RESOLUTION NO. 2023-019
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA,
APPOINTING ______________________ AS INTERIM CITY
MANAGER AND APPROVING EMPLOYMENT
AGREEMENT
WHEREAS, Government Code Section 21221(h) permits the Mayor and City Council to appoint a California Public Employees’ Retirement System (“CalPERS”) retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and WHEREAS, the position of City Manager became vacant on January 17, 2023; and WHEREAS, to ensure the efficient continued operation of the City, the Mayor and City Council desire to retain the services of ___________________, a retired member of CalPERS, to serve as Interim City Manager, effective __________________, 2023; and WHEREAS, ____________________ has over ___ years of experience in municipal government and management; and
WHEREAS, pending the recruitment, selection and employment of a City Manager, the City desires to appoint ______________________ as Interim City Manager, pursuant to the authority provided under Government Code Section 21221(h), to provide the leadership, managerial and organization skills necessary to manage the City effectively and efficiently; and WHEREAS, it is understood by ______________ and the City that the combined total hours to be served in any fiscal year for all CalPERS employers shall not exceed the 960 hour limitation set forth in California Government Code Section 21221(h); and WHEREAS, the Mayor and City Council has reviewed a proposed employment agreement by and between ______________ and the City of San Bernardino.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. As required by Government Code Section 21221(h), the Mayor and City Council make the following findings:
(A) All facts set forth in the Recitals to this Resolution are true and correct.
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Resolution No. 2023-019
Resolution No. 2023-019
January 18, 2023
(B) ___________________________ has the specialized skills needed to perform the work required of the Interim City Manager until a permanent City Manager is appointed and thereafter begins his or her service.
(C) It is in the best interests of the City of San Bernardino to enter into an employment agreement with and to appoint _______________________ as Interim City Manager for the City of San Bernardino pursuant to the authority provided under Government Code Section 21221(h).
SECTION 3. ________________ is hereby appointed as Interim City Manager of the City of San Bernardino in accordance with Government Code Section 21221(h) and with the provisions of the employment agreement on file with the City Clerk.
SECTION 4. The employment agreement with __________________, a copy of which is on file with the City Clerk, is hereby approved by the Mayor and City Council of the City of San Bernardino, and effective ___________________________, 2023. The Mayor is authorized to execute said agreement on behalf of the City of San Bernardino, with such non-substantive, technical amendments as may be deemed appropriate by the City Attorney.
SECTION 5. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.
SECTION 7. Effective Date. This Resolution shall become effective immediately.
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2023.
Helen Tran, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, City Clerk
Approved as to form:
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Resolution No. 2023-019
Resolution No. 2023-019
January 18, 2023
Sonia Carvalho, City Attorney
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Resolution No. 2023-019
Resolution No. 2023-019
January 18, 2023
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2023-___, adopted at a regular meeting held on the ___ day of _______ 2023 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
Mayor: AYES NAYS ABSTAIN ABSENT
TRAN _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023.
Genoveva Rocha, CMC, City Clerk
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AGREEMENT FOR
INTERIM CITY MANAGER SERVICES
THIS AGREEMENT is made and entered into this __________________, 2023 by and between the City of San Bernardino (“CITY”) and _____________________ (“EMPLOYEE”).
In consideration of the mutual covenants and agreements set forth herein, the Parties agree as follows:
RECITALS
This Agreement is made and entered into with respect to the following facts:
A. CITY seeks to engage EMPLOYEE on an interim basis to serve in the position of Interim City Manager in accordance with the terms set forth in this Agreement; and B. EMPLOYEE desires to accept employment as Interim City Manager in consideration of and subject to the terms, conditions and benefits set forth in this Agreement; and.
C. EMPLOYEE represents that he/she is a retired annuitant of CalPERS within the meaning of Government Code §§ 7522.56 and 21221(h) (“Statutes”) and acknowledges that her/his compensation is statutorily limited as provided in Government Code § 21221(h).
EMPLOYEE represents that, as of the effective date of this Agreement, he/she has not worked for another CalPERS state or contracting agency as a retired annuitant during the CITY's 2022-2023 fiscal year, and that he/she therefore acknowledges that he/she can work up to 960 hours for the CITY, a state agency or other CalPERS contracting agencies (collectively "CalPERS Agencies") during CITY's 2022-2023 fiscal year. EMPLOYEE represents that he/she has not received unemployment compensation from any CalPERS Agencies during the 12-month period preceding the effective date of this Agreement. EMPLOYEE further represents that her/his CalPERS retirement date became effective prior to the 180-day period preceding the effective date of this Agreement; and
D. CITY has determined that it is necessary to hire EMPLOYEE, a retired annuitant, because the position of Interim City Manager requires special skills, and EMPLOYEE, by virtue of her/his experience has those special skills
NOW, THEREFORE, CITY and EMPLOYEE, in consideration of the mutual covenants and agreements herein contained, agree as follows:
1. DESIGNATION OF INTERIM CITY MANAGER.
In accordance with Resolution No. _____________________, EMPLOYEE is appointed Interim City Manager of the CITY under the terms of this Agreement.
2. POSITION AND DUTIES. EMPLOYEE has been appointed by the Mayor and City Council as Interim City Manager of the City to perform, on a basis set forth in Paragraph 4 below, the duties and functions pertaining to the City Manager position, and to perform other legally permissible duties and such functions as the Mayor and City Council shall from time to Packet Pg. 239
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time assign. The Mayor and City Council shall have the authority to determine the specific duties and functions which EMPLOYEE shall perform under this Agreement and the means and manner by which EMPLOYEE shall perform those duties and functions. EMPLOYEE agrees to devote all of her/his business time, skill, attention, and best efforts to the discharge of the duties and functions assigned to her/him by the Mayor and City Council.
3. TERM; TERMINATION AND AT-WILL STATUS.
This Agreement shall become effective upon the date executed both by EMPLOYEE and the Mayor, which date shall be the date first referenced above. EMPLOYEE shall commence the performance of her/his duties as the Interim City Manager on ___________________, 2023 or at such later date as the parties hereto shall agree in writing ("Commencement Date"). This Agreement shall expire as of the first of the following to occur:
(i) upon the employment commencement date of a permanent City Manager employed by CITY; (ii) upon EMPLOYEE working her/his 960th hour for all CalPERS Agencies during fiscal year 2022-2023 or her/his 960th hour in any subsequent fiscal year; or (iii) upon termination of the Agreement by either EMPLOYEE or CITY as provided below.
EMPLOYEE acknowledges that he/she is an at-will, temporary employee of CITY who shall serve at the pleasure of the Mayor and City Council at all times during the period of her/his service hereunder and shall be subject to termination by at any time without advance notice and without cause. The terms of CITY’s personnel rules, policies, regulations, procedures, ordinances, and resolutions (collectively "Personnel Policies"), as they may be amended or supplemented from time to time, shall not apply to EMPLOYEE, and nothing in this Agreement is intended to, or does, confer upon EMPLOYEE any right to any property interest in continued employment, or any due process right to a hearing before or after a decision to terminate her/his employment. Nothing contained in this Agreement shall in any way prevent, limit or otherwise interfere with the right of CITY to terminate the services of EMPLOYEE and nothing in this Agreement shall prevent, limit or otherwise interfere with the right of EMPOYEE to resign at any time from this position with CITY.
4. COMPENSATION. The CITY agrees to provide the following compensation to EMPLOYEE for the services of Interim City Manager:
Beginning on __________________________, 2023, CITY agrees to pay to EMPLOYEE for services rendered under this Agreement, the hourly rate of one hundred and thirty seven dollars and two cents ($137.02) . The City shall not pay for vacation or holidays, nor shall EMPLOYEE be entitled to any other fringe benefits.
5. ABUSE OF OFFICE. Pursuant to Government Code Sections 53243, 53243.1 and 53243.2, if EMPLOYEE is convicted of a crime involving an abuse of his/her office or position, all of the following shall apply: (1) if EMPLOYEE is provided with administrative leave pay pending an investigation, EMPLOYEE shall be required to fully reimburse City such amounts paid; (2) if City pays for the criminal legal defense of EMPLOYEE (which would be in its sole discretion, as it is generally not obligated to pay for a criminal defense), EMPLOYEE shall be required to fully reimburse City such amounts paid; and (3) if this Agreement is terminated, any Severance Pay and Severance Benefits related to the termination that EMPLOYEE may receive Packet Pg. 240
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from City shall be fully reimbursed to City or void if not yet paid to EMPLOYEE. For purposes of this Section, abuse of office or position means either: (1) an abuse of public authority, including waste, fraud, and violation of the law under color of authority; or (2) a crime against public justice, including, but not limited to, a crime described in Title 7 (commencing with Section 92) of Part 1 of the Penal Code. Notwithstanding the above, it is understood that EMPLOYEE is a CalPERS retired annuitant employed pursuant to Government Code sections 7522.56 and 21221(h) and, accordingly, shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate set forth in Section 4 of this Agreement.
6. NOTICE. Notices required pursuant to this Agreement shall be given by personal service upon the party to be notified or by delivery of same to the custody of the United States Postal Service, or its lawful successor, postage prepared and addressed as follows:
CITY
_________________________
_________________________
_________________________
EMPLOYEE
_________________________
_________________________
_________________________
7. HOURS OF WORK. EMPLOYEE shall devote the time necessary to adequately perform her/his duties as Interim City Manager. The parties anticipate that EMPLOYEE will work a sufficient number of hours per week allocated between regular business hours and hours outside of regular business hours including, without limitation, attendance at regular and special Mayor and City Council meetings, community events and other CITY functions as appropriate or directed.
However, in no event shall EMPLOYEE be required to work in excess of 960 hours in fiscal year 2020-2021 and 960 hours per each subsequent fiscal year for CITY, including hours worked for other CalPERS Agencies during such fiscal years. The position of Interim City Manager shall be deemed an exempt position under California wage and hour law.
It is the intent of the parties to compensate EMPLOYEE only to the extent permitted under the Statutes and corresponding CalPERS regulations and policy statements. The Rate of Pay set forth above is based on the salary limitations established by CalPERS in accordance with Section 21221(h) which provides that the Rate of Pay shall be no less than the minimum or greater than the maximum hourly rate for the City Manager position as listed on the City’s publicly available pay schedule.
EMPLOYEE will comply with all applicable CalPERS regulations governing employment after retirement, including the recordation and reporting of all hours worked for CITY to CalPERS as may be required. CITY shall assist in any such reporting obligations to CalPERS. Additionally, EMPLOYEE shall keep CITY continually appraised of any hours worked by EMPLOYEE for other CalPERS Agencies during the term of this Agreement.
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8. WAIVER. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding, unless executed in writing by the party making the waiver.
9. ENTIRE AGREEMENT. This Agreement constitutes the entire Agreement of the parties considering the subject matter hereof and all prior agreements or understanding, oral or written, are hereby merged herein. This Agreement shall not be amended in any way except by a writing expressly purporting to be such an amendment, signed, and acknowledged by both of the parties thereto. If any portion or provision hereof is held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement or portion thereof shall be deemed severable and shall be effective and shall remain in full force and effect.
CITY OF SAN BERNARDINO
By: _______________________________ Date: _______________________
EMPLOYEE
By: _______________________________ Date: _______________________
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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: January 18, 2023
To: Honorable Mayor and City Council Members
From: Barbara Whitehorn, Agency Director of Administrative Services Department: Finance
Subject: Adopt New Purchasing Policy and Introduce
Ordinance No. MC-1605 amending Section 3.04 of the
Municipal Code. (All Wards)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Introduce, read by title only, and waive further reading of Ordinance No. MC-1605 amending Section 3.04 of the Municipal Code of the City of San Bernardino, California, and
2. Adopt Resolution 2022-246 adopting the Purchasing Policy for the City of San Bernardino.
Background
Over the last two years, the Finance Department has been working to build a robust, responsive Purchasing Division. During the bankruptcy, purchasing personnel in Finance was cut to one Assistant Buyer who was tasked with coordinating procurement for the entire City. Out of necessity, the majority of procurement functions were decentralized, and departments completed most of their own procurement, from small purchases of supplies to major requests for proposals for capital projects, with limited assistance from Finance.
While this worked when there was little funding available, the City has reached financial stability and is now able to invest in ongoing service and capital projects; having a centralized purchasing model backed by well-defined Policy and Municipal Code is of paramount importance. In August, Council requested that the purchasing thresholds of the City Manager and Purchasing Division Manager be added to a future Council meeting agenda, recognizing that the current $49,999 maximum threshold for the City Manager’s contracting authority is low relative to the size of the City of San Bernardino and the business that the City conducts. To provide the foundation for good Packet Pg. 243
governance, the Municipal Code governing purchasing was rewritten and simplified. A Purchasing Policy (Attachment 4) has been developed in alignment with the Municipal Code that will support operations and ensure appropriate internal controls are in place.
Discussion
As briefly discussed above, the Municipal Code and the Purchasing Policy are two key aspects of procurement that work together to provide the foundation of good governance and the policy framework for citywide procurement. They must complement each other to ensure legal compliance and support efficient and effective operations.
Municipal Code. The San Bernardino Municipal Code was originally developed with very specific procedures for each aspect of the procurement process (Attachment 1).
In the redline (Attachment 2), there are numerous changes recommended, removing much of the procedural guidance and adding thresholds for bidding requirements and approval levels, as well as simplifying the language. The changes are intended to put in place a governing Municipal Code that supports Purchasing Policy, internal control, and good governance. The Municipal Code and the Purchasing Policy work together to ensure the City does business legally, efficiently, and effectively. When governance and internal policy are properly aligned, day-to-day operations related to procurement can run smoothly. The Municipal Code should provide the framework from which policies are developed; policies then provide more specific rules, from which procedures are built for efficient operations.
December 7, 2022 Adoption and Change. Mayor and City Council moved to adopt the new Municipal Code and Purchasing Policy with the substantive changes on December 7, 2022. The only change requested was to add a reporting requirement such that all contracts over the $40,000 threshold signed by Directors, Agency Directors, the City Manager and/or their designees be reported to the Mayor and City Council during the City Manager update at each regular City Council meeting. That change is highlighted in blue on page 3 of the redline of the Municipal Code (Attachment 2) to make it easier to see among the other changes.
This change has also been incorporated into the Purchasing Policy, Section II.(a) and can be found on page 6. (Attachment 4) The specific language added to both the Municipal Code and the Purchasing Policy for all contracts over $40,000 reads as follows:
“Reporting. All contracts in this category signed by the City Manager, Agency Directors, Directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each Regular City Council meeting during the City Manager Update.” For full transparency, the staff report from the December 7, 2022 City Council meeting, which includes an explanation of the other recommended changes, is included herein as Attachment 7.
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2021-2025 Strategic Targets and Goals
The changes to the Municipal Code and the adoption of the Purchasing Policy align with Key Strategic Goals 1.a. Establish clear policy direction and predictable organizational structures, and 1.d. Create a framework for spending decisions.
Fiscal Impact
There is no fiscal impact to the City in adopting the new Purchasing Policy and in introducing the Ordinance amending the Municipal Code.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Introduce, read by title only, and waive further reading of Ordinance No. MC-1605 amending Section 3.04 of the Municipal Code of the City of San Bernardino, California, and
2. Adopt Resolution 2022-246 adopting the Purchasing Policy for the City of San Bernardino.
Attachments
Attachment 1 – Municipal Code Section 3.04
Attachment 2 – Municipal Code Section 3.04 Redline version 2 Attachment 3 – Resolution No. 2022-246 Adopting Purchasing Policy Attachment 4 – Exhibit A – Proposed Purchasing Policy version 2 Attachment 5 – Ordinance No. MC-1605 to Amend Municipal Code Section 3.04 Attachment 6 – PowerPoint Presentation Purchasing Policy Attachment 7 – December 7, 2022 Staff Report
Ward:
All Wards
Synopsis of Previous Council Actions:
December 7, 2022 Mayor and City Council moved to Adopt New Purchasing Policy and Introduce Ordinance No. MC-1605 amending Section 3.04 of the Municipal Code with one change. (All Wards)
August 3, 2022 Mayor and City Council requested that am item be added to a future meeting to give the Chief Procurement Officer a dollar authorization of $50,000 and increase City Manager’s signing authority to $100,000 (All Wards) – Council Member Alexander Packet Pg. 245
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1 3.04.010 Adoption of Purchasing System
A. Establishment. In order to establish efficient procedures for the purchase of supplies, materials and equipment, and contracted services, to secure for all departments or agencies of the City excepting the Municipal Water Department and the Free Public Library, supplies, materials, equipment, and services at the lowest possible cost commensurate with the quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing functions and to assure that quality of purchases, a centralized purchasing system is adopted. Except as specified herein, there shall be no exemption from centralized purchasing and no Aagency or Ddepartment shall be authorized to purchase, or contract for the purchase of supplies, services or equipment independently of the administrative officePurchasing Division. The Municipal Water Department and the San Bernardino Public Library shall not be subject to this centralized purchasing system; however; the Board of Water Commissioners and the Board of the San Bernardino Free Public Library shall employ procedures substantially in compliance with the provisions of this Chapter as such may be applicable.
B. Purchasing Policy. All purchases of goods, supplies, equipment and services shall be made in accordance with the formal Purchasing Policy in effect at the time of purchase.
The Purchasing Policy shall be developed by staff and adopted by mayor and City Council. The Purchasing Policy may be changed from time to time by City Council Resolution in order to remain in compliance with necessary law and to address the evolving procurement needs of the City.
C. Vendor Lists. The City may utilize the processes of this Chapter and Purchasing Policy to procure cendors who will be eligible or preferred to provide goods or services to the City on an as-needed basis.
BD. Exemptions. This Chapter shall not apply to the following:
1. Purchases from, or sales to a government or governmental agency, or through any advantageous governmental contract approved by the Council, or to the purchase of election supplies, or to purchases and/or services or service contracts relating to litigation or prosecution or investigations thereof, or to purchases and/or services or service contracts relating to fire and police investigations, or to the purchases and/or services or service contracts relating to board up or demolition of buildings or structures.
2. Purchases from a vendor or manufacturer which, through the City's bidding procedure, or other California government or governmental agency's bidding procedure, has established a price at which such a vendor or manufacturer is willing to sell to the City. During such a bid procedure more than one responsive bid must have been received, and the bid award must have occurred within one year at the City's issuance of a purchase order.
3. Purchases approved by the Mayor and Common Council.
4. Purchases for less than $500.00of less than ten thousand dollars ($10,000).
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2 5. Public Works Projects. Procurement procedures for Public Works Projects are defined in Chapters 12.20, 12.21 and 12.24 of the San Bernardino Municipal Code.
6. Sole Source procurements as more defined in the Purchasing Policy,
7. Emergency Procurements as more defined in Section 3.04.070 of the Municipal Code and the Purchasing Policy.
8. Federal/Grant-Funded Procurement to the extent that this Chapter and Purchasing Policy is inconsistent any federal, grant or other funding source requirement for a particular purchase. In that event, the federal, grant or other funding source procurement requirements shall control.
