District Name Annexation L4-I Annexation L4-J Annexation L4-K Annexation L4-L Annexation L4-M Annexation L4-N Annexation L4-O Annexation L4-P Annexation L4-Q Annexation L4-R Annexation L4-S Annexation L4-T Annexation L4-U Annexation L4-V Annexation L4-W Description CRA 608 CUP 519 CUP 516 CUP 518 CUP 522 CUP 521 CRA 605 PM 12087 MS 185 CUP 278 CUP 405 CRA 354 CRA 346 CRA 607 Tract 12461 Parcel Numbers APN 169-142-11 APN 171-331-04 APN 292-166-11 APN 169-053-12 APN 172-031-49 APN 292-034-16 APN 169-182-02, -03, -04 APN 171-261-01 APN 176-044-14 & 15 APN 171-171-34 APN 169-343-07 APN 292-182-30 & 31 APN 292-061-25 APN 292-156-21 APN 1212-191-60 THRU 79 Maintenance
Contract
Maintenance $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 550 $ Repair Beyond
Contract $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Water & Electric - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 630 $ Field Inspections $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Supplies $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - SUBTOTAL $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,180 Incidental
Expenses
Engineering and
Admin. $ 6 6 $ 6 $ 6 $ 6 $ 6 $ 18 $ - $ 6 $ 18 $ 6 $ 12 $ - $ 6 $ 88 $ SUBTOTAL $ 6 $ 6 $ 6 $ 6 $ 6 $ 6 $ 18 $ - $ 6 $ 18 $ 6 $ 12 $ - $ 6 $ 88 TOTAL
MAINTENANC
E &
INCIDENTAL
COSTS $ 6 6 $ 6 $ 6 $ 6 $ 6 $ 18 $ - $ 6 $ 18 $ 6 $ 12 $ - $ 6 $ 1,268 $ Levy
Adjustments
Fund Collection $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (1,148) General Fund
Contribution $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
BALANCE TO
LEVY $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (1,148) $ Breakdown
Non-Adjacent
Lots 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Adjacent Lots
(10%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Adjacent Lots
(20%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Per Lot City
Overhead 1 1 1 1 1 1 3 0 1 3 1 2 0 1 20
TOTAL LOTS 1 1 1 1 1 1 3 0 1 3 1 2 0 1 20
Non-Adjacent
Rate per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ 1.00 $ - $ - $ - $ - $ Adjacent Rate
(10%) per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Adjacent Rate
(20%) per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Per Lot City
Overhead $ 6.00 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ TOTAL
ASSESSMENT
ALLOWABLE $ 6.00 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 18.00 $ - $ 6.00 $ 18.00 $ 6.00 $ 12.00 $ - $ 6.00 $ 120.00 $ Total # of
Parcels 1 1 1 1 1 1 3 1 2 3 1 2 1 1 20
Total Parcels
Levied 1 1 1 1 1 1 3 0 1 3 1 2 0 1 20
APPENDIX A
COST TABLE
ENGINEER'S REPORT
LANDSCAPE MAINTENANCE DISTRICT NO. 1, FY 2026-2027
District Name Annexation L4-X Annexation L5-A Annexation L5-B Annexation L5-C Annexation L5-D Annexation L5-E Annexation L5-F Annexation L5-G Annexation L5-H Annexation L6-A Annexation L6-B Annexation L6-C Annexation L6-D Annexation L6-E Annexation L6-F Description PM 12022 MS 188 MS 189 Tract 14556 CRA 611 MS 196 MS 195 CRA 615 CRA 536 CRA 517 CRA 628 CRA 624 CRA 305 Tract 13575 CUP 550 Parcel Numbers APN 169-212-17
THRU 27
APN 292-153-24
THRU 27
APN 292-441-11
THRU 15
APN 176-441-18
THRU 27 0174-241-31 APN 292-331-15 & 16
APN 294-091-47
& 48 APN 292-157-31 APN 292-381-17 APN 169-321-01 & 02 APN 292-310-07 APN 169-281-39 APN 167-271-61 APN 1212-201-01 THRU 27 APN 292-165-15 Maintenance
Contract
Maintenance $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 550 $ - $ Repair Beyond
Contract $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Water & Electric - $ - $ - $ 180 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 925 $ - $ Field Inspections $ - $ - $ - $ 350 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Supplies $ - $ - $ - $ 200 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - SUBTOTAL $ - $ - $ - $ 730 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 1,475 $ - Incidental
Expenses
Engineering and
Admin. $ 24 66 $ 30 $ 85 $ 12 $ 12 $ 12 $ 6 $ - $ 12 $ 6 $ 6 $ 6 $ 119 $ 6 $ SUBTOTAL $ 66 $ 24 $ 30 $ 85 $ 12 $ 12 $ 12 $ 6 $ - $ 12 $ 6 $ 6 $ 6 $ 119 $ 6 TOTAL
MAINTENANC
E &
INCIDENTAL
COSTS $ 24 66 $ 30 $ 815 $ 12 $ 12 $ 12 $ 6 $ - $ 12 $ 6 $ 6 $ 6 $ 1,594 $ 6 $ Levy
Adjustments
Fund Collection $ - $ - $ - $ 0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (1,432) $ - General Fund
Contribution $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
BALANCE TO
LEVY $ - - $ - $ 0 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ (1,432) $ - $ Breakdown
Non-Adjacent
Lots 0 0 0 6 0 0 0 0 0 0 0 0 0 0 0
Adjacent Lots
(10%) 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0
Adjacent Lots
(20%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Per Lot City
Overhead 11 4 5 0 2 2 2 1 0 2 1 1 1 27 1
TOTAL LOTS 11 4 5 10 2 2 2 1 0 2 1 1 1 27 1
Non-Adjacent
Rate per Lot $ - - $ - $ 78.37 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Adjacent Rate
(10%) per Lot $ - - $ - $ 86.20 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Adjacent Rate
(20%) per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Per Lot City
Overhead $ 6.00 6.00 $ 6.00 $ - $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ TOTAL
ASSESSMENT
ALLOWABLE $ 24.00 66.00 $ 30.00 $ 815.02 $ 12.00 $ 12.00 $ 12.00 $ 6.00 $ - $ 12.00 $ 6.00 $ 6.00 $ 6.00 $ 162.00 $ 6.00 $ Total # of
Parcels 11 4 5 10 2 2 2 1 1 2 1 1 1 27 1
Total Parcels
Levied 11 4 5 10 2 2 2 1 0 2 1 1 1 27 1
District Name Annexation L6-G Annexation L6-H Annexation L6-I Annexation L6-J Annexation L7-A Annexation L7-B Annexation L7-C Annexation L7-D Annexation L7-E Annexation L7-F Annexation L7-G Annexation L7-H Annexation L7-I Annexation L8-A Annexation L8-B Description CRA 623 CUP 542 Tract 16310 MS 201 MS 213 MS 211 CUP 559 CRA 636 CRA 546 CRA 641 CRA 640 CUP 562 CUP 548 CRA 637 Tract 10179 Parcel Numbers APN 292-381-08 APN 292-064-13,
17, 21 THRU 27
APN 173-052-31
THRU 42 & APN
173-062-01
THRU 39
APN 171-341-33 APN 172-301-14
THRU 17
APN 292-201-36,
37, 38 changed to
292-201-37, -39,
and -40
APN 171-202-30 APN 169-043-14 APN 292-192-11 APN 292-310-36 APN 169-301-08, 10, 11 APN 292-064-17 APN 169-313-16 APN 169-281-23
APN 167-861-37
THRU 54, APN
167-851-39 THRU
56 Maintenance
Contract
Maintenance $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Repair Beyond
Contract $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Water & Electric - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Field Inspections $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Supplies $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - SUBTOTAL $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Incidental
Expenses
Engineering and
Admin. $ 54 6 $ 300 $ 6 $ 24 $ 18 $ 6 $ 6 $ 6 $ 6 $ 18 $ - $ 6 $ - $ 216 $ SUBTOTAL $ 6 $ 54 $ 300 $ 6 $ 24 $ 18 $ 6 $ 6 $ 6 $ 6 $ 18 $ - $ 6 $ - $ 216 TOTAL
MAINTENANC
E &
INCIDENTAL
COSTS $ 54 6 $ 300 $ 6 $ 24 $ 18 $ 6 $ 6 $ 6 $ 6 $ 18 $ - $ 6 $ - $ 216 $ Levy
Adjustments
Fund Collection $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - General Fund
Contribution $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
BALANCE TO
LEVY $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Breakdown
Non-Adjacent
Lots 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Adjacent Lots
(10%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Adjacent Lots
(20%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Per Lot City
Overhead 1 9 50 1 4 3 1 1 1 1 3 0 1 1 36
TOTAL LOTS 1 9 50 1 4 3 1 1 1 1 3 0 1 1 36
Non-Adjacent
Rate per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Adjacent Rate
(10%) per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Adjacent Rate
(20%) per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Per Lot City
Overhead $ 6.00 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ - $ 6.00 $ TOTAL
ASSESSMENT
ALLOWABLE $ 54.00 6.00 $ 300.00 $ 6.00 $ 24.00 $ 18.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 18.00 $ - $ 6.00 $ - $ 216.00 $ Total # of
Parcels 1 9 51 1 4 3 1 1 1 1 3 1 1 1 36
Total Parcels
Levied 1 9 50 1 4 3 1 1 1 1 3 0 1 0 36
APPENDIX A
COST TABLE
ENGINEER'S REPORT
LANDSCAPE MAINTENANCE DISTRICT NO. 1, FY 2026-2027
District Name Annexation L8-C Annexation L8-D Annexation L8-E Annexation L9-A Annexation L9-B Annexation L10-A Annexation L10-B Annexation L10-C Annexation L10-D Annexation L10-E Annexation L10-F Annexation L10-G Annexation L10-H Annexation L11-A Description CUP 574 CRA 642 MS 216 B CRA 648 CUP 581 CRA 658 CRA 639 CRA 652 CUP 602 CUP 590 CUP 577 CUP 541 Tract 14790-1 CRA 664 Parcel Numbers APN 171-202-33 APN 292-154-12 APN 174-021-41, 42 APN 292-157-16 APN171-203-13 APN 292-202-17 & 18
APN 292-152-39,
32 APN 292-063-45 APN 292-063-48, -52, -53 APN 171-332-30 APN 1212-041-01 APN 174-261-15 Multiple APNs APN 292-341-24 & 25 Maintenance
Contract
Maintenance $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Repair Beyond
Contract $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Water & Electric - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Field Inspections $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Supplies $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - SUBTOTAL $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Incidental
Expenses
Engineering and
Admin. $ 6 6 $ 12 $ 6 $ 6 $ 12 $ 6 $ 6 $ - $ 6 $ 6 $ 6 $ 240 $ 12 $ SUBTOTAL $ 6 $ 6 $ 12 $ 6 $ 6 $ 12 $ 6 $ 6 $ - $ 6 $ 6 $ 6 $ 240 $ 12 TOTAL
MAINTENANC
E &
INCIDENTAL
COSTS $ 6 6 $ 12 $ 6 $ 6 $ 12 $ 6 $ 6 $ - $ 6 $ 6 $ 6 $ 240 $ 12 $ Levy
Adjustments
Fund Collection $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - General Fund
Contribution $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
BALANCE TO
LEVY $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Breakdown
Non-Adjacent
Lots 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Adjacent Lots
(10%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Adjacent Lots
(20%) 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Per Lot City
Overhead 1 1 2 1 1 2 1 1 0 1 1 1 40 2
TOTAL LOTS 1 1 2 1 1 2 1 1 0 1 1 1 40 2
Non-Adjacent
Rate per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Adjacent Rate
(10%) per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Adjacent Rate
(20%) per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Per Lot City
Overhead $ 6.00 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ - $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ TOTAL
ASSESSMENT
ALLOWABLE $ 6.00 6.00 $ 12.00 $ 6.00 $ 6.00 $ 12.00 $ 6.00 $ 6.00 $ - $ 6.00 $ 6.00 $ 6.00 $ 240.00 $ 12.00 $ Total # of
Parcels 1 1 2 1 1 2 2 1 1 1 1 1 40 2
Total Parcels
Levied 1 1 2 1 1 2 1 1 0 1 1 1 40 2
District Name Annexation L11-B Annexation L11-C Annexation L12-A Annexation L12-B Annexation L12-C Annexation L12-D Annexation L12-E Annexation L12-F Annexation L12-G Annexation L12-H Annexation L12-I Annexation L12-J Description CRA 666 Tract 11535 Tract 7202 Tract 7202 Tract 7202 Tract 7202 Tract 7202 Tract 15589 CUP 620 CUP 617 CRA 668 CRA 670 Parcel Numbers APN 292-158-15 APN 292-351-08 APN 176-402-09 APN176-402-08 APN 176-402-07 APN 176-402-06 APN 176-402-04 APN 293-421-01 THRU 45 APN 292-251-10 APN292-033-13 APN 292-341-17 APN 292-157-20 Maintenance
Contract
Maintenance $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Repair Beyond
Contract $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Water & Electric - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Field Inspections $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Supplies $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - SUBTOTAL $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Incidental
Expenses
Engineering and
Admin. $ 6 6 $ 6 $ 6 $ 6 $ 6 $ 6 $ 270 $ 6 $ 6 $ 6 $ 6 $ SUBTOTAL $ 6 $ 6 $ 6 $ 6 $ 6 $ 6 $ 6 $ 270 $ 6 $ 6 $ 6 $ 6 TOTAL
MAINTENANC
E &
INCIDENTAL
COSTS $ 6 6 $ 6 $ 6 $ 6 $ 6 $ 6 $ 270 $ 6 $ 6 $ 6 $ 6 $ Levy
Adjustments
Fund Collection $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - General Fund
Contribution $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
BALANCE TO
LEVY $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
Breakdown
Non-Adjacent
Lots 0 0 0 0 0 0 0 0 0 0 0 0
Adjacent Lots
(10%) 0 0 0 0 0 0 0 0 0 0 0 0
Adjacent Lots
(20%) 0 0 0 0 0 0 0 0 0 0 0 0
Per Lot City
Overhead 1 1 1 1 1 1 1 45 1 1 1 1
TOTAL LOTS 1 1 1 1 1 1 1 45 1 1 1 1
Non-Adjacent
Rate per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Adjacent Rate
(10%) per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Adjacent Rate
(20%) per Lot $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ Per Lot City
Overhead $ 6.00 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ TOTAL
ASSESSMENT
ALLOWABLE $ 6.00 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 270.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ Total # of
Parcels 1 1 1 1 1 1 1 45 1 1 1 1
Total Parcels
Levied 1 1 1 1 1 1 1 45 1 1 1 1
APPENDIX A
COST TABLE
ENGINEER'S REPORT
LANDSCAPE MAINTENANCE DISTRICT NO. 1, FY 2026-2027
District Name Annexation L12-K Annexation L12-L Annexation L12-M TOTALS Description MS 235 MS 221 CRA 661
Parcel Numbers Multiple APNs APN 174-281-33,
-34, -35, -37 APN 171-161-18
Maintenance
Contract
Maintenance $ - - $ - $ $ 11,273
Repair Beyond
Contract $ - - $ - $ $ -
Water & Electric - $ - $ - $ $ 12,170
Field Inspections $ - $ - $ - $ 2,600
Supplies $ - $ - $ - $ 450
SUBTOTAL $ - $ - $ - $ 26,493
Incidental
Expenses
Engineering and
Admin. $ 24 - $ 6 $ $ 5,155
SUBTOTAL $ - $ 24 $ 6 $ 5,155
TOTAL
MAINTENANC
E &
INCIDENTAL
COSTS $ 24 - $ 6 $ 31,648 $
Levy
Adjustments
Fund Collection $ - $ - $ - $ (2,864)
General Fund
Contribution $ - - $ - $ $ -
BALANCE TO
LEVY $ - - $ - $ (2,864) $
Breakdown
Non-Adjacent
Lots 0 0 0 200
Adjacent Lots
(10%) 0 0 0 27
Adjacent Lots
(20%) 0 0 0 6
Per Lot City
Overhead 0 4 1 345
TOTAL LOTS 0 4 1
Non-Adjacent
Rate per Lot $ - - $ - $
Adjacent Rate
(10%) per Lot $ - - $ - $
Adjacent Rate
(20%) per Lot $ -
Per Lot City
Overhead $ 6.00 6.00 $ 6.00 $
TOTAL
ASSESSMENT
ALLOWABLE $ 24.00 - $ 6.00 $ 28,784.34 $
Total # of
Parcels 21 4 1 615
Total Parcels
Levied 0 4 1 574
APPENDIX B
DISTRICT DIAGRAM
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF REDLANDS
LANDSCAPE MAINTENANCE DISTRICT NO. 1
APPENDIX B - ASSESSMENT DIAGRAMS
2 Abbreviations
APN – Assessor’s Parcel Number
CRA – Commission Review and Approval
CUP – Conditional Use Permit
MS – Minor Subdivision
PM – Parcel Map
TM – Tract Map
General comments
Each annexation has its own diagram.
North is up unless notated otherwise.
The assessor’s parcel numbers are shown as a 9 digit number.
A dark red line delineates the boundary of each annexation.
A shaded background is typically used to indicate parcels within the Landscape Maintenance District.
Annexation #s
Original District A thru C
L1-A thru L1-B
L2-A
L3-A
L4-A thru L4-X
L5-A thru L5-H
L6-A thru L6-J
L7-A thru L7-I
L8-A thru L8-E
L9-A thru L9-B
L10-A thru L10-H
L11-A thru L11-C
L12-A thru L12-M
3 Initial District – A
Tract Map 13282
4 Initial District - B
Tract 13434
APN 167-802-01 thru 08, APN 167-803-01 thru -09, APN 167-804-01 thru -19, APN 167-823-01 thru 10, APN 167-824-01 thru -32,
5 Initial District - C
Tract Map 13496
APN 0175-491-01 thru -09
6 Annexation L1-A
Tract 13745
APN 1212-141-01 thru -38
7 Annexation L1-B
Tract 13765
APN 1212-081-54 thru -62 and APN 1212-141-39 and -54
8 Annexation L2-A
Tract 13947
9 Annexation L3-A
Parcel Map 11917
10 Annexation L4-A
Parcel Map 12450
11 Annexation L4-B
Parcel Map 11755
12 Annexation L4-C
CUP 617
13 Annexation L4-D
Parcel Map 12300
14 Annexation L4-E
CUP 382
15 Annexation L4-F
CRA 606
16 Annexation L4-G
CRA 486
17 Annexation L4-H
CUP 253
18 Annexation L4-I
CRA 808
19 Annexation L4-J
CUP 519
20 Annexation L4-K
CUP 516
21 Annexation L4-L
CUP 518
22 Annexation L4-M
CUP 522
23 Annexation L4-N
CUP 521
APN changed from
029203416 to 029203439
24 25
Annexation L4-O
CRA 805
26 Annexation L4-P
Parcel Map 12087
27 Annexation L4-Q
MS 185, Parcel Map 11904
28 Annexation L4-R
CUP 278
29 Annexation L4-S
CUP 405
30 Annexation L4-T
CRA 354
31 Annexation L4-U
CRA 346
32 Annexation L4-V
CRA 607
33 Annexation L4-W
Tract Map 12461
34 Annexation L4-X
Parcel Map 12022
35 Annexation L5-A
Parcel Map 12330
36 Annexation L5-B
Parcel Map 12940
37 Annexation L5-C
Tract 14556
38 Annexation L5-D
CRA 611
39 Annexation L5-E
Parcel Map 13261
40 Annexation L5-F
Parcel Map 11189
41 Annexation L5-G
CRA 615
42 Annexation L5-H
CRA 536
43 Annexation L6-A
CRA 517
44 Annexation L6-B
CRA 628
45 Annexation L6-C
CRA 624
46 Annexation L6-D
CRA 305
47 Annexation L6-E
Tract Map 13575
48 Annexation L6-F
CUP 550
49 Annexation L6-G
CRA 623
50 Annexation L6-H
Parcel Map 13542
51 Annexation L6-I
Parcel Map 10749
APN 0173-052-31 thru 42, APN 0173-062-01 thru 38, 39 (road)
52 Annexation L6-J
MS 201
53 Annexation L7-A
MS 213, Parcel Map 13978
54 Annexation L7-B
MS 211
Lot line adjustment shifted the boundary between 0292-201-36 and -38 northerly.
New APNs were assigned by the Assessor. APN 0292-201-36 became -39 and APN 0292-201-38 became -40.
55 Annexation L7-C
CUP 559
56 Annexation L7-D
CRA 696
57 Annexation L7-E
CRA 543
58 Annexation L7-F
CRA 641
59 Annexation L7-G
CRA 640
60 Annexation L7-H
CUP 562
Already included in Annexation L6-N
61 Annexation L7-I
CUP 548
62 Annexation L8-A
CRA 637
63 Annexation L8-B
Tract Map 10179
APN 0167-851-39 thru 56 and APN 0167-861-37 thru 54
64 Annexation L8-C
CUP 574
65 Annexation L8-D
CUP 642
66 Annexation L8-E
Parcel Map 14090
67 Annexation L9-A
CRA 648
68 Annexation L9-B
CUP 581
69 Annexation L10-A
CRA 658
70 Annexation L10-B
CRA 639
71 Annexation L10-C
CRA 652
72 Annexation L10-D
CUP 602
73 Annexation L10-E
CUP 590
74 Annexation L10-F
CUP 577
75 Annexation L10-G
CUP 541
76 Annexation L10-H
Tract Map 14790-1
APN 0176-521-01 thru -13, APN 0176-521-18 thru -23
APN 0176-521-27 thru -32, APN 0176-531-01 thru -03
APN 0176-531-07 thru -09, APN 0176-531-12, -13, and -18 APN 0176-531-20 thru -22, APN 0176-531-24 thru -26
77 Annexation L11-A
CRA 664
78 Annexation L11-B
CRA 666
79 Annexation L11-C
Tract 11535, Lot 36
80 Annexation L12-A, L12-B, L12-C, L12-D and L12-E
Annexation L12-A, APN 0176-402-09
Annexation L12-B, APN 0176-402-08
Annexation L12-C, APN 0176-402-07
Annexation L12-D, APN 0176-402-06
Annexation L12-E, APN 0176-402-04
81 Annexation L12-F
Tract 15589
APN 0293-421-01 thru -45
82 Annexation L12-G
CUP 620
83 Annexation L12-H
CUP 617
84 Annexation L12-I
CRA 668
85 Annexation L12-J
CUP 670
86 Annexation L12-K
MS 235
APN 0170-041-05, 0170-151-28, 0170-161-02, and 1212-431-02 87 Annexation L12-L
MS 221
88 Annexation L12-M
CRA 661
APPENDIX C
RESOLUTIONS
Resolution No. 8769 – Institute proceedings and appointment of engineer Resolution No. 8770 – Preliminary approval of engineer’s report Resolution No. 8771 – Declaring intention to levy assessments Resolution No. 8773 – Confirming assessments
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1 K:\LMD&SLD\2026\Resolutions\Reso 8769 SLD and LMD Appoint Engineer.docx RESOLUTION NO. 8769
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
INSTITUTING PROCEEDINGS FOR THE CONTINUED LEVY OF
ASSESSMENTS, APPOINTING AN ASSESSMENT ENGINEER, AND
ORDERING THE PREPARATION OF AN ENGINEER'S REPORT IN THE MATTER OF STREET LIGHTING DISTRICT NO. 1 AND LANDSCAPE
MAINTENANCE DISTRICT NO. 1
WHEREAS, the City Council of the City of Redlands (this “City Council”) has determined that the public interest, convenience and necessity requires the installation, operation and maintenance of a street lighting system and other facilities as set forth in Section 22525 of the California Streets and Highways Code; and
WHEREAS, it has been determined by the City Council of the City of Redlands (this “City Council”), that the public interest, convenience and necessity requires the maintenance of landscaping as set forth in Section 22525 of the California Streets and Highways Code; and WHEREAS, this City Council has formed Redlands’ Street Lighting District No. 1 to pay the costs associated with the installation, operation and maintenance of such street lighting system and other facilities; and
WHEREAS, this City Council has formed Redlands’ Landscape Maintenance District No. 1 to pay the costs for the maintenance such landscaping; and WHEREAS, it is the desire of this City Council to initiate proceedings and order the preparation of an engineer’s report to levy assessments for fiscal year 2026-2027 upon properties located within Street Lighting District No. 1 and Landscape Maintenance District No. 1; and WHEREAS, this City Council further desires to appoint Donald Young, RCE No. 49918, One Stop Permit Center Manager, as the "Assessment Engineer" for Street Lighting District No. 1 and Landscape Maintenance District No. 1;
NOW, THEREFORE, the City Council of the City of Redlands does hereby find, determine and resolve as follows:
Section 1. That the public interest, convenience and necessity requires the continued levy of assessments within Street Lighting District No. 1 for the purpose of installing, operating and maintaining street lights and associated facilities as authorized by Section 22620 of the California Streets and Highways Code and in compliance with Article XIIID, and Section 19 of Article XVI, of the California Constitution.
Section 2. That the public interest, convenience and necessity requires the continued levy of assessments within Landscape Maintenance District No. 1 for the purpose of maintaining landscaping and improvements as authorized by Section 22620 of the California Streets and 2 Highways Code and in compliance with the requirements of Article XIIID and Section 19 of Article XVI of the California Constitution.
Section 3. That the properties to be assessed for the installation, operation and maintenance of the street lighting facilities shall be those properties located within the boundaries of Street Lighting District No. 1.
Section 4. That the properties to be assessed for the maintenance and operation of the landscaping and improvements shall be those properties located within the boundaries of Landscape Maintenance District No. 1.
Section 5. That the proceedings for the continued levy of assessments within Street Lighting District No. 1 and Landscape Maintenance District No. 1 shall be conducted in accordance the with provisions of Division 15 of the California Streets and Highways Code (the Landscaping and Lighting Act of 1972) and in compliance with the requirements of Article XIIID, and Section 19 of Article XVI, of the California Constitution.
Section 6. That Donald Young, RCE No. 49918, One Stop Permit Center Manager, having an office located at 35 Cajon Street, Suite 15A, Redlands, California, is hereby appointed “Assessment Engineer” and shall have the authority conferred upon the Assessment Engineer by the Landscaping and Lighting Act of 1972.
Section 7. That the Assessment Engineer is hereby ordered to prepare a report in accordance with the Landscaping and Lighting Act of 1972.
ADOPTED, SIGNED AND APPROVED this 5th day of May, 2026. ______________________________
Mario Saucedo, Mayor
ATTEST:
______________________________
Jeanne Donaldson, City Clerk
3 I, Jeanne Donaldson, City Clerk of the City of Redlands, do hereby certify that the foregoing Resolution was duly adopted by the City Council at a regular meeting thereof, held on the 5th day of May, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
_______________________________
Jeanne Donaldson, City Clerk
1 K:\LMD&SLD\2026\Resolutions\Reso 8770 SLD and LMD FY26-27 Prelim App.docx RESOLUTION NO. 8770
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
GIVING PRELIMINARY APPROVAL OF THE ENGINEER'S REPORTS FOR FISCAL YEAR 2026-2027 FOR STREET LIGHTING DISTRICT NO. 1 AND LANDSCAPE MAINTENANCE DISTRICT NO. 1
WHEREAS, the City Council of the City of Redlands (the “City Council”) has heretofore determined that the public interest, convenience and necessity require the maintenance and operation of street lighting and appurtenant facilities, as set forth in Section 22525 of the Streets and Highways Code, within the incorporated boundaries of the City of Redlands; and WHEREAS, the City Council has heretofore determined that the public interest, convenience and necessity require the maintenance of landscape and irrigation facilities set forth in Section 22525 of the Streets and Highways Code, State of California, within the incorporated boundaries of the City of Redlands; and
WHEREAS, Donald Young, One Stop Permit Center Manager, 35 Cajon Street, Suite 15A, Redlands, California, has been appointed “Assessment Engineer” with all provisions of Part 2 of Division 15 of the Streets and Highways Code applicable to the Engineer being applied to the “Assessment Engineer;” and
WHEREAS, Sections 22622 and 22623 of the Streets and Highways Code require that an Engineer's Report be prepared and filed annually, specifying the assessments to be levied against the benefitting properties within the City’s Street Lighting District No. 1 and Landscape Maintenance District No. 1; and
WHEREAS, the Assessment Engineer has prepared and filed with the City Clerk reports in writing as required by the Landscaping and Lighting Act of 1972 and in compliance with Article XIIID of the California Constitution; and
WHEREAS, the City Council has duly considered said reports and each and every part thereof; and finds that each and every part of said reports is sufficient, and that no part of said reports requires modification in any respect;
NOW, THEREFORE, be it resolved by the City Council of the City of Redlands as follows:
Section 1. That the Engineer's estimate of the itemized costs and expenses of said work and of the incidental expenses in connection therewith, contained in said reports be, and each of them are hereby, preliminarily approved and confirmed.
Section 2. That the diagrams showing the Street Lighting District No. 1 and Landscape Maintenance District No. 1, referred to and described in said reports, and the boundaries of the lots and parcels of land within such assessment district as the same existed at the time of passage of this resolution, are hereby preliminarily approved and confirmed. 2 K:\LMD&SLD\2026\Resolutions\Reso 8770 SLD and LMD FY26-27 Prelim App.docx Section 3. That the proposed assessment upon the properties in Street Lighting District No. 1 and Landscape Maintenance District No. 1, in proportion to the estimated benefit to be received by such properties, respectively, from said work and of the incidental expenses thereof, as contained in said report is hereby preliminarily approved and confirmed.
Section 4. That said reports shall stand as the Engineer's Report for the purposes of all subsequent proceedings for Street Lighting District No. 1 and Landscape Maintenance District No. 1.
APPROVED AND ADOPTED this 2nd day of June, 2026.
________________________
Mario Saucedo, Mayor
ATTEST:
__________________________
Jeanne Donaldson, City Clerk
3 K:\LMD&SLD\2026\Resolutions\Reso 8770 SLD and LMD FY26-27 Prelim App.docx 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 2nd day of June, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
_______________________________
Jeanne Donaldson, City Clerk
1 K:\LMD&SLD\2026\Resolutions\Reso 8771 SLD and LMD FY26-27 Intent.docx RESOLUTION NO. 8771
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS WITHIN REDLANDS’ STREET LIGHTING ASSESSMENT DISTRICT NO. 1 AND LANDSCAPE ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2025-2026 PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, AND ESTABLISHING A TIME AND PLACE FOR PUBLIC HEARINGS
FOR THE TWO DISTRICTS TO CONSIDER PROTESTS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS:
Section 1. The City Council of the City of Redlands hereby (1) finds that the public interest and convenience requires, and (2) declares its intention to levy and collect, assessments against the lots and parcels of property within an existing assessment districts designated “Redlands’ Street Lighting Assessment District No. 1 and Landscape Assessment District No. 1” (the “Districts”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the Streets and Highways Code (commencing with Section 22500) (the “Act”) for fiscal year 2026-2027, commencing July 1, 2026, and ending June 30, 2027, to pay for the costs and expenses of the improvements described in Section 3 hereof.
Section 2. Reference is hereby made to a map on file in the office of the City Clerk and open for public inspection for a description of the exterior boundaries of the Districts.
Section 3. The proposed improvements are briefly described as follows: The operation, maintenance and servicing of public within the District, including the operation, maintenance and servicing of public lighting facilities and landscaping, including safety lighting, traffic signals, trees, shrubs, grass and other ornamental vegetation, and appurtenant facilities, located along public roadways, streets and rights-of-way within the boundaries of the Districts. “Maintenance” means the furnishing of services and materials for the ordinary and usual maintenance, operation and servicing of the public lighting and landscaping facilities, and appurtenant facilities, including repair, removal or replacement of all or part of any of the public lighting and landscaping facilities, or appurtenant facilities. “Servicing” means the maintenance of any of the public lighting and landscaping facilities or appurtenant facilities, including the furnishing of electric current, energy or gas for the operation of any of the lighting facilities and the furnishing of water for the irrigation of any of the landscaping facilities.
Section 4. The assessments to be levied and collected against the assessable lots and parcels of property within the Districts for fiscal year 2026-2027 are not proposed to increase from the assessments levied and collected for fiscal year 1997-1998.
Section 5. Public property owned by any public agency and in use in the performance of a public function which is included within the boundaries of the Districts shall not be subject to assessment to be made under these proceedings to cover any of the costs and expenses of the improvements.
2 K:\LMD&SLD\2026\Resolutions\Reso 8771 SLD and LMD FY26-27 Intent.docx Section 6. All railroad, gas, water and electric utility rights-of-way are included within the Districts and shall be assessed in accordance with the benefits received from the improvements.
Section 7. Reference is hereby made to the Reports of the Engineer entitled “City of Redlands Street Lighting District No. 1 Engineer’s Report for Fiscal Year 2026-2027” and “City of Redlands Landscape Maintenance District No. 1 Engineer’s Report for Fiscal Year 2026-2027” on file in the office of the City Clerk for a full and detailed description of the improvements, the boundaries of the District and any zones therein and the proposed assessments upon assessable lots and parcels of land within the District.
Section 8. NOTICE IS HEREBY GIVEN THAT THE CITY COUNCIL APPOINTS TUESDAY, THE 16TH DAY OF JUNE, 2026, AT THE HOUR OF 6:00 P.M., OR AS SOON
THEREAFTER AS THE MATTER MAY BE HEARD, IN THE COUNCIL CHAMBERS AT CITY HALL, CITY OF REDLANDS, 35 CAJON STREET, SUITE 2, REDLANDS, CALIFORNIA 92373, AS THE TIME AND PLACE FOR TWO PUBLIC HEARINGS TO
CONSIDER PROTESTS OR OBJECTIONS TO THE LEVY OF THE PROPOSED ASSESSMENTS IN CONNECTION WITH THE DISTRICTS. All interested persons shall be afforded the opportunity to hear and be heard. Any interested person may file a written protest with the City Clerk prior to the conclusion of the hearing. A written protest shall state all grounds of objection. A protest by a property owner shall contain a description sufficient to identify the property owned by the signer thereof. The City Council shall consider all oral statements and all written protests made or filed by any interested person.
Section 9. The City Clerk is hereby authorized and directed to give notice of such hearing in accordance with law.
Section 10. The City Council hereby determines and declares that the proposed assessments constitute a continuation of assessments existing on the effective date of Article XIIID, that the assessments are imposed exclusively to finance the maintenance and operation expenses for streets and that the assessments are exempt from the requirements of Article XIIID, Section 4 of the California Constitution.
Section 11. The City Council hereby designates Donald Young, One Stop Permit Center Manager, telephone number (909) 798-7585 x6, to answer inquiries regarding the hearing, protest proceedings and procedural or technical matters.
ADOPTED, SIGNED AND APPROVED this 2nd day of June, 2026. ______________________________
Mario Saucedo, Mayor
ATTEST:
__________________________
Jeanne Donaldson, City Clerk
3 K:\LMD&SLD\2026\Resolutions\Reso 8771 SLD and LMD FY26-27 Intent.docx I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certifies that the foregoing resolution was duly adopted by the City Council, at a regular meeting thereof, held on the 2nd day of June, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
______________________________
Jeanne Donaldson, City Clerk
1 K:\LMD&SLD\2026\Resolutions\Reso 8773 LMD Confirming Diagram 2026-27.docx RESOLUTION NO. 8773
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS CONFIRMING A DIAGRAM AND ASSESSMENT FOR THE 2023-2024
FISCAL YEAR IN CONNECTION WITH LANDSCAPE MAINTENANCE
DISTRICT NO. 1 PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972, PART 2 OF DIVISION 15 OF THE CALIFORNIA STREETS AND
HIGHWAYS CODE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS:
Section 1. Pursuant to its adoption of a prior resolution, the City Council of the City of Redlands initiated proceedings and declared its intention to levy an assessment against the assessable lots and parcels of property within an existing assessment district designated “Landscape Maintenance District No 1” (the District) pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the “Act”) for the fiscal year commencing July 1, 2026, and ending June 30, 2027, and ordered Donald Young, One Stop Permit Center Manager, to prepare and file a written report in accordance with Article 4 of Chapter 1 of the Act.
The City Council, by prior resolution, approved such Engineer’s Report.
Section 2. Following notice duly given in accordance with law, this City Council has held a full and fair public hearing regarding the Engineer’s Report and the levy and collection of the proposed assessment within the District for fiscal year 2026-2027 to pay for the costs and expenses of the improvements described in the Engineer’s Report pursuant to the terms and provisions of the Act. All interested persons were afforded the opportunity to hear, and be heard regarding, protests and objections to the levy and collection of the proposed assessment against lots or parcels of property within the District. The City Council considered all oral and written statements, protests and communications made or filed by interested persons.
Section 3. Based upon its review of the Engineer’s Report and other reports and information, this City Council hereby finds and determines that (i) the land within the District will be benefited by the improvements described in the Engineer’s Report (ii) the District includes all of the lands so benefited, and (iii) the net amount to be assessed upon the lands with the District for the 2023-2024 fiscal year in accordance with the Engineer’s Report is apportioned by a formula and method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. Any and all oral and written protests and objections are hereby overruled by the City Council.
Section 4. The City Council declares that the diagram and assessment in the Engineer’s Report are hereby confirmed as filed.
Section 5. The City Council hereby orders the improvements described in the Engineer’s Report to be made.
2 K:\LMD&SLD\2026\Resolutions\Reso 8773 LMD Confirming Diagram 2026-27.docx Section 6. The assessment is in compliance with the provisions of the Act and the City Council has complied with all law pertaining to the levy of an annual assessment pursuant to the Act.
Section 7. The assessments to be levied and collected against the assessable lots and parcels of property within the District for fiscal year 2026-2027 are not proposed to increase from the assessment levied and collected for fiscal year 1997-1998.
Section 8. The assessment is levied without regard to property valuation.
Section 9. Public property owned by any public agency and in use in the performance of a public function which is included within the boundaries of the District shall not be subject to assessment to be made under these proceedings to pay for any of the costs and expenses of the improvements.
Section 10. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in the Engineer’s Report for fiscal year 2026-2027.
Section 11. The improvements described in the Engineer’s Report shall be performed pursuant to law.
Section 12. The County Auditor of San Bernardino County shall enter on the County Assessment Roll opposite each lot or parcel of land the amount of the assessment and such assessments shall then be collected at the same time and in the same manner as the County taxes collected. After collection by the County, the net amount of the assessments shall be paid to the City Treasurer.
Section 13. The City Treasurer shall deposit all moneys representing assessments collected by the County to the credit of a special fund for Landscape Maintenance District No. 1.
Section 14. The adoption of this Resolution constitutes the levy of an assessment against the lots and parcels of land in the District for the fiscal year commencing July 1, 2026, and ending June 30, 2027.
Section 15. The City Clerk is hereby authorized and directed to file the diagram and assessment, or a certified copy of the diagram and assessment, with the County Auditor, together with a certified copy of this Resolution upon its adoption.
Section 16. A certified copy of the assessment and diagram shall be filed in the City’s Facilities and Community Services Department, with a duplicate copy on file in the office of the City Clerk and open for public inspection.
3 K:\LMD&SLD\2026\Resolutions\Reso 8773 LMD Confirming Diagram 2026-27.docx ADOPTED, SIGNED AND APPROVED this 16th day of June, 2026.
