party audits, encryption standards, and continuous monitoring, Cedars guarantees that the City’s sensitive information will be fully protected throughout the lifecycle of the collection program.

Innovative Methods and Best Practices
Cedars recognizes that municipal debt recovery requires both innovation and flexibility. While each client engagement is customized, the following Proactive Dialer Approach is provided as a sample of the type of structured outreach strategy Cedars may deliver for the City. If awarded the contract, we will adapt these methods to the City’s specific needs, data sources, and program objectives.

Proactive Dialer & Omnichannel Strategy
Our system initiates daily outreach using a predictive/progressive dialer, targeting both primary and alternate numbers. Outreach cycles combine calls, ringless voicemail drops, SMS, emails, and letters, ensuring multiple points of contact through the responsible party’s preferred channel.

Illustrative Contact Cycle:
• Day 1: Call attempt (no voicemail/SMS)
• Day 2: Ringless voicemail drop
• Day 3: Call attempt (no voicemail/SMS)
• Day 4: SMS outreach
• Day 5: Call attempt (no voicemail/SMS)
• Day 6: Email outreach with resolution options
• Day 7: Call attempt + documentation review

Additional Touchpoints:
• SMS campaigns: Minimum of 2 per week.
• Email campaigns: Every 2 days, with clear payment resolution options. • Demand letters: Two escalating written notices mailed to reinforce urgency. • Voicemail drops: Strategically placed after two weeks and before closure to re-engage the debtor.

Structured Cool-Off and Re-Engagement
If outreach shows declining responsiveness, Cedars may implement a manager-reviewed cool-off period (typically one month) to avoid over-contact and re-engage later with a fresh cycle. A final cool-off and re-engagement cycle may occur after four months of non-response before recommending closure.

Compliance and Documentation
• Adherence to FDCPA’s 7-in-7 Rule and all Georgia-specific requirements. • All calls, texts, voicemails, emails, and letters are documented, time-stamped, and retained for at least one year.

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12 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal • Supervisors monitor engagement and liquidation trends monthly to adjust strategies. • Performance metrics—such as contact rates, engagement levels, and payment resolutions—are tracked and shared with the City.

In summary, this process demonstrates how Cedars combines automation, omnichannel outreach, advanced skip tracing, and structured management oversight to maximize recoveries. If awarded, Cedars will work closely with the City to refine and customize this strategy into a program tailored to its specific receivables, policies, and community needs.

Account Recall and Documentation Return
Cedars upholds that when directed by the City, we will immediately cease all collection activity on any account previously assigned. Upon such direction, Cedars will promptly return to the City all documentation and records pertaining to that account, including account notes, correspondence, payment history, call recordings, and any related materials.

This process ensures that the City retains full control over its accounts and that Cedars remains fully aligned with the City’s instructions and oversight at all times.

Placement Accounts Entry Flowchart
This image is a workflow flowchart that illustrates the process Cedars follows when handling new account placements from a client. It maps out each decision point and action step from the moment a file is received until it is either returned, traced, sent for legal review, or placed into collections.

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13 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Here’s a breakdown of the steps shown:

1. File Receipt & Storage
• The agency’s MIS (Management Information System) receives a debt collection request from a client.
• The request is downloaded and stored on the MIS network drive. • Files are prioritized.

2. File Assignment & Initial Scrubs
• Deputy Manager assigns files to the File Entry Team.
• Files are scrubbed for duplication.
o If duplicate → the file is removed.
o If not duplicate → the file is scrubbed for bankruptcy.

3. Data Review & Validation
• A Data Entry Specialist verifies completeness of information. o If incomplete/missing information → file is moved back to client for correction or additional info.
o If information is complete → the file is entered into the collection CRM system.

4. Client Communication
• A Client Success Manager (CSM) sends an acknowledgment back to the client confirming receipt.

5. Consumer Scrub & Preparation for Action
• Consumer data is scrubbed for litigation (checking for legal eligibility, validity, etc.). o If the file doesn’t qualify for legal review → it is either corrected and resent or set aside. o If the file qualifies → it can be sent to the legal team.

6. Tracing & Data Accuracy
• Files go through tracing to locate the debtor (skip tracing). • MIS audits the accuracy of trace data.
o If errors are found → file is sent back to Quality Assurance. o If accurate → a first demand letter is sent to the consumer.

7. Quality Assurance & Legal Review
• Files that don’t pass initial checks are routed to a Quality Assurance Officer. • Files that qualify are sent to the legal team for potential litigation.

Key Features of the Workflow:
• Decision points (Yes/No diamonds) dictate whether files move forward or get rerouted. • Parallel checks (duplication, bankruptcy, completeness) ensure data integrity before consumer contact.
• Audit and QA loops show continuous quality control.
• Client communication (acknowledgment letters, requests for additional info) are built into the process.
• The process ends in one of three ways:
o The file is returned to the client (if incomplete or unqualified).

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14 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal o The file is escalated to litigation.
o The first demand letter is sent to the consumer to begin active collection.

Chart – Lifecycle of a Collection File (sample)

Cedars' Audit Phase 1 – Collections Workflow Overview

1. Initial Skip Trace
a. Every new account undergoes skip tracing to verify and update contact information. b. If skip tracing fails, the file is returned or held pending additional data.

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15 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal

2. First Demand Notice (Letter 1 or Email)
a. Once skip tracing is completed, the first written notice is sent to the debtor via letter or email.
b. This notice initiates the audit phase and establishes the first official contact attempt.

3. Phone Call Campaign
a. A structured sequence of outbound phone calls begins immediately:
i. 2 calls in the morning
ii. 2 calls in the afternoon
iii. 2 calls in the evening
b. This sequence continues until 20 total call attempts have been made across all available numbers.

4. Email Outreach
a. A total of 10 emails are sent over the course of 20 working days as part of the multi- channel communication effort.

5. Second Demand Notice
a. If 45 days pass from the first letter and no resolution has occurred, a second demand notice is issued.
b. If no right-party contact (RPC) is achieved, the file moves into deeper engagement efforts.

6. Attempt to Establish Contact
a. Additional efforts are made to establish contact with the debtor:
i. 4 more call attempts on all available numbers
ii. Send 10 text messages
iii. Initiate second voice attempt workflow

7. Letter 3 Sent
a. A third notice is issued during this phase as a final written outreach attempt.

8. Phase 1 Closure
a. Once the required communication cycles are completed (or contact is confirmed), Phase 1 concludes, and the file moves to either resolution, monitoring, or escalation based on response.

Key Features of This Workflow
• Multi-channel approach: Phone, email, SMS, and written letters used in tandem. • Escalating contact cadence: Contact attempts become increasingly targeted based on consumer behavior.
• Compliance-focused: All attempts follow timing and frequency rules to comply with FDCPA and TCPA.
• Automated tracking: Every step is logged and auditable within Cedars’ CollectCo™ platform.

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16 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal

Audit Phase 2 Collections Workflow
The Audit Phase 2 process begins after the completion of initial contact efforts under Phase 1, targeting accounts that have not yet responded or resulted in a right-party contact (RPC). This phase focuses on enhanced skip tracing, secondary outreach, credit reporting review, and legal evaluation, ensuring every recovery avenue is exhausted before a file is closed.

1. Skip Tracing and Recontact
• Skip Trace Validation
o If the file already has new contact data (address, phone number, email), Cedars proceeds with contact attempts.
o If no new data is available, the account is sent to Cedars' dedicated Skip Tracing Team for deep research using advanced tools (LexisNexis, TLOxp, Experian).

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17 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal • Recontact Attempts
o If new numbers are found, Cedars initiates 2 call attempts per number (Monday, Wednesday, Friday).
o Concurrently, 2 SMS messages are sent (Tuesday and Thursday). o If a new email address is discovered, 10 email messages are sent—one per day over 10 business days.
o If a new mailing address is found, a final demand letter is mailed to that address. • If No Right-Party Contact (RPC) is achieved after these steps, the account is moved toward closure or advanced review.

2. Credit Reporting Review (if authorized)
• Consumer Debt:
o After 60 days from listed date, consumer accounts are evaluated for credit reporting eligibility.
o If eligible, it follows the same process; otherwise, the file is closed without being reported.

Note: Cedars does not report any accounts to the credit bureaus without explicit client authorization and alignment with city policy.

3. Legal Review (Client go-ahead needed first)
If the account is still unresolved and meets internal thresholds, it is forwarded to the Cedars Legal Department for pre-litigation analysis.
• Legal File Review Includes:
o Asset assessment
o Employment verification
o Statute of limitations check
o Cost/benefit analysis for potential suit
• If Qualified for Legal Action:
o The file proceeds through Cedars’ legal workflow in partnership with local creditors' rights attorneys (again, only with client approval).
o If litigation is not successful, or legal options are exhausted, the file is closed with full documentation.

Final Outcome: File Closure
If all collection, credit, and legal options are exhausted and the account remains unresolved:
• The file is formally closed, and the entire history (letters, calls, skip trace efforts, and dispute logs) is archived for City audit access.
• Closure reasons are documented (e.g., no contact, debtor deceased, legal exhaustion, uncollectible).

Credit Reporting
Eligible accounts placed by the City of Redlands will be reported to all three major credit reporting agencies – Equifax, Experian, and TransUnion. Cedars will field all consumer phone calls related to reported accounts and process any disputes received through the e-OSCAR system. Accounts will remain listed for seven (7) years from the date of delinquency, or until the City recalls the account, whichever comes first. In addition, Cedars will continue to monitor all accounts through our Triggers Program, which alerts us to new consumer credit activity that may indicate ability to pay.

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18 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal

Cedars recommends that the City authorize us to report delinquent accounts 60 to 90 days after placement. This best practice is followed for two important reasons:

1. Error Prevention and Consumer Protection – Allowing 60–90 days before reporting provides time to identify and resolve any potential errors in account balance or other legitimate disputes. This process avoids unnecessary Fair Credit Reporting Act (FCRA) complaints and cumbersome bureau disputes that could otherwise create time-sensitive legal obligations for the City. By waiting, we minimize risk of inaccurate reporting and protect the City from reputational and legal exposure.

2. Encouraging Voluntary Resolution – Informing consumers that credit bureau reporting will occur after 60–90 days provides a powerful incentive for them to pay their balance in full or enter into an approved payment plan before the debt impacts their credit. Many delinquent account holders choose to resolve their obligation during this grace period, resulting in higher voluntary compliance and reduced dispute activity.

Cedars’ staff are thoroughly trained and certified in all federal and state credit reporting requirements to ensure complete compliance and protection for the City and its consumers. Our training emphasizes accuracy, fairness, and transparency across every stage of account handling and credit reporting. • Fair Credit Reporting Act (FCRA): Ensures timely, accurate, and verifiable reporting of account information, including proper dispute handling and documentation. Cedars verifies all data before any report is made.
• Equal Credit Opportunity Act (ECOA): Promotes fair and unbiased treatment for all consumers during communications and credit-related decisions.
• California Fair Business Practices Act (CFBPA): Serves as the City’s principal consumer protection law. Cedars trains all employees to uphold the Act’s requirements, ensuring ethical conduct, truthful representations, and full protection of California consumers’ rights. • Regulation Z (Truth in Lending): Although primarily directed at creditors, Cedars ensures all collectors can identify and escalate potential compliance or disclosure concerns that may arise during consumer interactions.

Through this ongoing training and certification, Cedars maintains the highest standards of compliance and integrity, helping the City protect its consumers while upholding local, state, and federal regulatory expectations.

Although Cedars is not a bank or creditor, our compliance team trains all agents to recognize and escalate potential violations immediately. Every account reported to the bureaus is documented, monitored, and managed in accordance with City policy and federal/state law.

By following this structured credit bureau reporting protocol, Cedars ensures that the City benefits from the deterrent effect of credit reporting while avoiding unnecessary disputes, reducing legal risk, and encouraging consumers to resolve their obligations voluntarily.

Trigger Program
If, at day 60, an account has no established contact or produced new contact information through our skip-tracing process, it will be eligible to be added into our Trigger Program. This occurs independently of our skip tracing process. If the account is in skip-tracing, it will continue through that treatment Redlands Regular Meeting of 02-17-26
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19 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal process as well. The automated Trigger process relies on our access to multiple databases, looking for current credit-based activities tied to the consumer’s identifying information.

Examples of triggering events include – mortgage inquiries, new bank cards, business loans, resolving past due balances, HELOCs, and similar events that initiate a credit inquiry on the consumer. These activities generate new demographic information and signify that a consumer has become credit-active and is more likely and capable of resolving their outstanding obligations.

Upon an occurrence of any of these triggering events, Cedars will be notified, and the account updated with any fresh contact information generated from the credit activity. This will reactivate and prioritize the account within our workflow to capitalize on the fresh information.

Consumer Payment Portal
Our Consumer Payment Portal – CollectCo - allows consumers to access and manage their accounts online. Through secure logins provided in communications, consumers can view account summaries, ask questions, and make payments or set up payment plans. Every task that requires live agent assistance can be fully completed through the portal. We are the only collections firm in the industry offering this capability.

Click on the link below to view our pay online tutorial for consumers. Our consumer payment portal is a handy resource for the debtor to take control and manage their balance. https://cedarsbiz.com/wp-content/uploads/2022/03/Cedar-Video-2-2-1-1.mp4

Key Features:
• 24/7 Online Access – Consumers can securely log in to manage their accounts anytime.
• Account Management – View account summaries,
payment history, and balances.
• Flexible Payment Options – Choose from one-time
payments, 3-month, 6-month, or customized payment
plans.
• Multiple Payment Methods Accepted – Credit/debit
cards, ACH, checks, money orders, PayPal, and mobile
payment apps.
• Secure & Compliant Communication – Consumers can
set communication preferences (phone, email, SMS) in
compliance with FDCPA & TCPA regulations.
• Dispute Resolution – Submit questions or disputes
directly through the portal.
• Instant Payment Receipts – Consumers can download
receipts for their records.

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20 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal

Payment Methods Accepted
• Credit Card – Visa, Mastercard, American Express, Discover • Debit Card
• ACH
• Check
• Money Orders
• Cash
• PayPal
• Mobile Payment Apps, for example Google Pay, Apple Pay

We are also able to use multiple electronic payment
processors.

Payment Plan Options

The following is an example. Our technology
allows consumers to set payment
parameters according to their financial
condition.

• Pay balance in one payment
• 3-Month Payment Plan
• 6-Month Payment Plan
• Customized Payment Plan

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21 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal

In this example, you can see a 6-month
payment plan of $21.05 with an expected
payoff date of March 22, 2022.

Similar to features of an online portal
offered by major banks, Cedars allows
consumers to create and set their payment
plan to pay off their financial obligations
online to make the process as easy and
stress-free as possible.

Custom Payment Plan
In this example, you have a custom
payment plan depicting a monthly
arrangement with six installments of
$21.04 per month.

Consumers will appreciate the level of
technology and flexibility we offer to
repay their debts in a manner that is
most convenient based on their financial
condition.

Of course, we do set guardrails to avoid
payment plans being over-extended
beyond City specifications. However, our
model is all about Putting People First.

That means we must consider and
understand the needs of the City and
consumers. That’s the only way to
maximize your success with collections.

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22 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal

➢ Credit / Debit Card Screen

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23 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal

➢ ACH / Electronic Check Screen

Highlights:
▪ Convenient Online Payments & Payment Plans.
▪ Account Information & Transparency.
▪ Self-Service Communication & Dispute
Resolution.
▪ User-Friendly Design and 24/7 Accessibility.
▪ Security and Regulatory Compliance Features
▪ ESIGN Act Compliant Encrypted Email: Cedars is
one of the few collection agencies with its own
ESIGN Act-compliant encrypted email platform.

This allows us to communicate securely with
consumers who opt in, sending them reminders,
payment plans, and updates in full compliance
with federal regulations.

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24 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Consumer Contact Information & Preferences
The consumer provides consent, in compliance with FDCPA and TCPA regulations, on their preferred method of communication: phone, email, or SMS text along with their preferred day and time.

Cedars maintains a proprietary email and SMS texting platform that comply with FDCA and TCPA regulations.

Consumer Payment Receipt – Customer can download a PDF copy of their receipt.

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25 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Answering Consumer Questions & Processing Disputes
A consumer may view their account information, inquire on a topic, or file a dispute through the consumer portal.

Consumers have several options to question or dispute
their balance:

• Speak with a customer service agent
• Submit questions via the portal
• Submit description and documentation explaining
a dispute

Dispute and Complaint Resolution
Cedars will ensure that disputes, complaints, and non-conformities are handled promptly, transparently, and in strict adherence to the City’s policies, California law, and all applicable federal regulations.

Protecting the City’s reputation while recovering taxpayer funds is central to our approach.

Dispute Resolution
Our compliance department, guided by the City’s policies, will review all disputes to determine the appropriate course of action. When a dispute is raised, the account will be placed on immediate hold to suspend all collection activity pending verification.

• If the City confirms the account should be closed or recalled, Cedars will comply and cease all collections.
• If the City confirms the account is valid, Cedars will issue a written response letter to the responsible party, including supporting documentation provided by the City. At that point, the account will return to the collection floor.

Cedars also documents and addresses oral disputes. If an immediate resolution cannot be reached, collection efforts are suspended until the City’s guidance is received. This ensures fairness, compliance, and accuracy in every disputed case.

Complaint Handling
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26 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Cedars understands that consumer complaints require careful professional handling to protect the City’s image. Guided by our AI monitoring technology, we ensure every call and written communication is handled courteously. Our practice of notifying consumers that all calls are recorded has consistently reduced complaints and increased trust.

Upon receipt of a complaint, Cedars will:

1. Document the communication in the account record and immediately suspend all collection activity.

2. Flag the account and transfer it to a unit manager for investigation.

3. Review account history, interview the collector(s) involved, and analyze recorded call(s).

4. Provide the City with a full report of findings, including recordings and recommendations.

Regardless of the outcome, Cedars will communicate promptly to ensure the City is satisfied with the resolution and the consumer has received a fair response.

Compliance and Continuous Improvement
All complaints, disputes, and corrective actions are logged in our web-based compliance management system. Our Chief Compliance Officer reviews all cases and outcomes, while our compliance team meets bi-weekly to conduct root-cause analyses. This ensures we do not simply “fix” an issue in isolation but improve the entire process to prevent recurrence.