9. Inadequate competition as more defined in the Purchasing Policy. (Ord. MC-983, 9-24-96; Ord. MC-858, 1-12-93; Ord. MC-608, 9-22-87; Ord. MC-513, 4- 22-86; Ord. MC-431, 1-25-85; Ord. 2588, 6-23-64)
3.04.020 Purchasing Officer Division
The purchase and sale of all supplies, materials and equipment and services, shall be the responsibility of the purchasing agent under the direction and supervision of the administrative officer.Unless otherwise exempted under this Chapter, the purchase and sale of all supplies, materials, equipment, and services shall be the responsibility of the Purchasing Division. The Purchasing Division is part of the Finance Department, which is responsible for carrying out written administrative procedures adopted by the City Council related to Procurement. The Purchasing Division Manager is responsible for the Purchasing Policy, and will develop, advise, review, audit and ensure compliance throughout the Purchasing process as the City’s subject matter expert.
(Ord. MC-858, 1-12-93 ; Ord. 2588, 6-23-64)
3.04.030 Estimates of requirementsBidding Requirements
All using departments and agencies shall file detailed estimates of their requirements for supplies, materials and equipment in such manner, at such time, and for such future periods as the City Administrative office shall prescribe.The procurement process used to purchase supplies, materials, equipment, and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase.
A. Purchases up to $10,000
Purchases up to $10,000 may be purchased using a Purchasing Card or through a check request with no requirement for formal bids or quotes.
B. Purchases between $10,001 and $40,000
Purchases between $10,001 and $40,000 are processed informally, through vendor quotations and may be processed directly by the department making the purchase. The informal bidding process is more particularly described in the Purchasing Policy.
C. Purchases above $40,000
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3 Puchases in this category are subject to formal competitive bidding or competitive selection depending on the type of purchase. The formal competitive bidding process is more particularly described in the Purchasing Policy.
1. Reporting. All contracts in this category signed by the City Manager, Agency Directors, Directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each Regular City Council meeting during the City Manager Update.
(Ord. 2588, 6-23-64)
3.04.040 RequisitionsApproval Authority
Using departments and agencies shall submit requests for supplies, materials and equipment to the Purchasing Agent by standard requisition forms.The authority to purchase supplies, materials, equipment, and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase. Purchasing authority are based on the following amounts:
A. Purchases up to $50,000
Purchases in this category may be authorized by the Agency/Department Directors and/or the City Manager.
B. Purchases between $50,001 and $100,000
Purchases in this category may only be authorized by the City Manager or their designee.
C. Purchases over $100,000
Purchases in this category may only be authorized by the Mayor and City Council. (Ord. 2588, 6-23-64)
3.04.050 Purchase Oorders and Procurement Cards
Purchase of supplies, materials, and equipment shall be made only by purchase order or procurement card, whichever is appropriate., and signed by the Purchasing Agent or administrative officer or his or her designee.
(Ord. MC-858, 1-12-93; Ord. 2588, 6-23-64)
3.04.060 Encumbrance of funds
The Purchasing Agent Division shall not issue any purchase order for supplies, materials or equipment unless there exists an unencumbered appropriation in the account against which the purchase is to be charged, and until the same has been approved by the finance divisionBudget Division of the administrative officeFinance Department. (Ord. 2588, 6-23-64)
3.04.070 Formal contract procedure
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4 Except as otherwise provided in this Chapter, purchases and contracts for supplies, materials and equipment of a value greater than fifty thousand dollars shall be by a written contract with the lowest possible and best bidder, pursuant to the procedures described in this section.
A. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, and the time and place for opening bids.
B. Notice, Publication and Mailing. Notice inviting bids shall be published at least ten days before the opening of bids in a newspaper of general circulation printed and published in the City. The Purchasing Agent may establish and maintain a list of prospective bidders.
The prospective bidders shall be listed on said list according to the service or product provided as indicated by the prospective bidder. It shall not be the responsibility of the Purchasing Agent to ensure that the list contains current information in respect to the address, service or product of the prospective bidder. The Purchasing Agent is authorized to mail invitations to bid directly to appropriate prospective bidders appearing on said list and to other prospective bidders.
C. Bidder's Security. Each bid or proposal may be required by the Purchasing Agent to be accompanied by a bidder's bond, certified or cashier's check, or cash in an amount not more than ten percent of the total bid. The City Administrator shall establish standards for determining under what circumstances a bidder's security shall be required in order to protect the interests of the City. When deemed necessary by the City Manager, bidder's security may be prescribed in the public notices inviting bids. When bid security is required, bidders shall be entitled to return of bid security, provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award has been mailed, unless and to the extent the City is responsible for the delay. The Common Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest and best bidder. If the Common Council awards the contract to the next lowest and best bidder, the amount of the lowest bidder's required security shall be applied by the City to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.
D. Bid Opening Procedure. Sealed bids shall be submitted to the Purchasing Agent and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A record of the bids received shall be available for public inspection after bids have been opened, indicating the amounts bid by the various bidders and the basis for awarding the contract or purchase order if other than the lowest bidder. Such list shall be available for thirty days after the award has been made.
E. Rejection of Bids. At its discretion, the Mayor and Common Council shall have the power to reject any and all bids presented and readvertise for bids.
F. Award of Contracts. Contracts shall be awarded by the Mayor and City Council, by resolution or minute action, to the lowest and best bidder except as otherwise provided herein.
G. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal and if the public interest will not permit the delay of readvertising Packet Pg. 258
5 for bids, the Mayor and Common Council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening H. Performance Bonds. The Mayor and Common Council shall have authority to require a performance bond before executing a contract in such amount as it shall find reasonably necessary to protect the best interests of the City. If the Mayor and Common Council require a performance bond, the form and amount of the bond shall be described in the notice inviting bids.
I. Negotiated Purchases. At the discretion of the City Manager, the Purchasing Agent may authorize the purchase of technical or specialized supplies and equipment by competitive negotiation when such a method of purchase would be more advantageous to the City, and any one of the following conditions exists:
1. The supplies or equipment are such that suitable technical or performance specifications are not readily available;
2. The City is not able to develop descriptive specifications; or,
3. The quality of the supplies and equipment cannot be accurately determined by reference to their specifications alone.
At the completion of such a negotiated purchase a written report thereon shall be made to the City Administrator.
(Ord. MC-1569, 2-02-22; Ord. MC-1413, 4-06-15; Ord. MC-858, 1-12-93; Ord. MC-646, 12-07- 88; Ord. MC-602, 6-02-87; Ord. MC-491, 1-22-86; Ord. MC-183, 7-07-82; Ord. 3893, 1-09-80; Ord. 3723, 5-04-78; Ord. 3514, 8-06-75; Ord. 2588, 6-23-64)
3.04.075 3.040.070 Emergency Ppurchases
In case of an emergency, which is so urgent as to preclude advance action by the Mayor and Common City Council and which requires purchase of supplies, materials, equipment or contractual services, the City Administrator Manager shall have the authority to authorize the Purchasing Agent to securinge in the open market at the lowest obtainable price any such supplies, materials, equipment or contractual services. This emergency authority shall extend to all purchases, irrespective of the fact that the amount might exceed the authorized thresholds outlined in Section 3.05.020 of the Muicipal Code.limitation for open market purchases. In all instances a full An explanation of the emergency circumstances shall be filed with the Mayor and Common City Council within forty-eight (48) hours of the emergency purchase. (Ord. 3893, 1-09-80; Ord. 2588, 6-23-64)
3.04.080 Open market procedureSurplus Supplies and Equipment A. All Agencies and Departments shall submit to the Purchasing Division reports showing all supplies, materials and equipment which are no longer used or usable or which may have become obsolete, unsuitable or worn out. The Purchasing Division Manager shall have authority to sell said supplies, materials and equipment, or to exchange the same for, or trade in the same on, new supplies, materials and equipment. Such sales, exchanges or trade-ins shall be made to the highest and best bidder pursuant to the procedures in the Purchasing Policy, or shall be made at a public auction as hereinafter set forth in this Section 3.04.100.
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6 B. Public Auction. A notice describing the property in sufficient detail for its identification shall be prepared by the Purchasing Division and shall be given at least five days before the time fixed therefore by publication once in an established newspaper or other publication of general circulation published in the City.
C. City officers shall not be purchasers at any such public auction authorized, conducted, or administered by them in their official capacity, nor shall any City officer or employee directly or indirectly submit a bid at the auction if they have participated in the preparation or conduct of the auction in their official capacity.
D. The property so offered for sale shall be sold to the highest bidder for cash, provided that the Purchasing Manager may, at their discretion, fix a minimum sale price and may refuse to sell unless the minimum price is offered, and may further refuse to sell unless a deposit of security is immediately made.
E. Any property sold at public auction shall be provided to the purchaser upon full payment of the purchase price.
F. The proceeds of the auction sale or sales shall immediately be deposited with the Department of Finance and deposited into the General Fund of the City.
Purchase of supplies, materials, and equipment of a value in the amount of fifty thousand dollars or less may be made by the Purchasing Agent in the open market, in accordance with the following procedure:
A. Minimum Number of Bids. Open market purchases shall wherever possible, be based on at least three bids, and shall be awarded to the lowest and best bidder.
B. Notice inviting bids. The Purchasing Agent shall solicit bids by written requests or by telephone to prospective vendors.
C. Written Bids. Sealed written bids shall be submitted to the Purchasing Agent who shall keep a record of all open market orders and bids for the required period of time after the submission of bids or the placing of orders. This record while so kept shall be open to public inspection.
D. Open Market Purchases For Which No Bids Are Required. For open market purchases not exceeding twenty-five hundred dollars, the Purchasing Agent shall have the authority to select a specific vendor and place an order without obtaining additional competitive bids.
(Ord. MC-1413, 4-06-15; Ord. MC-858, 1-12-93; Ord. MC-646, 12-07-88; Ord. MC-602, 6-02-87; Ord. MC-183, 7-07-82; Ord. 3893, 1-09-80; Ord. 3531, 10-07-75; Ord. 2588, 6-23-64)
3.04.085 Services
A. The Purchasing Agent may contract for services of a value of fifty thousand dollars or less in accordance with the following procedure:
1. Minimum Number of Proposals. Contracts for services shall, whenever possible, be based on at least three proposals, and shall be awarded to the provider who can best meet the needs of the City. Although cost shall be considered by the Packet Pg. 260
7 Purchasing Agent in entering into such contracts, it shall not be the sole determining factor.
2. Request For Proposals (RFP). The Purchasing Agent shall solicit proposals by written requests or by telephone to prospective providers.
3. Written Proposals. Sealed written proposals shall be submitted to the Purchasing Agent who shall keep a record of all such proposals for not less than 180 days.
This record while kept shall be open to public inspection.
4. Contractual Services For Which No Proposals Are Required. For contractual services not exceeding twenty-five hundred dollars in value, the Purchasing Agent shall have the authority to select a specific provider and enter into a contract without obtaining additional proposals.
B. Contractual services with a value in excess of fifty thousand dollars must be approved by the Mayor and Common Council pursuant to Requests For Proposals as authorized by the Mayor and Common Council.
C. The provisions of Subsection A above shall not apply to contracts for special counsel services which are provided for pursuant to Chapter 2.20 of this Code. (Ord. MC-1413, 4-06-15; Ord. MC-858, 1-12-93)
3.04.100 Surplus supplies and equipment
A. All using agencies and departments shall submit to the purchasing agent, at such times and in such form as he shall prescribe, reports showing all supplies, materials and equipment which are no longer used or usable or which may have become obsolete, unsuitable or worn out. The purchasing agent shall have authority to sell said supplies, materials and equipment, or to exchange the same for, or trade in the same on, new supplies, materials and equipment. Such sales, exchanges or trade-ins shall be made to the highest and best bidder pursuant to the procedures of Section 3.04.070 or 3.04.080, whichever is applicable, or shall be made at a public auction as hereinafter set forth. The Purchasing Agent, when directed by the Mayor and Common Council, shall restrict the sale of surplus supplies, materials and equipment of a value in an amount of three thousand dollars or less to local nonprofit tax exempt corporations, associations or organizations pursuant to Section 3.04.080, or shall negotiate and consummate a sale to a governmental agency, including any domestic or foreign sister City. Each restricted or negotiated sale under this Chapter shall be consummated at the fair market value of the surplus supplies or equipment.
B. Public Auction. A notice describing the property in sufficient detail for its identification shall be prepared by the City administrator and shall be given at least five days before the time fixed therefore by publication once in a newspaper of general circulation published in the City.
C. City officers shall not be purchasers at any such public auction authorized, conducted or administered by them in their official capacity, nor shall any City officer or employee Packet Pg. 261
8 directly or indirectly submit a bid at the auction if he has participated in the preparation or conduct of the auction in his official capacity.
D. The property so offered for sale shall be sold to the highest bidder for cash, provided that the City administrator may, at his discretion, fix a minimum sale price and may refuse to sell unless the minimum price is offered, and may further refuse to sell unless a deposit of security is immediately made.
E. Any property sold at public auction shall be delivered to the purchaser upon payment of the purchase price.
F. The proceeds of the auction sale or sales shall immediately be deposited with the Treasurer of the City and placed in the general fund thereof. (Ord. 3531, 10-07-75; Ord. 3370, 8-22-73; Ord. 2588, 6-23-64)
3.04.105 Sale of surplus City property
Notwithstanding anything in this Chapter to the contrary, the Purchasing Agent shall select appropriate items with an estimated value of $1,000 or less, and shall make them available for retail sale by private parties pursuant to written agreements approved by the Mayor and Common Council, or by direct retail sale by the City. Such items need not be sold to the highest bidder, and may be sold at a predetermined price and may be discounted from time to time in keeping with retail practices. Any items not sold within a reasonable time shall be returned to the Purchasing Agent for disposal according to normal procedures as provided in this Chapter.
The private party may be authorized to retain a percentage of the sales price in an amount authorized by such written agreements.
(Ord. MC-968, 6-04-96)
3.04.110 Surplus vehicles and equipment
Upon direction by resolution of the Mayor and Common Council, the Purchasing Agent may dispose of surplus vehicles and equipment by sealed bid sale with or without newspaper advertising, but pursuant to the regulations contained in the resolution. (Ord. MC-608, 9-22-87)
3.04.115 City Manager
Any duty or responsibility given to the Purchasing Agent by this Chapter may likewise be performed or fulfilled by the City Manager or his or her designee. (Ord. MC-1413, 4-06-15; Ord. MC-858, 1-12-93)
3.04.1203.04.090 Penalty To Split Purchases
It shall be unlawful to split or separate into smaller purchases, a purchase so as to bring the purchase within the provisions of any exemption or less stringent procedure provided herein. (Ord. MC-858, 1-12-93)
3.04.125 3.04.100 Local Bbidders
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9 Any formal or informal bid submitted by a local bidder for goods or materials pursuant to this Chapter shall receive a one five percent (51%) credit for comparison purposes with other bidders. For the purpose of this Section, "local bidders" shall be bidders with (1) fixed facilities with employees within the City of San Bernardino’s jurisdiction (a PO Box or residential address is insufficient unless it is a home-based business, in which case the residential address may be used) and (2) an appropriate City of San Bernardino Business License. for which the point of sale of the goods or materials shall be within the City of San Bernardino. (Ord. MC-903, 5-05-94)
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Resolution No. 2022-246
Resolution No. 2022-246
January 18, 2023
RESOLUTION NO. 2022-246
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA,
ESTABLISHING THE CITY’S ADMINISTRATIVE POLICY
– PURCHASING POLICY
WHEREAS, the City of San Bernardino is a charter city operating under a councilmanager form of government; WHEREAS, the City Charter is the document adopted by voters that defines the organization, powers, functions and essential procedures of the city government and the Municipal Code contains the local laws and regulations adopted by the Mayor and City Council that establish zoning and development standards, traffic regulations, administrative standards and the like; WHEREAS, in addition to the City Charter and Municipal Code, it is important for the City to implement policies and procedures that establish the controls needed to ensure that City employees and elected and appointed officials are able to operate under a clear set of guidelines that align with the laws and regulations that govern the City; and WHEREAS, since hiring a professional Purchasing Division Manager in May of 2021 the City has been working to improve purchasing and procurement citywide; and WHEREAS, the Mayor and Council gave direction at the Regular City Council meeting on August 3, 2022 to bring forward increased purchasing authorization levels for the City Manager and other staff.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. The City of San Bernardino Administrative Policy – Purchasing Policy, attached hereto and incorporated herein as Exhibit A, is hereby approved.
SECTION 3. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.
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Resolution No. 2022-246
Resolution No. 2022-246
January 18, 2023
SECTION 5. Effective Date. This Resolution shall become effective immediately.
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2023.
Helen Tran, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
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Resolution No. 2022-246
Resolution No. 2022-246
January 18, 2023
STATE OF CALIFORNIA)
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO)
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2022-___, adopted at a regular meeting held on the ___ day of _______ 2023 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023.
Genoveva Rocha, CMC, City Clerk
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City of San Bernardino
Administrative Policy
Purchasing Policy and Procedures Guide
Subject: Purchasing Policy and Procedures Guide
Purpose: To set forth the policies governing procurement and contracting and to establish certain procedures concerning authorization, documentation, and expenditure for Agencies, Departments, and the City Manager of the City of San Bernardino. The City of San Bernardino has a goal of ethical and fair procurement, and open competition. This Purchasing Policy and Procedures Guide outlines procedures in compliance with Chapter 3.04 of the San Bernardino Municipal Code.
Authority: Resolution No. 2022-XXX
Scope: Unless otherwise stipulated herein, this policy applies to all City Employees and Elected Officials making purchases on behalf of the City of San Bernardino. All such employees and officials shall comply with the provisions outlined in this policy. The purpose of any required documentation is to ensure transparency and provide sufficient evidence to anyone who reviews bids, proposals, and/or other purchasing materials that public funds were expended in compliance with this Purchasing Policy and Procedures Guide, San Bernardino Municipal Code, and applicable State and Federal law.
Exemption from Scope
None
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TABLE OF CONTENTS
Section Page
I. Introduction 3
II. Purchasing Expenditure and Approval Thresholds 6
III. Informal Procurement 7
IV. Competitive Procurement 7
V. Exemptions 8
VI. Protest Procedures 9
VII. Federal Emergency and Grant Procurement Procedures 10 VIII. Contracting 19
IX. Surplus Supplies and Equipment 20
X. Ethical Standards and Fair Processes 21
Exhibit A – Expenditure and Authorization Threshold Reference 24 Exhibit B – Contracting Guide 25
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I. INTRODUCTION
(a) Purpose
Chapter 3.04 of the San Bernardino Municipal Code provides for the administration of the City’s procurement processes, including the establishment of Purchasing Policy and Procedures Guide (“Policy”). The purposes and objectives of this Policy are:
1. To ensure compliance with all current laws and regulations
2. To promote transparency of the City’s procurement activities
3. To establish standardized, cost-effective, and efficient purchasing methods
4. To ensure continuity of City operations
5. To promote fair competitive processes
6. To maintain integrity and fairness
7. To support the City’s mission and serve the best interest of the public This Policy shall not apply to the procurement of Public Works Projects. Procurement procedures for Public Works Projects are defined in Chapters 12.20, 12.21 and 12.24 of the San Bernadino Municipal Code.