________________________________
Mario Saucedo, Mayor
ATTEST:
_______________________________
Jeanne Donaldson, City Clerk
4 K:\LMD&SLD\2026\Resolutions\Reso 8773 LMD Confirming Diagram 2026-27.docx I, Jeanne Donaldson, City Clerk of the City of Redlands, hereby certifies that the foregoing resolution was adopted by the City Council, at a regular meeting thereof, held on the 16th day of June, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Jeanne Donaldson, City Clerk
APPENDIX D
ASSESSMENT ROLL
THIS PAGE INTENTIONALLY LEFT BLANK
APN SITUS ADDRESS ANNEXATION CHARGE
0167-231-19-0000 709 LUGONIA AVE Annexation L4-D $ 6.00 0167-231-20-0000 705 LUGONIA AVE Annexation L4-D $ 6.00 0167-231-21-0000 1237 LAWTON ST Annexation L4-D $ 6.00
0167-271-61-0000 1135 CHURCH ST Annexation L6-D $ 6.00
0167-802-01-0000 1575 N COLUMBIA ST Original 1-B $ 39.65 0167-802-02-0000 1571 N COLUMBIA ST Original 1-B $ 36.05 0167-802-03-0000 1567 COLUMBIA ST Original 1-B $ 36.05
0167-802-04-0000 1563 COLUMBIA ST Original 1-B $ 36.05
0167-802-05-0000 1558 WOODBURY ST Original 1-B $ 36.05
0167-802-06-0000 1562 WOODBURY Original 1-B $ 36.05
0167-802-07-0000 1566 WOODBURY Original 1-B $ 36.05
0167-802-08-0000 1570 WOODBURY Original 1-B $ 39.65
0167-803-01-0000 1569 WOODBURY Original 1-B $ 39.65
0167-803-02-0000 1565 WOODBURY Original 1-B $ 36.05
0167-803-03-0000 1561 WOODBURY Original 1-B $ 36.05
0167-803-04-0000 610 ELISE Original 1-B $ 36.05
0167-803-05-0000 618 ELISE Original 1-B $ 36.05
0167-803-06-0000 626 ELISE Original 1-B $ 36.05
0167-803-07-0000 634 ELISE ST Original 1-B $ 36.05
0167-803-08-0000 1568 VERMONT Original 1-B $ 36.05
0167-803-09-0000 1574 VERMONT Original 1-B $ 39.65
0167-804-01-0000 633 ELISE Original 1-B $ 36.05
0167-804-02-0000 625 ELISE Original 1-B $ 36.05
0167-804-03-0000 617 ELISE Original 1-B $ 36.05
0167-804-04-0000 609 ELISE Original 1-B $ 36.05
0167-804-05-0000 601 ELISE Original 1-B $ 36.05
0167-804-06-0000 525 ELISE Original 1-B $ 36.05
0167-804-07-0000 517 ELISE Original 1-B $ 36.05
0167-804-08-0000 509 ELISE Original 1-B $ 36.05
0167-804-09-0000 1555 COLUMBIA ST Original 1-B $ 36.05
0167-804-10-0000 1551 COLUMBIA ST Original 1-B $ 36.05
0167-804-11-0000 1547 COLUMBIA ST Original 1-B $ 36.05
0167-804-12-0000 1543 N COLUMBIA ST Original 1-B $ 36.05 0167-804-13-0000 1528 CANTERBURY CIR Original 1-B $ 36.05 0167-804-14-0000 1530 CANTERBURY CIR Original 1-B $ 36.05 0167-804-15-0000 1532 CANTERBURY CIR Original 1-B $ 36.05 0167-804-16-0000 1534 CANTERBURY CIR Original 1-B $ 36.05 0167-804-17-0000 1536 CANTERBURY CIR Original 1-B $ 36.05 0167-804-18-0000 1538 CANTERBURY CIR Original 1-B $ 36.05 0167-804-19-0000 1540 CANTERBURY CIR Original 1-B $ 36.05 0167-823-01-0000 1539 CANTERBURY CIR Original 1-B $ 36.05 0167-823-02-0000 1537 CANTERBURY CIR Original 1-B $ 36.05 0167-823-03-0000 1535 CANTERBURY CIR Original 1-B $ 36.05 0167-823-04-0000 1533 CANTERBURY CIR Original 1-B $ 36.05 0167-823-05-0000 1531 CANTERBURY CIR Original 1-B $ 36.05 0167-823-06-0000 1509 CANTERBURY CIR Original 1-B $ 36.05 0167-823-07-0000 1507 CANTERBURY CIR Original 1-B $ 36.05 0167-823-08-0000 1505 CANTERBURY CIR Original 1-B $ 36.05 0167-823-09-0000 1503 CANTERBURY CIR Original 1-B $ 36.05 0167-823-10-0000 1501 CANTERBURY CIR Original 1-B $ 36.05 0167-824-01-0000 1539 COLUMBIA ST Original 1-B $ 36.05
0167-824-02-0000 1535 COLUMBIA ST Original 1-B $ 36.05
0167-824-03-0000 1531 COLUMBIA ST Original 1-B $ 36.05
0167-824-04-0000 1527 COLUMBIA ST Original 1-B $ 36.05
0167-824-05-0000 1523 COLUMBIA ST Original 1-B $ 36.05
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
Fiscal Year 2026/27 Page 1 of 11
APN SITUS ADDRESS ANNEXATION CHARGE
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
0167-824-06-0000 1519 COLUMBIA ST Original 1-B $ 36.05
0167-824-07-0000 1515 COLUMBIA ST Original 1-B $ 36.05
0167-824-08-0000 1511 COLUMBIA ST Original 1-B $ 36.05
0167-824-09-0000 1507 COLUMBIA ST Original 1-B $ 36.05
0167-824-10-0000 1503 COLUMBIA ST Original 1-B $ 36.05
0167-824-11-0000 1501 COLUMBIA ST Original 1-B $ 36.05
0167-824-12-0000 508 PENNSYLVANIA AVE Original 1-B $ 36.05 0167-824-13-0000 512 PENNSYLVANIA AVE Original 1-B $ 36.05 0167-824-14-0000 516 PENNSYLVANIA AVE Original 1-B $ 36.05 0167-824-15-0000 520 PENNSYLVANIA AVE Original 1-B $ 36.05 0167-824-16-0000 600 PENNSYLVANIA AVE Original 1-B $ 36.05 0167-824-17-0000 602 PENNSYLVANIA AVE Original 1-B $ 36.05 0167-824-18-0000 606 PENNSYLVANIA AVE Original 1-B $ 36.05 0167-824-19-0000 610 PENNSYLVANIA AVE Original 1-B $ 36.05 0167-824-20-0000 1500 CANTERBURY CIR Original 1-B $ 36.05 0167-824-21-0000 1502 CANTERBURY CIR Original 1-B $ 36.05 0167-824-22-0000 1504 CANTERBURY CIR Original 1-B $ 36.05 0167-824-23-0000 1506 CANTERBURY CIR Original 1-B $ 36.05 0167-824-24-0000 1508 CANTERBURY CIR Original 1-B $ 36.05 0167-824-25-0000 1510 CANTERBURY CIR Original 1-B $ 36.05 0167-824-26-0000 1512 CANTERBURY CIR Original 1-B $ 36.05 0167-824-27-0000 1514 CANTERBURY CIR Original 1-B $ 36.05 0167-824-28-0000 1516 CANTERBURY CIR Original 1-B $ 36.05 0167-824-29-0000 1518 CANTERBURY CIR Original 1-B $ 36.05 0167-824-30-0000 1520 CANTERBURY CIR Original 1-B $ 36.05 0167-824-31-0000 1522 CANTERBURY CIR Original 1-B $ 36.05 0167-824-32-0000 1524 CANTERBURY CIR Original 1-B $ 36.05 0167-851-39-0000 1832 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-40-0000 1828 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-41-0000 1824 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-42-0000 1820 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-43-0000 1816 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-44-0000 1812 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-45-0000 1808 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-46-0000 1804 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-47-0000 1800 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-48-0000 1835 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-49-0000 1831 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-50-0000 1827 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-51-0000 1823 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-52-0000 1819 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-53-0000 1815 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-54-0000 1811 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-55-0000 1807 BROOKSTONE ST Annexation L8-B $ 6.00 0167-851-56-0000 1803 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-37-0000 450 RIVERVIEW DR Annexation L8-B $ 6.00 0167-861-38-0000 1928 BROOKSTONE DR Annexation L8-B $ 6.00 0167-861-39-0000 1924 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-40-0000 1920 BROOKSTONE Annexation L8-B $ 6.00 0167-861-41-0000 1916 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-42-0000 1912 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-43-0000 1908 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-44-0000 1840 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-45-0000 1836 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-46-0000 1839 BROOKSTONE ST Annexation L8-B $ 6.00 Fiscal Year 2026/27 Page 2 of 11
APN SITUS ADDRESS ANNEXATION CHARGE
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
0167-861-47-0000 1907 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-48-0000 1911 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-49-0000 1915 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-50-0000 1919 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-51-0000 1923 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-52-0000 1927 BROOKSTONE ST Annexation L8-B $ 6.00 0167-861-53-0000 410 RIVERVIEW DR Annexation L8-B $ 6.00 0167-861-54-0000 420 RIVERVIEW DR Annexation L8-B $ 6.00 0168-681-01-0000 1067 MENDICINO WY Original 1-A $ 62.09 0168-681-02-0000 1063 MENDICINO WY Original 1-A $ 62.09 0168-681-03-0000 1059 MENDICINO WY Original 1-A $ 62.09 0168-681-04-0000 1055 MENDICINO Original 1-A $ 62.09
0168-681-05-0000 1051 MENDICINO WY Original 1-A $ 62.09 0168-681-06-0000 1047 MENDOCINO Original 1-A $ 62.09
0168-681-07-0000 1043 MENDICINO WY Original 1-A $ 62.09 0168-681-08-0000 1039 MENDICINO Original 1-A $ 62.09
0168-681-09-0000 1035 MENDICINO Original 1-A $ 62.09
0168-681-10-0000 1756 MENDOCINO WY Original 1-A $ 62.09 0168-681-11-0000 1762 MENDOCINO WY Original 1-A $ 62.09 0168-681-12-0000 1768 MENDOCINO Original 1-A $ 62.09
0168-681-13-0000 1774 MENDICINO Original 1-A $ 62.09
0168-681-14-0000 1780 MENDICINO WY Original 1-A $ 62.09 0168-681-15-0000 1786 MENDICINO Original 1-A $ 62.09
0168-681-16-0000 1792 MENDOCINO Original 1-A $ 62.09
0168-681-17-0000 1798 MENDICINO Original 1-A $ 68.30
0168-681-18-0000 1008 ALPINE CT Original 1-A $ 68.30
0168-681-19-0000 1012 ALPINE Original 1-A $ 68.30
0168-681-20-0000 1016 ALPINE CT Original 1-A $ 68.30
0168-681-21-0000 1020 ALPINE Original 1-A $ 68.30
0168-681-22-0000 1024 ALPINE Original 1-A $ 68.30
0168-681-23-0000 1028 ALPINE CT Original 1-A $ 68.30
0168-681-24-0000 1032 ALPINE CT Original 1-A $ 68.30
0168-681-25-0000 1029 ALPINE CT Original 1-A $ 62.09
0168-681-26-0000 1025 ALPINE CT Original 1-A $ 62.09
0168-681-27-0000 1021 ALPINE ST Original 1-A $ 62.09
0168-681-28-0000 1017 ALPINE ST Original 1-A $ 62.09
0168-681-29-0000 1013 ALPINE Original 1-A $ 62.09
0168-681-30-0000 1009 ALPINE CT Original 1-A $ 62.09
0168-681-31-0000 1005 ALPINE CT Original 1-A $ 62.09
0168-681-32-0000 1042 MENDICINO WY Original 1-A $ 62.09 0168-681-33-0000 1046 MENDICINO Original 1-A $ 62.09
0168-681-34-0000 1050 MENDOCINO Original 1-A $ 62.09
0168-681-35-0000 1054 MENDICINO BLVD Original 1-A $ 62.09 0168-681-36-0000 1058 MENDICINO Original 1-A $ 62.09
0168-681-37-0000 1062 MENDICINO Original 1-A $ 62.09
0168-681-38-0000 1066 MENDICINO WY Original 1-A $ 62.09 0169-043-14-0000 506 W COLTON AVE Annexation L7-D $ 6.00 0169-053-12-0000 306 W COLTON AVE Annexation L4-L $ 6.00 0169-131-33-0000 507 LAWTON ST Annexation L4-F $ 6.00
0169-142-11-0000 511 W COLTON AVE Annexation L4-I $ 6.00 0169-182-02-0000 Annexation L4-O $ 6.00
0169-182-03-0000 316 THE TERRACE Annexation L4-O $ 6.00 0169-182-04-0000 Annexation L4-O $ 6.00
0169-212-17-0000 640 ORANGE ST Annexation L4-X $ 6.00
0169-212-18-0000 526 N ORANGE ST Annexation L4-X $ 6.00 Fiscal Year 2026/27 Page 3 of 11
APN SITUS ADDRESS ANNEXATION CHARGE
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
0169-212-19-0000 500 N ORANGE ST Annexation L4-X $ 6.00 0169-212-20-0000 402-414 N ORANGE ST Annexation L4-X $ 6.00 0169-212-21-0000 418-450 N ORANGE ST Annexation L4-X $ 6.00 0169-212-22-0000 522 ORANGE ST Annexation L4-X $ 6.00
0169-212-23-0000 602 ORANGE ST Annexation L4-X $ 6.00
0169-212-24-0000 683 N 6TH ST Annexation L4-X $ 6.00
0169-212-25-0000 552 ORANGE ST Annexation L4-X $ 6.00
0169-212-26-0000 454-482 N ORANGE ST Annexation L4-X $ 6.00 0169-212-27-0000 411 N 6TH ST Annexation L4-X $ 6.00
0169-281-39-0000 347 ORANGE ST Annexation L6-C $ 6.00
0169-301-08-0000 E REDLANDS BLVD Annexation L7-G $ 6.00 0169-301-10-0000 21 E REDLANDS BLVD Annexation L7-G $ 6.00 0169-301-11-0000 170 E REDLANDS BLVD Annexation L7-G $ 6.00 0169-313-16-0000 304 7TH ST Annexation L7-I $ 6.00
0169-321-01-0000 Annexation L6-A $ 6.00
0169-321-02-0000 304 N 9TH ST Annexation L6-A $ 6.00
0169-343-07-0000 1210 W COLTON AVE Annexation L4-S $ 6.00 0169-411-07-0000 1205 W COLTON AVE Annexation L4-H $ 6.00 0171-161-18-0000 371 NEW YORK Annexation L12-M $ 6.00
0171-171-34-0000 380 N NEW YORK ST Annexation L4-R $ 18.00 0171-202-30-0000 404 BROOKSIDE AVE Annexation L7-C $ 6.00 0171-202-33-0000 420 BROOKSIDE AVE Annexation L8-C $ 6.00 0171-203-13-0000 302 BROOKSIDE AVE Annexation L9-B $ 6.00 0171-331-04-0000 243 CAJON ST Annexation L4-J $ 6.00
0171-332-30-0000 124 E OLIVE AVE Annexation L10-E $ 6.00 0171-341-33-0000 612 REDLANDS BLVD Annexation L6-J $ 6.00 0171-383-19-0000 680 E REDLANDS BLVD Annexation L4-E $ 6.00 0171-383-20-0000 680 E REDLANDS BLVD Annexation L4-E $ 6.00 0172-031-49-0000 30 S CENTER ST Annexation L4-M $ 6.00
0172-301-14-0000 1515 W CYPRESS AVE Annexation L7-A $ 6.00 0172-301-15-0000 1513 W CYPRESS AVE Annexation L7-A $ 6.00 0172-301-16-0000 1511 W CYPRESS AVE Annexation L7-A $ 6.00 0172-301-17-0000 1517 W CYPRESS AVE Annexation L7-A $ 6.00 0173-052-31-0000 432 SONORA CIR Annexation L6-I $ 6.00
0173-052-32-0000 430 SONORA CIR Annexation L6-I $ 6.00
0173-052-33-0000 428 SONORA CIR Annexation L6-I $ 6.00
0173-052-34-0000 426 SONORA CIR Annexation L6-I $ 6.00
0173-052-35-0000 424 SONORA CIR Annexation L6-I $ 6.00
0173-052-36-0000 422 SONORA CIR Annexation L6-I $ 6.00
0173-052-37-0000 420 SONORA CIR Annexation L6-I $ 6.00
0173-052-38-0000 418 SONORA CIR Annexation L6-I $ 6.00
0173-052-39-0000 416 SONORA CIR Annexation L6-I $ 6.00
0173-052-40-0000 412 SONORA CIR Annexation L6-I $ 6.00
0173-052-41-0000 410 SONORA CIR Annexation L6-I $ 6.00
0173-052-42-0000 457 LA VERNE Annexation L6-I $ 6.00
0173-062-01-0000 472 SONORA CIR Annexation L6-I $ 6.00
0173-062-02-0000 470 SONORA CIR Annexation L6-I $ 6.00
0173-062-03-0000 468 SONORA CIR Annexation L6-I $ 6.00
0173-062-04-0000 466 SONORA CIR Annexation L6-I $ 6.00
0173-062-05-0000 464 SONORA CIR Annexation L6-I $ 6.00
0173-062-06-0000 462 SONORA CIR Annexation L6-I $ 6.00
0173-062-07-0000 460 SONORA CIR Annexation L6-I $ 6.00
0173-062-08-0000 458 SONORA CIR Annexation L6-I $ 6.00
0173-062-09-0000 456 SONORA CIR Annexation L6-I $ 6.00
0173-062-10-0000 454 SONORA CIR Annexation L6-I $ 6.00
Fiscal Year 2026/27 Page 4 of 11
APN SITUS ADDRESS ANNEXATION CHARGE
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
0173-062-11-0000 452 SONORA CIR Annexation L6-I $ 6.00
0173-062-12-0000 450 SONORA CIR Annexation L6-I $ 6.00
0173-062-13-0000 448 SONORA CIR Annexation L6-I $ 6.00
0173-062-14-0000 446 SONORA CIR Annexation L6-I $ 6.00
0173-062-15-0000 444 SONORA CIR Annexation L6-I $ 6.00
0173-062-16-0000 442 SONORA CIR Annexation L6-I $ 6.00
0173-062-17-0000 440 SONORA CIR Annexation L6-I $ 6.00
0173-062-18-0000 438 SONORA CIR Annexation L6-I $ 6.00
0173-062-19-0000 436 SONORA CIR Annexation L6-I $ 6.00
0173-062-20-0000 434 SONORA CIR Annexation L6-I $ 6.00
0173-062-21-0000 408 SONORA CIR Annexation L6-I $ 6.00
0173-062-22-0000 406 SONORA CIR Annexation L6-I $ 6.00
0173-062-23-0000 407 SONORA CIR Annexation L6-I $ 6.00
0173-062-24-0000 473 SONORA CIR Annexation L6-I $ 6.00
0173-062-25-0000 471 SONORA CIR Annexation L6-I $ 6.00
0173-062-26-0000 469 SONORA CIR Annexation L6-I $ 6.00
0173-062-27-0000 457 SONORA CIR Annexation L6-I $ 6.00
0173-062-28-0000 455 SONORA CIR Annexation L6-I $ 6.00
0173-062-29-0000 453 SONORA CIR Annexation L6-I $ 6.00
0173-062-30-0000 451 SONORA CIR Annexation L6-I $ 6.00
0173-062-31-0000 439 SONORA CIR Annexation L6-I $ 6.00
0173-062-32-0000 437 SONORA CIR Annexation L6-I $ 6.00
0173-062-33-0000 435 SONORA CIR Annexation L6-I $ 6.00
0173-062-34-0000 431 SONORA CIR Annexation L6-I $ 6.00
0173-062-35-0000 421 SONORA CIR Annexation L6-I $ 6.00
0173-062-36-0000 423 SONORA CIR Annexation L6-I $ 6.00
0173-062-37-0000 425 SONORA CIR Annexation L6-I $ 6.00
0173-062-38-0000 427 SONORA CIR Annexation L6-I $ 6.00
0174-021-41-0000 1377 KNOLL RD Annexation L8-E $ 6.00
0174-021-42-0000 1379 KNOLL RD Annexation L8-E $ 6.00
0174-241-31-0000 1475 FORD ST Annexation L5-D $ 12.00
0174-261-15-0000 1551 RESERVOIR RD Annexation L10-G $ 6.00 0174-281-33-0000 BUCKINGHAM Annexation L12-L $ 6.00
0174-281-34-0000 BUCKINGHAM Annexation L12-L $ 6.00
0174-281-35-0000 BUCKINGHAM Annexation L12-L $ 6.00
0174-281-37-0000 731 BUCKINGHAM DR Annexation L12-L $ 6.00 0174-621-01-0000 751 DEVONSHIRE DR Annexation L2-A $ 44.55 0174-621-02-0000 755 DEVONSHIRE DR Annexation L2-A $ 44.55 0174-621-03-0000 759 DEVONSHIRE DR Annexation L2-A $ 44.55 0174-621-04-0000 763 DEVONSHIRE DR Annexation L2-A $ 44.55 0174-621-05-0000 767 DEVONSHIRE DR Annexation L2-A $ 44.55 0174-621-06-0000 771 DEVONSHIRE DR Annexation L2-A $ 44.55 0174-621-07-0000 775 DEVONSHIRE DR Annexation L2-A $ 44.55 0174-621-08-0000 816 CONCORD Annexation L2-A $ 53.46
0174-621-09-0000 812 CONCORD Annexation L2-A $ 44.55
0174-621-10-0000 770 CONCORD Annexation L2-A $ 44.55
0174-621-11-0000 766 CONCORD Annexation L2-A $ 44.55
0174-621-12-0000 762 CONCORD Annexation L2-A $ 44.55
0174-621-13-0000 1609 SHEFFIELD Annexation L2-A $ 44.55 0174-621-14-0000 1613 SHEFFIELD Annexation L2-A $ 44.55 0174-621-15-0000 1617 SHEFFIELD Annexation L2-A $ 44.55 0174-621-16-0000 1621 SHEFFIELD Annexation L2-A $ 44.55 0174-621-17-0000 1625 SHEFFIELD Annexation L2-A $ 44.55 0174-621-18-0000 1629 SHEFFIELD Annexation L2-A $ 44.55 0174-621-19-0000 1633 SHEFFIELD Annexation L2-A $ 44.55 Fiscal Year 2026/27 Page 5 of 11
APN SITUS ADDRESS ANNEXATION CHARGE
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
0174-621-20-0000 1636 SHEFFIELD LN Annexation L2-A $ 44.55 0174-621-21-0000 1632 SHEFFIELD LN Annexation L2-A $ 44.55 0174-621-22-0000 1628 SHEFFIELD LN Annexation L2-A $ 44.55 0174-621-23-0000 801 LEXINGTON LN Annexation L2-A $ 44.55 0174-621-24-0000 805 LEXINGTON LN Annexation L2-A $ 44.55 0174-621-25-0000 809 LEXINGTON LN Annexation L2-A $ 44.55 0174-621-26-0000 813 LEXINGTON LN Annexation L2-A $ 53.46 0174-621-27-0000 812 LEXINGTON LN Annexation L2-A $ 53.46 0174-621-28-0000 808 LEXINGTON LN Annexation L2-A $ 44.55 0174-621-29-0000 804 LEXINGTON LN Annexation L2-A $ 44.55 0174-621-30-0000 800 LEXINGTON LN Annexation L2-A $ 44.55 0174-621-31-0000 1620 SHEFFIELD LN Annexation L2-A $ 44.55 0174-621-32-0000 1616 SHEFFIELD LN Annexation L2-A $ 44.55 0174-621-33-0000 769 CONCORD LN Annexation L2-A $ 44.55 0174-621-34-0000 811 CONCORD LN Annexation L2-A $ 44.55 0174-621-35-0000 815 CONCORD LN Annexation L2-A $ 53.46 0175-491-01-0000 1521 REBECCA CREST Original 1-C $ 1,572.77 0175-491-02-0000 REBECCA CREST Original 1-C $ 1,310.64
0175-491-03-0000 REBECCA CREST Original 1-C $ 1,310.64
0175-491-04-0000 1527 REBELLA CREST Original 1-C $ 1,310.64 0175-491-05-0000 1531 REBECCA CREST Original 1-C $ 1,310.64 0175-491-06-0000 1533 REBECCA CREST Original 1-C $ 1,310.64 0175-491-07-0000 1535 REBECCA CREST Original 1-C $ 1,310.64 0175-491-08-0000 1537 REBECCA CREST Original 1-C $ 1,310.64 0175-491-09-0000 1541 REBECCA CREST Original 1-C $ 1,572.77 0176-044-15-0000 605 VALLEY VIEW DR Annexation L4-Q $ 6.00 0176-402-04-0000 633 GOLDEN WEST DR Annexation L12-E $ 6.00 0176-402-06-0000 629 GOLDENWEST DR Annexation L12-D $ 6.00 0176-402-07-0000 627 GOLDEN WEST DR Annexation L12-C $ 6.00 0176-402-08-0000 GOLDEN WEST DR Annexation L12-B $ 6.00 0176-402-09-0000 623 GOLDEN WEST DR Annexation L12-A $ 6.00 0176-441-18-0000 1581 FRANKLIN AVE Annexation L5-C $ 78.37 0176-441-19-0000 1617 GARDEN ST Annexation L5-C $ 86.20 0176-441-20-0000 1613 GARDEN ST Annexation L5-C $ 86.20 0176-441-21-0000 1609 GARDEN ST Annexation L5-C $ 86.20 0176-441-22-0000 1583 FRANKLIN AVE Annexation L5-C $ 86.20 0176-441-23-0000 210 CANDY LN Annexation L5-C $ 78.37
0176-441-24-0000 226 CANDY LN Annexation L5-C $ 78.37
0176-441-25-0000 242 CANDY LN Annexation L5-C $ 78.37
0176-441-26-0000 250 CANDY LN Annexation L5-C $ 78.37
0176-441-27-0000 258 CANDY LN Annexation L5-C $ 78.37
0176-521-01-0000 1080 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-02-0000 1070 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-03-0000 1060 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-04-0000 1050 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-05-0000 1040 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-06-0000 1030 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-07-0000 1020 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-08-0000 1010 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-09-0000 1000 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-10-0000 912 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-11-0000 908 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-12-0000 904 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-13-0000 900 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-18-0000 1920 HORSE TRAIL DR Annexation L10-H $ 6.00 Fiscal Year 2026/27 Page 6 of 11
APN SITUS ADDRESS ANNEXATION CHARGE
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
0176-521-19-0000 1910 HORSE TRAIL DR Annexation L10-H $ 6.00 0176-521-20-0000 1900 HORSE TRAIL DR Annexation L10-H $ 6.00 0176-521-21-0000 1011 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-22-0000 1021 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-23-0000 1031 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-27-0000 1061 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-28-0000 1041 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-29-0000 907 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-30-0000 949 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-31-0000 901 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-521-32-0000 951 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-01-0000 948 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-02-0000 944 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-03-0000 940 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-07-0000 924 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-08-0000 920 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-09-0000 916 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-12-0000 921 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-13-0000 931 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-18-0000 911 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-20-0000 936 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-21-0000 928 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-22-0000 932 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-24-0000 915 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-25-0000 947 SUNSET HILLS LN Annexation L10-H $ 6.00 0176-531-26-0000 945 SUNSET HILLS LN Annexation L10-H $ 6.00 0292-032-39-0000 1251 RESEARCH DR Annexation L3-A $ 195.55 0292-032-40-0000 1115 RESEARCH DR Annexation L3-A $ 39.88 0292-032-41-0000 1110 RESEARCH DR Annexation L3-A $ 62.73 0292-032-42-0000 2351 LUGONIA AVE Annexation L3-A $ 301.84 0292-033-11-0000 1101 N CALIFORNIA ST Annexation L4-C $ 6.00 0292-033-13-0000 1101 N CALIFORNIA ST Annexation L12-H $ 6.00 0292-034-16-0000 941 CALIFORNIA ST Annexation L4-N $ 6.00 0292-063-45-0000 1720 W REDLANDS BLVD Annexation L10-C $ 6.00 0292-064-13-0000 2094 W REDLANDS BLVD Annexation L6-H $ 6.00 0292-064-17-0000 2098 W REDLANDS BLVD Annexation L6-H $ 6.00 0292-064-21-0000 2046 REDLANDS BLVD Annexation L6-H $ 6.00 0292-064-22-0000 2072 W REDLANDS BLVD Annexation L6-H $ 6.00 0292-064-23-0000 2070 W REDLANDS BLVD Annexation L6-H $ 6.00 0292-064-24-0000 2050 REDLANDS BLVD Annexation L6-H $ 6.00 0292-064-25-0000 2068 W REDLANDS BLVD Annexation L6-H $ 6.00 0292-064-26-0000 2062 REDLANDS BLVD Annexation L6-H $ 6.00 0292-064-27-0000 2052 REDLANDS BLVD Annexation L6-H $ 6.00 0292-152-39-0000 2015 PARK AVE Annexation L10-B $ 6.00
0292-153-24-0000 1915 REDLANDS BLVD Annexation L5-A $ 6.00 0292-153-25-0000 1911 REDLANDS BLVD Annexation L5-A $ 6.00 0292-153-26-0000 721 NEVADA ST Annexation L5-A $ 6.00
0292-153-27-0000 721 NEVADA ST Annexation L5-A $ 6.00
0292-154-12-0000 1991 PARK AVE Annexation L8-D $ 6.00
0292-156-21-0000 1717 PARK AVE Annexation L4-V $ 6.00
0292-157-16-0000 1625 W REDLANDS BLVD Annexation L9-A $ 6.00 0292-157-20-0000 560 IOWA ST Annexation L12-J $ 6.00
0292-157-31-0000 1615 REDLANDS BLVD Annexation L5-G $ 6.00 0292-158-15-0000 ALABAMA ST Annexation L11-B $ 6.00
0292-165-15-0000 1890 ORANGE AVE Annexation L6-F $ 6.00 Fiscal Year 2026/27 Page 7 of 11
APN SITUS ADDRESS ANNEXATION CHARGE
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
0292-166-11-0000 1710 BARTON RD Annexation L4-K $ 6.00
0292-182-30-0000 614 ALABAMA ST Annexation L4-T $ 6.00
0292-182-31-0000 614 ALABAMA ST Annexation L4-T $ 6.00
0292-192-11-0000 301 TENNESSEE ST Annexation L7-E $ 6.00 0292-201-37-0000 141 KANSAS ST Annexation L7-B $ 6.00
0292-201-39-0000 125 KANSAS ST Annexation L7-B $ 6.00
0292-201-40-0000 210 BUSINESS CENTER CT Annexation L7-B $ 6.00 0292-202-17-0000 298 KANSAS ST Annexation L10-A $ 6.00
0292-202-18-0000 KANSAS ST Annexation L10-A $ 6.00
0292-251-10-0000 1280 ALABAMA ST Annexation L12-G $ 6.00 0292-310-07-0000 633 AMIGOS DR Annexation L6-B $ 6.00
0292-310-36-0000 617 AMIGOS DR Annexation L7-F $ 6.00
0292-321-10-0000 1981 W LUGONIA AVE Annexation L4-G $ 6.00 0292-331-15-0000 1910 ORANGE TREE LN Annexation L5-E $ 6.00 0292-331-16-0000 1902 ORANGE TREE LN Annexation L5-E $ 6.00 0292-341-17-0000 1751 PLUM LN Annexation L12-I $ 6.00
0292-341-24-0000 1711 PLUM LN Annexation L11-A $ 6.00
0292-341-25-0000 1741 PLUM LN Annexation L11-A $ 6.00
0292-351-08-0000 1806 ORANGE TREE LN Annexation L11-C $ 6.00 0292-381-08-0000 1653 PLUM LN Annexation L6-G $ 6.00
0292-441-11-0000 1230 INDIANA CT Annexation L5-B $ 6.00 0292-441-12-0000 1226 INDIANA CT Annexation L5-B $ 6.00 0292-441-13-0000 1222 INDIANA CT Annexation L5-B $ 6.00 0292-441-14-0000 1214 INDIANA CT Annexation L5-B $ 6.00 0292-441-15-0000 1210 INDIANA CT Annexation L5-B $ 6.00 0293-172-16-0000 1500 BARTON RD Annexation L4-B $ 27.00 0293-172-17-0000 1536 BARTON RD Annexation L4-B $ 27.00 0293-172-18-0000 1500 BARTON RD Annexation L4-B $ 6.00
0293-421-01-0000 1809 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-02-0000 1812 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-03-0000 1810 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-04-0000 1808 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-05-0000 1806 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-06-0000 1804 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-07-0000 1802 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-08-0000 1800 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-09-0000 1746 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-10-0000 1744 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-11-0000 1742 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-12-0000 1740 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-13-0000 1738 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-14-0000 1736 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-15-0000 1734 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-16-0000 1732 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-17-0000 1730 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-18-0000 1726 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-19-0000 1724 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-20-0000 1720 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-21-0000 1716 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-22-0000 1706 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-23-0000 1700 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-24-0000 1701 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-25-0000 1703 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-26-0000 1705 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-27-0000 1707 MORNING DOVE LN Annexation L12-F $ 6.00 Fiscal Year 2026/27 Page 8 of 11
APN SITUS ADDRESS ANNEXATION CHARGE
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
0293-421-28-0000 1709 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-29-0000 1711 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-30-0000 1715 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-31-0000 1717 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-32-0000 1719 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-33-0000 1721 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-34-0000 1723 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-35-0000 1725 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-36-0000 1727 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-37-0000 1729 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-38-0000 1731 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-39-0000 1733 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-40-0000 1735 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-41-0000 1737 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-42-0000 1743 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-43-0000 1747 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-44-0000 1803 MORNING DOVE LN Annexation L12-F $ 6.00 0293-421-45-0000 1805 MORNING DOVE LN Annexation L12-F $ 6.00 0294-091-47-0000 SMILEY RIDGE Annexation L5-F $ 6.00
0294-091-48-0000 1821 SMILEY RIDGE Annexation L5-F $ 6.00 1212-041-01-0000 1021 E PIONEER AVE Annexation L10-F $ 6.00 1212-081-54-0000 1709 DEANNA Annexation L1-B $ 101.35
1212-081-55-0000 1711 DEANNA Annexation L1-B $ 101.35
1212-081-56-0000 1715 DEANNA Annexation L1-B $ 101.35
1212-081-57-0000 1719 DEANNA Annexation L1-B $ 101.35
1212-081-58-0000 1723 DEANNA Annexation L1-B $ 101.35
1212-081-59-0000 1727 DEANNA WY Annexation L1-B $ 101.35 1212-081-60-0000 1731 DEANNA Annexation L1-B $ 101.35
1212-081-61-0000 1712 DEANNA Annexation L1-B $ 101.35
1212-081-62-0000 1708 DEANNA Annexation L1-B $ 101.35
1212-141-01-0000 1009 DOYLE Annexation L1-A $ 92.57
1212-141-02-0000 1013 DOYLE Annexation L1-A $ 92.57
1212-141-03-0000 1017 DOYLE Annexation L1-A $ 92.57
1212-141-04-0000 1021 DOYLE Annexation L1-A $ 92.57
1212-141-05-0000 1025 DOYLE ST Annexation L1-A $ 92.57
1212-141-06-0000 1029 DOYLE Annexation L1-A $ 92.57
1212-141-07-0000 1033 DOYLE Annexation L1-A $ 92.57
1212-141-08-0000 1037 DOYLE AVE Annexation L1-A $ 92.57 1212-141-09-0000 1041 DOYLE Annexation L1-A $ 92.57
1212-141-10-0000 1045 DOYLE Annexation L1-A $ 92.57
1212-141-11-0000 1058 STICKNEY Annexation L1-A $ 92.57
1212-141-12-0000 1054 STICKNEY Annexation L1-A $ 92.57
1212-141-13-0000 1050 STICKNEY Annexation L1-A $ 92.57
1212-141-14-0000 1046 STICKNEY Annexation L1-A $ 92.57
1212-141-15-0000 1042 STICKNEY Annexation L1-A $ 92.57
1212-141-16-0000 1038 STICKNEY CIR Annexation L1-A $ 101.83 1212-141-17-0000 1034 STICKNEY Annexation L1-A $ 101.83 1212-141-18-0000 1030 STICKNEY DR Annexation L1-A $ 101.83 1212-141-19-0000 1026 STICKNEY CIR Annexation L1-A $ 101.83 1212-141-20-0000 1022 STICKNEY AVE Annexation L1-A $ 101.83 1212-141-21-0000 1018 STICKNEY Annexation L1-A $ 101.83 1212-141-22-0000 1014 STICKNEY Annexation L1-A $ 101.83 1212-141-23-0000 1010 STICKNEY Annexation L1-A $ 101.83 1212-141-24-0000 1006 STICKNEY Annexation L1-A $ 101.83 1212-141-25-0000 1007 STICKNEY Annexation L1-A $ 92.57
Fiscal Year 2026/27 Page 9 of 11
APN SITUS ADDRESS ANNEXATION CHARGE
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
1212-141-26-0000 1011 STICKNEY Annexation L1-A $ 92.57
1212-141-27-0000 1015 STICKNEY Annexation L1-A $ 92.57
1212-141-28-0000 1019 STICKNEY Annexation L1-A $ 92.57
1212-141-29-0000 1023 STICKNEY Annexation L1-A $ 92.57
1212-141-30-0000 1027 STICKNEY Annexation L1-A $ 92.57
1212-141-31-0000 1031 STICKNEY Annexation L1-A $ 92.57
1212-141-32-0000 1032 DOYLE Annexation L1-A $ 92.57
1212-141-33-0000 1028 DOYLE Annexation L1-A $ 92.57
1212-141-34-0000 1024 DOYLE AVE Annexation L1-A $ 92.57 1212-141-35-0000 1020 DOYLE Annexation L1-A $ 92.57
1212-141-36-0000 1016 DOYLE Annexation L1-A $ 92.57
1212-141-37-0000 1012 DOYLE Annexation L1-A $ 92.57
1212-141-38-0000 1008 DOYLE Annexation L1-A $ 92.57
1212-141-39-0000 1601 DEANNA Annexation L1-B $ 111.48
1212-141-40-0000 1605 DEANNA Annexation L1-B $ 101.35
1212-141-41-0000 1609 DEANNA Annexation L1-B $ 101.35
1212-141-42-0000 1613 DEANNA Annexation L1-B $ 101.35
1212-141-43-0000 1617 DEANNA Annexation L1-B $ 101.35
1212-141-44-0000 1621 DEANNA Annexation L1-B $ 101.35
1212-141-45-0000 1625 DEANNA Annexation L1-B $ 101.35
1212-141-46-0000 1701 DEANNA Annexation L1-B $ 101.35
1212-141-47-0000 1705 DEANNA Annexation L1-B $ 101.35
1212-141-48-0000 1704 DEANNA WY Annexation L1-B $ 101.35 1212-141-49-0000 1700 DEANNA Annexation L1-B $ 101.35
1212-141-50-0000 1622 DEANNA Annexation L1-B $ 101.35
1212-141-51-0000 1618 DEANNA Annexation L1-B $ 101.35
1212-141-52-0000 1614 DEANNA Annexation L1-B $ 101.35
1212-141-53-0000 1606 DEANNA Annexation L1-B $ 101.35
1212-141-54-0000 1602 DEANNA Annexation L1-B $ 111.48
1212-191-60-0000 1572 GROVE ST Annexation L4-W $ 6.00
1212-191-61-0000 1588 GROVE ST Annexation L4-W $ 6.00
1212-191-62-0000 1564 GROVE ST Annexation L4-W $ 6.00
1212-191-63-0000 1560 GROVE ST Annexation L4-W $ 6.00
1212-191-64-0000 1556 GROVE ST Annexation L4-W $ 6.00
1212-191-65-0000 1552 GROVE ST Annexation L4-W $ 6.00
1212-191-66-0000 1548 GROVE ST Annexation L4-W $ 6.00
1212-191-67-0000 1544 GROVE ST Annexation L4-W $ 6.00
1212-191-68-0000 1540 GROVE ST Annexation L4-W $ 6.00
1212-191-69-0000 1536 GROVE ST Annexation L4-W $ 6.00
1212-191-70-0000 1541 KELLY AVE Annexation L4-W $ 6.00
1212-191-71-0000 1545 KELLY AVE Annexation L4-W $ 6.00
1212-191-72-0000 1549 KELLY AVE Annexation L4-W $ 6.00
1212-191-73-0000 1553 KELLY AVE Annexation L4-W $ 6.00
1212-191-74-0000 1557 KELLY AVE Annexation L4-W $ 6.00
1212-191-75-0000 1561 KELLY ST Annexation L4-W $ 6.00
1212-191-76-0000 1565 KELLY ST Annexation L4-W $ 6.00
1212-191-77-0000 1569 KELLY ST Annexation L4-W $ 6.00
1212-191-78-0000 1573 KELLY ST Annexation L4-W $ 6.00
1212-191-79-0000 1577 KELLY ST Annexation L4-W $ 6.00
1212-201-01-0000 1572 NELSON ST Annexation L6-E $ 6.00
1212-201-02-0000 1568 NELSON ST Annexation L6-E $ 6.00
1212-201-03-0000 1560 NELSON ST Annexation L6-E $ 6.00
1212-201-04-0000 1556 NELSON ST Annexation L6-E $ 6.00
1212-201-05-0000 1552 NELSON ST Annexation L6-E $ 6.00
1212-201-06-0000 1548 NELSON ST Annexation L6-E $ 6.00
Fiscal Year 2026/27 Page 10 of 11
APN SITUS ADDRESS ANNEXATION CHARGE
City of Redlands
Landscape Maintenance District No. 1 - Appendix D
Fiscal Year 2026/27
Assessment Roll (Sorted by APN)
1212-201-07-0000 1540 NELSON ST Annexation L6-E $ 6.00
1212-201-08-0000 1536 NELSON ST Annexation L6-E $ 6.00
1212-201-09-0000 1528 NELSON ST Annexation L6-E $ 6.00
1212-201-10-0000 1524 NELSON ST Annexation L6-E $ 6.00
1212-201-11-0000 1520 NELSON ST Annexation L6-E $ 6.00
1212-201-12-0000 1346 PARADISE WY Annexation L6-E $ 6.00 1212-201-13-0000 1343 PENNSYLVANIA AVE Annexation L6-E $ 6.00 1212-201-14-0000 1349 PENNSYLVANIA AVE Annexation L6-E $ 6.00 1212-201-15-0000 1350 PARADISE WY Annexation L6-E $ 6.00 1212-201-16-0000 1354 PARADISE WY Annexation L6-E $ 6.00 1212-201-17-0000 1521 MORIARTY ST Annexation L6-E $ 6.00 1212-201-18-0000 1525 MORIARTY ST Annexation L6-E $ 6.00 1212-201-19-0000 1529 MORIARTY ST Annexation L6-E $ 6.00 1212-201-20-0000 1533 MORIARTY ST Annexation L6-E $ 6.00 1212-201-21-0000 1537 MORIARTY ST Annexation L6-E $ 6.00 1212-201-22-0000 1541 MORIARTY ST Annexation L6-E $ 6.00 1212-201-23-0000 1545 MORIARTY ST Annexation L6-E $ 6.00 1212-201-24-0000 1549 MORIARTY ST Annexation L6-E $ 6.00 1212-201-25-0000 1553 MORIARTY ST Annexation L6-E $ 6.00 1212-201-26-0000 1557 MORIARTY ST Annexation L6-E $ 6.00 1212-201-27-0000 1561 MORIARTY ST Annexation L6-E $ 6.00 Summary Fields Value
APN total count: 571
CHARGE total sum: $ 28,784.34
Fiscal Year 2026/27 Page 11 of 11
City Council AGENDA ITEM NO. K1.
DATE: June 16, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of a Memorandum of Understanding between the City of Redlands and the Redlands Association of Management Employees (Assistant City Manager McConnell) MOTION:
If the City Council determines that staff's recommendation is appropriate, the following motion is provided:
I move to approve the Memorandum of Understanding between the City of Redlands and the Redlands Association of Management Employees.
RECOMMENDATION:
Staff recommends the City Council approve the Memorandum of Understanding between the City of Redlands and the Redlands Association of Management Employees.
DISCUSSION:
The City's negotiating team and members of the Redlands Association of Management Employees (RAME) have met to negotiate their Memorandum of Understanding (MOU) for the period of July 1, 2026, through June 30, 2029.
The parties have reached an agreement and the attached MOU has been prepared for the City Council's consideration.
All unit members will receive a four percent (4%) salary increase for the first year of the contract and three percent (3%) salary increases in years two and three. Other changes include adding three additional steps (Steps 5, 6 and 7) at two and one-half percent (2.5%) each to the top of the RAME salary range, increases to bi-lingual pay, vision care reimbursement and medical contributions, and the ability to carry over up to twenty (20) hours of Executive Leave to the following year. Language revisions have also been made within the MOU for the purpose of clean-up and to reduce ambiguity and/or clarify how a benefit is administered.
ALTERNATIVES:
N/A
STRATEGIC PLAN:
N/A
SUBMITTED BY:
Jorge Castillo, HR Manager
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
James Garland, Interim Management Services/Finance Director Brian Foote, RAME President
PREPARED BY:
Sarah Redinger, HR Analyst
FISCAL IMPACT
Fiscal Year: FY2026-2027
Revenue Generating: No
Amount: $
Budgeted Y/N: Yes
Account No.: Various
Additional Appropriation Required: No
Discussion:
Funding for the the Memorandum of Understanding between the City of Redlands and the Redlands Association of Management Employees has been included in the FY 2027 and FY 2028 Proposed Biennial Budget.
Attachments
RAME_MOU_2026-2029.pdf
RAME_MOU_2026-2029.pdf
RAME_MOU_2026-2029.pdf
Redline--_RAME_MOU_2026-2029.pdf
57329543.1/006103.00033
MEMORANDUM OF UNDERSTANDING
BETWEEN THE
CITY OF REDLANDS
AND THE
REDLANDS ASSOCIATION OF
MANAGEMENT EMPLOYEES
JULY 1, 2026 - JUNE 30, 2029
City of Redlands | RAME MOU 2026-2029
RAME Approval _____
57329543.1/006103.00033
2 MEMORANDUM OF UNDERSTANDING
Between
The City of Redlands
And
Redlands Association of Management Employees
July 1, 2026 – June 30, 2029
TABLE OF CONTENTS
Article 1. Term of Memorandum of Understanding............................................................. 4 Article 2. Preamble............................................................................................................. 4 Article 3. Recognition ......................................................................................................... 4 Article 4. Salaries................................................................................................................ 4 Article 5. Retirement .......................................................................................................... 4 Article 6. Education Incentive Pay....................................................................................... 5 Article 7. Longevity Pay ...................................................................................................... 5 Article 8. Uniform Allowance.............................................................................................. 6 Article 9. Tuition Reimbursement ....................................................................................... 6 Article 10. Bilingual Pay ........................................................................................................ 6 Article 11. Death of Employee .............................................................................................. 6 Article 12. Health Insurance.................................................................................................. 7 Article 13. Dental Insurance.................................................................................................. 8 Article 14. Vision Care .......................................................................................................... 8 Article 15. Life Insurance ...................................................................................................... 8 Article 16. State Disability Insurance (SDI) ............................................................................ 8 Article 17. Vacation .............................................................................................................. 8 Article 18. Sick Leave ............................................................................................................ 9 Article 19. Deferred Compensation....................................................................................... 9 Article 20. 401 A Plan ........................................................................................................... 9 City of Redlands | RAME MOU 2026-2029
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3 Article 21. Vehicle Allowance.............................................................................................. 10 Article 22. Bereavement Leave ........................................................................................... 10 Article 23. Leave of Absence Without Pay........................................................................... 10 Article 24. Personal Leave................................................................................................... 10 Article 25. Executive Leave ................................................................................................. 10 Article 26. Holidays ............................................................................................................ 10 Article 27. Probation .......................................................................................................... 11 Article 28. Review/Evaluation Date .................................................................................... 11 Article 29. Performance Evaluations................................................................................... 12 Article 30. Disciplinary Procedure ....................................................................................... 12 Article 31. Grievance Procedure.......................................................................................... 16 Article 32. Demotion/Non-Disciplinary ............................................................................... 20 Article 33. Layoff Procedure ............................................................................................... 20 Article 34. Management Rights........................................................................................... 22 Article 35. Savings Clause ................................................................................................... 22 Article 36. Zipper Clause..................................................................................................... 22 Article 37. Signatures.......................................................................................................... 22 City of Redlands | RAME MOU 2026-2029
RAME Approval _____
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4 Article 1. TERM OF MEMORANDUM OF UNDERSTANDING
Except where expressly stated otherwise herein, the City of Redlands (“City”) and the Redlands Association of Management Employees (“Unit”) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 2026 and shall expire on June 30, 2029.
Article 2. PREAMBLE
It is the intent and purpose of this MOU to set forth the understanding of the parties reached as a result of meeting and conferring in good faith regarding, but not limited to, matters relating to the wages, hours, and terms and conditions of employment between the City and the Unit.
Article 3. RECOGNITION
A Unit employee shall be defined as an employee of the City and assigned to the Unit by the City Manager in accordance with City policies and procedures.
Article 4. SALARIES
A. All Unit employees shall receive the following salary increases:
1. Effective the first full pay period after July 1, 2026, all Unit employees will receive a four percent (4%) increase to base salary.
2. Effective the first full pay period after July 1, 2027, all Unit employees will receive a three percent (3%) increase to base salary over the prior year.
3. Effective the first full pay period after July 1, 2028, all Unit employees will receive a three percent (3%) increase to base salary over the prior year.
B. Compaction: A minimum salary differential of twenty percent (20%) shall be maintained between Management Unit classifications and Mid-Management Unit classifications. In the event there are increases to salaries in mid-management classifications that result in a differential less than twenty percent (20%) between mid-management unit classifications and the management Unit they report to, all management classifications shall be adjusted upward until the differential is maintained. The existing salary differentials within the management unit shall be maintained.
C. All Management Unit employees are responsible for the employee contribution to Social Security and Medicare.
D. Salary Range Restructure:
1. Effective the first full pay period after July 1, 2026, the City shall eliminate Step 0 on the salary range for each classification. Employees on Step 0 at that time shall immediately be placed on Step 1. For those employees being advanced to Step 1, service hours for the purpose of receiving their next merit increase shall not reset.
2. Effective the first full pay period after July 1, 2026, the City shall establish three new steps (Steps 5, 6 and 7) at the top of the salary range for each classification. Each of the new steps shall be two and a half percent (2.5%) higher than the preceding step.
3. Advancement to the new Steps 5, 6, and 7 shall continue to occur upon an employee’s anniversary date.
Article 5. RETIREMENT
A. Classic Members
1. All “classic” Unit employees shall personally fund 100% of the 7% of compensation earnable as and for the individual employee’s normal employee PERS contribution. (The City of Redlands | RAME MOU 2026-2029
RAME Approval _____
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5 term “classic” member is defined in the Public Employee’s Pension Reform Act of 2013 “PEPRA.”)
All “classic” employee normal contributions required to be paid by the employee, whether paid by the employer or the employee, shall be credited to the member’s CalPERS account.
Whether as authorized by Government Code § 20692, 20636(c)(4) or any other statutory or legal basis, the City shall not report to CalPERS as any type of compensation, any portion of the normal employee PERS contributions required by PERS which are funded by the employee.
2. The City shall continue to include in this contract with CalPERS, the following provisions:
HIGHEST SINGLE YEAR
SURVIVOR CONTINUANCE
2% @ 55 RETIREMENT FORMULA
B. New Members
1. The Public Employee’s Pension Reform Act of 2013 – “PEPRA” (signed by the Governor on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist, during and after the term of this MOU, as described below.
2. Unit employees who are “new members” as defined in the PEPRA, shall individually pay an initial member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for the Defined Benefit Plan in which said newly hired member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (Government Code section 7522.30)
3. Unit employees who are “new members,” as defined in the PEPRA, on and after January 1, 2013, shall be enrolled in the retirement plan of 2%@62 (Government Code section 7522.20(a), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a).) Article 6. EDUCATION INCENTIVE PAY
Unit employees will qualify for a three percent (3%) increase in base salary upon submitting satisfactory proof of a Master or Doctoral degree (i.e., official transcripts) where such degree is not required as part of the employee’s minimum job qualifications. If a Master’s degree is required as part of the employee’s minimum job qualifications, the employee will only be eligible for education incentive pay upon submitting satisfactory proof of a Doctoral degree.
Article 7. LONGEVITY PAY
A. Employees with ten (10) years continuous service with the City, shall receive compensation in the amount of three (3) percent of base salary, effective the beginning of the pay period closest to completion of their tenth (10th) year of service.
B. Employees with fifteen (15) years continuous service with the City, shall receive an additional two (2) percent, effective the beginning of the pay period closest to completion of their fifteenth (15th) year of service.
City of Redlands | RAME MOU 2026-2029
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6 C. The 10-year longevity percentages shall be compounded with the 15-year longevity pay. Incentives and leave cash out shall be calculated based on the combination of base salary and longevity pay.
Article 8. UNIFORM ALLOWANCE
The Fire Marshal who is on payroll at the time the check is issued shall receive a uniform allowance of eleven hundred dollars ($1,100) per year, with $550 paid in January, and $550 paid in July.
Article 9. TUITION REIMBURSEMENT
A. Unit employees shall be reimbursed up to the dollar amount charged for the same number of units per term by the University of California, Riverside. An employee shall not receive reimbursement in excess of five thousand dollars ($5,000) in any one fiscal year. The difference between the City’s maximum obligation during any fiscal year and the amount of any actual reimbursement received by the employee during that fiscal year shall not be carried over or be available to use by the employee in any subsequent fiscal year.
B. The course must be satisfactorily completed with a minimum grade of “C” or equivalent to qualify for reimbursement.
Article 10. BILINGUAL PAY
A. Eligible Unit employees will be compensated $75.00 per pay period for the performance of bilingual skills beginning the first pay period following certification by successful completion of a competency exam administered through the Human Resources Department or third party selected by the City.
B. Recommendation by the Department Head.
C. The determination of the number of employees designated to receive bi-lingual pay is at the sole discretion of the City.
D. Bilingual pay shall apply regardless of the frequency or total time required to perform translation duties.
E. In the event that a department head’s bilingual employees are not available and a bilingual need occurs, that department head may request that another department head loan a bilingual employee to that department to handle the bilingual need for the duration of the assignment.
F. In the event that an employee which is approved for bilingual pay receives a change in assignment, classification, job duties or is transferred or promoted, a determination may be made by the employee’s department head that bilingual skills are no longer required for use on the job and this benefit will be removed from the employee without right of appeal.
G. In the event that there are more bilingual employees in a department or location than are required by the City to provide this service, the City will determine a method whereby qualified employees can receive this compensation on a rotational basis.
H. The City reserves the right to determine the languages for which testing will be conducted.
I. The City reserves the right to determine where the use of employee bilingual skills would be best served.
J. The City may require employees to keep a log demonstrating that bilingual skills are being utilized.
K. An employee’s continuation in the bilingual program is subject to periodic evaluation and retesting.
L. Only employees granted bilingual pay shall be required to speak the designated language.
Article 11. DEATH OF EMPLOYEE
A. The eligible dependents of deceased Unit employees shall be entitled to benefits as follows:
City of Redlands | RAME MOU 2026-2029
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7 1. Sick leave accruals, lifetime medical insurance and other applicable benefits shall be calculated and/or compensated according to the eligibility requirements stated in the current MOU.
2. In the event the deceased employee qualified for a service retirement (i.e. age 50 and with a minimum of five (5) years of service with the City), the City shall calculate and/or compensate benefits in the same manner as an employee service retirement.
Article 12. HEALTH INSURANCE
A. The City shall contribute directly to CalPERS on behalf of each employee three hundred and ninetyseven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989. In addition, the City shall contribute an amount through the City’s cafeteria plan that is equal of the difference between the City’s minimum PEMHCA contribution and the following amounts:
B. City contributions to the cafeteria plan may be used toward available cafeteria benefits, including City medical plan premiums, flexible spending account, and post-employment health plan.
C. The City agrees to provide a stipend of $350, on a monthly basis, for those Unit employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.
D. Insurance Adjustment: In July of each year, the City shall pay each Unit employee a cash payment in the amount of one hundred and fifty dollars ($150) to offset the co-payments and deductibles for medical insurance plans.
E. Retiree Medical:
1. For all unit members who qualify as an “annuitant” under PEMHCA, the City will contribute directly to CalPERS on behalf of each annuitant three hundred and ninety-seven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989.
2. Upon service retirement and completion of fifteen (15) or more cumulative years of service with the City, a Unit employee hired prior to March 11, 2010, who qualifies as an annuitant under PEMHCA, may elect to receive as City contribution to a retiree health savings account the difference between the PEMHCA minimum and the cost of fully paid lifetime medical and dental insurance (excludes vision coverage) for the employee and eligible dependents, under the City’s medical and dental insurance programs, and may elect to convert accumulated sick leave to cash using the following formula, or have the option of converting 100% of accrued sick leave hours to service credit, or may use the following formula to convert accrued sick leave to cash and convert the remaining sick leave to service credit.
COMPLETED
YEARS OF SERVICE
CONVERSION
PERCENTAGE
10 - 15 25%
COVERAGE LEVEL
TOTAL CITY CONTRIBUTION
EFFECTIVE JULY 1, 2026
Employee Only: $900
Employee Plus One Dependent: $1,700
Employee plus Two or more
Dependents:
$2,200
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8 16 - 19 35%
20+ 50%
Unit employees hired on or after March 11, 2010 are not eligible for the lifetime medical benefit.
3. Unit members with ten (10) years of continuous employment with the City who concurrently retire from the City and the CalPERS system and who qualify as an annuitant under PEMHCA may elect to receive the “Medical Bridge.” Under the Medical Bridge, the City will contribute the difference between the PEMCHA minimum and the cost of single party coverage for the retired unit member only for the lowest cost medical and dental insurance plans as provided by the City to its then existing unit members until the member reaches the age of medicare eligibility at which time the benefit will cease and unit members will only receive the PEMHCA minimum contribution. Unit members who receive the medical bridge can select higher cost plans offered by the City to its then existing members and/or coverage for dependents, however, the additional cost for the plan or additional dependents shall be paid for by the unit member and not by the City.
Article 13. DENTAL INSURANCE
The City agrees to pay the full monthly premium for dental insurance under the City’s dental plan or its equivalent for each Unit employee and all eligible dependents.
Article 14. VISION CARE
The City agrees to reimburse each Unit employee up to four hundred dollars ($400) every fiscal year for the purchase of frames and lenses or contact lenses and the cost of eye examinations for the employee and/or his/her dependent.
Article 15. LIFE INSURANCE
The City shall contribute the monthly premium for term life insurance in the amount of twenty-five thousand dollars ($25,000) for all Unit employees. Employees may also purchase additional increments of life insurance at the City’s group rate at their own expense.
Article 16. STATE DISABILITY INSURANCE (SDI)
Unit employees shall be required to participate in State Disability Insurance at employees’ expense.
Article 17. VACATION
A. The vacation accrual for Unit employees shall be as follows:
YEARS/MONTHS OF SERVICE ANNUAL
ACCRUAL RATE – HOURS
0 – 4 (0-59 months) 80
5 – 6 (60-83 months) 120
7 – 9 (84-119 months) 140
10–14 (120-179 months) 160
15+ (180 months+) 200
The maximum vacation accrual leave balance shall be 1000 hours. Unit employees shall convert all hours over 800 each year to a qualified 401(a) retirement plan to the maximum allowed by law. The conversion shall occur in January each year.
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9 Article 18. SICK LEAVE
A. ACCRUAL: Unit employees shall receive eight (8) hours of sick leave per month.
B. USE: Employees may use up to half of their annual sick leave accrual, forty-eight (48) hours, to care for ill family members.
C. BUY BACK: In November of each calendar year, each Unit employee may elect to be paid at his/her current hourly rate for each sick leave day accumulated during the following calendar year in excess of six (6) sick leave days in November of the following year. A total of one (1) year’s accumulation, ninety-six (96) hours, must be on the books prior to any compensation being paid. This election is irrevocable and may not be changed once the election is made. Employees in the unit may also choose to accumulate all sick leave days, from calendar year to calendar year, to an unlimited amount.
D. CONVERSION TO CASH: Upon voluntary separation of service or layoff with the City, Unit employees with ten (10) years or more of continuous service shall be eligible to cash in unused sick leave at the following formula:
YEARS OF SERVICE PERCENT
10 – 15 25 %
16 – 20 35 %
21+ 50 %
E. UPON RETIREMENT: In lieu of the benefit D and upon retirement under the PERS retirement plan, Unit employees will have the option of: (1) converting one hundred percent (100%) of individual sick leave accruals to service credit; or, (2) Unit employees may elect to have all remaining sick leave accrued at the time of retirement converted to cash value at their final rate of pay, and deposited in the Post Employment Health Plan (PEHP) where it can be used for applicable premiums payable under the City’s medical insurance program for the employee and the employee’s eligible dependents. In the event that the employee dies prior to exhaustion of the cash value of said benefits, the remaining cash value may be applied toward the premiums of covered dependents until exhausted, subject to the conditions and limitations of the PEHP.
Article 19. DEFERRED COMPENSATION
The City shall provide a 457 (b) deferred compensation plan to Unit employees. Unit employees may make voluntary contributions to the 457 (b) plan up to the maximum allowed by law. Participation by Unit employees is optional and all other costs shall be borne by plan participants.
Article 20. 401 A PLAN
The City shall pay the costs to administer a 401(a) Retirement Plan. In January of each year, the City of Redlands makes an annual contribution to deferred compensation on behalf of each Unit employee in the amount of up to $1,125 per year + 3% of salary. The full contribution amount shall be provided based on a complete one year of service in the preceding year. For new Unit employees and employees transferring into the Unit, the amount shall be prorated on a monthly basis for period of service within Unit in the preceding year. In the event that an employee leaves the Unit, they shall receive a final City of Redlands | RAME MOU 2026-2029
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10 contribution in a prorated amount of up to $1,125 + 3% of salary based on their period of service in their final year in the Unit and shall not receive an additional contribution in January.
Upon retirement, Unit employees shall deposit the cash value of vacation leave, incentive payouts, floating holidays, and executive leave to the program in the maximum amount allowable.
Article 21. VEHICLE ALLOWANCE
The City may assign a City-owned vehicle to a Unit employee for use on City business. If assigned, a Cityowned vehicle may be used by employee for City business and for commuting to and from the employee’s residence within a forty (40) mile radius of the City of Redlands. The City shall incur all costs related to the provision of the vehicle, including maintenance and insurance. The employee shall be responsible for ensuring the City’s vehicle is appropriately secured when parked at the employee’s residence.
Article 22. BEREAVEMENT LEAVE
In the event of a death in the immediate family, an eligible Unit employees will be compensated with four (4) days paid leave. In addition, eligible employees may be allowed to use accrued sick leave with full pay not to exceed three (3) days. Immediate family shall be defined as the following relatives to either the employee or spouse or registered domestic partner: spouse, registered domestic partner, child (including foster child or ward of the court), parent, grandparent, brother, sister, niece, nephew, step-children, and grandchildren. The definition of immediate family will also include the aunt and uncle of the employee only. Bereavement leave may also be used for the significant other of the employee provided the employee shows proof of cohabitation.
Article 23. LEAVE OF ABSENCE WITHOUT PAY
If a Unit employee takes more than five (5) accumulated days of leave without pay in a calendar year, commencing at the beginning of the sixth (6th) day of leave without pay and any day of leave without pay thereafter during the calendar year; sick leave and vacation accruals will be adjusted proportionately to eliminate benefit accruals for any day an employee is on leave without pay status.
Article 24. PERSONAL LEAVE
Unit employees may use up to a maximum of eight (8) hours of accrued sick leave per year for personal leave, subject to advanced approval by his/her supervisor.
Article 25. EXECUTIVE LEAVE
Unit employees shall receive one hundred twenty (120) hours of Executive Leave annually for use during the calendar year. Any leave hours above twenty (20) hours on the books as of December 31 of each year, shall be removed and not carry over to the following year. During the term of the Agreement, the parties agree to meet to discuss potential modification of the amount of Executive Leave provided annually under this Agreement. The parties acknowledge that the City is under no obligation to make any modification to the amount of Executive Leave provided under this Agreement and that any inability to reach agreement shall not be subject to impasse resolution procedures.
Article 26. HOLIDAYS
A. The holidays which will be honored for Unit employees will include the following, along with any additional day as designated by action of the City Council:
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11 HOLIDAY DAY OBSERVED
New Year’s Day January 1
Martin Luther King Day Third Monday in January
President’s Day Third Monday in February
Farm Workers Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day First Monday in September
Columbus Day Second Monday in October
Veteran’s Day November 11
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day Friday after Thanksgiving Day Christmas Eve December 24
Christmas Day December 25
B. If the holiday falls on Saturday, Friday shall be designated as the holiday and if the holiday falls on Sunday, Monday shall be designated as the holiday. If a scheduled holiday falls on an employee’s regular day off, the employee shall bank the holiday at their regularly scheduled hours to be used at a later date. Employees should not be scheduled to work both the designated holiday and the actual holiday.
C. Holiday pay shall be compensated in accordance with the employee’s standard work schedule.
Employees on a 9-80 schedule shall bank 8 hours of holiday if the holiday lands on a closed Friday.
D. Unit employees are entitled to receive twenty hours of floating holidays annually. Floating holidays accrued but not taken are paid off during January of the year following the year in which the holidays were accrued.
E. The A.K. Smiley Public Library will be closed on the Saturday following Thanksgiving Day.
Article 27. PROBATION
A. Unit employees newly hired shall serve a probationary period of twelve (12) months.
B. Unit employees who are promoted shall serve a probationary period of six (6) months.
C. Probationary periods may be extended as set forth in the City's Personnel Rules and Regulations.
Article 28. REVIEW/EVALUATION DATE
For all Unit employees the “review/evaluation date” shall be the day of the month in which the employee completes twelve (12) months of employment. When an employee receives a promotion, the new review/evaluation date shall be the day of the month in which the employee completes six (6) months of employment in the new classification. When a salary increase is granted, it shall be effective on the beginning of the pay period falling closest to the day of the month the employee was hired or promoted.
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12 Article 29. PERFORMANCE EVALUATIONS
In cases where a performance evaluation has not been received by a Unit employee within 30 days of the eligibility date, the employee should contact the supervisor, who must complete and file the evaluation within ten (10) working days.
