Mayor and City Council
June 21, 2023

Mayor and City Council of the City of San Bernardino Page 1

CITY OF SAN BERNARDINO
AGENDA

FOR THE

REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO,

MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR

AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN

BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT

AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE

HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO

ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WEDNESDAY, JUNE 21, 2023
5:30 PM ­ CLOSED SESSION 7:00 PM ­ OPEN SESSION
FELDHEYM CENTRAL LIBRARY • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez Helen Tran Damon L. Alexander
COUNCIL MEMBER, WARD 1 COUNCIL MEMBER, WARD 7
MAYOR
Sandra Ibarra Charles E. McNeely
COUNCIL MEMBER, WARD 2 INTERIM CITY MANAGER
Juan Figueroa Sonia Carvalho
COUNCIL MEMBER, WARD 3 CITY ATTORNEY
Fred Shorett Genoveva Rocha
MAYOR PRO TEM, WARD 4 CITY CLERK
Ben Reynoso
COUNCIL MEMBER, WARD 5
Kimberly Calvin
COUNCIL MEMBER, WARD 6
Welcome to a meeting of the Mayor and City Council of the City of San Bernardino.

PLEASE VIEW THE LAST PAGES OF THE AGENDA FOR PUBLIC

COMMENT OPTIONS, OR CLICK ON THE FOLLOWING
LINK: TINYURL.COM/MCCPUBLICCOMMENTS
Please contact the City Clerk's Office (909) 384­5002 two working days prior to the meeting for any requests for reasonable accommodation, to include interpreters.

To view PowerPoint presentations, written comments, or any revised documents for this meeting date, use this link: tinyurl.com/agendabackup. Select the corresponding year and meeting date folders to view documents.

Mayor and City Council of the City of San Bernardino Page 2

CALL TO ORDER
Attendee Name
Council Member, Ward 1 Theodore Sanchez
Council Member, Ward 2 Sandra Ibarra
Council Member, Ward 3 Juan Figueroa
Mayor Pro Tem, Ward 4 Fred Shorett
Council Member, Ward 5 Ben Reynoso
Council Member, Ward 6 Kimberly Calvin
Council Member, Ward 7 Damon L Alexander
Mayor Helen Tran
Interim City Manager Charles E. McNeely
City Attorney Sonia Carvalho
City Clerk Genoveva Rocha
5:30 P.M.

CLOSED SESSION PUBLIC COMMENT
CLOSED SESSION p. 13
A) CONFERENCE WITH LEGAL COUNSEL ­ EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1):
i. George Luna v. City of San Bernardino, Workers’ Compensation Case Nos.

ADJ13592854; ADJ13510564; ADJ13510560; ADJ2913755 and ADJ10411334. ii. Promise Gracia, et al. v. City of San Bernardino, San Bernardino Superior Court Case No.

CIVSB2301828
B) PUBLIC EMPLOYEE APPOINTMENT (Pursuant to Government Code Section 54957) City Manager
7:00 P.M.

INVOCATION AND PLEDGE OF ALLEGIANCE

CLOSED SESSION REPORT

PRESENTATIONS

1. Proclamation for Parks and Recreation Month in the City of San Bernardino – July 2023 (All Wards) p. 14

2. Proclamation for Juneteenth p. 16

3. San Bernardino County Transportation Authority (SBCTA) Project Updates p. 18 Mayor and City Council of the City of San Bernardino Page 3

APPOINTMENTS

4. Library Board Appointment of Randy S. Clyde p. 33

PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA

CITY MANAGER UPDATE

CONSENT CALENDAR

5. Amendment No. 2 to the Professional Services Agreement with Spicer Consulting Group (All Wards) p. 47
Recommendation:

It is recommended that the Mayor and City Council, of the City of San Bernardino, California:

1. Authorize the Interim City Manager to execute Amendment No. 2 to the Professional Services Agreement with Spicer Consulting Group (SCG) to increase the purchase order amount by $200,000, to an amount not­to­exceed $741,018, for as­needed consulting services related to Maintenance Assessment District Administration and the formation/annexation of Community Facilities Districts and Assessment Districts; and

2. Authorize exercising the City’s second twelve (12) month extension option, extending the term of the Professional Services Agreement through June 30, 2024.

6. Resolution Declaring Intent to Annex Territory: Community Facilities District No. 2019­1 (Maintenance Services): Annexation No. 35, Tax Zone No. 36 (Starbucks) (Ward 2) p. 68
Recommendation:

It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2023­085 of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019­1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 35), and authorizing the levy of special taxes therein.