We maintain and improve our compliance system by:
• Identifying non-conformities.
• Implementing long-term solutions based on root cause analyses. • Tracking the effectiveness of those solutions.

To support this, Cedars uses robust compliance tools, including Formsite, Teams IT Task Force, ConnectWise, and ClickUp, for documenting, tracking, and implementing training or policy changes.

Litigation Coordination
If litigation becomes necessary, Cedars will:
• Prepare the case file and supporting documentation.
• Coordinate with the City’s designated legal counsel.
• Provide affidavits, demand letters, and testimony as needed. • Follow the City’s direction on whether and how to proceed in each case.

Cedars will never initiate litigation independently; all legal action will be taken under the City’s authority and oversight.

Documentation and Reporting
All legal actions, disputes, and settlements are fully documented in our CollectCo® Client Portal and available to the City in real time. Reports include settlement history, dispute resolution, litigation status, and account outcomes.

This approach guarantees the City of Redlands both protection of its public reputation and a transparent, compliant process for managing disputes and complaints.

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27 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Agents Assigned to the City
For the City, Cedars will assign 2 full-time government-trained collection agents for every 400 accounts, supported by supervisory, compliance, and client success staff. We guarantee that your assigned collectors will have two or more years specializing in government collections. This cross-training ensures we can efficiently manage fluctuating work volumes. The agents are part of our 47-member Government Services Division, ensuring that Redlands’s accounts are managed by specialists experienced in municipal receivables. We operate under a centralized model out of Calabasas, California, with remote staff across all U.S. time zones, allowing for staggered consumer outreach and rapid city-staff support.

Oversight will be provided directly by Patrick Miller, Director of Government Development & Solutions, with operational leadership from Justin Franklin, Sr. Director of Operations.

Cedars’ government collections unit is built with scalability in mind. We currently employ 47 agents dedicated specifically to government and municipal accounts, all of whom are cross-trained across multiple receivable types including utilities, code enforcement, business licenses, EMS, miscellaneous municipal receivables, damage claims and other government receivables. This cross-training allows us to reallocate resources quickly and efficiently as client needs change. If the City experiences a sudden increase in placement volume or requires additional dedicated staff, Cedars can surge staffing up to two to three times baseline within 30 days by deploying additional cross-trained agents from our government unit and remote workforce. This flexible staffing model guarantees uninterrupted service, consistent compliance, and immediate scalability—ensuring the City always has the right level of experienced, trained professionals to meet its recovery objectives.

Our organizational structure is intentionally designed for municipal and public agency clients, with a fully self-performed model that includes:
• Collection Operations & Skiptracing Team
• Legal Review and Referral (in-house coordination, attorney network ready) • Compliance and Consumer Complaint Unit
• Client Services and Reporting Team (MIS and performance analytics) • Onboarding & Implementation Assistance – Client Success Team • Dedicated Project Manager (Patrick Miller)

Collector Training
Cedars will assign a dedicated team of collectors, managers, and support staff who specialize exclusively in the recovery of municipal receivables for government clients. This team brings a unique skill set that includes expert knowledge of federal, state, and local laws governing collections, including the FDCPA, FCRA, TCPA, HIPAA, Regulation F, and the California Fair Business Practices Act (GFBPA). Each collector is trained through our Cedar University program, which combines classroom instruction, mock call simulations, and monitored live calls to ensure every agent meets the highest standards of compliance and professionalism. Collectors must pass all compliance assessments with a minimum score of 90% before working live accounts and complete mandatory annual re-certification.

In addition to regulatory knowledge, Cedars’ government collectors are highly skilled in payment plan administration, dispute resolution, settlement documentation, and credit bureau reporting. This experience allows them to work effectively with consumers and businesses, negotiate sustainable Redlands Regular Meeting of 02-17-26
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28 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal resolutions, and ensure every account is handled thoroughly in compliance with City policy and all applicable laws. Our team’s training emphasizes respectful, solution-oriented engagement that protects the City’s public image while maximizing recoveries.

To ensure scalability, Cedars maintains an additional pool of cross-trained government collectors who can be immediately deployed to support the City in the event of placement surges or increased account volumes. This flexibility ensures the City’s accounts are never delayed due to staffing constraints and that the City receives consistent, high-quality service regardless of volume.

Cedar University’s training
for new collection agents
consists of a two-week
classroom curriculum
(virtual or in-person)
followed by hands-on
training sessions. The
curriculum covers
mastering regulatory
requirements (FDCPA,
FCRA, TCPA, HIPAA, and
Regulation F) and applying
City-specific policies and
procedures.

Our hands-on training includes practice mock calls, which collectors must pass before speaking with actual consumers. Once live, a supervisor monitors calls to verify accuracy, ensure compliance, and provide real-time coaching.

To track progress, Cedars generates monthly KPI reports to senior management, measuring assessment scores, courses completed, re-assessment rates, and quality assurance outcomes by individual agent and department. Using this data, remedial training courses are assigned immediately to address any issues, ensuring performance improvement and continuous compliance.

At the heart of our approach is our philosophy of “Putting People First.” Cedars trains its agents to provide courteous, compliant, and productive interactions that create a positive consumer experience.

We recognize that effective collections are an extension of excellent customer service, and we strive to represent the City with professionalism and respect.

To ensure these standards are consistently met, Cedars employs field-expert training personnel, with a dedicated trainer in each of our branch offices under the oversight of a corporate training director.

Cedar University also produces monthly reports evaluating trainers, curricula, and compliance outcomes to continuously improve training delivery and program effectiveness.

And to make certain that we effectively implement these policies and procedures, we employ training personnel who are field experts, comprised of a dedicated trainer in each of our branch offices, overseen by a training director. Finally, Cedar University produces monthly reports that evaluate our trainers and training materials based on these rigorous standards.

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29 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal

In addition, agents must understand the following:

1) payment-plan restrictions
2) call recording requirements
3) account holder verification
4) dispute handling
5) collection negotiation
6) professionalism
7) active listening
8) keys to a successful call
9) basic collection system training

Upon completion, Cedar University will administer
various tests that the student must pass with a minimum score of 90% on core compliance subjects.

Every Cedars’ employee must certify annually for all courses in our Cedar University Training. There are a total of 31 specific courses that fall into the following categories:

Regulatory – FDCPA & State Specific statutes, FCRA, TCPA, and Regulation F

Data & Identity Theft Protections – Applications, agent activities, systems & facility access controls, remote access, paper & digital sanitation, malicious software, and proper & improper disclosures of PHI.

Client Specific Training – Many of our government clients, such as CalTrans, require unique and specific training for our collectors and support staff to perform at their optimal levels.

Cedar University Intranet
Our Cedar University Intranet can be an effective tool for employee training by providing a centralized platform for sharing information, resources, and training materials. Here are some ways it assists in employee training:

Centralized Training Resources
Document Repository: Our employees access manuals, guides, video tutorials, and other training materials in one place. This eliminates the need to distribute physical copies or rely on external links. We also provide self-paced Learning via training modules, e-learning courses, and recorded webinars are hosted on our intranet.

Structured Learning Paths
We use Learning Management System (LMS) Integration: Our intranet has an integrate platforms, making it easier to organize and manage courses. Employees can track their progress, complete assessments, and earn certifications.

Skill Development Plans
Our managers create structured learning paths based on job roles, helping employees understand which courses they need to complete for career development and to pass the required annual compliance ✓ We believe in a training program that has a
good mix of classroom training, & self-led
training
✓ Training covers all relevant collection laws
and requirements
✓ Further training covers negotiation and
effective communication training
✓ Our goal for every new hire is to give the
agent all the tools and knowledge
necessary to be a successful and compliant
collection representative
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30 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal training.

Interactive Training
Quizzes and Assessments: Cedar University includes built-in quizzes and assessments to help employees test their knowledge and get instant feedback.

Live Training and Webinars
Live Streaming and Recorded Sessions: Cedar University hosts live and recorded training sessions, webinars, or workshops that our employees join on site or remotely through our secured private network. These sessions are recorded and archived for future reference.

Tracking and Analytics
Progress Monitoring: Managers can monitor employee progress through training modules, see completion rates, test scores, and identify areas where additional support or training may be needed.

Customer Service & Client Engagement
Cedars understands that the City requires more than just a collection agency — you require a partner who is responsive, transparent, and aligned with your goals. If awarded the contract, Cedars will provide high-touch, proactive client support designed to protect the City’s reputation, maximize recoveries, and ensure complete visibility throughout the program.

Dedicated Client Success Team
The City will be assigned a dedicated Client Success Manager (CSM), who will serve as your single point of contact for all operational matters. The CSM will coordinate with Cedars’ cross-functional support team, which includes:
• Compliance and Quality Assurance specialists
• IT and systems support staff
• Accounting and remittance personnel
• Director-level oversight for strategic alignment

This structure ensures that the City receives immediate escalation paths, accountability, and consistent support from day one.

Ongoing Support & Responsiveness
Cedars guarantees that all City inquiries will be acknowledged and addressed promptly — typically within one business day or less. Our support model includes:
• Direct phone and email access to your CSM
• Scheduled check-ins via Teams or Zoom
• A secure ticketing system for IT and data requests

Backup coverage is always available to ensure the City has uninterrupted support regardless of staff availability or time zone.

Structured Collaboration and Performance Reviews
To ensure ongoing alignment, Cedars will provide the City with structured touchpoints throughout the contract:

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31 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal • Monthly Performance Reviews – Detailed analysis of recovery results, reporting, call audits, and open issues.
• Quarterly Business Reviews (QBRs) – Senior management-led sessions to review KPIs, identify service enhancements, and align on future initiatives.
• Annual Service Audits – Contract compliance verification, security assessments, and long-term roadmap planning.

Continuous Improvement through Feedback
Cedars actively seeks and integrates client feedback. The City will benefit from:
• Quarterly client satisfaction surveys
• Post-onboarding debriefs to identify early opportunities for improvement • Benchmarking of results against industry peers and prior vendors All feedback is reviewed at the executive level and incorporated into Cedars’ ongoing training, compliance, and technology enhancements.

Client-Centric Enhancements
Cedars continually evolves our services based on client needs. Recent enhancements delivered for government clients include:
• Custom dashboards for real-time recovery and reporting • Automated alerts for returned checks or failed payments • AI-assisted call scripting tailored to agency policies • On-demand staff training for client personnel on portal use, compliance, and account workflows

Client Portal – Account Management
Client Account Management Includes:
• Daily and weekly correspondence as needed with City personnel. • Customized performance delivered monthly, quarterly, and annually. • Real-time access to account status, collector notes, and payment activity via our CollectCo™ Client Portal.
• Ongoing performance reviews, recovery forecasting, and issue resolution.

Problem resolution is escalated directly to the CSM or our Chief Compliance Officer, ensuring any issues are resolved within 24–48 hours.

Secure Web Portal Access for the City
Cedars provides 24/7 access to account-level data through our proprietary CollectCo™ Client Web Portal, which includes:
• A full listing of assigned accounts with status filters • Individual account updates including:
o Current balance
o Collection activity for the past month
o Total amount recovered to date
o Aging since referral
• Secure uploading of batch files and individual accounts • Two-way messaging with Cedars’ team
• Real-time performance dashboards and customizable reports • Secure download of invoices, call recordings, and remittance statements Redlands Regular Meeting of 02-17-26
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32 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal • Multi-factor authentication (MFA) and full audit logs of user activity for compliance

CollectCo™ Client Portal: Real-time placement dashboard, audit trail access, automated reports, and secure file exchange. The client portal is thorough and keeps the client informed 24/7. → Please click here to view client portal features:
https://youtu.be/QYn0Bt2apo4

Client Portal Features:

Call Monitoring - The ability to listen to recorded collection calls.

All calls both inbound and outbound to our call center are recorded and stored for 5 years. Using our AI Driven Call Auditing platform, each recorded call and its entire conversation is transcribed into text. We will provide you with the transcripts of any calls you wish. (100% Transparency)

Account Histories - The ability to look up any single account that you have placed with Cedars. Whereas most collection agency access sites for clients only provide summary information and disposition codes; with Cedars you have access to all the history of notes that have been added to an account by a collector of any other support staff in our office. (100% Transparency)

Access to Reports & Files– The dashboard provides a snapshot of your key performance metrics. You will have full access to standard/customized reports, files, and invoices.

Client Dashboard Overview
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33 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Cedars’ web-based Client Dashboard offers real-time visibility and intuitive control over all account placements, recoveries, and communication activities. The portal is designed for operational transparency, data accessibility, and user efficiency.

Key Features Displayed:
• Claims Management Overview
o Active Claims and Closed Claims totals, including dollar amounts. o Pre-Collection and Suspended Claims categories for early-stage and temporarily paused accounts.
o Amount Recovered panel detailing financial results broken down by:
▪ Paid in Full
▪ Partially Paid
▪ Settled Claims
o Success Rate visualized by closed claims.
• Efforts Summary
o Clear breakdown of outreach by channel: Email, Call, and SMS. o Tracks:
▪ Total number of activities
▪ Engagement percentage
▪ Contact attempts
o Designed to demonstrate transparency and accountability in debtor outreach. • Quick Navigation Tools
o Sidebar with links to:
▪ Dashboard, Reports, Company Profile
▪ Quick Actions including “Add Docs,” “Report Payment,” and “File Closure” ▪ User management and Remittance tracking
• Bottom Action Tiles
o One-click access to critical insights:
▪ Reports
▪ Credit Reporting
▪ Success Rate Analysis
▪ Comparison Reports for performance benchmarking

Additional Elements:
• Search and Filter Functions: Quickly locate specific accounts or activities. • User Personalization: Includes prompts for profile completion and system notifications. • Role-Based Access: Ensures secure, permission-based control over data visibility and actions.

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34 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal This dashboard provides Cedars’ clients with immediate access to the data and tools needed to monitor collections activities, evaluate performance, and ensure compliance, all within a secure and user-friendly environment.

Additionally, the efforts summary is on the dashboard. However, we do provide individual consumer summary reports to stipulate more detail upon request.

Reports – where you can track all transactions/information

Reporting Offered by Cedars
• Monthly Status Reports – Account-level detail for each placement, including current debt value, payments received, charges waived, interest charged, balance due, date of last payment, and a recap of collection efforts.
• Annual Fiscal Year Reports (through June 30) – Comprehensive summaries reflecting period-to- date and year-to-date totals for receipts, net accounts receivable, total accounts receivable, and collection percentages.
• Aging Reports – Both summary and detailed aging reports, providing a clear picture of account progression over time.
• Custom Reports – Settlement, cancellation, closed-account reports, and other ad hoc reports available at the County’s request.

In addition, Cedars’ CollectCo® Client Portal will give the County’s Finance staff secure, real-time access to:
• Individual account detail, including collector notes and payment history. • Performance dashboards and customizable reports, exportable in multiple formats. • On-demand access to invoices, call recordings, and remittance statements.

Our Reports Module supports daily, monthly, quarterly, and annual reporting needs, ensuring compliance with the County’s requirements and providing full transparency throughout the contract.

Cedars’ reporting practices are a cornerstone of our commitment to accountability, compliance, and client empowerment.

Additional Reporting Offered by Cedars:
• Recovery Analysis Report – Term-based and cumulative, showing total assignments, cancellations, collections, contingency fees, and overall recovery percentage • Promise-to-Pay Report – Tracks arrangements made, broken promises, and follow-up status Redlands Regular Meeting of 02-17-26
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35 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal • Direct Payment Reconciliation Report – Captures payments made directly to the County for accurate remittance and invoicing
• Dispute Resolution Tracking Log – Itemizes all consumer disputes and resolutions within the month
• Performance Dashboard – Delivered via the CollectCo portal, showing real-time KPIs, aging, and performance trends
• Custom Ad Hoc Reports – Tailored to client’s needs.

Below is a list of reports that are available in the client portal – CollectCo 24/7:

Status Reports:
• All Status Reports: Displays a comprehensive list of all status reports, regardless of status. • Active Status Report: Shows accounts that are currently open or in progress. • Closed Status Report: Lists all accounts that have been closed and for what reasons.

Transaction Reports:
• Monthly Report: Summarizes transactions conducted within a specific month. • Yearly Report: Provides an overview of all transactions for the year. • Quarterly Report: Highlights transaction activity over a three-month period (quarter).

Inventory
• All Claims: Displays the full list of claims across all statuses. • Active Claims: Shows claims that are currently being processed. • Closed Claims: Lists claims that have been completed and finalized. • Hold Claims: Displays claims that are temporarily paused or on hold. • Settle in Full: Shows claims that have been fully resolved and paid. • Draft: Contains claims that are saved as drafts and not yet submitted.

All other reports Cedars will cater as a custom request. We are flexible and dependable with report requests.

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36 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Reports Tab in Client Portal
This image above displays our Reports dashboard within Cedars’ secure collections platform. The page, titled Reports – Track everything from here, provides the County with access to multiple reporting views including Status Reports, Weekly Transaction Reports, Acknowledgment Reports, and Recovery Reports.

Users can filter accounts by status (all, active, or closed) and view detailed claim information such as debtor name, account ID, entrusted amount, payments received, fees, and reasons for cancellation.

Reports can be easily exported in CSV, XLS, or PDF formats. The left-hand navigation menu offers quick access to dashboards, inventory, reports, remittance functions, and client service tools such as adding documents, reporting payments, or closing files. This centralized system provides the County with real- time transparency, customizable reporting, and complete visibility into account activity and recovery outcomes.

Export, Filtering & Customization Tools
• Export any report to CSV, XLS, or PDF formats instantly • Use built-in filters and search bars to locate specific accounts or batches by ID, date, or status • Role-based permissions ensure users only access reports relevant to their authority level

Custom & Ad-Hoc Reporting
Cedars provides custom reports on demand based on client specifications. Whether the County requires:
• A breakdown of account types by payer class
• Reports aligned with grant tracking or CMS audits
• Summary-level executive reports or dispute tracking logs

Cedars will deliver tailored reports promptly with clear formatting, accurate calculations, and audit- ready presentation.

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37 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal

🔹 Client Benefit: No waiting, no templates to customize—just ask, and Cedars delivers the insights you need.