Article 30. DISCIPLINARY PROCEDURE
A. The Investigatory Interview Process
Prior to any investigatory interview or consultation between an employee and the Department Head or City Manager, that could reasonably be construed to result in disciplinary action against the employee, the employee shall be given notice of the interview or consultation as soon as reasonably practical, and shall be advised of his or her right to representation under this section; and upon request shall be afforded an opportunity to contact and consult privately with a representative of the Unit. If requested, the employee may have Unit representative present during any such investigatory interview or consultation, and, to the extent practicable, such interviews or consultations shall be conducted during an employee’s working hours. Only those persons reasonably necessary to the conduct of the interview shall be present.
The employee or the City may elect to record any such investigatory interview or consultation, unless the parties mutually agree not to record such interview or consultation; however, in the event the City elects to record such an interview or consultation, it shall upon request provide the employee with a copy of said recording. The cost of providing a copy of the recording to the employee shall be borne by the employee.
B. Disciplinary Procedures
No employee who has successfully completed probation, shall be disciplined without cause.
Disciplinary action shall be defined to include: oral warnings, written reprimands, suspensions, demotions (non-probationary), reduction in pay and discharge. Oral and written reprimands may be initiated at the supervisor/Division Manager level. Disciplinary action more serious than a written reprimand must be initiated at the Department Head level.
1. Notice of Proposed Action
Whenever an employee is to be discharged, suspended (for more than five (5) working days) demoted (non-probationary), or reduced in step, for disciplinary purposes, written notice of at least five (5)1 days of the proposed disciplinary action shall be given before such action is to be taken and must include:
a. Notice of proposed action;
b. Reasons for proposed action;
c. A copy of charges stating specific incidents or specific courses of conduct, e.g. as evidenced by work performance evaluations, and a copy of the written materials upon which the decision to take proposed disciplinary action is based; and
d. A notice to the employee of the right to respond in writing or orally within the five (5) day period.
1 Unless specifically noted to be "working days," any reference to days is calendar days.
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13 In the case of a suspension of five (5) working days or less, the foregoing procedures shall be afforded the employee either before or during the suspension, or within a reasonable time thereafter.
2. Limitations and Exceptions
a. Oral notice is insufficient as full notice to an employee and may be given only as the initial notice in extraordinary circumstances which call for immediate action. b. Prior written notice is required in each case, unless provided otherwise herein, regardless of seriousness unless extraordinary circumstances are involved. c. Employees may be suspended without prior written notice in extraordinary circumstances when it is essential to avert harm to the public, other employees, or to avert serious disruption of governmental business. The appointing authority may schedule an employee for vacation or holiday leave as the circumstances may warrant. Extraordinary circumstances include but are not limited to situations involving misappropriation of public funds or property; working while under the influence of alcohol or intoxicating drugs; open insubordination; commission of a crime involving moral turpitude punishable by imprisonment for six (6) months or more; and disruption of City business through willful misconduct (altercations, etc.). d. Oral notice is insufficient as full notice for proposed disciplinary action. In extraordinary circumstances when immediate suspension, demotion, removal, or reduction in step is warranted, initial notice may be given orally. The employee should be told when the initial action is taken what the reasons for the actions are and, in addition, the employee will have an opportunity to respond in writing and/or orally to those charges. The written charges in the case of an immediate disciplinary action must be prepared as soon as possible and normally within a day or two (2) of the initial oral notice.
3. Employee's Response to Proposed Discipline
a. An employee receiving a Notice of Proposed action shall have the right to respond to a Department Head from a different Department. An employee’s opportunity to respond to the Department Head is not intended to be an adversary hearing. An employee has the right to have a representative of his/her own choosing at the meeting. The employee shall not be accorded the opportunity to cross-examine a department’s witnesses, nor to present a formal case in opposition to the proposed discipline. However, the limited nature of this response does not obviate the Department Head’s responsibility to initiate further investigation if the employee’s version of the facts raises doubts as to the accuracy of the Department Head’s information leading to the discipline proposal. An employee may elect not to respond, thereby waiving any further pre-disciplinary response.
b. The Department Head from a different Department will evaluate the proposed discipline in light of the employee’s response, if any. Within ten (10) days of the employee’s response, or deadline for response, a decision will be transmitted in writing to the employee. Service of the decision will be in person or by mail.
4. City Manager Level Appeal
a. Any permanent employee shall have the right to appeal any termination, suspension, reduction in salary, or non-probationary demotion. The appeal process shall not be applicable to those positions which may be deemed exempt or to probationary employees. The appeal process shall not be applicable to verbal and written reprimands, probationary demotions, City of Redlands | RAME MOU 2026-2029
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14 performance evaluations and denial of performance increases. An employee desiring to appeal the Department Head’s decision shall have ten (10) days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the City Manager and received in the City Manager’s office so that same is date stamped by the City Manager’s office within the ten (10) day period.
b. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the Department Head shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the City Manager, an appeal meeting shall be scheduled.
c. The meeting with the City Manager shall be conducted in the same manner as the Response to Proposed Discipline set forth in paragraph 2(C) above. d. The City Manager will evaluate the discipline in light of the employee’s response, if any. Within ten (10) days of the employee’s response a decision will be transmitted in writing to the employee. Service of the decision will be in person or by mail.
5. Advisory Arbitration
a. An employee desiring to appeal the City Manager's decision shall have ten (10) days after receipt of the response to file an appeal. The employee's request for appeal must be addressed to the City Manager and received in the City Manager's office so that same is date stamped by the City Manager’s office within the ten (10) day period. b. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the City Manager shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the City Manager, an appeal hearing shall be established as follows:
i. The California State Mediation and Conciliation Service shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee.
Within ten (10) days following receipt of the list of hearing officers, the parties shall confer to select the hearing officer. The parties shall alternately strike one (1) name from the list of hearing officers (the right to strike the first name to be determined by lot) until one (1) name remains, and that person shall be the hearing officer. ii. Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the City Manager. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. iii. All hearings shall be private provided, however, that the hearing officer shall, at the request of the employee, open the hearing to the public. iv. Subpoenas and subpoenas duces tecum pertaining to a hearing shall be issued at the request of either party, not less than seven (7) days, prior to the commencement of such hearing. After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
v. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, City of Redlands | RAME MOU 2026-2029
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15 regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence. vi. Each party shall have these rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the employee does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary. vii. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:
1. The party imposing discipline shall be permitted to make an opening statement;
2. The appealing party shall then be permitted to make an opening statement;
3. The party imposing disciplinary action shall produce the evidence on his/her part; the City bears the burden of proof and burden of producing evidence;
4. The party appealing from such disciplinary action may then open his/her defense and offer his/her evidence in support thereof; the employee bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
5. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case;
6. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
i. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. His/her decision shall set forth which charges, if any, are sustained and the reasons therefore. The opinion shall set forth findings of fact and conclusions. ii. The hearing officer may recommend sustaining or rejecting any or all of the charges filed against the employee. He/she may recommend sustaining, rejecting, or modifying the City of Redlands | RAME MOU 2026-2029
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16 disciplinary action invoked against the employee. He/she may not recommend discipline more stringent than that issued by the City Manager.
iii. The hearing officer’s opinion and recommendation shall be filed with the City Council, with a copy sent to the charged employee, and shall set forth his/her findings and recommendations. If it is a dismissal hearing and a dismissal is not the hearing officer’s recommendation, the opinion shall set forth the date the employee is recommended to be reinstated and/or other recommended action. The reinstatement date, if appropriate, may be any time on or after the date of disciplinary action. iv. Within sixty (60) days of the receipt of the hearing officer’s findings, recommendation, and transcript, the City Council shall adopt, amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision which modifies or rejects the recommendation of the hearing officer, the City Council shall order and read the transcript of the hearing. Prior to making a decision which supports the hearing officer, the City Council may order and read the transcript, at its option. The City Council shall not conduct a de novo hearing. The City Council may, at its option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Council shall be final and conclusive. Copies of the City Council’s decision, including the hearing officer’s recommendation(s), shall be filed where appropriate, including the employee’s personnel file, unless no discipline is upheld by the City Council.
v. Each party shall equally bear the cost and fees of the hearing officer, the cost of facilities, the court reporter and transcripts. Each party shall bear its own witness and attorney fees.
If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties which result in a hearing officer fee.
vi. In the case of suspension, demotion, reduction in salary, or dismissal prescribed by the City Council, the time of such suspension, demotion or dismissal shall be effective from the first day after such delivery of said decision or shall relate back to and be effective as of the date the employee was disciplined pending hearing before and decision by the City Council, whichever is applicable. If discipline imposed resulted in loss of pay, and the decision results in reduction or elimination of loss of pay, the pay loss shall be restored to the employee based on the number of standard work hours lost computed at his/her then base hourly rate.
vii. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.
Article 31. GRIEVANCE PROCEDURE
A. Definition
A “grievance” is a formal, written allegation by a grievant that he/she has been adversely affected by an existing violation, misinterpretation or misapplication of the specific provisions of the Memorandum of Understanding, provisions of the Personnel Rules and Regulations, and/or written City Policy. Other matters for which a special method of review is provided by law, ordinance, resolution, or by administrative regulations and procedures of the City, are not within the scope of City of Redlands | RAME MOU 2026-2029
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17 this procedure. This procedure is not to be used in lieu of the Disciplinary Appeal Procedure set forth in Article 27.
B. Procedure
1. Every effort shall be made to resolve a grievance through discussion between the employee and his/her immediate supervisor. It is the spirit and intent of this procedure that all grievances are settled quickly and fairly without subsequent discrimination against employees who may seek to adjust a grievance. Every effort should be made to find an acceptable solution at the lowest level of supervision. Within fifteen (15) days2 after a grievant knew, or by reasonable diligence should have known, of the condition upon which a grievance may be based, the grievant shall attempt to resolve it by an informal conference with the grievant’ s immediate supervisor. A supervisor shall render a verbal decision within seven (7) days of the conclusion of the informal conference.
2. If the problem cannot be resolved between the employee and the supervisor, the employee may, within seven (7) days from the date of receiving the answer from his/her supervisor, file a written grievance and request a meeting with the Division Manager, if one exists, in order to discuss the grievance. The written grievance shall contain the following information:
a. Name of grievant and job title;
b. Department/Section;
c. Clear and concise statement of the nature of the grievance including the circumstances and dates involved;
d. The specific provision(s) of the M.O.U., City Policy or Personnel rules alleged to have been violated;
e. Requested remedy;
f. Name of the grievant’s Labor Representative, if any; and g. Date and signature of the grievant or Labor Representative.
3. The Division Manager shall render a decision and comments in writing and return them to the grievant within ten (10) days after receiving the written grievance.
4. If the Division Manager and employee cannot reach a solution to the grievance (or if a Division Manager does not exist), the employee may, within seven (7) days from the date of receiving the answer from the Division Manager, request, in writing, a meeting with the Department Head.
5. The Department Head shall render his/her decision in writing within fifteen (15) days of receiving the appeal. If the Department Head and employee are unable to arrive at a satisfactory solution, the employee may, within ten (10) days from the date of the decision by the Department Head, submit a written appeal to the Human Resources Director.
6. The City Manager shall review the grievance and respond to the employee within twenty (20) days of receiving the appeal. The response shall be in writing.
7. An employee desiring to appeal the City Manager's decision shall have ten (10) days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the Human Resources Director and received in the Human Resources office so that same is date stamped by the Human Resources office within the ten (10) day period.
8. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the grievance shall be considered conclusive as set forth in the City Manager's decision and shall take effect as prescribed. If within the ten (10) day appeal period, 2 Days refer to calendar days.
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18 the employee involved files such notice of appeal by giving written notice of appeal to the Human Resources Director, an appeal hearing shall be established as follows:
a. The California State Mediation and Conciliation Service shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee. Within ten (10) days following receipt of the list of hearing officers, the parties shall confer to select the hearing officer. The parties shall alternately strike one (1) name from the list of hearing officers (the right to strike the first name to be determined by lot) until one (1) name remains, and that person shall be the hearing officer.
b. Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the Human Resources Director. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. c. All hearings shall be private provided, however, that the hearing officer shall, at the request of the grievant, open the hearing to the public.
d. Subpoenas and subpoenas duces tecum pertaining to a hearing shall be issued at the request of either party, not less than seven (7) days, prior to the commencement of such hearing.
After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
e. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence.
f. Each party shall have these rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the grievant does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary. g. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:
i. The grievant shall be permitted to make an opening statement; ii. The City shall then be permitted to make an opening statement; iii. The grievant shall produce the evidence on his/her part; the grievant bears the burden of proof and burden of producing evidence;
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19 iv. The City may then open its defense and offer its evidence in support thereof; the City bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
v. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case; vi. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
h. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. The opinion shall set forth findings of fact and conclusions.
i. The hearing officer may recommend sustaining or rejecting any or all of the grievance. j. The hearing officer’s opinion and recommendation shall be filed with the Human Resources Director, with a copy sent to the grievant, and shall set forth his/her findings and recommendations.
k. Within sixty (60) days of the receipt of the hearing officer’s findings recommendation, and transcript, the City Council shall adopt, amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision which modifies or rejects the recommendation of the hearing officer, the City Council shall order and read the transcript of the hearing. Prior to making a decision which supports the hearing officer, the City Council may order and read the transcript, at its option. The City Council shall not conduct a de novo hearing. The City Council may, at its option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Council shall be final and conclusive. Copies of the City Council’s decision, including the hearing officer’s recommendation(s) shall be filed where appropriate, including the grievant's personnel file.
l. Each party shall bear equally the cost of facilities, fees and expenses of the hearing officer, including the court reporter and transcripts. Each party shall bear its own witness and attorney fees. If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties which result in an arbitration fee. m. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.
9. If the time limits for employees’ appeals at any step should elapse, the grievance shall be considered withdrawn. Time limits may be extended by mutual consent. If the City fails to respond within the prescribed time limits, the grievance will be deemed to have been denied and the employee may go to the next step. If the City Manager fails to respond within the prescribed City of Redlands | RAME MOU 2026-2029
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20 time limit, the grievance will be deemed to have been denied and the employee will be deemed to have exhausted his/her administrative remedy.
10. The employee may request the assistance of another person of his/her own choosing in preparing and presenting his/her grievance at any level of review. In the event the employee desires the presence of a representative who is an employee of the City, he/she shall make such request through the supervisor and the supervisor shall make the necessary arrangements for the employee representative to be present.
11. The employee and/or his/her representative may use a reasonable amount of work time as determined by the appropriate supervisor or Department Head in presenting the grievance.
However, no employee shall absent himself/herself without first being excused by his/her supervisor.
12. No employee shall be required to be represented by an employee organization in processing a grievance.
13. Employees shall be assured freedom from reprisal for using the grievance procedures by both the City and the employee organization.
14. The settlement terms of a grievance which is processed by an employee individually or by a recognized employee organization shall not conflict with the express provisions of a Memorandum of Understanding between the City and the formally recognized employee organization for such unit.
15. A group grievance may be filed when one (1) set of circumstances or occurrences affects more than one (1) employee in the same manner or to the same extent. The group may file one (1) document which all members of the group have read and signed. Members of the group shall be limited to those who have signed the grievance. The resolution of a group grievance may not be consistent among all employees in the group grievance due to differences in the circumstances or occurrences that brought about the grievance.
16. A group grievance affecting all members of an employee organization may be brought by the employee organization itself. In such case the procedure shall be commenced directly at the City Manager level within fifteen (15) days after authorized representatives of the employee organization knew, or by reasonable diligence should have known, of the condition giving rise to the grievance and shall be subject to all applicable time limitations and the provisions set forth above.
Article 32. DEMOTION/NON-DISCIPLINARY
Unit employees who are demoted due to layoff or other non-disciplinary reasons will be required to serve a new probationary period in the lower classification, provided they have not held regular status in the lower classification previously. While serving this new probationary period, the employee will retain due process rights and cannot be disciplined or terminated from City service without due process.
Article 33. LAYOFF PROCEDURE
A. Should the City Manager determine reductions in force to be necessary due to lack of work or for financial reasons, he/she may initiate Layoffs. Classifications to be affected and the number of employees included will be determined by the City.
B. In determining the order of Layoffs, a combination of factors shall be considered, including but not limited to: qualifications, productivity, general performance, seniority with the City of Redlands, seniority in job classification, and needs of the City. Variations from the order of Layoffs and recall from Layoff may occur when the City deems such variations appropriate under the circumstances.
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21 C. The factors the City, in its discretion, may use to determine include but are not limited to the following:
1. An employee's last four performance evaluations, if any;
2. Any history of employee commendations, awards, etc.;
3. Any history of employee disciplinary action;
4. Attendance record, including tardiness and unexcused absences;
5. Safety record, including personal injury and damage to city property;
6. Probationary and temporary employees shall be laid off before a regular employee in the same classification;
7. Between two regular appointees in the same classification with the same skills, abilities, qualifications, merit and/or record, the employee with lesser seniority in the classification may be laid off first;
8. Between two regular appointees in the same classification the employee with lesser skills, abilities, qualifications, merit and\or record may be laid off first, without regard to seniority;
9. Memoranda of Understanding ("MOU") between the City and affected bargaining units.
D. BUMPING
1. “Bumping” means the displacement of an employee from his/her position by an employee in a higher classification who formerly held the same position.
2. Where two or more employees are laid off from the same position, the employee with the greatest seniority in that classification shall have the first opportunity to bump as set forth below.
3. A laid-off employee shall be entitled to bump an employee in the same position previously held by the laid off employee. Alternatively, an employee may "bump" into a position in a different department which he/she held within the prior five (5) years. The laid off employee must be able to perform the essential job functions of the former position and possess the minimum qualifications of the position as specified by the job classification specification. A laid-off employee shall not bump an employee with greater skills, abilities, qualifications, merit and/or record. Laid off employees may also be placed in a vacant lower classification for which they meet the minimum qualifications. Employees must utilize the option that places them in the highest available position.
4. A laid-off employee shall be entitled to bump an employee in a lower position directly managed by the laid-off employee. The laid-off employee must be able to perform the essential job functions of the lower position and possess the minimum qualifications of the position as specified by the job classification. Employees must utilize the option that places them in the highest position.
5. The City will notify laid-off employees of any positions available for bumping. Following such notification, the employee must notify the Human Resources Director in writing of his/her intent to exercise the bumping rights within seven (7) calendar days, and the position and classification in to which he/she intends to bump. Failure to provide such notification will be deemed a waiver of bumping rights by the employee.
6. Where there is more than one employee in a position available for bumping, the factors in paragraph C of this Section will be used to determine which employee, if any, will be bumped.
7. The process will be repeated at the next classification level where an employee bumps in and creates an overage in that classification.
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22 8. Any displaced employee shall be considered as laid-off for the same reason as the person who displaced them and shall in the same manner be eligible to displace another employee based on the criteria specified in paragraph C of this Section.
E. REINSTATEMENT FROM LAYOFF
1. The names of probationary and regular employees who have been laid off shall be placed on appropriate reemployment lists. Such names shall remain thereon for a period of one year unless such persons are sooner reemployed.
2. When a reemployment list is to be used to fill vacancies, the Human Resources Director shall certify from such lists the number of names equal to the number of vacancies. An employee who is reemployed shall receive credit for former service for purposes of seniority, benefit compensation, and salary advancement.
3. Employees who, following layoff from a position or layoff from City employment may be reinstated upon the recommendation of the Department Head and with the approval of the Human Resources Director, to the position from which they were laid off based on their qualifications, availability, and the needs of the organization pursuant to this paragraph.
Article 34. MANAGEMENT RIGHTS
Management rights shall consist of the exclusive right to determine the mission of its constituent departments, commissions, boards; set standards of service; determine the procedures and standards of selection for employment and promotion; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficient of work; maintain the efficient of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; determine the content of job classifications; take all necessary actions to carry out its mission in emergencies; exercise complete control and discretion over its organization and the technology of performing its work.
Article 35. SAVINGS CLAUSE
If any provision of this MOU, or the application of any provision, should be rendered invalid by court or legislative action, the remaining portions of this Agreement shall remain in full force and effect.
Article 36. ZIPPER CLAUSE
The parties agree that all negotiable items have been discussed during negotiations leading to this MOU, including salaries and benefits, and conditions of employment and therefore further agree that negotiations will not be reopened on any item during the life of this MOU except my mutual agreement or as provided elsewhere in this MOU.
Article 37. SIGNATURES
CITY OF REDLANDS
REDLANDS ASSOCIATION OF
MANAGEMENT EMPLOYEES - RAME
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23 MARIO SAUCEDO , MAYOR BRIAN FOOTE, PRESIDENT DATE
DONALD YOUNG, VICE PRESIDENT DATE
ADOPTED, SIGNED AND APPROVED THIS 16TH DAY
OF JUNE 2026
ATTEST:
_______________________________________
Jeanne Donaldson, City Clerk
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MEMORANDUM OF UNDERSTANDING
BETWEEN THE
CITY OF REDLANDS
AND THE
REDLANDS ASSOCIATION OF
MANAGEMENT EMPLOYEES
JULY 1, 2026 - JUNE 30, 2029
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2 MEMORANDUM OF UNDERSTANDING
Between
The City of Redlands
And
Redlands Association of Management Employees
July 1, 2026 – June 30, 2029
TABLE OF CONTENTS
Article 1. Term of Memorandum of Understanding............................................................. 4 Article 2. Preamble............................................................................................................. 4 Article 3. Recognition ......................................................................................................... 4 Article 4. Salaries................................................................................................................ 4 Article 5. Retirement .......................................................................................................... 4 Article 6. Education Incentive Pay....................................................................................... 5 Article 7. Longevity Pay ...................................................................................................... 5 Article 8. Uniform Allowance.............................................................................................. 6 Article 9. Tuition Reimbursement ....................................................................................... 6 Article 10. Bilingual Pay ........................................................................................................ 6 Article 11. Death of Employee .............................................................................................. 6 Article 12. Health Insurance.................................................................................................. 7 Article 13. Dental Insurance.................................................................................................. 8 Article 14. Vision Care .......................................................................................................... 8 Article 15. Life Insurance ...................................................................................................... 8 Article 16. State Disability Insurance (SDI) ............................................................................ 8 Article 17. Vacation .............................................................................................................. 8 Article 18. Sick Leave ............................................................................................................ 9 Article 19. Deferred Compensation....................................................................................... 9 Article 20. 401 A Plan ........................................................................................................... 9 City of Redlands | RAME MOU 2026-2029
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3 Article 21. Vehicle Allowance.............................................................................................. 10 Article 22. Bereavement Leave ........................................................................................... 10 Article 23. Leave of Absence Without Pay........................................................................... 10 Article 24. Personal Leave................................................................................................... 10 Article 25. Executive Leave ................................................................................................. 10 Article 26. Holidays ............................................................................................................ 10 Article 27. Probation .......................................................................................................... 11 Article 28. Review/Evaluation Date .................................................................................... 11 Article 29. Performance Evaluations................................................................................... 12 Article 30. Disciplinary Procedure ....................................................................................... 12 Article 31. Grievance Procedure.......................................................................................... 16 Article 32. Demotion/Non-Disciplinary ............................................................................... 20 Article 33. Layoff Procedure ............................................................................................... 20 Article 34. Management Rights........................................................................................... 22 Article 35. Savings Clause ................................................................................................... 22 Article 36. Zipper Clause..................................................................................................... 22 Article 37. Signatures.......................................................................................................... 22 City of Redlands | RAME MOU 2026-2029
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4 Article 1. TERM OF MEMORANDUM OF UNDERSTANDING
Except where expressly stated otherwise herein, the City of Redlands (“City”) and the Redlands Association of Management Employees (“Unit”) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 2026 and shall expire on June 30, 2029.
Article 2. PREAMBLE
It is the intent and purpose of this MOU to set forth the understanding of the parties reached as a result of meeting and conferring in good faith regarding, but not limited to, matters relating to the wages, hours, and terms and conditions of employment between the City and the Unit.
Article 3. RECOGNITION
A Unit employee shall be defined as an employee of the City and assigned to the Unit by the City Manager in accordance with City policies and procedures.
Article 4. SALARIES
A. All Unit employees shall receive the following salary increases:
1. Effective the first full pay period after July 1, 2026, all Unit employees will receive a four percent (4%) increase to base salary.
2. Effective the first full pay period after July 1, 2027, all Unit employees will receive a three percent (3%) increase to base salary over the prior year.
3. Effective the first full pay period after July 1, 2028, all Unit employees will receive a three percent (3%) increase to base salary over the prior year.
B. Compaction: A minimum salary differential of twenty percent (20%) shall be maintained between Management Unit classifications and Mid-Management Unit classifications. In the event there are increases to salaries in mid-management classifications that result in a differential less than twenty percent (20%) between mid-management unit classifications and the management Unit they report to, all management classifications shall be adjusted upward until the differential is maintained. The existing salary differentials within the management unit shall be maintained.
C. All Management Unit employees are responsible for the employee contribution to Social Security and Medicare.
D. Salary Range Restructure:
1. Effective the first full pay period after July 1, 2026, the City shall eliminate Step 0 on the salary range for each classification. Employees on Step 0 at that time shall immediately be placed on Step 1. For those employees being advanced to Step 1, service hours for the purpose of receiving their next merit increase shall not reset.
2. Effective the first full pay period after July 1, 2026, the City shall establish three new steps (Steps 5, 6 and 7) at the top of the salary range for each classification. Each of the new steps shall be two and a half percent (2.5%) higher than the preceding step.
3. Advancement to the new Steps 5, 6, and 7 shall continue to occur upon an employee’s anniversary date.
Article 5. RETIREMENT
A. Classic Members
1. All “classic” Unit employees shall personally fund 100% of the 7% of compensation earnable as and for the individual employee’s normal employee PERS contribution. (The City of Redlands | RAME MOU 2026-2029
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5 term “classic” member is defined in the Public Employee’s Pension Reform Act of 2013 “PEPRA.”)
All “classic” employee normal contributions required to be paid by the employee, whether paid by the employer or the employee, shall be credited to the member’s CalPERS account.
Whether as authorized by Government Code § 20692, 20636(c)(4) or any other statutory or legal basis, the City shall not report to CalPERS as any type of compensation, any portion of the normal employee PERS contributions required by PERS which are funded by the employee.
2. The City shall continue to include in this contract with CalPERS, the following provisions:
HIGHEST SINGLE YEAR
SURVIVOR CONTINUANCE
2% @ 55 RETIREMENT FORMULA
B. New Members
1. The Public Employee’s Pension Reform Act of 2013 – “PEPRA” (signed by the Governor on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist, during and after the term of this MOU, as described below.
2. Unit employees who are “new members” as defined in the PEPRA, shall individually pay an initial member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for the Defined Benefit Plan in which said newly hired member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (Government Code section 7522.30)
3. Unit employees who are “new members,” as defined in the PEPRA, on and after January 1, 2013, shall be enrolled in the retirement plan of 2%@62 (Government Code section 7522.20(a), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a).) Article 6. EDUCATION INCENTIVE PAY
Unit employees will qualify for a three percent (3%) increase in base salary upon submitting satisfactory proof of a Master or Doctoral degree (i.e., official transcripts) where such degree is not required as part of the employee’s minimum job qualifications. If a Master’s degree is required as part of the employee’s minimum job qualifications, the employee will only be eligible for education incentive pay upon submitting satisfactory proof of a Doctoral degree.
Article 7. LONGEVITY PAY
A. Employees with ten (10) years continuous service with the City, shall receive compensation in the amount of three (3) percent of base salary, effective the beginning of the pay period closest to completion of their tenth (10th) year of service.
B. Employees with fifteen (15) years continuous service with the City, shall receive an additional two (2) percent, effective the beginning of the pay period closest to completion of their fifteenth (15th) year of service.
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6 C. The 10-year longevity percentages shall be compounded with the 15-year longevity pay. Incentives and leave cash out shall be calculated based on the combination of base salary and longevity pay.
Article 8. UNIFORM ALLOWANCE
The Fire Marshal who is on payroll at the time the check is issued shall receive a uniform allowance of eleven hundred dollars ($1,100) per year, with $550 paid in January, and $550 paid in July.
Article 9. TUITION REIMBURSEMENT
A. Unit employees shall be reimbursed up to the dollar amount charged for the same number of units per term by the University of California, Riverside. An employee shall not receive reimbursement in excess of five thousand dollars ($5,000) in any one fiscal year. The difference between the City’s maximum obligation during any fiscal year and the amount of any actual reimbursement received by the employee during that fiscal year shall not be carried over or be available to use by the employee in any subsequent fiscal year.
B. The course must be satisfactorily completed with a minimum grade of “C” or equivalent to qualify for reimbursement.
Article 10. BILINGUAL PAY
A. Eligible Unit employees will be compensated $75.00 per pay period for the performance of bilingual skills beginning the first pay period following certification by successful completion of a competency exam administered through the Human Resources Department or third party selected by the City.
B. Recommendation by the Department Head.
C. The determination of the number of employees designated to receive bi-lingual pay is at the sole discretion of the City.
D. Bilingual pay shall apply regardless of the frequency or total time required to perform translation duties.
E. In the event that a department head’s bilingual employees are not available and a bilingual need occurs, that department head may request that another department head loan a bilingual employee to that department to handle the bilingual need for the duration of the assignment.
F. In the event that an employee which is approved for bilingual pay receives a change in assignment, classification, job duties or is transferred or promoted, a determination may be made by the employee’s department head that bilingual skills are no longer required for use on the job and this benefit will be removed from the employee without right of appeal.
G. In the event that there are more bilingual employees in a department or location than are required by the City to provide this service, the City will determine a method whereby qualified employees can receive this compensation on a rotational basis.
H. The City reserves the right to determine the languages for which testing will be conducted.
I. The City reserves the right to determine where the use of employee bilingual skills would be best served.
J. The City may require employees to keep a log demonstrating that bilingual skills are being utilized.
K. An employee’s continuation in the bilingual program is subject to periodic evaluation and retesting.
L. Only employees granted bilingual pay shall be required to speak the designated language.
Article 11. DEATH OF EMPLOYEE
A. The eligible dependents of deceased Unit employees shall be entitled to benefits as follows:
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7 1. Sick leave accruals, lifetime medical insurance and other applicable benefits shall be calculated and/or compensated according to the eligibility requirements stated in the current MOU.
2. In the event the deceased employee qualified for a service retirement (i.e. age 50 and with a minimum of five (5) years of service with the City), the City shall calculate and/or compensate benefits in the same manner as an employee service retirement.
Article 12. HEALTH INSURANCE
A. The City shall contribute directly to CalPERS on behalf of each employee three hundred and ninetyseven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989. In addition, the City shall contribute an amount through the City’s cafeteria plan that is equal of the difference between the City’s minimum PEMHCA contribution and the following amounts:
B. City contributions to the cafeteria plan may be used toward available cafeteria benefits, including City medical plan premiums, flexible spending account, and post-employment health plan.
C. The City agrees to provide a stipend of $350, on a monthly basis, for those Unit employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.
D. Insurance Adjustment: In July of each year, the City shall pay each Unit employee a cash payment in the amount of one hundred and fifty dollars ($150) to offset the co-payments and deductibles for medical insurance plans.
E. Retiree Medical:
1. For all unit members who qualify as an “annuitant” under PEMHCA, the City will contribute directly to CalPERS on behalf of each annuitant three hundred and ninety-seven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989.
2. Upon service retirement and completion of fifteen (15) or more cumulative years of service with the City, a Unit employee hired prior to March 11, 2010, who qualifies as an annuitant under PEMHCA, may elect to receive as City contribution to a retiree health savings account the difference between the PEMHCA minimum and the cost of fully paid lifetime medical and dental insurance (excludes vision coverage) for the employee and eligible dependents, under the City’s medical and dental insurance programs, and may elect to convert accumulated sick leave to cash using the following formula, or have the option of converting 100% of accrued sick leave hours to service credit, or may use the following formula to convert accrued sick leave to cash and convert the remaining sick leave to service credit.
COMPLETED
YEARS OF SERVICE
CONVERSION
PERCENTAGE
10 - 15 25%
COVERAGE LEVEL
TOTAL CITY CONTRIBUTION
EFFECTIVE JULY 1, 2026
Employee Only: $900
Employee Plus One Dependent: $1,700
Employee plus Two or more
Dependents:
$2,200
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8 16 - 19 35%
20+ 50%
Unit employees hired on or after March 11, 2010 are not eligible for the lifetime medical benefit.
3. Unit members with ten (10) years of continuous employment with the City who concurrently retire from the City and the CalPERS system and who qualify as an annuitant under PEMHCA may elect to receive the “Medical Bridge.” Under the Medical Bridge, the City will contribute the difference between the PEMCHA minimum and the cost of single party coverage for the retired unit member only for the lowest cost medical and dental insurance plans as provided by the City to its then existing unit members until the member reaches the age of medicare eligibility at which time the benefit will cease and unit members will only receive the PEMHCA minimum contribution. Unit members who receive the medical bridge can select higher cost plans offered by the City to its then existing members and/or coverage for dependents, however, the additional cost for the plan or additional dependents shall be paid for by the unit member and not by the City.
Article 13. DENTAL INSURANCE
The City agrees to pay the full monthly premium for dental insurance under the City’s dental plan or its equivalent for each Unit employee and all eligible dependents.
Article 14. VISION CARE
The City agrees to reimburse each Unit employee up to four hundred dollars ($400) every fiscal year for the purchase of frames and lenses or contact lenses and the cost of eye examinations for the employee and/or his/her dependent.
Article 15. LIFE INSURANCE
The City shall contribute the monthly premium for term life insurance in the amount of twenty-five thousand dollars ($25,000) for all Unit employees. Employees may also purchase additional increments of life insurance at the City’s group rate at their own expense.
Article 16. STATE DISABILITY INSURANCE (SDI)
Unit employees shall be required to participate in State Disability Insurance at employees’ expense.
Article 17. VACATION
A. The vacation accrual for Unit employees shall be as follows:
YEARS/MONTHS OF SERVICE ANNUAL
ACCRUAL RATE – HOURS
0 – 4 (0-59 months) 80
5 – 6 (60-83 months) 120
7 – 9 (84-119 months) 140
10–14 (120-179 months) 160
15+ (180 months+) 200
The maximum vacation accrual leave balance shall be 1000 hours. Unit employees shall convert all hours over 800 each year to a qualified 401(a) retirement plan to the maximum allowed by law. The conversion shall occur in January each year.
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9 Article 18. SICK LEAVE
A. ACCRUAL: Unit employees shall receive eight (8) hours of sick leave per month.
B. USE: Employees may use up to half of their annual sick leave accrual, forty-eight (48) hours, to care for ill family members.
C. BUY BACK: In November of each calendar year, each Unit employee may elect to be paid at his/her current hourly rate for each sick leave day accumulated during the following calendar year in excess of six (6) sick leave days in November of the following year. A total of one (1) year’s accumulation, ninety-six (96) hours, must be on the books prior to any compensation being paid. This election is irrevocable and may not be changed once the election is made. Employees in the unit may also choose to accumulate all sick leave days, from calendar year to calendar year, to an unlimited amount.
D. CONVERSION TO CASH: Upon voluntary separation of service or layoff with the City, Unit employees with ten (10) years or more of continuous service shall be eligible to cash in unused sick leave at the following formula:
YEARS OF SERVICE PERCENT
10 – 15 25 %
16 – 20 35 %
21+ 50 %
E. UPON RETIREMENT: In lieu of the benefit D and upon retirement under the PERS retirement plan, Unit employees will have the option of: (1) converting one hundred percent (100%) of individual sick leave accruals to service credit; or, (2) Unit employees may elect to have all remaining sick leave accrued at the time of retirement converted to cash value at their final rate of pay, and deposited in the Post Employment Health Plan (PEHP) where it can be used for applicable premiums payable under the City’s medical insurance program for the employee and the employee’s eligible dependents. In the event that the employee dies prior to exhaustion of the cash value of said benefits, the remaining cash value may be applied toward the premiums of covered dependents until exhausted, subject to the conditions and limitations of the PEHP.
Article 19. DEFERRED COMPENSATION
The City shall provide a 457 (b) deferred compensation plan to Unit employees. Unit employees may make voluntary contributions to the 457 (b) plan up to the maximum allowed by law. Participation by Unit employees is optional and all other costs shall be borne by plan participants.
Article 20. 401 A PLAN
The City shall pay the costs to administer a 401(a) Retirement Plan. In January of each year, the City of Redlands makes an annual contribution to deferred compensation on behalf of each Unit employee in the amount of up to $1,125 per year + 3% of salary. The full contribution amount shall be provided based on a complete one year of service in the preceding year. For new Unit employees and employees transferring into the Unit, the amount shall be prorated on a monthly basis for period of service within Unit in the preceding year. In the event that an employee leaves the Unit, they shall receive a final City of Redlands | RAME MOU 2026-2029
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10 contribution in a prorated amount of up to $1,125 + 3% of salary based on their period of service in their final year in the Unit and shall not receive an additional contribution in January.
Upon retirement, Unit employees shall deposit the cash value of vacation leave, incentive payouts, floating holidays, and executive leave to the program in the maximum amount allowable.
Article 21. VEHICLE ALLOWANCE
The City may assign a City-owned vehicle to a Unit employee for use on City business. If assigned, a Cityowned vehicle may be used by employee for City business and for commuting to and from the employee’s residence within a forty (40) mile radius of the City of Redlands. The City shall incur all costs related to the provision of the vehicle, including maintenance and insurance. The employee shall be responsible for ensuring the City’s vehicle is appropriately secured when parked at the employee’s residence.
Article 22. BEREAVEMENT LEAVE
In the event of a death in the immediate family, an eligible Unit employees will be compensated with four (4) days paid leave. In addition, eligible employees may be allowed to use accrued sick leave with full pay not to exceed three (3) days. Immediate family shall be defined as the following relatives to either the employee or spouse or registered domestic partner: spouse, registered domestic partner, child (including foster child or ward of the court), parent, grandparent, brother, sister, niece, nephew, step-children, and grandchildren. The definition of immediate family will also include the aunt and uncle of the employee only. Bereavement leave may also be used for the significant other of the employee provided the employee shows proof of cohabitation.
Article 23. LEAVE OF ABSENCE WITHOUT PAY
If a Unit employee takes more than five (5) accumulated days of leave without pay in a calendar year, commencing at the beginning of the sixth (6th) day of leave without pay and any day of leave without pay thereafter during the calendar year; sick leave and vacation accruals will be adjusted proportionately to eliminate benefit accruals for any day an employee is on leave without pay status.
Article 24. PERSONAL LEAVE
Unit employees may use up to a maximum of eight (8) hours of accrued sick leave per year for personal leave, subject to advanced approval by his/her supervisor.
Article 25. EXECUTIVE LEAVE
Unit employees shall receive one hundred twenty (120) hours of Executive Leave annually for use during the calendar year. Any leave hours above twenty (20) hours on the books as of December 31 of each year, shall be removed and not carry over to the following year. During the term of the Agreement, the parties agree to meet to discuss potential modification of the amount of Executive Leave provided annually under this Agreement. The parties acknowledge that the City is under no obligation to make any modification to the amount of Executive Leave provided under this Agreement and that any inability to reach agreement shall not be subject to impasse resolution procedures.
Article 26. HOLIDAYS
A. The holidays which will be honored for Unit employees will include the following, along with any additional day as designated by action of the City Council:
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11 HOLIDAY DAY OBSERVED
New Year’s Day January 1
Martin Luther King Day Third Monday in January
President’s Day Third Monday in February
Farm Workers Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day First Monday in September
Columbus Day Second Monday in October
Veteran’s Day November 11
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day Friday after Thanksgiving Day Christmas Eve December 24
Christmas Day December 25
B. If the holiday falls on Saturday, Friday shall be designated as the holiday and if the holiday falls on Sunday, Monday shall be designated as the holiday. If a scheduled holiday falls on an employee’s regular day off, the employee shall bank the holiday at their regularly scheduled hours to be used at a later date. Employees should not be scheduled to work both the designated holiday and the actual holiday.
C. Holiday pay shall be compensated in accordance with the employee’s standard work schedule.
Employees on a 9-80 schedule shall bank 8 hours of holiday if the holiday lands on a closed Friday.
D. Unit employees are entitled to receive twenty hours of floating holidays annually. Floating holidays accrued but not taken are paid off during January of the year following the year in which the holidays were accrued.
E. The A.K. Smiley Public Library will be closed on the Saturday following Thanksgiving Day.
Article 27. PROBATION
A. Unit employees newly hired shall serve a probationary period of twelve (12) months.
B. Unit employees who are promoted shall serve a probationary period of six (6) months.
C. Probationary periods may be extended as set forth in the City's Personnel Rules and Regulations.
Article 28. REVIEW/EVALUATION DATE
For all Unit employees the “review/evaluation date” shall be the day of the month in which the employee completes twelve (12) months of employment. When an employee receives a promotion, the new review/evaluation date shall be the day of the month in which the employee completes six (6) months of employment in the new classification. When a salary increase is granted, it shall be effective on the beginning of the pay period falling closest to the day of the month the employee was hired or promoted.
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12 Article 29. PERFORMANCE EVALUATIONS
In cases where a performance evaluation has not been received by a Unit employee within 30 days of the eligibility date, the employee should contact the supervisor, who must complete and file the evaluation within ten (10) working days.
Article 30. DISCIPLINARY PROCEDURE
A. The Investigatory Interview Process
Prior to any investigatory interview or consultation between an employee and the Department Head or City Manager, that could reasonably be construed to result in disciplinary action against the employee, the employee shall be given notice of the interview or consultation as soon as reasonably practical, and shall be advised of his or her right to representation under this section; and upon request shall be afforded an opportunity to contact and consult privately with a representative of the Unit. If requested, the employee may have Unit representative present during any such investigatory interview or consultation, and, to the extent practicable, such interviews or consultations shall be conducted during an employee’s working hours. Only those persons reasonably necessary to the conduct of the interview shall be present.
The employee or the City may elect to record any such investigatory interview or consultation, unless the parties mutually agree not to record such interview or consultation; however, in the event the City elects to record such an interview or consultation, it shall upon request provide the employee with a copy of said recording. The cost of providing a copy of the recording to the employee shall be borne by the employee.
B. Disciplinary Procedures
No employee who has successfully completed probation, shall be disciplined without cause.
Disciplinary action shall be defined to include: oral warnings, written reprimands, suspensions, demotions (non-probationary), reduction in pay and discharge. Oral and written reprimands may be initiated at the supervisor/Division Manager level. Disciplinary action more serious than a written reprimand must be initiated at the Department Head level.
1. Notice of Proposed Action
Whenever an employee is to be discharged, suspended (for more than five (5) working days) demoted (non-probationary), or reduced in step, for disciplinary purposes, written notice of at least five (5)1 days of the proposed disciplinary action shall be given before such action is to be taken and must include:
a. Notice of proposed action;
b. Reasons for proposed action;
c. A copy of charges stating specific incidents or specific courses of conduct, e.g. as evidenced by work performance evaluations, and a copy of the written materials upon which the decision to take proposed disciplinary action is based; and
d. A notice to the employee of the right to respond in writing or orally within the five (5) day period.
1 Unless specifically noted to be "working days," any reference to days is calendar days.
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13 In the case of a suspension of five (5) working days or less, the foregoing procedures shall be afforded the employee either before or during the suspension, or within a reasonable time thereafter.
2. Limitations and Exceptions
a. Oral notice is insufficient as full notice to an employee and may be given only as the initial notice in extraordinary circumstances which call for immediate action. b. Prior written notice is required in each case, unless provided otherwise herein, regardless of seriousness unless extraordinary circumstances are involved. c. Employees may be suspended without prior written notice in extraordinary circumstances when it is essential to avert harm to the public, other employees, or to avert serious disruption of governmental business. The appointing authority may schedule an employee for vacation or holiday leave as the circumstances may warrant. Extraordinary circumstances include but are not limited to situations involving misappropriation of public funds or property; working while under the influence of alcohol or intoxicating drugs; open insubordination; commission of a crime involving moral turpitude punishable by imprisonment for six (6) months or more; and disruption of City business through willful misconduct (altercations, etc.). d. Oral notice is insufficient as full notice for proposed disciplinary action. In extraordinary circumstances when immediate suspension, demotion, removal, or reduction in step is warranted, initial notice may be given orally. The employee should be told when the initial action is taken what the reasons for the actions are and, in addition, the employee will have an opportunity to respond in writing and/or orally to those charges. The written charges in the case of an immediate disciplinary action must be prepared as soon as possible and normally within a day or two (2) of the initial oral notice.
3. Employee's Response to Proposed Discipline
a. An employee receiving a Notice of Proposed action shall have the right to respond to a Department Head from a different Department. An employee’s opportunity to respond to the Department Head is not intended to be an adversary hearing. An employee has the right to have a representative of his/her own choosing at the meeting. The employee shall not be accorded the opportunity to cross-examine a department’s witnesses, nor to present a formal case in opposition to the proposed discipline. However, the limited nature of this response does not obviate the Department Head’s responsibility to initiate further investigation if the employee’s version of the facts raises doubts as to the accuracy of the Department Head’s information leading to the discipline proposal. An employee may elect not to respond, thereby waiving any further pre-disciplinary response.
b. The Department Head from a different Department will evaluate the proposed discipline in light of the employee’s response, if any. Within ten (10) days of the employee’s response, or deadline for response, a decision will be transmitted in writing to the employee. Service of the decision will be in person or by mail.
4. City Manager Level Appeal
a. Any permanent employee shall have the right to appeal any termination, suspension, reduction in salary, or non-probationary demotion. The appeal process shall not be applicable to those positions which may be deemed exempt or to probationary employees. The appeal process shall not be applicable to verbal and written reprimands, probationary demotions, City of Redlands | RAME MOU 2026-2029
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14 performance evaluations and denial of performance increases. An employee desiring to appeal the Department Head’s decision shall have ten (10) days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the City Manager and received in the City Manager’s office so that same is date stamped by the City Manager’s office within the ten (10) day period.
b. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the Department Head shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the City Manager, an appeal meeting shall be scheduled.
c. The meeting with the City Manager shall be conducted in the same manner as the Response to Proposed Discipline set forth in paragraph 2(C) above. d. The City Manager will evaluate the discipline in light of the employee’s response, if any. Within ten (10) days of the employee’s response a decision will be transmitted in writing to the employee. Service of the decision will be in person or by mail.
5. Advisory Arbitration
a. An employee desiring to appeal the City Manager's decision shall have ten (10) days after receipt of the response to file an appeal. The employee's request for appeal must be addressed to the City Manager and received in the City Manager's office so that same is date stamped by the City Manager’s office within the ten (10) day period. b. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the City Manager shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the City Manager, an appeal hearing shall be established as follows:
i. The California State Mediation and Conciliation Service shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee.
Within ten (10) days following receipt of the list of hearing officers, the parties shall confer to select the hearing officer. The parties shall alternately strike one (1) name from the list of hearing officers (the right to strike the first name to be determined by lot) until one (1) name remains, and that person shall be the hearing officer. ii. Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the City Manager. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. iii. All hearings shall be private provided, however, that the hearing officer shall, at the request of the employee, open the hearing to the public. iv. Subpoenas and subpoenas duces tecum pertaining to a hearing shall be issued at the request of either party, not less than seven (7) days, prior to the commencement of such hearing. After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
v. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, City of Redlands | RAME MOU 2026-2029
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15 regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence. vi. Each party shall have these rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the employee does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary. vii. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:
1. The party imposing discipline shall be permitted to make an opening statement;
2. The appealing party shall then be permitted to make an opening statement;
3. The party imposing disciplinary action shall produce the evidence on his/her part; the City bears the burden of proof and burden of producing evidence;
4. The party appealing from such disciplinary action may then open his/her defense and offer his/her evidence in support thereof; the employee bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
5. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case;
6. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
i. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. His/her decision shall set forth which charges, if any, are sustained and the reasons therefore. The opinion shall set forth findings of fact and conclusions. ii. The hearing officer may recommend sustaining or rejecting any or all of the charges filed against the employee. He/she may recommend sustaining, rejecting, or modifying the City of Redlands | RAME MOU 2026-2029
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16 disciplinary action invoked against the employee. He/she may not recommend discipline more stringent than that issued by the City Manager.
iii. The hearing officer’s opinion and recommendation shall be filed with the City Council, with a copy sent to the charged employee, and shall set forth his/her findings and recommendations. If it is a dismissal hearing and a dismissal is not the hearing officer’s recommendation, the opinion shall set forth the date the employee is recommended to be reinstated and/or other recommended action. The reinstatement date, if appropriate, may be any time on or after the date of disciplinary action. iv. Within sixty (60) days of the receipt of the hearing officer’s findings, recommendation, and transcript, the City Council shall adopt, amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision which modifies or rejects the recommendation of the hearing officer, the City Council shall order and read the transcript of the hearing. Prior to making a decision which supports the hearing officer, the City Council may order and read the transcript, at its option. The City Council shall not conduct a de novo hearing. The City Council may, at its option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Council shall be final and conclusive. Copies of the City Council’s decision, including the hearing officer’s recommendation(s), shall be filed where appropriate, including the employee’s personnel file, unless no discipline is upheld by the City Council.
v. Each party shall equally bear the cost and fees of the hearing officer, the cost of facilities, the court reporter and transcripts. Each party shall bear its own witness and attorney fees.
If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties which result in a hearing officer fee.
vi. In the case of suspension, demotion, reduction in salary, or dismissal prescribed by the City Council, the time of such suspension, demotion or dismissal shall be effective from the first day after such delivery of said decision or shall relate back to and be effective as of the date the employee was disciplined pending hearing before and decision by the City Council, whichever is applicable. If discipline imposed resulted in loss of pay, and the decision results in reduction or elimination of loss of pay, the pay loss shall be restored to the employee based on the number of standard work hours lost computed at his/her then base hourly rate.
vii. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.
Article 31. GRIEVANCE PROCEDURE
A. Definition
A “grievance” is a formal, written allegation by a grievant that he/she has been adversely affected by an existing violation, misinterpretation or misapplication of the specific provisions of the Memorandum of Understanding, provisions of the Personnel Rules and Regulations, and/or written City Policy. Other matters for which a special method of review is provided by law, ordinance, resolution, or by administrative regulations and procedures of the City, are not within the scope of City of Redlands | RAME MOU 2026-2029
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17 this procedure. This procedure is not to be used in lieu of the Disciplinary Appeal Procedure set forth in Article 27.
B. Procedure
1. Every effort shall be made to resolve a grievance through discussion between the employee and his/her immediate supervisor. It is the spirit and intent of this procedure that all grievances are settled quickly and fairly without subsequent discrimination against employees who may seek to adjust a grievance. Every effort should be made to find an acceptable solution at the lowest level of supervision. Within fifteen (15) days2 after a grievant knew, or by reasonable diligence should have known, of the condition upon which a grievance may be based, the grievant shall attempt to resolve it by an informal conference with the grievant’ s immediate supervisor. A supervisor shall render a verbal decision within seven (7) days of the conclusion of the informal conference.
2. If the problem cannot be resolved between the employee and the supervisor, the employee may, within seven (7) days from the date of receiving the answer from his/her supervisor, file a written grievance and request a meeting with the Division Manager, if one exists, in order to discuss the grievance. The written grievance shall contain the following information:
a. Name of grievant and job title;
b. Department/Section;
c. Clear and concise statement of the nature of the grievance including the circumstances and dates involved;
d. The specific provision(s) of the M.O.U., City Policy or Personnel rules alleged to have been violated;
e. Requested remedy;
f. Name of the grievant’s Labor Representative, if any; and g. Date and signature of the grievant or Labor Representative.
3. The Division Manager shall render a decision and comments in writing and return them to the grievant within ten (10) days after receiving the written grievance.
4. If the Division Manager and employee cannot reach a solution to the grievance (or if a Division Manager does not exist), the employee may, within seven (7) days from the date of receiving the answer from the Division Manager, request, in writing, a meeting with the Department Head.
5. The Department Head shall render his/her decision in writing within fifteen (15) days of receiving the appeal. If the Department Head and employee are unable to arrive at a satisfactory solution, the employee may, within ten (10) days from the date of the decision by the Department Head, submit a written appeal to the Human Resources Director.
6. The City Manager shall review the grievance and respond to the employee within twenty (20) days of receiving the appeal. The response shall be in writing.
7. An employee desiring to appeal the City Manager's decision shall have ten (10) days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the Human Resources Director and received in the Human Resources office so that same is date stamped by the Human Resources office within the ten (10) day period.
8. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the grievance shall be considered conclusive as set forth in the City Manager's decision and shall take effect as prescribed. If within the ten (10) day appeal period, 2 Days refer to calendar days.
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18 the employee involved files such notice of appeal by giving written notice of appeal to the Human Resources Director, an appeal hearing shall be established as follows:
a. The California State Mediation and Conciliation Service shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee. Within ten (10) days following receipt of the list of hearing officers, the parties shall confer to select the hearing officer. The parties shall alternately strike one (1) name from the list of hearing officers (the right to strike the first name to be determined by lot) until one (1) name remains, and that person shall be the hearing officer.
b. Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the Human Resources Director. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. c. All hearings shall be private provided, however, that the hearing officer shall, at the request of the grievant, open the hearing to the public.
d. Subpoenas and subpoenas duces tecum pertaining to a hearing shall be issued at the request of either party, not less than seven (7) days, prior to the commencement of such hearing.