7. Resolution Declaring Intent to Annex Territory: Community Facilities District No. 2019­1 (Maintenance Services): Annexation No. 36, Tax Zone No. 37 (5570 Industrial) (Ward 6) p.106
Recommendation:

It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2023­086 of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019­1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 36) and authorizing the levy of a special taxes therein.

8. Professional Service Agreement Award – Consultation Services for Broadband Strategic Master Plan (All Wards) p. 140
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve a Professional Service Agreement (PSA) with Michael Baker International in the amount of $414,810, to provide consultation services for Broadband Master Plan for the period of June 22, 2023, through October 31, 2024; and

2. Authorize the City Manager, or designee, to take necessary steps to implement and administer the agreement including executing an agreement, amendments, and signing subsequent, necessary, and related documents, to implement the agreement.

Mayor and City Council of the City of San Bernardino Page 4

9. Amendment No. 2 to the Master Agreement with Renne Public Policy Group (RPPG) (All Wards) p. 183
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute Amendment No. 2 to the agreement between the City of San Bernardino and Renne Public Policy Group (RPPG), to extend and increase the agreement for grant consultation services for an amount not to exceed $86,000 for the extension period of July 1, 2023 through June 30, 2024.

10. Approve the Professional Services Agreement with Kosmont Realty for Real Estate Advisory and Due Diligence Services (All Wards) p. 196
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve a Professional Services Agreement with Kosmont Realty for Real Estate Advisory and Due Diligence Services; and

2. Authorize the City Manager, or designee, to execute the Professional Services Agreement with Kosmont Realty; and

3. Authorize the Agency Director of Administrative Services to issue a Purchase Order in an amount not to exceed $90,000 to KosmontRealty.

11. City Board, Commission, and Citizen Advisory Committee Minutes Approved in April/May 2023 p. 325
Recommendation:

It is recommended that the Mayor and City Council, of the City of San Bernardino, receive and file the minutes from the City board, commission, and citizen advisory committee meetings approved in April and May 2023.

12. Pre­Approval of Mayor and City Council Travel for FY 2023/24 (All Wards) p. 371 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, pre­approve travel for elected officials for FY 2023/24 as outlined.

13. 2023 Fireworks Regulatory Fee Rate (All Wards) p. 391 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2023­087 of the Mayor and City Council of the City of San Bernardino, California, setting the 2023 Regulatory Fee Rate of 10% for the sale of "safe and sane" fireworks in the City of San Bernardino.

14. Accept the Proposition 64 Public Health and Safety Grant and Issue a Purchase Order to Sicuro Data Analytics LLC (All Wards) p. 400
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2023­088, authorizing:

1. The City Manager to accept the Proposition 64 Public Health and Safety Cohort 3 Grant; and effective July 1st, 2023,

2. The Agency Director of Administrative Services to amend the FY 2023/24 Adopted Budget appropriating $3,000,000 in both revenue and expenditures; and,

3. Issue a purchase order to Sicuro Data Analytics LLC. in an amount not to exceed $400,000; and,

4. The Police Department to increase approved staffing by one Management Analyst I.

Mayor and City Council of the City of San Bernardino Page 5

15. Contract Change Order Approval – Paul Villasenor and Howard Rowe Libraries Improvements (Ward 1, 7) p. 467
Recommendation:

Adopt Resolution No. 2023­089 of the Mayor and City Council of the City of San Bernardino, California:

1. Authorizing the Agency Director of Administrative Services to amend the FY 2022/23 Capital Improvement Plan to record a supplemental appropriation in the amount of $260,401.72 from Library Facilities fund balance and Measure S fund project savings for the Paul Villasenor and Howard Rowe Libraries improvements project; and

2. Approving the Construction Contract Change Order (CCO #1) with US Builders and Consultants in the amount of $440,577.60, for a total contract amount of $796,477.60; and

3. Authorizing project construction, project contingencies, and inspection costs for a total not­to­exceed amount of $907,677.60 for the project; and

4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project.

16. Agreement with Superior Pavement Markings, Inc. for Area Street Sign Replacement Services (All Wards) p. 483
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute a Maintenance Services Agreement with Superior Pavement Markings, Inc., for area street name sign replacement services and related materials.

17. Award Design Services Agreement for Guadalupe Field at Sal Saavedra Park Revitalization Project (Ward 1) p. 824
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the award of a Design Services Agreement with RHA Landscape Architects Planners, Inc. in the amount of $183,465 for the revitalization of Guadalupe Field at Sal Saavedra Park.