Cedars’ Reports Tab is more than a static dashboard—it’s a dynamic, customizable toolkit that gives the County full control over data-driven decision-making. With real-time access, flexible exports, and dependable support for ad-hoc requests, Cedars ensures that you’re always equipped with the information you need to manage your receivables confidently and effectively.

The above showcases the Transaction Report – Quarterly View within Cedars’ CollectCo™ client portal.

The report displays a detailed ledger of financial activity for a specific client account over a selected quarter. Each entry logs key information including the consumer’s name, client account number, original account owner, transaction type (e.g., check payment, credit card payment, or commission adjustment), and both the payment date and posted date. Clients can toggle between monthly, quarterly, and yearly views and use the built-in filter and search tools to quickly locate transactions. This level of detail ensures that the County can audit collections activity with ease, track remittance timelines, and maintain financial oversight in alignment with internal and external reporting requirements.

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38 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Recovery Report Sample

This image, above, displays the Recovery Report section of Cedars’ CollectCo™ client portal, highlighting monthly collection performance for a client. The report provides a clear breakdown by data month, showing the amount transmitted, amount collected, collection percentage, and the resulting commission amount earned by Cedars. Users can toggle between monthly, quarterly, and yearly views and export the report in CSV, XLS, or PDF formats. This module enables the County to monitor real-time recovery performance, assess the effectiveness of collections efforts, and reconcile commissions with complete transparency and accuracy.

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39 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Closure Reports
The image below displays the Closure Report section of Cedars’ CollectCo™ client portal, which provides clients with a clear, audit-ready record of all accounts that have been finalized. The report includes essential fields such as debtor name, debtor invoice number, Cedar account number, and the principal amount closed. It also specifies the reason for closure (e.g., “Paid in full” or “Settled in full”) and the closed date. Clients can toggle between monthly, quarterly, and yearly views and export data in CSV, XLS, or PDF formats for easy reporting and reconciliation. This tool enables the County to track closure activity with precision, monitor the effectiveness of collection efforts, and maintain documentation for compliance or public accountability. The inclusion of searchable filters ensures quick access to specific cases, further enhancing operational efficiency.

Please see our samples of standard reports on the next page…

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40 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Standard System Liquidation Report – overall collection rate. This report is customizable

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41 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Acknowledgement Report – acknowledges accounts received and processed

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42 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Customized Reporting
Utilizing our Business Objects software, we will collaborate with your staff to develop customized reports using our state-of-the-art data mining techniques.

Sample Customized Batch Analysis

Collections by Penetration Type

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43 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Gross Rec. % by Penetration Type

Omnichannel Analytics Reporting
In addition to acknowledgments, activity statements, and cancel reports, the County may receive monthly progress, batch, and analysis reports. For example, if you requested an account report based on specific time periods, balances, and credit scores without payment histories, we would compile a list and export them to our SFTP review.  Or with our CollectCo. client portal, you may access online reports at your convenience.

Along with our standard reporting package, Cedars has a data analytics team reporting to Justin Franklin, our Sr. Director of Operations. Justin leads our development of data analytics, AI technology, and our omnichannel platform. His staff will implement strategies, account treatments, and reporting.

They can customize and automate reports based on an array of data fields.

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44 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Sample Monthly Status Report

The Monthly Status Report categorizes by consumer name, file number, original creditor, account number, listed date, days past due, active/closed (mode), closed date (if closed), still owing, and overall status (dispute/priority/ongoing etc.). NOTE: this is just a sample. Our reports are customizable.

Cedars is very flexible and can comply with any requests that the County may have for what the monthly report contains. We can input a variety of factors in a monthly report to display account number, consumer name, the amount received, the balance due and date of last payment, and the actions taken on the account. NOTE: All reports can be downloaded and provided in excel sheet format.

Here is another monthly sample report – this one has been altered (included liquidation column) per the client’s request.

Sample Quarterly Recovery Rate Report
This is a sample recovery report provided to current clients with listed quarters, amount listed, average balance, average age, total dollars recovered and the recovery rate. This can be altered according to the client’s needs. There is an option to acquire a quarterly report in excel format from the Client Portal.

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45 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal D. Firm Information/Organization.

Company History
Cedars is a privately held California-based limited liability company and a certified Small Business Enterprise (SB/Micro), headquartered in Calabasas. Cedars is a wholly owned subsidiary of Cedar Financial, a global leader in accounts receivable management. The company operates under a centralized executive leadership structure supported by specialized department heads in Government Services, Client Success, Compliance, MIS, Accounting, and Collections Operations.

Our organizational structure is led by CEO Amir Erez, with day-to-day public sector operations overseen by Patrick Miller, Director of Government Development & Solutions. Mr. Miller serves as the primary liaison for all municipal clients and brings more than 30 years of government collections experience to the role.

Over the past 36 months, Cedars has maintained a stable leadership structure with no ownership or control changes. No major leadership or structural changes are anticipated within the next 12 months.

Cedars has over 34 years of experience delivering compliant, ethical, and high-performance debt recovery services to public entities. We have several current government clients for which we are providing collection services for every debt type listed in this RFP. We currently serve 63 government clients across the United States and maintain active placements exceeding $242 million, covering utilities, EMS, citations, and miscellaneous accounts receivable portfolios. Our experience aligns directly with the scope and scale of services sought by the City of Redlands.

Organizational Chart

Agency Overview
• Legal Name & Business Structure: Cedars Business Services, LLC – a Limited Liability Company (LLC)
• Parent Company: Cedar Holdings International Inc. (dba Cedar Financial) • Years in Business: Over 30 years – Established in 1991 • Years Providing Debt Collection Services: 34 years specializing in public-sector collections

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46 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Areas of Expertise
Cedars is structured under a centralized management framework with specialized divisions designed to meet the operational, compliance, and reporting needs of local governments like the City of Redlands.

• Government & Utilities Collections Division – Dedicated to recovering delinquent accounts for water, sewer, sanitation, EMS, and other municipal services, with deep experience in utility billing environments similar to the City.
• Client Success & Account Management – Oversees onboarding, ongoing communication, and performance reporting, ensuring transparency and responsiveness throughout the partnership. • Compliance & Quality Assurance – Maintains strict adherence to FDCPA, FCRA, GLBA, HIPAA, Reg F, and all applicable federal and California state regulations. • Operations & Technology – Manages omnichannel outreach systems, secure data integration, and analytics to optimize collection outcomes and maintain accurate records. • Accounting & Remittance Services – Handles payment processing, reconciliation, and financial reporting in accordance with municipal finance standards. • All services are self-performed—Cedars does not subcontract any portion of its collection activities. This ensures the City of Redlands has a single, accountable partner for all operational, compliance, and financial matters, with full control over service quality and data integrity.

Type of Accounts We Collect
Cedars specializes in recovering a wide range of receivables that directly align with the needs of the City:
• Government Receivables – Municipal fines, fees, and miscellaneous public-sector debts. • Utility Accounts – Water, sewer, sanitation, and gas services, which are core to Redlands’s operations.
• Healthcare (EMS) Accounts – Emergency medical services and ambulance billing. • Retail Accounts – Consumer-facing receivables, including utility billing and service charges. • Commercial Accounts – Business-related debts, including licensing and service fees. • Banking and Finance Accounts – Specialized recovery for financial institutions and municipal finance departments.
• Education Accounts – Tuition, fees, and student-related receivables for public institutions. • Property Management Accounts – Damage claims, code enforcement, and rental-related municipal receivables.

Cedars’ extensive experience with utility billing environments and public-sector collections ensures we are well-equipped to support Redlands’s goals of minimizing delinquent accounts while maintaining transparency and community trust.

Years in Business
Cedars brings over 34 years of continuous, proven experience delivering third-party debt collection services. Since 1991, we have specialized in government, education, and commercial receivables recovery across all 50 states and internationally, making us uniquely equipped to handle the scope of services requested by the City of Redlands.

Cedars was established to meet the growing demand for professional, compliant, and technology-driven public-sector collection services in the United States. Over the last three decades, the company has evolved from a regional firm into a national service provider supporting municipal utilities, water Redlands Regular Meeting of 02-17-26
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47 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal districts, counties, and state agencies in recovering delinquent receivables while upholding the highest standards of transparency, consumer protection, and data security.

Cedars’ long-standing corporate identity and leadership continuity have provided stability, regulatory consistency, and deep institutional knowledge of the government and utility sectors. Our President and CEO, Amir Erez, founded Cedar Financial in 1991 and continues to lead both organizations, ensuring alignment of global best practices with the specialized compliance requirements of U.S. municipal clients.

We hold collection licenses in all U.S. states that require them. Cedars’ growth has been driven by innovation in technology, strict adherence to state and federal regulations, and commitment to client satisfaction and community trust. Guided by our “People First” philosophy, Cedars approaches every interaction with empathy, professionalism, and transparency—treating consumers with respect while helping our government partners recover revenue ethically and efficiently.

Total Number of Staff
• 211 employees, including:
o 44 support staff
o 120+ professional collection agents (with half working remotely across U.S. time zones) o 47 agents specializing in government collections
o One-third of collectors are cross-trained in multiple industries to allow flexible staffing and surge support

Office Location & Information
We are headquartered at:
5230 Las Virgenes Road, Suite 210, Calabasas, CA 91302
We have additional remote collection agents across multiple U.S. time zones.

Hours of Operation & Availability
Cedars operates in all United States’ time zones.

Our main office hours are Monday – Friday: 7 AM – 6 PM Pacific Time (PST)

Additionally, we have national coverage: We employ collection agents across multiple time zones, including Eastern Standard Time (EST) for extended service hours.

Insurance Requirements
Cedars maintains all insurance required by the City of Redlands, including:
• Comprehensive Commercial General Liability: $1,000,000 per occurrence / $2,000,000 aggregate.
• Commercial Automobile Liability: $1,000,000 combined single limit. • Workers’ Compensation and Employer’s Liability: Statutory compliance. • Professional Liability Insurance: $1,000,000 per claim / $2,000,000 aggregate. • Cyber Liability Insurance: $2,000,000 per occurrence and $2,000,000 aggregate, covering breach response, regulatory fines, credit monitoring, and business continuity protections.

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48 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Memberships & Industry Affiliations
Cedars is an active member of several leading professional organizations within the receivables management and financial services industry. These memberships reflect our commitment to ethical practices, regulatory compliance, and continuous improvement—values that align directly with the expectations of the City and its consumers.

• ACA International (The Association of Credit and Collection Professionals) Cedars has been a long-standing member of ACA International, which sets the professional and ethical standards for the U.S. collections industry. Through ACA, our staff receive ongoing education, certification, and access to regulatory updates that ensure our operations remain fully compliant with the FDCPA, Reg F, and state-level regulations. • Receivables Management Association International (RMAI) As an active member of RMAI, Cedars upholds the Receivables Management Certification Program (RMCP) standards, which cover data security, consumer protection, and regulatory compliance. This membership demonstrates Cedars’ commitment to transparency, integrity, and responsible account management when handling government and municipal receivables. • RMAI Certified Business Designation
Cedars’ compliance and operations leadership are certified through the RMAI certification framework—ensuring all collection, data handling, and consumer interaction practices adhere to the highest standards of professional conduct and data protection.

Commitment to Professionalism and Public Trust
Through these memberships and certifications, Cedars remains actively connected to the industry’s leading compliance, technology, and legal networks. This engagement allows us to anticipate regulatory changes, implement best practices quickly, and continuously improve the service experience for our government partners and the consumers they serve.

Our affiliations reflect more than compliance—they demonstrate Cedars’ dedication to accountability, transparency, and the ethical recovery of public funds on behalf of the City.

City Project Manager
Cedars designates Patrick Miller, Director of Government Development & Solutions, as the Account Manager and primary point of contact for the City. Patrick will oversee all day-to-day operations, manage implementation and service delivery, and serve as the City’s direct liaison for inquiries, performance reviews, and contract coordination. With over 30 years of experience in public-sector collections and client advocacy, Patrick brings the leadership, responsiveness, and subject matter expertise necessary to ensure a successful partnership. Cedars will also assign a dedicated Client Success Manager to provide daily support, monitor account performance, coordinate reporting, and ensure that all service areas operate smoothly and in full compliance with City expectations.

Experience with Similar Municipal & Utility Clients
Cedars has extensive experience providing third-party collection services for municipal and utility clients whose operations, service populations, and public accountability requirements closely mirror those of the City of Redlands. Our programs are designed to maximize recoveries, maintain full transparency, and protect public trust, while upholding the City’s commitment to fair, respectful customer service.

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49 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Cedars’ collection strategies combine advanced analytics, trained government specialists, and compliant multi-channel outreach to recover revenue efficiently without sacrificing consumer goodwill. We work hand-in-hand with city and county utilities to tailor our approach to their ordinances, billing cycles, and customer communication preferences.

Cedars’ government collections unit is built with scalability in mind. We currently employ 47 agents dedicated specifically to government and municipal accounts, all of whom are cross-trained across multiple receivable types including utilities, code enforcement, business licenses, EMS, ambulance, miscellaneous municipal receivables, damage claims and other government receivables. This cross- training allows us to reallocate resources quickly and efficiently as clients need change. If the City experiences a sudden increase in placement volume or requires additional dedicated staff, Cedars can surge staffing up to two to three times baseline within 30 days by deploying additional cross-trained agents from our government unit and remote workforce. This flexible staffing model guarantees uninterrupted service, consistent compliance, and immediate scalability—ensuring the City always has the right level of experienced, trained professionals to meet its recovery objectives.

Our collection systems are fully contained in our secure systems environment, and remote employees access through a sure VPN that has a three-step login process that includes two-step authentication. Our supervisors and managers maintain constant real-time oversite of all employees through a dashboard at their desk. The dashboard gives them real-time information on all activities, live calls, dialing, call-work time, when they are logged in or off, etc. All calls are monitored 100% of the time with AI technology.

Our AI platform notifies a supervisor if any call is escalating and can even tell if it is the collector or the consumer that is escalating on the call. Supervisors have three modes of listening or participating in live calls. Listen Only Mode, Whisper Mode (this mode allows the supervisor to coach the collector during the call without the consumer hearing the supervisor), and Interrupt Mode (allows the supervisor to join the call and make it a three-way conversation).

Comparable Government & Utility Programs
California Department of Transportation (CalTrans)
Cedars administers Caltrans’ statewide damage-recovery program, a high-volume public portfolio involving claim validation, coordination with multiple districts, and rigorous reporting. This engagement demonstrates Cedars’ ability to manage complex government receivables under strict compliance and auditing standards while achieving strong recovery results.

Contra Costa County – Animal Services Division
Cedars provides collection services for animal control citations, code enforcement penalties, and civil administrative fees. Our approach combines omnichannel outreach, skip tracing, and real-time reporting through CollectCo™, ensuring transparency and compliance while maintaining positive community relations.

California Department of Resources Recycling and Recovery (CalRecycle) Cedars supports CalRecycle with recovery of unpaid environmental and recycling fees from municipalities and commercial operators. Leveraging predictive analytics and performance monitoring, Cedars improved recoveries and reduced account aging, demonstrating our capacity to manage regulatory receivables efficiently and responsibly.

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50 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal California Board of Barbering and Cosmetology
Cedars provides third-party collections for regulatory receivables, ensuring compliance with state laws and consumer protection standards. Our People-First approach and advanced technology tools enable respectful engagement and measurable results for this statewide program.

California Public Employee Retirement System (CalPERS)
Cedars manages retirement-related receivables for CalPERS, providing third-party collections, skip tracing, and litigation support. This engagement reflects Cedars’ ability to handle sensitive accounts requiring advanced compliance oversight and legal coordination.

Client Satisfaction & Check-ins
Cedars defines client satisfaction as the consistent delivery of measurable results, transparent communication, and responsive support that exceeds our clients’ expectations. We maintain a dedicated Client Success team that provides proactive account management, customized reporting, and routine performance reviews. Satisfaction is measured through client surveys, recovery performance benchmarks, complaint resolution metrics, and retention rates, many of our public sector clients have renewed contracts with Cedars for over a decade. Our approach emphasizes partnership, not just performance, with a focus on continuous improvement, adaptability to client needs, and maintaining the highest levels of trust, compliance, and responsiveness

Through regular performance reviews, customized reporting, and open feedback loops, we continually refine our service delivery to meet City expectations. Our client success team will discuss the state of the contract and steps to maximize productivity and service with City representatives. Cedars is proactive and believes that long-term success is built not just on recovery rates, but on ongoing partnership, transparency, and a relentless focus on improvement.

Cedars’ infrastructure ensures the City can manage and monitor accounts in real time, trust the integrity of funds and data, and meet compliance mandates with confidence. Our digital-first model is designed to maximize recovery while upholding the highest standards of accessibility, accuracy, and transparency.

Our expertise spans government, education, and commercial sectors, with a strong emphasis on compliance, data security, and ethical recovery practices. Cedars holds active collection licenses in California and maintains strict adherence to FDCPA, Reg F, and California-specific statutes. Our experience with other southeastern clients ensures familiarity with local expectations, billing environments, and community engagement standards.

Government Experience Overview
Cedars currently serves more than 63 government clients—including cities, counties, and state agencies—across utilities, and other government receivables.

Our recovery rates range from 4% to 49%, and our average government client recovery rate is 21%.

These ranges depend on certain specifications such as the age of accounts; the portfolio demographics; whether the accounts were previously listed with another agency (e.g., second placements); and the like.

In the past two years, our public-sector team has managed:

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51 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal • 382,500 accounts placed for collection
• $497 million in total receivables
• Average balance: $1,300 per account
• Average recovery: 21%
• Recovery range: 4%–49%, depending on portfolio type and client policies

Our $191 million in active government and utility placements demonstrates both scale and stability in the public sector. Key drivers of our success include:
• Data-driven collection strategies and intelligent account scoring • Advanced analytics and dashboards for performance monitoring • Omnichannel outreach (calls, letters, email, SMS, and online payment portals) • Dedicated government collections staff trained through Cedar University on FDCPA, FCRA, HIPAA, and Reg F
• Strict adherence to SOC 2 Type II and PCI-DSS Level 1 data-security frameworks

Representative Public-Sector Clients
• City of Riverside, CA
• City of Henderson, NV
• Dawson County, GA
• California Department of Transportation (Caltrans)
• Contra Costa County, CA
• San Bernardino County Fire District (12 fire districts) • Alachua County, FL
• San Benito County, CA
• California Department of Resources Recycling & Recovery (CalRecycle) • California Department of Corrections & Rehabilitation (CDCR) • California Department of Conservation – CalGEM
• California Department of Insurance (CDOI)
• California Department of Consumer Affairs (DCA)
• CalPERS (Public Employee Retirement System)

Proven Results for the City
Cedars’ success across comparable government and utility clients demonstrates our ability to:
• Recover substantial public revenue while maintaining public confidence • Operate with full transparency and real-time access to data • Align with local and state compliance requirements, including California statutes • Provide respectful, community-first communication to preserve positive resident relationships

Cedars is confident that the City can expect measurable improvements in revenue recovery, streamlined operations, and consistent, professional service aligned with the City’s standards of integrity and accountability.