After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
e. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence.
f. Each party shall have these rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the grievant does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary. g. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:
i. The grievant shall be permitted to make an opening statement; ii. The City shall then be permitted to make an opening statement; iii. The grievant shall produce the evidence on his/her part; the grievant bears the burden of proof and burden of producing evidence;
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19 iv. The City may then open its defense and offer its evidence in support thereof; the City bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
v. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case; vi. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
h. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. The opinion shall set forth findings of fact and conclusions.
i. The hearing officer may recommend sustaining or rejecting any or all of the grievance. j. The hearing officer’s opinion and recommendation shall be filed with the Human Resources Director, with a copy sent to the grievant, and shall set forth his/her findings and recommendations.
k. Within sixty (60) days of the receipt of the hearing officer’s findings recommendation, and transcript, the City Council shall adopt, amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision which modifies or rejects the recommendation of the hearing officer, the City Council shall order and read the transcript of the hearing. Prior to making a decision which supports the hearing officer, the City Council may order and read the transcript, at its option. The City Council shall not conduct a de novo hearing. The City Council may, at its option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Council shall be final and conclusive. Copies of the City Council’s decision, including the hearing officer’s recommendation(s) shall be filed where appropriate, including the grievant's personnel file.
l. Each party shall bear equally the cost of facilities, fees and expenses of the hearing officer, including the court reporter and transcripts. Each party shall bear its own witness and attorney fees. If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties which result in an arbitration fee. m. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.
9. If the time limits for employees’ appeals at any step should elapse, the grievance shall be considered withdrawn. Time limits may be extended by mutual consent. If the City fails to respond within the prescribed time limits, the grievance will be deemed to have been denied and the employee may go to the next step. If the City Manager fails to respond within the prescribed City of Redlands | RAME MOU 2026-2029
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20 time limit, the grievance will be deemed to have been denied and the employee will be deemed to have exhausted his/her administrative remedy.
10. The employee may request the assistance of another person of his/her own choosing in preparing and presenting his/her grievance at any level of review. In the event the employee desires the presence of a representative who is an employee of the City, he/she shall make such request through the supervisor and the supervisor shall make the necessary arrangements for the employee representative to be present.
11. The employee and/or his/her representative may use a reasonable amount of work time as determined by the appropriate supervisor or Department Head in presenting the grievance.
However, no employee shall absent himself/herself without first being excused by his/her supervisor.
12. No employee shall be required to be represented by an employee organization in processing a grievance.
13. Employees shall be assured freedom from reprisal for using the grievance procedures by both the City and the employee organization.
14. The settlement terms of a grievance which is processed by an employee individually or by a recognized employee organization shall not conflict with the express provisions of a Memorandum of Understanding between the City and the formally recognized employee organization for such unit.
15. A group grievance may be filed when one (1) set of circumstances or occurrences affects more than one (1) employee in the same manner or to the same extent. The group may file one (1) document which all members of the group have read and signed. Members of the group shall be limited to those who have signed the grievance. The resolution of a group grievance may not be consistent among all employees in the group grievance due to differences in the circumstances or occurrences that brought about the grievance.
16. A group grievance affecting all members of an employee organization may be brought by the employee organization itself. In such case the procedure shall be commenced directly at the City Manager level within fifteen (15) days after authorized representatives of the employee organization knew, or by reasonable diligence should have known, of the condition giving rise to the grievance and shall be subject to all applicable time limitations and the provisions set forth above.
Article 32. DEMOTION/NON-DISCIPLINARY
Unit employees who are demoted due to layoff or other non-disciplinary reasons will be required to serve a new probationary period in the lower classification, provided they have not held regular status in the lower classification previously. While serving this new probationary period, the employee will retain due process rights and cannot be disciplined or terminated from City service without due process.
Article 33. LAYOFF PROCEDURE
A. Should the City Manager determine reductions in force to be necessary due to lack of work or for financial reasons, he/she may initiate Layoffs. Classifications to be affected and the number of employees included will be determined by the City.
B. In determining the order of Layoffs, a combination of factors shall be considered, including but not limited to: qualifications, productivity, general performance, seniority with the City of Redlands, seniority in job classification, and needs of the City. Variations from the order of Layoffs and recall from Layoff may occur when the City deems such variations appropriate under the circumstances.
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21 C. The factors the City, in its discretion, may use to determine include but are not limited to the following:
1. An employee's last four performance evaluations, if any;
2. Any history of employee commendations, awards, etc.;
3. Any history of employee disciplinary action;
4. Attendance record, including tardiness and unexcused absences;
5. Safety record, including personal injury and damage to city property;
6. Probationary and temporary employees shall be laid off before a regular employee in the same classification;
7. Between two regular appointees in the same classification with the same skills, abilities, qualifications, merit and/or record, the employee with lesser seniority in the classification may be laid off first;
8. Between two regular appointees in the same classification the employee with lesser skills, abilities, qualifications, merit and\or record may be laid off first, without regard to seniority;
9. Memoranda of Understanding ("MOU") between the City and affected bargaining units.
D. BUMPING
1. “Bumping” means the displacement of an employee from his/her position by an employee in a higher classification who formerly held the same position.
2. Where two or more employees are laid off from the same position, the employee with the greatest seniority in that classification shall have the first opportunity to bump as set forth below.
3. A laid-off employee shall be entitled to bump an employee in the same position previously held by the laid off employee. Alternatively, an employee may "bump" into a position in a different department which he/she held within the prior five (5) years. The laid off employee must be able to perform the essential job functions of the former position and possess the minimum qualifications of the position as specified by the job classification specification. A laid-off employee shall not bump an employee with greater skills, abilities, qualifications, merit and/or record. Laid off employees may also be placed in a vacant lower classification for which they meet the minimum qualifications. Employees must utilize the option that places them in the highest available position.
4. A laid-off employee shall be entitled to bump an employee in a lower position directly managed by the laid-off employee. The laid-off employee must be able to perform the essential job functions of the lower position and possess the minimum qualifications of the position as specified by the job classification. Employees must utilize the option that places them in the highest position.
5. The City will notify laid-off employees of any positions available for bumping. Following such notification, the employee must notify the Human Resources Director in writing of his/her intent to exercise the bumping rights within seven (7) calendar days, and the position and classification in to which he/she intends to bump. Failure to provide such notification will be deemed a waiver of bumping rights by the employee.
6. Where there is more than one employee in a position available for bumping, the factors in paragraph C of this Section will be used to determine which employee, if any, will be bumped.
7. The process will be repeated at the next classification level where an employee bumps in and creates an overage in that classification.
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22 8. Any displaced employee shall be considered as laid-off for the same reason as the person who displaced them and shall in the same manner be eligible to displace another employee based on the criteria specified in paragraph C of this Section.
E. REINSTATEMENT FROM LAYOFF
1. The names of probationary and regular employees who have been laid off shall be placed on appropriate reemployment lists. Such names shall remain thereon for a period of one year unless such persons are sooner reemployed.
2. When a reemployment list is to be used to fill vacancies, the Human Resources Director shall certify from such lists the number of names equal to the number of vacancies. An employee who is reemployed shall receive credit for former service for purposes of seniority, benefit compensation, and salary advancement.
3. Employees who, following layoff from a position or layoff from City employment may be reinstated upon the recommendation of the Department Head and with the approval of the Human Resources Director, to the position from which they were laid off based on their qualifications, availability, and the needs of the organization pursuant to this paragraph.
Article 34. MANAGEMENT RIGHTS
Management rights shall consist of the exclusive right to determine the mission of its constituent departments, commissions, boards; set standards of service; determine the procedures and standards of selection for employment and promotion; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficient of work; maintain the efficient of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; determine the content of job classifications; take all necessary actions to carry out its mission in emergencies; exercise complete control and discretion over its organization and the technology of performing its work.
Article 35. SAVINGS CLAUSE
If any provision of this MOU, or the application of any provision, should be rendered invalid by court or legislative action, the remaining portions of this Agreement shall remain in full force and effect.
Article 36. ZIPPER CLAUSE
The parties agree that all negotiable items have been discussed during negotiations leading to this MOU, including salaries and benefits, and conditions of employment and therefore further agree that negotiations will not be reopened on any item during the life of this MOU except my mutual agreement or as provided elsewhere in this MOU.
Article 37. SIGNATURES
CITY OF REDLANDS
REDLANDS ASSOCIATION OF
MANAGEMENT EMPLOYEES - RAME
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23 MARIO SAUCEDO , MAYOR BRIAN FOOTE, PRESIDENT DATE
DONALD YOUNG, VICE PRESIDENT DATE
ADOPTED, SIGNED AND APPROVED THIS 16TH DAY
OF JUNE 2026
ATTEST:
_______________________________________
Jeanne Donaldson, City Clerk
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MEMORANDUM OF UNDERSTANDING
BETWEEN THE
CITY OF REDLANDS
AND THE
REDLANDS ASSOCIATION OF
MANAGEMENT EMPLOYEES
JULY 1, 2026 - JUNE 30, 2029
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2 MEMORANDUM OF UNDERSTANDING
Between
The City of Redlands
And
Redlands Association of Management Employees
July 1, 2026 – June 30, 2029
TABLE OF CONTENTS
Article 1. Term of Memorandum of Understanding............................................................. 4 Article 2. Preamble............................................................................................................. 4 Article 3. Recognition ......................................................................................................... 4 Article 4. Salaries................................................................................................................ 4 Article 5. Retirement .......................................................................................................... 4 Article 6. Education Incentive Pay....................................................................................... 5 Article 7. Longevity Pay ...................................................................................................... 5 Article 8. Uniform Allowance.............................................................................................. 6 Article 9. Tuition Reimbursement ....................................................................................... 6 Article 10. Bilingual Pay ........................................................................................................ 6 Article 11. Death of Employee .............................................................................................. 6 Article 12. Health Insurance.................................................................................................. 7 Article 13. Dental Insurance.................................................................................................. 8 Article 14. Vision Care .......................................................................................................... 8 Article 15. Life Insurance ...................................................................................................... 8 Article 16. State Disability Insurance (SDI) ............................................................................ 8 Article 17. Vacation .............................................................................................................. 8 Article 18. Sick Leave ............................................................................................................ 9 Article 19. Deferred Compensation....................................................................................... 9 Article 20. 401 A Plan ........................................................................................................... 9 City of Redlands | RAME MOU 2026-2029
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3 Article 21. Vehicle Allowance.............................................................................................. 10 Article 22. Bereavement Leave ........................................................................................... 10 Article 23. Leave of Absence Without Pay........................................................................... 10 Article 24. Personal Leave................................................................................................... 10 Article 25. Executive Leave ................................................................................................. 10 Article 26. Holidays ............................................................................................................ 10 Article 27. Probation .......................................................................................................... 11 Article 28. Review/Evaluation Date .................................................................................... 11 Article 29. Performance Evaluations................................................................................... 12 Article 30. Disciplinary Procedure ....................................................................................... 12 Article 31. Grievance Procedure.......................................................................................... 16 Article 32. Demotion/Non-Disciplinary ............................................................................... 20 Article 33. Layoff Procedure ............................................................................................... 20 Article 34. Management Rights........................................................................................... 22 Article 35. Savings Clause ................................................................................................... 22 Article 36. Zipper Clause..................................................................................................... 22 Article 37. Signatures.......................................................................................................... 22 City of Redlands | RAME MOU 2026-2029
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4 Article 1. TERM OF MEMORANDUM OF UNDERSTANDING
Except where expressly stated otherwise herein, the City of Redlands (“City”) and the Redlands Association of Management Employees (“Unit”) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 2026 and shall expire on June 30, 2029.
Article 2. PREAMBLE
It is the intent and purpose of this MOU to set forth the understanding of the parties reached as a result of meeting and conferring in good faith regarding, but not limited to, matters relating to the wages, hours, and terms and conditions of employment between the City and the Unit.
Article 3. RECOGNITION
A Unit employee shall be defined as an employee of the City and assigned to the Unit by the City Manager in accordance with City policies and procedures.
Article 4. SALARIES
A. All Unit employees shall receive the following salary increases:
1. Effective the first full pay period after July 1, 2026, all Unit employees will receive a four percent (4%) increase to base salary.
2. Effective the first full pay period after July 1, 2027, all Unit employees will receive a three percent (3%) increase to base salary over the prior year.
3. Effective the first full pay period after July 1, 2028, all Unit employees will receive a three percent (3%) increase to base salary over the prior year.
B. Compaction: A minimum salary differential of twenty percent (20%) shall be maintained between Management Unit classifications and Mid-Management Unit classifications. In the event there are increases to salaries in mid-management classifications that result in a differential less than twenty percent (20%) between mid-management unit classifications and the management Unit they report to, all management classifications shall be adjusted upward until the differential is maintained. The existing salary differentials within the management unit shall be maintained.
C. All Management Unit employees are responsible for the employee contribution to Social Security and Medicare.
D. Salary Range Restructure:
1. Effective the first full pay period after July 1, 2026, the City shall eliminate Step 0 on the salary range for each classification. Employees on Step 0 at that time shall immediately be placed on Step 1. For those employees being advanced to Step 1, service hours for the purpose of receiving their next merit increase shall not reset.
2. Effective the first full pay period after July 1, 2026, the City shall establish three new steps (Steps 5, 6 and 7) at the top of the salary range for each classification. Each of the new steps shall be two and a half percent (2.5%) higher than the preceding step.
3. Advancement to the new Steps 5, 6, and 7 shall continue to occur upon an employee’s anniversary date.
Article 5. RETIREMENT
A. Classic Members
1. All “classic” Unit employees shall personally fund 100% of the 7% of compensation earnable as and for the individual employee’s normal employee PERS contribution. (The City of Redlands | RAME MOU 2026-2029
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5 term “classic” member is defined in the Public Employee’s Pension Reform Act of 2013 “PEPRA.”)
All “classic” employee normal contributions required to be paid by the employee, whether paid by the employer or the employee, shall be credited to the member’s CalPERS account.
Whether as authorized by Government Code § 20692, 20636(c)(4) or any other statutory or legal basis, the City shall not report to CalPERS as any type of compensation, any portion of the normal employee PERS contributions required by PERS which are funded by the employee.
2. The City shall continue to include in this contract with CalPERS, the following provisions:
HIGHEST SINGLE YEAR
SURVIVOR CONTINUANCE
2% @ 55 RETIREMENT FORMULA
B. New Members
1. The Public Employee’s Pension Reform Act of 2013 – “PEPRA” (signed by the Governor on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist, during and after the term of this MOU, as described below.
2. Unit employees who are “new members” as defined in the PEPRA, shall individually pay an initial member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for the Defined Benefit Plan in which said newly hired member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (Government Code section 7522.30)
3. Unit employees who are “new members,” as defined in the PEPRA, on and after January 1, 2013, shall be enrolled in the retirement plan of 2%@62 (Government Code section 7522.20(a), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a).) Article 6. EDUCATION INCENTIVE PAY
Unit employees will qualify for a three percent (3%) increase in base salary upon submitting satisfactory proof of a Master or Doctoral degree (i.e., official transcripts) where such degree is not required as part of the employee’s minimum job qualifications. If a Master’s degree is required as part of the employee’s minimum job qualifications, the employee will only be eligible for education incentive pay upon submitting satisfactory proof of a Doctoral degree.
Article 7. LONGEVITY PAY
A. Employees with ten (10) years continuous service with the City, shall receive compensation in the amount of three (3) percent of base salary, effective the beginning of the pay period closest to completion of their tenth (10th) year of service.
B. Employees with fifteen (15) years continuous service with the City, shall receive an additional two (2) percent, effective the beginning of the pay period closest to completion of their fifteenth (15th) year of service.
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6 C. The 10-year longevity percentages shall be compounded with the 15-year longevity pay. Incentives and leave cash out shall be calculated based on the combination of base salary and longevity pay.
Article 8. UNIFORM ALLOWANCE
The Fire Marshal who is on payroll at the time the check is issued shall receive a uniform allowance of eleven hundred dollars ($1,100) per year, with $550 paid in January, and $550 paid in July.
Article 9. TUITION REIMBURSEMENT
A. Unit employees shall be reimbursed up to the dollar amount charged for the same number of units per term by the University of California, Riverside. An employee shall not receive reimbursement in excess of five thousand dollars ($5,000) in any one fiscal year. The difference between the City’s maximum obligation during any fiscal year and the amount of any actual reimbursement received by the employee during that fiscal year shall not be carried over or be available to use by the employee in any subsequent fiscal year.
B. The course must be satisfactorily completed with a minimum grade of “C” or equivalent to qualify for reimbursement.
Article 10. BILINGUAL PAY
A. Eligible Unit employees will be compensated $75.00 per pay period for the performance of bilingual skills beginning the first pay period following certification by successful completion of a competency exam administered through the Human Resources Department or third party selected by the City.
B. Recommendation by the Department Head.
C. The determination of the number of employees designated to receive bi-lingual pay is at the sole discretion of the City.
D. Bilingual pay shall apply regardless of the frequency or total time required to perform translation duties.
E. In the event that a department head’s bilingual employees are not available and a bilingual need occurs, that department head may request that another department head loan a bilingual employee to that department to handle the bilingual need for the duration of the assignment.
F. In the event that an employee which is approved for bilingual pay receives a change in assignment, classification, job duties or is transferred or promoted, a determination may be made by the employee’s department head that bilingual skills are no longer required for use on the job and this benefit will be removed from the employee without right of appeal.
G. In the event that there are more bilingual employees in a department or location than are required by the City to provide this service, the City will determine a method whereby qualified employees can receive this compensation on a rotational basis.
H. The City reserves the right to determine the languages for which testing will be conducted.
I. The City reserves the right to determine where the use of employee bilingual skills would be best served.
J. The City may require employees to keep a log demonstrating that bilingual skills are being utilized.
K. An employee’s continuation in the bilingual program is subject to periodic evaluation and retesting.
L. Only employees granted bilingual pay shall be required to speak the designated language.
Article 11. DEATH OF EMPLOYEE
A. The eligible dependents of deceased Unit employees shall be entitled to benefits as follows:
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7 1. Sick leave accruals, lifetime medical insurance and other applicable benefits shall be calculated and/or compensated according to the eligibility requirements stated in the current MOU.
2. In the event the deceased employee qualified for a service retirement (i.e. age 50 and with a minimum of five (5) years of service with the City), the City shall calculate and/or compensate benefits in the same manner as an employee service retirement.
Article 12. HEALTH INSURANCE
A. The City shall contribute directly to CalPERS on behalf of each employee three hundred and ninetyseven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989. In addition, the City shall contribute an amount through the City’s cafeteria plan that is equal of the difference between the City’s minimum PEMHCA contribution and the following amounts:
B. City contributions to the cafeteria plan may be used toward available cafeteria benefits, including City medical plan premiums, flexible spending account, and post-employment health plan.
C. The City agrees to provide a stipend of $350, on a monthly basis, for those Unit employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.
D. Insurance Adjustment: In July of each year, the City shall pay each Unit employee a cash payment in the amount of one hundred and fifty dollars ($150) to offset the co-payments and deductibles for medical insurance plans.
E. Retiree Medical:
1. For all unit members who qualify as an “annuitant” under PEMHCA, the City will contribute directly to CalPERS on behalf of each annuitant three hundred and ninety-seven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989.
2. Upon service retirement and completion of fifteen (15) or more cumulative years of service with the City, a Unit employee hired prior to March 11, 2010, who qualifies as an annuitant under PEMHCA, may elect to receive as City contribution to a retiree health savings account the difference between the PEMHCA minimum and the cost of fully paid lifetime medical and dental insurance (excludes vision coverage) for the employee and eligible dependents, under the City’s medical and dental insurance programs, and may elect to convert accumulated sick leave to cash using the following formula, or have the option of converting 100% of accrued sick leave hours to service credit, or may use the following formula to convert accrued sick leave to cash and convert the remaining sick leave to service credit.
COMPLETED
YEARS OF SERVICE
CONVERSION
PERCENTAGE
10 - 15 25%
COVERAGE LEVEL
TOTAL CITY CONTRIBUTION
EFFECTIVE JULY 1, 2026
Employee Only: $900
Employee Plus One Dependent: $1,700
Employee plus Two or more
Dependents:
$2,200
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8 16 - 19 35%
20+ 50%
Unit employees hired on or after March 11, 2010 are not eligible for the lifetime medical benefit.
3. Unit members with ten (10) years of continuous employment with the City who concurrently retire from the City and the CalPERS system and who qualify as an annuitant under PEMHCA may elect to receive the “Medical Bridge.” Under the Medical Bridge, the City will contribute the difference between the PEMCHA minimum and the cost of single party coverage for the retired unit member only for the lowest cost medical and dental insurance plans as provided by the City to its then existing unit members until the member reaches the age of medicare eligibility at which time the benefit will cease and unit members will only receive the PEMHCA minimum contribution. Unit members who receive the medical bridge can select higher cost plans offered by the City to its then existing members and/or coverage for dependents, however, the additional cost for the plan or additional dependents shall be paid for by the unit member and not by the City.
Article 13. DENTAL INSURANCE
The City agrees to pay the full monthly premium for dental insurance under the City’s dental plan or its equivalent for each Unit employee and all eligible dependents.
Article 14. VISION CARE
The City agrees to reimburse each Unit employee up to four hundred dollars ($400) every fiscal year for the purchase of frames and lenses or contact lenses and the cost of eye examinations for the employee and/or his/her dependent.
Article 15. LIFE INSURANCE
The City shall contribute the monthly premium for term life insurance in the amount of twenty-five thousand dollars ($25,000) for all Unit employees. Employees may also purchase additional increments of life insurance at the City’s group rate at their own expense.
Article 16. STATE DISABILITY INSURANCE (SDI)
Unit employees shall be required to participate in State Disability Insurance at employees’ expense.
Article 17. VACATION
A. The vacation accrual for Unit employees shall be as follows:
YEARS/MONTHS OF SERVICE ANNUAL
ACCRUAL RATE – HOURS
0 – 4 (0-59 months) 80
5 – 6 (60-83 months) 120
7 – 9 (84-119 months) 140
10–14 (120-179 months) 160
15+ (180 months+) 200
The maximum vacation accrual leave balance shall be 1000 hours. Unit employees shall convert all hours over 800 each year to a qualified 401(a) retirement plan to the maximum allowed by law. The conversion shall occur in January each year.
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9 Article 18. SICK LEAVE
A. ACCRUAL: Unit employees shall receive eight (8) hours of sick leave per month.
B. USE: Employees may use up to half of their annual sick leave accrual, forty-eight (48) hours, to care for ill family members.
C. BUY BACK: In November of each calendar year, each Unit employee may elect to be paid at his/her current hourly rate for each sick leave day accumulated during the following calendar year in excess of six (6) sick leave days in November of the following year. A total of one (1) year’s accumulation, ninety-six (96) hours, must be on the books prior to any compensation being paid. This election is irrevocable and may not be changed once the election is made. Employees in the unit may also choose to accumulate all sick leave days, from calendar year to calendar year, to an unlimited amount.
D. CONVERSION TO CASH: Upon voluntary separation of service or layoff with the City, Unit employees with ten (10) years or more of continuous service shall be eligible to cash in unused sick leave at the following formula:
YEARS OF SERVICE PERCENT
10 – 15 25 %
16 – 20 35 %
21+ 50 %
E. UPON RETIREMENT: In lieu of the benefit D and upon retirement under the PERS retirement plan, Unit employees will have the option of: (1) converting one hundred percent (100%) of individual sick leave accruals to service credit; or, (2) Unit employees may elect to have all remaining sick leave accrued at the time of retirement converted to cash value at their final rate of pay, and deposited in the Post Employment Health Plan (PEHP) where it can be used for applicable premiums payable under the City’s medical insurance program for the employee and the employee’s eligible dependents. In the event that the employee dies prior to exhaustion of the cash value of said benefits, the remaining cash value may be applied toward the premiums of covered dependents until exhausted, subject to the conditions and limitations of the PEHP.
Article 19. DEFERRED COMPENSATION
The City shall provide a 457 (b) deferred compensation plan to Unit employees. Unit employees may make voluntary contributions to the 457 (b) plan up to the maximum allowed by law. Participation by Unit employees is optional and all other costs shall be borne by plan participants.
Article 20. 401 A PLAN
The City shall pay the costs to administer a 401(a) Retirement Plan. In January of each year, the City of Redlands makes an annual contribution to deferred compensation on behalf of each Unit employee in the amount of up to $1,125 per year + 3% of salary. The full contribution amount shall be provided based on a complete one year of service in the preceding year. For new Unit employees and employees transferring into the Unit, the amount shall be prorated on a monthly basis for period of service within Unit in the preceding year. In the event that an employee leaves the Unit, they shall receive a final City of Redlands | RAME MOU 2026-2029
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10 contribution in a prorated amount of up to $1,125 + 3% of salary based on their period of service in their final year in the Unit and shall not receive an additional contribution in January.
Upon retirement, Unit employees shall deposit the cash value of vacation leave, incentive payouts, floating holidays, and executive leave to the program in the maximum amount allowable.
Article 21. VEHICLE ALLOWANCE
The City may assign a City-owned vehicle to a Unit employee for use on City business. If assigned, a Cityowned vehicle may be used by employee for City business and for commuting to and from the employee’s residence within a forty (40) mile radius of the City of Redlands. The City shall incur all costs related to the provision of the vehicle, including maintenance and insurance. The employee shall be responsible for ensuring the City’s vehicle is appropriately secured when parked at the employee’s residence.
Article 22. BEREAVEMENT LEAVE
In the event of a death in the immediate family, an eligible Unit employees will be compensated with four (4) days paid leave. In addition, eligible employees may be allowed to use accrued sick leave with full pay not to exceed three (3) days. Immediate family shall be defined as the following relatives to either the employee or spouse or registered domestic partner: spouse, registered domestic partner, child (including foster child or ward of the court), parent, grandparent, brother, sister, niece, nephew, step-children, and grandchildren. The definition of immediate family will also include the aunt and uncle of the employee only. Bereavement leave may also be used for the significant other of the employee provided the employee shows proof of cohabitation.
Article 23. LEAVE OF ABSENCE WITHOUT PAY
If a Unit employee takes more than five (5) accumulated days of leave without pay in a calendar year, commencing at the beginning of the sixth (6th) day of leave without pay and any day of leave without pay thereafter during the calendar year; sick leave and vacation accruals will be adjusted proportionately to eliminate benefit accruals for any day an employee is on leave without pay status.
Article 24. PERSONAL LEAVE
Unit employees may use up to a maximum of eight (8) hours of accrued sick leave per year for personal leave, subject to advanced approval by his/her supervisor.
Article 25. EXECUTIVE LEAVE
Unit employees shall receive one hundred twenty (120) hours of Executive Leave annually for use during the calendar year. Any leave hours above twenty (20) hours on the books as of December 31 of each year, shall be removed and not carry over to the following year. During the term of the Agreement, the parties agree to meet to discuss potential modification of the amount of Executive Leave provided annually under this Agreement. The parties acknowledge that the City is under no obligation to make any modification to the amount of Executive Leave provided under this Agreement and that any inability to reach agreement shall not be subject to impasse resolution procedures.
Article 26. HOLIDAYS
A. The holidays which will be honored for Unit employees will include the following, along with any additional day as designated by action of the City Council:
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11 HOLIDAY DAY OBSERVED
New Year’s Day January 1
Martin Luther King Day Third Monday in January
President’s Day Third Monday in February
Farm Workers Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day First Monday in September
Columbus Day Second Monday in October
Veteran’s Day November 11
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day Friday after Thanksgiving Day Christmas Eve December 24
Christmas Day December 25
B. If the holiday falls on Saturday, Friday shall be designated as the holiday and if the holiday falls on Sunday, Monday shall be designated as the holiday. If a scheduled holiday falls on an employee’s regular day off, the employee shall bank the holiday at their regularly scheduled hours to be used at a later date. Employees should not be scheduled to work both the designated holiday and the actual holiday.
C. Holiday pay shall be compensated in accordance with the employee’s standard work schedule.
Employees on a 9-80 schedule shall bank 8 hours of holiday if the holiday lands on a closed Friday.
D. Unit employees are entitled to receive twenty hours of floating holidays annually. Floating holidays accrued but not taken are paid off during January of the year following the year in which the holidays were accrued.
E. The A.K. Smiley Public Library will be closed on the Saturday following Thanksgiving Day.
Article 27. PROBATION
A. Unit employees newly hired shall serve a probationary period of twelve (12) months.
B. Unit employees who are promoted shall serve a probationary period of six (6) months.
C. Probationary periods may be extended as set forth in the City's Personnel Rules and Regulations.
Article 28. REVIEW/EVALUATION DATE
For all Unit employees the “review/evaluation date” shall be the day of the month in which the employee completes twelve (12) months of employment. When an employee receives a promotion, the new review/evaluation date shall be the day of the month in which the employee completes six (6) months of employment in the new classification. When a salary increase is granted, it shall be effective on the beginning of the pay period falling closest to the day of the month the employee was hired or promoted.
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12 Article 29. PERFORMANCE EVALUATIONS
In cases where a performance evaluation has not been received by a Unit employee within 30 days of the eligibility date, the employee should contact the supervisor, who must complete and file the evaluation within ten (10) working days.
Article 30. DISCIPLINARY PROCEDURE
A. The Investigatory Interview Process
Prior to any investigatory interview or consultation between an employee and the Department Head or City Manager, that could reasonably be construed to result in disciplinary action against the employee, the employee shall be given notice of the interview or consultation as soon as reasonably practical, and shall be advised of his or her right to representation under this section; and upon request shall be afforded an opportunity to contact and consult privately with a representative of the Unit. If requested, the employee may have Unit representative present during any such investigatory interview or consultation, and, to the extent practicable, such interviews or consultations shall be conducted during an employee’s working hours. Only those persons reasonably necessary to the conduct of the interview shall be present.
The employee or the City may elect to record any such investigatory interview or consultation, unless the parties mutually agree not to record such interview or consultation; however, in the event the City elects to record such an interview or consultation, it shall upon request provide the employee with a copy of said recording. The cost of providing a copy of the recording to the employee shall be borne by the employee.
B. Disciplinary Procedures
No employee who has successfully completed probation, shall be disciplined without cause.
Disciplinary action shall be defined to include: oral warnings, written reprimands, suspensions, demotions (non-probationary), reduction in pay and discharge. Oral and written reprimands may be initiated at the supervisor/Division Manager level. Disciplinary action more serious than a written reprimand must be initiated at the Department Head level.
1. Notice of Proposed Action
Whenever an employee is to be discharged, suspended (for more than five (5) working days) demoted (non-probationary), or reduced in step, for disciplinary purposes, written notice of at least five (5)1 days of the proposed disciplinary action shall be given before such action is to be taken and must include:
a. Notice of proposed action;
b. Reasons for proposed action;
c. A copy of charges stating specific incidents or specific courses of conduct, e.g. as evidenced by work performance evaluations, and a copy of the written materials upon which the decision to take proposed disciplinary action is based; and
d. A notice to the employee of the right to respond in writing or orally within the five (5) day period.
1 Unless specifically noted to be "working days," any reference to days is calendar days.
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13 In the case of a suspension of five (5) working days or less, the foregoing procedures shall be afforded the employee either before or during the suspension, or within a reasonable time thereafter.
2. Limitations and Exceptions
a. Oral notice is insufficient as full notice to an employee and may be given only as the initial notice in extraordinary circumstances which call for immediate action. b. Prior written notice is required in each case, unless provided otherwise herein, regardless of seriousness unless extraordinary circumstances are involved. c. Employees may be suspended without prior written notice in extraordinary circumstances when it is essential to avert harm to the public, other employees, or to avert serious disruption of governmental business. The appointing authority may schedule an employee for vacation or holiday leave as the circumstances may warrant. Extraordinary circumstances include but are not limited to situations involving misappropriation of public funds or property; working while under the influence of alcohol or intoxicating drugs; open insubordination; commission of a crime involving moral turpitude punishable by imprisonment for six (6) months or more; and disruption of City business through willful misconduct (altercations, etc.). d. Oral notice is insufficient as full notice for proposed disciplinary action. In extraordinary circumstances when immediate suspension, demotion, removal, or reduction in step is warranted, initial notice may be given orally. The employee should be told when the initial action is taken what the reasons for the actions are and, in addition, the employee will have an opportunity to respond in writing and/or orally to those charges. The written charges in the case of an immediate disciplinary action must be prepared as soon as possible and normally within a day or two (2) of the initial oral notice.
3. Employee's Response to Proposed Discipline
a. An employee receiving a Notice of Proposed action shall have the right to respond to a Department Head from a different Department. An employee’s opportunity to respond to the Department Head is not intended to be an adversary hearing. An employee has the right to have a representative of his/her own choosing at the meeting. The employee shall not be accorded the opportunity to cross-examine a department’s witnesses, nor to present a formal case in opposition to the proposed discipline. However, the limited nature of this response does not obviate the Department Head’s responsibility to initiate further investigation if the employee’s version of the facts raises doubts as to the accuracy of the Department Head’s information leading to the discipline proposal. An employee may elect not to respond, thereby waiving any further pre-disciplinary response.
b. The Department Head from a different Department will evaluate the proposed discipline in light of the employee’s response, if any. Within ten (10) days of the employee’s response, or deadline for response, a decision will be transmitted in writing to the employee. Service of the decision will be in person or by mail.
4. City Manager Level Appeal
a. Any permanent employee shall have the right to appeal any termination, suspension, reduction in salary, or non-probationary demotion. The appeal process shall not be applicable to those positions which may be deemed exempt or to probationary employees. The appeal process shall not be applicable to verbal and written reprimands, probationary demotions, City of Redlands | RAME MOU 2026-2029
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14 performance evaluations and denial of performance increases. An employee desiring to appeal the Department Head’s decision shall have ten (10) days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the City Manager and received in the City Manager’s office so that same is date stamped by the City Manager’s office within the ten (10) day period.
b. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the Department Head shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the City Manager, an appeal meeting shall be scheduled.
c. The meeting with the City Manager shall be conducted in the same manner as the Response to Proposed Discipline set forth in paragraph 2(C) above. d. The City Manager will evaluate the discipline in light of the employee’s response, if any. Within ten (10) days of the employee’s response a decision will be transmitted in writing to the employee. Service of the decision will be in person or by mail.
5. Advisory Arbitration
a. An employee desiring to appeal the City Manager's decision shall have ten (10) days after receipt of the response to file an appeal. The employee's request for appeal must be addressed to the City Manager and received in the City Manager's office so that same is date stamped by the City Manager’s office within the ten (10) day period. b. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the City Manager shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the City Manager, an appeal hearing shall be established as follows:
i. The California State Mediation and Conciliation Service shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee.
Within ten (10) days following receipt of the list of hearing officers, the parties shall confer to select the hearing officer. The parties shall alternately strike one (1) name from the list of hearing officers (the right to strike the first name to be determined by lot) until one (1) name remains, and that person shall be the hearing officer. ii. Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the City Manager. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. iii. All hearings shall be private provided, however, that the hearing officer shall, at the request of the employee, open the hearing to the public. iv. Subpoenas and subpoenas duces tecum pertaining to a hearing shall be issued at the request of either party, not less than seven (7) days, prior to the commencement of such hearing. After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
v. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, City of Redlands | RAME MOU 2026-2029
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15 regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence. vi. Each party shall have these rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the employee does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary. vii. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:
1. The party imposing discipline shall be permitted to make an opening statement;
2. The appealing party shall then be permitted to make an opening statement;
3. The party imposing disciplinary action shall produce the evidence on his/her part; the City bears the burden of proof and burden of producing evidence;
4. The party appealing from such disciplinary action may then open his/her defense and offer his/her evidence in support thereof; the employee bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
5. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case;
6. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
i. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. His/her decision shall set forth which charges, if any, are sustained and the reasons therefore. The opinion shall set forth findings of fact and conclusions. ii. The hearing officer may recommend sustaining or rejecting any or all of the charges filed against the employee. He/she may recommend sustaining, rejecting, or modifying the City of Redlands | RAME MOU 2026-2029
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16 disciplinary action invoked against the employee. He/she may not recommend discipline more stringent than that issued by the City Manager.
iii. The hearing officer’s opinion and recommendation shall be filed with the City Council, with a copy sent to the charged employee, and shall set forth his/her findings and recommendations. If it is a dismissal hearing and a dismissal is not the hearing officer’s recommendation, the opinion shall set forth the date the employee is recommended to be reinstated and/or other recommended action. The reinstatement date, if appropriate, may be any time on or after the date of disciplinary action. iv. Within sixty (60) days of the receipt of the hearing officer’s findings, recommendation, and transcript, the City Council shall adopt, amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision which modifies or rejects the recommendation of the hearing officer, the City Council shall order and read the transcript of the hearing. Prior to making a decision which supports the hearing officer, the City Council may order and read the transcript, at its option. The City Council shall not conduct a de novo hearing. The City Council may, at its option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Council shall be final and conclusive. Copies of the City Council’s decision, including the hearing officer’s recommendation(s), shall be filed where appropriate, including the employee’s personnel file, unless no discipline is upheld by the City Council.
v. Each party shall equally bear the cost and fees of the hearing officer, the cost of facilities, the court reporter and transcripts. Each party shall bear its own witness and attorney fees.
If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties which result in a hearing officer fee.
vi. In the case of suspension, demotion, reduction in salary, or dismissal prescribed by the City Council, the time of such suspension, demotion or dismissal shall be effective from the first day after such delivery of said decision or shall relate back to and be effective as of the date the employee was disciplined pending hearing before and decision by the City Council, whichever is applicable. If discipline imposed resulted in loss of pay, and the decision results in reduction or elimination of loss of pay, the pay loss shall be restored to the employee based on the number of standard work hours lost computed at his/her then base hourly rate.
vii. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.
Article 31. GRIEVANCE PROCEDURE
A. Definition
A “grievance” is a formal, written allegation by a grievant that he/she has been adversely affected by an existing violation, misinterpretation or misapplication of the specific provisions of the Memorandum of Understanding, provisions of the Personnel Rules and Regulations, and/or written City Policy. Other matters for which a special method of review is provided by law, ordinance, resolution, or by administrative regulations and procedures of the City, are not within the scope of City of Redlands | RAME MOU 2026-2029
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17 this procedure. This procedure is not to be used in lieu of the Disciplinary Appeal Procedure set forth in Article 27.
B. Procedure
1. Every effort shall be made to resolve a grievance through discussion between the employee and his/her immediate supervisor. It is the spirit and intent of this procedure that all grievances are settled quickly and fairly without subsequent discrimination against employees who may seek to adjust a grievance. Every effort should be made to find an acceptable solution at the lowest level of supervision. Within fifteen (15) days2 after a grievant knew, or by reasonable diligence should have known, of the condition upon which a grievance may be based, the grievant shall attempt to resolve it by an informal conference with the grievant’ s immediate supervisor. A supervisor shall render a verbal decision within seven (7) days of the conclusion of the informal conference.
2. If the problem cannot be resolved between the employee and the supervisor, the employee may, within seven (7) days from the date of receiving the answer from his/her supervisor, file a written grievance and request a meeting with the Division Manager, if one exists, in order to discuss the grievance. The written grievance shall contain the following information:
a. Name of grievant and job title;
b. Department/Section;
c. Clear and concise statement of the nature of the grievance including the circumstances and dates involved;
d. The specific provision(s) of the M.O.U., City Policy or Personnel rules alleged to have been violated;
e. Requested remedy;
f. Name of the grievant’s Labor Representative, if any; and g. Date and signature of the grievant or Labor Representative.
3. The Division Manager shall render a decision and comments in writing and return them to the grievant within ten (10) days after receiving the written grievance.
4. If the Division Manager and employee cannot reach a solution to the grievance (or if a Division Manager does not exist), the employee may, within seven (7) days from the date of receiving the answer from the Division Manager, request, in writing, a meeting with the Department Head.
5. The Department Head shall render his/her decision in writing within fifteen (15) days of receiving the appeal. If the Department Head and employee are unable to arrive at a satisfactory solution, the employee may, within ten (10) days from the date of the decision by the Department Head, submit a written appeal to the Human Resources Director.
6. The City Manager shall review the grievance and respond to the employee within twenty (20) days of receiving the appeal. The response shall be in writing.
7. An employee desiring to appeal the City Manager's decision shall have ten (10) days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the Human Resources Director and received in the Human Resources office so that same is date stamped by the Human Resources office within the ten (10) day period.
8. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the grievance shall be considered conclusive as set forth in the City Manager's decision and shall take effect as prescribed. If within the ten (10) day appeal period, 2 Days refer to calendar days.
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18 the employee involved files such notice of appeal by giving written notice of appeal to the Human Resources Director, an appeal hearing shall be established as follows:
a. The California State Mediation and Conciliation Service shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee. Within ten (10) days following receipt of the list of hearing officers, the parties shall confer to select the hearing officer. The parties shall alternately strike one (1) name from the list of hearing officers (the right to strike the first name to be determined by lot) until one (1) name remains, and that person shall be the hearing officer.
b. Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the Human Resources Director. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. c. All hearings shall be private provided, however, that the hearing officer shall, at the request of the grievant, open the hearing to the public.
d. Subpoenas and subpoenas duces tecum pertaining to a hearing shall be issued at the request of either party, not less than seven (7) days, prior to the commencement of such hearing.
After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
e. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence.
f. Each party shall have these rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the grievant does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary. g. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:
i. The grievant shall be permitted to make an opening statement; ii. The City shall then be permitted to make an opening statement; iii. The grievant shall produce the evidence on his/her part; the grievant bears the burden of proof and burden of producing evidence;
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19 iv. The City may then open its defense and offer its evidence in support thereof; the City bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
v. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case; vi. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
h. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. The opinion shall set forth findings of fact and conclusions.
i. The hearing officer may recommend sustaining or rejecting any or all of the grievance. j. The hearing officer’s opinion and recommendation shall be filed with the Human Resources Director, with a copy sent to the grievant, and shall set forth his/her findings and recommendations.
k. Within sixty (60) days of the receipt of the hearing officer’s findings recommendation, and transcript, the City Council shall adopt, amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision which modifies or rejects the recommendation of the hearing officer, the City Council shall order and read the transcript of the hearing. Prior to making a decision which supports the hearing officer, the City Council may order and read the transcript, at its option. The City Council shall not conduct a de novo hearing. The City Council may, at its option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Council shall be final and conclusive. Copies of the City Council’s decision, including the hearing officer’s recommendation(s) shall be filed where appropriate, including the grievant's personnel file.
l. Each party shall bear equally the cost of facilities, fees and expenses of the hearing officer, including the court reporter and transcripts. Each party shall bear its own witness and attorney fees. If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties which result in an arbitration fee. m. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.
9. If the time limits for employees’ appeals at any step should elapse, the grievance shall be considered withdrawn. Time limits may be extended by mutual consent. If the City fails to respond within the prescribed time limits, the grievance will be deemed to have been denied and the employee may go to the next step. If the City Manager fails to respond within the prescribed City of Redlands | RAME MOU 2026-2029
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20 time limit, the grievance will be deemed to have been denied and the employee will be deemed to have exhausted his/her administrative remedy.
10. The employee may request the assistance of another person of his/her own choosing in preparing and presenting his/her grievance at any level of review. In the event the employee desires the presence of a representative who is an employee of the City, he/she shall make such request through the supervisor and the supervisor shall make the necessary arrangements for the employee representative to be present.
11. The employee and/or his/her representative may use a reasonable amount of work time as determined by the appropriate supervisor or Department Head in presenting the grievance.
However, no employee shall absent himself/herself without first being excused by his/her supervisor.
12. No employee shall be required to be represented by an employee organization in processing a grievance.
13. Employees shall be assured freedom from reprisal for using the grievance procedures by both the City and the employee organization.
14. The settlement terms of a grievance which is processed by an employee individually or by a recognized employee organization shall not conflict with the express provisions of a Memorandum of Understanding between the City and the formally recognized employee organization for such unit.
15. A group grievance may be filed when one (1) set of circumstances or occurrences affects more than one (1) employee in the same manner or to the same extent. The group may file one (1) document which all members of the group have read and signed. Members of the group shall be limited to those who have signed the grievance. The resolution of a group grievance may not be consistent among all employees in the group grievance due to differences in the circumstances or occurrences that brought about the grievance.
16. A group grievance affecting all members of an employee organization may be brought by the employee organization itself. In such case the procedure shall be commenced directly at the City Manager level within fifteen (15) days after authorized representatives of the employee organization knew, or by reasonable diligence should have known, of the condition giving rise to the grievance and shall be subject to all applicable time limitations and the provisions set forth above.
Article 32. DEMOTION/NON-DISCIPLINARY
Unit employees who are demoted due to layoff or other non-disciplinary reasons will be required to serve a new probationary period in the lower classification, provided they have not held regular status in the lower classification previously. While serving this new probationary period, the employee will retain due process rights and cannot be disciplined or terminated from City service without due process.
Article 33. LAYOFF PROCEDURE
A. Should the City Manager determine reductions in force to be necessary due to lack of work or for financial reasons, he/she may initiate Layoffs. Classifications to be affected and the number of employees included will be determined by the City.
B. In determining the order of Layoffs, a combination of factors shall be considered, including but not limited to: qualifications, productivity, general performance, seniority with the City of Redlands, seniority in job classification, and needs of the City. Variations from the order of Layoffs and recall from Layoff may occur when the City deems such variations appropriate under the circumstances.
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21 C. The factors the City, in its discretion, may use to determine include but are not limited to the following:
1. An employee's last four performance evaluations, if any;
2. Any history of employee commendations, awards, etc.;
3. Any history of employee disciplinary action;
4. Attendance record, including tardiness and unexcused absences;
5. Safety record, including personal injury and damage to city property;
6. Probationary and temporary employees shall be laid off before a regular employee in the same classification;
7. Between two regular appointees in the same classification with the same skills, abilities, qualifications, merit and/or record, the employee with lesser seniority in the classification may be laid off first;
8. Between two regular appointees in the same classification the employee with lesser skills, abilities, qualifications, merit and\or record may be laid off first, without regard to seniority;
9. Memoranda of Understanding ("MOU") between the City and affected bargaining units.
D. BUMPING
1. “Bumping” means the displacement of an employee from his/her position by an employee in a higher classification who formerly held the same position.
2. Where two or more employees are laid off from the same position, the employee with the greatest seniority in that classification shall have the first opportunity to bump as set forth below.
3. A laid-off employee shall be entitled to bump an employee in the same position previously held by the laid off employee. Alternatively, an employee may "bump" into a position in a different department which he/she held within the prior five (5) years. The laid off employee must be able to perform the essential job functions of the former position and possess the minimum qualifications of the position as specified by the job classification specification. A laid-off employee shall not bump an employee with greater skills, abilities, qualifications, merit and/or record. Laid off employees may also be placed in a vacant lower classification for which they meet the minimum qualifications. Employees must utilize the option that places them in the highest available position.
4. A laid-off employee shall be entitled to bump an employee in a lower position directly managed by the laid-off employee. The laid-off employee must be able to perform the essential job functions of the lower position and possess the minimum qualifications of the position as specified by the job classification. Employees must utilize the option that places them in the highest position.
5. The City will notify laid-off employees of any positions available for bumping. Following such notification, the employee must notify the Human Resources Director in writing of his/her intent to exercise the bumping rights within seven (7) calendar days, and the position and classification in to which he/she intends to bump. Failure to provide such notification will be deemed a waiver of bumping rights by the employee.
6. Where there is more than one employee in a position available for bumping, the factors in paragraph C of this Section will be used to determine which employee, if any, will be bumped.
7. The process will be repeated at the next classification level where an employee bumps in and creates an overage in that classification.
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22 8. Any displaced employee shall be considered as laid-off for the same reason as the person who displaced them and shall in the same manner be eligible to displace another employee based on the criteria specified in paragraph C of this Section.
E. REINSTATEMENT FROM LAYOFF
1. The names of probationary and regular employees who have been laid off shall be placed on appropriate reemployment lists. Such names shall remain thereon for a period of one year unless such persons are sooner reemployed.
2. When a reemployment list is to be used to fill vacancies, the Human Resources Director shall certify from such lists the number of names equal to the number of vacancies. An employee who is reemployed shall receive credit for former service for purposes of seniority, benefit compensation, and salary advancement.
3. Employees who, following layoff from a position or layoff from City employment may be reinstated upon the recommendation of the Department Head and with the approval of the Human Resources Director, to the position from which they were laid off based on their qualifications, availability, and the needs of the organization pursuant to this paragraph.
Article 34. MANAGEMENT RIGHTS
Management rights shall consist of the exclusive right to determine the mission of its constituent departments, commissions, boards; set standards of service; determine the procedures and standards of selection for employment and promotion; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficient of work; maintain the efficient of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; determine the content of job classifications; take all necessary actions to carry out its mission in emergencies; exercise complete control and discretion over its organization and the technology of performing its work.
Article 35. SAVINGS CLAUSE
If any provision of this MOU, or the application of any provision, should be rendered invalid by court or legislative action, the remaining portions of this Agreement shall remain in full force and effect.
Article 36. ZIPPER CLAUSE
The parties agree that all negotiable items have been discussed during negotiations leading to this MOU, including salaries and benefits, and conditions of employment and therefore further agree that negotiations will not be reopened on any item during the life of this MOU except my mutual agreement or as provided elsewhere in this MOU.
Article 37. SIGNATURES
CITY OF REDLANDS
REDLANDS ASSOCIATION OF
MANAGEMENT EMPLOYEES - RAME
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23 MARIO SAUCEDO , MAYOR BRIAN FOOTE, PRESIDENT DATE
DONALD YOUNG, VICE PRESIDENT DATE
ADOPTED, SIGNED AND APPROVED THIS 16TH DAY
OF JUNE 2026
ATTEST:
_______________________________________
Jeanne Donaldson, City Clerk
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MEMORANDUM OF UNDERSTANDING
BETWEEN THE
CITY OF REDLANDS
AND THE
REDLANDS ASSOCIATION OF
MANAGEMENT EMPLOYEES
JULY 1, 2023 2026 - JUNE 30, 20262029
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2 MEMORANDUM OF UNDERSTANDING
Between
The City of Redlands
And
Redlands Association of Management Employees
July 1, 2023 2026 – June 30, 20262029
TABLE OF CONTENTS
Article 1. Term of Memorandum of Understanding ............................................................. 4 Article 2. Preamble ............................................................................................................. 4 Article 3. Recognition ......................................................................................................... 4 Article 4. Salaries ................................................................................................................ 4 Article 5. Retirement .......................................................................................................... 4 Article 6. Education Incentive Pay ....................................................................................... 5 Article 7. Longevity Pay ...................................................................................................... 5 Article 8. Uniform Allowance .............................................................................................. 6 Article 9. Tuition Reimbursement ....................................................................................... 6 Article 10. Bilingual Pay ........................................................................................................ 6 Article 11. Death of Employee ............................................................................................ 76 Article 12. Health Insurance .................................................................................................. 7 Article 13. Dental Insurance .................................................................................................. 8 Article 14. Vision Care .......................................................................................................... 8 Article 15. Life Insurance ...................................................................................................... 8 Article 16. State Disability Insurance (SDI) ............................................................................ 8 Article 17. Vacation ............................................................................................................ 98 Article 18. Sick Leave ............................................................................................................ 9 Article 19. Deferred Compensation .................................................................................... 109 Article 20. 401 A Plan ........................................................................................................ 109 City of Redlands | RAME MOU 20232026-20262029
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3 Article 21. Vehicle Allowance.............................................................................................. 10 Article 22. Bereavement Leave ........................................................................................... 10 Article 23. Leave of Absence Without Pay ........................................................................... 10 Article 24. Personal Leave ................................................................................................... 10 Article 25. Executive Leave .............................................................................................. 1110 Article 26. Holidays ............................................................................................................ 11 Article 27. Probation ....................................................................................................... 1211 Article 28. Review/Evaluation Date ................................................................................. 1211 Article 29. Performance Evaluations ................................................................................... 12 Article 30. Disciplinary Procedure ....................................................................................... 12 Article 31. Grievance Procedure .......................................................................................... 17 Article 32. Demotion/Non-Disciplinary ............................................................................ 2120 Article 33. Layoff Procedure ............................................................................................... 21 Article 34. Management Rights ........................................................................................... 22 Article 35. Savings Clause ................................................................................................... 22 Article 36. Zipper Clause ..................................................................................................... 23 Article 37. Signatures.......................................................................................................... 23
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4 Article 1. TERM OF MEMORANDUM OF UNDERSTANDING
Except where expressly stated otherwise herein, the City of Redlands (“City”) and the Redlands Association of Management Employees (“Unit”) agree that the provisions of this Memorandum of Understanding (MOU) shall become effective on July 1, 2023 2026 and shall expire on June 30, 20262029.
Article 2. PREAMBLE
It is the intent and purpose of this MOU to set forth the understanding of the parties reached as a result of meeting and conferring in good faith regarding, but not limited to, matters relating to the wages, hours, and terms and conditions of employment between the City and the Unit.