18. Award Design Services Agreement for Speicher Memorial Park Ballfield Improvements (Ward 2) p. 881
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the award of a Design Services Agreement with IDS Group, Inc. in the amount of $180,943 for Speicher Memorial Park Ballfield Improvements.

19. Task Order Issued to Transtech Engineers for Augmented Engineering Services Pursuant to Professional Service Agreement for On­Call Engineering Services (All Wards) p. 944
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve a Task Order Transtech002 to Transtech Engineers to provide augmented Capital Improvement Program Programmatic Services pursuant to the approved Professional Services Agreement (PSA) for On­Call Engineering Services and authorize the Agency Director of Administrative Services to issue a purchase order in the amount of $488,880.

Mayor and City Council of the City of San Bernardino Page 6

DISCUSSION

20. Approval of the Fiscal Year 2023­24 Operating Budget and Capital Improvement Plan (All Wards) p. 954
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Adopt Resolution No. 2023­080 of the Mayor and City Council of the City of San Bernardino, California, approving the City of San Bernardino’s Fiscal Year 2023­24 Operating Budget and Capital Improvement Plan;

2. Adopt annual budgets for Fiscal Year 2023­24;

3. Establish the City’s Appropriations Limit as required by Article XII of the California State Constitution.

4. Adopt Resolution No. 2023­081 of the Mayor and City Council of the City of San Bernardino, California, approving an amendment to the to the city­wide salary schedule for full­time, part­time, temporary, and seasonal positions.

21. 2023 State of the City (All Wards) p. 1350
Recommendation:

Adopt Resolution No. 2023­082 of the Mayor and City Council of the City of San Bernardino, California authorizing the Agency Director of Administrative Services to amend the FY 2022/23 operating budget in the amount of $16,000 to facilitate the 2023 San Bernardino State of the City event.

PUBLIC HEARING

22. Proposed Fiscal Year 2023­2024 Annual Action Plan Associated with Community Development Block Grant, HOME Investment Partnership, and Emergency Solutions Grant Programs (All Wards) p. 1356
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Conduct a second Public Hearing to obtain citizens’ comments on the proposed Fiscal Year 2023­2024 Annual Action Plan for the Community Development Block Grant, HOME Investment Partnership, and Emergency Solutions Grant Programs; and

2. Approve the Fiscal Year 2023­2024 Annual Action Plan as an application for funding under Community Development Block Grant, Home Investment Partnerships, and Emergency Solutions Grant programs; and

3. Approve the execution of the Subrecipient Agreements with Inland Fair Housing Mediation Board, Asociacion de Emprendedor@s, Nehemiah Charitable Fund, Neighborhood Housing Services of the Inland Empire, Lutheran Social Services of Southern California, Salvation Army, a California Corporation, Community Action Partnership of San Bernardino County, and Family Service Association of Redlands to effectuate the funding allocations outlined in the Fiscal Year 2023­2024 Annual Action Plan; and

4. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the submittal of the HUD Fiscal Year 2023­2024 Annual Action Plan and certification to HUD.

Mayor and City Council of the City of San Bernardino Page 7

23. Public Hearing and Resolution Confirming Assessments for Delinquent Solid Waste Collection Service Charges on the Property Tax Roll for Fiscal Year 2023­24 (All Wards) p. 1714
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Hold a Public Hearing to consider whether to collect delinquent solid waste collection service charges on the property tax roll for Fiscal Year (FY 2023­24); and

2. Adopt Resolution No. 2023­083 of the Mayor and City Council of the City of San Bernardino, California, adopting the report proposing to have delinquent solid waste collection service charges collected on the tax roll.

24. Continuation, to July 19, 2023, of Public Hearing Regarding Solid Waste Rate Increases and Resolution Adopting Rates for Solid Waste Services, Approving Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc., and Finding the Action Exempt from the California Environmental Quality Act p. 1880 Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California execute the following actions: Continue the Proposition 218 Public Hearing to receive comments on the proposed rate increases and Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc. (“Burrtec”) to the July 19, 2023, Mayor and City Council Meeting.

ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS

25. Utilization Coordination Meetings and franchise fee with Southern California Gas Company (All Wards) – Council Member Alexander p. 1882

26. The Legality of grinding and crushing on site at the Carousel Mall (Ward 1) – Council Member Sanchez p. 1883

27. Proposed meeting time change: Closed Session to start at 4:00pm and Open Session to start at 5:30pm (All Wards) ­ Mayor Tran p. 1884

MAYOR & CITY COUNCIL UPDATES/REPORTS ON CONFERENCES & MEETINGS

ADJOURNMENT
The Mayor and City Council will adjourn to a Special Meeting to be held on Monday, June 26, 2023, at the 201 North E Street, San Bernardino, California 92401 in the Multi­Purpose Room.