Cedars Vs Industry Standards 2019 – 2024
Five-Year Collection Activity Trends and Industry Benchmark Comparison

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52 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Public & Private Utility Receivables / Cedar vs. Industry Standards Year Placements Collected Cedars Liquidation Rate Industry Standard 2019 $46,570,000 $4,657,000 10% 11%
2020 $35,300,000 $4,942,000 14% 7%
2021 $35,440,000 $5,316,000 15% 10%
2022 $26,810,000 $5,630,100 21% 7%
2023 $48,890,000 $5,377,900 11% 11%
2024 $59,440,000 $7,132,800 12% 11%

Our multi-year performance across public and private utilities consistently matches or exceeds national averages, with standout years (2020–2022) showing nearly double the industry liquidation rate due to early intervention and technology-driven outreach.

Government Receivables / Cedar vs. Industry Standards
Year Placements Collected Cedars Liquidation Rate Industry Standard 2019 $10,700,000 $2,782,000 26% 11%
2020 $16,580,000 $5,139,800 31% 11%
2021 $12,330,000 $2,896,800 23% 11%
2022 $14,580,000 $3,888,600 27% 10%
2023 $24,380,000 $6,108,800 25% 10%
2024 $24,650,000 $7,169,500 29% 9%

We have consistently outperformed industry norms in the government receivables sector, achieving liquidation rates between 23%–31%, nearly three times higher than the national public-sector average.

This performance reflects Cedars’ government specialization, staff training, and results-driven collection methodology.

Client Reviews & Performance Feedback
Cedars has built a long-standing reputation for ethical practices, transparent reporting, and high client satisfaction across local governments, utilities, healthcare systems, and educational institutions nationwide. Our success is reflected not only in measurable recovery results but also in the trust and loyalty of our clients.

• Consistently Rated 4.8/5.0 for Client Satisfaction
Based on post-implementation surveys and contract renewal reviews, 96% of Cedars’ government clients rate our performance as “Excellent” or “Above Expectations” in areas of responsiveness, communication, compliance, and collection results. • High Retention & Renewal Rate
Over 95% of our municipal and county clients renew their agreements with Cedars after the initial term—demonstrating strong confidence in our ability to deliver results while protecting public reputation.
• Public & Professional Recognition
Cedars holds active membership with the Receivables Management Association International Redlands Regular Meeting of 02-17-26
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53 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal (RMAI) and ACA International, upholding the highest ethical and operational standards in the industry.
• Complaint Resolution & Compliance Monitoring
Cedars has maintained an exceptionally low complaint ratio, well below 0.02% of accounts serviced annually, thanks to our real-time quality monitoring, AI call audits, and a dedicated Compliance Department that proactively addresses any issue within 24 hours.

Client Testimonials
“We have placed large and difficult-to-collect EMS accounts with Cedars. They serve us with excellence and transparency, and their performance has exceeded our expectations.” — Steve Macy, Vice President, Shoreline Entertainment

“If you are seeking a high-performance collection Cedars that listens and responds to client needs effectively, I recommend Cedars Business Services.”
— Tatyana Bychkov, Contract Manager, California Department of Transportation (CalTrans)

“Cedars has consistently delivered professional, respectful collection services that align with our public-facing mission. Their staff is responsive, and the results speak for themselves.” — Alma Franco, Customer Service & Collections Manager, City of Riverside (RPU)

“We highly recommend Cedar Financial for any government client needing effective collection services.”
— Daniele Doninelli, CEO, Smartprise

For consumers, our “Putting People First” philosophy guides every interaction—we treat each individual with dignity, empathy, and professionalism. Our agents are specially trained to navigate sensitive EMS- related financial discussions, resolve disputes respectfully, and offer flexible payment plans. This dual focus on transparency, responsiveness, and compassion results in higher recovery rates, reduced complaint volume, and sustained trust from both government partners and the communities they serve.

Consumer Testimonials
These testimonials are derived from online reviews,
internal feedback surveys, and third-party platforms like Google Reviews and BBB, where Cedars maintains a
high consumer satisfaction rating.

“I was really nervous when I got a collections notice,
but the representative was so understanding and
helped me set up a payment plan that worked for my
situation. I didn’t feel judged—just helped.”
— Anna L., Los Angeles, CA

“They explained everything clearly and even helped me verify that my insurance should’ve covered the bill. They gave me time to follow up with the hospital without pressuring me to pay right away.” — Jordan M., Riverside, CA

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54 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal “I’ve dealt with collectors before, but Cedars was different. They were patient, kind, and even offered to waive some fees when I showed I was in financial hardship. I really appreciated that.” — Maria G., Honolulu, HI

“They treated me like a person, not just a debt. That made a huge difference when I was recovering from a medical emergency.”
— Thomas E., Sacramento, CA

“I called to dispute a charge and expected the worst. Instead, the agent calmly walked me through everything and followed up the next day with documentation. It was professional and respectful.” — Nina D., Atlanta, GA

E. Staffing.

City’s Primary Contact Information
Cedars designates Patrick Miller, Director of Government Development & Solutions, as the Account Manager and primary point of contact for the City. Patrick will oversee all day-to-day operations, manage implementation and service delivery, and serve as the City’s direct liaison for inquiries, performance reviews, and contract coordination. With over 30 years of experience in public-sector collections and client advocacy, Patrick brings the leadership, responsiveness, and subject matter expertise necessary to ensure a successful partnership.

• Main Contact: Patrick Miller
• Title: Director of Government Development & Solutions • Email: [email protected]
• Phone: (757) 560-5801

Key Personnel Assigned to the City
Cedars will assign a highly experienced team to administer and support Redlands’s account. Each team member brings deep expertise in public-sector revenue recovery, including fire City receivables such as inspection fees, false alarm penalties, hazardous materials response charges, and property damage claims. Upon contract execution, Cedars will meet with City staff to establish shared goals, review the scope of services, and align on expectations for performance and communication. These meetings will ensure that all collection activities reflect the City’s policies and uphold its public reputation.

Additionally, Cedars will participate in annual or as-needed meetings with the City to evaluate service effectiveness, address any concerns, and collaborate on strategies to further reduce outstanding debt.

Each team member listed below has extensive experience in government collections.

Patrick Miller – Director of Government Development & Solutions • Role: Primary contract relationship manager, overseeing project alignment and client interactions. Ensures project execution and compliance. • Experience: Over 20 years in collections and operations management, specializing in government sector collections.
o Designed unique collections and delinquency reduction programs for Fortune 500 firms.

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55 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal o Senior management role with two national collection agencies to develop and execute strategic growth plans.
o Conceptualized and developed client liaison and customer retention teams that led to a 60% increase in client retention.
o Consulting and operations management for critical call center development clients, including the Los Angeles Times, JDR Recovery, American Express, First North American National Bank, UVA Medical Center, Sears, Cox Auto Trader, and the California Department of Revenue.
o Member of Health Care Financial Management Association (HFMA) & The Association of Credit and Collection (ACA).
• Accomplishments: Recipient of two HFMA Yerger Awards for Leadership Excellence and Innovation.
o Served 5 years on Board of the VA/DC Healthcare Financial Management Association. o Member of FTA and the Southeastern Association of Tax Administrators (SEATA). Five years’ service on the SEATA Industry Council.
o Membership and Advisory Board Seat for Democratic Municipal Officials organization (DMO).
o Patrick has recently been recognized by the Marquis Who’s Who Publication Board. His listing in the Who’s Who Publication will be publicized both online and in their printed directory this January of 2025.
• Education: Mt. San Antonio College – dual major: Business Management & Business Research. • Municipal Clients Served: Patrick implements and manages multiple government clients including California Department of Transportation (CalTrans), City of Riverside Public Utilities, Contra Costa County, San Bernardino County Fire District, City of Henderson (NV), Alachua County (FL).
• Availability/Commitment: On hand at all times to ensure seamless operations; he is committed to providing support whenever required. Available for virtual and on-site meetings as needed.

Stacey Leigh – Director of Client Success
• Role: Oversees client relationships, onboarding, and project implementation, ensuring high service quality and strategic alignment. She proactively addresses client needs, resolves challenges, and develops strategies to maximize revenue and enhance the overall client experience.
• Experience: 6.5 years in Collection Client Success. 15+ years in Business Administrative experience and leadership.
• Education: Bachelor’s degree in business administration, management and operations. • Municipal Clients Served: Responsible for implementation and support for multiple California Districts and county clients. Stacey checks in with all our government clients regularly and is consistently available for support.
• Availability/Commitment: Available for virtual and on-site meetings. Stacey is ready and available whenever the client requires assistance.

Operations & Compliance Team
Justin Franklin – Sr Director of Operations
• Role: Leads the development of customized collection workflows, omnichannel strategies, and data-driven performance tracking.
• Experience: 15+ years in debt collection strategy, including litigation processes and compliance oversight.

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56 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal • Accomplishments: ACA Management Certification
o Blueshift Academy – Email Deliverability Certification • Education: Bachelor’s degree in business administration. • Municipal Clients Served: City of Riverside (CA), Alachua County (FL), Caltrans (California Department of Transportation). Justin plays a huge role in all our Government contracts. He customizes the collection process to each client’s needs. • Availability/Commitment: Available on demand to meet project needs.

Syntheia Nagel – Chief Compliance Officer
• Role: Ensures compliance with federal, state, and local regulations, oversees staff training, and audits collection activities.
• Experience: 15+ years in compliance and regulatory oversight for debt collection. o 20+ years in Human Resource and Business Administration experience. • Accomplishments: Credit and Collections Compliance Officer Certification o Membership – ACA International and California Association of Collectors • Education: MBA, Augusta State University
o Bachelor of Science, Business Administration and Management – University of Phoenix • Municipal Clients Served: Works directly with oversight teams for CalTrans, City of Riverside, and Contra Costa County to ensure all compliance standards are met. She ensures compliance and works with all government client specifications to meet compliance requirements. • Availability/Commitment: Available on demand to meet project needs.

Frank Tirre – Collections Training Manager
• Role: Develops customized training programs for collectors, ensuring compliance with City debt collection policies and best practices.
• Experience: 16+ years of experience working in the Debt Collection industry. • Accomplishments: ACA International Membership
o Professional Collection Specialist Certification
o Collection Trainer Specialist Certification
• Municipal Clients Served: Developed specialized training for cities and counties like Riverside Public Utilities and San Bernardino County Fire District. • Availability/Commitment: Dedicates extensive time to training during implementation, transitioning to weekly coaching post-launch.

Accounting & Financial Oversight
Rachel Moaddab – Accounting Manager
• Role: Manages financial reporting, remittances, and compliance with revenue recovery requirements.
• Experience: 10+ years of experience in the Administrative/Accounting role within Collections. • Education: University of Phoenix – AA in Accounting and Finance. • Municipal Clients Served: Leads remittance and audit preparation for City, county and state entities like City of Riverside, Contra Costa County, and CalRecycle. • Availability/Commitment: 10 hours per week during implementation, transitioning to daily monitoring and month-end reconciliation.

With this highly experienced team, Cedars is fully prepared to support the City’s debt collection efforts with expert leadership, compliance adherence, and data-driven recovery strategies.

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57 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Overall Supervision
All City accounts will be worked by a dedicated team of professional collectors under Patrick Miller’s direct management. Justin Franklin will oversee day-to-day operations, ensuring compliance with all regulations and achievement of performance benchmarks. Supervisors will maintain real-time monitoring of all calls and account activity through Cedars’ AI-powered oversight tools. Compliance review is continuous, with 100% call monitoring and quarterly performance evaluations conducted by the Compliance and Client Success teams.

This management structure ensures that the City receives a directly accountable, highly supervised, and fully compliant collection program built upon decades of experience supporting California municipalities, cities, counties, and districts.

Please see the following page for Client References…
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58 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal F. References.

California Department of Transportation (CalTrans)
• Primary Contact: Tatyana Bychkov, Associate Accounting Analyst / Contract Manager • Email / Phone: [email protected] | (279) 234-2825 • Services Provided: Property damage receivables, skip tracing, dispute resolution, and litigation coordination.
• Dates of Service: April 2022 – Present
• Recovery Rate: 41.5% for 12,220 files with $63,330,000 in total placements.

Contra Costa County – Animal Services Division
• Primary Contact: Stacey Frost, Clerical Supervisor
• Email / Phone: [email protected] | (925) 608-8415 • Services Provided: Collection of animal control citations, code enforcement penalties, and civil administrative fees.
• Dates of Service: June 2022 – Present
• Recovery Rate: 9.7% for 2,658 files with $687,000 in total placements.

California Department of Resources Recycling and Recovery (CalRecycle) • Primary Contact: Dipti Patel, Accounts Receivable
• Email / Phone: [email protected]/
• Services Provided: Regulatory receivables collections, including oil recycling fees, hazardous waste assessments, and other environmental penalties. Services include skip tracing, dispute resolution, credit bureau reporting, and customized performance reporting. • Dates of Service: June 2022 – Present
• Recovery Rate: 11.95% for 1,320 files with $19,898,000 in total placements

California Board of Barbering and Cosmetology
• Primary Contact, Elizabeth Harrison Program Technician II, Enforcement • Email/Phone: [email protected] | (279) 226-4602 • Services Provided: Third-party collections for regulatory receivables • Dates of Service: October 2024 – Present
• Recovery Rate: 9.14% for 1,660 files with $1,890,000 in total placements.

California Public Employee Retirement System (CalPERS)
• Contact: Sharon Hobbs, Division Chief
• Email / Phone: [email protected] | (916) 795-1318 • Services Provided: Third-party collections for retirement-related receivables, plus skip tracing and litigation support
• Dates of Service: March 2025 – Present
• Recovery Rate: 5.35% for 489 files with $14,560,000 in total placements.

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59 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal G. FEE/COST PROPOSAL.

Cedars proposes a contingency-based fee of 19.5% on all amounts successfully collected on behalf of the City of Redlands. This performance-based structure ensures that the City incurs no upfront or out-of- pocket costs—our compensation is earned only when recoveries are made. No collection = no fee.

Competitive Advantage
Cedars delivers industry-leading compliance, advanced technology, and proven municipal expertise at a lower contingency rate of 19.5% compared to the City’s current 21%. This reduction translates into direct savings for the City without compromising quality or transparency. These savings align with the City’s evaluation criteria for best long-range economic value.

Additional Value-Added Services (Included at No Extra Cost)

1. Utility Billing System Integration (API-Ready)
Secure API or SFTP integration with the City’s billing system to streamline placements and updates.

2. Customer Hardship & Assistance Referral
Compassionate outreach with referrals to City assistance programs when applicable.

3. Community Reporting & Analytics
Quarterly dashboards summarizing recovery by ZIP code, account type, and aging trends.

4. Disaster Recovery & Business Continuity
Redundant data centers and tested continuity plans to ensure uninterrupted service.

5. Quarterly Educational Briefings for City Staff
Complimentary sessions on regulatory updates, billing best practices, and consumer behavior trends.

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60 RFP # 20251125ER – City of Redlands – Collection Agency Services – CBS Proposal Why Work With Cedars?

PLEDGE
Cedars is committed to helping the City of Redlands resolve accounts amicably, professionally, and transparently.

With over 34 years of public-sector experience, Cedars has helped more than 63 government entities recover revenue ethically and transparently. Our proven model supports the City’s goals: Efficient and effective recovery of outstanding debts; Minimization of delinquent accounts; Preservation of community trust; Full compliance with applicable collection laws.

MISSION STATEMENT
Since 1991, Cedars has delivered technology-enabled, fully self-performed collection programs tailored to municipal needs. Our proprietary CollectCo™ platform integrates seamlessly with existing systems—requiring no programming costs or infrastructure changes—and provides: Real-time dashboards and reporting; Secure file exchange; Automated outreach and compliance auditing. Cedars consistently outperform s competitors, achieving up to 31% recovery on government receivables and 20%+ on utility accounts, compared to industry averages of 9 – 11%.

COMMUNICATION
Our contingency-based fee structure (19.5%) means the City only pays for successful collections, with no setup fees and no charges for standard services like skip tracing or reporting. The City benefits from secure, 24/7 access to our Client Portal, which provides real-time visibility into account-level data, collector notes, call recordings, and performance dashboards. Meanwhile, our Consumer Portal empowers consumers to manage their accounts independently, with ADA-compliant design and multilingual support in over 175 languages, including ASL.

TRANSPARENCY
Our “Putting People First” philosophy, which guides every interaction with empathy, professionalism, and respect.

Our team is trained in de-escalation, cultural sensitivity, and financial hardship resolution —resulting in higher recovery rates, lower complaint ratios, and over 500 consumer reviews averaging 4.5 stars. We strive to build honest relationships by remaining transparent throughout the collections process and ensuring consumers are aware of their rights. This approach, supported by our online tools and educational resources, has led to stronger engagement, improved resolution outcomes, and a more positive payment experience for the individuals we serve.

COMPLIANCE
Cedars maintains industry-leading security and compliance standards, including SOC 2 Type II and PCI -DSS Level 1 certifications, AES-256 encryption, and daily vulnerability scans. Our collectors are trained and re -certified annually through Cedar University, ensuring full adherence to FDCPA, FERPA, HIPAA, TCPA, Reg F, and California-specific statutes. We are ready to serve the City with integrity, innovation, and measurable results.