Article 3. RECOGNITION
A Unit employee shall be defined as an employee of the City and assigned to the Unit by the City Manager in accordance with City policies and procedures.
Article 4. SALARIES
A. All Unit employees shall receive the following salary increases:
1. Effective the first full pay period after July 1, 20232026, all Unit employees will receive a four seven percent (47%) increase to base salary.
2. Effective the first full pay period after July 1, 20242027, all Unit employees will receive a three two percent (32%) increase to base salary over the prior year.
3. Effective the first full pay period after July 1, 20252028, all Unit employees will receive a three two percent (32%) increase to base salary over the prior year.
B. Compaction: A minimum salary differential of twenty percent (20%) shall be maintained between Management Unit classifications and Mid-Management Unit classifications. In the event there are increases to salaries in mid-management classifications that result in a differential less than twenty percent (20%) between mid-management unit classifications and the management Unit they report to, all management classifications shall be adjusted upward until the differential is maintained. The existing salary differentials within the management unit shall be maintained.
C. All Management Unit employees are responsible for the employee contribution to Social Security and Medicare.
D. Salary Range Restructure:
1. Effective the first full pay period after July 1, 2026, the City shall eliminate Step 0 on the salary range for each classification. Employees on Step 0 at that time shall immediately be placed on Step 1. For those employees being advanced to Step 1, service hours for the purpose of receiving their next merit increase shall not reset.
2. Effective the first full pay period after July 1, 2026, the City shall establish three new steps (Steps 5, 6 and 7) at the top of the salary range for each classification. Each of the new steps shall be two and a half percent (2.5%) higher than the preceding step.
1.3. Advancement to the new Steps 5, 6, and 7 shall continue to occur upon an employee’s anniversary date.
Article 5. RETIREMENT
A. Classic Members
1. All “classic” Unit employees shall personally fund 100% of the 7% of compensation earnable as and for the individual employee’s normal employee PERS contribution. (The City of Redlands | RAME MOU 20232026-20262029
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5 term “classic” member is defined in the Public Employee’s Pension Reform Act of 2013 “PEPRA.”)
All “classic” employee normal contributions required to be paid by the employee, whether paid by the employer or the employee, shall be credited to the member’s CalPERS account.
Whether as authorized by Government Code § 20692, 20636(c)(4) or any other statutory or legal basis, the City shall not report to CalPERS as any type of compensation, any portion of the normal employee PERS contributions required by PERS which are funded by the employee.
2. The City shall continue to include in this contract with CalPERS, the following provisions:
HIGHEST SINGLE YEAR
SURVIVOR CONTINUANCE
2% @ 55 RETIREMENT FORMULA
B. New Members
1. The Public Employee’s Pension Reform Act of 2013 – “PEPRA” (signed by the Governor on 09/07/12,) shall in its entirety be given full force and effect as it may from time to time exist, during and after the term of this MOU, as described below.
2. Unit employees who are “new members” as defined in the PEPRA, shall individually pay an initial member CALPERS contribution rate of 50% of the normal cost rate (as defined and calculated by CalPERS) for the Defined Benefit Plan in which said newly hired member is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (Government Code section 7522.30)
3. Unit employees who are “new members,” as defined in the PEPRA, on and after January 1, 2013, shall be enrolled in the retirement plan of 2%@62 (Government Code section 7522.20(a), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a).) Article 6. EDUCATION INCENTIVE PAY
Unit employees will qualify for a three percent (3%) increase in base salary upon submitting satisfactory proof of a Master or Doctoral degree (i.e., official transcripts) where such degree is not required as part of the employee’s minimum job qualifications. If a Master’s degree is required as part of the employee’s minimum job qualifications, the employee will only be eligible for education incentive pay upon submitting satisfactory proof of a Doctoral degree.
Article 7. LONGEVITY PAY
A. Employees with ten (10) years continuous service with the City, shall receive compensation in the amount of three (3) percent of base salary, effective the beginning of the pay period closest to completion of their tenth (10th) year of serviceadvance to Step “5” on the salary schedule which shall be a minimum of three percent (3%) higher than Step “4,” effective with the beginning of the pay period closest to completion of their tenth (10th) year of service.
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6 B. Employees with fifteen (15) years continuous service with the City, shall receive an additional two (2) percent, effective the beginning of the pay period closest to completion of their fifteenth (15th) year of serviceadvance to Step “6” on the salary schedule which shall be a minimum of two percent (2%) higher than Step “5,” effective with the beginning of the pay period closest to completion of their fifteenth (15th) year of service.
C. The 10-year longevity percentages shall be compounded with the 15-year longevity pay. Incentives and leave cash out shall be calculated based on the combination of base salary and longevity payIn the event that an employee is not at Step 4 when he/she is eligible for the Step 5, at the completion of ten (10) years of service, the employee will advance to the next step in the salary range, and continue to advance based on merit until the employee reaches Step 5.
D. In the event that an employee is not at Step 5 when he/she is eligible for the Step 6, at the completion of fifteen (15) years of service, the employee will advance to the next step in the salary range, and continue to advance based on merit until the employee reaches Step 6.
Article 8. UNIFORM ALLOWANCE
The Fire Marshal who is on payroll at the time the check is issued shall receive a uniform allowance of eleven hundred dollars ($1,100) per year, with $550 paid in January, and $550 paid in JuneJuly.
Article 9. TUITION REIMBURSEMENT
A. Unit employees shall be reimbursed up to the dollar amount charged for the same number of units per term by the University of California, Riverside. An employee shall not receive reimbursement in excess of five thousand dollars ($5,000) in any one fiscal year. The difference between the City’s maximum obligation during any fiscal year and the amount of any actual reimbursement received by the employee during that fiscal year shall not be carried over or be available to use by the employee in any subsequent fiscal year.
B. The course must be satisfactorily completed with a minimum grade of “C” or equivalent to qualify for reimbursement.
Article 10. BILINGUAL PAY
A. Eligible Unit employees will be compensated $100.00 per month for the performance of bilingual skills beginning the first pay period following certification by successful completion of a competency exam administered through the Human Resources Department or third party selected by the City.Eligible Unit employees will be compensated $75.00 per pay period for the performance of bilingual skills beginning the first pay period following certification by successful completion of a competency exam administered through the Human Resources Department or third party selected by the City.
B. Recommendation by the Department Head.
C. The determination of the number of employees designated to receive bi-lingual pay is at the sole discretion of the City.
D. Bilingual pay shall apply regardless of the frequency or total time required to perform translation duties.
E. In the event that a department head’s bilingual employees are not available and a bilingual need occurs, that department head may request that another department head loan a bilingual employee to that department to handle the bilingual need for the duration of the assignment.
F. In the event that an employee which is approved for bilingual pay receives a change in assignment, classification, job duties or is transferred or promoted, a determination may be made by the City of Redlands | RAME MOU 20232026-20262029
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7 employee’s department head that bilingual skills are no longer required for use on the job and this benefit will be removed from the employee without right of appeal.
G. In the event that there are more bilingual employees in a department or location than are required by the City to provide this service, the City will determine a method whereby qualified employees can receive this compensation on a rotational basis.
H. The City reserves the right to determine the languages for which testing will be conducted.
I. The City reserves the right to determine where the use of employee bilingual skills would be best served.
J. The City may require employees to keep a log demonstrating that bilingual skills are being utilized.
K. An employee’s continuation in the bilingual program is subject to periodic evaluation and retesting.
L. Only employees granted bilingual pay shall be required to speak the designated language.
Article 11. DEATH OF EMPLOYEE
A. The eligible dependents of deceased Unit employees shall be entitled to benefits as follows:
1. Sick leave accruals, lifetime medical insurance and other applicable benefits shall be calculated and/or compensated according to the eligibility requirements stated in the current MOU.
2. In the event the deceased employee qualified for a service retirement (i.e. age 50 and with a minimum of five (5) years of service with the City), the City shall calculate and/or compensate benefits in the same manner as an employee service retirement.
Article 12. HEALTH INSURANCE
A. The City shall contribute directly to CalPERS on behalf of each employee three hundred and ninetyseven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989. In addition, the City shall contribute an amount through the City’s cafeteria plan that is equal of the difference between the City’s minimum PEMHCA contribution and the following amounts:
B. City contributions to the cafeteria plan may be used toward available cafeteria benefits, including City medical plan premiums, flexible spending account, and post-employment health plan.
C. The City agrees to provide a stipend of $350, on a monthly basis, for those Unit employees with alternative medical coverage who opt for the stipend in lieu of the medical insurance benefit.
D. Insurance Adjustment: In July of each year, the City shall pay each Unit employee a cash payment in the amount of one hundred and fifty dollars ($150) to offset the co-payments and deductibles for medical insurance plans.
E. Retiree Medical:
1. For all unit members who qualify as an “annuitant” under PEMHCA, the City will contribute directly to CalPERS on behalf of each annuitant three hundred and ninety-seven dollars ($397.00) per month pursuant to Resolution No. 4572, adopted by the City Council on September 5, 1989.
COVERAGE LEVEL
TOTAL CITY CONTRIBUTION
EFFECTIVE JULY 1, 20232026
EFFECTIVE
JANUARY 1, 2024
EFFECTIVE
JANUARY 1, 2025
Employee Only: $900 $750 $775 $800
Employee Plus One Dependent: $1,700 $1,500 $1,550 $1,600 Employee plus Two or more
Dependents:
$2,200 $1,950 $2,025 $2,100
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8 2. Upon service retirement and completion of fifteen (15) or more cumulative years of service with the City, a Unit employee hired prior to March 11, 2010, who qualifies as an annuitant under PEMHCA, may elect to receive as City contribution to a retiree health savings account the difference between the PEMHCA minimum and the cost of fully paid lifetime medical and dental insurance (excludes vision coverage) for the employee and eligible dependents, under the City’s medical and dental insurance programs, and may elect to convert accumulated sick leave to cash using the following formula, or have the option of converting 100% of accrued sick leave hours to service credit, or may use the following formula to convert accrued sick leave to cash and convert the remaining sick leave to service credit.
COMPLETED
YEARS OF SERVICE
CONVERSION
PERCENTAGE
10 - 15 25%
16 - 19 35%
20+ 50%
Unit employees hired on or after March 11, 2010 are not eligible for the lifetime medical benefit.
3. Unit members with ten (10) years of continuous employment with the City who concurrently retire from the City and the CalPERS system and who qualify as an annuitant under PEMHCA may elect to receive the “Medical Bridge.” Under the Medical Bridge, the City will contribute the difference between the PEMCHA minimum and the cost of single party coverage for the retired unit member only for the lowest cost medical and dental insurance plans as provided by the City to its then existing unit members until the member reaches the age of medicare eligibility at which time the benefit will cease and unit members will only receive the PEMHCA minimum contribution. Unit members who receive the medical bridge can select higher cost plans offered by the City to its then existing members and/or coverage for dependents, however, the additional cost for the plan or additional dependents shall be paid for by the unit member and not by the City.
Article 13. DENTAL INSURANCE
The City agrees to pay the full monthly premium for dental insurance under the City’s dental plan or its equivalent for each Unit employee and all eligible dependents.
Article 14. VISION CARE
The City agrees to reimburse each Unit employee up to four three hundred dollars ($400300) every fiscal year for the purchase of frames and lenses or contact lenses and the cost of eye examinations for the employee and/or his/her dependent.
Article 15. LIFE INSURANCE
The City shall contribute the monthly premium for term life insurance in the amount of twenty-five thousand dollars ($25,000) for all Unit employees. Employees may also purchase additional increments of life insurance at the City’s group rate at their own expense.
Article 16. STATE DISABILITY INSURANCE (SDI)
Unit employees shall be required to participate in State Disability Insurance at employees’ expense.
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9 Article 17. VACATION
A. The vacation accrual for Unit employees shall be as follows:
YEARS/MONTHS OF SERVICE ANNUAL
ACCRUAL RATE – HOURS
0 – 4 (0-59 months) 80
5 – 6 (60-83 months) 120
7 – 9 (84-119 months) 140
10–14 (120-179 months) 160
15+ (180 months+) 200
The maximum vacation accrual leave balance shall be 1000 hours. Unit employees shall convert all hours over 800 each year to a qualified 401(a) retirement plan to the maximum allowed by law. The conversion shall occur in January each year.
Article 18. SICK LEAVE
A. ACCRUAL: Unit employees shall receive eight (8) hours of sick leave per month.
B. USE: Employees may use up to half of their annual sick leave accrual, forty-eight (48) hours, to care for ill family members.
C. BUY BACK: In November of each calendar year, each Unit employee may elect to be paid at his/her current hourly rate for each sick leave day accumulated during the following calendar year in excess of six (6) sick leave days in November of the following year. A total of one (1) year’s accumulation, ninety-six (96) hours, must be on the books prior to any compensation being paid. This election is irrevocable and may not be changed once the election is made. Employees in the unit may also choose to accumulate all sick leave days, from calendar year to calendar year, to an unlimited amount.
D. CONVERSION TO CASH: Upon voluntary separation of service or layoff with the City, Unit employees with ten (10) years or more of continuous service shall be eligible to cash in unused sick leave at the following formula:
YEARS OF SERVICE PERCENT
10 – 15 25 %
16 – 20 35 %
21+ 50 %
E. UPON RETIREMENT: In lieu of the benefit D and upon retirement under the PERS retirement plan, Unit employees will have the option of: (1) converting one hundred percent (100%) of individual sick leave accruals to service credit; or, (2) Unit employees may elect to have all remaining sick leave accrued at the time of retirement converted to cash value at their final rate of pay, and deposited in the Post Employment Health Plan (PEHP) where it can be used for applicable premiums payable under the City’s medical insurance program for the employee and the employee’s eligible dependents. In the event that the employee dies prior to exhaustion of the cash value of said benefits, the remaining cash value may be applied toward the premiums of covered dependents until exhausted, subject to the conditions and limitations of the PEHP.
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10 Article 19. DEFERRED COMPENSATION
The City shall provide a 457 (b) deferred compensation plan to Unit employees. Unit employees may make voluntary contributions to the 457 (b) plan up to the maximum allowed by law. Participation by Unit employees is optional and all other costs shall be borne by plan participants.
Article 20. 401 A PLAN
The City shall pay the costs to administer a 401(a) Retirement Plan. In January of each year, the City of Redlands makes an annual contribution to deferred compensation on behalf of each Unit employee in the amount of up to $1,125 per year + 3% of salary. The full contribution amount shall be provided based on a complete one year of service in the preceding year. For new Unit employees and employees transferring into the Unit, the amount shall be prorated on a monthly basis for period of service within Unit in the preceding year. In the event that an employee leaves the Unit, they shall receive a final contribution in a prorated amount of up to $1,125 + 3% of salary based on their period of service in their final year in the Unit and shall not receive an additional contribution in January.
Upon retirement, Unit employees shall deposit the cash value of vacation leave, incentive payouts, floating holidays, and executive leave to the program in the maximum amount allowable.
Article 21. VEHICLE ALLOWANCE
The City may assign a City-owned vehicle to a Unit employee for use on City business. If assigned, a Cityowned vehicle may be used by employee for City business and for commuting to and from the employee’s residence within a forty (40) mile radius of the City of Redlands. The City shall incur all costs related to the provision of the vehicle, including maintenance and insurance. The employee shall be responsible for ensuring the City’s vehicle is appropriately secured when parked at the employee’s residence.
Article 22. BEREAVEMENT LEAVE
In the event of a death in the immediate family, an eligible Unit employees will be compensated with four (4) days paid leave. In addition, eligible employees may be allowed to use accrued sick leave with full pay not to exceed three (3) days. Immediate family shall be defined as the following relatives to either the employee or spouse or registered domestic partner: spouse, registered domestic partner, child (including foster child or ward of the court), parent, grandparent, brother, sister, niece, nephew, step-children, and grandchildren. The definition of immediate family will also include the aunt and uncle of the employee only. Bereavement leave may also be used for the significant other of the employee provided the employee shows proof of cohabitation.
Article 23. LEAVE OF ABSENCE WITHOUT PAY
If a Unit employee takes more than five (5) accumulated days of leave without pay in a calendar year, commencing at the beginning of the sixth (6th) day of leave without pay and any day of leave without pay thereafter during the calendar year; sick leave and vacation accruals will be adjusted proportionately to eliminate benefit accruals for any day an employee is on leave without pay status.
Article 24. PERSONAL LEAVE
Unit employees may use up to a maximum of eight (8) hours of accrued sick leave per year for personal leave, subject to advanced approval by his/her supervisor.
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11 Article 25. EXECUTIVE LEAVE
Unit employees shall receive one hundred twenty (120) hours of Executive Leave annually for use during the calendar year. Any leave hours above twenty (20) hours on the books as of December 31 of each year, shall be removed and not carry over to the following year. Executive leave shall be used within the calendar year or it will be removed from the books as of December 31st of each year. During the term of the Agreement, the parties agree to meet to discuss potential modification of the amount of Executive Leave provided annually under this Agreement. The parties acknowledge that the City is under no obligation to make any modification to the amount of Executive Leave provided under this Agreement and that any inability to reach agreement shall not be subject to impasse resolution procedures.
Article 26. HOLIDAYS
A. The holidays which will be honored for Unit employees will include the following, along with any additional day as designated by action of the City Council:
HOLIDAY DAY OBSERVED
New Year’s Day January 1
Martin Luther King Day Third Monday in January
President’s Day Third Monday in February
Cesar ChavezFarm Workers Day March 31
Memorial Day Last Monday in May
Juneteenth June 19
Independence Day July 4
Labor Day First Monday in September
Columbus Day Second Monday in October
Veteran’s Day November 11
Thanksgiving Day Fourth Thursday in November
Friday after Thanksgiving Day Friday after Thanksgiving Day Christmas Eve December 24
Christmas Day December 25
B. If the holiday falls on Saturday, Friday shall be designated as the holiday and if the holiday falls on Sunday, Monday shall be designated as the holiday. If a scheduled holiday falls on an employee’s regular day off, the employee shall bank the holiday at their regularly scheduled hours to be used at a later date. Employees should not be scheduled to work both the designated holiday and the actual holiday.
C. Holiday pay shall be compensated in accordance with the employee’s standard work schedule.
Employees on a 9-80 schedule shall bank 8 hours of holiday if the holiday lands on a closed Friday.
D. Unit employees are entitled to receive twenty hours of floating holidays annually. Floating holidays accrued but not taken are paid off during January of the year following the year in which the holidays were accrued.
E. The A.K. Smiley Public Library will be closed on the Saturday following Thanksgiving Day.
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12 Article 27. PROBATION
A. Unit employees newly hired on or after March 11, 2010 shall serve a probationary period of twelve (12) months.
B. Unit employees who are promoted shall serve a probationary period of six (6) months.
C. Probationary periods may be extended as set forth in the City's Personnel Rules and Regulations.
Article 28. REVIEW/EVALUATION DATE
For all Unit employees the “review/evaluation date” shall be the day of the month in which the employee completes twelve (12) months of employment. When an employee receives a promotion, the new review/evaluation date shall be the day of the month in which the employee completes six (6) months of employment in the new classification. When a salary increase is granted, it shall be effective on the beginning of the pay period falling closest to the day of the month the employee was hired or promoted.
Article 29. PERFORMANCE EVALUATIONS
In cases where a performance evaluation has not been received by a Unit employee within 30 days of the eligibility date, the employee should contact the supervisor, who must complete and file the evaluation within ten (10) working days.
Article 30. DISCIPLINARY PROCEDURE
A. The Investigatory Interview Process
Prior to any investigatory interview or consultation between an employee and the Department Head or City Manager, that could reasonably be construed to result in disciplinary action against the employee, the employee shall be given notice of the interview or consultation as soon as reasonably practical, and shall be advised of his or her right to representation under this section; and upon request shall be afforded an opportunity to contact and consult privately with a representative of the Unit. If requested, the employee may have Unit representative present during any such investigatory interview or consultation, and, to the extent practicable, such interviews or consultations shall be conducted during an employee’s working hours. Only those persons reasonably necessary to the conduct of the interview shall be present.
The employee or the City may elect to record any such investigatory interview or consultation, unless the parties mutually agree not to record such interview or consultation; however, in the event the City elects to record such an interview or consultation, it shall upon request provide the employee with a copy of said recording. The cost of providing a copy of the recording to the employee shall be borne by the employee.
B. Disciplinary Procedures
No employee who has successfully completed probation, shall be disciplined without cause.
Disciplinary action shall be defined to include: oral warnings, written reprimands, suspensions, demotions (non-probationary), reduction in pay and discharge. Oral and written reprimands may be initiated at the supervisor/Division Manager level. Disciplinary action more serious than a written reprimand must be initiated at the Department Head level.
1. Notice of Proposed Action
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13 Whenever an employee is to be discharged, suspended (for more than five (5) working days) demoted (non-probationary), or reduced in step, for disciplinary purposes, written notice of at least five (5)1 days of the proposed disciplinary action shall be given before such action is to be taken and must include:
a. Notice of proposed action;
b. Reasons for proposed action;
c. A copy of charges stating specific incidents or specific courses of conduct, e.g. as evidenced by work performance evaluations, and a copy of the written materials upon which the decision to take proposed disciplinary action is based; and
d. A notice to the employee of the right to respond in writing or orally within the five (5) day period.
In the case of a suspension of five (5) working days or less, the foregoing procedures shall be afforded the employee either before or during the suspension, or within a reasonable time thereafter.
2. Limitations and Exceptions
a. Oral notice is insufficient as full notice to an employee and may be given only as the initial notice in extraordinary circumstances which call for immediate action. b. Prior written notice is required in each case, unless provided otherwise herein, regardless of seriousness unless extraordinary circumstances are involved. c. Employees may be suspended without prior written notice in extraordinary circumstances when it is essential to avert harm to the public, other employees, or to avert serious disruption of governmental business. The appointing authority may schedule an employee for vacation or holiday leave as the circumstances may warrant. Extraordinary circumstances include but are not limited to situations involving misappropriation of public funds or property; working while under the influence of alcohol or intoxicating drugs; open insubordination; commission of a crime involving moral turpitude punishable by imprisonment for six (6) months or more; and disruption of City business through willful misconduct (altercations, etc.). d. Oral notice is insufficient as full notice for proposed disciplinary action. In extraordinary circumstances when immediate suspension, demotion, removal, or reduction in step is warranted, initial notice may be given orally. The employee should be told when the initial action is taken what the reasons for the actions are and, in addition, the employee will have an opportunity to respond in writing and/or orally to those charges. The written charges in the case of an immediate disciplinary action must be prepared as soon as possible and normally within a day or two (2) of the initial oral notice.
3. Employee's Response to Proposed Discipline
a. An employee receiving a Notice of Proposed action shall have the right to respond to the a Department Head from a different Department. An employee’s opportunity to respond to the Department Head is not intended to be an adversary hearing. An employee has the right to have a representative of his/her own choosing at the meeting. The employee shall not be accorded the opportunity to cross-examine a department’s witnesses, nor to present a formal case in opposition to the proposed discipline. However, the limited nature of this response does not obviate the Department Head’s responsibility to initiate further investigation if the 1 Unless specifically noted to be "working days," any reference to days is calendar days.
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14 employee’s version of the facts raises doubts as to the accuracy of the Department Head’s information leading to the discipline proposal. An employee may elect not to respond, thereby waiving any further pre-disciplinary response.
b. The Department Head from a different Department will evaluate the proposed discipline in light of the employee’s response, if any. Within ten (10) days of the employee’s response, or deadline for response, a decision will be transmitted in writing to the employee. Service of the decision will be in person or by mail.
4. City Manager Level Appeal
a. Any permanent employee shall have the right to appeal any termination, suspension, reduction in salary, or non-probationary demotion. The appeal process shall not be applicable to those positions which may be deemed exempt or to probationary employees. The appeal process shall not be applicable to verbal and written reprimands, probationary demotions, performance evaluations and denial of performance increases. An employee desiring to appeal the Department Head’s decision shall have ten (10) days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the City Manager and received in the City Manager’s office so that same is date stamped by the City Manager’s office within the ten (10) day period.
b. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the Department Head shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the City Manager, an appeal meeting shall be scheduled.
c. The meeting with the City Manager shall be conducted in the same manner as the Response to Proposed Discipline set forth in paragraph 2(C) above. d. The City Manager will evaluate the discipline in light of the employee’s response, if any. Within ten (10) days of the employee’s response a decision will be transmitted in writing to the employee. Service of the decision will be in person or by mail.
5. Advisory Arbitration
a. An employee desiring to appeal the City Manager's decision shall have ten (10) days after receipt of the response to file an appeal. The employee's request for appeal must be addressed to the City Manager and received in the City Manager's office so that same is date stamped by the City Manager’s office within the ten (10) day period. b. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the City Manager shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the City Manager, an appeal hearing shall be established as follows:
i. The California State Mediation and Conciliation Service shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee.
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15 of hearing officers (the right to strike the first name to be determined by lot) until one (1) name remains, and that person shall be the hearing officer. ii. Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the City Manager. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. iii. All hearings shall be private provided, however, that the hearing officer shall, at the request of the employee, open the hearing to the public. iv. Subpoenas and subpoenas duces tecum pertaining to a hearing shall be issued at the request of either party, not less than seven (7) days, prior to the commencement of such hearing. After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
v. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence. vi. Each party shall have these rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the employee does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary. vii. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:
1. The party imposing discipline shall be permitted to make an opening statement;
2. The appealing party shall then be permitted to make an opening statement;
3. The party imposing disciplinary action shall produce the evidence on his/her part; the City bears the burden of proof and burden of producing evidence;
4. The party appealing from such disciplinary action may then open his/her defense and offer his/her evidence in support thereof; the employee bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
5. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case;
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16 6. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
i. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. His/her decision shall set forth which charges, if any, are sustained and the reasons therefore. The opinion shall set forth findings of fact and conclusions. ii. The hearing officer may recommend sustaining or rejecting any or all of the charges filed against the employee. He/she may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee. He/she may not recommend discipline more stringent than that issued by the City Manager.
iii. The hearing officer’s opinion and recommendation shall be filed with the City Council, with a copy sent to the charged employee, and shall set forth his/her findings and recommendations. If it is a dismissal hearing and a dismissal is not the hearing officer’s recommendation, the opinion shall set forth the date the employee is recommended to be reinstated and/or other recommended action. The reinstatement date, if appropriate, may be any time on or after the date of disciplinary action. iv. Within sixty (60) days of the receipt of the hearing officer’s findings, recommendation, and transcript, the City Council shall adopt, amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision which modifies or rejects the recommendation of the hearing officer, the City Council shall order and read the transcript of the hearing. Prior to making a decision which supports the hearing officer, the City Council may order and read the transcript, at its option. The City Council shall not conduct a de novo hearing. The City Council may, at its option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Council shall be final and conclusive. Copies of the City Council’s decision, including the hearing officer’s recommendation(s), shall be filed where appropriate, including the employee’s personnel file, unless no discipline is upheld by the City Council.
v. Each party shall equally bear the cost and fees of the hearing officer, the cost of facilities, the court reporter and transcripts. Each party shall bear its own witness and attorney fees.
If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties which result in a hearing officer fee.
vi. In the case of suspension, demotion, reduction in salary, or dismissal prescribed by the City Council, the time of such suspension, demotion or dismissal shall be effective from the first day after such delivery of said decision or shall relate back to and be effective as of the City of Redlands | RAME MOU 20232026-20262029
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17 date the employee was disciplined pending hearing before and decision by the City Council, whichever is applicable. If discipline imposed resulted in loss of pay, and the decision results in reduction or elimination of loss of pay, the pay loss shall be restored to the employee based on the number of standard work hours lost computed at his/her then base hourly rate.
vii. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.
Article 31. GRIEVANCE PROCEDURE
A. Definition
A “grievance” is a formal, written allegation by a grievant that he/she has been adversely affected by an existing violation, misinterpretation or misapplication of the specific provisions of the Memorandum of Understanding, provisions of the Personnel Rules and Regulations, and/or written City Policy. Other matters for which a special method of review is provided by law, ordinance, resolution, or by administrative regulations and procedures of the City, are not within the scope of this procedure. This procedure is not to be used in lieu of the Disciplinary Appeal Procedure set forth in Article 27.
B. Procedure
1. Every effort shall be made to resolve a grievance through discussion between the employee and his/her immediate supervisor. It is the spirit and intent of this procedure that all grievances are settled quickly and fairly without subsequent discrimination against employees who may seek to adjust a grievance. Every effort should be made to find an acceptable solution at the lowest level of supervision. Within fifteen (15) days2 after a grievant knew, or by reasonable diligence should have known, of the condition upon which a grievance may be based, the grievant shall attempt to resolve it by an informal conference with the grievant’ s immediate supervisor. A supervisor shall render a verbal decision within seven (7) days of the conclusion of the informal conference.
2. If the problem cannot be resolved between the employee and the supervisor, the employee may, within seven (7) days from the date of receiving the answer from his/her supervisor, file a written grievance and request a meeting with the Division Manager, if one exists, in order to discuss the grievance. The written grievance shall contain the following information:
a. Name of grievant and job title;
b. Department/Section;
c. Clear and concise statement of the nature of the grievance including the circumstances and dates involved;
d. The specific provision(s) of the M.O.U., City Policy or Personnel rules alleged to have been violated;
e. Requested remedy;
f. Name of the grievant’s Labor Representative, if any; and g. Date and signature of the grievant or Labor Representative.
3. The Division Manager shall render a decision and comments in writing and return them to the grievant within ten (10) days after receiving the written grievance. 2 Days refer to calendar days.
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18 4. If the Division Manager and employee cannot reach a solution to the grievance (or if a Division Manager does not exist), the employee may, within seven (7) days from the date of receiving the answer from the Division Manager, request, in writing, a meeting with the Department Head.
5. The Department Head shall render his/her decision in writing within fifteen (15) days of receiving the appeal. If the Department Head and employee are unable to arrive at a satisfactory solution, the employee may, within ten (10) days from the date of the decision by the Department Head, submit a written appeal to the Human Resources Director.
6. The City Manager shall review the grievance and respond to the employee within twenty (20) days of receiving the appeal. The response shall be in writing.
7. An employee desiring to appeal the City Manager's decision shall have ten (10) days after receipt of the response to file an appeal. The employee’s request for appeal must be addressed to the Human Resources Director and received in the Human Resources office so that same is date stamped by the Human Resources office within the ten (10) day period.
8. If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for the failure is shown, the grievance shall be considered conclusive as set forth in the City Manager's decision and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the Human Resources Director, an appeal hearing shall be established as follows:
a. The California State Mediation and Conciliation Service shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee. Within ten (10) days following receipt of the list of hearing officers, the parties shall confer to select the hearing officer. The parties shall alternately strike one (1) name from the list of hearing officers (the right to strike the first name to be determined by lot) until one (1) name remains, and that person shall be the hearing officer.
b. Where practicable, the date for a hearing shall not be less than twenty (20) days, nor more than sixty (60) days, from the date of the filing of the appeal with the Human Resources Director. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of hearing. c. All hearings shall be private provided, however, that the hearing officer shall, at the request of the grievant, open the hearing to the public.
d. Subpoenas and subpoenas duces tecum pertaining to a hearing shall be issued at the request of either party, not less than seven (7) days, prior to the commencement of such hearing.
After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officer.
e. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be admitted if it is the sort of evidence on which reasonable persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence. The hearing officer shall rule on the admission or exclusion of evidence.
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19 f. Each party shall have these rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross-examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the grievant does not testify in his/her own behalf, he/she may be called and examined as if under crossexamination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary. g. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:
i. The grievant shall be permitted to make an opening statement; ii. The City shall then be permitted to make an opening statement; iii. The grievant shall produce the evidence on his/her part; the grievant bears the burden of proof and burden of producing evidence;
iv. The City may then open its defense and offer its evidence in support thereof; the City bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;
v. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case; vi. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.
h. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence. He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause, otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing. The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hearing as possible and in no event later than thirty (30) days after conducting the hearing. The opinion shall set forth findings of fact and conclusions.
i. The hearing officer may recommend sustaining or rejecting any or all of the grievance. j. The hearing officer’s opinion and recommendation shall be filed with the Human Resources Director, with a copy sent to the grievant, and shall set forth his/her findings and recommendations.
k. Within sixty (60) days of the receipt of the hearing officer’s findings recommendation, and transcript, the City Council shall adopt, amend, modify or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision which modifies or rejects the recommendation of the hearing officer, the City Council shall order and read the transcript of the hearing. Prior to making a decision which supports the hearing officer, the City Council may order and read the transcript, at its option. The City Council shall not conduct a de novo hearing. The City Council may, at its option, allow limited oral arguments and/or may request and review written statements from either side. The decision of the City Council shall be final and conclusive. Copies of the City Council’s decision, including the hearing City of Redlands | RAME MOU 20232026-20262029
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20 officer’s recommendation(s) shall be filed where appropriate, including the grievant's personnel file.
l. Each party shall bear equally the cost of facilities, fees and expenses of the hearing officer, including the court reporter and transcripts. Each party shall bear its own witness and attorney fees. If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties which result in an arbitration fee. m. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.
9. If the time limits for employees’ appeals at any step should elapse, the grievance shall be considered withdrawn. Time limits may be extended by mutual consent. If the City fails to respond within the prescribed time limits, the grievance will be deemed to have been denied and the employee may go to the next step. If the City Manager fails to respond within the prescribed time limit, the grievance will be deemed to have been denied and the employee will be deemed to have exhausted his/her administrative remedy.
10. The employee may request the assistance of another person of his/her own choosing in preparing and presenting his/her grievance at any level of review. In the event the employee desires the presence of a representative who is an employee of the City, he/she shall make such request through the supervisor and the supervisor shall make the necessary arrangements for the employee representative to be present.
11. The employee and/or his/her representative may use a reasonable amount of work time as determined by the appropriate supervisor or Department Head in presenting the grievance.
However, no employee shall absent himself/herself without first being excused by his/her supervisor.
12. No employee shall be required to be represented by an employee organization in processing a grievance.
13. Employees shall be assured freedom from reprisal for using the grievance procedures by both the City and the employee organization.
14. The settlement terms of a grievance which is processed by an employee individually or by a recognized employee organization shall not conflict with the express provisions of a Memorandum of Understanding between the City and the formally recognized employee organization for such unit.
15. A group grievance may be filed when one (1) set of circumstances or occurrences affects more than one (1) employee in the same manner or to the same extent. The group may file one (1) document which all members of the group have read and signed. Members of the group shall be limited to those who have signed the grievance. The resolution of a group grievance may not be consistent among all employees in the group grievance due to differences in the circumstances or occurrences that brought about the grievance.
16. A group grievance affecting all members of an employee organization may be brought by the employee organization itself. In such case the procedure shall be commenced directly at the City Manager level within fifteen (15) days after authorized representatives of the employee organization knew, or by reasonable diligence should have known, of the condition giving rise to the grievance and shall be subject to all applicable time limitations and the provisions set forth above.
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21 Article 32. DEMOTION/NON-DISCIPLINARY
Unit employees who are demoted due to layoff or other non-disciplinary reasons will be required to serve a new probationary period in the lower classification, provided they have not held regular status in the lower classification previously. While serving this new probationary period, the employee will retain due process rights and cannot be disciplined or terminated from City service without due process.
Article 33. LAYOFF PROCEDURE
A. Should the City Manager determine reductions in force to be necessary due to lack of work or for financial reasons, he/she may initiate Layoffs. Classifications to be affected and the number of employees included will be determined by the City.
B. In determining the order of Layoffs, a combination of factors shall be considered, including but not limited to: qualifications, productivity, general performance, seniority with the City of Redlands, seniority in job classification, and needs of the City. Variations from the order of Layoffs and recall from Layoff may occur when the City deems such variations appropriate under the circumstances.
C. The factors the City, in its discretion, may use to determine include but are not limited to the following:
1. An employee's last four performance evaluations, if any;
2. Any history of employee commendations, awards, etc.;
3. Any history of employee disciplinary action;
4. Attendance record, including tardiness and unexcused absences;
5. Safety record, including personal injury and damage to city property;
6. Probationary and temporary employees shall be laid off before a regular employee in the same classification;
7. Between two regular appointees in the same classification with the same skills, abilities, qualifications, merit and/or record, the employee with lesser seniority in the classification may be laid off first;
8. Between two regular appointees in the same classification the employee with lesser skills, abilities, qualifications, merit and\or record may be laid off first, without regard to seniority;
9. Memoranda of Understanding ("MOU") between the City and affected bargaining units.
D. BUMPING
1. “Bumping” means the displacement of an employee from his/her position by an employee in a higher classification who formerly held the same position.
2. Where two or more employees are laid off from the same position, the employee with the greatest seniority in that classification shall have the first opportunity to bump as set forth below.
3. A laid-off employee shall be entitled to bump an employee in the same position previously held by the laid off employee. Alternatively, an employee may "bump" into a position in a different department which he/she held within the prior five (5) years. The laid off employee must be able to perform the essential job functions of the former position and possess the minimum qualifications of the position as specified by the job classification specification. A laid-off employee shall not bump an employee with greater skills, abilities, qualifications, merit and/or record. Laid off employees may also be placed in a vacant lower classification for which they meet the minimum qualifications. Employees must utilize the option that places them in the highest available position.
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22 4. A laid-off employee shall be entitled to bump an employee in a lower position directly managed by the laid-off employee. The laid-off employee must be able to perform the essential job functions of the lower position and possess the minimum qualifications of the position as specified by the job classification. Employees must utilize the option that places them in the highest position.
5. The City will notify laid-off employees of any positions available for bumping. Following such notification, the employee must notify the Human Resources Director in writing of his/her intent to exercise the bumping rights within seven (7) calendar days, and the position and classification in to which he/she intends to bump. Failure to provide such notification will be deemed a waiver of bumping rights by the employee.
6. Where there is more than one employee in a position available for bumping, the factors in paragraph C of this Section will be used to determine which employee, if any, will be bumped.
7. The process will be repeated at the next classification level where an employee bumps in and creates an overage in that classification.
8. Any displaced employee shall be considered as laid-off for the same reason as the person who displaced them and shall in the same manner be eligible to displace another employee based on the criteria specified in paragraph C of this Section.
E. REINSTATEMENT FROM LAYOFF
1. The names of probationary and regular employees who have been laid off shall be placed on appropriate reemployment lists. Such names shall remain thereon for a period of one year unless such persons are sooner reemployed.
2. When a reemployment list is to be used to fill vacancies, the Human Resources Director shall certify from such lists the number of names equal to the number of vacancies. An employee who is reemployed shall receive credit for former service for purposes of seniority, benefit compensation, and salary advancement.
3. Employees who, following layoff from a position or layoff from City employment may be reinstated upon the recommendation of the Department Head and with the approval of the Human Resources Director, to the position from which they were laid off based on their qualifications, availability, and the needs of the organization pursuant to this paragraph.
Article 34. MANAGEMENT RIGHTS
Management rights shall consist of the exclusive right to determine the mission of its constituent departments, commissions, boards; set standards of service; determine the procedures and standards of selection for employment and promotion; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other legitimate reasons; maintain the efficient of work; maintain the efficient of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; determine the content of job classifications; take all necessary actions to carry out its mission in emergencies; exercise complete control and discretion over its organization and the technology of performing its work.
Article 35. SAVINGS CLAUSE
If any provision of this MOU, or the application of any provision, should be rendered invalid by court or legislative action, the remaining portions of this Agreement shall remain in full force and effect.
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23 Article 36. ZIPPER CLAUSE
The parties agree that all negotiable items have been discussed during negotiations leading to this MOU, including salaries and benefits, and conditions of employment and therefore further agree that negotiations will not be reopened on any item during the life of this MOU except my mutual agreement or as provided elsewhere in this MOU.
Article 37. SIGNATURES
CITY OF REDLANDS
REDLANDS ASSOCIATION OF
MANAGEMENT EMPLOYEES - RAME
EDDIE TEJEDAMARIO SAUCEDO , MAYOR BRIAN FOOTE, PRESIDENT DATE
DONALD YOUNG, VICE PRESIDENT DATE
ADOPTED, SIGNED AND APPROVED THIS 16TH 6
TH
DAY OF JUNE. 20232026
ATTEST:
_______________________________________
Jeanne Donaldson, City Clerk
City Council AGENDA ITEM NO. K2.
DATE: June 16, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of the Fire Department's continued membership in the CONFIRE Joint Powers Authority for Fiscal Year 2026-27 and authorization to pay the associated annual service fee in an amount not to exceed $890,632 (Fire Chief Sessler)
MOTION:
If the City Council determines that staff's recommendation is appropriate, the following motion is provided:
I move to approve the continued participation of the Fire Department in the CONFIRE Joint Powers Authority and authorize the payment of the associated annual service fee in an amount not to exceed $890,632.
RECOMMENDATION:
Staff recommends that the City Council approve the continued participation of the Redlands Fire Department in the CONFIRE Joint Powers Authority and authorize the annual service fee in an amount not to exceed $890,632 for Fiscal Year 2026-2027. Continued membership in CONFIRE ensures the City's access to regional fire and emergency medical dispatch services, public safety communications infrastructure and shared technology resources that support efficient and effective emergency response.
DISCUSSION:
In 1990, the City of Redlands joined with the cities of Colton, Loma Linda, Rialto and the County of San Bernardino to form the Consolidated Fire Agencies of the East Valley, known as CONFIRE. This regional partnership was established through a Joint Powers Agreement (JPA), pursuant to Title 1, Division 7, Chapter 5 of the California Government Code, which authorizes public agencies to jointly exercise powers they hold in common.
The founding agencies recognized the need for a coordinated regional approach to fire protection and public safety communications. They determined that the centralized use of public safety radio channels and a shared computeraided dispatch system would more effectively and efficiently serve their communities. By combining resources, the participating agencies benefit from improved interoperability, cost savings and enhanced service delivery.
Through this cooperative effort, CONFIRE provides centralized dispatching for fire and emergency medical services, serves as a secondary public safety answering point for 9-1-1 calls, and supports information technology services for member agencies. The governance and operational practices of CONFIRE are directed collectively by the member agencies to ensure mutual benefit and accountability.
The City of Redlands’ continued participation in CONFIRE for Fiscal Year 2026–2027 supports the City’s commitment to regional collaboration and high-quality public safety services. Although the CONFIRE Joint Powers Authority (JPA) agreement remains in effect unless the City of Redlands chooses to withdraw, staff requires approval to pay the associated fees. The annual service fee for Fiscal Year 2026–2027 is $890,632.
ALTERNATIVES:
The City Council may choose not to authorize the continued participation of the Redlands Fire Department in the CONFIRE Joint Powers Authority and may 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
Danielle Garcia, Interim Assistant City Manager
James Garland, Interim Management Services/Finance Director PREPARED BY:
Bruni Reyes, Management Analyst
FISCAL IMPACT
Fiscal Year: FY2026-27
Revenue Generating: No
Amount: $890,632
Budgeted Y/N: Yes
Account No.: 101250-6907
Additional Appropriation Required: No
Discussion:
The Confire JPA total annual fee for Fiscal Year 2026-2027 is $890,632. Funding has been included in the FY 2026-2027 Proposed Budget to cover this cost.
Attachments
JPA_Agreement_with_County_1990.pdf
Revenue_by_Agency_Sheet.pdf
City Council AGENDA ITEM NO. K3.
DATE: June 16, 2026
TO: Honorable Mayor and City Council Members
SUBJECT: Consideration of Resolution No. 8796 Authorizing Certificates of Participation and Approving a Ground Lease, a Lease Agreement, a Trust Agreement, a Purchase Agreement, a Continuing Disclosure Certificate, and an Official Statement with Respect to Such Certificates and Authorizing Related Actions in an amount not to exceed $85,000,000 for Safety Hall, Fire Station Construction, and Library HVAC Improvements Project (Interim Assistant City Manager Garcia) MOTION:
If the City Council determines that staff's recommendation is appropriate, the following motion is provided:
I move to adopt Resolution No. 8796, authorizing the execution and delivery of Certificates of Participation evidencing principal in an aggregate amount not to exceed $85,000,000; approving a Ground Lease, Lease Agreement, Trust Agreement, Purchase Agreement, Continuing Disclosure Certificate, and Official Statement with respect to such Certificates; and authorizing related actions.
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 8796, authorizing the execution and delivery of Certificates of Participation, Series 2026, in an aggregate principal amount not to exceed $85,000,000, to finance a portion of the costs associated with the City’s Safety Hall facility, Fire Station construction, related improvements, and certain heating, ventilation, and air conditioning system improvements for the A. K. Smiley Library.
The Resolution also approves, in substantially final form, the financing documents necessary to complete the transaction, including the Ground Lease, Lease Agreement, Trust Agreement, Purchase Agreement, Continuing Disclosure Certificate, Preliminary Official Statement, and related documents, and authorizes the Mayor and City Manager, as authorized officers, to execute the necessary documents and take related actions to complete the financing.
DISCUSSION:
The City has been planning for the construction, installation, and acquisition of major public safety capital improvements, including a new Safety Hall police facility and related improvements, a city fire station and related improvements, and the acquisition and installation of certain heating, ventilation, and air conditioning systems for the Library (collectively, the "Project"). These improvements represent significant long-term public infrastructure investments intended to support essential City operations, improve public safety service delivery, and address major facility needs.
To finance a portion of these costs, the City proposes to bring about the execution and delivery of City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities) (the “Certificates”). The proceeds of the Certificates will be used to finance a portion of the Project, fund capitalized interest, and pay costs incurred in connection with the execution and delivery of the Certificates.
Financing Structure
The proposed financing is structured as a lease financing between the City and the Redlands Public Improvement Corporation (Corporation). Under this structure, the City will lease certain City-owned real property and improvements, consisting of the future Safety Hall police facility and site, to the Corporation pursuant to a Ground Lease. The Corporation will then lease the property back to the City pursuant to a Lease Agreement.
Under this financing structure, the City will make lease payments under the Lease Agreement, and those lease payments will be used to repay the investors who purchase the Certificates. In simple terms, the Certificates give investors the right to receive their share of the City’s lease payments over the term of the financing.
The Corporation will assign its right to receive those lease payments to U.S. Bank Trust Company, National Association, as trustee, so that the trustee can collect the City’s payments and distribute them to the certificate holders.
Unlike a General Obligation Bond, which is repaid from a voter-approved property tax levy, Certificates of Participation are repaid from lease payments made by the City from legally available funds. Cops do not impose a new tax nor do they require a separate property tax levy. Instead, they allow the City to finance long-lived public facilities through a lease structure, with annual payments incorporated into the City's long-term financial plan.
This type of structure is commonly used by California local agencies to finance major public facilities. The City retains operational control of the leased property, and the lease structure provides investors with a defined stream of rental payments while allowing the City to finance capital improvements over time.
Documents Approved by the Resolution
Resolution No. 8796 approves the documents necessary to complete the financing transaction. These documents include:
1. Ground Lease – provides for the lease of the property from the City to the Redlands Public Improvement Corporation;
2. Lease Agreement – provides for the lease-back of the property to the City and establishes the City’s rental payment obligations;
3. Trust Agreement – establishes the terms for execution and delivery of the Certificates and administration of the payment structure by the trustee;
4. Purchase Agreement – provides for the sale of the Certificates to BofA Securities, Inc. and Stifel, Nicolaus & Company, Incorporated, as co-underwriters;
5. Continuing Disclosure Certificate – establishes the City’s ongoing disclosure obligations to provide annual financial and operating information and notices of certain events; and
6. Preliminary Official Statement and final Official Statement – provide information to investors and prospective investors regarding the City, the Project, and the Certificates.
The Certificates constitute securities for purposes of state and federal securities laws. Accordingly, the Official Statement is an important disclosure document used in connection with the offering and sale of the Certificates.
The Resolution authorizes the Preliminary Official Statement to be deemed final for purposes of Rule 15c2-12 under the Securities Exchange Act of 1934, except for certain information permitted to be omitted prior to final pricing.
Financing Team
The City has engaged KNN Public Finance to serve as municipal advisor in connection with the delivery of the Certificates and related financial matters. BofA Securities, Inc. and Stifel, Nicolaus & Company, Incorporated have been selected as co-underwriters. Orrick, Herrington & Sutcliffe LLP is serving as special counsel and disclosure counsel to the City.
Parameters of the Financing
The Resolution authorizes the execution and delivery of Certificates in an aggregate principal amount not to exceed $85,000,000. The Resolution also establishes certain parameters for the financing, including that the true interest cost applicable to the Certificates shall not exceed 5.00% per annum and that the underwriters’ discount shall not exceed 0.30% of the aggregate principal amount of the Certificates.
Exhibit A to the Resolution provides the good faith estimates required under California law. Based on the City’s financing plan and market conditions at the time the estimates were prepared, KNN Public Finance has provided the following estimates:
These estimates are preliminary and subject to change based on market conditions, the actual sale date, final principal amount, amortization schedule, interest rates at the time of sale, and any adjustments to the City’s financing plan.
Upon execution of the Lease Agreement, the City will be obligated to make rental payments from any legally available funds of the City. The actual annual payment amount will be determined at the time of sale based on final market conditions, principal amount, amortization, interest rates, and other financing terms.
The Resolution does not itself appropriate funds for construction or project expenditures; rather, it authorizes the financing mechanism and related documents necessary to complete the transaction. Debt service associated with the Certificates has been and will continue to be incorporated into the City’s long-term financial planning and future operating budgets.
The financing has been structured to fund a portion of the City’s major public safety facility needs while spreading the cost of long-lived capital assets over time. Staff will continue to monitor the City’s overall debt profile, General Fund capacity, and future budget impacts as part of the City’s broader financial planning process.
Debt Policy and Compliance
The City has previously adopted a local debt policy that complies with Section 8855(i) of the California Government Code. The Resolution provides that the execution and delivery of the Certificates, as contemplated, is in compliance with the City’s Debt Management Policy.
The Resolution also authorizes related actions necessary to complete the financing, including obtaining title insurance, making final changes to documents consistent with the approved parameters, executing certificates and agreements, and taking other actions necessary to give effect to the financing documents.
ALTERNATIVES:
The City Council may choose not to adopt Resolution No. 8796. If the Resolution is not adopted, the City would not proceed with the proposed Certificates of Participation financing at this time. This would require the City to identify an alternative funding strategy for the Project, defer all or portions of the Project, reduce the Project scope, or return at a later date with a revised financing plan.
STRATEGIC PLAN:
Supports Priority B - Public Health and Safety
SUBMITTED BY:
Danielle Garcia, Interim Assistant City Manager
RECOMMENDED BY:
Charles M. Duggan Jr., City Manager
REVIEWED BY:
Yvette M. Abich Garcia, City Attorney
Janice McConnell, Assistant City Manager
PREPARED BY:
Danielle Garcia, Interim Assistant City Manager
FISCAL IMPACT
Discussion:
The proposed financing plan supports three major capital facility projects: the Redlands Police Department Safety Hall, construction of a fire station, and certain heating, ventilation, and air conditioning system improvements for the A.K. Smiley Library. Together, these projects are currently estimated to cost approximately $95 million.
The City expects to contribute approximately $20 million in cash toward the Redlands Police Department Safety Hall project, plus approximately $500,000 from Public Facilities Development Impact Fees. The cash contribution includes $10 million in available City resources and $10 million anticipated to be appropriated over Fiscal Years 2027 and 2028 through the proposed biennial budget and transferred to the Safety Hall Construction Fund.
If these appropriations were viewed as a material risk, the City could instead be asked to deposit this equity contribution with the Trustee at closing. The City’s preferred approach is to satisfy the budgeted contribution through current and future City Council appropriation actions, which as provided in the Proposed Biennial Budget, better aligns cash outflows with project needs and preserves cash management flexibility, without material risk to investors.
After accounting for the City’s cash contributions, approximately $74.5 million in project costs is expected to be financed through the Certificates of Participation. This includes approximately $58 million for the Redlands Police Department Safety Hall, $15 million for Fire Station construction, and $1.5 million for the A.K. Smiley Library HVACrelated improvements.
The Resolution authorizes Certificates of Participation in a principal amount not to exceed $85 million. The not-toexceed amount is higher than the estimated project-cost financing need to provide flexibility for final sizing, capitalized interest, costs of issuance, market conditions, and other financing requirements at the time of sale.
Based on current estimates, the amount financed for project costs is expected to be closer to $75 million.
Annual debt service on the Certificates is currently estimated at approximately $5 million per year and is expected to begin in Fiscal Year 2029, following completion of construction of the Redlands Police Department Safety Hall.
Actual annual debt service will be determined at the time of sale based on the final principal amount issued, interest rates, amortization schedule, market conditions, and other financing terms.
Upon execution of the Lease Agreement, the City will be obligated to make lease payments from any legally available funds of the City. Debt service associated with the Certificates has been and will continue to be incorporated into the City’s long-term financial planning and future operating budgets.