The special meeting will begin at 5:30 p.m.

Mayor and City Council of the City of San Bernardino Page 8

CERTIFICATION OF POSTING AGENDA
I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the June 21, 2023, Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City's bulletin board located at 201 North "E" Street, San Bernardino, California, at the Feldheym Central Library located at 555 West 6th Street, San Bernardino, California, and on the City's website sbcity.org on Friday, June 16, 2023.

I declare under the penalty of perjury that the foregoing is true and correct.

Mayor and City Council of the City of San Bernardino Page 9 NOTICE:

Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter on the agenda or not on the agenda, which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body during the period reserved for public comments.

In accordance with Resolution No. 2018­89 adopted by the Mayor and City Council on March 21, 2018, the following are the rules set forth for Public Comments and Testimony:

Public Comments and Testimony:

Rule 1. Public comment shall be received on a first come, first served basis. If the presiding officer determines that the meeting or hearing may be lengthy or complicated, the presiding officer may, in his or her discretion, modify these rules, including the time limits stated below.

Rule 2. All members of the public who wish to speak shall fill out a speaker' s reservation card and turn in the speaker reservation card to the City Clerk prior to the time designated on the agenda. Comments will be received in the order the cards are turned in to the City Clerk. Failure of a person to promptly respond when their time to speak is called shall result in the person forfeiting their right to address the Mayor and City Council.

Rule 3. The presiding officer may request that a member of the public providing comment audibly state into the microphone, if one is present, his or her name and address before beginning
comment. If that person is representing a group or organization the presiding officer may request that the speaker identify that group or organization, including that group or organization' s Address.

Rule 4. Notwithstanding the provisions of Rule 2 and 3 above, a person shall not be required to provide their name or address as a condition of speaking.

Rule 5. Time Limits:

5. 01 Each member of the public shall have a reasonable time, not to exceed three ( 3) minutes per meeting, to address items on the agenda and items not on the agenda but within the subject matter jurisdiction of the Mayor and City Council.

5. 02 Notwithstanding the time limits set forth in subsection 5. 01 above, any member of the public desiring to provide public testimony at a public hearing shall have a reasonable time, not to exceed ( 3) minutes, to provide testimony during each public hearing.

Mayor and City Council of the City of San Bernardino Page 10 Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A three­minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to "share" his/her three minutes with any other member of the public.

Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made.

The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code.

Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed.

Mayor and City Council of the City of San Bernardino Page 11 ALTERNATE MEETING VIEWING METHOD:

If there are issues with the main live stream for the Mayor and City Council you may view the alternate stream on TV3
https://reflect­sanbernardino.cablecast.tv/CablecastPublicSite/watch/1? channel=6

PUBLIC COMMENT OPTIONS
Please use ONE of the following options to provide a public comment:
1) Written comments can be emailed to [email protected]. Written public comments received up to 4:00 p.m. on the day of the meeting (or otherwise indicated on the agenda) will be provided to the Mayor and City council and made part of the meeting record. They will not be read aloud unless you require an ADA accommodation.

Please note: messages submitted via email and this page are only monitored from the publication of the final agenda until the deadline to submit public comments. Please contact the City Clerk at 909­384­5002 or [email protected] for assistance outside of this timeframe. 2) Attend the meeting in person and fill out a speaker slip. Please note that the meeting Chair decides the cut­off time for public comment, and the time may vary per meeting. If you wish to submit your speaker slip in advance of the meeting, please submit your request to speak using the form on the following page: https://tinyurl.com/mccpubliccomments 3) REMOTE PARTICIPATION VIA ZOOM (For public comment only meeting will not be viewable on Zoom)
Submit a request to speak by 4:00 p.m. to https://tinyurl.com/mccpubliccomments or email [email protected]. Please indicate whether you are speaking on an item on the agenda (identify the item number) or providing a general comment.

Please use identifying information when submitting your request to speak such as a name or last four digits of your phone number so that staff can call on you.

The public may begin joining the meeting on Zoom or by calling­in to be added to the speaker queue at 5:15 PM for Closed Session.

For the Regular Meeting please log on no later than 15 minutes after the meeting start time.