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City Council Meeting F. 7.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Approve a Memorandum of Understanding with Artlands Creative, recommended by the Parks and Recreation Advisory Commission, authorizing enhancements within the parcel described as APN 0170-083-03-0000 and determination that approval of the Agreement is exempt from California Environmental Quality Act (CEQA) guidelines pursuant to Section 15061 (Facilities and Community Services Director Crocker)
MOTION(S):

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

I move that the City Council determine that the approval of the Memorandum of Understanding with Artlands Creative is exempt from California Environmental Quality Act guidelines pursuant to Section 15061; and

1. I move to approve a Memorandum of Understanding with Artlands Creative for the implementation of enhancements within a portion of the parcel described as APN 0170-083-03-0000.

2. RECOMMENDATION:

Commission Recommendation:

At the July 10, 2025, Parks and Recreation Advisory Commission Meeting, the Commission unanimously recommended that the City Council direct city staff to work with the Artlands Creative's REACH group to identify a viable site for a native plant garden in Redlands.

Staff Recommendation:

Staff recommends that the City Council approve the Memorandum of Understanding with Artlands Creative to install enhancements on City property on a portion of the parcel described as APN 0170-083-03-0000.

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DISCUSSION:

The Regional Eco Arts Community Home (REACH), a program of The Artlands Creative, has expressed interest in collaborating efforts with the City to develop a native plant garden within a local park. City staff worked with the Artlands Creative to identify a specific, viable location within Sylvan Park, which is identified as the area situated just north of the existing rose garden.

In collaboration with Artlands Creative, staff developed the attached Memorandum of Understanding (MOU) for the garden project. The MOU holds Artlands responsible for the landscaping and maintenance of the garden. Within this partnership, the City will provide a water source for the area to sustain the native plantings. In addition, the MOU allows either party to cancel within 30 days' notice. The following is a list of improvements that Artlands Creative has proposed for the enhancement of the area.

Planting Zone:
2,127 sq. ft. native/wildflower planting area using drought-tolerant, pollinator-supportive plants;

1. Designed for year-round seasonal blooms with clustered and mixed plantings; and

2. Manzanita, Toyon, Deergrass, Cleveland Sage, Ashyleaf Buckwheat, California Fuchsia, Yarrow, etc.

3. Irrigation:

A drip irrigation system will be installed to connect to the city water lines; and

1. Zoned for low/moderate water species.2.

Educational Signage:

Plant ID plaques with bloom time & pollinator connections; and signage explaining the garden and its significance.

1. Placement and Overview:

Perimeter (Border Planting): native shrubs, wildflowers, grasses, trees spaced by type for seasonal coverage and pollinator habitat.

1. Maintenance and terms:

Ongoing maintenance including weeding, clearing, and trimming when necessary.

1. The MOU is a three-year term with a 30-day notice requirement for cancellation by either party.

2. Approval of the MOU with Artlands Creative authorizing enhancements within a Redlands Regular Meeting of 02-17-26
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Approval of the MOU with Artlands Creative authorizing enhancements within a portion of the parcel within Sylvan Park described as APN 0170-083-03-0000 for native landscaping is exempt from California Environmental Quality Act (CEQA) guidelines pursuant to Section 15061.

ALTERNATIVES:

The City Council may deny the approval of the Memorandum of Understanding with Artlands Creative, and provide staff with alternate direction.

STRATEGIC PLAN:

Priority A: Quality of Life
SUBMITTED BY:

Tabitha Crocker, Facilities and Community Services Director RECOMMENDED BY:

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

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

Joe Bierma, Administrative Analyst
Fiscal Impact
Fiscal Year: FY 2024-26
Appropriation Required Y/N: No
Discussion:

Staff time for this project has already been accounted for in the currently adopted City budget. Costs associated with the irrigation of the garden will be absorbed within the existing Parks budget.

Attachments
MOU Artlands REACH
REACH Site Plan Exhibit
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MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF REDLANDS AND

ARTLANDS CREATIVE REGARDING COMMUNITY GREENSPACE ENHANCEMENT

COLLABORATION
This Memorandum of Understanding Regarding Community Greenspace Enhancement Collaboration ("MOU") is dated this 17th day of February, 2026 (“Effective Date”), and is entered into by and between Artlands Creative (“Artlands”), a California nonprofit corporation and 501(c)(3) tax-exempt organization, and the City of Redlands ("City"), a municipal corporation and general law city . Artlands and the C ity may be referred to herein individually as a "Party" and collectively together as the "Parties."

RECITALS
WHEREAS, City owns a parcel which makes up a portion of Sylvan Park, more accurately described as Assessor’s Parcel Number 0170-083-03-0000; and WHEREAS, Artlands has formed a working group named Redlands Eco Arts Community Home (REACH), for the purpose of education training programs relating to both the public and private sectors of the economy and the environment; and WHEREAS, A rtlands’ desires that R EACH on Artlands’ behalf beautify the community with the planting of plants, flowers and other plant materials for a green space and garden and other improvements in accordance with the Artlands’ Site Proposal attached hereto and incorporated by reference as Exhibit “A” (the “Artlands Site Improvements”); and WHEREAS, the C ity has agreed to provide a portion of city -owned property for the Improvements located at southwest corner of North University Street and East Colton Avenue, as more accurately described as Assessor’s Parcel Number 0170 -083-03-0000 (the “Property”), and as depicted in Exhibit “B” (the “Location in Sylvan park ”); attached hereto and incorporated by reference herein as well as to provide access to irrigation for the Improvements; and WHEREAS, research evidence suggests that green spaces such as parks and gardens provide numerous benefits for human health, well-being, and the environment; and WHEREAS, Artlands will provide the City with improved green space for the community.

NOW, THEREFORE, in consideration of the above recitals and the mutual covenants hereinafter contained, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Parties agree as follows:

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AGREEMENT
Section 1. Incorporation of Recitals. The above recitals are true and correct and are hereby incorporated into this MOU by this reference.

Section 2. Authority. Unless otherwise specified herein, all authority to act on behalf of the C ity will be exercised by the City of Redlands F acilities and Community Services (FCS) Department Director, or his or her designee. Unless otherwise specified herein, all authority to act on behalf of the Artlands pursuant to this MOU shall be exercised by the Artlands Executive Director.

Section 3. Artlands Obligations.

A. Artlands will provide the City with a site plan in digital or paper form which provides an overview of the Improvements, including but not limited to, the type of plants for the green space/gardens and enhancements including drip- line irrigation, which is subject to prior approval by the FCS Director, or his or her designee.

B. It is Artlands’ responsibility to inspect the Property prior to making the Improvements to ensure it is satisfactory for Artlands’ purpose and safe for Artlands’ staff and volunteers.

C. Artlands will be responsible for acquiring all necessary plant materials, planting soil, and other materials and equipment to perform the Improvements at its sole cost and expense.

The planting period will begin on or about February 18, 2026, and be completed on or about December, 2026.

D. Artlands will be responsible for maintaining the Improvements with new plant material as needed through December 31, 2026. Artlands will perform on -going maintenance on the Property, including but not limited to, trimming, weeding, and clearing when necessary to maintain the appearance and safety of the Property. Maintenance plan shall be approved by the FCS Director or his or her designee.

E. Artlands will perform the Improvements on the Property using its own employees and volunteers and shall not utilize City employees, volunteers or contractors to assist in the Improvements on the Property.

F. Artlands will allow City to inspect the Property at any time to ensure all Improvements have been performed consistent with this MOU, to ensure that there are no public safety concerns, and that the work complies with all local and state laws and policies.

Section 4. City Obligations. The City agrees, at its cost and expense, to prepare the Property for Artlands’ Improvements by doing the following: (1) Any clearing necessary to prepare the parcel; (2) installation of temporary fencing around the Property where the Improvements will be installed; (3) Providing a water source; (4) Providing one point of supply water line connection to the designated area within Sylvan Park: (5) Installation of DG pathways and Mow Curbs. City and Artlands Obligations.

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A. The Parties agree to abide by all applicable laws, and regulations governing this MOU.

B. The Parties agree that all Improvements on the Property shall be the sole property of City and Artlands shall have no ownership rights over any of the Improvements on the Property.

Section 5. Indemnity and Insurance.

A. Artlands shall defend, indemnify and hold harmless C ity, and its elected officials, officers, employees and agents from and against any and all claims, causes of action, damages and liability resulting from Artlands’ negligent acts or omissions, and the willful misconduct of Artlands, and Artlands’ employees, contractors, volunteers, agents, and invitees in the performance of its obligations as set forth in this MOU. This section shall survive any termination or expiration of this MOU.

B. City shall defend, indemnify and hold harmless Artlands , and its officers, employees, volunteers and agents from and against any and all claims, causes of action, damages and liability resulting solely from City's negligent acts or omissions, and the willful misconduct of City and City’s officers, officials, employees, contractors, volunteers, contractors, and agents in the performance of it s obligations as set forth in this MOU . This section shall survive any termination or expiration of this MOU.

C. Artlands shall provide the following insurance coverages:

1. Comprehensive general liability insurance, with carriers acceptable to City, with minimum coverage of One Million Dollars ($1,000,000) per occurrence, and T wo Million Dollars ($2,000,000) aggregate for public liability, property damage and personal injury. C ity shall be named as an additional insured and such insurance shall be primary and non-contributing to any insurance or self -insurance maintained by C ity. A certificate of insurance with endorsements evidencing such coverage shall be provided to City prior to Artlands’ occupancy of the Property.

2. 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 Artlands is self-insured or exempt from the worker’s compensation laws of the State of California. Workers’ Compensation coverage shall be endorsed to include volunteer coverage for Artlands’ employees and volunteers. Artlands shall provide C ity with Exhibit “ C,” titled “Workers’ Compensation Insurance Certification,” which is attached hereto and incorporated herein by this reference prior to occupancy of the Premises.

Any contractors or subcontractors assisting Artlands with the Improvements must maintain the same insurance coverage as Artlands. Artlands shall provide a certificate of insurance with endorsements evidencing such coverage and the certificate shall be provided to City prior to contractor or subcontractor’s performance of the Improvements on Property.

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Section 6. Duration and Termination. This MOU will be effective for a period of three (3) years commencing from the Effective Date set forth above. Either Party may terminate this MOU at any time by providing 30 days’ prior written notice to the other party.

Section 7. Notices. 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 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.

If to the City: City of Redlands
Facilities and Community Services Department
35 Cajon Street, Suite 222, Redlands CA 92373
Attn: Director of Facilities and Community Services

If to Artlands: Artlands Creative
18 East Vine Street, Redlands, CA 92373
Attn: Executive Director

Section 8. Miscellaneous Terms.

A. Representation and Warranties. Each Party has the requisite power and authority to execute and perform this MOU. Each person executing this MOU warrants that he or she has the legal power, right, and authority to execute this MOU and bind his or her respective Party.

B. Governing Law. This MOU shall be governed by and construed in accordance with the laws of the State of California. Prior to initiating any legal action arising out of or relating to this MOU, the parties agree to meet and confer in a good faith effort to resolve the dispute. If such efforts are unsuccessful, venue for any legal action will be in the courts located in San Bernardino County, California.

C. Relationship of the Parties. Nothing contained in this MOU shall be construed as creating a joint venture, partnership, or any other similar arrangement between the Parties. No Party to this MOU shall be deemed to be a representative, an agent, or an employee of the other Party. Unless otherwise expressly specified in this MOU, no Party shall have any authority or right to assume or create any obligation of any kind or nature, express or implied, on behalf of, or in the name of, any other Party, nor bind any other Party in any respect, without the specific prior written authorization of the other Party.

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D. Waiver. No Party shall be deemed to have waived any provision of this MOU unless such waiver is in writing and signed by such Party.

E. Legal Compliance. The Parties shall comply with all applicable Federal, State, and local laws and regulations related to the transactions set forth in, or referenced by, this MOU.

F. Third-Party Beneficiary. No claim as a third-party beneficiary under this MOU by any person, corporation, or any other entity, shall be made or be valid against Artlands or the City.

G. Headings. The section headings used in this MOU are for convenience only and shall not be deemed to limit, construe, affect or alter the meaning of this MOU.

H. Entire Agreement. This MOU constitutes the entire agreement between the Parties with respect to the matters contained herein and shall supersede and replace any and all other prior understandings, correspondence, and agreements, oral or written, between the Parties with respect thereto.

I. Modification. No change, amendment or modification of this MOU shall be valid or binding upon the Parties unless such change, amendment, or modification is in writing and duly executed by all Parties.

J. Assignment or Transfer. Artlands shall not assign, hypothecate, or transfer, either directly or by operation of law, this MOU or any interest he rein without the prior written consent of the C ity. Any attempt to do so shall be null and void, and any assignees, hypothecates, or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation, or transfer.

K. Binding Effect. The terms of this MOU shall inure to the benefit of, and shall be binding upon, each of the Parties and their respective successors and assigns.

L. Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this MOU shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforce ability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this MOU which are hereby declared as severable, and shall be interpreted to carry out the intent of the Parties hereunder.

M. Cooperation: Further Acts. The Parties shall reasonably cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this MOU.

N. Counterparts. This MOU may be signed in counterparts, each of which shall constitute an original.

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[Signatures on Next Page]

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SIGNATURE PAGE
TO

MOU BETWEEN ARTLANDS CREATIVE AND THE CITY OF REDLANDS

REGARDING COMMUNITY GREEN SPACE ENHANCEMENT COLLABORATION

IN WITNESS WHEREOF, the Parties have executed this MOU as of February 17th, 2026.

Artlands Creative City of Redlands

By: By:

Daniel Gohman, Executive Director Mario Saucedo, Mayor

Date: Date:

ATTEST:

By:

Jeanne Donaldson, City Clerk

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EXHIBIT “A”

ARTLANDS SITE IMPROVEMENTS

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EXHIBIT “B”

LOCATION IN SYLVAN PARK

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EXHIBIT “C”
WORKER’S COMPENSATION INSURANCE CERTIFICATE
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.

Artlands Creative

By: Date:

Daniel Gohman, Executive Director

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City Council Meeting F. 8.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the use of city resources and the request for in-kind support in the amount of $11,316.50 related to the Downtown Redlands Artwalk event on Sunday, March 29, 2026, hosted by the Kids Cures Foundation; approve temporary street closures related to the event; and determine that the event is categorically exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker) MOTION(S):

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

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

1. I move to authorize and approve the expenditure of city resources and in-kind support in the amount of $11,316.50;
and

2. I move to authorize and approve the temporary street closure detailed in the staff report for the Downtown Redlands Artwalk which will be held on Sunday, March 29, 2026.

3. RECOMMENDATION:

Staff recommends that the City Council direct staff accordingly regarding the request for in-kind support and the temporary street closures. Staff further recommends City Council determine that authorization for items related to the Downtown Redlands Artwalk Event is exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act (CEQA).

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DISCUSSION:

The Facilities and Community Services Department manages the administration and issuance of permits for special events held in public areas of the City. Upon the issuance of a special event permit, the event may take place contingent on the event organizer paying the required fees. However, the City recognizes the value of partnering with non-profit agencies and organizations to provide services beneficial to the community. In an effort to support programs that provide a community benefit, the City Council will, from time to time, consider the authorization of in-kind support including the use of city equipment, staff, and facilities for special events.

The Kids Cure Foundation, a registered non-profit organization based in the City of Beaumont is requesting to host their annual Downtown Redlands (DTR) Artwalk event in downtown Redlands on Sunday, March 29, 2026, from 10:00 a.m. to 6:00 p.m. This will be their 13th year holding this event within the city, and the foundation intends to provide a family-friendly event featuring live music, vendors, including food, and a kids’ play area in front of Jacks Toy Shop. This event will include a classic car show and local artists showcasing their art.

Kids Cures Foundation has submitted a request for approval to temporarily close specific streets in the downtown area on Sunday, March 29, 2026, to accommodate the event. Proposed street closures include:

State Street between Orange Street and 7th Street.
5th Street between Ed Hales parking lot driveway to the Orange Street Alley driveway approach; Ed Hales Parking lot entrance and the Orange Street Alley entrance will not be impacted by the closure.

The requested closure times are as follows:

To accommodate set up and clean up, the street closures will remain in effect between 8:00 a.m. and 7:00 p.m on Sunday, March 29, 2026.

Additionally, Kids Cures Foundation is requesting in-kind support in the amount of $11,316.50 for departmental resources, including Police and Facilities and Community Services (FCS) personnel. Per the Foundations application, they anticipate 2,500 attendees, with participation from more than 50 vendors.

Previously, the City Council approved $5,734.00 in in-kind support for last year’s DTR Artwalk, hosted on Sunday, March 30, 2025. Kids Cures Foundation envisions this year’s event as a community-centered gathering that promotes Downtown Redlands' businesses, enhances local economic activity, and showcases local artists and their talent.

The event is exempt from the requirements of the California Environmental Quality Act’s guidelines pursuant to Section 15311(c). Section 15311(c), Accessory Structures Class 11 facilities, consists of the construction or Redlands Regular Meeting of 02-17-26
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replacement of minor structure accessory to existing commercial, industrial, or institutional facilities, including placement of seasonal or temporary use items such as mobile food units, portable restrooms, or similar items in generally the same locations from time to time in publicly owned parks or other facilities designed for public use.

ALTERNATIVES:

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

STRATEGIC PLAN:

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

SUBMITTED BY:

Tabitha Crocker, Facilities and Community Services Director RECOMMENDED BY:

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

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

Jaclyn Ramirez, Administrative Assistant II
Fiscal Impact
Fiscal Year: 2025/26
Revenue Generating: Y
Appropriation Required Y/N: N
Amount: $11,316.50
Budgeted Y/N: N
Discussion:

Please see "Fiscal Impact" attachment for reference.

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Attachments
In-Kind Support Request
Verification of Non-Profit
Street Closure Permit
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City Council Meeting F. 9.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the First Amendment to the Agreement with Cultural Planning Group, LLC to extend the term of the Professional Service Agreement for development of an Arts and Culture Master Plan (Facilities and Community Services Director Crocker)
MOTION(S):

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

"I move to approve the First Amendment to the Agreement with Cultural Planning Group, LLC to extend the term of the agreement until April 2, 2026." RECOMMENDATION:

Staff recommends that the City Council approve the First Amendment to the Agreement with Cultural Planning Group, LLC to extend the term of the existing Professional Services Agreement until April 2, 2026, to provide the development of an Arts and Culture Master Plan.