Attachments
1_Resolution_No_8796.pdf
2_Ground_Lease_-_City_of_Redlands_COPs_Series_2026A.pdf 3_Lease_Agreement_-_City_of_Redlands_COPs_Series_2026Apdf.pdf 4_Trust_Agreement_-_City_of_Redlands_COPs_Series_2026A.pdf 5_Purchase_Agreement_-_City_of_Redlands_COPs_Series_2026r2.pdf 6_Continuing_Disclosure_Certificate_-_City_of_Redlands_COPs_Series_2026r2.pdf 7_Preliminary_Official_Statement_-_City_of_Redlands_COPs_Series_2026r.pdf 7b_Appendix_A_-_City_of_Redlands_COPs_Series_2026r2.pdf 1 I:\cmo\Resolutions\Resolution No. 8796 COP's.bm.06.02.2026..docx RESOLUTION NO. 8796
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS
AUTHORIZING THE EXECUTION AND DELIVERY OF CERTIFICATES OF
PARTICIPATION EVIDENCING PRINCIPAL IN AN AGGREGATE
AMOUNT OF NOT TO EXCEED $85,000,000, APPROVING A GROUND
LEASE, A LEASE AGREEMENT, A TRUST AGREEMENT, A PURCHASE
AGREEMENT, A CONTINUING DISCLOSURE CERTIFICATE, AND AN
OFFICIAL STATEMENT WITH RESPECT TO SUCH CERTIFICATES AND
AUTHORIZING RELATED ACTIONS
WHEREAS, the City of Redlands (the “City”) desires to finance a portion of the costs of the construction, installation and acquisition of certain capital improvements constituting a city police facility and related improvements and a city fire station and related improvements and the acquisition and installation of certain heating, ventilation and air conditioning systems (collectively, the “Project”); and
WHEREAS, in order to finance the Project, the City will lease certain real property owned by the City, and the improvements thereto, consisting of the future police facility and site (the “Property”), to the Redlands Public Improvement Corporation (the “Corporation”) pursuant to a Ground Lease (such Ground Lease, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Ground Lease”); and
WHEREAS, the City will sublease the Property back from the Corporation pursuant to a Lease Agreement (such Lease Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Lease Agreement”); and
WHEREAS, the City and the Corporation have determined that it would be in the best interests of the City and the Corporation to provide a portion of the funds necessary to finance the Project through the execution and delivery, pursuant to a Trust Agreement, by and among U.S.
Bank Trust Company, National Association, as trustee (the “Trustee”), the Corporation and the City, of the City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities) (the “Certificates”), with such additional or other series or subseries designations as may be approved as herein provided, evidencing direct, fractional undivided interests in the base rental payments to be made by the City under the Lease Agreement (such Trust Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Trust Agreement”); and WHEREAS, in connection with the execution and delivery of the Trust Agreement, the Corporation proposes to assign substantially all of its rights in the Ground Lease and Lease Agreement to the Trustee pursuant to an Assignment Agreement, by and between the Corporation and the Trustee (the “Assignment Agreement”); and
WHEREAS, BofA Securities, Inc. and Stifel, Nicolaus & Company, Incorporated, as counderwriters (the “Underwriters”), have submitted to the City and the Corporation a proposal to 2 I:\cmo\Resolutions\Resolution No. 8796 COP's.bm.06.02.2026..docx purchase the Certificates in the form of a Purchase Agreement (such Purchase Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Purchase Agreement”); and WHEREAS, Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 (“Rule 15c2-12”) requires that, in order to be able to purchase or sell the Certificates, the underwriters thereof must have reasonably determined that the City has undertaken in a written agreement or contract for the benefit of the holders of the Certificates to provide disclosure of certain financial information and certain enumerated events on an ongoing basis; and WHEREAS, in order to cause such requirement to be satisfied, the City desires to execute and deliver a Continuing Disclosure Certificate (such Continuing Disclosure Certificate, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Continuing Disclosure Certificate”); and WHEREAS, a form of the Preliminary Official Statement (the “Preliminary Official Statement”) to be distributed in connection with the public offering of the Certificates has been prepared; and
WHEREAS, the City Council of the City (the “City Council”) has determined that enhancing the timely payment of the principal of and interest evidenced by the Certificates by obtaining a municipal bond insurance policy with respect thereto could be economically advantageous to the City; and
WHEREAS, in order to facilitate obtaining such a municipal bond insurance policy, the City has caused to be incorporated into the Ground Lease, the Lease Agreement, the Assignment Agreement and the Trust Agreement the provisions typically required by the providers of such policies to be included therein in order to obtain the same; and WHEREAS, there have been prepared and submitted to this meeting forms of:
(a) the Ground Lease;
(b) the Lease Agreement;
(c) the Trust Agreement;
(d) the Purchase Agreement;
(e) the Continuing Disclosure Certificate; and
(f) the Preliminary Official Statement; and
WHEREAS, the City has previously adopted a local debt policy (the “Debt Management Policy”) that complies with Section 8855(i) of the California Government Code (the “Government Code”), and the execution and delivery of the Certificates as contemplated by this Resolution follows the Debt Management Policy; and
3 I:\cmo\Resolutions\Resolution No. 8796 COP's.bm.06.02.2026..docx WHEREAS, the City Council has obtained from KNN Public Finance, as the City’s municipal advisor (the “Municipal Advisor”), good faith estimates of (a) the true interest cost of the Certificates, (b) the sum of all fees and charges paid to third parties with respect to the Certificates, (c) the amount of proceeds of the Certificates expected to be received net of the fees and charges paid to third parties and any reserves or capitalized interest paid or funded with proceeds of the Certificates, and (d) the sum total of all payments evidenced by the Certificates calculated to the final maturity of the Certificates plus the fees and charges paid to third parties not paid with the proceeds of the Certificates, and such estimates are disclosed and set forth in Exhibit A attached hereto; and
WHEREAS, the City Council desires to proceed to authorize the execution and delivery of such documents and the performance of such acts as may be necessary or desirable to effect the offering, sale and delivery of the Certificates; and
WHEREAS, all acts, conditions and things required by the laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the actions authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such actions for the purpose, in the manner and upon the terms herein provided;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF REDLANDS AS FOLLOWS;
Section 1. The foregoing recitals are true and correct, and the City Council so finds and determines.
Section 2. The form of the Ground Lease, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, is hereby approved. Each of the Mayor of the City and the City Manager, as delegated signing authority by the City Council (together, the “Authorized Officers”), is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name and on behalf of the City, to execute and deliver the Ground Lease in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Ground Lease by such Authorized Officer; provided, however, that the term of the Ground Lease shall not terminate later than May 1, 2057 (provided that such term may be extended as provided therein).
Section 3. The form of the Lease Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name and on behalf of the City, to execute and deliver the Lease Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Lease Agreement by such Authorized Officer; provided, however, that (a) the aggregate amount of the principal components of the base rental payments payable under the Lease Agreement shall not exceed $85,000,000, (b) the term of the 4 I:\cmo\Resolutions\Resolution No. 8796 COP's.bm.06.02.2026..docx Lease Agreement shall not terminate later than May 1, 2057 (provided that such term may be extended as provided therein), and (c) the true interest cost applicable to the interest components of the base rental payments evidenced by the Certificates shall not exceed 5.00% per annum.
Section 4. The form of the Trust Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name and on behalf of the City, to execute and deliver the Trust Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Trust Agreement by such Authorized Officer.
Section 5. The execution and delivery of the Certificates evidencing principal in an aggregate amount not to exceed $85,000,000, in one or more series or subseries, payable in the years and in the amounts, and evidencing interest as specified in the Trust Agreement as finally executed, and with such additional or other series designations as may be approved by an Authorized Officer, are hereby authorized and approved.
Section 6. The form of the Purchase Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name and on behalf of the City, to execute and deliver the Purchase Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Purchase Agreement by such Authorized Officer; provided, however, that the underwriters’ discount for the sale of the Certificates shall not exceed 0.30% of the aggregate amount of principal evidenced by such Certificates.
Section 7. The form of the Continuing Disclosure Certificate, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, is hereby approved.
Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name and on behalf of the City, to execute and deliver the Continuing Disclosure Certificate in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Continuing Disclosure Certificate by such Authorized Officer.
Section 8. The Preliminary Official Statement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, is hereby approved, and the use of the Preliminary Official Statement in connection with the offering and sale of the Certificates is hereby authorized and approved. Each of the Authorized Officers is hereby authorized to certify on behalf of the City that the Preliminary Official Statement is deemed final as of its date, within the meaning of Rule 15c2-12 (except for the omission of certain final pricing, rating and related information as permitted by Rule 15c2-12).
5 I:\cmo\Resolutions\Resolution No. 8796 COP's.bm.06.02.2026..docx Section 9. The preparation and delivery of a final Official Statement (the “Official Statement”), and its use in connection with the offering and sale of the Certificates, is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement, with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of and on behalf of the City, to execute the final Official Statement and any amendment or supplement thereto.
Section 10. The Authorized Officers are each hereby authorized and directed (a) to apply for municipal bond insurance for the Certificates or one or more maturities and to obtain such insurance if doing so puts the Certificates (or portion thereof) and the marketing thereof on an economically advantageous basis and is deemed to be in the best interests of the City, and (b) with respect to any such policy, the Authorized Officers are each hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name and on behalf of the City, to enter into a commitment letter agreement with the provider of such policy agreeing to the conditions to the issuance of such policy by such provider set forth in such commitment letter agreement, acknowledging the limitations to the obligations of such provider set forth therein and accepting the manner in which any request for a renewal or continuation of such provider’s commitment to issue such policy is to be made.
Section 11. The City Council hereby approves the execution and delivery of all agreements, documents, certificates and instruments referred to herein with electronic signatures as may be permitted under the California Uniform Electronic Transactions Act and digital signatures as may be permitted under Section 16.5 of the California Government Code using DocuSign.
Section 12. With the passage of this Resolution, the City Council hereby certifies that the Debt Management Policy complies with Government Code Section 8855(i), and that the Certificates authorized to be executed and delivered pursuant to this Resolution are consistent with such policy, and instructs Orrick, Herrington & Sutcliffe LLP as Special Counsel, on behalf of the City, with respect to the Certificates executed and delivered pursuant to this Resolution, (a) to cause notices of the proposed sale and final sale of the Certificates to be filed in a timely manner with the California Debt and Investment Advisory Commission pursuant to Government Code Section 8855, and (b) to check, on behalf of the City, the “Yes” box relating to such certifications in the notice of proposed sale filed pursuant to Government Code Section 8855.
Section 13. The Authorized Officers and the officers and employees of the City are, and each of them is, hereby authorized and directed, for and in the name of the City, to do any and all things and to execute and deliver any and all agreements, documents, certificates and instruments that they or any of them deem necessary or advisable in order to consummate the transactions contemplated by this Resolution and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, including obtaining title insurance with respect to the Property and entering into an agreement to indemnify and hold the title insurance company harmless with respect to encumbrances recorded against the Property between the last title continuation as set forth in such agreement and the recording of the documents (or notice thereof) herein approved. 6 I:\cmo\Resolutions\Resolution No. 8796 COP's.bm.06.02.2026..docx Section 14. All actions heretofore taken by the Authorized Officers and the officers, employees and agents of the City with respect to the Certificates, or in connection with or related to any of the agreements, documents, certificates or instruments referred to herein, are hereby approved, confirmed and ratified.
Section 15. This Resolution shall take effect immediately upon its adoption.
ADOPTED, SIGNED AND APPROVED this 16th day of June, 2026.
Mario Saucedo, Mayor
ATTEST:
Jeanne Donaldson, City Clerk
7 I:\cmo\Resolutions\Resolution No. 8796 COP's.bm.06.02.2026..docx
EXHIBIT A
GOOD FAITH ESTIMATES
The good faith estimates set forth herein are provided with respect to the Certificates. Such good faith estimates have been provided to the City of Redlands (the “City”) by KNN Public Finance, as the City’s municipal advisor (the “Municipal Advisor”).
Principal Amount. The Municipal Advisor has informed the City that, based on the City’s financing plan and based on market conditions prevailing at the time of preparation of such estimate, its good faith estimate of the aggregate principal amount of the Certificates to be sold in a public offering is $78,415,000 (the “Estimated Principal Amount”).
True Interest Cost of the Certificates. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Certificates is sold, and based on market conditions prevailing at the time of preparation of such estimate, its good faith estimate of the true interest cost of the Certificates, which means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the Certificates, is 4.50%.
Finance Charge of the Certificates. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Certificates is sold, and based on market conditions prevailing at the time of preparation of such estimate, its good faith estimate of the finance charge for the Certificates, which means the sum of all fees and charges paid to third parties (or costs associated with the Certificates), is $575,622.
Amount of Proceeds to be Received. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Certificates is sold, and based on market conditions prevailing at the time of preparation of such estimate, its good faith estimate of the amount of proceeds expected to be received by the City for the sale of the Certificates, less the finance charge of the Certificates, as estimated above, and any reserves or capitalized interest paid or funded with proceeds of the Certificates, is $74,400,000.
Total Payment Amount. The Municipal Advisor has informed the City that, assuming that the Estimated Principal Amount of the Certificates is sold, and based on market conditions prevailing at the time of preparation of such estimate, its good faith estimate of the total payment amount, which means the sum total of all payments the City will make to pay debt service on the Certificates, plus the estimated finance charge for the Certificates, as described above, not paid with the proceeds of the Certificates, calculated to the final maturity of the Certificates, is $143,870,375.
The foregoing estimates constitute good faith estimates only and are based on market conditions prevailing at the time of preparation of such estimates. The actual principal amount of the Certificates issued and sold, the true interest cost thereof, the finance charges thereof, the amount of proceeds received therefrom and total payment amount with respect thereto may differ from such good faith estimates for a variety of reasons, including, without limitation, due to (a) the market conditions prevailing on the actual date of the sale of the Certificates being different than the market conditions prevailing at the time of preparation of the estimates contained herein, (b) the 8 I:\cmo\Resolutions\Resolution No. 8796 COP's.bm.06.02.2026..docx actual principal amount of Certificates sold being different from the Estimated Principal Amount, (c) the actual amortization of the Certificates being different than the amortization assumed for purposes of preparing the estimates contained herein, (d) the actual interest rates at which the Certificates are sold being different than those estimated for purposes of preparing the estimates contained herein, (e) other market conditions, or (f) alterations in the City’s financing plan, or a combination of such factors. The actual date of sale of the Certificates and the actual principal amount of Certificates sold will be determined by the City based on various factors. The actual interest rates borne by the Certificates will depend on market conditions at the time of sale thereof.
The actual amortization of the Certificates will also depend, in part, on market conditions at the time of sale thereof. Market conditions, including, without limitation, interest rates are affected by economic and other factors beyond the control of the City, the Municipal Advisor and the Underwriters. The City Council has approved the execution and delivery of the Certificates with a maximum true interest cost of 5.00%.
9 I:\cmo\Resolutions\Resolution No. 8796 COP's.bm.06.02.2026..docx 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 16th day of June, 2026, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Jeanne Donaldson, City Clerk
4148-8913-8020.3
TO BE RECORDED AND WHEN
RECORDED RETURN TO:
Orrick, Herrington & Sutcliffe LLP
2050 Main Street, Suite 1100
Irvine, California 92614-8255
Attention: Donald S. Field, Esq.
THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11929 OF THE CALIFORNIA REVENUE AND TAXATION CODE.
THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE.
GROUND LEASE
by and between
CITY OF REDLANDS
and
REDLANDS PUBLIC IMPROVEMENT CORPORATION
Dated as of [_________] 1, 2026
TABLE OF CONTENTS
Page
i 4148-8913-8020.3
ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION ...........................................................2 Section 1.01. Definitions.................................................................................................................2 Section 1.02. Rules of Construction ...............................................................................................2 ARTICLE II LEASE OF THE PROPERTY; RENTAL ......................................................................3 Section 2.01. Lease of Property ......................................................................................................3 Section 2.02. Rental........................................................................................................................3 ARTICLE III QUIET ENJOYMENT....................................................................................................3 ARTICLE IV SPECIAL COVENANTS AND PROVISIONS .............................................................3 Section 4.01. Waste.........................................................................................................................3 Section 4.02. Further Assurances and Corrective Instruments.......................................................4 Section 4.03. Waiver of Personal Liability.....................................................................................4 Section 4.04. Taxes.........................................................................................................................4 Section 4.05. Right of Entry ...........................................................................................................4 Section 4.06. Representations of the City.......................................................................................4 Section 4.07. Representations of the Corporation...........................................................................5 ARTICLE V ASSIGNMENT, SELLING AND SUBLEASING; TITLE TO PROPERTY ................5 Section 5.01. Assignment to Trustee; Third-Party Beneficiaries....................................................5 Section 5.02. Assignment, Selling and Subleasing.........................................................................5 Section 5.03. Restrictions on City...................................................................................................5 Section 5.04. Title to Property ........................................................................................................5 ARTICLE VI IMPROVEMENTS .........................................................................................................5 ARTICLE VII TERM; TERMINATION................................................................................................6 Section 7.01. Term..........................................................................................................................6 Section 7.02. Extension; Early Termination ...................................................................................6 Section 7.03. Action on Default......................................................................................................6 ARTICLE VIII MISCELLANEOUS........................................................................................................6 Section 8.01. Notices......................................................................................................................6 Section 8.02. Binding Effect...........................................................................................................7 Section 8.03. Partial Invalidity........................................................................................................7 Section 8.04. Amendments; Substitution and Release....................................................................7 Section 8.05. Governing Law .........................................................................................................8 Section 8.06. Execution in Counterparts.........................................................................................8 EXHIBIT A DESCRIPTION OF THE PROPERTY..................................................................................1 4148-8913-8020.3
GROUND LEASE
THIS GROUND LEASE (this “Ground Lease”), dated as of [_________] 1, 2026, is by and between the CITY OF REDLANDS, a municipal corporation and general law city organized and existing under the laws of the State of California (the “City”), as lessor, and the REDLANDS PUBLIC IMPROVEMENT CORPORATION, a nonprofit public benefit corporation organized and existing under the laws of the State of California (the “Corporation”), as lessee.
W I T N E S S E T H:
WHEREAS, the City desires to finance a portion of the costs of the construction, installation and acquisition of certain capital improvements constituting a city police facility and related improvements and a city fire station and related improvements and the acquisition and installation of certain heating, ventilation and air conditioning systems (collectively, the “Project”); and WHEREAS, in order to finance the Project, the City will lease certain real property owned by the City and the improvements thereto (the “Property”) to the Corporation pursuant to this Ground Lease, and the City will sublease the Property back from the Corporation pursuant to a Lease Agreement, dated as of the date hereof (the “Lease Agreement”); and WHEREAS, the Property is more particularly described in Exhibit A hereto; and WHEREAS, the City and the Corporation have determined that it would be in the best interests of the City and the Corporation to provide a portion of the funds necessary to finance the Project through the sale and delivery, pursuant to the Trust Agreement, dated as of the date hereof (the “Trust Agreement”), by and among U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), the Corporation and the City, of the City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities) (the “Certificates”) evidencing direct, fractional undivided interests in the base rental payments (the “Base Rental Payments”) to be made by the City under the Lease Agreement; and
WHEREAS, in order to provide for the execution and delivery of the Certificates, the Corporation desires to sell, assign and transfer to the Trustee, irrevocably and absolutely, without recourse, for the benefit of the owners of the Certificates, substantially all of its right, title and interest in and to this Ground Lease and the Lease Agreement, including its right to receive the Base Rental Payments, pursuant to an Assignment Agreement, dated as of the date hereof (the “Assignment Agreement”), by and between the Corporation and the Trustee; and WHEREAS, in consideration of such assignment and the execution of the Trust Agreement, the Trustee has agreed to execute and deliver the Certificates; and WHEREAS, this Ground Lease and a memorandum of the Lease Agreement are being recorded with the San Bernardino County Recorder concurrently with the recordation of the Assignment Agreement; and
WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Ground Lease do exist, have happened and have been performed in regular and due time, form and 4148-8913-8020.3 2
manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Ground Lease;
NOW, THEREFORE, in consideration of the premises and of the mutual agreements and covenants contained herein and for other valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:
ARTICLE I
DEFINITIONS; RULES OF CONSTRUCTION
Section 1.01. Definitions. Except as otherwise defined herein, or unless the context clearly otherwise requires, words and phrases defined in Article I of the Lease Agreement shall have the same meanings in this Ground Lease.
Section 1.02. Rules of Construction. (a) The terms defined herein expressed in the singular shall, unless the context otherwise indicates, include the plural and vice versa. (b) The use herein of the masculine, feminine or neuter gender is for convenience only and shall be deemed and construed to include correlative words of the masculine, feminine or neuter gender, as appropriate.
(c) References herein to a document shall include all amendments, supplements or other modifications to such document, and any replacements, substitutions or novation of, that document.
(d) Any term defined herein by reference to another document shall continue to have the meaning ascribed thereto whether or not such other document remains in effect. (e) The use herein of the words “including” and “includes,” and words of similar import, shall be deemed to be followed by the phrase “without limitation.” (f) Headings of Articles and Sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof.
(g) All references herein to designated “Articles,” “Sections,” “Exhibits,” “subsections,” “paragraphs,” “clauses,” and other subdivisions are to the designated Articles, Sections, Exhibits, subsections, paragraphs, clauses, and other subdivisions of this Ground Lease. (h) The words “hereof” (except when preceded by a specific Section or Article reference), “herein,” “hereby,” “hereunder,” “hereinabove,” “hereinafter,” and other equivalent words and phrases used herein refer to this Ground Lease and not solely to the particular portion hereof in which any such word is used.
(i) Any reference to a Person, or a Person in a specified capacity, shall be construed to include such Person’s successors or such Person’s successors in such capacity, as the case may be. 4148-8913-8020.3 3
ARTICLE II
LEASE OF THE PROPERTY; RENTAL
Section 2.01. Lease of Property. The City hereby leases to the Corporation, and the Corporation hereby leases from the City, for the benefit of the Owners of the Certificates, the Property, subject only to Permitted Encumbrances, to have and to hold for the term of this Ground Lease.
Section 2.02. Rental. The Corporation shall pay, or cause to be paid, to the City as and for rental of the Property hereunder, the sum of not to exceed $[________] (the “Ground Lease Payment”). The Ground Lease Payment shall be paid from the proceeds of the Certificates; provided, however, that in the event the available proceeds of the Certificates are not sufficient to enable the Corporation to pay such amount in full, the remaining amount of the Ground Lease Payment shall be reduced to an amount equal to the amount of the remaining available proceeds.
The City shall deposit the Ground Lease Payment in one or more separate funds or accounts to be held and administered for the purpose of financing the Project.
The Corporation and the City hereby find and determine that the amount of the Ground Lease Payment does not exceed the fair market value of the leasehold interest in the Property that is conveyed hereunder by the City to the Corporation. No other amounts of rental shall be due and payable by the Corporation for the use and occupancy of the Property under this Ground Lease.
ARTICLE III
QUIET ENJOYMENT
The parties intend that the Property will be leased back to the City pursuant to the Lease Agreement for the term thereof. It is further intended that, to the extent provided herein and in the Lease Agreement, if a Lease Default Event occurs, the Corporation, or its assignee, will have the right, for the then remaining term of this Ground Lease to (a) take possession of the Property, (b) if it deems it appropriate, cause an appraisal of the Property and a study of the then reasonable use thereof to be undertaken, and (c) relet the Property. Subject to any rights the City may have under the Lease Agreement (in the absence of a Lease Default Event) to possession and enjoyment of the Property, the City hereby covenants and agrees that it will not take any action to prevent the Corporation from having quiet and peaceable possession and enjoyment of the Property during the term hereof and will, at the request of the Corporation and at the City’s cost, to the extent that it may lawfully do so, join in any legal action in which the Corporation asserts its right to such possession and enjoyment.
ARTICLE IV
SPECIAL COVENANTS AND PROVISIONS
Section 4.01. Waste. At all times that the Corporation is in possession of the Property, the Corporation shall not commit, suffer or permit any waste on the Property and shall not willfully or knowingly use or permit the use of the Property for any illegal purpose or act. 4148-8913-8020.3 4
Section 4.02. Further Assurances and Corrective Instruments. The City and the Corporation shall, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property hereby leased or intended so to be or for carrying out the expressed intention of this Ground Lease, the Lease Agreement and the Trust Agreement.
Section 4.03. Waiver of Personal Liability. (a) All liabilities under this Ground Lease on the part of the Corporation shall be solely liabilities of the Corporation as a nonprofit public benefit corporation, and the City hereby releases each and every director, officer and employee of the Corporation of and from any personal or individual liability under this Ground Lease. No director, officer or employee of the Corporation shall, at any time or under any circumstances, be individually or personally liable under this Ground Lease to the City or to any other party whomsoever for anything done or omitted to be done by the Corporation hereunder. (b) All liabilities under this Ground Lease on the part of the City shall be solely liabilities of the City as a city and municipal corporation, and the Corporation hereby releases each and every director, officer and employee of the City of and from any personal or individual liability under this Ground Lease. No director, officer or employee of the City shall at any time or under any circumstances be individually or personally liable under this Ground Lease to the Corporation or to any other party whomsoever for anything done or omitted to be done by the City hereunder.
Section 4.04. Taxes. The City shall pay any and all assessments of any kind or character and also all taxes, including possessory interest taxes, levied or assessed upon the Property.
Section 4.05. Right of Entry. The City reserves the right for any of its duly authorized representatives to enter upon the Property at any reasonable time to inspect the same.
Section 4.06. Representations of the City. The City represents to the Corporation, the Insurer and the Trustee as follows:
(a) the City has the full power and authority to enter into, to execute and to deliver this Ground Lease, and to perform all of its duties and obligations hereunder, and has duly authorized the execution of this Ground Lease; (b) except for Permitted Encumbrances, the Property is not subject to any dedication, easement, right of way, reservation in patent, covenant, condition, restriction, lien or encumbrance that would prohibit or materially interfere with the use of the Property for purposes as contemplated by the City;
(c) all taxes, assessments or impositions of any kind with respect to the Property, except current taxes, have been paid in full; (d) the City has good and marketable fee simple to the Property; and (e) the Property is necessary to the City in order for the City to perform its governmental functions.
4148-8913-8020.3 5
Section 4.07. Representations of the Corporation. The Corporation represents to the City, the Insurer and the Trustee that the Corporation has the full power and authority to enter into, to execute and to deliver this Ground Lease, and to perform all of its duties and obligations hereunder, and has duly authorized the execution and delivery of this Ground Lease.
ARTICLE V
ASSIGNMENT, SELLING AND SUBLEASING; TITLE TO PROPERTY
Section 5.01. Assignment to Trustee; Third-Party Beneficiaries. (a) The City acknowledges and agrees that, upon the execution and delivery of the Assignment Agreement, which is occurring simultaneously with the execution and delivery hereof, substantially all of the right, title and interest of the Corporation in and to this Ground Lease will be sold, assigned and transferred to the Trustee for the benefit of the Owners of the Certificates. The City consents to such sale, assignment and transfer. Upon the execution and delivery of the Assignment Agreement, references in the operative provisions hereof to the Corporation shall be deemed to be references to the Trustee, as assignee of the Corporation.
(b) The City consents to the Trust Agreement and acknowledges and agrees to the rights of the Trustee and the Insurer as set forth therein. (c) As a material inducement to the Trustee and the Insurer, the Corporation and the City agree that the Trustee and the Insurer shall be third-party beneficiaries of this Ground Lease.
Section 5.02. Assignment, Selling and Subleasing. This Ground Lease may be assigned or sold, and the Property may be subleased, as a whole or in part, by the Corporation, with the prior written consent of the Insurer, or at the direction of the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy), without the necessity of obtaining the consent of the City, if a Lease Default Event occurs. The Corporation shall, within 30 days after such an assignment, sale or sublease, furnish or cause to be furnished to the City a true and correct copy of such assignment, sublease or sale, as the case may be.
Section 5.03. Restrictions on City. Except with respect to Permitted Encumbrances and except as provided in Section 8.04 hereof, the City shall not mortgage, sell, encumber, assign, transfer or convey the Property or any portion thereof during the term of this Ground Lease.
Section 5.04. Title to Property. The City shall hold and maintain good and marketable title to all of the Property during the term of this Ground Lease. If necessary, to maintain good and marketable title to Property, the City shall take all actions necessary, including eminent domain or condemnation proceedings or such other actions as the City deems appropriate, to ensure that title to the Property is good and marketable.
ARTICLE VI
IMPROVEMENTS
Title to all improvements made on the Property during the term hereof shall vest in the City, but shall be subject to the terms of this Ground Lease. 4148-8913-8020.3 6
ARTICLE VII
TERM; TERMINATION
Section 7.01. Term. The term of this Ground Lease shall commence as of the date of commencement of the term of the Lease Agreement and shall remain in full force and effect from such date to and including the Scheduled Termination Date, May 1, 20[__], unless such term is extended or sooner terminated as hereinafter provided.
Section 7.02. Extension; Early Termination. If, on the Scheduled Termination Date, the Certificates shall not be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, or the Trust Agreement shall not be discharged by its terms, or if the Rental Payments payable under the Lease Agreement shall have been abated at any time, then the term of this Ground Lease shall be automatically extended until the date upon which all Certificates shall be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, and the Trust Agreement shall be discharged by its terms, except that the term of this Ground Lease shall in no event be extended more than ten years beyond the Scheduled Termination Date. If, prior to the Scheduled Termination Date, all Certificates shall be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, and the Trust Agreement shall be discharged by its terms, the term of this Ground Lease shall end simultaneously therewith.
Section 7.03. Action on Default. In each and every case upon the occurrence and during the continuance of a default by the Corporation hereunder, the City shall have all the rights and remedies permitted by law, except the City, to the extent permitted by law, waives any and all rights to terminate this Ground Lease.
ARTICLE VIII
MISCELLANEOUS
Section 8.01. Notices. All written notices, statements, demands, consents, approvals, authorizations, offers, designations, requests or other communications hereunder shall be given to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely:
If to the City: City of Redlands
P.O. Box 3005
Redlands, California 92373
Attention: Director of Management Services/Finance
Department
If to the Corporation: Redlands Public Improvement Corporation 300 East State Street, Suite 690
Redlands, California 92373
Attention: Chief Financial Officer
4148-8913-8020.3 7
If to the Trustee: U.S. Bank Trust Company, National Association 633 West Fifth Street, 24th Floor
Los Angeles, California 90071
Attention: Global Corporate Trust
If to the Insurer: [INSURER]
[___________]
[___________], [______] [______]
Attention: [___________]
Re: Insurance Policy No. [___________]
Telephone: [___________]
Email: [___________]
In each case in which the notice or other communication refers to an Event of Default or claim on the Insurance Policy, such notice or other communication shall be marked “URGENT MATERIAL ENCLOSED” and a copy shall also be sent to the attention of the General Counsel at the above address and at [___________].
Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the party to whom it is addressed (a) if given by courier or delivery service or if personally served or delivered, upon delivery, (b) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail, (c) if given by electronic mail, on the date sent, but only if confirmation of the receipt of such electronic mail is received or if notice is concurrently sent by another means specified herein, and (d) if given by any other means, upon delivery at the address specified in this Section.
Section 8.02. Binding Effect. This Ground Lease shall inure to the benefit of and shall be binding upon the City, the Corporation and their respective successors and assigns.
Section 8.03. Partial Invalidity. If any agreement, condition, covenant or term required herein to be observed or performed by or on the part of the City or the Corporation is, to any extent, held to be invalid or unenforceable in any jurisdiction, but the extent of such invalidity or unenforceability does not destroy the basis of the bargain between the parties as contained herein, the remainder of the agreements, conditions, covenants or terms required herein to be observed or performed by or on the part of the City or the Corporation, or the application of such agreements, conditions, covenants or terms to Persons or circumstances other than those as to which such agreement, condition, covenant or term is held invalid or unenforceable, shall not be affected by such invalidity or unenforceability, and each remaining agreement, condition, covenant and term required herein to be observed or performed by or on the part of the City and the Corporation shall be valid and shall be enforced to the fullest extent permitted by law.
Section 8.04. Amendments; Substitution and Release. This Ground Lease may be amended, changed, modified, altered or terminated (subject to the prior written consent of the Insurer) only in accordance with the provisions of the Lease Agreement. The City shall have the right to substitute alternate real property for the Property or to release portions of the Property as provided in the Lease Agreement.
4148-8913-8020.3 8
Section 8.05. Governing Law. This Ground Lease shall be governed by, and construed and enforced in accordance with, the laws of the State of California.
Section 8.06. Execution in Counterparts. This Ground Lease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.
[Remainder of page left intentionally blank.]
4148-8913-8020.3
IN WITNESS WHEREOF, the parties hereto have caused this Ground Lease to be executed by their respective officers thereunto duly authorized, all as of the day and year first written above.
CITY OF REDLANDS
By:
[________],
[________]
REDLANDS PUBLIC IMPROVEMENT
CORPORATION
By:
[________],
[________]
[Signature Page to Ground Lease]
4148-8913-8020.3 1
EXHIBIT A
DESCRIPTION OF THE PROPERTY
City Police Facility
All that real property situated in San Bernardino County, State of California, described as follows, together with any improvements thereto:
STATE OF CALIFORNIA )
) ss
COUNTY OF SAN BERNARDINO )
On _________________, before me, ______________________________, Notary Public, personally appeared _________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
__________________________________
[Seal]
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA )
) ss
COUNTY OF SAN BERNARDINO )
On _________________, before me, ______________________________, Notary Public, personally appeared _________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
__________________________________
[Seal]
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
4148-8913-8020.3
CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the Ground Lease, dated as of [_________] 1, 2026, by and between the City of Redlands, a municipal corporation and general law city organized and existing under the laws of the State of California (the “City”), and the Redlands Public Improvement Corporation, a nonprofit public benefit corporation organized and existing under the laws of the State of California (the “Corporation”), from the City to the Corporation, is hereby accepted by the undersigned on behalf of the Corporation pursuant to authority conferred by resolution of the Board of Directors of the Corporation adopted on [_______, 2026, and the Corporation consents to recordation thereof by its duly authorized officer.
Dated: [_________], 2026
REDLANDS PUBLIC IMPROVEMENT
CORPORATION
By:
[_______], [_______]
4126-7526-6404.4
LEASE AGREEMENT
by and between
CITY OF REDLANDS
and
REDLANDS PUBLIC IMPROVEMENT CORPORATION
Dated as of [_________] 1, 2026
TABLE OF CONTENTS
Page
i
4126-7526-6404.4
ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION...................................................... 3 Section 1.01. Definitions.................................................................................................... 3 Section 1.02. Rules of Construction .................................................................................. 3 ARTICLE II LEASE OF PROPERTY; TERM............................................................................. 4 Section 2.01. Lease of Property ......................................................................................... 4 Section 2.02. Term; Occupancy......................................................................................... 4 ARTICLE III RENTAL PAYMENTS .......................................................................................... 6 Section 3.01. Base Rental Payments.................................................................................. 6 Section 3.02. Additional Rental Payments ........................................................................ 6 Section 3.03. Fair Rental Value ......................................................................................... 7 Section 3.04. Payment Provisions...................................................................................... 7 Section 3.05. Appropriations Covenant............................................................................. 7 Section 3.06. Rental Abatement......................................................................................... 8 Section 3.07. Prepayment .................................................................................................. 8 ARTICLE IV REPRESENTATIONS ......................................................................................... 10 Section 4.01. Representations of the City........................................................................ 10 Section 4.02. Representations of the Corporation ........................................................... 10 ARTICLE V COVENANTS........................................................................................................ 12 Section 5.01. Recordation................................................................................................ 12 Section 5.02. Quiet Enjoyment ........................................................................................ 12 Section 5.03. Net-Net-Net Lease ..................................................................................... 12 Section 5.04. Right of Entry ............................................................................................ 12 Section 5.05. Use of the Property .................................................................................... 12 Section 5.06. Maintenance and Utilities.......................................................................... 12 Section 5.07. Additions to Property................................................................................. 13 Section 5.08. Installation of City’s Equipment................................................................ 13 Section 5.09. Taxes.......................................................................................................... 13 Section 5.10. Mechanics’ Liens....................................................................................... 13 Section 5.11. Other Liens................................................................................................. 14 Section 5.12. Environmental Compliance ....................................................................... 14
TABLE OF CONTENTS
Page
ii
4126-7526-6404.4
Section 5.13. Condemnation............................................................................................ 15 Section 5.14. Other Obligations....................................................................................... 16 Section 5.15. Corporation Not Liable; Indemnification .................................................. 16 Section 5.16. Further Assurances..................................................................................... 17 ARTICLE VI INSURANCE; NET PROCEEDS; EMINENT DOMAIN................................... 18 Section 6.01. Property Casualty Insurance; Rental Interruption Insurance ..................... 18 Section 6.02. Title Insurance ........................................................................................... 18 Section 6.03. Additional Insurance Provision; Form of Policies..................................... 19 Section 6.04. Self-Insurance ............................................................................................ 19 Section 6.05. Eminent Domain ........................................................................................ 20 ARTICLE VII LEASE DEFAULT EVENTS AND REMEDIES .............................................. 21 Section 7.01. Lease Default Events and Remedies.......................................................... 21 Section 7.02. Waiver........................................................................................................ 24 ARTICLE VIII AMENDMENTS; ASSIGNMENT AND SUBLEASING;
SUBSTITUTION OR RELEASE ..................................................................... 25 Section 8.01. Amendments.............................................................................................. 25 Section 8.02. Assignment and Subleasing ....................................................................... 26 Section 8.03. Substitution or Release of the Property ..................................................... 26 ARTICLE IX MISCELLANEOUS ............................................................................................. 28 Section 9.01. Notices ....................................................................................................... 28 Section 9.02. Assignment to Trustee; Effect ................................................................... 29 Section 9.03. Rights of Insurer ........................................................................................ 29 Section 9.04. Third-Party Beneficiary ............................................................................. 29 Section 9.05. Partial Invalidity......................................................................................... 29 Section 9.06. Governing Law .......................................................................................... 30 Section 9.07. Electronic Signatures................................................................................. 30 Section 9.08. Execution in Counterparts.......................................................................... 30 EXHIBIT A MASTER DEFINITIONS....................................................................................... 1 EXHIBIT B DESCRIPTION OF THE PROPERTY................................................................... 1 EXHIBIT C BASE RENTAL PAYMENT SCHEDULE............................................................ 1 4126-7526-6404.4
LEASE AGREEMENT
THIS LEASE AGREEMENT (this “Lease Agreement”), dated as of [_________] 1, 2026, is by and between the CITY OF REDLANDS, a municipal corporation and general law city organized and existing under the laws of the State of California (the “City”), as lessee, and the REDLANDS PUBLIC IMPROVEMENT CORPORATION, a nonprofit public benefit corporation organized and existing under the laws of the State of California (the “Corporation”), as lessor.
W I T N E S S E T H:
WHEREAS, the City desires to finance a portion of the costs of the construction, installation and acquisition of certain capital improvements constituting a city police facility and related improvements and a city fire station and related improvements and the acquisition and installation of certain heating, ventilation and air conditioning systems (collectively, the “Project”); and
WHEREAS, in order to finance the Project, the City will lease certain real property owned by the City and the improvements thereto (the “Property”) to the Corporation pursuant to a Ground Lease, dated as of the date hereof (the “Ground Lease”), and the City will sublease the Property back from the Corporation pursuant to this Lease Agreement; and WHEREAS, the Property is more particularly described in Exhibit B hereto; and WHEREAS, the City and the Corporation have determined that it would be in the best interests of the City and the Corporation to provide a portion of the funds necessary to finance the Project through the sale and delivery, pursuant to the Trust Agreement, dated as of the date hereof (the “Trust Agreement”), by and among U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), the Corporation and the City, of the City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities) (the “Certificates”) evidencing direct, fractional undivided interests in the base rental payments (the “Base Rental Payments”) to be made by the City under this Lease Agreement; and
WHEREAS, in order to provide for the execution and delivery of the Certificates, the Corporation desires to sell, assign and transfer to the Trustee, irrevocably and absolutely, without recourse, for the benefit of the owners of the Certificates, substantially all of its right, title and interest in and to the Ground Lease and this Lease Agreement, including its right to receive the Base Rental Payments, pursuant to an Assignment Agreement, dated as of the date hereof (the “Assignment Agreement”), by and between the Corporation and the Trustee; and WHEREAS, in consideration of such assignment and the execution of the Trust Agreement, the Trustee has agreed to execute and deliver the Certificates; and WHEREAS, the Ground Lease and a memorandum of this Lease Agreement are being recorded with the San Bernardino County Recorder concurrently with the recordation of the Assignment Agreement; and
2 4126-7526-6404.4
WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Lease Agreement do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Lease Agreement;
NOW, THEREFORE, in consideration of the premises and of the mutual agreements and covenants contained herein and for other valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:
3 4126-7526-6404.4
ARTICLE I
DEFINITIONS; RULES OF CONSTRUCTION
Section 1.01. Definitions. Certain terms are defined in Exhibit A attached hereto and by this reference incorporated herein. Unless the context otherwise requires, the terms defined in Exhibit A hereto shall, for all purposes of this Lease Agreement, have the meanings herein specified.
Section 1.02. Rules of Construction. (a) The terms defined herein expressed in the singular shall, unless the context otherwise indicates, include the plural and vice versa. (b) The use herein of the masculine, feminine or neuter gender is for convenience only and shall be deemed and construed to include correlative words of the masculine, feminine or neuter gender, as appropriate.
(c) References herein to a document shall include all amendments, supplements or other modifications to such document, and any replacements, substitutions or novation of, that document.
(d) Any term defined herein by reference to another document shall continue to have the meaning ascribed thereto whether or not such other document remains in effect. (e) The use herein of the words “including” and “includes,” and words of similar import, shall be deemed to be followed by the phrase “without limitation.” (f) Headings of Articles and Sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof.
(g) All references herein to designated “Articles,” “Sections,” “Exhibits,” “subsections,” “paragraphs,” “clauses,” and other subdivisions are to the designated Articles, Sections, Exhibits, subsections, paragraphs, clauses, and other subdivisions of this Lease Agreement.
(h) The words “hereof” (except when preceded by a specific Section or Article reference), “herein,” “hereby,” “hereunder,” “hereinabove,” “hereinafter,” and other equivalent words and phrases used herein refer to this Lease Agreement and not solely to the particular portion hereof in which any such word is used.
(i) Any reference to a Person, or a Person in a specified capacity, shall be construed to include such Person’s successors or such Person’s successors in such capacity, as the case may be. 4 4126-7526-6404.4
ARTICLE II
LEASE OF PROPERTY; TERM
Section 2.01. Lease of Property. (a) The Corporation hereby leases to the City and the City hereby leases from the Corporation the Property, on the terms and conditions herein set forth, and subject to all Permitted Encumbrances.
(b) The leasing of the Property by the City to the Corporation pursuant to the Ground Lease shall not effect or result in a merger of the City’s leasehold estate in the Property as lessee under this Lease Agreement and its fee estate in the Property as lessor under the Ground Lease, and the Corporation shall continue to have a leasehold estate in the Property pursuant to the Ground Lease throughout the term thereof and hereof. This Lease Agreement shall constitute a sublease with respect to the Property. The leasehold interest in the Property granted by the City to the Corporation pursuant to the Ground Lease is and shall be independent of this Lease Agreement; this Lease Agreement shall not be an assignment or surrender of the leasehold interest in the Property granted to the Corporation under the Ground Lease.
Section 2.02. Term; Occupancy. (a) The City shall take possession of the Property on the Delivery Date.
(b) The term of this Lease Agreement shall commence on the Delivery Date and shall end on the Scheduled Termination Date, unless such term is extended or sooner terminated as hereinafter provided.
(c) If prior to the Scheduled Termination Date, or prior to the date to which the term of this Lease Agreement has been extended pursuant to this Section, all Certificates shall be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, the Trust Agreement shall be discharged by its terms and all Rental Payments shall have been paid in full, the term of this Lease Agreement shall end simultaneously therewith. (d) If all of the Property shall be taken under the power of eminent domain, and the City does not elect to cause alternate real property to be substituted for the Property pursuant to, and in accordance with the provisions of, Section 8.03 hereof, as provided in clause (i) of Section
6.05(d) hereof, but, rather, elects to deliver or cause to be delivered the Net Proceeds of any award made in the eminent domain proceedings for such taking to the Trustee for the application to the prepayment, pursuant to Section 4.01(a) of the Trust Agreement, of all or a portion of the Outstanding Certificates, as provided in clause (ii) of Section 6.05(d) hereof, then, on the date that possession thereof shall be so taken, the term of this Lease Agreement shall terminate. (e) If on the Scheduled Termination Date the Certificates shall not be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, or the Trust Agreement shall not be discharged by its terms, or if the Rental Payments shall remain due and payable or shall have been abated at any time and for any reason, then the term of this Lease Agreement shall be automatically extended until the date upon which all Certificates shall be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, and the Trust Agreement shall be discharged by its terms and all Rental Payments shall have been paid in 5 4126-7526-6404.4
full, except that the term of this Lease Agreement shall in no event be extended more than ten years beyond the Scheduled Termination Date.
(f) Upon the termination or expiration of the term of this Lease Agreement, other than as provided in Section 7.01 hereof, and the first date upon which the Certificates are no longer Outstanding, all right, title and interest in and to the Property shall vest in the City. Upon any such termination or expiration, the Corporation shall execute such conveyances, deeds and other documents as may be necessary to effect such vesting of record. 6 4126-7526-6404.4
ARTICLE III
RENTAL PAYMENTS
Section 3.01. Base Rental Payments. (a) Subject to the provisions of Sections 3.06 and
6.05 hereof and the provisions hereof relating to a revision of the Base Rental Payment Schedule pursuant to subsection (b) of this Section, the City shall pay to the Corporation, as Base Rental Payments, the amounts, at the times, specified in the Base Rental Payment Schedule, a portion of which Base Rental Payments shall constitute principal components and a portion of which shall constitute interest components. The interest components of the Base Rental Payments shall be paid by the City as and constitute interest paid on the principal components of the Base Rental Payments. Except to the extent specified in Section 3.06 hereof, Rental Payments, including Base Rental Payments, shall be paid by the City to the Corporation for and in consideration of the right to use and occupy the Property and in consideration of the continued right to the quiet use and enjoyment thereof during each Rental Period for which such Rental Payments are to be paid.
The obligation of the City to make the Base Rental Payments does not constitute a debt of the City or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limit or restriction, and does not constitute an obligation for which the City or the State of California is obligated to levy or pledge any form of taxation or for which the City or the State of California has levied or pledged any form of taxation. (b) If the term of this Lease Agreement shall have been extended pursuant to Section
2.02 hereof, the obligation of the City to pay Rental Payments shall continue to and including the date of termination of the term of this Lease Agreement as so extended. Upon such extension, the principal and interest components of the Base Rental Payments shall be established so that the principal components will in the aggregate be sufficient to pay all extended and unpaid principal components and the interest components will in the aggregate be sufficient to pay all extended and unpaid interest components; provided, however, that the Rental Payments payable in any Rental Period shall not exceed the annual fair rental value of the Property.
Section 3.02. Additional Rental Payments. The City shall also pay, as Additional Rental Payments, such amounts as shall be required for the payment of the following:
(a) all taxes and assessments of any type or nature charged to the Corporation or the City or affecting the Property or the respective interests or estates of the Corporation or the City therein;
(b) all reasonable administrative costs of the Corporation relating to the Property including salaries, wages, fees and expenses, compensation and indemnification of the Trustee payable by the Corporation under the Trust Agreement, fees of auditors, accountants, attorneys or engineers, and all other necessary and reasonable administrative costs of the Corporation or charges required to be paid by it in order to maintain its existence or to comply with the terms of the Trust Agreement or this Lease Agreement or to defend the Corporation and its members, directors, officers, agents and employees; (c) insurance premiums for all insurance required pursuant to Article VI hereof; 7 4126-7526-6404.4
(d) any amounts with respect to this Lease Agreement, the Trust Agreement or the Certificates required to be rebated to the federal government in accordance with Section 148(f) of the Code; and
(e) all other payments not constituting Base Rental Payments required to be paid by the City under the provisions of this Lease Agreement or the Trust Agreement, including any other amounts payable to the Insurer.
Amounts constituting Additional Rental Payments payable hereunder shall be paid by the City directly to the person or persons to whom such amounts shall be payable. The City shall pay all such amounts when due or at such later time as such amounts may be paid without penalty or, in any other case, within 60 days after notice in writing from the Trustee to the City stating the amount of Additional Rental Payments then due and payable and the purpose thereof.
Section 3.03. Fair Rental Value. The parties hereto have agreed and determined that the Rental Payments are not in excess of the Fair Rental Value of the Property as of the Delivery Date.
In making such determination of Fair Rental Value, consideration has been given to the uses and purposes that may be served by the Property and the benefits therefrom that will accrue to the City and the general public. Payments of the Rental Payments for the Property during each Rental Period shall constitute the total rental for said Rental Period.
Section 3.04. Payment Provisions. Each installment of Base Rental Payments payable hereunder shall be paid in lawful money of the United States of America to or upon the order of the Trustee, as assignee of the Corporation, at the Principal Office of the Trustee, or such other place or entity as the Trustee shall designate. Each Base Rental Payment shall be deposited with the Trustee, as assignee of the Corporation, no later than the Base Rental Deposit Date preceding the Interest Payment Date on which such Base Rental Payment is due. Any Base Rental Payment that shall not be paid by the City when due and payable under the terms of this Lease Agreement shall bear interest from the date when the same is due hereunder until the same shall be paid (a) at the Insurer Rate to the extent that such Base Rental Payment has been paid to the Owners, on behalf of the City, by the Insurer pursuant to the Insurance Policy, or (b) in all other cases, at the rate equal to the highest rate of interest evidenced by any of the Outstanding Certificates.
Notwithstanding any dispute between the Corporation and the City, the City shall make all Rental Payments when due without deduction or offset of any kind and shall not withhold any Rental Payments pending the final resolution of such dispute. In the event of a determination that the City was not liable for said Rental Payments or any portion thereof, said payments or excess of payments, as the case may be, shall be credited against subsequent Rental Payments due hereunder or refunded at the time of such determination. Amounts required to be deposited by the City with the Trustee pursuant to this Section on any date shall be reduced to the extent of available amounts on deposit in the Base Rental Payment Fund, the Interest Fund or the Principal Fund.
Section 3.05. Appropriations Covenant. The City covenants to take such action as may be necessary to include all Rental Payments due hereunder as a separate line item in its annual budgets and to make necessary annual appropriations for all such Rental Payments. The covenants on the part of the City herein contained shall be deemed to be and shall be construed to be duties imposed by law and it shall be the duty of each and every public official of the City to take such action and do such things as are required by law in the performance of the official duty of such 8 4126-7526-6404.4
officials to enable the City to carry out and perform the covenants and agreements in this Lease Agreement agreed to be carried out and performed by the City.
Section 3.06. Rental Abatement. (a) Except as otherwise specifically provided in this Section, during any period in which, by reason of material damage to, or destruction or condemnation of, the Property, or any defect in title to the Property, there is substantial interference with the City’s right to use and occupy any portion of the Property, Rental Payments shall be abated proportionately, and the City waives the benefits of California Civil Code Sections 1932(1), 1932(2) and 1933(4) and any and all other rights to terminate this Lease Agreement by virtue of any such interference, and this Lease Agreement shall continue in full force and effect. The City and the Corporation shall, in a reasonable manner and in good faith, determine the amount of such abatement; provided, however, that the Rental Payments due for any Rental Period shall not exceed the annual fair rental value of that portion of the Property available for use and occupancy by the City during such Rental Period. The City and the Corporation shall provide the Trustee and the Insurer with a certificate setting forth the amount of abatement and the basis therefor. Such abatement shall continue for the period commencing with the date of interference resulting from such damage, destruction, condemnation or title defect and, with respect to damage to or destruction of the Property, ending with the substantial completion of the work of repair or replacement of the Property, or the portion thereof so damaged or destroyed; and, to the extent necessary to pay unpaid Rental Payments, the term of this Lease Agreement shall be extended as provided in Section 2.02 hereof, except that the term of this Lease Agreement shall in no event be extended more than ten years beyond the Scheduled Termination Date. (b) Notwithstanding the foregoing, to the extent that moneys are available for the payment of Rental Payments in any of the funds and accounts established under the Trust Agreement, Rental Payments shall not be abated as provided above but, rather, shall be payable by the City as a special obligation payable solely from said funds and accounts.
Section 3.07. Prepayment. (a) The City may prepay all or a portion of the Base Rental Payments that are payable on or after May 1, 20__, from any source of available funds, on any date on or after May 1, 20__, by paying (A) all or a portion, as elected by the City, of the principal components of the Base Rental Payments, and (B) the accrued but unpaid interest component of such Base Rental Payments to be prepaid to the date of such prepayment. (b) The City may prepay, from any source of available funds, all or any portion of the Base Rental Payments by depositing with the Trustee moneys or securities as provided, and subject to the terms and conditions set forth, in Article X of the Trust Agreement sufficient to make such Base Rental Payments when due or to make such Base Rental Payments through a specified date on which the City has a right to prepay such Base Rental Payments pursuant to subsection (a) of this Section, and to prepay such Base Rental Payments on such prepayment date, at a prepayment price determined in accordance with subsection (a) of this Section. (c) If less than all of the Base Rental Payments are prepaid pursuant to this Section then, as of the date of such prepayment pursuant to subsection (a) of this Section, or the date of a deposit pursuant to subsection (b) of this Section, the principal and interest components of the Base Rental Payments shall be recalculated in order to take such prepayment into account. If, following a partial prepayment of Base Rental Payments, the Property is damaged, destroyed or 9 4126-7526-6404.4
taken by eminent domain, or a defect in title to the Property is discovered, the City shall not be entitled to, and by such prepayment waives the right of, abatement of such prepaid Base Rental Payments and the City shall not be entitled to any reimbursement of such Base Rental Payments. (d) If all of the Base Rental Payments are prepaid pursuant to this Section and if all amounts due to the Insurer have been paid in full then, as of the date of such prepayment pursuant to subsection (a) of this Section, or deposit pursuant to subsection (b) of this Section, the term of this Lease Agreement shall be terminated.