(b) Definitions
In construing the provisions of this Policy, the following definitions shall apply:
Cooperative Purchasing – Cooperative purchasing is an arrangement in which multiple entities combine their buying requirements onto a single contract and aggregate volume to enhance their purchasing power.
Emergency – A sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services as defined by California Public Contract Code Section 1102.
Emergency Purchase – A purchase or procurement of supplies, equipment or services made during an emergency as defined under Section VI(A) and MC 3.04.070.
General Services - furnishing of labor, time, or effort by a contractor for non-professional services as the City may, from time to time, find necessary and proper for the functioning of the City. Examples include, but are not limited to, janitorial, uniform cleaning, maintenance and other services which do not require any unique skill, special background or training.
Goods - any and all supplies, materials, articles, equipment, apparatus, vehicles, things, or property, other than real property, furnished to be used by the City.
Local Business – The vendor (i) has fixed facilities with employees located at a business address within the City of San Bernardino city limits (a PO box or residence is insufficient); and (ii) has an appropriate City business license/permit, pursuant to MC
3.04.100.
Lowest Responsive, Responsible Bid – A bid from a responsible bidder, defined as a Packet Pg. 269
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bidder qualified to do the solicited work, that conforms in all materials respects to the solicitation, and is the lowest price among qualified, responsive bids.
Maintenance Services - the furnishing of labor, time or effort by a contractor, including but not limited to:
• Routine, recurring, and usual work for the preservation or protection of a publicly owned, or publicly operated facility for intended purposes; • Minor repainting;
• Resurfacing streets and highways at less than one inch; • Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; and
• Other similar services that are generally classified as maintenance and not public projects.
Piggyback – (See Cooperative Purchasing).
Professional Services - services provided by a person, company, corporation, or firm engaged in a profession based on a generally recognized special knowledge, skill, license, and/or certification to perform the work including, but not limited to, the professions of accountant, attorney, artist, architect, landscape architect, construction manager, engineer, environmental consultant, dentist, physician, training or educational consultant, or land surveyor, and whose services are considered distinct and unique.
Protest – A protest is a challenge to the award or proposed award of a contract for the procurement of goods and/or services, or a challenge to the terms of a solicitation for such a contract.
Purchase Order (PO) – A purchase order, or PO, is an official document issued by the City committing to pay a vendor for the sale of specific products or services to be delivered in the future.
Purchasing Agent – An employee who purchases materials and supplies and solicits bids on behalf of the City.
Request for proposal (RFP) – A request for proposal (RFP) is is a document that solicits firms to submit a proposal to perform the scope of work associated with a proposed project. Cost is not the sole basis for selection in an RFP; other qualifications including experience, turnaround time and approach to work are important factors when evaluating proposals. RFPs are project specific, and preparation requires general knowledge of the project. It is expected that interested parties would do a limited amount of work to develop a quality proposal.
Request for Qualification (RFQual) – A request for qualifications (RFQual) is a document that solicits firms to submit information about their qualification and capabilities to perform the type of work associated with a proposed project. The preparation of an RFQual generally does not require specific project knowledge or scope. An RFQual may be used as a pre-qualification step to engaging a service provider. If an RFQual is required, only those candidates who successfully respond to it and meet the qualification criteria will be included in the subsequent RFP process. An RFQual will contain specific reference to selection criteria.
Request for Quote (RFQ) – A formal or informal solicitation of price quotes.
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Services - either general services, maintenance services, or professional services.
Sole Source – A sole source purchase means that only one supplier, to the best of the requester's knowledge and belief, based upon thorough research, can provide the required product or service.
Surplus Supplies and/or Equipment – City owned materials, supplies and/or equipment deemed to be no longer useful or otherwise obsolete. See MC Section 3.04.080. (c) Organization
The Purchasing Division is part of the Finance Department, which is responsible for carrying out written administrative procedures adopted by the City Council related to procurement (M.C. §
3.04.020).
(i) Purchasing Division.
The Purchasing Division is responsible for the oversight and internal control related to procurement and purchasing including, but not limited to:
i. Ensuring compliance with Chapter 3.04 of the San Bernardino Municipal Code and this Policy.
ii. Developing technical review matrices for proposals
iii. Carrying out the initial review of Bids/Proposals
iv. Verifying that all legal and other required internal reviews are completed
v. Ensuring that departments are using the correct contract templates
vi. Opening sealed bids
vii. Certification of Sole Source Procurements
viii. Managing the City’s Disadvantaged Business Enterprise (DBE) and Small Business Enterprise (SBE) Program and reporting results to City Management and the Mayor and City Council. (ii) Purchasing Division Manager (“Purchasing Manager”).
The Purchasing Manager is a critical internal control position. While not empowered to make purchases directly, the Purchasing Manager ensures that the City complies with applicable procurement law, grant funding requirements, the San Bernardino Municipal Code and this Policy. The Purchasing Manager is responsible for internal control and compliance related items including, but not limited to:
i. Reviewing selection of vendors for compliance with open and fair competition
ii. Responding to any bid protests
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iii. Reviewing the DBE and SBE program including verifying affirmative steps and auditing results
iv. Reviewing contracts before they are submitted for final signatures v. Periodic audits for compliance with applicable law, the San Bernardino Municipal Code and the Policy
II. PURCHASING EXPENDITURE AND APPROVAL THRESHOLDS
(a) Purchasing Requirements by Expenditure Threshold
(i) Purchases up to $10,000 (Micro-Purchases):
1. Purchases up to $10,000 may be purchased using a Procurement -Card (“P-Card”) or through a check request.
2. No formal bids or quotes are required.
3. Purchases of $10,001 and over shall not be divided into multiple smaller purchases or invoices to circumvent required procedures.
This is “split purchasing” and is unlawful and a violation of the Policy and the San Bernardino Municipal Code. (M.C. § 3.04.090). (ii) Purchases Between $10,001 and $40,000 (Small Purchases):
1. Purchases in this category are processed informally through the simplified process outlined in Section III of this Policy and may be processed directly by the department making the purchase.
2. Competitive Bidding may be used for purchases under $40,000 at the discretion of the Agency or Department Director.
(iii) Purchases Above $40,000:
1. Purchases in this category are subject to competitive bidding or competitive selection outlined in Section IV of this Policy, depending on the type of purchase (formal procurement
procedures).
2. Reporting. All contracts in this category signed by the City Manager, Agency Directors, Directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each Regular City Council meeting during the City Manager Update. (b) Purchasing Authority by Expenditure Threshold
(i) Purchases up to $50,000:
1. Purchases in this category may be authorized and signed by Agency/Department Directors and/or the City Manager or their designee.
(ii) Purchases between $50,001 and $100,000:
1. Purchases in this category may only be authorized and signed by the City Manager or their designee.
(iii) Purchases over $100,000:
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1. Purchases in this category may only be authorized by the Mayor and City Council.
III. INFORMAL (SIMPLIFIED) PROCUREMENT PROCESS
Purchases for goods, services, and materials that are subject to the informal procurement process may be processed through vendor quotations as follows:
(a) Three (3) written quotes should be obtained.
(b) Departments shall strive to obtain written price quotes from three or more potential contractors or suppliers and accept the quote which is determined to be in the best interests of the City. Written price quotes shall be retained and provided as backup for the purchase requisition. If unable to obtain a minimum of three (3) price quotes, staff shall document that reasonable efforts were made to obtain price quotes or proposals including, that there were no other vendors to solicit price quotes or proposals from or that they solicited to other vendors and one or more declined to provide a quote or proposal.
(c) Award shall be made to the best qualified vendor presenting a quote or proposal that is in the City’s best interests. For purchases subject to the informal procurement process, criteria other than price may be used. For example, delivery time, quality, and vendor experience may impact the selection of quotes.
If using criteria other than price, the criteria should be stated somewhere on the quote documentation for audit purposes.
(d) Contracts for the purchase of professional services shall be awarded to the best qualified vendor on the basis of demonstrated competence and professional qualifications. While a reasonable price is always a consideration in selecting a vendor, it cannot be the sole factor in selecting a vendor for professional services.
IV. FORMAL PROCUREMENT PROCESS
(a) Purchases for goods, services, and materials that are subject to the formal procurement process shall be processed utilizing an RFP, RFQual or RFQ process as described in this Section. The RFP, RFQual or RFQ process shall be utilized to engage services on the basis of demonstrated competence and qualifications for the types of services to be performed and at fair and reasonable prices to the City. The following minimum guidelines and procedures shall be implemented.
(i) Notice Inviting RFQs or RFPs. At a minimum, the notice inviting RFQs, RFQuals or RFPs shall: (1) describe the project; (2) state how to obtain more detailed information about the project; (3) state the date, time and place for the submission of qualifications or proposals; (4) describe general parameters for evaluation and selection; and (5) include any other information required by state or local law.
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(ii) Published Notice. City staff shall solicit RFQs, RFQuals or RFPs via published notice in a newspaper of general circulation and/or the City’s website at least ten (10) calendar days before the date for receiving qualifications or proposals, unless exigent circumstances call for a shorter time.
(iii) Review of Qualifications or Proposals. The City will receive qualifications or proposals at the date, time and place of submission on the notice inviting RFQs/RFQuals/RFPs. Any proposals received after the proposal opening time will be time/date stamped and returned unopened to the proposer.
The City will review and evaluate qualifications or proposals based on the evaluation and selection criteria in the RFQs/RFQuals/RFPs and rank proposals based on factors listed in the RFQ/RFQual/RFP. (iv) Negotiation. Once proposals are ranked, the City may negotiate a contract with the highest ranked proposer only, may negotiate with multiple proposers, or may attempt to reach an agreement with the highest ranked proposer before negotiating with other proposers in order of ranking. The City may also dispense with negotiations and recommend an award based on the proposals.
(v) Award. Award for professional services contracts shall be to the best qualified vendor who will best serve the City’s interests taking into account the demonstrated competence, professional qualifications and suitability for the project. Award for other contracts shall to the vendor offering the best value to the City, in the City’s sole and absolute discretion. (vi) Rejection of Bids. The City Council may, in its sole and absolute discretion, reject all proposals presented and re-advertise.
V. EXEMPTIONS
Exemptions from the procurement process may be requested under the following circumstances:
(a) Emergency Purchases. An exemption may be granted in case of an emergency, which is so urgent as to preclude advance action by the Mayor and Common Council and which requires purchase of supplies, materials, equipment, and contractual service.
(i) In such a case, the City Manager shall have the authority to authorize the Purchasing Division to secure in the open market such supplies, materials, equipment, or contractual services as deemed necessary. (ii) This emergency authority shall extend to all purchases; irrespective of the fact that amount might exceed the City Manager’s authorization threshold.
In such instances a full explanation of the emergency circumstances shall be filed with the Mayor and City Council (MC § 3.04.070). (iii) If emergency work is performed, the Purchasing Division should be notified by the next business day, or as soon as practical. This will allow the Purchasing Division to properly ratify purchase orders.
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(iv) An emergency includes the following: (1) a public calamity; (2) an immediate need to prepare for national or local defense; (3) the breakdown of machinery or equipment causing a service impediment requiring immediate resolution; (4) a hazard to public health or welfare; and (5) situation in which the City will be unable to perform services for the public.
(b) Cooperative Purchases. The City may engage in cooperative purchasing for goods or services as a third-party agency "piggybacking" on another agency's competitively bid agreement. Cooperative purchasing reduces administrative expenses and secure prices and other benefits of a large volume purchase.
Caution must be exercised to ensure that the City is in compliance with all applicable federal, state, and local laws as well as the Policy. The Purchasing Division must be consulted prior to any department engaging in cooperative purchasing.
(c) Sole Source. When a department determines that the goods, services or public project can only be obtained from a sole source. For example, only one manufactured makes an item that meets the required specifications or only one item is compatible with existing equipment. Price cannot be used in a determination of sole source. This is an indication of competition in the marketplace.
A sole source purchase is a method of acquisition; it shall not be used to avoid competition. A sole source justification memo is required for any sole source purchase over $10,000. The sole source justification memo must be approved by the Purchasing Manager before the purchase is completed. (d) Public Works Projects. This Policy shall not apply to the procurement of Public Works Projects. Procurement procedures for Public Works Projects are defined in Chapters 12.20, 12.21 and 12.24 of the San Bernadino Municipal Code. (e) Purchases Approved by Mayor and City Council. A purchase that is otherwise approved by the action of the Mayor and City Council in a public meeting is exempt from this Policy.
(f) Federal/Grant-Funded Procurement. Federal/grant-funded procurements shall be exempt from this Policy if such funding requires compliance with an alternative set of procurement rules not in compliance with this Policy. This is more particularly described in Section VII(c) of this Policy. (g) Exemptions Authorized by San Bernardino Municipal Code Section
3.04.010(D)(1). Items listed in San Bernardino Municipal Code section
3.04.010(D)(1) shall be exempt from this Policy. This includes, but is not limited to, purchases/sales from other governmental agencies.
(h) Inadequate Competition. Inadequate competitive is defined as when, after solicitation from a number of sources (which must be documented for audit purposes), competition is determined to be inadequate. Inadequate competition includes the lack of receipt of responsive bids.
VI. PROTEST PROCEDURES
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(a) Right to Protest. Prior to making the award, any responsible bidder in connection with the award of a contract may protest the award. A subcontractor of a bidder or proposer may not submit a protest. This Section shall apply to all contracts awarded by the City Council through a formal competitive process, including but not limited to a formal bid or formal request for proposal process.
The protest procedure does not apply to contracts that are awarded at the staff level or through a non-competitive process (e.g., by sole source). The protest procedure is solely to serve the public interest and obtain finality of City contract awards.
(b) Procedure. The protest must:
(i) Be filed in writing within five (5) calendar days after the bid opening date relating to any Bid. Any protest relating to a City determination or recommendation regarding the bidder’s bid must be submitted within five (5) calendar days after the City makes the determination or recommendation
(ii) Clearly identify the specific irregularity or accusation; (iii) Clearly identify the specific City staff determination or recommendation being protested, if applicable;
(iv) Specify in detail the legal grounds for protest and the facts supporting the protest; and
(v) Include all relevant, supporting documentation with the protest at time of filing.
(c) City Response. Any grounds not raised in the written protest are deemed waived by the protesting bidder. If the protest does not comply with each of these requirements, the City may reject the protest without further review. If the protest is timely and complies with the above requirements, the City shall review the protest, any response from the challenged bidder(s), and all other relevant information. The City will provide a written decision to the protestor in a reasonable amount of time.
(d) Effect of Failure to Comply with Protest Procedures. The procedure and time limits set forth are mandatory and are the sole and exclusive remedy in the event of a bid protest. Failure to comply with these procedures shall constitute a failure to exhaust administrative remedies and a waiver of any right to further pursue the bid protest, including filing a Government Code Claim or legal proceeding. (e) Conflicts. The protest procedure contained in this Section shall not apply if a particular procurement solicitation contains a different protest procedure.
VII. FEDERAL EMERGENCY AND GRANT PROCUREMENT
PROCEDURES
(a) Purpose. The purpose of these Federal Emergency and Grant Procurement Procedures is to define the practices and policies governing the procurement of services, and goods (i) in preparation of, during, and after an emergency that may Packet Pg. 276
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be subject to federal funding or reimbursement; (ii) when using federal grant funds subject to the regulations set forth in the following sentence. These Federal Emergency and Grant Procurement Procedures are compliant with Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”).
(b) Federally Declared Emergencies and Federal Grants; Procurement and Contracting Requirements
(i) In the event of an emergency declared by the President of the United States, the City must comply with Federal procurement standards as a condition of receiving public assistance funding from the Federal Emergency Management Agency (FEMA) for contract costs for eligible work. FEMA funding is governed by the Uniform Guidance. (ii) In addition, most federal grant funding is also subject to the Uniform Guidance. Federal grant compliance requires the grantee to conduct procurements in accordance with written procurement policies and procedures that comply with the requirements set forth in the Uniform Guidance. These procurement procedures shall be complied with in connection with utilization of federal grant funding by the City, in addition to any other specific grant requirements.
(iii) These procedures are in addition to and are not intended to replace or supersede the City’s other procurement requirements in this Policy or state law. In the case of a conflict between these procedures, the more stringent requirement shall govern, provided that the more stringent requirement would not violate a federal procurement requirement. In such case, for federally funded contracts, the federal requirement shall govern.
(c) Conflicts of Interest
(i) Standards of Conduct for Conflicts of Interest. No employee, officer or agent of the City shall participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: The employee, officer or agent; any member of his immediate family; his or her partner; or an organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected for award. The City’s officers, employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to sub-agreements. Such a conflict will not arise where the financial interest is not substantial, or the gift is an unsolicited item of nominal intrinsic value. Employees must follow applicable laws, rules, and regulations in regard to conflicts of interest including, but not limited to, the Political Reform Act, the prohibition against contractual conflicts of interest, and guidelines in the California Code of Regulations regarding acceptance of gifts.
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(ii) Violations. Disciplinary actions to be applied for violations of the above standards are as follows.
(1) The violation of these Standards of Conduct by City employees will subject the violator to any disciplinary proceedings or action deemed appropriate by the City Manager. Employees may correct a violation in any manner provided for under the Political Reform Act, and its implementing regulations.
(2) The violation of any of these Standards of Conduct by City officers will require correction of the violation in any manner provided for under the Political Reform Act, and its implementing regulations. (3) Contractors or subcontractors that violate these Standards of Conduct as relates to an active federally funded procurement may be prohibited from bidding on the procurement, or may be subject to other action as deemed appropriate by the City Manager. (4) Agents of the City that violate these Standards of Conduct as relates to federally funded procurements may be prohibited from participation on behalf of the City on federally funded projects, or subject to other action as deemed appropriate by the City Manager. (d) Procurement Standards
(i) Oversight. The City shall maintain administrative oversight of contractors to ensure that contractors perform in accordance with the terms, conditions and specifications of their contracts or purchase orders. (ii) Economical Approach. The City must avoid acquisition of unnecessary or duplicative items. Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. The City will enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. If feasible and it reduces project costs, the City will explore using federal excess and surplus property in lieu of purchasing new equipment and property. When appropriate, the City will investigate using value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions.
(iii) Detailed Records. The City shall maintain records sufficient to detail the history of each procurement. These records will include but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.
(iv) Procurement Issues. The City alone shall be responsible, in accordance with good administrative practice and sound business judgment, for the Packet Pg. 278
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settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes and claims. Protest procedures or information on obtaining the procedures shall be included in the procurement documents.
(e) Competition
(i) Full and Open Competition. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to:
(1) Placing unreasonable requirements on firms in order for them to qualify to do business;
(2) Requiring unnecessary experience and excessive bonding; (3) Noncompetitive pricing practices between firms or between affiliated companies;
(4) Noncompetitive contracts to consultants that are on retainer contracts;
(5) Organizational conflicts of interest, as further detailed herein; (6) Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and
(7) Any arbitrary action in the procurement process.