DISCUSSION:

The Cultural Arts Commission (Commission) promotes public interest in the Arts, recommends new art programs and funding for those programs, and recommends to the City Council policies to encourage, develop, and support the Arts in Redlands. The Commission also advises the City Council on the administration of the City's Art in Public Places program.

In May, 2022, City Council received and filed the Arts Economic Impact Study completed for the City of Redlands by the Americans for the Arts Organization.

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comprehensive economic impact study of the nonprofit arts and culture industry ever conducted. The AEP5 Study documented the economic contributions of the arts in 341 communities and regions across the country, representing all 50 states and the District of Columbia.

The City advertised a Request for Proposals for the development of an Arts and Culture Master Plan on April 27, 2023. Forty-two vendors were solicited, and eight responsive bids were received on June 15, 2023. A selection committee reviewed and ranked each organization based on their demonstrated competence and the professional qualifications deemed necessary for the satisfactory performance of the services required in accordance with the City's procurement policy. Cultural Planning Group was selected as the most highly qualified firm, based on the response to the scope of work provided in the RFP.

The proposed amendment would extend the term of the agreement until April 2, 2026, which will allow staff to close the project out in both deliverables and billing.

ALTERNATIVES:

Council may choose not to approve the professional services agreement amendment for the development of an Arts and Culture Master Plan and direct staff accordingly.

STRATEGIC PLAN:

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

SUBMITTED BY:

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

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

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

Joe Bierma, Administrative Analyst
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Fiscal Impact
Fiscal Year: FY 2024-26
Appropriation Required Y/N: No
Discussion:

Sufficient funding for this service is included in the Facilities and Community Services Administrative Division's (101300) budget for Fiscal Year 2024-26 as approved by City Council. The intention of this amendment is to allow close out of payment to this consultant.

Attachments
A. Agreement Amendment - Cultural Planning Group
B. Professional Services Agreement - Cultural Planning Group Redlands Regular Meeting of 02-17-26
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FIRST AMENDMENT TO AGREEMENT TO PERFORM PROFESSIONAL SERVICES

This first amendment (“First Amendment”) to the agreement for the provision of Development of an Arts and Culture Master Plan services (“Agreement”), dated April 2, 2024, by and between the City of Redlands, a municipal corporation and a general law city ( “City”), and The Cultural Planning Group, LLC, a California limited liability company (“Consultant”), is made and entered into this 17th day of February, 2026.

RECITALS

WHEREAS, it is the desire of the City and Consultant to amend their existing Agreement as set forth in this First Amendment modifying Section 4.2 and Section 5.1, Exhibit “B” and Exhibit “C.”

NOW, THEREFORE, for good and valuable consideration in the receipt of which is hereby acknowledged City and Consultant agree as follows:

AGREEMENT

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

“The term of this Agreement shall be for a period of two (2) years commencing as of the Effective Date, unless terminated earlier as provided herein.”

Section 2. Section 5.1 of the Agreement, entitled “Payments to Consultant,” is hereby amended to read as follows:

“Compensation: Total compensation for Consultant’s performance of the Services shall not exceed the amount of One Hundred Thirty -One Thousand, Eight Hundred Ten Dollars ($131,810). City chall pay Consultant on a time and materials basis up to the not to exceed amount in accordance with Exhibit “C,” titled (“Fee Schedule”) which is attached hereto and incorporated herein by reference.”

Section 3. The Project Schedule set forth in Exhibit “B” of the Agreement is removed and replaced with Exhibit “B” “Project Schedule,” which is attached hereto and incorporated herein by this reference.

Section 4. The Fee Schedule set forth in Exhibit “C” of the Agreement is removed and replaced with Exhibit “C” “Fee Schedule,” which is attached hereto and incorporated herein by this reference.

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

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IN WITNESS WHEREOF, the parties have executed this First Amendment, to be effective as of February 17th, 2026.

CITY OF REDLANDS THE CULTURAL PLANNING GROUP,
LLC

________________________________ By: ________________________________ Mario Saucedo, Mayor David Plettner-Saunders, Partner

ATTEST:

__________________________________
Jeanne Donaldson, City Clerk

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EXHIBIT “B”

PROJECT SCHEDULE

• Project Initiation & Background Research Months 1-3

• Site Visit #1 (3-day onsite visit) Month 4
Project Start-up and Initial Community Engagement

• Interim Activities Month 5

• Site Visit #2 (3-day onsite visit) Month 6
Continued Stakeholder and Community Engagement

• Interim Activities Months 7-11

• Site Visit #3 (2-day onsite visit) Month 12
Draft Arts and Culture Strategic Master Plan

• Interim Activities Month 11-19

• Site Visit #4 (1 day) Month 20
• Plan Adoptions

• Post-Adoption Assistant Six Months

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EXHIBIT “C”

FEE SCHEDULE

CPG Kearns & West Arts Connection
Partner Partner Director Associate Executive Director
Hourly Rate $220 $220 $210 $160
Consultant Fees $35,570 $37,770 $11,970 $15,680 $7,500
Direct Costs $12,044 $1,200
Contingency $1,000
Travel Expenses $8,266

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City Council Meeting F. 10.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Approve the use of city resources and the request for in-kind support in the amount of $43,875.54 related to the Run Through Redlands event hosted on March 1, 2026, by the Kiwanis Club; authorize the sale and consumption of alcohol and approve temporary street closures related to the event; and determine that the event is categorically exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act (Facilities and Community Services Director Crocker)
MOTION(S):

If the City Council desires to provide in-kind support for this event, the following motions are provided:

1. I move to authorize and approve the expenditure of city resources and in-kind support in the amount of $43,875.54; and

2. I move to authorize and approve the temporary street closures and the sale and consumption of alcohol detailed in the staff report for the Run Through Redlands event, which will be held on March 1, 2026.

3. RECOMMENDATION:

Staff recommends that the City Council direct staff accordingly regarding the request for in-kind support and the temporary street closures. Staff further recommends City Council determine that authorization for items related to the Run Through Redlands event is exempt from environmental review pursuant to Section 15311(c) of the State's guidelines implementing the California Environmental Quality Act (CEQA).

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DISCUSSION:

The Facilities and Community Services Department manages the administration and issuance of permits for special events held in public areas of the City. Upon the issuance of a special event permit, the event may take place contingent on the event organizer paying the required fees. However, the City recognizes the value of partnering with non-profit agencies and organizations to provide services beneficial to the community. In an effort to support programs that provide a community benefit, the City Council will, from time to time, consider the authorization of in-kind support including the use of City equipment, staff, and facilities for special events.

The Kiwanis Club of Redlands is preparing its annual Run Through Redlands event, scheduled to take place on March 1, 2026, from 5:00 a.m. to 2:00 p.m., with the race starting at 7:00 am. The anticipated attendance for the Run Through Redlands event is approximately 2,650 attendees. The Kiwanis Club of Redlands is also requesting in-kind support totaling $43,875.54 for the street closure related to this event. The Kiwanis Club of Redlands is a registered 501(c) non-profit organization operating out of the City of Redlands. The City Council has approved similar requests for past events.

The Kiwanis Club of Redlands has reserved Smiley Park from Friday, February 27, 2026, through Sunday, March 1, 2026, for the annual Run Through Redlands event. Race registration and bib pickup will take place on February 27 and 28. On March 1, 2026, three races will be held; the 10K beginning at 7:00 a.m., the half-marathon beginning at 7:20 a.m., and the 5K beginning at 7:45 a.m.

The Kiwanis Club of Redlands has submitted a request for approval to temporarily close specific streets in the downtown area on Sunday, March 1, 2026, to accommodate the event.

The requested street closure location and times are as follows:

Please see the attached event map for all related closures.

To accommodate set up and clean up, these street closures will remain in effect between 6:00 a.m. and 3:00 p.m on Sunday, March 1, 2026.

Additionally, The Kiwanis Club of Redlands is requesting in-kind support in the amount of $43,875.54 for departmental resources, including Police and Facilities and Community Services (FCS) personnel. Per the foundations application, they anticipate 2,650 attendees, with participation from more than 20 vendors.

Previously, the City Council approved $41,744.00 in in-kind support for last year’s Run Through Redlands event, which was held on Sunday, March 2, 2025.

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community-centered gathering that promotes Downtown Redlands businesses, boosts local economic activity, and provides a healthy, family-friendly experience for residents.

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

ALTERNATIVES:

The City Council may elect to deny the request for in-kind support, deny the request for temporary street closure, deny the sale and consumption of alcoholic beverages and direct staff accordingly.

STRATEGIC PLAN:

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

SUBMITTED BY:

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

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

Jaclyn Ramirez, Administrative Assistant II
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Fiscal Impact
Fiscal Year: 2025/26
Revenue Generating: Y
Appropriation Required Y/N: N
Amount: $43,875.54
Budgeted Y/N: N
Discussion:

Please see the "Fiscal Impact" attachment for reference.

Attachments
Special Event Application
In-Kind Request
Event Route Map
Verification of Non-Profit
ABC Permit
Street Closure Permit
Fiscal Impact
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In anticipation of the City Council's consideration of this request, staff has compiled the following table outlining costs related to fees established by Resolution of the City Council and departmental charges pertaining to personnel and equipment resources necessary for the support of the event. The departmental charges are costs outside of normal City operations that would not be incurred by the City if the special event was not taking place.

Departmental Charges
(Personnel & Equipment)
2025-2026
Amount Type 2024-2025
Amount
Police Personnel1 $40,100.00 Hard Cost $38,718.00
Fire Personnel1 $1,881.54 Hard Cost $1,132.32
Facilities & Community Services Personnel1 $1,800.00 Hard Cost $1,800.00 Personnel & Equipment Subtotal $43,781.54 $41,650.32
Fees Established by City Council
Resolution

Park Reservation $94.00 Soft Cost $94.00
FCS Equipment $0.00 Soft Cost $0.00
Fire Equipment $0.00 Soft Cost $0.00
Fees Subtotal $94.00 $94.00
Total Departmental Charges and Fees $43,875.54 $41,744.32

$43,781.54
$94.00
$43,875.54
Hard Cost
Soft Cost
Total
$41,650.32
$94.00
$41,744.32
1Personnel costs are calculated conservatively assuming the highest staff cost scenario. Actual costs may vary on the day of the event based on the actual staff present. Actual costs will be confirmed following the event and will be included in a reconciliation report presented to the City Council.

The following table summarizes the total estimated costs associated with the use of City resources and waiver of fees approved for events scheduled during Fiscal Year 2025-26 to date:

TABLE 2: FY 2025-26 Fee Waivers to date
Hard Costs Soft Costs Deposits
Refunded
Waiver
Amount
Net
Amount
$270,675.65 $19,269.63 $0.00 $289,945.28 $289,945.28

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City Council Meeting F. 11.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Approve first amendments to the agreements with AtWork Personnel Services and waterTALENT for the provision of temporary staffing to increase the total compensation of the agreements (Human Resources/Risk Management Director Meteau) MOTION(S):

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

I move to approve the first amendment to the agreement with AtWork Personnel Services to increase the total compensation by an amount not-to-exceed $150,000 for the final year of the agreement ending June 30, 2026; and

1. I move to approve the first amendment to the agreement with waterTALENT to increase the total compensation by an amount not-to-exceed $150,000 for the final year of the agreement ending June 30, 2026.

2. RECOMMENDATION:

Staff recommends that City Council approve the first amendments to the agreements with AtWork Personnel Services and waterTALENT.

DISCUSSION:

The Human Resources Department contracts with temporary staffing agencies to provide additional staffing due to vacancies, extended leaves of absence, and special projects as needed. In July 2021, the City entered into agreements with AtWork Personnel Services for the provision of temporary staffing for administrative and clerical positions and waterTALENT for the provision of Redlands Regular Meeting of 02-17-26
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temporary staffing for certified water and wastewater positions. Due to various staffing needs that have occurred during the current fiscal year, it is necessary to increase the total compensation of these temporary staffing agreements in order to meet the temporary staffing needs of City departments through the end of this fiscal year. Staff is proposing to increase the agreements with AtWork Personnel Services and waterTALENT by an amount not-to-exceed $150,000 each. Both agreements are due to expire on June 30, 2026. In the next month, the Human Resources Department plans to solicit new proposals for temporary staffing services for the next fiscal year beginning July 1, 2026.

ALTERNATIVES:

N/A
STRATEGIC PLAN:

N/A
SUBMITTED BY:

Robert Meteau, Human Resources/Risk Management Director RECOMMENDED BY:

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

Janice McConnell, Assistant City Manager
Yvette , City Attorney
Danielle Garcia, Management Services/Finance Director

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Fiscal Impact
Fiscal Year: 2025-26
Appropriation Required Y/N: N
Budgeted Y/N: Y
Discussion:

Costs for temporary staffing will be absorbed in the applicable department's operating budget for FY 2025-26.

Attachments
First Amendment to Agreement with AtWork Personnel Services First Amendment to Agreement with waterTALENT
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FIRST AMENDMENT TO AGREEMENT TO PERFORM PROFESSIONAL SERVICES

This first amendment (“First Amendment”) to the agreement for the provision of temporary staffing services (“Agreement”), dated June 15, 2021 by and between the City of Redlands, a municipal corporation (“City”), and G&M Hire Enterprises, LLC dba AtWork (“Consultant”), is made and entered into this 17th day of February, 2026.

RECITALS

WHEREAS, it is the desire of the City and Consultant to amend their existing Agreement to increase the total compensation of the services;

NOW, THEREFORE, for good and valuable consideration in the receipt of which is hereby acknowledged City and Consultant agree as follows:

AGREEMENT

Section 1. Section 5.1 of the Agreement, entitled “Payments to Consultant,” is hereby amended to read as follows:

“The total compensation for Consultant’s performance of the Services shall not exceed the amount of three hundred thousand dollars ($300,000) for the period of three years of the Initial Term, and shall not exceed the amount of one hundred thousand dollars ($100,000) for the first additional one-year renewal option , and shall not exceed the amount of two hundred fifty thousand dollars ($250,000) for the second additional one -year renewal option, bringing the total compensation payable to an amount not -to-exceed six hundred fifty thousand dollars ($650,000). City shall pay Consultant on a time and materials basis up to the not to exceed amount in accordance with Exhibit “B” titled “Fee Schedule Title” which is attached hereto and incorporated herein by reference.”

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

IN WITNESS WHEREOF, the parties have executed this First Amendment, to be effective as of February 17, 2026.

CITY OF REDLANDS G&M HIRE ENTERPRISES DBA

ATWORK PERSONNEL SERVICES

________________________________ By: ________________________________ Mario Saucedo, Mayor Judy Contreras, Regional Director

ATTEST:

__________________________________
Jeanne Donaldson, City Clerk
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FIRST AMENDMENT TO AGREEMENT TO PERFORM PROFESSIONAL SERVICES

This first amendment (“First Amendment”) to the agreement for the provision of temporary staffing services (“Agreement”), dated June 15, 2021 by and between the City of Redlands, a municipal corporation (“City”), and waterTALENT, a limited liability company (“Consultant”), is made and entered into this 17th day of February, 2026.

RECITALS

WHEREAS, it is the desire of the City and Consultant to amend their existing Agreement to increase the total compensation of the services;

NOW, THEREFORE, for good and valuable consideration in the receipt of which is hereby acknowledged City and Consultant agree as follows:

AGREEMENT

Section 1. Section 5.1 of the Agreement, entitled “Payments to Consultant,” is hereby amended to read as follows:

“The total compensation for Consultant’s performance of the Services shall not exceed the amount of three hundred thousand dollars ($300,000) for the period of three years of the Initial Term, and shall not exceed the amount of one hundred thousand dollars ($100,000) for the first additional one-year renewal option , and shall not exceed the amount of two hundred fifty thousand dollars ($250,000) for the second additional one -year renewal option, bringing the total compensation payable to an amount not -to-exceed six hundred fifty thousand dollars ($650,000). City shall pay Consultant on a time and materials basis up to the not to exceed amount in accordance with Exhibit “B” titled “Fee/Cost Proposal ” which is attached hereto and incorporated herein by reference.”

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

IN WITNESS WHEREOF, the parties have executed this First Amendment, to be effective as of February 17, 2026.

CITY OF REDLANDS WATERTALENT

________________________________ By: ________________________________ Mario Saucedo, Mayor Tyler Reifert, President

ATTEST:

__________________________________
Jeanne Donaldson, City Clerk
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City Council Meeting G. 1.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Annual Report of the Human Relations Commission by Commission Chair Ken Ford (Human Resources/Risk Management Director Meteau)
DISCUSSION:

For this evening's City Council, Commission Chair Ken Ford will be presenting the Human Relations Commission's Annual Report.

SUBMITTED BY:

Janice McConnell, Assistant City Manager
REVIEWED BY:

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

Sarah Redinger, Human Resources Analyst
Attachments
2026 Annual HRC Report
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2025 Annual Report from Human Relations Commission Chairperson Kenneth Ford:

The year started off with ambitious plans for various events. Early in the year I met with the City Manager’s office to clarify our role as a commission.

There were some challenges to quorums for commission meetings, as one commissioner resigned and another was unable to attend due to illness. We have been unable to meet since July due to lack of a quorum.

However, we continued to strive to put programs together to enhance the Redlands community. The commission and its subcommittees have been developing a program to celebrate various cultural holidays. We expect to ﬁnalize this program in 2026.

In June, the Human Relations Commission hosted a LGBTQ+ forum with community members as panelists. Questions were submitted by the audience and there were some signiﬁcant disagreements. However, it was a good opportunity for the community to hear each other's opinions on the LGBTQ+ community in a safe and open environment.

We were able to establish some new community relationships. I was able to represent the Human Relations Commission at the joint Redlands Family Services/Church of Jesus Christ of Latter-day Saints food drive. Together, we collected over 20,000 pounds of food.

Despite the turnover on the commission and sometimes lack of quorums, we were able to carry on. We will have our annual election of officers at our next meeting March meeting.

Whether I continue as chairperson will be decided at that meeting. However, I've made a commitment to this commission and I will fulﬁll it to the end of my current term that I've been selected for.

I believe in the purpose and mission of this commission and I thank the City Council and the City staff for their time and effort assisting us.