(e) Prepayments of Base Rental Payments made pursuant to this Section shall be applied to the prepayment of Certificates as provided in Section 4.01 of the Trust Agreement. (f) Before making any prepayment pursuant to this Section, the City shall give written notice to the Corporation and the Insurer specifying the date on which such prepayment will be made, which date shall be not less than 40 nor more than 60 days from the date such notice is given, unless the Corporation agrees to a different notice period. 10 4126-7526-6404.4
ARTICLE IV
REPRESENTATIONS
Section 4.01. Representations of the City. The City represents that, as of the Delivery Date:
(a) the City has the full power and authority to enter into, to execute and to deliver this Lease Agreement and the Trust Agreement, and to perform all of its covenants and obligations hereunder and thereunder, and has duly authorized the execution and delivery of this Lease Agreement and the Trust Agreement; (b) the Property is not located in a 100-year flood plain; (c) the City has, after due inquiry, no knowledge and has not given or received any written notice indicating that the Property or the past or present use thereof or any practice, procedure or policy employed by it in the conduct of its business materially violates any Applicable Laws;
(d) without limiting the generality of the foregoing, neither the City nor to the best of its knowledge, after due inquiry, any prior or present owner, tenant or subtenant of the Property has, other than as set forth in this subsection or as may have been remediated in accordance with Environmental Regulations (i) used, treated, stored, transported or disposed of any material amount of Hazardous Materials on, from or beneath the Property, (ii) released any material amount of Hazardous Materials on, from or beneath the Property, or (iii) stored any material amount of petroleum products at the Property in underground storage tanks; provided, however, that excluded from the representations and warranties in this paragraph with respect to Hazardous Materials are those Hazardous Materials in such amounts as are ordinarily found in the inventory of, or used in the maintenance of city buildings, the use, treatment, storage, transportation and disposal of which has been and shall be in compliance with all Environmental Regulations; (e) no portion of the Property located in an area of high potential incidence of radon has an unventilated basement or subsurface portion that is occupied or used for any purpose other than the foundation or support of the improvements to the Property, respectively; and
(f) the City has not received any notice from any insurance company that has issued a policy with respect to the Property or from Applicable Laws relating to insurance standards requiring the performance of any repairs, alterations or other work, which repairs, alterations or other work have not been completed at the Property. The City has not received any notice of default or breach that has not been cured under any covenant, condition, restriction, right-of-way, reciprocal easement, agreement or other easement affecting the Property that is to be performed or complied with by it.
Section 4.02. Representations of the Corporation. The Corporation represents that the Corporation, as of the Delivery Date, has the full power and authority to enter into, to execute and to deliver this Lease Agreement, the Assignment Agreement and the Trust Agreement to perform 11 4126-7526-6404.4
all of its covenants and obligations hereunder and thereunder, and has duly authorized the execution and delivery of this Lease Agreement, the Assignment Agreement and the Trust Agreement.
12 4126-7526-6404.4
ARTICLE V
COVENANTS
Section 5.01. Recordation. The City shall record, or cause to be recorded, with the San Bernardino County Recorder, this Lease Agreement, the Ground Lease and the Assignment Agreement, or memoranda thereof.
Section 5.02. Quiet Enjoyment. The City, by keeping and performing the covenants and agreements herein contained, shall at all times during the term of this Lease Agreement peaceably and quietly have, hold and enjoy the Property without suit, trouble or hindrance from the Corporation.
Section 5.03. Net-Net-Net Lease. This Lease Agreement shall be deemed and construed to be a “net-net-net lease” and the Rental Payments shall be an absolute net return to the Corporation, free and clear of any expenses, charges or set-off whatsoever and notwithstanding any dispute between the City and the Corporation.
Section 5.04. Right of Entry. The Corporation shall have the right to enter upon and to examine and inspect the Property during reasonable business hours, and in emergencies at all times, for any reasonable purpose connected with the Corporation’s rights or obligations under this Lease Agreement, and for all other lawful purposes. The Insurer shall have the right to enter upon and to examine and inspect the Property during reasonable business hours, and in emergencies at all times, for any reasonable purpose connected with the Insurer’s rights or obligations under this Lease Agreement.
Section 5.05. Use of the Property. The City shall not use, operate or maintain the Property improperly, carelessly, in violation of any applicable law or in a manner contrary to that contemplated by this Lease Agreement. In addition, the City shall comply in all respects, including with respect to the use, maintenance and operation of the Property, with all laws of the jurisdictions in which its operations may extend and any legislative, executive, administrative or judicial body exercising any power or jurisdiction over the Property; provided, however, that the City may contest in good faith the validity or application of any such law or rule in any reasonable manner that does not, in the opinion of the Corporation, adversely affect the estate of the Corporation in and to any of the Property or its interest or rights under this Lease Agreement.
Section 5.06. Maintenance and Utilities. Throughout the term of this Lease Agreement, as part of the consideration for rental of the Property, all improvement, repair and maintenance of the Property shall be the responsibility of the City, and the City shall pay for or otherwise arrange for the payment of all utility services supplied to the Property, which may include janitor service, security, power, gas, telephone, light, heating, ventilation, air conditioning, water and all other utility services, and shall pay for or otherwise arrange for payment of the cost of the repair and replacement of the Property resulting from ordinary wear and tear or want of care on the part of the City or any assignee or sublessee thereof. In exchange for the Rental Payments, the Corporation agrees to provide only the Property.
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Section 5.07. Additions to Property. Subject to the provisions of Section 5.10 hereof, the City and any sublessee shall, at its own expense, have the right to make additions, modifications and improvements to the Property. To the extent that the removal of such additions, modifications or improvements would not cause material damage to the Property, such additions, modifications and improvements shall remain the sole property of the City or such sublessee, and neither the Corporation nor the Trustee shall have any interest therein. Such additions, modifications and improvements shall not in any way damage the Property or cause it to be used for purposes other than those authorized under the provisions of state and federal law; and the Property, upon completion of any additions, modifications and improvements made pursuant to this Section, shall be of a value that is at least equal to the value of the Property immediately prior to the making of such additions, modifications and improvements.
Section 5.08. Installation of City’s Equipment. The City and any sublessee may at any time and from time to time, in its sole discretion and at its own expense, install or permit to be installed items of equipment or other personal property in or upon the Property. All such items shall remain the sole property of the City or such sublessee, and neither the Corporation nor the Trustee shall have any interest therein. The City or such sublessee may modify or remove such equipment or other personal property at any time, provided that such party shall repair and restore any and all damage to the Property resulting from the installation, modification or removal of any such items. Nothing in this Lease Agreement shall prevent the City or any sublessee from purchasing items to be installed pursuant to this Section under a conditional sale or lease purchase contract, or subject to a vendor’s lien or security agreement as security for the unpaid portion of the purchase price thereof, provided that no such lien or security interest shall attach to any part of the Property.
Section 5.09. Taxes. (a) The City shall pay or cause to be paid all taxes and assessments of any type or nature charged to the Corporation or affecting the Property or the respective interests or estates therein; provided, however, that with respect to special assessments or other governmental charges that may lawfully be paid in installments over a period of years, the City shall be obligated to pay only such installments as are required to be paid during the term of this Lease Agreement as and when the same become due.
(b) After giving notice to the Corporation, the Insurer and the Trustee, the City or any sublessee may, at the City’s or such sublessee’s expense and in its name, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom unless the Corporation, the Insurer or the Trustee shall notify the City or such sublessee that, in the opinion of independent counsel, by nonpayment of any such items, the interest of the Corporation in the Property will be materially endangered or the Property, or any part thereof, will be subject to loss or forfeiture, in which event the City or such sublessee shall promptly pay such taxes, assessments or charges or provide the Corporation with full security against any loss that may result from nonpayment, in form satisfactory to the Corporation, the Insurer and the Trustee.
Section 5.10. Mechanics’ Liens. In the event the City shall at any time during the term of this Lease Agreement cause any changes, alterations, additions, improvements, or other work to be done or performed or materials to be supplied, in or upon the Property, the City shall pay, 14 4126-7526-6404.4
when due, all sums of money that may become due for, or purporting to be for, any labor, services, materials, supplies or equipment furnished or alleged to have been furnished to or for the City in, upon or about the Property and that may be secured by a mechanics’, materialmen’s or other lien against the Property or the Corporation’s interest therein, and shall cause each such lien to be fully discharged and released at the time the performance of any obligation secured by any such lien matures or becomes due; provided, however, that if the City desires to contest any such lien, it may do so as long as such contest is in good faith. If any such lien shall be reduced to final judgment and such judgment or such process as may be issued for the enforcement thereof is not promptly stayed, or if so stayed and said stay thereafter expires, the City shall forthwith pay and discharge said judgment.
Section 5.11. Other Liens. The City shall keep the Property and all parts thereof free from judgments and materialmen’s and mechanics’ liens and free from all claims, demands, encumbrances and other liens of whatever nature or character, and free from any claim or liability that materially impairs the City in conducting its business or utilizing the Property, and the Trustee at its option (after first giving the City ten days’ written notice to comply therewith and failure of the City to so comply within such ten-day period) may defend against any and all actions or proceedings, or may pay or compromise any claim or demand asserted in any such actions or proceedings; provided, however, that, in defending against any such actions or proceedings or in paying or compromising any such claims or demands, the Trustee shall not in any event be deemed to have waived or released the City from liability for or on account of any of its agreements and covenants contained herein, or from its obligation hereunder to perform such agreements and covenants. The Trustee shall have no liability with respect to any determination made in good faith to proceed or decline to defend, pay or compromise any such claim or demand.
Section 5.12. Environmental Compliance. (a) Neither the City nor the Corporation shall use or permit the Property or any part thereof to be used to generate, manufacture, refine, treat, store, handle, transport or dispose of, transfer, produce or process Hazardous Materials, except, and only to the extent, if necessary to maintain the improvements on the Property and then only in compliance with all Environmental Regulations, nor shall it permit, as a result of any intentional or unintentional act or omission on its part or by any tenant, subtenant, licensee, guest, invitee, contractor, employee or agent, the storage, transportation, disposal or use of Hazardous Materials or the Release or threat of Release of Hazardous Materials on, from or beneath the Property or onto any other property, excluding, however, those Hazardous Materials in those amounts ordinarily found in the inventory of cities, the use, storage, treatment, transportation and disposal of which shall be in compliance with all Environmental Regulations. Upon the occurrence of any Release or threat of Release of Hazardous Materials, the Corporation or the City shall promptly commence and perform, or cause to be commenced and performed promptly, without cost to the Trustee, all investigations, studies, sampling and testing, and all remedial, removal and other actions necessary to clean up and remove all Hazardous Materials so released on, from or beneath the Property or other property, in compliance with all Environmental Regulations.
Notwithstanding anything to the contrary contained herein, underground storage tanks shall only be permitted subject to compliance with subsection (d) of this Section and only to the extent necessary to maintain the improvements on the Property. (b) The City and the Corporation shall comply with, and shall cause all tenants, subtenants, licensees, guests, invitees, contractors, employees and agents on the Property to 15 4126-7526-6404.4
comply with, all Environmental Regulations, and shall keep the Property free and clear of any liens imposed pursuant thereto; provided, however, that any such liens, if not discharged, may be bonded. The City and the Corporation shall cause each tenant under any lease, and use their best efforts to cause all of such tenant’s subtenants, agents, licensees, employees, contractors, guests and invitees and the guests and invitees of all of the foregoing to comply with all Environmental Regulations with respect to the Property; provided, however, that the Corporation and the City shall remain solely responsible for ensuring such compliance and such limitation shall not diminish or affect in any way the Corporation’s or the City’s obligations contained in subsection (c) of this Section. Upon receipt of any notice from any Person with regard to the Release of Hazardous Materials on, from or beneath the Property, the City or the Corporation, as appropriate, shall give prompt written notice thereof to the City or the Corporation, as appropriate, the Trustee, and the Insurer prior to the expiration of any period in which to respond to such notice under any Environmental Regulation.
(c) Irrespective of whether any representation or warranty contained in Article IV hereof is not true or correct, the Corporation and the City shall, to the extent permitted by law, defend, indemnify and hold harmless the Corporation, the Insurer and the Trustee and any director, member, officer, employee, successor or assignee thereof from and against any claims, demands, penalties, fines, attorneys’ fees (including attorneys’ fees incurred to enforce the indemnification contained in this Section), consultants’ fees, investigation and laboratory fees, liabilities, settlements (five Insurance Business Days’ prior notice of which the Corporation, the Insurer or the Trustee, as appropriate, shall have delivered to the City), court costs, damages, losses, costs or expenses of whatever kind or nature, known or unknown, contingent or otherwise, occurring in whole or in part, arising out of, or in any way related to (i) the presence, disposal, Release, threat of Release, removal, discharge, storage or transportation of any Hazardous Materials on, from or beneath the Property, (ii) any personal injury, including wrongful death, or property damage, real or personal, arising out of or related to such Hazardous Materials, (iii) any lawsuit brought or threatened, settlement reached (five Insurance Business Days’ prior notice of which the Corporation, the Insurer or the Trustee, as appropriate, shall have delivered to the City), or governmental order relating to Hazardous Materials on, from or beneath the Property, (iv) any violation of Environmental Regulations or subsection (a) or (b) of this Section by the City or the Corporation or any of their agents, tenants, employees, contractors, licensees, guests, subtenants or invitees, and (v) the imposition of any governmental lien for the recovery of environmental cleanup or removal costs. To the extent that either the Corporation or the City is strictly liable under any Environmental Regulation, the City’s obligation to the Corporation, the Insurer and the Trustee and the other indemnitees under the foregoing indemnification shall likewise be without regard to fault on its part with respect to the violation of any Environmental Regulation that results in liability to any indemnitee. The obligations and liabilities under this subsection shall survive the payment of all Certificates and the discharge of the Trust Agreement. (d) The City shall conform to and carry out a reasonable program of maintenance and inspection of all underground storage tanks, and shall maintain, repair and replace such tanks only in accordance with Environmental Regulations.
Section 5.13. Condemnation. So long as the Certificates are Outstanding, the City, to the extent it may lawfully so bind itself, shall not exercise the power of condemnation with respect to the Property. To the extent permitted by law, if for any reason the foregoing covenant is 16 4126-7526-6404.4
determined to be unenforceable or if the City shall fail or refuse to abide by such covenant and condemns the Property, for purposes of such condemnation, the value of the City’s leasehold estate hereunder in the Property shall be not less than the amount sufficient to pay the Base Rental Payments to the first date on which they may be prepaid pursuant to Section 3.07(a) hereof and to prepay the Base Rental Payments on such date.
Section 5.14. Other Obligations. Except for the Certificates and Permitted Encumbrances, the City shall not, during the term of this Lease Agreement, issue or incur or cause to be executed and delivered, directly or indirectly, any additional certificates of participation, notes, bonds or other indebtedness that are either (a) payable from or secured by lease payments or rentals payable under this Lease Agreement, or (b) secured by, or granted a lien on, the Property.
Section 5.15. Corporation Not Liable; Indemnification. (a) None of the Corporation, the Insurer and the Trustee and all directors, members, officers and employees thereof shall be liable to the City or to any other Person for any death, injury or damage that may result to any person or property by or from any cause whatsoever in, on or about the Property. To the extent permitted by law, the City shall, at its expense, indemnify and hold the Corporation, the Insurer and the Trustee and all directors, members, officers and employees thereof harmless against and from any and all claims by or on behalf of any Person arising from the acquisition, construction, occupation, use, operation, maintenance, possession, conduct or management of or from any work done in or about the Property or from the subletting of any part thereof, including any liability for violation of conditions, agreements, restrictions, laws, ordinances, or regulations affecting the Property or the occupancy or use thereof, but excepting the negligence or willful misconduct of the Person seeking indemnity. To the extent permitted by law, the City shall, at its expense, pay and indemnify and save the Corporation, the Insurer and the Trustee and all directors, members, officers and employees thereof harmless against and from any and all claims arising from (i) any condition of the Property and the adjoining sidewalks and passageways, (ii) any breach or default on the part of the City in the performance of any covenant or agreement to be performed by the City pursuant to this Lease Agreement, (iii) any act or negligence of licensees in connection with their use, occupancy or operation of the Property, or (iv) any accident, injury or damage whatsoever caused to any person, firm or corporation in or about the Property or upon or under the sidewalks and from and against all costs, reasonable counsel fees, expenses and liabilities incurred in any action or proceeding brought by reason of any claim referred to in this Section, but excepting the negligence or willful misconduct of the Person seeking indemnity. In the event that any action or proceeding is brought against the Corporation, the Insurer or the Trustee or any director, member, officer or employee thereof, by reason of any such claim, the City, upon notice from the Corporation, the Insurer or the Trustee or such director, member, officer or employee thereof, shall resist or defend such action or proceeding by counsel reasonably satisfactory to the Corporation, the Insurer or the Trustee or such director, member, officer or employee thereof. (b) Notwithstanding the fact that it is the intention of the parties that the Corporation, the Insurer and the Trustee and all directors, members, officers and employees thereof shall not incur any pecuniary liability by reason of the terms of this Lease Agreement, or the undertakings required of the Corporation hereunder or any director, member, officer or employee thereof, by reason of the execution and delivery of the Certificates, by reason of the execution or authorization of any document or certification in connection with the Certificates, including the Trust Agreement, this Lease Agreement or any preliminary or final official statement, by reason of the 17 4126-7526-6404.4
performance or nonperformance of any act required of any of them by this Lease Agreement or the Trust Agreement or by reason of the performance or nonperformance of any act requested of any of them by the City, the Corporation, the Insurer or the Trustee, including all claims, liabilities, damages, losses or expenses arising in connection with the violation of any statute or regulation pertaining to the foregoing; nevertheless, if the Corporation, the Insurer or the Trustee or any director, member, officer or employee thereof should incur any such pecuniary liability, then in such event the City, to the extent permitted by law, shall indemnify and hold harmless the Corporation, the Insurer and the Trustee, and all directors, members, officers and employees thereof, against all claims by or on behalf of any Person arising out of the same, or in connection with any action or proceeding brought thereon, but excepting the negligence or willful misconduct of the Person seeking indemnity, and upon notice from the Corporation, the Insurer or the Trustee, the City shall defend the Corporation, the Insurer and the Trustee in any such action or proceeding.
This Section shall survive the termination of this Lease Agreement for any claim, proceeding or action arising from any event or omission occurring during the term of this Lease Agreement.
Section 5.16. Further Assurances. The City shall make, execute and deliver any and all such further agreements, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Lease Agreement and for the better assuring and confirming unto the Corporation of the rights and benefits provided in this Lease Agreement.
18 4126-7526-6404.4
ARTICLE VI
INSURANCE; NET PROCEEDS; EMINENT DOMAIN
Section 6.01. Property Casualty Insurance; Rental Interruption Insurance. (a) The City shall maintain reasonable and customary liability insurance. The City’s obligations under this subsection may be satisfied by self-insurance, provided that such self-insurance complies with the provisions of Section 6.04 hereof.
(b) The City shall maintain or cause to be maintained, throughout the term of this Lease Agreement, casualty insurance insuring the Property against fire, lightning and all other risks covered by an extended coverage endorsement (excluding earthquake and flood) to the full insurable value of the Property, subject to a $100,000 loss deductible provision, unless some other deductible is acceptable to the Insurer. The City’s obligations under this subsection may be satisfied by self-insurance, provided that such self-insurance complies with the provisions of Section 6.04 hereof. All Net Proceeds received under said policy or policies shall be deposited with the Trustee and applied as provided in Section 5.03 of the Trust Agreement. (c) The City shall maintain or cause to be maintained, throughout the term of this Lease Agreement, rental interruption insurance to cover the Corporation’s loss, total or partial, of Base Rental Payments resulting from the loss, total or partial, of the use of any part of the Property as a result of any of the hazards required to be covered pursuant to subsection (c) of this Section in an amount equal to the lesser of (i) the amount sufficient at all times to pay an amount not less than the product of two times the maximum amount of Base Rental Payments scheduled to be paid during any Rental Period, or (ii) such lesser amount as may be agreed to by the Insurer. The City’s obligations under this subsection may not be satisfied by self-insurance. All Net Proceeds received under said policy or policies shall be deposited with the Trustee and applied as provided in Section
5.01(c) of the Trust Agreement.
(d) The insurance required by this Section (other than when satisfied with selfinsurance in compliance with the provisions of section 6.04 hereof) shall be provided by reputable insurance companies with claims paying abilities determined, in the reasonable opinion of the City’s professionally certified risk manager or an independent insurance consultant, to be adequate for the purposes hereof.
Section 6.02. Title Insurance. The City shall provide, at its own expense, one or more CLTA or ALTA title insurance policies for the Property, in the aggregate amount of not less than the initial aggregate amount of principal evidenced by the Certificates. Said policy or policies shall insure (a) the fee interest of the City in the Property, (b) the Corporation’s ground leasehold estate in the Property under the Ground Lease, and (c) the City’s leasehold estate hereunder in the Property, subject only to Permitted Encumbrances; provided, however, that one or more of said estates may be insured through an endorsement to such policy or policies. All Net Proceeds received under said policy or policies shall be deposited with the Trustee and applied as provided in Section 5.04 of the Trust Agreement. So long as any of the Certificates remain Outstanding, each policy of title insurance obtained pursuant hereto or required hereby shall provide that all proceeds thereunder shall be payable to the Trustee for the benefit of the Owners. 19 4126-7526-6404.4
Section 6.03. Additional Insurance Provision; Form of Policies. (a) The City shall pay or cause to be paid when due the premiums for all insurance policies required by Section 6.01 hereof, and shall promptly furnish or cause to be furnished evidence of such payments to the Trustee. All such policies shall contain a standard lessee clause in favor of the Trustee and the general liability insurance policies shall be endorsed to show the Trustee as an additional insured.
All such policies shall provide that the Trustee and the Insurer shall be given 30 days’ notice of the expiration thereof, any intended cancellation thereof or any reduction in the coverage provided thereby. The Trustee shall be fully protected in accepting payment on account of such insurance or any adjustment, compromise or settlement of any loss agreed to by the Trustee; provided, however, that the Trustee shall not agree to any adjustment, compromise or settlement without the Insurer’s written consent.
(b) The City shall cause to be delivered to the Trustee and the Insurer on or before August 15 of each year, commencing August 15, 2026, a schedule of the insurance policies being maintained in accordance herewith and a Written Certificate of the City stating that such policies are in full force and effect and that the City is in full compliance with the requirements of this Article. The City shall, upon request of the Insurer, deliver to the Insurer certificates or duplicate originals or certified copies of each insurance policy described in such schedule. The Trustee shall be entitled to rely upon said Written Certificate of the City as to the City’s compliance with this Article. Neither the Trustee nor the Insurer shall be responsible for the sufficiency of coverage or amounts of such policies. All policies of insurance required by this Lease Agreement shall be in form satisfactory to the Insurer.
Section 6.04. Self-Insurance. Insurance provided through a California joint powers authority of which the City is a member or with which the City contracts for insurance shall be deemed to be self-insurance for purposes hereof. All statements of self-insurance provided in accordance with this Lease Agreement shall be in form satisfactory to the Insurer. Any selfinsurance maintained by the City pursuant to this Article shall comply with the following terms:
(a) the self-insurance program shall be approved in writing by the Insurer; (b) the self-insurance program shall be approved in writing by the City’s professionally certified risk manager or by an Independent Insurance Consultant; (c) the self-insurance program shall include an actuarially sound claims reserve fund out of which each self-insured claim shall be paid, the adequacy of each such fund shall be evaluated on an annual basis by the City’s professionally certified risk manager or by the Independent Insurance Consultant and any deficiencies in any self-insured claims reserve fund shall be remedied in accordance with the recommendation of the City’s professionally certified risk manager or such Independent Insurance Consultant, as applicable;
(d) the self-insured claims reserve fund shall be held in a separate trust fund; and
20 4126-7526-6404.4
(e) in the event the self-insurance program shall be discontinued, the actuarial soundness of its claims reserve fund, as determined by the City’s professionally certified risk manager or by the Independent Insurance Consultant, shall be maintained.
Section 6.05. Eminent Domain. (a) If all or a portion of the Property shall be taken under the power of eminent domain, the City shall, no later than 60 days prior to the day that possession thereof shall be so taken, notify the Trustee in writing of the City’s determination as to whether or not such taking will result in a substantial interference with the City’s right to the use or occupancy of the Property and an abatement in whole or in part of Rental Payments pursuant to Section 3.06 hereof.
(b) If a portion, but not all, of the Property is so taken and the City determines that such taking will not result in a substantial interference with the City’s right to the use or occupancy of the Property and an abatement in whole or in part of Rental Payments pursuant to Section 3.06 hereof, the Net Proceeds of any award made in the eminent domain proceedings for such taking shall be remitted to the City and used for any lawful purpose thereof. (c) If a portion, but not all, of the Property is so taken and the City determines that such taking will result in a substantial interference with the City’s right to the use or occupancy of the Property and an abatement in whole or in part of Rental Payments pursuant to Section 3.06 hereof, the City shall (i) no later than 45 days prior to the day that possession thereof shall be so taken, cause alternate real property to be substituted the portion of the Property so taken pursuant to, and in accordance with the provisions of, Section 9.03 hereof, or (ii) immediately upon receipt thereof, deliver or cause to be delivered the Net Proceeds of any award made in the eminent domain proceedings for such taking to the Trustee for the application to the prepayment, pursuant to Section 4.01(a) of the Trust Agreement, of a portion of the Outstanding Certificates. (d) If all of the Property is so taken, the City shall (i) no later than 45 days prior to the day that possession thereof shall be so taken, cause alternate real property to be substituted for the Property pursuant to, and in accordance with the provisions of, Section 9.03 hereof, or (ii) immediately upon receipt thereof, deliver or cause to be delivered the Net Proceeds of any award made in the eminent domain proceedings for such taking to the Trustee for the application to the prepayment, pursuant to Section 4.01(a) of the Trust Agreement, of all or a portion of the Outstanding Certificates.
21 4126-7526-6404.4
ARTICLE VII
LEASE DEFAULT EVENTS AND REMEDIES
Section 7.01. Lease Default Events and Remedies. (a) If (i) the City shall fail to pay any Rental Payment payable hereunder when the same becomes due and payable, time being expressly declared to be of the essence in this Lease Agreement, (ii) the City shall fail to keep, observe or perform any other term, covenant or condition contained herein to be kept or performed by the City, if such failure shall have continued for a period of 30 days after written notice thereof, specifying such failure and requiring the same to be remedied, shall have been given to the City by the Corporation, the Trustee, the Insurer or the Owners of not less than a majority of the aggregate principal evidenced by Certificates then Outstanding; provided, however, that if the failure stated in the notice can be corrected, but not within such 30 day period, such failure shall not constitute a Lease Default Event if corrective action is instituted by the City within such 30 day period, the Insurer consents in writing to an extended period of time, and the City shall thereafter diligently and in good faith cure such failure in a reasonable period of time, provided, further, that, unless consented to by the Trustee and the Insurer, such period of time shall not exceed 180 days, (iii) the City shall fail to observe and perform any of the covenants, agreements or conditions on its part in the Trust Agreement contained, if such failure shall have continued for a period of 30 days after written notice thereof, specifying such failure and requiring the same to be remedied, shall have been given to the City by the Corporation, the Trustee, the Insurer or the Owners of not less than a majority of the aggregate principal evidenced by Certificates then Outstanding; provided, however, that if the failure stated in the notice can be corrected, but not within such 30 day period, such failure shall not constitute a Lease Default Event if corrective action is instituted by the City within such 30 day period, the Insurer consents in writing to an extended period of time, and the City shall thereafter diligently and in good faith cure such failure in a reasonable period of time, provided, further, that, unless consented to by the Trustee and the Insurer, such period of time shall not exceed 180 days, (iv) except as otherwise provided in Article VIII hereof, the City’s interest in this Lease Agreement or any part thereof shall be assigned or transferred, either voluntarily or by operation of law or otherwise, (v) the City shall abandon or vacate the Property, or (vi) the City shall commence a voluntary case under Title 11 of the United States Code or any substitute or successor statute, such failure or event shall constitute a Lease Default Event.
(b) Upon the occurrence of any Lease Default Event, the Corporation, in addition to all other rights and remedies it may have at law, shall have the option to do any of the following:
(i) terminate this Lease Agreement in the manner hereinafter provided on account of such Lease Default Event, notwithstanding any re-entry or re-letting of the Property as hereinafter provided for in subparagraph (ii) hereof, and to re-enter the Property and remove all persons in possession thereof and all personal property whatsoever situated upon the Property and place such personal property in storage in any warehouse or other suitable place, for the account of and at the expense of the City. In the event of such termination, the City agrees to surrender immediately possession of the Property, without let or hindrance, and to pay the Corporation all damages recoverable at law that the Corporation may incur by reason of such Lease Default Event, including any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such re-entry upon 22 4126-7526-6404.4
the Property and removal and storage of such property by the Corporation or its duly authorized agents in accordance with the provisions herein contained. Neither notice to pay Rental Payments or to deliver up possession of the Property given pursuant to law nor any entry or re-entry by the Corporation nor any proceeding in unlawful detainer, or otherwise, brought by the Corporation for the purpose of effecting such re-entry or obtaining possession of the Property nor the appointment of a receiver upon initiative of the Corporation to protect the Corporation’s interest under this Lease Agreement shall of itself operate to terminate this Lease Agreement, and no termination of this Lease Agreement on account of such Lease Default Event shall be or become effective by operation of law or acts of the parties hereto, or otherwise, unless and until the Corporation shall have given written notice to the City of the election on the part of the Corporation to terminate this Lease Agreement. No surrender of the Property or of the remainder of the term hereof or any termination of this Lease Agreement shall be valid in any manner or for any purpose whatsoever unless the Corporation so provided in such written notice; or (ii) without terminating this Lease Agreement (A) collect each installment of Rental Payments as the same become due and enforce any other terms or provisions hereof to be kept or performed by the City, regardless of whether or not the City has abandoned the Property, or (B) exercise any and all rights of entry and re-entry upon the Property. In the event the Corporation does not elect to terminate this Lease Agreement in the manner provided for in subparagraph (i) hereof, the City (I) shall remain liable and shall keep or perform all covenants and conditions herein contained to be kept or performed by the City, (II) if the Property is not re-let, shall pay the full amount of the Rental Payments to the end of the term of this Lease Agreement, (III) if the Property is re-let, shall pay any deficiency in Rental Payments that results therefrom, and (IV) shall pay said Rental Payments and/or Rental Payment deficiency punctually at the same time and in the same manner as hereinabove provided for the payment of Rental Payments hereunder, notwithstanding the fact that the Corporation may have received in previous years or may receive thereafter in subsequent years Rental Payments in excess of the Rental Payments herein specified, and notwithstanding any entry or re-entry by the Corporation or suit in unlawful detainer, or otherwise, brought by the Corporation for the purpose of effecting such re-entry or obtaining possession of the Property. Should the Corporation elect to re-enter as herein provided, the City hereby irrevocably appoints the Corporation as the agent and attorneyin-fact of the City to re-let the Property, or any part thereof, from time to time, either in the Corporation’s name or otherwise, upon such terms and conditions and for such use and period as the Corporation may deem advisable and to remove all persons in possession thereof and all personal property whatsoever situated upon the Property and to place such personal property in storage in any warehouse or other suitable place, for the account of and at the expense of the City, and the City hereby indemnifies and agrees to save harmless the Corporation from any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such re-entry upon and re-letting of the Property and removal and storage of such property by the Corporation or its duly authorized agents in accordance with the provisions herein contained. The City agrees that the terms of this Lease Agreement constitute full and sufficient notice of the right of the Corporation to re-let the Property in the event of such re-entry without effecting a surrender of this Lease Agreement, and further agrees that no acts of the Corporation in effecting such re-letting shall constitute a surrender or termination of this Lease Agreement irrespective of the use 23 4126-7526-6404.4
or the term for which such re-letting is made or the terms and conditions of such re-letting, or otherwise, but that, on the contrary, in the event of such Lease Default Event the right to terminate this Lease Agreement shall vest in the Corporation to be effected in the sole and exclusive manner provided for in subparagraph (i) hereof. The City shall pay the Corporation the cost of any alterations or additions to the Property necessary to place the Property in condition for re-letting immediately upon notice to the City of the completion and installation of such additions or alterations.
The City hereby waives any and all claims for damages caused or which may be caused by the Corporation in re-entering and taking possession of the Property as herein provided and all claims for damages that may result from the destruction of or injury to the Property and all claims for damages to or loss of any property belonging to the City, or any other person, that may be in or upon the Property.
(c) In addition to the other remedies set forth in this Section, upon the occurrence of a Lease Default Event, the Corporation shall be entitled to proceed to protect and enforce the rights vested in the Corporation by this Lease Agreement or by law. The provisions of this Lease Agreement and the duties of the City and of its board, officers or employees shall be enforceable by the Corporation by mandamus or other appropriate suit, action or proceeding in any court of competent jurisdiction. Without limiting the generality of the foregoing, the Corporation shall have the right to bring the following actions:
(i) Accounting. By action or suit in equity to require the City and its board, officers and employees and its assigns to account as the trustee of an express trust. (ii) Injunction. By action or suit in equity to enjoin any acts or things that may be unlawful or in violation of the rights of the Corporation. (iii) Mandamus. By mandamus or other suit, action or proceeding at law or in equity to enforce the Corporation’s rights against the City (and its board, officers and employees) and to compel the City to perform and carry out its duties and obligations under the law and its covenants and agreements with the City as provided herein. (d) Each and all of the remedies given to the Corporation hereunder or by any law now or hereafter enacted are cumulative and the single or partial exercise of any right, power or privilege hereunder shall not impair the right of the Corporation to the further exercise thereof or the exercise of any or all other rights, powers or privileges. The term “re-let” or “re-letting” as used in this Section shall include re-letting by means of the operation by the Corporation of the Property. If any statute or rule of law validly shall limit the remedies given to the Corporation hereunder, the Corporation nevertheless shall be entitled to whatever remedies are allowable under any statute or rule of law.
(e) In the event the Corporation shall prevail in any action brought to enforce any of the terms and provisions of this Lease Agreement, the City shall pay a reasonable amount as and for attorney’s fees incurred by the Corporation in attempting to enforce any of the remedies available to the Corporation hereunder.
24 4126-7526-6404.4
(f) Notwithstanding anything to the contrary contained in this Lease Agreement, the Corporation shall have no right upon a default by the City hereunder, a Lease Default Event or otherwise to accelerate Rental Payments.
(g) Notwithstanding anything herein to the contrary, the termination of this Lease Agreement by the Corporation on account of a Lease Default Event shall not effect or result in a termination of the lease of the Property by the City to the Corporation pursuant to the Ground Lease.
(h) Notwithstanding anything to the contrary contained in this Lease Agreement, so long as the Insurer is not in default in its payment obligations under the Insurance Policy, no remedy shall be exercised hereunder without the prior written consent of the Insurer and the Insurer shall have the right to direct the exercise of any remedy hereunder.
Section 7.02. Waiver. Failure of the Corporation to take advantage of any default on the part of the City shall not be, or be construed as, a waiver thereof, nor shall any custom or practice that may grow up between the parties in the course of administering this instrument be construed to waive or to lessen the right of the Corporation to insist upon performance by the City of any term, covenant or condition hereof, or to exercise any right given the Corporation on account of such default. A waiver of a particular default shall not be deemed to be a waiver of any other default or of the same default subsequently occurring. The acceptance of Rental Payments hereunder shall not be, or be construed to be, a waiver of any term, covenant or condition of this Lease Agreement.
25 4126-7526-6404.4
ARTICLE VIII
AMENDMENTS; ASSIGNMENT AND SUBLEASING;
SUBSTITUTION OR RELEASE
Section 8.01. Amendments. (a) This Lease Agreement and the Ground Lease, and the rights and obligations of the Corporation and the City hereunder and thereunder, may be amended at any time by an amendment hereto or thereto, which shall become binding upon execution by the City and the Corporation, but only with the written consent of the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy) and the Owners of a majority of the aggregate amount of principal evidenced by the Certificates then Outstanding, provided that no such amendment shall (i) extend the payment date of any Base Rental Payment, reduce the interest component or principal component of any Base Rental Payment or change the prepayment terms and provisions, without the prior written consent of the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy) and the Owner of each Certificate so affected, or (ii) reduce the percentage of the aggregate amount of principal evidenced by the Certificates, the consent of the Owners of which is required for the execution of any amendment of this Lease Agreement or the Ground Lease without the prior written consent of the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy) and the Owners of all the Certificates then Outstanding. (b) This Lease Agreement and the Ground Lease, and the rights and obligations of the City and the Corporation hereunder and thereunder, may also be amended at any time by an amendment hereto or thereto, which shall become binding upon execution by the City and the Corporation, but without the written consents of any Owners, but only with the prior written consent of the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy) and only to the extent permitted by law and only for any one or more of the following purposes:
(i) to add to the agreements, conditions, covenants and terms required by the Corporation or the City to be observed or performed herein or therein other agreements, conditions, covenants and terms thereafter to be observed or performed by the Corporation or the City, or to surrender any right or power reserved herein or therein to or conferred herein or therein on the Corporation or the City, and which in either case shall not materially adversely affect the interests of the Insurer or the Owners; (ii) to make such provisions for the purpose of curing any ambiguity or of correcting, curing or supplementing any defective provision contained herein or therein or in regard to questions arising hereunder or thereunder that the Corporation or the City may deem desirable or necessary and not inconsistent herewith or therewith, and which in either case shall not materially adversely affect the interests of the Insurer or the Owners; (iii) to make such additions, deletions or modifications as may be necessary or appropriate to assure the exclusion from gross income for federal income tax purposes of the interest components of Base Rental Payments;
26 4126-7526-6404.4
(iv) to provide for the substitution or release of a portion of the Property in accordance with the provisions of Section 8.03 hereof; or (v) to make such other changes herein or therein or modifications hereto or thereto as the Corporation or the City may deem desirable or necessary, provided such changes or modifications do not adversely affect the rights or interests of the Insurer or the Owners.
Section 8.02. Assignment and Subleasing. Neither this Lease Agreement nor any interest of the City hereunder shall be sold, mortgaged, pledged, assigned or transferred by the City by voluntary act or by operation of law or otherwise; provided, however, that the Property may be subleased in whole or in part by the City with the prior written consent of the Corporation and the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy) and, provided, further, that, any such sublease shall be subject to all of the following conditions:
(a) this Lease Agreement and the obligation of the City to make all Rental Payments hereunder shall remain the primary obligation of the City; (b) the City shall, within 30 days after the delivery thereof, furnish or cause to be furnished to the Corporation and the Trustee a true and complete copy of such sublease; (c) no such sublease by the City shall cause the Property to be used for a purpose other than a governmental or proprietary function authorized under the provisions of the Constitution and laws of the State of California; (d) any sublease of the Property by the City shall explicitly provide that such sublease is subject to all rights of the Corporation under this Lease Agreement, including, the right to re-enter and re-let the Property or terminate this Lease Agreement upon a Lease Default Event; and
(e) the City shall furnish the Trustee with an Opinion of Counsel to the effect that such sublease will not, in and of itself, cause the interest evidenced by the Certificates to be included in gross income for federal income tax purposes.
Section 8.03. Substitution or Release of the Property. The City shall have the right, but only with the written consent of the Insurer, to substitute alternate real property for any portion of the Property or to release a portion of the Property from this Lease Agreement pursuant to this Section. All costs and expenses incurred in connection with such substitution or release shall be borne by the City. Notwithstanding any substitution or release pursuant to this Section, there shall be no reduction in or abatement of the Base Rental Payments due from the City hereunder as a result of such substitution or release. Any such substitution or release of any portion of the Property shall be subject to the following specific conditions, which are hereby made conditions precedent to such substitution or release:
(a) a qualified employee of the City or an independent certified real estate appraiser selected by the City shall have found (and shall have delivered a certificate to the Corporation and the Insurer setting forth its findings) that the Property, as constituted after 27 4126-7526-6404.4
such substitution or release, (i) has an annual fair rental value greater than or equal to 105% of the maximum amount of Base Rental Payments payable by the City in any Rental Period, and (ii) has a useful life equal to or greater than the maximum remaining term of this Lease Agreement (including extensions thereof under Section 2.02 hereof); (b) the City shall have obtained or caused to be obtained a CLTA or an ALTA title insurance policy or policies with respect to any substituted property in the amount of the fair market value of such substituted property (which fair market value shall have been determined by a qualified employee of the City or an independent certified real estate appraiser) of the type and with the endorsements described in Section 6.02 hereof; (c) the City shall have certified to the Corporation and the Insurer that the substituted real property is essential for performing the City’s governmental functions; (d) the City shall have provided the Trustee with an Opinion of Counsel to the effect that such substitution or release will not, in and of itself, cause the interest evidenced by the Certificates to be included in gross income for federal income tax purposes; and (e) the City, the Corporation and the Trustee shall have executed, and the City shall have caused to be recorded with the San Bernardino County Recorder, any document necessary to reconvey to the City the portion of the Property being substituted or released and to include any substituted real property in the description of the Property contained herein and in the Ground Lease.
28 4126-7526-6404.4
ARTICLE IX
MISCELLANEOUS
Section 9.01. Notices. All written notices, statements, demands, consents, approvals, authorizations, offers, designations, requests or other communications hereunder shall be given to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely:
If to the City: City of Redlands
P.O. Box 3005
Redlands, California 92373
Attention: Director of Management Services/Finance
Department
If to the Corporation: Redlands Public Improvement Corporation 300 East State Street, Suite 690
Redlands, California 92373
Attention: Chief Financial Officer
If to the Trustee: U.S. Bank Trust Company, National Association 633 West Fifth Street, 24th Floor
Los Angeles, California 90071
Attention: Global Corporate Trust
If to the Insurer: [INSURER]
[___________]
[___________], [______] [______]
Attention: [___________]
Re: Insurance Policy No. [___________]
Telephone: [___________]
Email: [___________]
In each case in which the notice or other communication refers to an Event of Default or claim on the Insurance Policy, such notice or other communication shall be marked “URGENT MATERIAL ENCLOSED” and a copy shall also be sent to the attention of the General Counsel at the above address and at [___________].
Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the party to whom it is addressed (a) if given by courier or delivery service or if personally served or delivered, upon delivery, (b) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail, (c) if given by electronic mail, on the date sent, but only if confirmation of the receipt of such electronic mail is received or if notice is concurrently sent by another means specified herein, and (d) if given by any other means, upon delivery at the address specified in this Section. 29 4126-7526-6404.4
Section 9.02. Assignment to Trustee; Effect. The City understands and agrees that, upon the execution and delivery of the Assignment Agreement, which is occurring simultaneously with the execution and delivery hereof, substantially all of the right, title and interest of the Corporation in and to this Lease Agreement will be sold, assigned and transferred to the Trustee for the benefit of the Owners of the Certificates. The City hereby consents to such sale, assignment and transfer.
Upon the execution and delivery of the Assignment Agreement, references in the operative provisions hereof to the Corporation shall be deemed to be references to the Trustee, as assignee of the Corporation.
Section 9.03. Rights of Insurer. As long as the Insurance Policy is in effect and the Insurer is not in default in respect of its payment obligations thereunder, the Insurer shall be deemed to be the sole and exclusive Owner of the Outstanding Certificates for purposes of all approvals, consents, waivers, institution of any action, and the direction of all remedies, including approval of or consent to any amendment of this Lease Agreement and the Ground Lease that requires the consent or approval of the Owners of a majority of the aggregate principal evidenced by the Certificates then Outstanding; provided, however, that the Insurer shall not be deemed to be the sole and exclusive Owner of the Outstanding Certificates with respect to any amendment of this Lease Agreement or the Ground Lease that seeks to amend this Lease Agreement or the Ground Lease for purposes set forth in clause (i) or (ii) of subsection (a) of Section 8.01 hereof, and, provided, further, that the Insurer shall not be deemed to be the sole and exclusive Owner of the Outstanding Certificates for such purposes, and shall not have the right to direct or consent to City, Corporation, Trustee or Owner action, during any period if:
(a) the Insurer shall fail to make any payment under the Insurance Policy when due and such failure shall continue for three Business Days; (b) any material provision of the Insurance Policy shall be held to be invalid by a final, non-appealable order of a court of competent jurisdiction, or the validity or enforceability thereof shall be contested in writing by the Insurer; or (c) a proceeding shall have been instituted in a court having jurisdiction in the premises seeking an order for relief, rehabilitation, reorganization, conservation, liquidation or dissolution in respect of the Insurer under Article 16 of the Insurance Law of the State of New York or any successor provision thereto and such proceeding is not terminated for a period of 90 consecutive days or such court enters an order granting the relief sought in such proceeding.
Section 9.04. Third-Party Beneficiary. The Insurer is a third-party beneficiary of this Lease Agreement.
Section 9.05. Partial Invalidity. If any agreement, condition, covenant or term required herein to be observed or performed by or on the part of the City or the Corporation is, to any extent, held to be invalid or unenforceable in any jurisdiction, but the extent of such invalidity or unenforceability does not destroy the basis of the bargain between the parties as contained herein, the remainder of the agreements, conditions, covenants or terms required herein to be observed or performed by or on the part of the City or the Corporation, or the application of such agreements, conditions, covenants or terms to Persons or circumstances other than those as to which such 30 4126-7526-6404.4
agreement, condition, covenant or term is held invalid or unenforceable, shall not be affected by such invalidity or unenforceability, and each remaining agreement, condition, covenant and term required herein to be observed or performed by or on the part of the City and the Corporation shall be valid and shall be enforced to the fullest extent permitted by law.
Section 9.06. Governing Law. This Lease Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California.
Section 9.07. Electronic Signatures. Each of the parties hereto agrees that the transaction consisting of this Lease Agreement may be conducted by electronic means. Each party agrees, and acknowledges that it is such party’s intent, that if such party signs this Lease Agreement using an electronic signature, it is signing, adopting, and accepting this Lease Agreement and that signing this Lease Agreement using an electronic signature is the legal equivalent of having placed its handwritten signature on this Lease Agreement on paper. Each party acknowledges that it is being provided with an electronic or paper copy of this Lease Agreement in a usable format.
Section 9.08. Execution in Counterparts. This Lease Agreement may be simultaneously executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument.
4126-7526-6404.4
IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed by their respective officers thereunto duly authorized, all as of the day and year first written above.
CITY OF REDLANDS
By:
[________],
[________]
REDLANDS PUBLIC IMPROVEMENT
CORPORATION
By:
[________],
[________]
[Signature Page to Lease Agreement]
1 4126-7526-6404.4
EXHIBIT A
MASTER DEFINITIONS
1 4126-7526-6404.4
EXHIBIT B
DESCRIPTION OF THE PROPERTY
City Police Facility
All that real property situated in San Bernardino County, State of California, described as follows, together with any improvements thereto:
1 4126-7526-6404.4
EXHIBIT C
BASE RENTAL PAYMENT SCHEDULE
Interest Payment
Date
Principal
Component Interest Component
Total Base Rental
Payment
4160-4945-2900.4
TRUST AGREEMENT
by and among
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,
AS TRUSTEE
and
REDLANDS PUBLIC IMPROVEMENT CORPORATION
and
CITY OF REDLANDS
Dated as of [________] 1, 2026
Relating To
City of Redlands
Certificates of Participation, Series 2026
(Police and Fire Facilities)
TABLE OF CONTENTS
Page
-i- 4160-4945-2900.4
ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION; EQUAL SECURITY ........... 2 Section 1.01. Definitions.................................................................................................... 2 Section 1.02. Rules of Construction .................................................................................. 2 Section 1.03. Equal Security.............................................................................................. 2 ARTICLE II TERMS AND CONDITIONS OF CERTIFICATES.......................................... 4 Section 2.01. Preparation and Delivery of Certificates...................................................... 4 Section 2.02. Denomination, Medium and Dating of Certificates..................................... 4 Section 2.03. Payment Dates of Certificates; Interest Computation.................................. 4 Section 2.04. Form of Certificates..................................................................................... 5 Section 2.05. Execution of Certificates.............................................................................. 5 Section 2.06. Registration Books....................................................................................... 5 Section 2.07. Transfer and Payment of Certificates; Exchange of Certificates................. 5 Section 2.08. Book-Entry System...................................................................................... 6 Section 2.09. Temporary Certificates ................................................................................ 8 Section 2.10. Certificates Mutilated, Lost, Destroyed or Stolen ....................................... 8 ARTICLE III PROCEEDS OF CERTIFICATES.................................................................... 10 Section 3.01. Delivery of Certificates.............................................................................. 10 Section 3.02. Proceeds of Certificates ............................................................................. 10 Section 3.03. Costs of Issuance Fund .............................................................................. 10 Section 3.04. Acquisition Fund........................................................................................ 10 ARTICLE IV PREPAYMENT OF CERTIFICATES.............................................................. 12 Section 4.01. Terms of Prepayment................................................................................. 12 Section 4.02. Selection of Certificates for Prepayment ................................................... 13 Section 4.03. Notice of Prepayment ................................................................................ 14 Section 4.04. Partial Prepayment of Certificates............................................................. 14 Section 4.05. Effect of Prepayment ................................................................................. 14 ARTICLE V FUNDS AND ACCOUNTS; RENTAL PAYMENTS ..................................... 16 Section 5.01. Pledge; Base Rental Payment Fund ........................................................... 16 Section 5.02. Deposit of Base Rental Payments.............................................................. 17 Section 5.03. Application of Net Proceeds...................................................................... 18
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Section 5.04. Title Insurance ........................................................................................... 19 Section 5.05. Rebate Fund ............................................................................................... 19 Section 5.06. Investments................................................................................................ 20 ARTICLE VI COVENANTS; LIMITATIONS ON LIABILITY ........................................... 21 Section 6.01. Compliance with Trust Agreement............................................................ 21 Section 6.02. Compliance with Ground Lease and Lease Agreement............................. 21 Section 6.03. Observance of Laws and Regulations........................................................ 21 Section 6.04. Other Liens................................................................................................. 21 Section 6.05. Prosecution and Defense of Suits .............................................................. 22 Section 6.06. Recordation................................................................................................ 22 Section 6.07. Tax Covenants ........................................................................................... 22 Section 6.08. Continuing Disclosure ............................................................................... 22 Section 6.09. No Liability by the Corporation to the Owners......................................... 22 Section 6.10. No Liability by the City to the Owners...................................................... 23 Section 6.11. No Liability of the Trustee to the Owners................................................. 23 Section 6.12. Further Assurances..................................................................................... 23 ARTICLE VII EVENTS OF DEFAULT AND REMEDIES.................................................... 24 Section 7.01. Action on Default....................................................................................... 24 Section 7.02. Other Remedies of the Trustee .................................................................. 24 Section 7.03. Non-Waiver................................................................................................ 24 Section 7.04. Remedies Not Exclusive ............................................................................ 25 Section 7.05. Application of Amounts After Event of Default........................................ 25 Section 7.06. Trustee May Enforce Claims Without Possession of Certificates............. 25 Section 7.07. Limitation on Suits..................................................................................... 26 ARTICLE VIII THE TRUSTEE................................................................................................. 27 Section 8.01. Duties and Liabilities of Trustee................................................................ 27 Section 8.02. Qualifications; Removal and Resignation; Successors.............................. 27 Section 8.03. Liabilities of the Trustee ............................................................................ 28 Section 8.04. Right to Rely on Documents and Opinions............................................... 30 Section 8.05. Accounting Records and Financial Statements.......................................... 30
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Section 8.06. Preservation and Inspection of Documents................................................ 30 Section 8.07. Compensation and Indemnification ........................................................... 31 ARTICLE IX AMENDMENT OF OR SUPPLEMENT TO TRUST AGREEMENT............ 32 Section 9.01. Amendment or Supplement ....................................................................... 32 Section 9.02. Disqualified Certificates ............................................................................ 33 Section 9.03. Endorsement or Replacement of Certificates After Amendment or Supplement............................................................................................ 33 Section 9.04. Amendment by Mutual Consent................................................................ 33 ARTICLE X DEFEASANCE ................................................................................................. 34 Section 10.01. Discharge of Trust Agreement................................................................. 34 Section 10.02. Certificates Deemed To Have Been Paid................................................. 34 Section 10.03. Unclaimed Moneys.................................................................................. 35 ARTICLE XI INSURANCE POLICY PROVISIONS ............................................................ 37 Section 11.01. Insurer To Be Deemed Owner; Rights of the Insurer; Payments by the Insurer; Notices................................................................................ 37 Section 11.02. Deposits to Policy Payments Account; Payments Under the Insurance Policy .................................................................................... 40 Section 11.03. Reporting Requirements .......................................................................... 42 ARTICLE XII MISCELLANEOUS.......................................................................................... 44 Section 12.01. Benefits of Trust Agreement.................................................................... 44 Section 12.02. Successor Deemed Included in all References to Predecessor................ 44 Section 12.03. Execution of Documents by Owners ....................................................... 44 Section 12.04. Waiver of Personal Liability.................................................................... 44 Section 12.05. Acquisition of Certificates by City .......................................................... 44 Section 12.06. Content of Certificates............................................................................. 45 Section 12.07. Funds and Accounts................................................................................. 45 Section 12.08. Third-Party Beneficiary ........................................................................... 45 Section 12.09. Partial Invalidity....................................................................................... 45 Section 12.10. Notices ..................................................................................................... 46 Section 12.11. Electronic Signatures............................................................................... 47 Section 12.12. Governing Law ........................................................................................ 47
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Section 12.13. Execution in Counterparts........................................................................ 47 EXHIBIT A MASTER DEFINITIONS....................................................................................A-1 EXHIBIT B FORM OF CERTIFICATE.................................................................................. B-1
EXHIBIT C FORM OF WRITTEN REQUEST FOR DISBURSEMENTS FROM THE ACQUISITION FUND ................................................................................... C-1
EXHIBIT D FORM OF WRITTEN CERTIFICATE OF THE CITY REGARDING COMPLETION OF PROJECT .......................................................................D-1 4160-4945-2900.4
TRUST AGREEMENT
THIS TRUST AGREEMENT (this “Trust Agreement”), dated as of [________] 1, 2026, is by and among U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, as Trustee (the “Trustee”), the REDLANDS PUBLIC IMPROVEMENT CORPORATION, a nonprofit public benefit corporation organized and existing under the laws of the State of California (the “Corporation”), and the CITY OF REDLANDS, a municipal corporation and general law city organized and existing under the laws of the State of California (the “City”).