(ii) Organizational Conflicts of Interest. An unfair competitive advantage could result if a contractor were allowed to submit a bid or proposal for work described in a specification or statement of work that the contractor itself developed. For the purpose of eliminating a potential unfair competitive advantage, and in compliance with applicable state and federal laws and regulations, a contractor that develops or assists in developing specifications, requirements, statements of work, invitation for bids, and/or request for proposals for City procurement is excluded from competing for the resultant procurement, unless an appropriate waiver is issued by the City. All waivers will be assessed by the City on a case-by-case basis. (iii) Geographical Preference. The City shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed instate or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. When contracting for architectural and engineering (A/E) services, geographic location may Packet Pg. 279
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be a selection criterion provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.
(iv) Procurement Transactions. The City shall require the following information for procurement transactions:
(1) A clear and accurate description of the technical requirements for the material, product, or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured, and when necessary, shall set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equal description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offerors shall be clearly stated; and
(2) All requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.
(v) Prequalification Lists. The City shall ensure that all prequalified lists, if used, of persons, firms or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. The City shall not preclude potential bidders from qualifying during the solicitation period. (f) Procurement Procedures
The thresholds below are federal thresholds. If City thresholds are lower, the more restrictive requirement shall govern, notwithstanding the provisions herein. (i) Micro-Purchases. Purchases within the micro-purchase threshold (e.g., currently set at purchases of $10,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the City considers the price to be reasonable. To the extent practicable, the City must distribute micro-purchases equitably among qualified suppliers. (ii) Small Purchases. Purchases within the simplified acquisition threshold (e.g., currently set at purchases of $40,000 or less) shall not be required to be formally bid. Price quotations must be received from no less than three (3) sources.
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(iii) Formal, Sealed Bidding.
(1) Bids are publicly solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is the lowest in price. Formal, sealed bidding is required for purchases greater than the simplified acquisition threshold, which is currently set at $40,000, or as may be adjusted by the Federal Acquisition Regulation, pursuant to 48 CFR § 2.101. (2) This is the preferred method for procuring construction, if a complete, adequate, and realistic specification or purchase description is available; two or more responsible bidders are willing and able to compete effectively and for the business; and the procurement lends itself to a firm-fixed-price contract and the selection of the successful bidder can be made principally on the basis of price.
(3) The City must publicly advertise the Invitation for Bids and publicly open all bids at the time and place prescribed in the invitation. (4) Any contracts awarded pursuant to this procedure shall be to the lowest responsible bidder submitting a responsive bid and shall be for a firm fixed price. Any or all bids may be rejected if there is a sound documented reason.
(iv) Competitive Proposals.
(1) When the nature of a procurement does not lend itself to formal, sealed bidding, the City may solicit competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed-price or costreimbursement type contract is awarded. (2) A request for proposals (RFP) must be publicly advertised, and the City must solicit proposals from an adequate number of sources.
The RFP must identify all evaluation factors and their relative importance; however, the numerical or percentage ratings or weights need not be disclosed.
(3) Evaluation factors that will be considered in evaluating proposals shall be tailored to each procurement and shall include only those factors that will have an impact on the selection decision. a. The City’s procurement officer shall establish a formal evaluation committee, of at least two persons. The size of an evaluation committee should be based on the size and complexity of the goods or services being procured and well balanced and represented by individuals involved with the procurement and/or affected by the goods or services being procured.
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b. The evaluation committee will be charged with responsibility for evaluating proposals in accordance with the evaluation criteria in the solicitation, short listing firms, establishing a competitive range, and/or recommending a firm or firms for contract award.
(4) Any contract awarded based on the competitive proposal procurement process cannot be based exclusively on price or pricerelated factors. (5) If a contract is awarded, it shall be to the responsible firm whose proposal is most advantageous to the City (“best value”), with price and other factors considered.
(v) Competitive Proposals for A&E Services. The competitive proposal procedures above may be used for procurement of architect and engineering (A&E) services, provided that proposers must be evaluated based on competence and qualifications, without regard to price. For A&E procurements, price will not be used as a selection factor. The City will rank proposers based on qualifications only, and attempt to negotiate fair and reasonable compensation with the highest ranked proposer. If negotiations with the highest ranked proposer are unsuccessful, such negotiations will be terminated and the City will commence negotiations with the next highest ranked proposer. This process shall be continued with successive qualified proposers until agreement is reached that is determined to be fair and reasonable.
(vi) Noncompetitive Procurements.
(1) Contracts may be procured through a noncompetitive proposal only when:
a. The item is only available from a single source;
b. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; c. The Federal awarding agency or pass-through entity
expressly authorizes noncompetitive proposals in response to a written request from the City; or
d. Competition is deemed inadequate after the solicitation of a number of sources.
(vii) Public Projects. Public projects shall be procured by the City’s formal contract bid procedures, if any, and the formal, sealed bidding in this section. If there is conflict between the foregoing, the more restrictive requirements shall apply.
(viii) Award.
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(1) Responsible Contractor. The City shall award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources.
(2) Debarment and Suspension. In accordance with 2 CFR 200.213, in connection with the responsibility determination, a check of debarment and suspension using the System for Award
Management (SAM), www.sam.gov, must be performed and
documented in the procurement records prior to award.
(g) Contracting with Small and Minority Firms, Women’s Business Enterprises, and Labor Area Surplus Firms
(i) The City must take all necessary affirmative steps to ensure the use of minority businesses, women’s business enterprises, and labor surplus area firms when possible, as set forth at 2 CFR § 200.321 and detailed below.
The City shall:
(1) Place qualified small and minority businesses and women's business enterprises on solicitation lists;
(2) Assure that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources; (3) Divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises;
(4) Establish delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises;
(5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
(6) Require the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section.
(ii) The City shall document the steps above, and any relevant findings applicable to any of the steps above in its procurement file. (h) Cost and Price
(i) Cost or Price Analysis. The City shall perform a cost or price analysis in connection with every procurement action, including contract modifications, Packet Pg. 283
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in excess of the simplified acquisition threshold. While the method and degree of analysis depend on the facts surrounding the particular procurement situation, the City must, at a minimum, make independent estimates before receiving bids or proposals.
(ii) Profit. The City shall negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where a cost analysis is performed as required by 2 CFR § 200.323(b). (iii) Estimated Costs. Costs or prices based on estimated costs for contracts are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the City under 2 CFR 200.400 et seq.
(i) Payment Procedures
(i) Method of Contracting. Contracts entered into pursuant to these procedures shall utilize only fixed-price, cost-reimbursement, or, to a limited extent, time and materials payment methods.
(ii) Prohibited Methods of Contracting. The City shall not use the cost plus a percentage of cost or percentage of construction cost methods of contracting for any work for which federal reimbursement will be sought. (iii) Time and Materials (“T&M”) Contracts
(1) T&M contracts should be used rarely, and the use of T&M contracts should be limited to a reasonable time period (e.g., no more than 70 hours) based on circumstances during which the City cannot define a clear scope of work.
(2) The City shall only enter into a time and materials contract if all of the following apply:
a. The City has determined and documented in the project file that no other contract is suitable;
b. The contract has a guaranteed maximum price that the contractor exceeds at its own risk; and
c. The City provides a high degree of oversight to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.
(3) The City must define the scope of work as soon as possible to enable procurement of a more acceptable type of contract (i.e., nonT&M). (iv) Separate Invoicing. All purchases made during a proclaimed emergency shall require separate invoicing from routine (i.e., non-emergency related) purchases. All invoices shall state the goods, services, or equipment Packet Pg. 284
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provided and shall specify where the goods or services were delivered. All invoices shall specify the location(s) where the goods or services were used, if possible. Any invoice which fails to properly identify the emergency nature of the purchase and provide details as to the date(s) and location(s), as appropriate, shall not be paid until such errors are corrected by the vendor and re-submitted in correct form.
(v) Auditing of Invoices for Debris Removal. All invoices for debris clearance and removal shall be audited prior to payment to the contractor.
Contractors shall be notified of this requirement prior to the award of any contract for debris clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA’s Publication 325, Debris Management Guide.
(j) Bonding Requirements
(i) Bonding. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold (See 2 CFR 200.88), the City shall require at a minimum:
(1) A bid guarantee from each bidder equivalent to five percent of the bid price.
(2) A performance bond on the part of the contractor for 100 percent of the contract price.
(3) A payment bond on the part of the contractor for 100 percent of the contract price.
(k) Procurement of Recovered Materials
(i) For procurements covered under these procedures, the City and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. In accordance with these requirements, the City shall only procure items designated in the guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.
(ii) This requirement applies to purchases of items when the purchase price of the item exceeds $10,000, or the value of the quantity acquired during the preceding fiscal year exceeded $10,000.
(l) Contract Provisions. The City’s contracts shall contain the applicable provisions described in Appendix II to Part 200 – Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.
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VIII. CONTRACTING
(a) Standard Contract Templates. The City utilizes written contracts to document each party's obligation and to minimize the City's risks during the performance of services or supply of goods. Contracts include standard terms and conditions that serve as the framework and a statement of work that serves as the substance, of the contract. During the course of the relationship between the parties, the contract serves as a point of reference which may quickly resolve any misunderstanding.
(i) The contract templates include forms for: professional and consulting services, maintenance services, software licensing, and the purchase of goods. The type of contract used for a particular procurement is determined by the nature of the transaction. The City has a set of contract templates that can be found on the City’s Intranet. (ii) The Purchasing Division can aid departments in determining which type of contract is needed. Exhibit B provides a brief explanation when certain contract templates should be used.
(iii) Questions regarding contract terms should be directed to the City Attorney’s Office. Under no circumstances should contract terms and conditions be adjusted, changed, or deleted by anyone other than a representative of the City Attorney’s Office.
(b) Non-Standard Contracts. In some cases, vendor services or products are specialized, and a department may wish to use the vendor contract. However, doing so requires specialized legal review. It is important to note that this can add anywhere from two (2) to four (4) weeks to the contracting process. This additional time must be allowed for to ensure that the City’s interests are protected.
(c) Contracts NOT Required. Neither a contract, nor a purchase order is required for the following: payroll-related expenses such as insurance or retirement payments as approved by City Council through the budget, other insurance premiums, petty cash, travel advances or reimbursements, utility payments, membership dues, subscriptions, debt service, various “pass-through” payments, or other mandated expenditures. Claim forms should be used to pay these items.
IX. SURPLUS SUPPLIES AND EQUIPMENT
(a) Submitting Reports. The applicable Department Head or their designee(s) will notify the Purchasing Division in writing of surplus supplies and/or equipment and request disposal. This notification shall list each item, acquisition date or estimated age, acquisition price (if known), condition, and any known defect not readily apparent through visual inspection.
(b) Review. The Purchasing Division shall review the surplus items and determine if any other City department has a use for the property.
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sale for items valued at more than $10,000. For recyclable items equal to or less than $10,000, Purchasing may dispose of those items through a scrap metal or a recycling vendor if the cost to do so does not outweigh the value received in return.
(d) Donation. Surplus items valued less than $10,000, for which the City no longer has an identified use, may be donated to 501(c)3 organizations operating within the city limits of the City of San Bernardino.
(e) Prohibitions. City employees and/or elected official of the City and their immediate families shall not be eligible to purchase such surplus materials, supplies, and equipment.
X. ETHICAL STANDARDS AND FAIR PROCESSES
(a) Ethical Standards for Purchasing. When placing City business with the business community, it is every employee’s responsibility to follow good business and ethical practices and to adhere to the City’s applicable law, policies, and procedures. This is a responsibility that should not be taken lightly as it is a duty under the law. All vendors shall be treated equally and fairly at all times by City personnel, with equal information given to each vendor who participates in a competitive situation. City employees must discharge their duties under this Policy in an impartial manner to foster the integrity of the City’s purchasing function and to assure fair and open competition for City business and the selection of competent, responsible vendors.
(b) Conflicts of Interest.
(i) No employee, officer, or agent of the City may participate in the selection, award, or administration of a contract pursuant to this Policy he or she has a real or apparent conflict of interest. A conflict of interest would arise when the City employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a material benefit from a vendor considered for a contract. The officers, employees, and agents of the City may neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts, subject to any applicable standards for determining whether a financial interest is not substantial, or a gift is an unsolicited item of nominal value.
(ii) California Government Code § 1090 prohibits City officers and employees from having a financial interest in any contract "made" by them or by any board or body of which they are members. Virtually all City Council members, officers, employees, and consultants of a public entity are considered public officials under Government Code §1090. In a case where a consultant is developing a scope of work for a future project, creation of that scope of work is considered part of the “making” of the contract and defined by Section 1090. As such the consultant would be prohibited from submitting a proposal and/or being awarded a contract for the work.
(c) Communications Related to Solicitations.
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(i) Bidders, proposers, and other potential vendors shall not contact City officials outside of the solicitation process and shall not make any efforts to unduly influence City decision-making or otherwise gain an unfair advantage outside of the solicitation process. Improper contacts or attempts to influence the selection process shall be grounds for automatic rejection.
(ii) To the maximum extent feasible, City representatives shall provide each vendor with the same information related to the solicitation. For formal bids, RFP’s and RFQ’s, such information shall be provided in the form of an addendum to the solicitation.
(d) Confidentiality and Transparency.
(i) Negotiations related to any solicitation shall be maintained with strict confidentiality. No City official or employee with knowledge of the City’s bargaining position, or of the non-public position of other bidders or proposers, shall disclose such information for purposes of aiding a particular vendor, giving an advantage to a particular vendor over other bidders or proposers, or otherwise corrupting or frustrating the City’s procurement efforts. This Section does not prevent the City’s designated representative from engaging in negotiating tactics to obtain the best value to the City.
(ii) All bids, proposals, quotes, and any related documents, including communications such as e-mails related to solicitations, are public records and shall be made available to the public upon request. However, public records may be withheld from disclosure while negotiations are pending, in accordance with applicable law.
(iii) To the extent a solicitation involves proprietary information or trade secrets, vendors should mark the proprietary information as confidential.
Information that is not proprietary or a trade secret shall not be marked confidential. Unless a law specifically and expressly allows price information to be confidential, all price proposals and other financial terms shall be public.
(iv) City Council decisions on all contract awards shall strictly comply with the Ralph M. Brown Act (Government Code sections 54950, et seq.). City Council members and staff should not engage in any series of communications that result in a majority of the City Council deliberating on a proposed contract award outside of a properly noticed City Council meeting.
(e) Disclosures.
(i) Solicitations should require that bidders, proposers and other potential vendors disclose: (1) any ex parte contacts made by the vendors or made by City officials to the vendors outside of the official procurement process, (2) any gifts, loans or other benefits (other than campaign contributions) made to City officials within the 12 months preceding the solicitations, (3) whether the vendor has knowledge that a City official will be financially interested in the contract. Vendors shall promptly notify the City if any City official requests any payment, contribution or any other quid pro quo in exchange for award of a contract.
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(ii) Vendors may be required by the Political Reform Act, and/or the Fair Political Practices Commission to disclose financial interests on the Form 700. Such vendors shall comply with all disclosure requirements. (f) Discipline/Censure. Violations of the ethical and fair process requirements contained in this Section may be grounds for discipline (if by an employee) or censure (if by an elected official). Criminal violations, such as willful violations of Government Code section 1090, may be reported to the San Bernardino County District Attorney.
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EXHIBIT A
EXPENDITURE AND AUTHORIZATION THRESHOLDS REFERENCE
Purchasing Requirements by Expenditure Threshold
Purchases up to $10,000 (Micro-Purchases):
• Purchases up to $10,000 may be purchased using a Procurement Card (“P Card”) or through a check request.
• No formal bids or quotes are required.
• Purchases of $10,001 and over shall not be divided into multiple smaller purchases or invoices to circumvent required procedures. This is “split purchasing” and is unlawful and a violation of the Policy and the San Bernardino Municipal Code. (M.C. § 3.04.090).
Purchases Between $10,001 and $40,000 (Smal Purchases):
• Purchases in this category are processed informally through the simplified process outlined in Section III of this Policy and may be processed directly by the department making the purchase.
• Competitive Bidding may be used for purchases under $40,000 at the discretion of the Agency or Department Director.
Purchases Above $40,000:
• Purchases in this category are subject to competitive bidding or competitive selection outlined in Section IV of this Policy, depending on the type of purchase (formal procurement procedures).
Purchasing Authority
Purchases up to $50,000:
• Purchases in this category may be authorized and signed by Agency/Department Directors and/or the City Manager and/or their designee.
Purchases between $50,001 and $100,000:
• Purchases in this category may only be authorized by the City Manager or their designee.
Purchases over $100,000:
• Purchases in this category may only be authorized by the Mayor and City Council.
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EXHIBIT B
CONTRACTING GUIDE
Under this Policy, certain contract types are likely to arise for the purchase of goods and services. Here is a brief description of an appropriate situation to use each template.
Goods Purchase Agreement – To be used when the City desires to purchase goods totaling above $5,000.
Maintenance Services Agreement - To be used for routine maintenance/repair work of a nonprofessional nature, such as: landscape, traffic signals, electrical, street sweeping, HVAC, and plumbing.
Nuisance Abatement Services Agreement – To be used when the City desires to engage a third party to take action to remove a public nuisance.
On-Call Professional Services Agreement - To be used when the City desires to engage a professional to engage in certain services on an as-needed basis.
Professional Services Agreement – To be used for professional consultant work, such as non– design engineering, economic, accounting, legal, financial, and administrative work.
Professional Services Agreement (Federal) – To be used for professional consultant work that also involves the use of Federal funds.
Professional Software Services Agreement – To be used for the purchase of software services.
Request for Proposals – To be used when the City desires to solicit services or purchase goods which either require bidding or for which bidding is appropriate. Please note that requests for proposals that relate to state or federal funded projects may require additional terms in accordance with grant agreements.
Request for Qualification (RFQual) – To be used when the City desires to solicits firms to submit information about their qualification and capabilities to perform the type of work associated with a proposed project. An RFQual may be used as a pre-qualification step to engaging a service provider. If an RFQual is required, only those candidates who successfully respond to it and meet the qualification criteria will be included in the subsequent procurement process. An RFQual will contain specific reference to selection criteria.
Request for Quote (RFQ) – To be used when the City desires to solicit firms to submit pricing for products or services where the requirements are standardized or produced in repetitive quantities.
Short Form Services Agreement – To be used for low risk or uncomplicated services that do not require formal bidding. Should not be used for public works projects.
Vendor Services Agreement – To be used when the City desires to solicit services other than Professional, Design, or Construction Services.
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Ordinance No. MC-1605
ORDINANCE NO. MC-1605
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL
OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
AMENDING CHAPTER 3.04 OF THE CITY OF SAN
BERNARDINO MUNICIPAL CODE RELATING TO
PURCHASING
WHEREAS, the City San Bernardino, California (“City”) is a chartered city and municipal corporation, duly organized under the California Constitution and laws of the State of California; and
WHEREAS, the City is dedicated to operating efficiently, effectively and streamlining operations where possible; and
WHEREAS, the City’s current purchasing system is outlined in Chapter 3.04 of the City of San Bernardino Municipal Code; and
WHEREAS, the City’s Purchasing Division has conducted a review of the City’s purchasing system and has identified areas of improvement; and WHEREAS, one such improvement is to streamline the current purchasing system by also establishing a formal purchasing policy; and
WHEREAS, the implementation of a purchasing policy will allow the City to quickly update certain aspects of the purchasing system in order to address issues; and WHEREAS, as part of this purchasing system overhaul includes an increase in spending authority for the City Manager, allowing the City Manager to enter into agreements up to a value of $100,000; and
WHEREAS, this increased flexibility will allow the City to more quickly respond to needs and increase the level of services provided.
THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. Amendment of Chapter 3.04. Chapter 3.04 of Title 3 of the San Bernardino Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 3.04
PURCHASING SYSTEM
Sections:
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Ordinance No. MC-1605
3.04.010 Adoption of Purchasing System
3.04.020 Purchasing Division
3.04.030 Bidding Requirements
3.04.040 Approval Authority
3.04.050 Purchase Orders and Procurement Cards
3.04.060 Encumbrance of Funds
3.04.070 Emergency Purchases
3.04.080 Surplus Supplies and Equipment
3.04.090 Penalty for Split Purchases
3.04.100 Local Bidders
3.04.110 Reserved
3.04.120 Reserved
3.04.130 Reserved
3.04.140 Reserved
3.04.010 Adoption of Purchasing System
A. Establishment. In order to establish efficient procedures for the purchase of supplies, materials and equipment, and contracted services, to secure for all departments or agencies of the City, supplies, materials, equipment, and services at the lowest possible cost commensurate with the quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing functions and to assure that quality of purchases, a centralized purchasing system is adopted. Except as specified herein, there shall be no exemption from centralized purchasing and no Agency or Department shall be authorized to purchase, or contract for the purchase of supplies, services or equipment independently of the Purchasing Division.
The Municipal Water Department and the San Bernardino Public Library shall not be subject to this centralized purchasing system; however, the Board of Water Commissioners and the Board of the San Bernardino Public Library shall employ procedures substantially in compliance with the provisions of this Chapter as such may be applicable.
B. Purchasing Policy. All purchases of goods, supplies, equipment, and services shall be made in accordance with the formal Purchasing Policy in effect at the time of the purchase. The Purchasing Policy shall be developed by staff and adopted by the Mayor and City Council. The Purchasing Policy may be changed from time to time by City Council Resolution in order to remain in compliance with necessary law and to address the evolving procurement needs of the City.
C. Vendor Lists. The City may utilize the processes of this Chapter and Purchasing Policy to procure vendors who will be eligible or preferred to provide goods or services to the City on an as-needed basis.
D. Exemptions. This Chapter shall not apply to the following:
1. Purchases from, or sales to a government or governmental agency, or through any advantageous governmental contract approved by the Council, or to the purchase of election supplies, or to purchases and/or services or service contracts relating to litigation or prosecution Packet Pg. 293
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or investigations thereof, or to purchases and/or services or service contracts relating to fire and police investigations, or to the purchases and/or services or service contracts relating to board up or demolition of buildings or structures.
2. Purchases from a vendor or manufacturer which, through the City's bidding procedure, or other government or governmental agency's bidding procedure, has established a price at which such a vendor or manufacturer is willing to sell to the City. During such a bid procedure more than one responsive bid must have been received.
3. Purchases approved by the Mayor and City Council.
4. Purchases of less than ten thousand dollars ($10,000).
5. Public Works Projects. Procurement procedures for Public Works Projects are defined in Chapters 12.20, 12.21 and 12.24 of the San Bernadino Municipal Code.
6. Sole Source Procurements as more defined in the Purchasing Policy.
7. Emergency Procurements as more defined in Section 3.04.070 of the Municipal Code and the Purchasing Policy.
8. Federal/Grant-Funded Procurement to the extent that this Chapter and Purchasing Policy is inconsistent any federal, grant or other funding source requirement for a particular purchase. In that event, the federal, grant or other funding source procurement requirements shall control.
9. Inadequate Competition as more defined in the Purchasing Policy.
3.04.020 Purchasing Division
Unless otherwise exempted under this Chapter, the purchase and sale of all supplies, materials, equipment, and services shall be the responsibility of the Purchasing Division. The Purchasing Division is part of the Finance Department, which is responsible for carrying out written administrative procedures adopted by the City Council related to procurement. The Purchasing Division Manager is responsible for the Purchasing Policy, and will develop, advise, review, audit and ensure compliance throughout the purchasing process as the City’s subject matter expert.
3.04.030 Bidding Requirements
The procurement process used to purchase supplies, material, equipment, and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase.
A. Purchases up to $10,000
Purchases up to $10,000 may be purchased using a Purchasing Card or through a check request with no requirement for formal bids or quotes.
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Ordinance No. MC-1605
B. Purchases between $10,001 and $40,000
Purchases between $10,001 and $40,000 are processed informally, through vendor quotations and may be processed directly by the department making the purchase. The informal bidding process is more particularly described in the Purchasing Policy.
C. Purchases above $40,000
Purchases in this category are subject to formal competitive bidding or competitive selection depending on the type of purchase. The formal competitive bidding process is more particularly described in the Purchasing Policy.
1. Reporting. All contracts in this category signed by the City Manager, Agency Directors, Directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each Regular City Council meeting during the City Manager Update.
3.04.040 Approval Authority
The authority to purchase supplies, material, equipment, and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase.
Purchasing authority are based on the following amounts:
A. Purchases up to $50,000
Purchases in this category may be authorized by the Agency/Department Directors and/or the City Manager.
B. Purchases between $50,001 and $100,000
Purchases in this category may only be authorized by the City Manager or their designee.
C. Purchases over $100,000
Purchases in this category may only be authorized by the Mayor and City Council.
3.04.050 Purchase Orders and Procurement Cards
Purchase of supplies, materials, and equipment shall be made only by purchase order or procurement card, whichever is appropriate.
3.04.060 Encumbrance of Funds
The Purchasing Division shall not issue any purchase order for supplies, materials or equipment unless there exists an unencumbered appropriation in the account against which the purchase is to be charged, and until the same has been approved by the Budget Division of the Finance Department.
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3.04.070 Emergency Purchases
In case of an emergency, which is so urgent as to preclude advance action by the Mayor and City Council and which requires purchase of supplies, materials, equipment or contractual services, the City Manager shall have the authority to authorize securing in the open market any such supplies, materials, equipment or contractual services. This emergency authority shall extend to all purchases, irrespective of the fact that the amount might exceed the authorized thresholds outlined in Section 3.05.020 of the Municipal Code. An explanation of the emergency circumstances shall be filed with the Mayor and City Council within forty-eight (48) hours of the emergency purchase.
3.04.080 Surplus Supplies and Equipment
A. All Agencies and Departments shall submit to the Purchasing Division reports showing all supplies, materials and equipment which are no longer used or usable or which may have become obsolete, unsuitable or worn out. The Purchasing Division Manager shall have authority to sell said supplies, materials and equipment, or to exchange the same for, or trade in the same on, new supplies, materials and equipment. Such sales, exchanges or trade-ins shall be made to the highest and best bidder pursuant to the procedures in the Purchasing Policy, or shall be made at a public auction as hereinafter set forth in this Section 3.04.100.
B. Public Auction. A notice describing the property in sufficient detail for its identification shall be prepared by the Purchasing Division and shall be given at least five days before the time fixed therefore by publication once in an established newspaper or other publication of general circulation published in the City.
C. City officers shall not be purchasers at any such public auction authorized, conducted, or administered by them in their official capacity, nor shall any City officer or employee directly or indirectly submit a bid at the auction if they have participated in the preparation or conduct of the auction in their official capacity.
D. The property so offered for sale shall be sold to the highest bidder for cash, provided that the Purchasing Manager may, at their discretion, fix a minimum sale price and may refuse to sell unless the minimum price is offered, and may further refuse to sell unless a deposit of security is immediately made.
E. Any property sold at public auction shall be provided to the purchaser upon full payment of the purchase price.
F. The proceeds of the auction sale or sales shall immediately be deposited with the Department of Finance and deposited into the General Fund of the City.
3.04.090 Split Purchases
It shall be unlawful to split or separate into smaller purchases, a purchase in order to bring the purchase within the provisions of any exemption or less stringent procedure provided herein.
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Ordinance No. MC-1605
3.04.100 Local Bidders
Any formal or informal bid submitted by a local bidder for goods or materials pursuant to this Chapter shall receive a five percent (5%) credit for comparison purposes with other bidders when a local credit is allowable under the law. For the purpose of this Section, "local bidders" shall be bidders with (1) fixed facilities with employees within the City of San Bernardino’s jurisdiction, (A PO Box or residential address is insufficient unless it is a home-based business, in which case the residential address may be used) and (2) an appropriate City of San Bernardino Business License.
3.04.110 Reserved
3.04.120 Reserved
3.04.130 Reserved
3.04.140 Reserved”
SECTION 3. CEQA. The City Council determines that the Ordinance is categorically exempt from further review per State CEQA Guidelines (14 Cal. Code Regs., § 15000 et seq.).
The whole of the Ordinance is exempt, because the code amendment is an administrative activity which will not result in a direct or reasonably foreseeable indirect physical change to the environment. (§ 15060(c)(2).) The whole of the Ordinance is also exempt because the code amendment is not a “project” as defined by section 15378, since it has no potential for resulting in a direct or indirect physical change to the environment. (§ 15060(c)(3).) The City Council hereby directs City staff to file a Notice of Exemption within five days of the adoption of this Ordinance.
SECTION 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this ordinance, or any part thereof, is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase be declared unconstitutional. If for any reason any portion of this ordinance is found to be invalid by a court of competent jurisdiction, the balance of this ordinance shall not be affected.
SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption.
SECTION 6. Notice of Adoption. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California.
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Ordinance No. MC-1605
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2023.
Helen Tran, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
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Ordinance No. MC-1605
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-_____, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the XX day of , 2023. Ordinance No. MC-____ was approve passed and adopted at a regular meeting held the XX day of , 2022 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023.
Genoveva Rocha, CMC, City Clerk
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Purchasing Policy and Municipal Code
Update
Barbara Whitehorn, Agency Director of
Administrative Services
December 7, 2022
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Purchasing Policy and Municipal Code
Presentation Overview
• Background
• Current Code and Challenges
• Goals of the Proposed Change
• Key Changes to the Municipal Code
• Bidding Requirements, Approval Authority
• Emergency Purchases, Local Bidders
• Policy
• Purpose, Sections
• Important to Note
• Discussion
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Purchasing Policy and Municipal Code
3 • Current Municipal Codeextremely detailed
• Job duties of Purchasing Agent
• Details how to and where to
post surplus items
• Requires departments to
submit estimates of supply
needs
Code should be focused on governance
• Must post bids in
newspapers
• Number of days bids must
be posted in local print
newspaper
• Separate sections for
contracting services,
purchasing supplies and
materials
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Purchasing Policy and Municipal Code
4 Code
Policy
Procedure
Governance
Minimal detail
Policy framework
More detail
Day-to-day
operations
High level of detail
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Purchasing Policy and Municipal Code
• Simplifying the Municipal Code
• Clarifying the Thresholds for Bidding and
Approval Authority Levels
• Removing requirement for Purchase
Orders for all purchases over $500
• Clarifying and improving Local Vendor
Section Packet Pg. 304 5
Purchasing Policy and Municipal Code
• Purchases up to $10,000
• May use a P-Card or check request, no formal bid
or quotes required.
• Purchases between $10,001 and $40,000
• Informal; vendor quotations. May be processed
by Department.
• Purchases above $40,000
• Formal competitive bidding or selection required.
6 3.04.030 Bidding Requirements
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Purchasing Policy and Municipal Code
• Purchases up to $50,000
• May be authorized (signed) by the Agency/Department
Director and/or the City Manager and/or their designee. • Purchases between $50,001 and $100,000
• May be authorized (signed) by the City Manager and/or their designee.
• Purchases above $100,000
• May only be authorized by the Mayor and City Council. 7 3.04.040 Approval Authority
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Purchasing Policy and Municipal Code
• Added (italics):
• An explanation of the emergency
circumstances shall be filed with the Mayor
and City Council within forty-eight (48) hours of
the emergency purchase.
8 3.04.070 Emergency Purchases
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Purchasing Policy and Municipal Code
• Change
• 1% credit for comparison changed to 5%
• Clarification
• Local bidders shall be bidders with:
1) Fixed facilities with employees within the jurisdiction of the City of San Bernardino… and
2) An appropriate City of San Bernardino Business
License.
9 3.04.100 Local Bidders
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Purchasing Policy and Municipal Code
10 Code
Policy
Procedure
Governance
Minimal detail
Policy framework
More detail
Day-to-day
operations
High level of detail
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Purchasing Policy and Municipal Code
11 Policy Bridges Governance and Day-to-Day Operations
Municipal
Code
Policy
Operations
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Purchasing Policy and Municipal Code
1. To ensure compliance with all current laws and regulations
2. To promote transparency of the City’s procurement activities
3. To establish standardized, cost-effective, and efficient purchasing methods
4. To ensure continuity of City operations
5. To promote fair competitive processes
6. To maintain integrity and fairness
7. To support the City’s mission and serve the best interest of the public 12 Purpose
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Purchasing Policy and Municipal Code
I. Purpose
II. Purchasing Expenditure and Approval Thresholds
III. Informal Procurement
IV. Competitive Procurement
V. Specific Situations
VI. Exemptions
VII. Bid Protests
VIII. Contract Development
IX. Surplus Supplies and Equipment
X. Glossary of Terms
13 Sections
Sections
provide detail
on areas
governed by
Municipal
Code, law
and/or federal
regulations.
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Purchasing Policy and Municipal Code
• The Purchasing Division Manager does
not have direct purchasing authority
• Internal Control
• The Purchasing Division Manager is the key
Internal Control for the Purchasing function
citywide
14 Important to Note
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Purchasing Policy and Municipal Code
• Disadvantaged Business Enterprise and
Small Business Enterprise
• Specific affirmative steps are required
under the new Policy to ensure minority,
women-owned and small businesses are
used when possible
15 Important to Note
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Council Direction- December 7, 2022
• Requested Additional Reporting for
contracts of $40,000 signed by Directors,
Agency Directors, the City Manager and/or
their designees.
• Reporting to be included in City Manager’s
Report to Council.
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Council Direction- December 7, 2022
Municipal Code
Section 3.04.030 Bidding Requirements
C. Purchases Over $40,000
1. Reporting. All contracts in this category signed by the City Manager, Agency Directors, Directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each Regular City Council meeting during the City Manager Update.
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Council Direction- December 7, 2022
Purchasing Policy
Section II. Purchasing Expenditure and Approval
Thresholds
(a) Purchasing Requirements by Expenditure Threshold
iii. Purchases Above $40,000
2. Reporting. All contracts in this category signed by the City Manager, Agency Directors, Directors and/or their designees shall be reported (in list form) to the Mayor and City Council at each Regular City Council meeting during the City Manager Update.
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DISCUSSION
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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: December 7, 2022
To: Honorable Mayor and City Council Members
From: Robert D. Field, City Manager;
Barbara Whitehorn, Agency Director of Administrative Services Department: Finance
Subject: Adopt New Purchasing Policy and Introduce
Ordinance No. MC-1605 amending Section 3.04 of the
Municipal Code. (All Wards)
Recommendation
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Introduce, read by title only, and waive further reading of Ordinance No. MC-1605 amending Section 3.04 of the Municipal Code of the City of San Bernardino, California, and
2. Adopt Resolution 2022-246 adopting the Purchasing Policy for the City of San Bernardino.
Background
Over the last two years, the Finance Department has been working to build a robust, responsive Purchasing Division. During the bankruptcy, purchasing personnel in Finance was cut to one Assistant Buyer who was tasked with coordinating procurement for the entire City. Out of necessity, the majority of procurement functions were decentralized, and departments completed most of their own procurement, from small purchases of supplies to major requests for proposals for capital projects with limited assistance from Finance.
While this worked when there was little funding available, as the City has reached financial stability and is now able to invest in ongoing service and capital projects, having a centralized purchasing model backed by well-defined Policy and Municipal Code is of paramount importance. In August, Council requested that the purchasing thresholds of the City Manager and Purchasing Division Manager be added to a future Council meeting agenda, recognizing that the current $49,999 maximum threshold for the City Manager’s contracting authority is low relative to the size of the City of San Packet Pg. 319
Bernardino and the business that the City conducts.
To provide the foundation for good governance, the Municipal Code governing purchasing was rewritten and simplified. A Purchasing Policy (Attachment 4) has been developed in alignment with the Municipal Code that will support operations and ensure appropriate internal controls are in place.
Discussion
As briefly discussed above, the Municipal Code and the Purchasing Policy are two key aspects of procurement that work together to provide the foundation of good governance and the policy framework for citywide procurement. They must complement each other to ensure legal compliance and support efficient and effective operations.
Municipal Code. The San Bernardino Municipal Code was originally developed with very specific procedures for each aspect of the procurement process (Attachment 1).
In the redline (Attachment 2), there are numerous changes recommended, removing much of the procedural guidance and adding thresholds for bidding requirements and approval levels, as well as simplifying the language. The changes are intended to put in place a governing Municipal Code that supports Purchasing Policy, internal control, and good governance. The Municipal Code and the Purchasing Policy work together to ensure the City does business legally, efficiently, and effectively. When governance and internal policy are properly aligned, day-to-day operations related to procurement can run smoothly. The Municipal Code should provide the framework from which policies are developed; policies then provide more specific rules, from which procedures are built for efficient operations.
Below the most significant changes to the Municipal Code are outlined.
Section 3.04.030 Estimates of Requirements – eliminated, replaced This section required departments to submit estimates to the City Administrator for their supplies, materials and equipment needs for the year. This kind of estimate is no longer necessary because the City contracts with Staples for office supplies and individual departments bid materials and equipment either individually or collectively depending on needs.
3.04.030 Bidding Requirements (Summary) - New
This section was added to specify at what threshold competitive bids or proposals are required versus informal or formal quotes. The procurement process used to purchase supplies, material, equipment and contracted services is dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase.
A. Purchases up to $10,000 may be purchased using a Purchasing Card or through a check request with no requirement for formal bids or quotes.
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B. Purchases between $10,001 and $40,000 are processed informally, through vendor quotations and maybe processed directly by the department making the purchase. The informal bidding process is more particularly described in the Purchasing Policy.
C. Purchases above $40,000 are subject to formal competitive bidding or competitive selection depending on the type of purchase. The formal competitive bidding process is more particularly described in the Purchasing Policy.
Section 3.04.040 Requisitions – eliminated, replaced
This section stated that all using departments were to submit requisitions for supplies, materials and equipment on standard requisition forms to the Purchasing Agent. The City no longer uses requisition forms; this model is more reflective of a central stores function in which a City maintains an inventory in a centralized location and “sells” the supplies, materials, and equipment to departments as needed. With the availability of just-in-time delivery, this model is no longer commonly used.