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City Council Meeting G. 2.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Annual Report of the Traffic and Parking Commission (Municipal Utilities and Engineering Interim Director Casey)
DISCUSSION:

Chapter 2.48 of the Redlands Municipal Code establishes Traffic and Parking Commission (TPC) appointment protocols, objectives, goals, and reporting requirements. Each year, a TPC Commissioner submits a report to the City Council summarizing the accomplishments of the previous year.

Attachments
Traffic and Parking Commission - 2025 Annual Report
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City Council Meeting G. 3.

DATE: 02/17/2026
TO: Honorable Mayor and City Council Members
SUBJECT: Presentation and acceptance of the Fiscal Year 2025 City of Redlands Annual Comprehensive Financial Report, and the Independent Accountants’ Report on Applying Agreed-Upon Procedures related to the Article XIII-B Appropriations Limit Calculation (Management Services/Finance Director Garcia) MOTION(S):

I move to accept the City of Redlands Annual Comprehensive Financial Report and the Independent Accountants’ Report on Applying Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit Calculation for the fiscal year ending June 30, 2025.

RECOMMENDATION:

N/A
DISCUSSION:

The Annual Comprehensive Financial Report (ACFR) communicates the City’s financial condition and activity for the fiscal year ending June 30, 2025. It is an audited summary report of the financial position and transactions of the City for the fiscal year. The Pun Group LLP, a certified public accounting firm, audited these documents and has provided an unmodified opinion of the City’s financial statements. An unmodified opinion communicates to users that the financial statements are fairly presented and that the information used in the report is consistent with generally accepted accounting principles. This is the best opinion that the City can receive from its auditors.

State statute and federal funding requirements stipulate the need for an annual audit to be conducted by independent certified public accountants. The Pun Group LLP was selected through a competitive selection process to perform these services for the City. The audit engagement was also designed to meet Redlands Regular Meeting of 02-17-26
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the requirements of the Federal Single Audit Act of 1984 and related OMB Circular A-133, as well as the requirements of Statement on Auditing Standards 115 (SAS 115) and Statement on Auditing Standards 114 (SAS 114).

Accounting and reporting requirements adopted by the Governmental Accounting Standards Board (GASB) for annual financial statements of state and local governments have been implemented as required.

Pursuant to GASB guidelines, the City’s ACFR is divided into three sections:

Introductory, Financial and Statistical. The Introductory section contains a Letter of Transmittal. This letter includes a brief overview of the City, economic outlook, operational controls, and major initiatives. It also includes the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for the prior fiscal year ended June 30, 2024. The GFOA's Certificate is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment. The City has consistently received this award for the last twenty two years.

The ACFR presents the City’s financial condition and activity in a transparent and structured manner, which is explained in more detail in the section for Management’s Discussion and Analysis. The report also provides historical and comparative information that can be useful to City staff, elected officials, and external users such as debt rating agencies, businesses, other public agencies, and the City’s residents. The 2025 Annual Comprehensive Financial Report and several prior year reports are available on the City’s website at cityofredlands.org/ACFR.

Article XIII-B of the California Constitution places limits on the amount of revenue that can be spent by the state and each local government entity. It is the responsibility of the City to calculate the annual appropriations limit. The City’s auditors are required to review and approve the appropriations calculation as part of their audit to the City. The auditor found no exceptions to the City’s calculation of the appropriations limit. The Independent Accountants’ Report on Agreed-Upon Procedures Applies to Appropriations Limit Worksheet is included as an attachment to this report.

ALTERNATIVES:

Not Applicable
STRATEGIC PLAN:

Not Applicable
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SUBMITTED BY:

Danielle Garcia, Management Services/Finance Director
RECOMMENDED BY:

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

Janice McConnell, Assistant City Manager
Fiscal Impact
Discussion:

There is no fiscal impact associated with the motion provided.

Attachments
FY 2025 Annual Comprehensive Financial Report
AU-C 260 Letter (Conclusion of the Audit)
Agreed-Upon Procedures Related to the Article XIII-B Appropriations Limit Calculation
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City of Redlands
Redlands, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2025
Prepared by
Management Services/Finance Department
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City of Redlands
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
i
Page
INTRODUCTORY SECTION (Unaudited)
Table of Contents
........................................................................................................................................................ i Letter of Transmittal ................................................................................................................................................... v Principal Officers ...................................................................................................................................................... xv Organization Chart ............................................................................................................ ..................................... xvi GFOA Certificate of Achievement ........................................................................................................................ xvii

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................................ 1 Management’s Discussio
n and Analysis (Unaudited)............................................................................................ 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ..................................................................................................... ....................... 32 Statement of Activities ..................................................................................................... ........................... 34 Fund Financial Statements:

Governmental Funds Financial Statements:

Balance Sheet ........................................................................................................................................ 41 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ...................................................................... 42 Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................ 43 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position ..................................................................... 44 Proprietary Funds Financial Statements:

Statement of Net Position .................................................................................................. ................... 46 Statement of Revenues, Expenses and Changes in Net Position .......................................................... 50 Statement of Cash Flows ....................................................................................................................... 52 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ..................................................................................................... 59 Statement of Changes in Fiduciary Net Position .................................................................................. 60 Notes to the Basic Financial Statements ......................................................................................................... 65 Redlands Regular Meeting of 02-17-26
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City of Redlands
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
ii
Page
FINANCIAL SECTION (Continued)
Required Supplementary
Information (Unaudited):

Budgetary Information ..................................................................................................................................... 127 Budgetary Co
mparison Schedules:

General Fund ................................................................................................................ ............................. 128 Governmental Grants Special Revenue Fund ............................................................................................ 131 Schedule of Changes in the Net Pension Liability and Related Ratios ............................................................ 132 Schedule of the City’s Proportionate Share of the Net Pension Liability and Related Ratios ......................... 135 Schedules of Contributions – Pension .............................................................................................................. 136 Schedule of Changes in Total OPEB Liability and Related Ratios ................................................................. 138 Supplementary Information:

Non-Major Governmental Funds:

Combining
Balance Sheet ......................................................................................................................... 143 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................................................. 149 Budgetary Comparison Schedules:

Emergency S
ervice Special Revenue Fund ......................................................................................... 155 Household Hazardous Waste Special Revenue Fund ......................................................................... 156 State Gas Tax Special Revenue Fund ................................................................................................. 157 Air Quality Improvement Special Revenue Fund ............................................................................... 158 Traffic Safety Special Revenue Fund ................................................................................................. 159 Measure I Special Revenue Fund ........................................................................................................ 160 Open Space Special Revenue Fund ..................................................................................................... 161 Downtown Redlands Business Area Special Revenue Fund .............................................................. 162 Parking Authority Special Revenue Fund ........................................................................................... 163 Asset Forfeiture Special Revenue Fund .............................................................................................. 164 Supplemental Law Enforcement Grant Special Revenue Fund .......................................................... 165 Park and Open Space Special Revenue Fund ................................................................................... .. 166 Arterial Street Construction Special Revenue Fund ........................................................................... 167 Traffic Signals Special Revenue Fund ................................................................................................ 168 Freeway Interchanges Special Revenue Fund ..................................................................................... 169 Street Lighting District #1 Special Revenue Fund .............................................................................. 170 CFD 2004-1 Assessment Special Revenue Fund ................................................................................ 171 Landscape Maintenance District Special Revenue Fund .................................................................... 172 Local Transportation Special Revenue Fund ...................................................................................... 173 PARIS Special Revenue Fund ............................................................................................................ 174 Public Art Special Revenue Fund ....................................................................................................... 175 Transportation Development Act Special Revenue Fund ................................................................... 176 Public Facilities Development Special Revenue Fund ....................................................................... 177 Storm Drain Capital Projects Fund ..................................................................................................... 178 Safety Hall Replacement Capital Projects Fund ................................................................................. 179 General Debt Service Fund ................................................................................................................. 180 Simonds Endowment Permanent Fund ............................................................................................... 181 Pauline Stancliff Memorial Trust Permanent Fund ............................................................................ 182 Redlands Regular Meeting of 02-17-26
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City of Redlands
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
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Page
FINANCIAL SECTION (Continued)
Supplementary Information (Continued):

Non-Major Enterprise Funds:

Combining S
tatement of Net Position ....................................................................................................... 185 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................... 187 Combining Statement of Cash Flows ........................................................................................................ 188 Internal Service Funds:

Combining Statement of Net Position ....................................................................................................... 192 Combining Statement of Revenues, Expenses, and Changes in Net Position ........................................... 194 Combining Statement of Cash Flows ........................................................................................................ 196 STATISTICAL SECTION (Unaudited)
Table of Contents
.................................................................................................................................................... 203 Financial Trends:

Net Position by Component – Last Ten Fiscal Years ...................................................................................... 204 Changes in Net Position – Last Ten Fiscal Years ............................................................................................ 206 Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................................... 210 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................. 212 Revenue Capacity:

Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ........................... 215 Assessed Value and Estimated Actual Value of
Taxable Property by Major Type – Last Ten Fiscal Years ........................................................................ 216 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years ............................................................. 218 Top Ten Principal Property Taxpayers – Fiscal Year 2025 and Nine Years Prior .......................................... 220 Property Tax Levies and Collections – Last Ten Fiscal Years ........................................................................ 221 Debt Capacity:

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ......................................................................... 222 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years ............................................................ 224 Direct and Overlapping Governmental Activities Debt ................................................................................... 225 Legal Debt Margin Information – Last Ten Fiscal Years ................................................................................ 226 Pledged Revenue Coverage – Last Ten Fiscal Years ....................................................................................... 228 Demographic and Economic Information:

Demographic and Economic Statistics – Last Ten Fiscal Years ...................................................................... 229 Principal Employers – Fiscal Year 2025 and Nine Years Prior ....................................................................... 230 Operating Information:

Full Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ............................. 231 Operating Indicators by Function/Program – Last Ten Fiscal Years ............................................................... 232 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ........................................................... 234 Redlands Regular Meeting of 02-17-26
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City of

REDLANDS
Incorporated 1888
35 Cajon Street, Redlands, CA 92373
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MANAGEMENT SERVICES

DEPARTMENT

FINANCE DIVISION
Danielle Garcia
Management Services/Finance
Director

James Garland
Assistant Finance Director

December 18, 2025

To the Members of the City Council and Citizens of the City of Redlands:

It is the policy of the City of Redlands (the “C ity”) to annually publish a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America (GAAP) and audited in accordance with generally accepted auditing standards by a firm of certified public accountants. Purs uant to that requirement, we hereby issue the annual comprehensive financial statements of the Ci ty of Redlands (the City) for the Fiscal Year ended June 30, 2025.

This report consists of manage ment’s representations concerni ng the finances of the City.

Consequently, management assumes full responsi bility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these representations, management of the City has established a comprehensive internal control framework that is designed both to protect the Ci ty’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we asse rt that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City’s financial statements have been audited by The Pun Group, LLP, an independent firm of certified public accountants. The goal of th e independent audit was to provide reasonable assurance that the financial statements of the Ci ty for the Fiscal Year ended June 30, 2025, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosure s in the financial statements; assessing the accounting principles used and significant esti mates made by management; and evaluating the overall financial statement presentation. The independent auditor conc luded, based upon the audit, that there was a reasonable basis for rende ring an unmodified (“clean”) opinion that the City’s financial statements for the Fiscal Year ended June 30, 2025 were fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

The independent audit of the financial statements of the City is typically part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited City’s internal controls and legal requirements involving the administration of federal awards.

These reports are available in the City’s separately issued Single Audit Report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditor’s report.

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PROFILE OF THE CITY OF REDLANDS

The City of Redlands, incorporat ed in 1888, is located 63 miles east of Los Angeles, 110 miles north of San Diego, and 500 miles southeast of San Francisco. It lies within the San Bernardino Valley in the southwestern portio n of San Bernardino County, covering an area of 36 square miles, within the heart of the Inland Empire. It serves a population of 73,488.

The City was incorporated under the general laws of the Stat e of California and enjoys all the rights and privileges applicable to a General Law Ci ty. It is a municipal corporation governed by a five-member city council in which all policy-ma king and legislative authority is vested. The City Council is responsible, am ong other things for passing ordinances, adopting the budget, appointing committees, and hiring both the City Manager and City Attorney. The City Manager is the chief administrative officer of the City and as such is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and for appointing department heads. The Counc il is elected on a non-partisan basis. Adopted in 2017, Ordinance No. 2848, am ended the Redlands Municipal Code to change the City’s electoral system for City Coun cil Members from at-large to by-district elections. Council members serve four-year staggered terms, with elections occurring every two years. The City Council meets after each general municipal electi on and chooses one of its members as Mayor, and one of its members as Mayor Pro Tempore by way of council me mber nomination. The terms of office of the Mayor and Mayor Pro Tempore are for two (2) years.

The City provides a full range of services, including police and fire protection, animal control, emergency medical aid, building safety regulation and inspection, street lighting, landscaping, sewer and water utilities, solid waste collectio n and disposal, land use planning and zoning, recreation and community serv ices, maintenance and improvem ent of streets and related structures, traffic safety maintenance and impr ovement, and a full range of recreational and cultural programs for citizen participation, as well as being the home of the historic A. K. Smiley Public Library.

Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America (GAAP). While annual appropriated budgets are adopted for all departments within the general, special revenue, and capital project funds, the City operates on a biennial budget cycle to guide its financial planning and control.

Every two years, during the period from Febr uary through May, department heads prepare estimates of required appropriations for the upcoming two-year budget cy cle. These estimates are compiled into a proposed operating budg et, which includes a summary of projected expenditures, financial resources, and historical data from the preceding budget cycle. The City Manager’s Recommended Budget is then presente d either to the full City Council or to the Budget Subcommittee (comprised of two members of the City Council and the City Treasurer) at a public meeting noticed in accordance with the Brown Act. Following a series of two to three budget presentations during regular and special Council meetings, the biennial budget is formally adopted by the City Council at a regular meeting prior to June 30th of the second year in the current cycle.

The City Manager is legally au thorized to transfer budgeted amounts between divisions and accounts within the same depart ment. Transfers of appropriat ions between departments or funds, as well as any increases to appropriations , must be authorized by the City Council.

Expenditures may not legally exceed budgeted appropriations within a fund.

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Under the City’s biennial budget framework, all a ppropriations lapse at th e end of each fiscal year unless they have been expended or lawfully encumbered. Appropriations from the first year of the biennium that remain encumbered automatically carry forward into the second year pursuant to the adopted biennial budget resolu tion. Appropriations adopted for the second year, however, do not continue into the next biennium unless they are encumbered; departments must re-budget any unencumbered se cond-year projects or requests as part of the new budget cycle.

The City maintains budgetary contro ls to ensure compliance with provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, special revenue funds, debt service funds, capita l project funds, enterprise funds, and internal service funds are included in the City’s bienni ally adopted budget and constitute the legally appropriated operating and capital budgets of the City. The City’s pe rmanent funds are not budgeted. The level of control (level at which expenditures may not exceed budget) is the fund level. The City also maintains an encumbra nce accounting system as one technique of accomplishing budgetary control. Encumbered amounts are carried forward into the next fiscal year of a biennial budget by resolution of the City Council that is adopted at the same time the budget is adopted. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund and major special revenue funds, this compar ison is presented as part of the required supplementary information in the accompanying financial statements. For governmental funds that have appropriated biennial budgets, ot her than the general fund and major special revenue funds, this comparison is presented in the supplementary section of the accompanying financial statements.

ECONOMIC CONDITION AND OUTLOOK

The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City operates.

Local economy . Throughout fiscal year 2025, econom ic indicators reflected a mixed performance, showcasing both growth and ch allenges. Property tax revenue experienced robust growth of 8% compared to the prior fisc al year, with roughly 1.75% of this increase attributed to the annual adjustment for CPI. New residential and co mmercial construction contributed 1% to this growth, while prior-year property sales accounted for an additional

2.2%.

Sales tax performance during the fiscal year reflected a nuanced mix of structural and economic factors. The City’s 1% Bradley-Burns sales tax declined by approximately 2.5%, driven largely by reduced consumer activity in general merchandise and discretionary goods, as well as a change in reporting practices by a major online retailer that shifted point-of-sale attribution away from the City despite the continued op eration of its local facilities. By contrast, the City’s voter- approved district transactions and use tax (M easure T) increased by 0.7%, demonstrating continued stability in the broader tax base and underscoring the resilience of local spending even amid softening economic conditions. Taken together, these dynamics resulted in a modest net contraction in total sale s tax revenue. Nevertheless, th e City’s underlying economic fundamentals remain sound, supported by ongoing development activity, diversification within key commercial sectors, and a steadily expanding property tax base.

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The City of Redlands’ economy is based largely in the service and trade sector s (health care, retail trade, logistics, technology, and education). The region has a varied manufacturing and industrial base that has added to the relative stability of the unemployment rate over the years.

Redlands’ resident workforce has remained co nsistently stable, with unemployment rates moving predictably through economic cycles. In recent years, unemployment has ranged from a low of 2.9% in 2021 to a peak of 7.4% during the 2020 pandemic, reflecting a resilient and consistently employed population.

The City’s economic base is characterized by a balanced mix of industries, including higher education, software developmen t, healthcare, light manufacturing, logistics and distribution, and financial and insurance services. Leading employers in Redlands and the surrounding area include the Redlands Unified School District, Es ri (Environmental System s Research Institute), Redlands Community Hospital, Amazon Fulfillment Center, Beaver Medical Group, the City of Redlands, the University of Redlands, the Burlington Coat Factory Distribution Center, and Loma Linda University Behavioral Medical Center, underscoring the region’s economic diversity and employment stability.

The City monitors a range of economic indica tors throughout the fiscal year to evaluate conditions affecting its financial position and to identify emerging trends and patterns.

Unemployment Rate – The City’s unemployment rate has remained relatively stable over the past decade, averaging near pre-pandemic lows with only brief periods of volatility. Following a s p i k e t o 7 . 4 % i n 2 0 2 0 d u e t o w i d e s p r e a d economic shutdowns, unemployment quickly rebounded to 2.9% in 2021, demonstrating a strong and resilie nt local labor market. The rate temporarily rose to 5.5% in 2022 as labor force participation ou tpaced available job openings during the post-pandemic adjustment period, befo re improving to 3.6% in 2023 and leveling at

3.8% in 2024.