W I T N E S S E T H:
WHEREAS, the City desires to finance a portion of the costs of the construction, installation and acquisition of certain capital improvements constituting a city police facility and related improvements and a city fire station and related improvements and the acquisition and installation of certain heating, ventilation and air conditioning systems (collectively, the “Project”); and
WHEREAS, in order to finance the Project, the City will lease certain real property owned by the City and the improvements thereto (the “Property”) to the Corporation pursuant to a Ground Lease, dated as of the date hereof (the “Ground Lease”), and the City will sublease the Property back from the Corporation pursuant to a Lease Agreement, dated as of the date hereof (the “Lease Agreement”); and
WHEREAS, the City and the Corporation have determined that it would be in the best interests of the City and the Corporation to provide a portion of the funds necessary to finance the Project through the sale and delivery, pursuant to this Trust Agreement, of the City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities) (the “Certificates”) evidencing direct, fractional undivided interests in the base rental payments to be made by the City under the Lease Agreement; and
WHEREAS, all rights to receive such base rental payments have been assigned without recourse by the Corporation to the Trustee pursuant to an Assignment Agreement, dated as of the date hereof; and
WHEREAS, in consideration of such assignment and the execution of this Trust Agreement, the Trustee has agreed to execute and deliver the Certificates, each evidencing a direct, fractional undivided interest in such base rental payments; and WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Trust Agreement do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Trust Agreement;
NOW, THEREFORE, in consideration of the premises and of the mutual agreements and covenants contained herein and for other valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:
2 4160-4945-2900.4
ARTICLE I
DEFINITIONS; RULES OF CONSTRUCTION; EQUAL SECURITY
Section 1.01. Definitions. Certain terms are defined in Exhibit A attached hereto and by this reference incorporated herein. Unless the context otherwise requires, the terms defined in Exhibit A hereto shall, for all purposes hereof and of any certificate, opinion or other document mentioned herein or therein, have the meanings herein specified.
Section 1.02. Rules of Construction. (a) The terms defined herein expressed in the singular shall, unless the context otherwise indicates, include the plural and vice versa. (b) The use herein of the masculine, feminine or neuter gender is for convenience only and shall be deemed and construed to include correlative words of the masculine, feminine or neuter gender, as appropriate.
(c) References herein to a document shall include all amendments, supplements or other modifications to such document, and any replacements, substitutions or novation of, that document.
(d) Any term defined herein by reference to another document shall continue to have the meaning ascribed thereto whether or not such other document remains in effect. (e) The use herein of the words “including” and “includes,” and words of similar import, shall be deemed to be followed by the phrase “without limitation.” (f) Headings of Articles and Sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof.
(g) All references herein to designated “Articles,” “Sections,” “Exhibits,” “subsections,” “paragraphs,” “clauses,” and other subdivisions are to the designated Articles, Sections, Exhibits, subsections, paragraphs, clauses, and other subdivisions of this Trust Agreement.
(h) The words “hereof” (except when preceded by a specific Section or Article reference), “herein,” “hereby,” “hereunder,” “hereinabove,” “hereinafter,” and other equivalent words and phrases used herein refer to this Trust Agreement and not solely to the particular portion hereof in which any such word is used.
(i) Any reference to a Person, or a Person in a specified capacity, shall be construed to include such Person’s successors or such Person’s successors in such capacity, as the case may be.
Section 1.03. Equal Security. In consideration of the acceptance of the Certificates by the Owners, this Trust Agreement shall be deemed to be and shall constitute a contract between the Trustee and the Owners to secure the full and final payment of the interest and principal evidenced by the Certificates that may be executed and delivered hereunder, subject to each of the agreements, conditions, covenants and terms contained herein; and all agreements, conditions, 3 4160-4945-2900.4
covenants and terms contained herein required to be observed or performed by or on behalf of the Trustee shall be for the equal and proportionate benefit, protection and security of all Owners without distinction, preference or priority as to security or otherwise of any Certificate over any other Certificate by reason of the number or date thereof or the time of execution or delivery thereof or for any cause whatsoever, except as expressly provided herein or therein. 4 4160-4945-2900.4
ARTICLE II
TERMS AND CONDITIONS OF CERTIFICATES
Section 2.01. Preparation and Delivery of Certificates. The Trustee is hereby authorized and directed to prepare the Certificates and, upon the Written Request of the City, shall execute and deliver the Certificates in the aggregate amount of $[PAR AMOUNT] evidencing the aggregate principal components of the Base Rental Payments and each evidencing a direct, fractional undivided interest in the Base Rental Payments. The Certificates shall be numbered, with or without prefixes, as directed by the Trustee. The Trustee is hereby authorized to deliver the Certificates to the Purchaser pursuant to the Certificate Purchase Agreement upon receipt of a Written Request of the City and upon receipt of the proceeds of sale thereof.
Section 2.02. Denomination, Medium and Dating of Certificates. The Certificates shall be designated “City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities),” shall be prepared in the form of fully registered Certificates, without coupons, in Authorized Denominations and shall be payable in lawful money of the United States of America.
The Certificates shall be dated the Delivery Date. Each Certificate shall evidence interest from the Interest Payment Date next preceding its date of execution to which interest has been paid in full, unless such date of execution shall be after a Record Date and on or prior to the following Interest Payment Date, in which case such Certificate shall evidence interest from such Interest Payment Date, or unless such date of execution shall be on or prior to October 15, 2026, in which case such Certificate shall represent interest from the Delivery Date. Notwithstanding the foregoing, if, as shown by the records of the Trustee, interest evidenced by the Certificates shall be in default, each Certificate shall evidence interest from the last Interest Payment Date to which such interest has been paid in full or duly provided for.
Section 2.03. Payment Dates of Certificates; Interest Computation. Method and Place of Payment. (a) The principal evidenced by the Certificates shall become due and payable, subject to prior prepayment, on May 1 of the years, in the amounts, and shall accrue interest at the rates per annum set forth below, computed on the basis of a 360-day year consisting of twelve 30-day months:
Principal Payment Date
(May 1,)
Principal
Component
Interest
Rate
Except as otherwise provided in the Letter of Representations, payments of interest evidenced by the Certificates shall be made to the Owners thereof, as determined at the close of business on the Record Date next preceding the related Interest Payment Date, by check or draft 5 4160-4945-2900.4
of the Trustee mailed to the address of each such Owner as it appears on the Registration Books, or to such other address as may be furnished in writing to the Trustee by each such Owner. Except as otherwise provided in the Letter of Representations, payment of principal and prepayment premium, if any, evidenced by the Certificates, on their stated Principal Payment Dates or on prepayment in whole or in part prior thereto, shall be made only upon presentation and surrender of the Certificates at the Principal Office of the Trustee. (b) Computation of Interest. The interest evidenced by the Certificates shall be payable on each Interest Payment Date to and including their respective Principal Payment Dates or prepayment prior thereto, and shall represent the sum of the portions of the Base Rental Payments evidenced thereby designated as interest components coming due on the Interest Payment Dates in each year. The principal evidenced by the Certificates shall be payable on their respective Principal Payment Dates and Mandatory Sinking Account Payment Dates in each year and shall represent the sum of the portions of the Base Rental Payments designated as principal components coming due on the Principal Payment Dates and Mandatory Sinking Account Payment Dates in each year.
Section 2.04. Form of Certificates. The Certificates shall be in substantially the form of Exhibit B hereto, with necessary or appropriate insertions, omissions and variations as permitted or required hereby.
Section 2.05. Execution of Certificates. The Certificates shall be executed by the Trustee by the manual signature of an authorized signatory of the Trustee.
Section 2.06. Registration Books. (a) The Trustee shall keep at its Principal Office sufficient books for the registration and transfer of the Certificates, which books shall be available for inspection and copying by the City and the Insurer at reasonable hours and under reasonable conditions; and upon presentation for such purpose the Trustee shall, under such reasonable regulations as it may prescribe, register or transfer the Certificates on such books as hereinabove provided.
(b) The Trustee may treat the Owner of any Certificate as the absolute owner of such Certificate for all purposes, whether or not the principal or interest evidenced by such Certificate shall be overdue, and the Trustee shall not be affected by any knowledge or notice to the contrary; and payment of the interest and principal evidenced by such Certificate shall be made only to such Owner, which payments shall be valid and effectual to satisfy and discharge the liability evidenced by such Certificate to the extent of the sum or sums so paid.
Section 2.07. Transfer and Payment of Certificates; Exchange of Certificates. (a) Each Certificate is transferable by the Owner thereof, in person or by such Owner’s attorney duly authorized in writing, at the Principal Office of the Trustee, upon surrender of such Certificate for cancellation accompanied by delivery of a duly executed written instrument of transfer in a form approved by the Trustee.
(b) Whenever any Certificate shall be surrendered for transfer, the Trustee shall execute and deliver a new Certificate or Certificates evidencing principal in the same aggregate amount and having the same stated Principal Payment Date. The Trustee shall require the payment 6 4160-4945-2900.4
by any Owner requesting such transfer of any tax or other governmental charge required to be paid with respect to such transfer.
(c) Each Certificate may be exchanged at the Principal Office of the Trustee for Certificates evidencing principal in a like aggregate amount and having the same stated Principal Payment Date in such Authorized Denominations as the Owner thereof may request. The Trustee shall require the payment by the Owner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange. (d) The Trustee shall not be required to transfer or exchange any Certificate during the period commencing on the date five days before the date of selection of Certificates for prepayment and ending on the date of mailing notice of such prepayment, nor shall the Trustee be required to transfer or exchange any Certificate or portion thereof selected for prepayment from and after the date of mailing the notice of prepayment thereof.
Section 2.08. Book-Entry System. (a) The Certificates shall initially be executed and delivered as Book-Entry Certificates and the Certificates for each stated Principal Payment Date shall be in the form of a separate single fully registered Certificate (which may be typewritten).
The ownership of each Book-Entry Certificate shall be registered in the Registration Books in the name of the Nominee, as nominee of the Depository. Payment of principal or interest evidenced by any Book-Entry Certificate registered in the name of the Nominee shall be made on the applicable payment date by wire transfer of New York clearing house or equivalent next day funds or by wire transfer of same day funds to the account of the Nominee. Such payments shall be made to the Nominee at the address that is, on the Record Date, shown for the Nominee in the Registration Books.
(b) With respect to Book-Entry Certificates, the City, the Corporation and the Trustee shall have no responsibility or obligation to any Participant or to any person on behalf of which such a Participant holds an interest in such Book-Entry Certificates. Without limiting the immediately preceding sentence, the City, the Corporation and the Trustee shall have no responsibility or obligation with respect to (i) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in Book-Entry Certificates, (ii) the delivery to any Participant or any other person, other than an Owner as shown in the Registration Books, of any notice with respect to Book-Entry Certificates, including any notice of prepayment, (iii) the selection by the Depository and its Participants of the beneficial interests in Book-Entry Certificates to be prepaid in the event Certificates are prepaid in part, (iv) the payment to any Participant or any other person, other than an Owner as shown in the Registration Books, of any amount with respect to principal, premium, if any, or interest evidenced by Book-Entry Certificates, or (v) any consent given or other action taken by the Depository as Owner. (c) The City and the Trustee may treat and consider the person in whose name each Book-Entry Certificate is registered in the Registration Books as the absolute Owner of such BookEntry Certificate for the purpose of payment of principal, prepayment premium, if any, and interest evidenced by such Certificate, for the purpose of selecting any Certificates, or portions thereof, to be prepaid, for the purpose of giving notices of prepayment and other matters with respect to such Certificate, for the purpose of registering transfers with respect to such Certificate, for the purpose of obtaining any consent or other action to be taken by Owners and for all other purposes 7 4160-4945-2900.4
whatsoever, and the City, the Corporation and the Trustee shall not be affected by any notice to the contrary.
(d) In the event of a prepayment of all or a portion of a Certificate, the Depository, in its discretion (i) may request the Trustee to execute and deliver a new Certificate, or (ii) if DTC is the sole Owner of such Certificate, shall make an appropriate notation on the Certificate indicating the date and amounts of the reduction in principal evidenced thereby resulting from such prepayment, except in the case of final payment, in which case such Certificate must be presented to the Trustee prior to payment.
(e) The Trustee shall pay all principal, premium, if any, and interest evidenced by the Certificates only to or “upon the order of” (as that term is used in the Uniform Commercial Code as adopted in the State of California) the respective Owner, as shown in the Registration Books, or such Owner’s respective attorney duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the obligations with respect to payment of principal, premium, if any, and interest evidenced by the Certificates to the extent of the sum or sums so paid. No person other than an Owner, as shown in the Registration Books, shall receive a Certificate evidencing principal, premium, if any, and interest evidenced by the Certificates. Upon delivery by the Depository to the Owners, the Trustee and the City of written notice to the effect that the Depository has determined to substitute a new nominee in place of the Nominee, and subject to the provisions herein with respect to Record Dates, the word Nominee in this Trust Agreement shall refer to such nominee of the Depository. (f) In order to qualify the Book-Entry Certificates for the Depository’s book-entry system, the City shall execute and deliver to the Depository a Letter of Representations. The execution and delivery of a Letter of Representations shall not in any way impose upon the Corporation, the City or the Trustee any obligation whatsoever with respect to persons having interests in such Book-Entry Certificates other than the Owners, as shown on the Registration Books. Such Letter of Representations may provide the time, form, content and manner of transmission, of notices to the Depository. In addition to the execution and delivery of a Letter of Representations by the City, the City, the Corporation and the Trustee shall take such other actions, not inconsistent with this Trust Agreement, as are reasonably necessary to qualify Book-Entry Certificates for the Depository’s book-entry program.
(g) In the event the City determines that it is in the best interests of the Beneficial Owners that they be able to obtain certificated Certificates and that such Certificates should therefore be made available and notifies the Depository and the Trustee of such determination, the Depository shall notify the Participants of the availability through the Depository of certificated Certificates. In such event, the Trustee shall transfer and exchange certificated Certificates as requested by the Depository and any other Owners in appropriate amounts. In the event (i) the Depository determines not to continue to act as securities depository for Book-Entry Certificates, or (ii) the Depository shall no longer so act and gives notice to the Trustee of such determination, then the City shall discontinue the Book-Entry system with the Depository. If the City determines to replace the Depository with another qualified securities depository, the City shall prepare or direct the preparation of a new single, separate, fully registered Certificate for each stated Principal Payment Date of such Book-Entry Certificates, registered in the name of such successor or substitute qualified securities depository or its nominee. If the City fails to identify another 8 4160-4945-2900.4
qualified securities depository to replace the Depository, then the Certificates shall no longer be restricted to being registered in the Registration Books in the name of the Nominee, but shall be registered in whatever name or names the Owners transferring or exchanging such Certificates shall designate, in accordance with the provisions of Sections 2.06 and 2.07 hereof. Whenever the Depository requests the City to do so, the City shall cooperate with the Depository in taking appropriate action after reasonable notice (i) to make available one or more separate certificates evidencing the Book-Entry Certificates to any Participant having Book-Entry Certificates credited to its account with the Depository, and (ii) to arrange for another securities depository to maintain custody of certificates evidencing the Book-Entry Certificates. (h) Notwithstanding any other provision of this Trust Agreement to the contrary, if DTC is the sole Owner of the Certificates, so long as any Book-Entry Certificate is registered in the Registration Books in the name of the Nominee, all payments of principal, premium, if any, and interest evidenced by such Certificate and all notices with respect to such Certificate shall be made and given, respectively, as provided in the Letter of Representations or as otherwise instructed by the Depository.
(i) In connection with any notice or other communication to be provided to Owners pursuant to this Trust Agreement by the City, the Corporation or the Trustee, with respect to any consent or other action to be taken by Owners, the Trustee shall establish a record date for such consent or other action and give the Depository notice of such record date no later than 15 calendar days in advance of such record date to the extent possible. Notice to the Depository shall be given only when DTC is the sole Owner of the Certificates.
Section 2.09. Temporary Certificates. The Certificates may be initially delivered in temporary form exchangeable for definitive Certificates when ready for delivery, which temporary Certificates shall be printed, lithographed or typewritten, shall be of such denominations as may be determined by the Trustee, shall be in fully registered form and shall contain such reference to any of the provisions hereof as may be appropriate. Every temporary Certificate shall be executed and delivered by the Trustee upon the same conditions and terms and in substantially the same manner as definitive Certificates. If the Trustee executes and delivers temporary Certificates, it shall prepare and execute definitive Certificates without delay, and thereupon the temporary Certificates may be surrendered at the Principal Office of the Trustee in exchange for such definitive Certificates, and until so exchanged such temporary Certificates shall be entitled to the same benefits hereunder as definitive Certificates executed and delivered hereunder.
Section 2.10. Certificates Mutilated, Lost, Destroyed or Stolen. If any Certificate shall become mutilated, the Trustee, at the expense of the Owner thereof, shall execute and deliver a new Certificate evidencing a like principal amount and having the same stated Principal Payment Date and number in exchange and substitution for the Certificate so mutilated, but only upon surrender to the Trustee of the Certificate so mutilated. Every mutilated Certificate so surrendered to the Trustee shall be canceled by it and disposed of in a manner deemed appropriate by the Trustee. If any Certificate shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Trustee, and if such evidence is satisfactory to the Trustee and indemnity satisfactory to the Trustee shall be given, the Trustee, at the expense of the Owner thereof, shall execute and deliver a new Certificate evidencing a like principal amount and having the same stated Principal Payment Date, numbered as the Trustee shall determine, in lieu of and 9 4160-4945-2900.4
in substitution for the Certificate so lost, destroyed or stolen. The Trustee may require payment of a sum not exceeding the actual cost of preparing each new Certificate executed and delivered by it under this Section and of the expenses that may be incurred by it under this Section. Any Certificate executed and delivered under the provisions of this Section in lieu of any Certificate alleged to be lost, destroyed or stolen shall be equally and proportionately entitled to the benefits hereof with all other Certificates executed and delivered hereunder, and the Trustee shall not be required to treat both the original Certificate and any replacement Certificate as being Outstanding for the purpose of determining the amount of Certificates that may be executed and delivered hereunder or for the purpose of determining any percentage of Certificates Outstanding hereunder, but both the original and replacement Certificate shall be treated as one and the same.
Notwithstanding any other provision of this Section, in lieu of executing and delivering a new Certificate for a Certificate that has been lost, destroyed or stolen and that evidences principal that is then payable, the Trustee may make payment of such Certificate to the Owner thereof if so instructed by the City.
10 4160-4945-2900.4
ARTICLE III
PROCEEDS OF CERTIFICATES
Section 3.01. Delivery of Certificates. The Trustee shall execute the Certificates and deliver the Certificates to the Purchaser upon receipt of a Written Request of the City and upon receipt of the proceeds of sale thereof in the amount specified in Section 3.02.
Section 3.02. Proceeds of Certificates. The proceeds of the Certificates shall be used by the Corporation to pay the City the rental payment due under the Ground Lease. The City hereby directs the Corporation to make such payment to the Trustee. The proceeds of the sale of the Certificates so received by the Trustee, $__________ (which constitutes the purchase price of the Certificates less the premium for the Insurance Policy ($__________) to be wired directly to the Insurer by the Purchaser), shall be deposited by the Trustee as follows:
(a) the Trustee shall deposit in the Capitalized Interest Account within the Interest Fund established pursuant to Section 5.02 hereof the amount of $__________; (b) the Trustee shall deposit in the Costs of Issuance Fund established pursuant to Section 3.03 hereof the amount of $__________; and
(c) the Trustee shall deposit in the Acquisition Fund established pursuant to Section 3.04 hereof the amount of $__________.
The Trustee may establish and use temporary funds or accounts in its records to facilitate and record such deposit and transfer.
Section 3.03. Costs of Issuance Fund. (a) The Trustee shall establish and maintain a separate special fund to be held by the Trustee designated the “Costs of Issuance Fund.” On the Delivery Date, there shall be deposited in the Costs of Issuance Fund the amount required to be deposited therein pursuant to Section 3.02 hereof.
(b) The Trustee shall disburse moneys from the Costs of Issuance Fund on such dates and in such amounts as are necessary to pay Costs of Issuance, in each case upon the Written Request of the City, stating the person to whom payment is to be made, the amount to be paid, the purpose for which the obligation was incurred and that such payment is a proper charge against the Costs of Issuance Fund. On the last Business Day that is no later than six months after the Delivery Date, the Trustee shall transfer any amounts then remaining in the Costs of Issuance Fund to the Base Rental Payment Fund and the Trustee shall close the Costs of Issuance Fund.
Section 3.04. Acquisition Fund. (a) The Trustee shall establish and maintain a separate fund to be held by the Trustee designated the “Acquisition Fund.” On the Delivery Date, there shall be deposited in the Acquisition Fund the amount required to be deposited therein pursuant to Section 3.02 hereof. All moneys in the Acquisition Fund shall be held by the Trustee in trust and applied by the Trustee, as provided in this Section, to the payment of Acquisition Costs. (b) Upon receipt by the Trustee of a Written Request of the City requesting the Trustee to make a payment from the Acquisition Fund, which Written Request shall be in substantially the 11 4160-4945-2900.4
form of Exhibit C hereto, the Trustee shall pay the amount set forth in such Written Request as directed by the terms thereof.
(c) Upon the filing of a Written Certificate of the City stating (i) that the Project has been completed and that all costs of the Project have been paid, or (ii) that the Project has been substantially completed and that all remaining costs of the Project to be paid from the Acquisition Fund have been determined and specifying the amount to be retained therefor, which Written Certificate shall be in substantially the form of Exhibit D hereto, the Trustee shall (A) if the amount remaining in the Acquisition Fund (less any such retention) is equal to or greater than $50,000, transfer the portion of such amount equal to the largest integral multiple of $5,000 that is not greater than such amount to the Prepayment Fund, to be applied to the prepayment of Certificates pursuant to Section 4.01(b) hereof, and (B) after making the transfer, if any, required to be made pursuant to the preceding clause (A), transfer all of the amount remaining in the Acquisition Fund (less any such retention) to the Base Rental Payment Fund, to be applied to the payment of interest evidenced by the Certificates.
12 4160-4945-2900.4
ARTICLE IV
PREPAYMENT OF CERTIFICATES
Section 4.01. Terms of Prepayment. (a) Extraordinary Prepayment. The Certificates are subject to prepayment prior to their stated Principal Payment Dates, on any date, in whole or in part, in Authorized Denominations, from and to the extent of any Net Proceeds received with respect to all or a portion of the Property, deposited by the Trustee in the Prepayment Fund pursuant to Sections 5.03 and 5.04 hereof, at a prepayment price equal to the principal evidenced by the Certificates to be prepaid, plus unpaid accrued interest, if any, evidenced thereby to the date fixed for prepayment, without premium.
(b) Optional Prepayment. The Certificates maturing on or after May 1, 20[__] are subject to optional prepayment prior to their respective stated Principal Payment Dates, on any date on or after May 1, 20[__], in whole or in part, in Authorized Denominations, from and to the extent of prepaid Base Rental Payments paid pursuant to subsection (a) of Section 3.07 of the Lease Agreement, any such prepayment to be at a price equal to the principal evidenced by the Certificates to be prepaid, plus unpaid accrued interest evidenced thereby to the date fixed for prepayment, without premium.
(c) Mandatory Sinking Account Prepayment. The Certificates with a stated Principal Payment Date of May 1, 20[__] are subject to prepayment prior to such stated Principal Payment Date, in part, from Mandatory Sinking Account Payments, on each May 1 specified below, at a prepayment price equal to the principal evidenced thereby, plus accrued interest evidenced thereby to the date fixed for prepayment, without premium. The principal evidenced by such Certificates to be so prepaid and the dates therefor shall be as follows:
Prepayment Date
(May 1,)
Principal
To Be Prepaid
$ *
_________________
*Stated Principal Payment Date
If some but not all of the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] is prepaid pursuant to subsection (a) of Section 4.01 hereof, the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] to be prepaid pursuant to subsection (c) of Section 4.01 hereof on any subsequent May 1 shall be reduced by the aggregate principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] so prepaid pursuant to subsection (a) of Section 4.01 hereof, such reduction to be allocated among prepayment dates in proportion to the amount by which the principal components of the Base Rental Payments evidenced by such Certificates payable on such prepayment dates are abated pursuant to Section 3.06 of the Lease Agreement as a result of the event that caused such Certificates to be prepaid pursuant to subsection (a) of Section 4.01 hereof in amounts of Authorized Denominations. If some but not all of the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] is prepaid pursuant to 13 4160-4945-2900.4
subsection (b) of Section 4.01 hereof, the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] to be prepaid pursuant to subsection (c) of Section 4.01 hereof on any subsequent May 1 shall be reduced by the aggregate principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] so prepaid pursuant to subsection (b) of Section 4.01 hereof, such reduction to be allocated among prepayment dates in amounts of Authorized Denominations to correspond to the prepaid Base Rental Payments elected by the City pursuant to Section 3.07 of the Lease Agreement.
The Certificates with a stated Principal Payment Date of May 1, 20[__] are subject to prepayment prior to such stated Principal Payment Date, in part, from Mandatory Sinking Account Payments, on each May 1 specified below, at a prepayment price equal to the principal evidenced thereby, plus accrued interest evidenced thereby to the date fixed for prepayment, without premium. The principal evidenced by such Certificates to be so prepaid and the dates therefor shall be as follows:
Prepayment Date
(May 1,)
Principal
To Be Prepaid
$ *
_________________
*Stated Principal Payment Date
If some but not all of the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] is prepaid pursuant to subsection (a) of Section 4.01 hereof, the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] to be prepaid pursuant to subsection (c) of Section 4.01 hereof on any subsequent May 1 shall be reduced by the aggregate principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] so prepaid pursuant to subsection (a) of Section 4.01 hereof, such reduction to be allocated among prepayment dates in proportion to the amount by which the principal components of the Base Rental Payments evidenced by such Certificates payable on such prepayment dates are abated pursuant to Section 3.06 of the Lease Agreement as a result of the event that caused such Certificates to be prepaid pursuant to subsection (a) of Section 4.01 hereof in amounts of Authorized Denominations. If some but not all of the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] is prepaid pursuant to subsection (b) of Section 4.01 hereof, the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] to be prepaid pursuant to subsection (c) of Section 4.01 hereof on any subsequent May 1 shall be reduced by the aggregate principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] so prepaid pursuant to subsection (b) of Section 4.01 hereof, such reduction to be allocated among prepayment dates in amounts of Authorized Denominations to correspond to the prepaid Base Rental Payments elected by the City pursuant to Section 3.07 of the Lease Agreement.
Section 4.02. Selection of Certificates for Prepayment. Whenever less than all the Outstanding Certificates are to be prepaid on any one date, the Trustee shall select the Certificates to be prepaid (a) with respect to any prepayment pursuant to subsection (a) of Section 4.01 hereof, among Certificates with different stated Principal Payment Dates in proportion to the amount by 14 4160-4945-2900.4
which the principal components of the Base Rental Payments evidenced by such Certificates are abated pursuant to Section 3.06 of the Lease Agreement, and (b) with respect to any prepayment pursuant to subsection (b) of Section 4.01 hereof, as directed in a Written Request of the City, and by lot among Certificates with the same stated Principal Payment Date in any manner that the Trustee deems fair and appropriate, which decision shall be final and binding upon the City and the Owners. The Trustee shall promptly notify the City in writing of the numbers of the Certificates so selected for prepayment on such date. For purposes of such selection, any Certificate may be prepaid in part in Authorized Denominations.
Section 4.03. Notice of Prepayment. (a) The Trustee shall mail (by first class mail) notice of any prepayment to the respective Owners of any Certificates designated for prepayment at their respective addresses appearing on the Registration Books at least 30 but not more than 60 days prior to the date fixed for prepayment. Such notice shall state the date of the notice, the prepayment date, the prepayment place and the prepayment price and shall designate the CUSIP numbers, if any, the Certificate numbers and the stated Principal Payment Date or Principal Payment Dates of the Certificates to be prepaid (except in the event of prepayment of all of the Certificates in whole), and shall require that such Certificates be then surrendered at the Principal Office of the Trustee for prepayment at the prepayment price, giving notice also that further interest evidenced by such Certificates will not accrue from and after the date fixed for prepayment.
Neither the failure to receive any notice so mailed, nor any defect in such notice, shall affect the validity of the proceedings for the prepayment of the Certificates or the cessation of accrual of interest evidenced thereby from and after the date fixed for prepayment. (b) With respect to any notice of any optional prepayment of Certificates, unless at the time such notice is given the Certificates to be prepaid shall be deemed to have been paid within the meaning of Section 10.02 hereof, such notice shall state that such prepayment is conditional upon receipt by the Trustee, on or prior to the date fixed for such prepayment, of moneys that, together with other available amounts held by the Trustee, are sufficient to pay the prepayment price of, and accrued interest evidenced by, the Certificates to be prepaid, and that if such moneys shall not have been so received said notice shall be of no force and effect and such Certificates shall not be required to be prepaid. In the event a notice of prepayment of Certificates contains such a condition and such moneys are not so received, the prepayment of Certificates as described in the conditional notice of prepayment shall not be made and the Trustee shall, within a reasonable time after the date on which such prepayment was to occur, give notice to the Persons and in the manner in which the notice of prepayment was given, that such moneys were not so received and that there shall be no prepayment of Certificates pursuant to such notice of prepayment.
Section 4.04. Partial Prepayment of Certificates. Upon surrender of any Certificate prepaid in part only, the Trustee shall execute and deliver to the Owner thereof a new Certificate or Certificates evidencing the unprepaid principal with respect to the Certificate surrendered.
Section 4.05. Effect of Prepayment. If notice of prepayment has been duly given as aforesaid and moneys for the payment of the prepayment price of the Certificates to be prepaid are held by the Trustee, then on the prepayment date designated in such notice, the Certificates so called for prepayment shall become payable at the prepayment price specified in such notice; and from and after the date so designated, interest evidenced by the Certificates so called for prepayment shall cease to accrue, such Certificates shall cease to be entitled to any benefit or 15 4160-4945-2900.4
security hereunder and the Owners of such Certificates shall have no rights in respect thereof except to receive payment of the prepayment price thereof, and such moneys shall be pledged to such prepayment. The Trustee shall, upon surrender for payment of any of the Certificates to be prepaid, pay such Certificates at the prepayment price thereof.
All Certificates prepaid pursuant to the provisions of this Article shall be canceled by the Trustee and shall not be redelivered.
16 4160-4945-2900.4
ARTICLE V
FUNDS AND ACCOUNTS; RENTAL PAYMENTS
Section 5.01. Pledge; Base Rental Payment Fund. (a) Subject only to the provisions of this Trust Agreement permitting the application thereof for the purposes and on the terms and conditions set forth herein, in order to secure the City’s obligations hereunder and under the Lease Agreement, the City hereby irrevocably pledges to the Owners, and grants a lien on and a security interest in, all of its right, title and interest, if any, in and to all amounts on deposit from time to time in the funds and accounts established hereunder (other than the Rebate Fund), which amounts shall be used for the payment of the Base Rental Payments in accordance with the terms hereof and of the Lease Agreement. Said pledge shall constitute a first lien on and security interest in such assets, which shall immediately attach to such assets and be effective, binding and enforceable against the City, its successors, purchasers of any of such assets, creditors and all others asserting rights therein, to the extent set forth in, and in accordance with, this Trust Agreement, irrespective of whether those parties have notice of the pledge of, lien on and security interest in such assets and without the need for any physical delivery, recordation, filing or further act. (b) It is the intent of the parties hereto that the Corporation not have any right, title or interest in or to the amounts on deposit from time to time in the funds and accounts established hereunder. If, contrary to the intent of the parties hereto, the Corporation is found to have any right, title or interest in or to any such amounts, then, subject only to the provisions of this Trust Agreement permitting the application thereof for the purposes and on the terms and conditions set forth herein, the Corporation hereby irrevocably pledges to the Owners, and grants a lien on and a security interest in, all of its right, title and interest, if any, in and to all amounts on deposit from time to time in the funds and accounts established hereunder (other than the Rebate Fund). Said pledge shall constitute a first lien on and security interest in such assets, which shall immediately attach to such assets and be effective, binding and enforceable against the Corporation, its successors, purchasers of any of such assets, creditors and all others asserting rights therein, to the extent set forth in, and in accordance with, this Trust Agreement, irrespective of whether those parties have notice of the pledge of, lien on and security interest in such assets and without the need for any physical delivery, recordation, filing or further act. (c) All Base Rental Payments shall be paid directly by the City to the Trustee, and if received by the Corporation at any time shall be deposited by the Corporation with the Trustee within one Business Day after the receipt thereof. All Base Rental Payments paid by the City shall be deposited by the Trustee in the Base Rental Payment Fund, which the Trustee shall establish and maintain until all required Base Rental Payments are paid in full pursuant to the Lease Agreement and until the first date upon which the Certificates are no longer Outstanding. The moneys in the Base Rental Payment Fund shall be held in trust by the Trustee and shall be disbursed only for the purposes and uses herein authorized. Any Net Proceeds of rental interruption insurance received with respect to the Property shall be deposited in the Base Rental Payment Fund.
(d) Pursuant to the Assignment Agreement, the Corporation has sold, assigned and transferred to the Trustee, irrevocably and absolutely, for the benefit of the Owners, substantially all of its right, title and interest in and to the Ground Lease and the Lease Agreement, including its 17 4160-4945-2900.4
right to receive Base Rental Payments to be paid by the City under and pursuant to the Lease Agreement; provided, however, that the Corporation has retained the rights to indemnifications and to payment or reimbursement of its reasonable costs and expenses under the Lease Agreement.
The Corporation shall not have any obligation or liability to the Owners with respect to the payment when due of the Base Rental Payments by the City, or with respect to the performance by the City of the other agreements and covenants required to be performed by it contained in the Ground Lease, the Lease Agreement or herein, or with respect to the performance by the Trustee of any right or obligation required to be performed by it contained herein.
Section 5.02. Deposit of Base Rental Payments. The Trustee shall transfer the amounts on deposit in the Base Rental Payment Fund, at the times and in the manner hereinafter provided, to the following respective funds, each of which the Trustee hereby agrees to establish and maintain until all required Base Rental Payments are paid in full pursuant to the Lease Agreement and until the first date upon which the Certificates are no longer Outstanding. The Trustee shall establish and maintain the Capitalized Interest Account within the Interest Fund until the date all amounts are transferred therefrom in accordance with subsection (a) of this Section. The moneys in each of such funds and account shall be held in trust by the Trustee and shall be disbursed only for the purposes and uses herein authorized.
(a) Interest Fund and Capitalized Interest Account. The Trustee, on each Interest Payment Date, shall deposit in the Interest Fund that amount of moneys representing the portion of the Base Rental Payments designated as the interest component coming due on such Interest Payment Date; provided, however, that on each Interest Payment Date occurring on or prior to November 1, 2028, prior to making said deposit, if and to the extent available in the Capitalized Interest Account within the Interest Fund, an amount equal to the interest component coming due on such Interest Payment Date shall be transferred from the Capitalized Interest Account within the Interest Fund to the Interest Fund. On November 1, 2028, the Trustee shall transfer any amounts then remaining in the Capitalized Interest Account to the Interest Fund. On each Interest Payment Date, the Trustee shall withdraw from the Interest Fund, for payment to the Owners, the interest evidenced by the Certificates coming due on such Interest Payment Date. (b) Principal Fund. The Trustee, on each Principal Payment Date and each Mandatory Sinking Account Payment Date, shall deposit in the Principal Fund that amount of moneys representing the portion of the Base Rental Payments designated as the principal component coming due on such Principal Payment Date or Mandatory Sinking Account Payment Date . On each Principal Payment Date or each Mandatory Sinking Account Payment Date, the Trustee shall withdraw from the Principal Fund, for payment to the Owners, the principal evidenced by the Certificates due and payable on such Principal Payment Date or Mandatory Sinking Account Payment Date.
(c) Prepayment Fund. The Trustee, on the prepayment date specified in the Written Request of the City filed with the Trustee at the time that any prepaid Base Rental Payment is paid to the Trustee pursuant to the Lease Agreement, shall deposit in the Prepayment Fund that amount of moneys representing the portion of the Base Rental Payments designated as prepaid Base Rental Payments. Additionally, the Trustee shall deposit in the Prepayment Fund any amounts required to be deposited therein pursuant to Section 3.04, Section 5.03 or Section 5.04 hereof. Moneys in the Prepayment Fund shall be used by the Trustee for the purpose of paying the interest, premium, 18 4160-4945-2900.4
if any, and principal evidenced by the Certificates to be prepaid. All moneys held by the Trustee in the Prepayment Fund shall either be held uninvested or invested in Defeasance Securities that mature in sufficient amounts and on the dates needed to make the prepayments of Certificates for which such moneys were deposited.
Section 5.03. Application of Net Proceeds. If the Property or any portion thereof shall be damaged or destroyed, subject to the further requirements of this Section, the City shall, as expeditiously as possible, continuously and diligently prosecute or cause to be prosecuted the repair or replacement thereof, unless the City elects not to repair or replace the Property or the affected portion thereof in accordance with the provisions hereof.
The Net Proceeds of any insurance (other than Net Proceeds of rental interruption insurance), including the proceeds of any self-insurance, received on account of any damage or destruction of the Property or a portion thereof shall as soon as possible be deposited with the Trustee and be held by the Trustee in a special account to be established by the Trustee, as an account subject to the provisions of this Trust Agreement, and made available for and, to the extent necessary, shall be applied to the cost of repair or replacement of the Property or the affected portion thereof upon receipt of a Written Request of the City, together with invoices therefor.
Pending such application, such proceeds may be invested by the Trustee as directed by the City in Permitted Investments that mature not later than such times as moneys are expected to be needed to pay such costs of repair or replacement.
Notwithstanding the foregoing, the City shall, within 60 days of the occurrence of the event of damage or destruction, notify the Trustee and the Insurer in writing as to whether the City intends to replace or repair the Property or the portions of the Property that were damaged or destroyed. If the City does intend to replace or repair the Property or portions thereof, the City shall deposit with the Trustee the full amount of any insurance deductible to be deposited to the special account.
If such damage, destruction or loss was such that there resulted a substantial interference with the City’s right to the use or occupancy of the Property and an abatement in whole or in part of Rental Payments would result from such damage or destruction pursuant to Section 3.06 of the Lease Agreement (disregarding, for the purpose of determining whether such an abatement would result, the provisions of subsection (b) of Section 3.06 of the Lease Agreement), then the City shall be required either to (a) apply sufficient funds from the insurance proceeds and other legally available funds to the replacement or repair of the Property or the portions thereof that have been damaged to the condition that existed prior to such damage or destruction, or (b) apply sufficient funds from the insurance proceeds and other legally available funds to the prepayment, as set forth in subsection (a) of Section 4.01 hereof, in full of all the Outstanding Certificates or all of those Outstanding Certificates that would have been payable from that portion of the Base Rental Payments that would be abated as a result of the damage or destruction (disregarding, for the purpose of determining what portion of the Base Rental Payments would be so abated, the provisions of subsection (b) of Section 3.06 of the Lease Agreement). Funds to be applied to the prepayment of Certificates in accordance with clause (b) above shall be deposited in the Prepayment Fund. Any proceeds of any insurance, including the proceeds of any self-insurance remaining after the portion of the Property that was damaged or destroyed is restored to and made available to the City in substantially the same condition and annual fair rental value as that which 19 4160-4945-2900.4
existed prior to the damage or destruction as required by clause (a) above or the prepayment of Certificates as required by clause (b) above, in each case as evidenced by a Written Certificate of the City to such effect, shall be paid to the City to be used for any lawful purpose. If the City is not required to replace or repair the Property, or the affected portion thereof, as set forth in clause (a) above or to use such amounts to prepay Certificates as set forth in clause (b) above, then such proceeds shall, if there is first delivered to the Trustee and the Insurer a Written Certificate of the City to the effect that the annual fair rental value of the Property after such damage or destruction, and after any repairs or replacements made as a result of such damage or destruction, is at least equal to 100% of the maximum amount of Base Rental Payments becoming due under the Lease Agreement in the then current Rental Period or any subsequent Rental Period and the fair replacement value of the Property after such damage or destruction is at least equal to the sum of the then unpaid principal components of Base Rental Payments, be paid to the City to be used for any lawful purpose.
The proceeds of any award in eminent domain with respect to the Property shall be deposited by the Trustee in the Prepayment Fund and applied to the prepayment of Outstanding Certificates pursuant to subsection (a) of Section 4.01 hereof.
Section 5.04. Title Insurance. Proceeds of any policy of title insurance received by the Trustee in respect of the Property shall be applied and disbursed by the Trustee as follows:
(a) if the City determines (and sets forth in a Written Certificate of the City) that the title defect giving rise to such proceeds has not substantially interfered with its use and occupancy of the Property and will not result in an abatement of Rental Payments payable by the City under the Lease Agreement, such proceeds shall, with the written approval of the Insurer, be remitted to the City and used for any lawful purpose thereof; or (b) if the City determines that the title defect giving rise to such proceeds has substantially interfered with its use and occupancy of the Property and would result in an abatement in whole or in part of Rental Payments payable by the City under the Lease (disregarding, for the purpose of determining whether such an abatement would result, the provisions of subsection (b) of Section 3.06 of the Lease Agreement), then the City shall, in a Written Request of the City, direct the Trustee to, and the Trustee shall, immediately deposit such proceeds in the Prepayment Fund and such proceeds shall, with the written approval of the Insurer, be applied to the prepayment of Certificates in the manner provided in subsection (a) of Section 4.01 hereof.
Section 5.05. Rebate Fund. (a) In addition to the other funds and accounts created pursuant hereto, the Trustee shall establish and maintain the “Rebate Fund.” There shall be deposited in the Rebate Fund such amounts as are required to be deposited therein pursuant to the Tax Certificate. All money at any time deposited in the Rebate Fund shall be held by the Trustee in trust, to the extent required to satisfy the Rebate Requirement, for payment to the United States of America. Notwithstanding defeasance of the Certificates pursuant to Article X hereof or anything to the contrary contained herein, all amounts required to be deposited into or on deposit in the Rebate Fund shall be governed exclusively by this Section and by the Tax Certificate (which is incorporated herein by reference). The Trustee shall have no liability or responsibility to enforce compliance by the City with the terms of the Tax Certificate. The Trustee may conclusively rely 20 4160-4945-2900.4
upon the City’s determinations, calculations and certifications required by the Tax Certificate. The Trustee shall have no responsibility to independently make any calculation or determination or to review the City’s calculations.
(b) Any funds remaining in the Rebate Fund after payment in full of all of the principal and interest evidenced by the Certificates and after payment of any amounts described in this Section, shall be withdrawn by the Trustee and remitted to the City.
Section 5.06. Investments. (a) General. Except as otherwise provided herein, all moneys in any of the funds or accounts established pursuant to this Trust Agreement and held by the Trustee shall be invested by the Trustee solely in Permitted Investments, as directed in writing by the City two Business Days prior to the making of such investment. Moneys in all funds and accounts held by the Trustee shall be invested in Permitted Investments maturing not later than the date on which it is estimated that such moneys will be required for the purposes specified in this Trust Agreement. Absent timely written direction from the City, the Trustee shall invest any funds held by it in Permitted Investments described in clause [(h)] of the definition thereof. (b) Role and Responsibilities of the Trustee. The Trustee or an affiliate thereof may act as principal or agent in the acquisition or disposition of any such Permitted Investment and shall be entitled to a customary and reasonable fee therefor. The Trustee shall not be liable or responsible for any loss suffered in connection with any such investment made by it under the terms of and in accordance with this Trust Agreement. The Trustee shall sell or present for redemption any obligations so purchased whenever it shall be necessary in order to provide moneys to meet any payment of the funds so invested, and the Trustee shall not be liable or responsible for any losses resulting from any such investment sold or presented for redemption.
The City acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the City the right to receive brokerage confirmations of security transactions as they occur, the City will not receive such confirmation to the extent permitted by law. The Trustee shall furnish the City periodic cash transaction statements, which shall include detail for all investment transactions made by the Trustee hereunder. The Trustee may make any investments hereunder through its own bond or investment department or trust investment department, or those of its parent or any affiliate. The Trustee or any of its affiliates may act as sponsor, advisor or manage in connection with any investments made by the Trustee hereunder.
(c) Valuation. Investments (except investment agreements) in any fund or account established hereunder shall be valued, exclusive of accrued interest not less often than semiannually no later than October 15 and April 15 or more frequently if deemed necessary by the Insurer but not more often than monthly. All investments of amounts deposited in any fund or account established hereunder shall be valued at the market value thereof. (d) Earnings. Any interest or profits received with respect to investments held in any of the funds or accounts established hereunder shall be retained therein. 21 4160-4945-2900.4
ARTICLE VI
COVENANTS; LIMITATIONS ON LIABILITY
Section 6.01. Compliance with Trust Agreement. The Trustee shall execute and deliver the Certificates only in accordance with the provisions hereof, and each of the Corporation and the City shall faithfully comply with, keep, observe and perform all the agreements, conditions, covenants and terms contained in this Trust Agreement required to be complied with, kept, observed and performed by it.
Section 6.02. Compliance with Ground Lease and Lease Agreement. Each of the Corporation and the City shall faithfully comply with, keep, observe and perform all the agreements, conditions, covenants and terms contained in the Ground Lease and the Lease Agreement required to be complied with, kept, observed and performed by it and, together with the Trustee, shall enforce the Ground Lease and the Lease Agreement against the other party thereto in accordance with their respective terms.
Section 6.03. Observance of Laws and Regulations. The Corporation, the City and the Trustee shall faithfully comply with, keep, observe and perform all valid and lawful obligations or regulations now or hereafter imposed on them by contract, or prescribed by any law of the United States of America or of the State of California, or by any officer, board or commission having jurisdiction or control, as a condition of the continued enjoyment of each and every franchise, right or privilege now owned or hereafter acquired by them, including their right to exist and carry on their respective businesses, to the end that such franchises, rights and privileges shall be maintained and preserved and shall not become abandoned, forfeited or in any manner impaired.
Section 6.04. Other Liens. The City shall keep the Property and all parts thereof free from judgments and materialmen’s and mechanics’ liens and free from all claims, demands, encumbrances and other liens of whatever nature or character, other than Permitted Encumbrances, and free from any claim or liability that materially impairs the City in conducting its business or utilizing the Property, and the Trustee at its option (after first giving the City ten days’ written notice to comply therewith and failure of the City to so comply within such ten-day period) may defend against any and all actions or proceedings, or may pay or, with the written consent of the Insurer, compromise any claim or demand asserted in any such actions or proceedings; provided, however, that, in defending against any such actions or proceedings or in paying or compromising any such claims or demands, the Trustee shall not in any event be deemed to have waived or released the City from liability for or on account of any of its agreements and covenants contained herein, or from its obligation hereunder to perform such agreements and covenants. The Trustee shall have no liability with respect to any determination made in good faith to proceed or decline to defend, pay or compromise any such claim or demand.
So long as any Certificates are Outstanding, neither the Trustee nor the City shall create or suffer to be created any pledge of or lien on the amounts on deposit in any of the funds or accounts created hereunder, other than the pledge and lien hereof.
The Trustee shall not encumber the Property other than in accordance with the Ground Lease, the Lease Agreement, this Trust Agreement and the Assignment Agreement. 22 4160-4945-2900.4
Section 6.05. Prosecution and Defense of Suits. The City shall promptly, upon request of the Trustee, the Insurer or any Owner, take such action from time to time as may be necessary or proper to remedy or cure any cloud upon or defect in the title to the Property or any part thereof, whether now existing or hereafter developing, shall prosecute all actions, suits or other proceedings as may be appropriate for such purpose and shall indemnify and save the Trustee, the Insurer and every Owner harmless from all cost, damage, expense or loss, including attorneys’ fees, that they or any of them may incur by reason of any such cloud, defect, action, suit or other proceeding.
Section 6.06. Recordation. The City shall record, or cause to be recorded, with the San Bernardino County Recorder, the Lease Agreement, the Ground Lease and the Assignment Agreement, or memoranda thereof.
Section 6.07. Tax Covenants. (a) The City shall not take any action, or fail to take any action, if such action or failure to take such action would adversely affect the exclusion from gross income of interest evidenced by the Certificates under Section 103 of the Code. Without limiting the generality of the foregoing, the City shall comply with the requirements of the Tax Certificate, which is incorporated herein as if fully set forth herein. This covenant shall survive payment in full or defeasance of the Certificates.
(b) In the event that at any time the City is of the opinion that for purposes of this Section it is necessary or helpful to restrict or limit the yield on the investment of any moneys held by the Trustee in any of the funds or accounts established hereunder, the City shall so instruct the Trustee in writing, and the Trustee shall take such action as may be necessary in accordance with such instructions.
(c) Notwithstanding any provisions of this Section, if the City shall provide to the Trustee an Opinion of Counsel to the effect that any specified action required under this Section is no longer required or that some further or different action is required to maintain the exclusion from federal income tax of interest evidenced by the Certificates, the Trustee may conclusively rely on such opinion in complying with the requirements of this Section and of the Tax Certificate, and the covenants hereunder shall be deemed to be modified to that extent.
Section 6.08. Continuing Disclosure. The City shall comply with and carry out all of the provisions of the Continuing Disclosure Certificate applicable to it. Notwithstanding any other provision of this Trust Agreement, failure of the City to comply with the Continuing Disclosure Certificate shall not constitute an Event of Default hereunder; provided, however, that the Trustee may (and, at the written direction of any Participating Underwriter or the Owners of at least 25% of the aggregate amount of principal evidenced by Outstanding Certificates and upon being indemnified to its reasonable satisfaction, shall) or any Owner or Beneficial Owner of the Certificates may take such actions as may be necessary and appropriate to compel performance, including seeking mandate or specific performance by court order.
Section 6.09. No Liability by the Corporation to the Owners. The Corporation shall not have any obligation or liability to the Owners with respect to the payment when due of the Base Rental Payments by the City, or with respect to the performance by the City of the other agreements and covenants required to be performed by it contained in the Lease Agreement, the 23 4160-4945-2900.4
Ground Lease or herein, or with respect to the performance by the Trustee of any right or obligation required to be performed by it contained herein.
Section 6.10. No Liability by the City to the Owners. Except for the payment when due of the Base Rental Payments and the performance of the other agreements and covenants required to be performed by it contained in the Lease Agreement, the Ground Lease or herein, the City shall not have any obligation or liability to the Owners with respect to the Trust Agreement or the preparation, execution, delivery or transfer of the Certificates or the disbursement of the Base Rental Payments by the Trustee to the Owners, or with respect to the performance by the Trustee of any right or obligation required to be performed by it contained herein.
Section 6.11. No Liability of the Trustee to the Owners. Except as expressly provided herein, the Trustee shall not have any obligation or liability to the Owners with respect to the payment when due of the Base Rental Payments by the City, or with respect to the performance by the Corporation or the City of the other agreements and covenants required to be performed by them, respectively, contained in the Lease Agreement, the Ground Lease or herein.