3.04.040 Approval Authority (Summary) – New
This section was added to specify authorization levels. It provides the authority to purchase supplies, material, equipment, and contracted services dependent upon the total dollar amount of the goods or services to be purchased and the type of purchase. Purchasing authority is based on the following amounts:
A. Purchases up to $50,000 may be authorized by the Agency/Department Director and/or the City Manager.
B. Purchases between $50,001 and $100,000 may only be authorized by the City Manager or their designee.
C. Purchases over $100,000 may only be authorized by the Mayor and City Council.
3.04.070 Formal Contract Procedure – eliminated, replaced This Section has been eliminated; it outlined specific procedures, as opposed to providing a governance framework for the development of Policy and operational procedure.
3.04.070 Emergency Purchases (Summary) - formerly 3.04.075 The only substantive change to this section is adding a requirement that the Mayor and City Council be notified of any emergency purchases within forty-eight Packet Pg. 321
(48) hours of the purchase.
3.04.080 Open Market Procedure – eliminated, replaced
Like previous Section 03.04.070 Formal Contract Procedures, this section provided procedures for purchases in the open market, as opposed to providing a governance framework for the development of Policy and operational procedure.
3.04.080 Surplus Supplies and Equipment (Summary) – formerly 3.04.100 The only substantive change to this section is removing language restricting the sale of some surplus to non-profits and sister Cities with Mayor and City Council action. The Mayor and City Council are always able to use their prerogative to direct the City Manager in the treatment of particular surplus items.
3.04.085 Services; 3.04.090 Annual Audit; 3.04.105 Sale of Surplus Property;
3.04.110 Surplus Vehicles and Equipment; 3.04.115 City Manager – eliminated Like previous Sections 3.04.070 Formal Contract Procedures and 3.04.080 Open Market Procedures, Sections 3.04.085 Services, 3.04.105 Sale of Surplus Property and 3.04.110 Surplus Vehicles and Equipment provide procedures for the purchase of services, the sale of surplus property, and the sale of surplus vehicles and equipment, as opposed to providing a governance framework for the development of Policy and operational procedure. There remains a section for surplus, 3.04.080 Surplus Supplies and Equipment, and Section IX of the Purchasing Policy provides more specific detail and guidance. Within the Purchasing Policy there are six sections dedicated to bid, proposal, and contracting procedures:
III. Informal Procurement Process
IV. Formal Procurement
V. Specialized Procurement Situations
VI. Exemptions
VII. Bid Protests
VIII. Contracting
Section 3.04.115 City Manager of the Municipal Code assigned the City Manager the same duties previously assigned to the Purchasing Agent and is unnecessary. Section 3.04.090 Annual Audit is unclear in its intent; referring to an annual audit of accounts established pursuant to the authority granted under this Chapter. However, the creation of accounts is not within the purview of Purchasing. The annual external audit includes testing of the purchasing process to ensure that the City maintains adequate and appropriate internal controls and separation of duties. These two sections have been eliminated.
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3.04.100 Local Bidders – formerly 3.04.125
This section has been updated to change the one-percent (1%) local vendor “preference” comparison credit for goods and materials bids to five-percent (5%), which is more in line with other local governments, to clarify that the vendor should have facilities within the City of San Bernardino to be considered a “local vendor,” and that they are required to hold a valid Business License with the City.
The Purchasing Policy includes additional language about Local Vendor Outreach, which will be a required part of the standard bid or request for proposal procedures to ensure that local vendors are aware of any opportunities to do business with the City and can submit a bid or proposal for any work for which they may be qualified.
Purchasing Policy. The Purchasing Policy takes a much deeper dive into the specifics of each area of procurement, providing detailed guidance, definitions, examples, exceptions and prohibitions. The Policy supports the following purposes and objectives:
1. To ensure compliance with all current laws and regulations
2. To promote transparency of the City’s procurement activities
3. To establish standardized, cost-effective, and efficient purchasing methods
4. To ensure continuity of City operations
5. To promote fair competitive processes
6. To maintain integrity and fairness
7. To support the City’s mission and serve the best interest of the public The Policy lays out the same bid/proposal thresholds and approval authority levels, and provides specific detail on conflicts of interest, informal and formal purchasing processes, competitive procurement, prohibitions, specialized procurement situations including disadvantaged business enterprise, small business enterprise, local vendor preference and outreach, and grant-funded procurement, exemptions, bid protests, contracting, and surplus supplies and equipment.
Internal Control
It is important to note that neither the Policy nor the Municipal Code provides a separate purchasing authorization level for the Purchasing Division Manager. This decision was made after considerable research of best practices and discussion with subject matter experts. While in very large organizations (counties, for profits companies with multiple locations) purchasing agents and managers often had direct authority to make purchases, this was almost never the case in municipalities. In municipalities, the Purchasing Manager and Purchasing Division act as the key internal control point for the authorized purchasers (P-Card users, Directors, City Manager), ensuring that those making purchases adhere to Policy, Municipal Code, relevant law, regulations and any grant requirements. In very large organizations, this internal control function may fall under the purview of a separate fully staffed internal audit function. In the very large organizations with the purchasing agent structure, every division in the organization has at a minimum one assigned purchasing agent, Packet Pg. 323
because in this case often only agents have authorization to make purchases. This structure requires considerably more full-time staff and is a model that is financially impractical for most cities.
As mentioned above in the Municipal Code Section 3.04.100 Local Bidders, the Policy reiterates the local vendor preference of 5%, and requires local vendor outreach for all competitive bids and proposals as follows:
1. Local Vendor Preference.
As legally allowed, specifically in the procurement of goods and materials, the City will provide a 5% local vendor credit for vendors physically located within the City of San Bernardino. As specified in Municipal Code Section 3.04.100, the vendor must maintain fixed facilities within the jurisdiction of the City of San Bernardino and hold an appropriate City of San Bernardino Business License.
2. Local Vendor Outreach.
Outreach to local vendors will be included in all informal and formal quotes, bids, requests for proposals, and requests for qualifications.
The Policy addresses the goals of the disadvantaged business enterprise (DBE) Program as follows:
The City shall take affirmative steps to assure that minority businesses, women’s business enterprises, and small businesses are used when possible. Affirmative steps include:
1. Placing qualified small and minority businesses and women’s business enterprises on solicitation lists
2. Assuring that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources
3. When economically feasible, dividing large projects into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women’s business enterprises
4. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women’s business enterprises
5. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce
6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed immediately above.
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The Purchasing Division was able to successfully recruit and onboard a Disadvantaged Business Enterprise Specialist, who began employment with the City on November 7. The Purchasing Division currently consists of four authorized fulltime equivalent positions. While this is not enough to centralize all procurement, the proposed changes to the Municipal Code and new Policy are intended to enable departments to procure goods and services up to $50,000 within their own authority with confidence that they have the tools to make the right procurement decisions for their department and the City, while the Purchasing Division provides expert advice and assistance as needed.
2021-2025 Strategic Targets and Goals
The changes to the Municipal Code and the adoption of the Purchasing Policy align with Key Strategic Goals 1.a. Establish clear policy direction and predictable organizational structures, and 1.d. Create a framework for spending decisions.
Fiscal Impact
There is no fiscal impact to the City in adopting the new Purchasing Policy and in introducing the Ordinance amending the Municipal Code.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Introduce, read by title only, and waive further reading of Ordinance No. MC-1605 amending Section 3.04 of the Municipal Code of the City of San Bernardino, California, and
2. Adopt Resolution 2022-246 adopting the Purchasing Policy for the City of San Bernardino.
Attachments
Attachment 1 – Municipal Code Section 3.04
Attachment 2 – Municipal Code Section 3.04 Redline
Attachment 3 – Resolution No. 2022-246 Adopting Purchasing Policy Attachment 4 – Exhibit A – Proposed Purchasing Policy
Attachment 5 – Ordinance No. MC-1605 to Amend Municipal Code Section 3.04
Attachment 6 – PowerPoint Presentation Purchasing Policy Ward:
All Wards
Synopsis of Previous Council Actions:
August 3, 2022 Mayor and City Council requested that am item be added to a future meeting to give the Chief Procurement Officer a Packet Pg. 325
dollar authorization of $50,000 and increase City Manager’s signing authority to $100,000 (All Wards) – Council Member Alexander
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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: January 18, 2023
To: Honorable Mayor and City Council Members
From: Daniel Hernandez, Agency Director of Public Works, Operations and Maintenance
Department: Public Works
Subject: Public Hearing on Annexation No. 28 to Community Facilities District 2019-1 (Ward 5)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Hold a Public Hearing; and
2. Adopt Resolution No. 2023-001 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 28); and
3. Hold a special landowner election and canvas the election; and
4. Adopt Resolution No. 2023-002 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 28); and
5. Introduce, read by title only, and waive further reading of Ordinance No. MC1608 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and
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6. Schedule the adoption of Ordinance No. MC-1608 for February 1, 2023.
Background
On December 7, 2022, the Mayor and City Council adopted Resolution No. 2022- 263, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for January 18, 2023, on the proposed annexation of the said territory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on December 8, 2022, at 1:17 p.m. in Book 90 Page 86, Document No. 2022-0393680 of Maps of Assessment and Community Facilities Districts with the San Bernardino County Recorder.
The Resolution of Intention was adopted by the Mayor and City Council in response to a petition filed by the property owner of approximately 24.83 gross acres of a vacant residential lot within the City, requesting that the City assist them in annexing their properties into CFD No. 2019-1 under the Mello-Roos Act. The proposed project will consist of 20 detached single-family lots. The State legislature enacted the Mello-Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2019-1 to levy a special tax to cover the costs associated with the maintenance of public improvements.
The public facilities and services proposed to be financed within the territory to be annexed to the District are the following:
1. Maintenance of median landscaping and other public improvements installed within the public rights-of-way; and
2. Public lighting and appurtenant facilities, including streetlights within public rights-of-way and traffic signals; and
3. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District, including the contract administration and for the collection of reserve funds.
The proposed area to be annexed into the CFD will be included in Tax Zone 29 and is located on N Little League Drive, north of W Meyers Road, as shown in Attachment #12.
The maximum annual special tax for this development has been calculated to be $347 per unit for FY 2022/23. Annual Special Tax is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The property owners have Packet Pg. 328
agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982. The property owners have submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello-Roos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.
In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below:
• Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted December 7, 2022.
• Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. • Resolution declaring the results of the election and directing the recording of the notice of special tax lien.
• Amend the Ordinance and order the levy and collection of special taxes in the District.
With the adoption of the Resolutions and the first reading of the amended Ordinance, the second reading of the amended Ordinance would be scheduled for February 1, 2023.
Discussion
The Resolution of Intention called for a public hearing to be held on January 18, 2023, on the issue of the annexation of territory into CFD No. 2019-1. Under the Mello-Roos Act, the Mayor and City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the Mayor and City Council may adopt the resolution establishing the CFD.
Adoption of Resolution No. 2019-178 on July 17, 2019, established CFD 2019-1, pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The Packet Pg. 329
landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello-Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be returned by the close of the public hearing. If the Mayor and City Council adopt Resolution No. 2023-001, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2023- 002 declaring the results of the election.
2021-2025 Strategic Targets and Goals
This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No. 4: Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth.
Fiscal Impact
The individual property owners in the CFD will be responsible for annual payments of special taxes. It is estimated, upon full completion of the development, there will be an annual collection of special tax revenues of approximately $6,946 to be used to pay for maintenance costs within the development.
On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD.
All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2019-1 and not through the City’s General Fund.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Hold a Public Hearing; and
2. Adopt Resolution No. 2023-001 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 28); and
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3. Hold a special landowner election and canvass the election; and
4. Adopt Resolution No. 2023-002 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 28); and
5. Introduce, read by title only, and waive further reading of Ordinance No. MC1608 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and
6. Schedule the adoption of Ordinance No. MC-1608 for February 1, 2023.
Attachments
Attachment 1 - Resolution No. 2023-001- Resolution Calling Election Attachment 2 - Exhibit A - Description of Territory
Attachment 3 - Exhibit B - Rate and Method of Apportionment Attachment 4 - Exhibit C - Special Election Ballot
Attachment 5 - Resolution No. 2023-002- Resolution Declaring Election Results Attachment 6 - Exhibit A - Certificate of Election Results Attachment 7 – Ordinance No. MC-1608
Attachment 8 - Exhibit A - Description of Services
Attachment 9 - Exhibit B - Parcel List
Attachment 10 – Signed Petition and Waiver
Attachment 11 - PowerPoint Presentation
Attachment 12 - Project Map
Ward:
Fifth Ward
Synopsis of Previous Council Actions:
June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San
Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.”
July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for
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Community Facilities District No. 2019-1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance,
services and expenses with respect to Community Facilities District No. 2019-1.
August 7, 2019 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to
Community Facilities District No. 2019-1.
December 7, 2022 Mayor and City Council adopted Resolution No. 2022-263, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”.
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Resolution No. 2023-001
Resolution 2023-001
January 18, 2023
RESOLUTION NO. 2023-001
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA,
CALLING AN ELECTION TO SUBMIT TO THE
QUALIFIED ELECTORS THE QUESTION OF LEVYING A
SPECIAL TAX WITHIN THE AREA PROPOSED TO BE
ANNEXED TO COMMUNITY FACILITIES DISTRICT NO.
2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO.
28)
WHEREAS, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”), adopted its Resolution No. 2019-81, (the “Resolution of Intention”) (i) declaring its intention to establish Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), commencing with Section 53311 of the California Government Code (the “Government Code”), (ii) proposing to levy a special taxes within CFD No. 2019-1 pursuant to the terms of the Act to fund the cost of providing maintenance services (the “Services”) described in Exhibit B of the Resolution of Intention; and
WHEREAS, the City Council set a public hearing for July 17, 2019, after which the Council adopted Resolution No. 2019-178 forming the CFD No. 2019-1 and calling a special election at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2019-1 were submitted to the qualified electors within the CFD No. 2019-1; and
WHEREAS, on July 17, 2019, the City Council adopted Resolution No. 2019-179 declaring the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and
WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and
WHEREAS, the City Council on December 7, 2022, duly adopted Resolution No. 2022- 263 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019-1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for January 18, 2023; and
WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 28 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on December 8, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 86, in the office of the San Bernardino County Recorder; and
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Resolution No. 2023-001
Resolution 2023-001
January 18, 2023
WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on January 18, 2023, not earlier than the hour of 7:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the January 18, 2023, meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002; and WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and
WHEREAS, the Mayor and City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit “A” hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and
WHEREAS, the City Clerk has concurred in the election date set forth herein.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention.
SECTION 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of the Packet Pg. 334
Resolution No. 2023-001
Resolution 2023-001
January 18, 2023
special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled.
SECTION 4. Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council, with respect to the annexation of territory to CFD No. 2019-1, are valid and in conformity with the requirements of the Act.
SECTION 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2019-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually in CFD No. 2019-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit “B” hereto.
SECTION 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property.
SECTION 7. Tax Roll Preparation. The office of the Public Works Director, 201 North “E” Street, San Bernardino, California, 92401, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents.
SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2019-1.
SECTION 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on January 18, 2023, and shall be conducted as follows:
(a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2019-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2019-1 on October 21, 2022 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1.
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Resolution No. 2023-001
Resolution 2023-001
January 18, 2023
(b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2019-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C.
(d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 7:00 p.m. on January 18, 2023. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election.
(e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on January 18, 2023, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election.
(f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns.
SECTION 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office.
SECTION 11. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
SECTION 12. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.
SECTION 13. Effective Date. This Resolution shall become effective immediately.
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Resolution No. 2023-001
Resolution 2023-001
January 18, 2023
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of ____________ 2023.
Helen Tran, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
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Resolution No. 2023-001
Resolution 2023-001
January 18, 2023
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2023-___, adopted at a regular meeting held on the ___ day of _______ 2023 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023.
Genoveva Rocha, CMC, City Clerk
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EXHIBIT A
DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) Annexation No. 28 is currently comprised of one (1) parcel, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Number (APN).
APN Owner Name
0348-111-51 Verdemont Ranch 20 LLC
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EXHIBIT B
City of San Bernardino 1
Community Facilities District No. 2019-1 (Maintenance Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)
OF THE CITY OF SAN BERNARDINO
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2019-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2019-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.
A. DEFINITIONS
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2019-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2019-1, or any designee thereof associated with fulfilling the CFD No. 2019-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019-1 for any other administrative purposes of CFD No. 2019-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of San Bernardino, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal year in which the special tax is being levied.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
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City of San Bernardino 2
Community Facilities District No. 2019-1 (Maintenance Services) “Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2019-1” means the City of San Bernardino Community Facilities District No. 2019- 1 (Maintenance Services).
“City” means the City of San Bernardino.
“Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. “County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019-1.
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Community Facilities District No. 2019-1 (Maintenance Services) “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019-1.
“Multi-Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit.
“Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2019-1 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” means any residential property other than Multi-Family Residential Property on an Assessor’s Parcel.
“Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2019-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
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Community Facilities District No. 2019-1 (Maintenance Services) “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if required.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2019-1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2019-1 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2019-1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi-Family Residential Property and the number of Residential Units shall be determined by the Administrator.
C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. For Parcels of undeveloped property zoned for development of single family attached or multi-family units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multi-family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit identified for the Tract below or as included in Appendix A as each Annexation occurs.
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Packet Pg. 343
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Community Facilities District No. 2019-1 (Maintenance Services) Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone below or as included in Appendix A as each Annexation occurs.
1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2019-2020 within Tax Zone 1 is identified in Table 1 below:
TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 17170 Single Family Residential Property RU $961
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved property Fiscal Year 2019-20 within Tax Zone 1 is identified in Table 2 below:
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Community Facilities District No. 2019-1 (Maintenance Services) TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 17170 Single Family Residential RU $961
On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2019-20 within Tax Zone 1 is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL TAX A RATES
UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax A
1 TR 17170 Acre $4,338
On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
2. Special Tax B (Contingent)
The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council. a. Developed Property
(i) Maximum Special Tax B (Contingent)
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Community Facilities District No. 2019-1 (Maintenance Services) The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2019-20 within Tax Zone 1 is identified in Table 4 below:
TABLE 4
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 TR 17170 Single Family Residential Property RU $0
(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 5 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.
The Maximum Special Tax B (Contingent) for Fiscal Year 2019-20 within the Tax Zone is identified in Table 5 below:
TABLE 5
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 TR 17170 Single Family Residential Property RU $0
On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Packet Pg. 346
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Community Facilities District No. 2019-1 (Maintenance Services) Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 6 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.
The Maximum Special Tax B (Contingent) for Fiscal Year 2019-20 within the Tax Zone is identified in Table 6 below:
TABLE 6
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
UNDEVELOPED PROPERTY
Tax Zone
Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
1 TR 17170 Acre $0
On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2019-20 and for each following Fiscal Year, the Council shall determine the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:
First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax A Requirement for such Tax Zone;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax A for Undeveloped Property.
2. Special Tax B (Contingent)
Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Packet Pg. 347
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Community Facilities District No. 2019-1 (Maintenance Services) Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B ( Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) Shall be levied for each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property for a Tax Zone up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Contingent Special Tax B Requirement;
Second: If additional moneys are needed to satisfy the Contingent Special Tax B Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
Third: If additional monies are needed to satisfy the Contingent Special Tax B Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.
E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2019-1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone when annexed and included in Appendix A.
F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.
For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2019-1, any Assessor’s Parcels; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which is in use in the performance of a public function as determined by the Administrator.