This slight uptick in 2024 reflects broader stat e and national trends, where cooling consumer demand and higher borrowing costs have moderated hiring in interest-sensitive sectors such as construction, warehousing, and retail trade. However, the loca l economy continues to benefit from steady employment in healthcare, educatio n, and professional services, industries that remain key drivers of job stability in the Inland Empire. Redlands’ diverse employment base and its position within a growing regional corridor have helped maintain a healthy balance between workforce expansion and job creation, underscoring the City’s overall economic resilience amid shifting national conditions.

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Assessed Value – The City’s total assessed property value continued its upward trajectory in FY 2025, increasing by 8.1 percent over the prior fi scal year to reach $14.22 billion. This follows a record 9.1 percent increase in FY 2024, markin g two consecutive years of robust growth and reflecting both the strength and resilience of the local real estate market. Growth in assessed valuation was driven by a combination of fact ors, including the completion of several new residential and commercial developm ents, continued turnover in ex isting properties at market values exceeding prior assessments, and the app lication of the standard 2 percent Consumer Price Index adjustment permitted under California property tax law.

The sustained rise in property values highlight s the continued attractive ness of Redlands as a place to live, work, and invest. Despite higher borrowing costs and a co oling statewide housing market, demand for well-located residential a nd commercial properties within the Inland Empire has remained strong, supported by st eady in-migration, expanding logistics and healthcare sectors, and public investments in infrastructure and community amenities. These conditions have helped maintain upward moment um in assessed values, providing a stable foundation for local revenues and reinforcing the City’s long-term fiscal capacity.

Housing Market – The City’s 2024–25 net taxabl e assessed value increased by $1.06 billion, or roughly 8.06%, consistent with the strong gains observed in the prior year. Residential property values increased 6.1%, contributing nearly half of all assessed value growth. This increase was driven by both the Proposition 13 inflation fa ctor (2%) and prior-year ownership transfers, which added $289.5 million, representing 2.2% of the total growth, slightly above long-term patterns. Redlands’ housing market remained resilient through FY 2024 despite elevated mortgage rates and constrained inventory across the region. Median single-family home prices plateaued year-to-date in 2024, showing a 0% change compared to 2023, following a 3.45% increase in calendar year 2023. Limited supply co ntinues to support pricing, and current values remain elevated, with the median single-family home priced at approximately $600,000 towards the end of the valuation year (2024).

Commercial, industrial, and multifamily sector s also demonstrated strength. Industrial valuations grew by 5.6%, buoyed by significant reinvestment and property transfers at major logistics and warehouse sites. Mu ltifamily assets posted large reassessment increases due to recent transactions and completi on of new units, including substantial valuation growth at The Venue at Orange Apartments and Aspire Redlands Apartmen ts. Commercial properties increased by 5.6%, reflecting ongoing demand for retail, service, and mixed-use locations.

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Vacant land experienced notable appreciation, in creasing 17%, driven by subdivision activity and the transition of development parcels toward their permanent use categories. The City also recorded continued growth in unsecured property values, which increased 8.3% following substantial business personal property report ing from new and expanding commercial and manufacturing operations.

Regional and national economic conditions conti nue to shape the City’s outlook. While rising interest rates may temper the pace of future home sales and associated reassessment activity, Redlands’ real estate market remains a significant contributor to its fiscal strength. Continued investment in multifamily housing, industrial fa cilities, and mixed-use corridors, combined with steady residential demand, positions the City to remain a strong participant in the Inland Empire’s long-term housing and economic growth.

In residential construction, the City continues to advance its housing stock and long-term growth objectives through both project deliver y and proactive land use planning. In June 2025, the City Council adopted the Housing Element Re zoning Ordinance, implementing Program 1.1- 1 of the certified 2021–2029 Housing Element. This action reclassified 26 parcels across the community to medium- and high-density residential designations, increasing zoning capacity by approximately 2,400 units and ensuring consiste ncy between the General Plan and East Valley Corridor Specific Plan. The ordinance fulfills state mandates under the Regional Housing Needs Allocation (RHNA) process and positions Redlands to accommodate a balanced distribution of new housing near employment centers, transportation corridors, and public amenities.

In FY 2025, the Heritage Specific Plan was fu lly completed, deliverin g 207 single-family homes across 37 acres in north Redla nds. Developed by Le nnar Homes, the neighborhood features a cohesive design of one- and two- story residences in architectural styles inspired by Redlands’ traditional and craftsman character. The comm unity integrates landscaped open spaces and pedestrian connectivity, contributing to neig hborhood livability and design quality. Market pricing generally began in the mid-$600,000s, reflec ting continued strength in the local housing market and steady demand for new housing in the Inland Empire.

Together, these efforts demonstrate the City’s continued progress in expanding housing opportunities and sustaining long-term fiscal growth. Through deliberate planning and targeted residential investment, Redlands is meeting regi onal housing goals while preserving community character and enhancing the quality of life for its residents.

In terms of commercial growth, the City experienced a year of significant commercial expansion and reinvestment, with several high-profile pr ojects completed in the Downtown and transit- adjacent areas. These developments collectively advance Redlands’ vision for a vibrant, mixed- use environment that preserves the community’s architectural heritage while accommodating new dining, retail, and employment opportunities.

Completed projects in FY 2025 include:
• Redlands Food Hall – Mutual Orange Dist ributors (MOD) Packinghouse, 330 N. Third Street – Adaptive reuse of the historic MOD Packinghouse into a multi-tenant food hall and retail destination, featuring a new 5,760-square-foot exterior boardwalk and outdoor dining patio.
• Redlands Railway District, 333 Orange St reet – Construction of two commercial buildings totaling 11,807 square feet for retail and restaurant uses, expanding the City’s rail-adjacent mixed-use core.
• Redlands Railway District, 347 Orange Street – Development of two additional retail buildings totaling 6,951 square feet on the we st side of the historic Santa Fe Depot, complementing adjacent restoration and pedestrian improvements.

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• Third Street Retail Building, 31 W. Stuart Avenue – A three-story, 36,825-square-foot mixed-use building incorporating retail, offi ce, and restaurant space with rooftop terraces and pedestrian connections.
• Downtown Parking Structure, W. Stuart Ave nue at Third Street – A four-level, 385-stall structure (including 200 public spaces) with in tegrated ground-floor retail totaling 5,370 square feet and electric vehicle charging stations, supporting downtown commerce and visitor access.
• In-N-Out Burger, southwest corner of W. Lugonia Avenue and Citrus Plaza Drive – A new 3,860-square-foot restaurant with drive-thro ugh service, expanding regional dining options.
• Jack in the Box, 1248 N. Wabash Avenue – Construction of a new 3,000-square-foot quick-service restaurant with indoor se ating and a drive-through lane, enhancing convenience-oriented commercial uses along the corridor.

Together, these projects represent continue d momentum in Redlands’ downtown and key commercial corridors, combining adaptive reuse with new infill development. The City’s ongoing investment in parking, walkability, and infrastructure improvements supports sustainable commercial growth, positioning Redl ands for continued economic vitality and long- term fiscal stability.

Other notable business openings in fiscal year 2025 include the following:

 Shake Shack, a New York City burger chain, opened its second Inland Empire restaurant with the opening of its Redlands location in November 2025.  Klatch Coffee opened in September 2024. Loca ted at 560 West Stuart Ave, Klatch is a family-owned and run coffee company based in Southern California and distributed worldwide.
 1LoveIE, a clothing line founded in the Inland Empire, opened in September 2024. 1LoveIE is a lifestyle apparel brand that of fers hats, t-shirts, hoodies and accessories celebrating the Inland Empire and promoting a message of “peace, love and unity”.  Beyond Biryani, a new Indian food restaurant , opened in November 2024 and offers an expansive menu that bridges both Northern and Southern Indian cuisines—featuring specialty biryanis, regional staples like ma ndi, and fresh-local produce in a setting seldom found in the Inland Empire.

Long-term financial outlook/planning. As the national economy settles into a slower but more sustainable growth trajectory, the City’s long-t erm fiscal outlook reflects both caution and confidence. Economic forecasts from UCLA Anderson, Beacon Economics, and HdL suggest that the coming years will be defined less by rapid ex pansion and more by steady adaptation to new structural realities: elevated interest rates, moderated inflation, a nd rebalanced consumer behavior. Within this environment, the City ’s emphasis on prudent financial management, infrastructure investment, and economic diversification remains essential to sustaining fiscal stability.

Beacon Economics projects continued, though mo derated, growth in regional employment and consumer spending through 2026, supported by population and wage gains in the Inland Empire. HdL’s statewide sales and property tax trends confirm this outlook: sales tax growth has decelerated, reflecting sh ifts in consumer demand and th e restructuring of major online retail operations, yet property tax revenues remain resilient due to sustained development and rising assessed values. The City’s balanced reve nue composition, anchored by property tax, sales and use tax (including Measure T), and other taxes, positions it to weather cyclical variations while maintaining service levels and capital investment capacity.

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At the same time, persistent cost pressures from inflation and labor market tightness will require continued discipline in expenditure gr owth. Higher borrowin g costs underscore the importance of timing capital proj ects strategically, aligning long-term infrastructure needs with fiscal capacity and external funding opportunities. Maintaining adequate reserves and multiyear forecasting practices will remain critical tools for absorbing volatility and safeguarding operational continuity.

Looking ahead, Redlands’ strengths lie in its ca pacity to adapt. The City’s commitment to technology modernizatio n, public safety investment, and strategic land-use planning will sustain competitiveness and enhance operationa l efficiency. Regional economic fundamentals like diverse industry sectors, strong educationa l institutions, and steady housing demand will support a positive long-term outlook, even amid slower statewide growth.

As part of the City’s strategic resource and budget planning fr amework, management prepares and presents a multi-year financial projection to the City Council. In accordance with the City Manager’s direction, a six-year financial outl ook is developed during each budget cycle to support long-range planning and policy development. This forecast serves as a key tool for evaluating the City’s capacity to sustain pr oposed programs, meet ongoing operating and maintenance needs, and support capital investment s, including the future operating impacts of planned capital improvement projects.

The six-year projection provides a forward-looking view of anticipated fiscal conditions, enabling informed decisions regarding the alloca tion and management of financial resources.

The purpose of this long-range fiscal planning is to identify emerging trends and potential challenges early, allowing the City to adjust course proactively and implement strategies that preserve long-term financial stability and solvency.

Major Capital Investments on the Horizon. The City is preparing for several significant capital projects that will shape Redlands’ public service infrastructure in the years ahead. Foremost among these is the development of a modern Po lice Department Safety Hall to replace the City’s fragmented and outdated police facilities. After acquiring 1625 We st Redlands Boulevard for this purpose in 2022, the City has advanced the project through design, with construction anticipated to begin in mid-2026 and completion targeted for late 2028. The $80 - $90 million investment, supported by impact fees and de dicated debt-service planning, will centralize operations, address longstanding facility defici encies, and enhance the long-term sustainability of public safety services.

The City is also moving forward with plans to co nvert the Citrus Center at 300 East State Street into a new, consolidated City Hall. This project will modernize civic facilities, improve public access, and enhance operational efficiency by bringing key municipal functions under one roof.

To manage this complex undertaking, the City is employing the Construction Management/Multi-Prime delivery method, which has already proven effective in the Safety Hall project. This approach suppo rts stronger cost control, reduc ed change orders, and a more predictable project schedule as the City designs a civic center that meets long-term service needs.

Additionally, the City’s long-range capital prog ram includes the reconstruction of Fire Station No. 264, an essential project that will replace aging infrastructure and strengthen emergency response capabilities. Design and engineering are expected to begin in an upcoming budget cycle, positioning the facility fo r construction later in the deca de. While smaller in scale than the City Hall and Safety Hall proj ects, the replacement of Station 264 is a key component of the City’s commitment to maintaining reliable, modern, and resilient public safety facilities.

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The City’s long-term fiscal planning has ensured that these major facilities can be approached from a position of strength. The graph below illustrates the General Fund’s capacity to prioritize spending and accumulate resources for future capital needs. In FY 2025, the City’s General Fund reserves dedicated to capital projects incl uded $994,000 for downtown parking improvements, approximately $5.8 million across parks, equipment, facilities, sidewalks, and building capital, $29.1 million set aside for future municipal fa cilities, and $1 million for unfunded mandates.

The ending unassigned fund balance rose by a pproximately $2.9 million from the prior year, and by roughly $10.1 million since FY 2023, growing from $53.3 million in FY 2023 to $63.4 million in FY 2025. These reserves, combined with disciplined budgeting and multi-year financial forecasting, position the City to invest wisely in essential public facilities while maintaining long- term fiscal stability. Further analysis of th e General Fund is provided in Management’s Discussion and Analysis, which follows the independent auditor’s report.

Relevant Financial Policies

The City has adopted a set of financial policies based on best management practices and GFOA standards. These policies direct the admini stration of the budget, accounting practices, purchasing, debt, capital financing, investments, and capital assets.

In June 2018, the City Counc il adopted Resolution No. 7983 establishing the City’s Debt Management Policy. Among other things, this policy establishes guidelines for the use of various categories of debt; creates procedures and policies that minimize the City’s debt service and issuance costs; and provides for full and comp lete financial disclosure and reporting. The Policy was developed to improve the quality of decision-making, provide justification for how debt issuance is structured, identify goals, a nd to validate the City’s commitment to strategic long-term financial planning. Maintaining complia nce with the Policy should demonstrate to rating agencies and to capital markets that the Ci ty is well managed and will be able to meet its financial obligations on a timely basis.

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The City formally transitioned to a two-year (biennial) budget beginning with the FY 2023–24 cycle, establishing a more strategic, long-range approach to resource planning. As described in the City Manager’s Budget Message, the biennial framework supports multi-year financial and operational planning, aligns budg et development with the City’s Strategic Plan and community priorities, and provides a clea rer lens for evaluating ongoin g service obligations, deferred maintenance needs, and major capital investment s. By requiring depart ments to prepare both a minimal operating budget and prioritized suppl emental requests across two fiscal years, the biennial process strengthens fiscal discipline, enhances long-term forecasting, and enables earlier identification of structural challeng es. This multi-year appr oach also improves coordination of complex, multi-phase projects, su ch as public safety fa cilities, infrastructure rehabilitation, and sustainability initiatives, by en suring that financial capacity is evaluated over a longer planning horizon.

Awards and Acknowledgements

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement of Excellence in Finan cial Reporting to the City of Redlands for its Annual Comprehensive Financial Report for the Fis cal Year Ended June 30, 2024. This was the twenty second consecutive year that the governme nt has achieved this prestigious award. In order to be awarded a Certificate of Achiev ement, a government must publish an easily readable and efficiently organi zed annual comprehensive financia l report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current annual comprehensive financial report continues to meet th e Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

The preparation and development of this repo rt would not have been possible without the year-round work of the Finance staf f and their special efforts, working in conjunction with the City’s independent auditors, to produce this re port. Special recognition is due to Assistant Finance Director, James Garland; Finance Manage r, Marie Datuin; Principal Accountant Denise Camarillo, Senior Accountants Jannette Mendoza, Justine Wickman and Matthew Gonzales, and Budget Analyst, Miriam Valtierra for their efforts in overseeing the compilation of the accounting data and interfacing with our auditors; and to the accounting firm of The Pun Group, LLP, and to the City Manager’s Office. Cr edit is also due to City Manager Charles M.

Duggan, Jr., Assistant City Manager Janice Mc Connell, and the Mayor and the City Council for their consistent support for maintaining the highest standards of professionalism in the management of the City’s finances.

Respectfully submitted,

Danielle Garcia
Management Services / Finance Director
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City of Redlands
Principal Officers
as of June 30, 2025
City Council (Elected) Mario Saucedo, Mayor
Marc Shaw, Mayor Pro Tem
Denise Davis, Councilmember
Eddie Tejeda, Councilmember
Paul T. Barich, Councilmember
City Manager
Assistant City Manager
Assistant City Manager
City Clerk (Elected)
City Treasurer (Elected)
City Attorney
Development Services Director
Fire Chief
Library Director
Management Services/Finance Director
Municipal Utilities & Engineering Director
Facilities & Community Services Director
Police Chief
Charles M. Duggan, Jr.

Janice McConnell
Christopher Boatman
Jeanne Donaldson
Phillip Doolittle
Yvette Abich Garcia
Brian Desatnik
Rich Sessler
Donald McCue
Danielle Garcia
John Harris
Tabitha Crocker
Rachel Tolber
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LEGEND
Elected:

Advisory to
City Council:

Advisory to
Appointed
City of Redlands, CA
Organizational Chart
Approved By:

Charles M. Duggan, Jr.

City Manager
Effective July 1, 2024
POLICE

MANAGEMENT

SERVICES

MUNICIPAL

UTILITIES &

ENGINEERING
FIRE
CITY
CLERK
CITY

TREASURER

DEVELOPMENT

SERVICES

FACILITIES &

COMMUNITY

SERVICES
HUMAN

RESOURCES

OFFICE OF THE
CITY

MANAGER

ASSISTANT CITY

MANAGER

ASSISTANT CITY

MANAGER
Independent
Auditors
Boards,
Commissions, and
Committees*

CITY MANAGER LIBRARY
CITY

COUNCIL

CITY ATTORNEY
xvi
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Redlands
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2024
Executive Director/CEO
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6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707

INDEPENDENT AUDITOR’S REPORT

To the Honorable Mayor and Members
of the City Council of the City of Redlands
Redlands, California

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Redlands, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the basic financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, business-type activiti es, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting prin ciples generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to fi nancial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under tho se standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements secti on of our report. We are requi red to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of a Matter

Change in Accounting Principle

As discussed in Note 19 to the financial statements, the City implemented Governmental Accounting Standards Board (“GASB”) Statement No. 101, Compensated Absences, effective July 1, 2024. The implementation of this standard required the City to change its method of accounting for compensated absences and resu lted in a restatement of beginning net position as of July 1, 2024. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

Management is responsible for the prep aration and fair presentation of the fi nancial statements in accordance with accounting principles generally accepted in the United Stat es of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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To the Honorable Mayor and Members
of the City Council of the City of Redlands
Redlands, California

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Redlands City CouncilFebruary 17, 2026

Redlands City Council
February 17, 2026