H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2019-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
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Community Facilities District No. 2019-1 (Maintenance Services) I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2019-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
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APPENDIX A
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)
COST ESTIMATE
Special Tax A Services- The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2022-23. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2019-1.
TAX ZONE 29
TR 17329
Item Description Estimated Cost
1 Landscaping $3,849
2 Lighting $1,400
3 Reserves $697
4 Admin $1,000
Total $6,946
Special Tax B Contingent Services – There are no services being funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2019-1. However, additional Tax Zones may have Special Tax B Contingent Services being provided.
TAX ZONE 29
FY 2022-23 MAXIMUM SPECIAL TAX RATES
DEVELOPED PROPERTY AND APPROVED PROPERTY
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Single-Family Residential RU $347 $0
Multi-Family Residential RU $347 $0
Non-Residential Property Acre $333 $0
TAX ZONE 29
FY 2022-23 MAXIMUM SPECIAL TAX RATES
UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $333 $0
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TAX ZONE SUMMARY
Annexation
Tax
Zone
Tract
APN
Fiscal
Year
Maximum
Special Tax A
Maximum
Special Tax B Subdivider
Original 1 17170 2019-20 $961 / RU $0 / RU Santiago Communities, Inc. 1 2 17329 2019-20 $473 / RU $0 / RU JEC Enterprises, Inc. 2 3 PM 19814 2020-21 $608 / Acre $0 / Acre GWS #4 Development, LLC 3 4 0266-041-39 2019-20 $1,136 / Acre $0 / Acre Devore Storage Facility, LLC 4 5 TR 20006 2020-21 $344 / RU $57 / RU TH Rancho Palma, LLC 5 6 PM 19701 2020-21 $1,895 / Acre $528 / Acre Strata Palma, LLC 6 7 PM 20112 2020-21 $3,197 / Acre $0 / Acre San Bernardino Medical Center LLC 7 8 TR 20293 2021-22 $2,913 / Acre $334 / Acre ICO Fund VI, LLC 8 9 LM 2019-021 2021-22 $815 / Acre $232 / Acre TR 2600 Cajon Industrial LLC 9 10 TR 20189 2021-22 $490 / Acre $154 / Acre Central Commerce Center, LLC 10 11 LD 1900086 2021-22 $1,472 / Acre $0 / Acre Lankershim Industrial, LLC 11 12 TR 20305 2022-23 $175 / Acre $0 / Acre Prologis, LP 12 13 LLA 2020-004 2022-23 $1,169 / Acre $0 / Acre Dreamland Real Estate Holdings 13 14 TR 5907 2022-23 $2,268 / Acre $0 / Acre Magic Laundry Services, Inc. 14 15 0136-191-21 2022-23 $5,277 / Acre $0 / Acre Ahmad Family Trust 15 16 TR 20216 2022-23 $7,089 / Acre $0 / Acre Gateway SB, LLC 16 17 TR 20145 2022-23 $646 / RU $0 / RU RCH-CWI Belmont, LP 17 18 CUP 20-07 2022-23 $7,433 / Acre $0 / Acre George A. Pearson 18 19 TR 20258 2022-23 $588 / RU $0 / RU RGC Family Trust 19 20 LM 21-10 2022-23 $5,284 / Acre $0 / Acre 170 East 40th Street, LLC 320 21 LM 22-04 2022-23 $6,397 / Acre $0 / Acre 108 Highland, LP 21 22 LM 2021-013 2022-23 $807 / Acre $0 / Acre SBABP IV, LLC 22 23 TR 4592 2022-23 $847 / Acre $320 / Acre 1300 E Highland Ave LLC 23 24 LLA 2020-005 2022-23 $1,385 / Acre $978 / Acre Vone SB, LLC 24 25 TR 20494 2022-23 $174 / RU $17 / RU PI Properties, LLC 25 26 TR 20495 2022-23 $204 / RU $45 / RU Pacific West Company, et al. 26 To Be Determined
27 28 PM 20320 2022-23 $1,851 / Acre $292 / Acre SB Drake Central Avenue LLC 28 29 TR 17329 2023-24 $347 / RU $0 / RU Verdemont Ranch 20, LLC 29 30 LL 2022-11 2022-23 $922 / Acre $372 / Acre CIVF VI – CA1W01, LLC 30 31 PM 20143 2022-23 $2,957 / Acre $1,855 / Acre California Cajun Properties LLC 31 32 PM 20334 2023-24 $358 / Acre $94 / Acre Elliott Precision Block Co. 32 33 PM 3613,
4230 & 4250 2022-23 $1,094 / Acre $186 / Acre S.B. Universal Self Storage LLC Packet Pg. 351
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ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2020 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
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APPENDIX B
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created.
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APPENDIX C
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)
PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES Packet Pg. 354
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EXHIBIT C
CITY OF SAN BERNARDINO
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 28
(January 18, 2023)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino:
Name of Landowner Number of Acres Owned Total Votes
Verdemont Ranch 20, LLC 24.83 25
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.
This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2019-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:
Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than January 4, 2023, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.
Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on January 18, 2023, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401.
However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on January 18, 2023.
Very truly yours,
Genoveva Rocha, CMC, City Clerk
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TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.
OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):
Verdemont Ranch 20, LLC
Attn:Felizardo Robles
434 North 2nd Ave.
Upland, CA 91786
0348-111-51
CITY OF SAN BERNARDINO
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO”
WITH AN “X”:
Shall the City Council of the City of San Bernardino be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council on December 7, 2022 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 28 of Community Facilities District No. 2019-1 (Maintenance Services) City of San Bernardino” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2019-1 (Maintenance Services) in the amount of special taxes collected?
YES _________
NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.
Signature
Print Name
Title
Authorized Agent
Felizardo Robles
Packet Pg. 358
Resolution No. 2023-002
Resolution No. 2023-002
January 18, 2023
RESOLUTION NO. 2023-002
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA
DECLARING ELECTION RESULTS FOR COMMUNITY
FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE
SERVICES) (ANNEXATION NO. 28)
WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore conducted proceedings for the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1") of the City of San Bernardino, including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and
WHEREAS, at the conclusion of said public hearing, the Mayor and City Council adopted a Resolution No. 2023-001 calling a special election for January 18, 2023, and submitting to the qualified electors of the territory to be annexed to the CFD No. 2019-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property as provided in the form of special election ballot; and WHEREAS, a Certificate of Election Results, attached thereto as Exhibit “A”, dated January 18, 2023, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and WHEREAS, this Council has received, reviewed, and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. Ballot Measure. This Council hereby finds, determines, and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No. 2019-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code.
SECTION 3. Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the Mayor and City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2019-1 with full legal effect, and the Mayor and City Council is also authorized, pursuant to said Packet Pg. 359
Resolution No. 2023-002
Resolution No. 2023-002
January 18, 2023
Section 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2019-1 as specified in Resolution No. 2022-263 adopted by the Mayor and City Council on December 7, 2022. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 28 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on December 8, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 86, in the office of the San Bernardino County Recorder.
SECTION 4. Notice of Special Tax Lien. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of San Bernardino an amendment of the notice of special tax lien and a map of the amended boundaries of the CFD No. 2019-1 including the annexed territory.
SECTION 5. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.
SECTION 7. Effective Date. This Resolution shall become effective immediately.
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2023.
Helen Tran, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
Packet Pg. 360
Resolution No. 2023-002
Resolution No. 2023-002
January 18, 2023
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2023-___, adopted at a regular meeting held on the ___ day of _______ 2023 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023.
Genoveva Rocha, CMC, City Clerk
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EXHIBIT A
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 28
CERTIFICATE OF ELECTION RESULTS
I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify:
In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of San Bernardino (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated November 30, 2022, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date.
Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto.
Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure.
Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed.
Landowner
Qualified
Landowner Votes Votes Cast YES NO
Verdemont Ranch 20, LLC 25 25
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2023.
Genoveva Rocha, CMC
City Clerk
City of San Bernardino
By:
(Attach completed copies of Waiver/Consent and Ballot)
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Ordinance No. MC-1608
1 ORDINANCE NO. MC-1608
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL
OF THE CITY OF SAN BERNARDINO, CALIFORNIA,
AMENDING ORDINANCE NO. MC-1522 AND LEVYING
SPECIAL TAXES TO BE COLLECTED DURING FISCAL
YEAR 2022-2023 TO PAY THE ANNUAL COSTS OF THE
MAINTENANCE AND SERVICING OF LANDSCAPING,
LIGHTING, WATER QUALITY IMPROVEMENTS,
GRAFFITI, STREETS, STREET SWEEPING, PARKS AND
TRAIL MAINTENANCE, A RESERVE FUND FOR
CAPITAL REPLACEMENT, AND ADMINISTRATIVE
EXPENSES WITH RESPECT TO CITY OF SAN
BERNARDINO COMMUNITY FACILITIES DISTRICT NO.
2019-1 (MAINTENANCE SERVICES)
WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and
WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on January 18, 2023, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election within the District on Packet Pg. 363
Ordinance No. MC-1608
2 the proposition of levying a special tax, and establishing an appropriations limit within the District; and
WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act.
THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019-81, attached hereto and by this reference made a part hereof.
SECTION 2. Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2022-2023, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes.
SECTION 3. Transmittal to County. The City Clerk shall immediately, following adoption of this ordinance, transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels.
SECTION 4. Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California.
SECTION 5. Effective Date. This ordinance shall become effective thirty (30) days after its adoption.
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of _______, 2023.
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Ordinance No. MC-1608
3 Helen Tran, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
Packet Pg. 365
Ordinance No. MC-1608
4 CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-____, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the ____ day of ______, 2023. Ordinance No. MC-____ was approved, passed and adopted at a regular meeting held the ____ day of ______, 2023 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ____ day of _____, 2023.
Genoveva Rocha, CMC, City Clerk
Packet Pg. 366
EXHIBIT A
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1.
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention.
The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created.
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EXHIBIT B
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) SPECIAL TAX FISCAL YEAR 2022-23
(Effective as of February 1, 2023)
ASSESSOR'S PARCEL NUMBERS
Annexation Owner Assessor's Parcel Numbers
Cauffman Family Trust 4/20/98
0142-811-01 thru -13 and
Original Formation 0142-811-14
Cauffman Family Trust 5/4/11 0142-041-52
1 17329, LLC 0261-031-10, -13, 0261-771-01
thru -29 and 0348-111-52
2 GWS #4 Development, LLC 0141-431-24
3 Devore Storage Facility, LLC 0266-041-39
4 TH Rancho Palma, LLC
0261-761-01 thru -65 and
0261-762-01 thru -72
5 Strata Palma, LLC 0261-182-41
6 San Bernardino Medical Center, LLC 0147-114-20 and -21 7 ICO Fund VI, LLC
0281-441-01 thru -56 and
0281-442-01 thru -55
8 TR 2600 Cajon Industrial LLC 0148-122-04
9 Central Commerce Center, LLC 0280-151-29
10 Lankershim Industrial, LP 1192-311-01
11 Prologis, LP
0137-011-01, -31, 0137-051-27,
0137-052-46, 0274-011-11, -12, -
34, -35, -42, -43
12 Dreamland Real Estate Holdings 0281-061-35
13 Magic Laundry Services, Inc. 0141-282-05 and -06
14 Ahmad Family Trust 0136-191-21
15 Gateway SB, LLC 0134-054-33, -40, -44
16 RCH-CWI Belmont, LP 0261-712-01 thru -16
17 George A. Pearson 0142-212-18
18 RGC Family Trust 0142-325-04
19 170 East 40th Street, LLC 0154-242-22 and -23
20 108 Highland, LP 0150-221-78
21 SBABP IV, LLC 0136-371-36, -37, -40, -43
22 1300 E Highland Ave LLC 0150-471-04, -05, -06, -07, -08 23 Vone SB, LLC 0272-161-17 and -18
24 PI Properties, LLC 0143-191-59
25 Pacific West Company, Chenmei
Cheng, Ann C. Lau, and Hanhsing Li 0285-211-05, -21, -22, -23, -25 Packet Pg. 368
Annexation Owner Assessor's Parcel Numbers
26 To Be Determined
27 SB Drake Central Avenue, LLC 0280-032-07 thru -11, -13, -14, - 15, -37 and -38
28 Verdemont Ranch 20, LLC 0348-111-51
29 CIVF VI – CA1W01, LLC 0280-051-11, -12, -15
30 California Cajun Properties LLC 0261-182-43
31 Elliott Precision Clock Co. 0142-211-29
32 S.B. Universal Self Storage LLC 0266-021-17, -18, -27, -32, -33, -34, -38, -39, -40, -41
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Public Hearing
CFD No. 2019-1 Annexation No. 28:
TR 17329 (Verdemont Ranch 20, LLC)
Presented by Daniel Hernandez
Agency Director of Public Works, Operations, and Maintenance Packet Pg. 381
Public Hearing on CFD 2019-1 Annexation No. 28
Recommended Action
1. City Council initiate annexation of territory to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services) ("CFD No. 2019-1" or "CFD") by taking the following actions:
a. Hold public hearing,
b. Adopt a Resolution calling the election,
c. Hold a special landowner election and canvass the election, d. Adopt a Resolution declaring results of special landowner election; and
2. Upon approval of the preceding resolutions, Introduce, read by title only, and waive further reading of Ordinance No. MC-____ amending Ordinance No MC-1522 and levying and apportioning the special tax in CFD No. 2019-1 (as it now exists and will exist in the future); and
3. Schedule the adoption of the Amended Ordinance for February 1, 2023.
Packet Pg. 382
Public Hearing on CFD 2019-1 Annexation No. 28
Discussion
• The Property Owner, Verdemont Ranch 20, LLC, has requested the City assist them in annexing territory into CFD No. 2019-1 to cover the costs associated with the maintenance of Public Improvements. • The area proposed within Annexation No. 28 includes one (1) parcel, APN 0348-111-51.
• On December 7, 2022, the City Council adopted Resolution No. 2022- 263, a Resolution of Intention to annex these properties into CFD No. 2019-1 and hold a Public Hearing on January 18, 2023. The property owner consented to waiving certain time restriction and conduct the election the same night.
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Public Hearing on CFD 2019-1 Annexation No. 28
Discussion (Cont.)
• The proposed maximum annual tax of $347 per unit for Special Tax A will be included in CFD No. 2019-1 as Tax Zone 29.
• The maximum annual tax is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%.
Packet Pg. 384
Public Hearing on CFD 2019-1 Annexation No. 28
Discussion (Cont.)
• The services, which may be funded with proceeds of the special tax, include:
• All costs attributable to Maintenance of median landscaping and other public improvements installed within the public rights-of-way
• Public lighting including street lights and traffic signals, • Maintenance of streets, including pavement management, and street sweeping, • Maintenance and operation of water quality improvements including storm drainage and flood protection facilities
• In addition to the costs of the forgoing services, proceeds of the special tax may be expended to pay administrative expenses and for the collection of reserve funds.
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Project Location
Packet Pg. 386
Public Hearing on CFD 2019-1 Annexation No. 28
Fiscal Impact
• It is anticipated that at build-out the total Special Tax revenues to pay for maintenance costs will be approximately $6,946. All costs associated with the annexation is borne by the Developer.
There is no fiscal impact to the City’s General Fund.
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Questions?
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ANNEXATION NO. 28
PROJECT MAP
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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: January 18, 2023
To: Honorable Mayor and City Council Members
From: Daniel Hernandez, Agency Director of Public Works, Operations, and Maintenance
Department: Public Works
Subject: Public Hearing on Annexation No. 29 to Community Facilities District 2019-1 (Ward 3)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Hold a Public Hearing; and
2. Adopt Resolution No. 2023-004 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 29); and
3. Hold a special landowner election and canvass the election; and
4. Adopt Resolution No. 2023-005 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 29); and
5. Introduce, read by title only, and waive further reading of Ordinance No. MC1609 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and
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6. Schedule the adoption of Ordinance No. MC-1609 for February 1, 2023.
Background
On December 7, 2022, the Mayor and City Council adopted Resolution No. 2022- 264, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for January 18, 2023, on the proposed annexation of the said territory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on December 8, 2022, at 1:17 p.m. in Book 90 Page 85, Document No. 2022-0393679 of Maps of Assessment and Community Facilities Districts with the San Bernardino County Recorder.
The Resolution of Intention was adopted by the Mayor and City Council in response to a petition filed by the property owner of approximately 3.28 gross acres of a vacant industrial lot within the City, requesting that the City assist them in annexing their properties into CFD No. 2019-1 under the Mello-Roos Act. The proposed project will consist of 65,963 sq. ft. of an industrial warehouse. The State legislature enacted the Mello-Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2019-1 to levy a special tax to cover the costs associated with the maintenance of public improvements. The public facilities and services proposed to be financed within the territory to be annexed to the District are the following:
1. Public lighting and appurtenant facilities, including street lights within public rights-of-way and traffic signals; and
2. Maintenance of streets, including pavement management; and
3. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District, including the contract administration and for the collection of reserve funds.
The proposed area to be annexed into the CFD will be included in Tax Zone 30 and is located on S Valley View Ave. in between E Central Ave. and E Santa Fe St., as shown in Attachment #12.
The maximum annual special tax for this development has been calculated to be $1,294 per acre for FY 2022/23. This tax rate includes a Maximum Special Tax A of $922 per acre per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $372 per acre per year. Special Tax B (Contingent) is for the maintenance and operation of the improvements described Packet Pg. 391
in Exhibit B attached hereto. If the Property Owners Association (POA) were to default of its obligation to maintain such improvements, the City would be able to collect funds to pay for those services. Annual Special Tax A and Annual Special Tax B (Contingent) rate are proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982.
The property owners have submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello-Roos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.
In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below:
• Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted December 7, 2022.
• Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. • Resolution declaring the results of the election and directing the recording of the notice of special tax lien.
• Amend the Ordinance and order the levy and collection of special taxes in the District.
With the adoption of the Resolutions and the first reading of the amended Ordinance, the second reading of the amended Ordinance would be scheduled for February 1, 2023.
Discussion
The Resolution of Intention called for a public hearing to be held on January 18, 2023, on the issue of the annexation of territory into CFD No. 2019-1. Under the Mello-Roos Act, the Mayor and City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the Mayor and City Council may adopt the resolution establishing the CFD.
Adoption of Resolution No. 2019-178 on July 17, 2019, established CFD 2019-1, Packet Pg. 392
pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello-Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be returned by the close of the public hearing. If the Mayor and City Council adopt Resolution No. 2023-004, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2023- 005 declaring the results of the election.
2021-2025 Strategic Targets and Goals
This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No. 4: Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth.
Fiscal Impact
The individual property owners in the CFD will be responsible for annual payments of special taxes. It is estimated, upon full completion of the development, there will be an annual collection of special tax revenues of approximately $2,767 from Special Tax A to be used to pay for maintenance costs within the development.
On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD, will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD.
All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2019-1 and not through the City’s General Fund.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:
1. Hold a Public Hearing; and
2. Adopt Resolution No. 2023-004 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified Packet Pg. 393
electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 29); and
3. Hold a special landowner election and canvass the election; and
4. Adopt Resolution No. 2023-005 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 29); and
5. Introduce, read by title only, and waive further reading of Ordinance No. MC1609 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2022-2023 to pay annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and
6. Schedule the adoption of Ordinance No. MC-1609 for February 1, 2023.
Attachments
Attachment 1 - Resolution No. 2023-004- Resolution Calling Election Attachment 2 - Exhibit A Description of Territory
Attachment 3 - Exhibit B Rate and Method of Apportionment Attachment 4 - Exhibit C Special Election Ballot
Attachment 5 - Resolution No. 2023-005- Resolution Declaring Election Results Attachment 6 - Exhibit A Certificate of Election Results Attachment 7 - Ordinance No. MC-1609
Attachment 8 - Exhibit A Description of Services
Attachment 9 - Exhibit B Parcel List
Attachment 10 - Signed Petition and Waiver
Attachment 11 - PowerPoint Presentation
Attachment 12 - Project Map
Ward:
Third Ward
Synopsis of Previous Council Actions:
June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San
Bernardino (the “Resolution of Intention”), pursuant to the Packet Pg. 394
provisions of the “Mello-Roos Community Facilities Act of 1982.”
July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019-1; and first reading of Ordinance No. MC1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1.
August 7, 2019 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to
Community Facilities District No. 2019-1.
December 7, 2022 Mayor and City Council adopted Resolution No. 2022-264, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”.
Packet Pg. 395
Resolution No. 2023-004
Resolution No. 2023-004
January 18, 2023
RESOLUTION NO. 2023-004
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF
THE CITY OF SAN BERNARDINO, CALIFORNIA,
CALLING AN ELECTION TO SUBMIT TO THE
QUALIFIED ELECTORS THE QUESTION OF LEVYING A
SPECIAL TAX WITHIN THE AREA PROPOSED TO BE
ANNEXED TO COMMUNITY FACILITIES DISTRICT NO.
2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO.
29)
WHEREAS, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”), adopted its Resolution No. 2019-81, (the “Resolution of Intention”) (i) declaring its intention to establish Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), commencing with Section 53311 of the California Government Code (the “Government Code”), (ii) proposing to levy a special taxes within CFD No. 2019-1 pursuant to the terms of the Act to fund the cost of providing maintenance services (the “Services”) described in Exhibit B of the Resolution of Intention; and
WHEREAS, the City Council set a public hearing for July 17, 2019, after which the Council adopted Resolution No. 2019-178 forming the CFD No. 2019-1 and calling a special election at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2019-1 were submitted to the qualified electors within the CFD No. 2019-1; and
WHEREAS, on July 17, 2019, the City Council adopted Resolution No. 2019-179 declaring the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and
WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and
WHEREAS, the City Council on December 7, 2022, duly adopted Resolution No. 2022- 264 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019-1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for January 18, 2023; and
WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 29 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on December 8, 2022, in Book 90 of Maps of Assessment and Community Facilities Districts at Page 85, in the office of the San Bernardino County Recorder; and
Packet Pg. 396
Resolution No. 2023-004
Resolution No. 2023-004
January 18, 2023
WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on January 18, 2023, not earlier than the hour of 7:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the January 18, 2023, meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002; and WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and
WHEREAS, the Mayor and City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit A hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and
WHEREAS, the City Clerk has concurred in the election date set forth herein.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention.
SECTION 3. Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of the Packet Pg. 397
Resolution No. 2023-004
Resolution No. 2023-004
January 18, 2023
special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled.
SECTION 4. Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council, with respect to the annexation of territory to CFD No. 2019-1, are valid and in conformity with the requirements of the Act.
SECTION 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2019-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually in CFD No. 2019-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit B hereto.
SECTION 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property.
SECTION 7. Tax Roll Preparation. The office of the Public Works Director, 201 North “E” Street, San Bernardino, California, 92401, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents.
SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2019-1.
SECTION 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on January 18, 2023, and shall be conducted as follows:
(a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2019-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2019-1 on October 21, 2022 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1.
Packet Pg. 398
Resolution No. 2023-004
Resolution No. 2023-004
January 18, 2023
(b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2019-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C.
(d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 7:00 p.m. on January 18, 2023. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election.
(e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on January 18, 2023, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election.
(f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns.
SECTION 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office.
SECTION 11. The Mayor and City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
SECTION 12. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.
SECTION 13. Effective Date. This Resolution shall become effective immediately.
Packet Pg. 399
Resolution No. 2023-004
Resolution No. 2023-004
January 18, 2023
APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of ____________ 2023.
Helen Tran, Mayor
City of San Bernardino
Attest:
Genoveva Rocha, CMC, City Clerk
Approved as to form:
Sonia Carvalho, City Attorney
Packet Pg. 400
Resolution No. 2023-004
Resolution No. 2023-004
January 18, 2023
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO) ss
CITY OF SAN BERNARDINO )
I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2023-___, adopted at a regular meeting held on the ___ day of _______ 2023 by the following vote:
Council Members: AYES NAYS ABSTAIN ABSENT
SANCHEZ _____ _____ _______ _______
IBARRA _____ _____ _______ _______
FIGUEROA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
REYNOSO _____ _____ _______ _______
CALVIN _____ _____ _______ _______
ALEXANDER _____ _____ _______ _______
WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2023.
Genoveva Rocha, CMC, City Clerk
Packet Pg. 401
EXHIBIT A
DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) Annexation No. 29 is currently comprised of three (3) parcels, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Numbers (APNs).
APN Owner Name
0280-051-11 CIVF VI – CA1W01, LLC
0280-051-12 CIVF VI – CA1W01, LLC
0280-051-15 CIVF VI – CA1W01, LLC
Packet Pg. 402
EXHIBIT B
City of San Bernardino 1
Community Facilities District No. 2019-1 (Maintenance Services)
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)
OF THE CITY OF SAN BERNARDINO
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity as the legislative body of CFD No. 2019-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2019-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.
A. DEFINITIONS
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2019-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2019-1, or any designee thereof associated with fulfilling the CFD No. 2019-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of salaries and benefits of any City employees and City overhead whose duties are related to the administration and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019-1 for any other administrative purposes of CFD No. 2019-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. “Administrator” means the City Manager of the City of San Bernardino, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal year in which the special tax is being levied.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of San Bernardino. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
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City of San Bernardino 2
Community Facilities District No. 2019-1 (Maintenance Services) “Building Square Footage” or “BSF” means the floor area square footage reflected on the original construction building permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Taxable Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2019-1” means the City of San Bernardino Community Facilities District No. 2019- 1 (Maintenance Services).
“City” means the City of San Bernardino.
“Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. “County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019-1.
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City of San Bernardino 3
Community Facilities District No. 2019-1 (Maintenance Services) “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property within CFD No. 2019-1.
“Multi-Family Residential Property” means any Assessor’s Parcel of residential property that consists of a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit.
“Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property. “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2019-1 as set forth in the documents adopted by the City Council at the time the CFD was formed. “Single Family Residential Property” means any residential property other than Multi-Family Residential Property on an Assessor’s Parcel.
“Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2019-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
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City of San Bernardino 4
Community Facilities District No. 2019-1 (Maintenance Services) “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if required.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2019-1, which are not Exempt Property.
“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2019-1 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.
B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2019-1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi-Family Residential Property and the number of Residential Units shall be determined by the Administrator.
C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. For Parcels of undeveloped property zoned for development of single family attached or multi-family units, the number of Residential Units shall be determined by referencing the condominium plan, apartment plan, site plan or other development plan, or by assigning the maximum allowable units permitted based on the underlying zoning for the Parcel. Once a single family attached or multi-family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit identified for the Tract below or as included in Appendix A as each Annexation occurs.
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Packet Pg. 406
City of San Bernardino 5
Community Facilities District No. 2019-1 (Maintenance Services) Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone below or as included in Appendix A as each Annexation occurs.
1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2019-2020 within Tax Zone 1 is identified in Table 1 below:
TABLE 1
MAXIMUM SPECIAL TAX A RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 17170 Single Family Residential Property RU $961
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved property Fiscal Year 2019-20 within Tax Zone 1 is identified in Table 2 below:
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Community Facilities District No. 2019-1 (Maintenance Services) TABLE 2
MAXIMUM SPECIAL TAX A RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 17170 Single Family Residential RU $961
On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2019-20 within Tax Zone 1 is identified in Table 3 below:
TABLE 3
MAXIMUM SPECIAL TAX A RATES
UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax A
1 TR 17170 Acre $4,338
On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
2. Special Tax B (Contingent)
The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council. a. Developed Property
(i) Maximum Special Tax B (Contingent)
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Community Facilities District No. 2019-1 (Maintenance Services) The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2019-20 within Tax Zone 1 is identified in Table 4 below:
TABLE 4
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
DEVELOPED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 TR 17170 Single Family Residential Property RU $0
(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final. b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 5 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.
The Maximum Special Tax B (Contingent) for Fiscal Year 2019-20 within the Tax Zone is identified in Table 5 below:
TABLE 5
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
APPROVED PROPERTY
Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum Special
Tax B (Contingent)
1 TR 17170 Single Family Residential Property RU $0
On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Packet Pg. 409
City of San Bernardino 8
Community Facilities District No. 2019-1 (Maintenance Services) Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 6 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2019-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.
The Maximum Special Tax B (Contingent) for Fiscal Year 2019-20 within the Tax Zone is identified in Table 6 below:
TABLE 6
MAXIMUM SPECIAL TAX B (CONTINGENT) RATES
UNDEVELOPED PROPERTY
Tax Zone
Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
1 TR 17170 Acre $0
On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX
1. Special Tax A
Commencing with Fiscal Year 2019-20 and for each following Fiscal Year, the Council shall determine the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:
First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax A Requirement for such Tax Zone;
Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax A for Undeveloped Property.
2. Special Tax B (Contingent)
Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Packet Pg. 410
City of San Bernardino 9
Community Facilities District No. 2019-1 (Maintenance Services) Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B ( Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) Shall be levied for each Fiscal Year as follows:
First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property for a Tax Zone up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Contingent Special Tax B Requirement;
Second: If additional moneys are needed to satisfy the Contingent Special Tax B Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
Third: If additional monies are needed to satisfy the Contingent Special Tax B Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.
E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2019-1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services. Based on this analysis, the property to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone when annexed and included in Appendix A.
F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.
For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.
G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2019-1, any Assessor’s Parcels; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which is in use in the performance of a public function as determined by the Administrator.
H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. A representative(s) of CFD No. 2019-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the representative’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
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Community Facilities District No. 2019-1 (Maintenance Services) I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2019-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.
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Community Facilities District No. 2019-1 (Maintenance Services)
APPENDIX A
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)
COST ESTIMATE
Special Tax A Services- The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2022-23. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2019-1.
TAX ZONE 30
LM 2022-11
Item Description Estimated Cost
1 Lighting $100
2 Streets $1,652
3 Reserves $15
4 Admin $1,000
Total $2,767
Special Tax B Contingent Services – The estimate in the table below breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2022-23. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2019-1 Tax Zone 30.
TAX ZONE 30 (CONTINGENT SERVICES)
LM 2022-11
Item Description Estimated Cost
1 Streets $115
2 Admin $1,000
Total $1,115
TAX ZONE 30
FY 2022-23 MAXIMUM SPECIAL TAX RATES
DEVELOPED PROPERTY AND APPROVED PROPERTY
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Non-Residential Property Acre $922 $372
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Community Facilities District No. 2019-1 (Maintenance Services) TAX ZONE 30
FY 2022-23 MAXIMUM SPECIAL TAX RATES
UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $922 $372
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Community Facilities District No. 2019-1 (Maintenance Services)
TAX ZONE SUMMARY
Annexation
Tax
Zone
Tract
APN
Fiscal
Year
Maximum
Special Tax A
Maximum
Special Tax B Subdivider
Original 1 17170 2019-20 $961 / RU $0 / RU Santiago Communities, Inc. 1 2 17329 2019-20 $473 / RU $0 / RU JEC Enterprises, Inc. 2 3 PM 19814 2020-21 $608 / Acre $0 / Acre GWS #4 Development, LLC 3 4 0266-041-39 2019-20 $1,136 / Acre $0 / Acre Devore Storage Facility, LLC 4 5 TR 20006 2020-21 $344 / RU $57 / RU TH Rancho Palma, LLC 5 6 PM 19701 2020-21 $1,895 / Acre $528 / Acre Strata Palma, LLC 6 7 PM 20112 2020-21 $3,197 / Acre $0 / Acre San Bernardino Medical Center LLC 7 8 TR 20293 2021-22 $2,913 / Acre $334 / Acre ICO Fund VI, LLC 8 9 LM 2019-021 2021-22 $815 / Acre $232 / Acre TR 2600 Cajon Industrial LLC 9 10 TR 20189 2021-22 $490 / Acre $154 / Acre Central Commerce Center, LLC 10 11 LD 1900086 2021-22 $1,472 / Acre $0 / Acre Lankershim Industrial, LLC 11 12 TR 20305 2022-23 $175 / Acre $0 / Acre Prologis, LP 12 13 LLA 2020-004 2022-23 $1,169 / Acre $0 / Acre Dreamland Real Estate Holdings 13 14 TR 5907 2022-23 $2,268 / Acre $0 / Acre Magic Laundry Services, Inc. 14 15 0136-191-21 2022-23 $5,277 / Acre $0 / Acre Ahmad Family Trust 15 16 TR 20216 2022-23 $7,089 / Acre $0 / Acre Gateway SB, LLC 16 17 TR 20145 2022-23 $646 / RU $0 / RU RCH-CWI Belmont, LP 17 18 CUP 20-07 2022-23 $7,433 / Acre $0 / Acre George A. Pearson 18 19 TR 20258 2022-23 $588 / RU $0 / RU RGC Family Trust 19 20 LM 21-10 2022-23 $5,284 / Acre $0 / Acre 170 East 40th Street, LLC 20 21 LM 22-04 2022-23 $6,397 / Acre $0 / Acre 108 Highland, LP 21 22 LM 2021-013 2022-23 $807 / Acre $0 / Acre SBABP IV, LLC 22 23 TR 4592 2022-23 $847 / Acre $320 / Acre 1300 E Highland Ave LLC 23 24 LLA 2020-005 2022-23 $1,385 / Acre $978 / Acre Vone SB, LLC 24 25 TR 20494 2022-23 $174 / RU $17 / RU PI Properties, LLC 25 26 TR 20495 2022-23 $204 / RU $45 / RU Pacific West Company, et al. 26 To Be Determined
27 28 PM 20320 2022-23 $1,851 / Acre $292 / Acre SB Drake Central Avenue LLC 28 29 TR 17329 2023-24 $347 / RU $0 / RU Verdemont Ranch 20, LLC 29 30 LL 2022-11 2022-23 $922 / Acre $372 / Acre CIVF VI – CA1W01, LLC 30 31 PM 20143 2022-23 $2,957 / Acre $1,855 / Acre California Cajun Properties LLC 31 32 PM 20334 2023-24 $358 / Acre $94 / Acre Elliott Precision Block Co. 32 33 PM 3613,
4230 & 4250 2022-23 $1,094 / Acre $186 / Acre S.B. Universal Self Storage LLC Packet Pg. 415
City of San Bernardino 14
Community Facilities District No. 2019-1 (Maintenance Services)
ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2020 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
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Community Facilities District No. 2019-1 (Maintenance Services)
APPENDIX B
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and
(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.
The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created.
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City of San Bernardino 16
Community Facilities District No. 2019-1 (Maintenance Services)
APPENDIX C
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES)
PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES Packet Pg. 418
0280-051-15
0280-051-12 0280-051-11
AVE VALLEY VIEW
SANTA FE ST
HOLDEN DR
ANNEXATION MAP NO. 29
COMMUNITY FACILITIES DISTRICT NO. 2019-1
(MAINTENANCE SERVICES)CITY OF SAN BERNARDINO
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET
THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BEANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1(MAINTENANCE SERVICES), OF THE CITY OF SANBERNARDINO, COUNTY OF SAN BERNARDINO, STATE OFCALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIESDISTRICT ARE SHOWN AND DESCRIBED ON THE MAPTHEREOF WHICH WAS PREVIOUSLY RECORDED ONJUNE 6, 2019 IN BOOK 88 OF MAPS OF ASSESSMENTAND COMMUNITY FACILITIES DISTRICT AT PAGE 32 ANDAS INSTRUMENT NO. 2019-0185323 IN THE OFFICE OF THECOUNTY RECORDER OF THE COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2019-1(MAINTENANCE SERVICES) FOR THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WASAPPROVED BY THE CITY COUNCIL OF THE CITY OF SANBERNARDINO AT A REGULAR MEETING THEREOF, HELDON THE ____ DAY OF ____________________, 20 ____. BY ITS RESOLUTION NO. ____________________ _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO FILED IN THE OFFICE OF THE CITY CLERK THIS _____ DAY OF________, 20 ____. _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO CFD 2019-1
TAX ZONE 30
^_
66 ¤£
18}|·þ
330
}|·þ
210
}|·þ
215
§¨¦
10 §¨¦
66 ¤£
THIS ANNEXATION MAP CORRECTY SHOWS THE LOT ORPARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OFTHE COMMUNITY FACILITIES DISTRICT. FOR DETAILSCONCERNING THE LINES AND DIMENSIONS OF LOTS ORPARCEL REFER TO THE COUNTY ASSESSOR MAPS FORFISCAL YEAR 2022-23. -
LEGEND
ANNEXATION AREA BOUNDARYPARCEL LINECITY BOUNDARY
XXXX-XXX-XX ASSESSOR PARCEL NUMBER (APN) 30 TAX ZONE
30 SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE
THIS MAP WAS FILED UNDER DOCUMENT NUMBER_____________, THIS _______ DAY OF _______, 20 ____,AT _____ M. IN BOOK _____ OF ______________ AT PAGE ____,AT THE REQUEST OF CITY OF SAN BERNARDINO IN THE AMOUNTOF $_____________. CHRIS WILHITE ASSESSOR-RECORDER SAN BERNARDINO COUNTY BY:________________________________ DEPUTY RECORDER Packet Pg. 419
Packet Pg. 420
EXHIBIT C
CITY OF SAN BERNARDINO
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 29
(January 18, 2023)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino:
Name of Landowner Number of Acres Owned Total Votes
CIVF VI – CA 1W01, LLC 3.28 4
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.
This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2019-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:
Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than January 4, 2023, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.
Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on January 18, 2023, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401.
However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on January 18, 2023.
Very truly yours,
Genoveva Rocha, CMC, City Clerk
Packet Pg. 421
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.
OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):
CIVF VI – CA1W01, LLC
Attn: Kevin Rice
12126 West Sunset Boulevard
Los Angeles, CA 90049
0280-051-11, -12, -15
CITY OF SAN BERNARDINO
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO”
WITH AN “X”:
Shall the City Council of the City of San Bernardino be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council on December 7, 2022 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 29 of Community Facilities District No. 2019-1 (Maintenance Services) City of San Bernardino” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2019-1 (Maintenance Services) in the amount of special taxes collected?
YES _________
NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.
Signature
Print Name
Title
Kevin Rice
Vice President
Packet Pg. 422
Resolution No. 2023-005
Resolution No. 2023-005
January 18, 2023