Mayor and City Council of the City of San Bernardino Page 12 a) You can use a mobile phone or a landline to dial into a Zoommeeting. i) Dial (669) 900­6833. When prompted, enter the Meeting ID: 677­845­9453 Passcode:2023 ii) Dial *9 from your phone to raise your hand viaZoom
If calling in staff will confirm the last four digits of the caller's phone number and unmute them, the caller must then press *6 to speak from their device. If you are calling in, please turn your volume down on your television or other devices to limit any feedback when you speak.

Continued next page...
8) Join the Meeting by clicking on the Zoom link below:
https://sbcity­org.zoom.us/j/6778459453?pwd=WHduYlU3clJxRklxTFJ2M2xtUlZhZz09 Meeting ID: 677 845 9453
Passcode:2023
You can also Go to Zoom.us and click "Join a Meeting" at the top.

Enter the Meeting ID: 677­845­9453
Passcode:2023
Public Hearings:

If you are commenting on a Public Hearing whether you are speaking remotely or in person you have an opportunity to speak until the Public Hearing has been closed.

CLOSED SESSION
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Sonia Carvalho, City Attorney
Department: City Attorney
Subject: Closed Session
Recommendation:

A. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1):
i. George Luna v. City of San Bernardino, Workers’ Compensation Case Nos. ADJ13592854; ADJ13510564; ADJ13510560;
ADJ2913755 and ADJ10411334.
ii. Promise Gracia, et al. v. City of San Bernardino, San Bernardino Superior Court Case No. CIVSB2301828
B. PUBLIC EMPLOYEE APPOINTMENT (Pursuant to Government Code Section 54957) City Manager
Packet Pg. 13

PRESENTATIONS
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Helen Tran, Mayor
Department: Mayor's Office
Subject: Proclamation for Parks and Recreation Month in the City of San Bernardino – July 2023 (All Wards)
Packet Pg. 14

PROCLAMATION OF

THE MAYOR & CITY COUNCIL
PROCLAIMING JULY 2023, AS

PARKS AND RECREATION MONTH
WHEREAS parks and recreation is an integral part of communities throughout this country, including San Bernardino, California; and WHEREAS parks and recreation promotes health and wellness, improving the physical and mental health of people who live near parks; and WHEREAS parks and recreation promotes time spent in nature, which positively impacts mental health by increasing cognitive performance and well-being, and alleviating illnesses such as depression, attention deficit disorders, and Alzheimer’s; and
WHEREAS parks and recreation encourages physical activities by providing space for popular sports, hiking trails, swimming pools and many other activities designed to promote active lifestyles; and
WHEREAS parks and recreation is a leading provider of healthy meals, nutrition services and education; and
WHEREAS park and recreation programming and education activities, such as out- of-school time programming, youth sports and environmental education, are critical to childhood development; and
WHEREAS parks and recreation increases a community’s economic prosperity through increased property values, expansion of the local tax base, increased tourism, the attraction and retention of businesses, and crime reduction; and WHEREAS parks and recreation is fundamental to the environmental wellbeing of our community; and WHEREAS parks and recreation is essential and adaptable infrastructure that makes our communities resilient in the face of natural disasters and climate change; and
WHEREAS our parks and natural recreation areas ensure the ecological beauty of our community and provide a place for children and adults to connect with nature and recreate outdoors; and
WHEREAS the U.S. House of Representatives has designated July as Parks and Recreation Month; and
WHEREAS the City of San Bernardino, California recognizes the benefits derived from parks and recreation resources.

NOW THEREFORE, BE IT RESOLVED BY the City of San Bernardino Mayor and City Council, do hereby declare that July 2023 is recognized as PARKS AND RECREATION MONTH.

Presented this 21st day of June 2023
Packet Pg. 15

PRESENTATIONS
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Mayor Helen Tran
Department: Mayor's Office
Subject: Proclamation for Juneteenth
Packet Pg. 16
Juneteenth Proclamation
June 2023
WHEREAS, President Abraham Lincoln signed the Emancipation Proclamation on January 1, 1863, declaring the slaves in Confederate territory free, paving the way for the passing of the 13th Amendment which formally abolished slavery in the United States of America; and
WHEREAS, word about the signing of the Emancipation Proclamation was delayed some two and one half years, to June 19, 1865, in reaching authorities and AfricanAmericans in the South and Southwestern United States; and WHEREAS, June 19th has a special meaning to African-Americans, and is called "JUNETEENTH" combining the words June and Nineteenth, and has been celebrated by the African-American community for over 150 years; and WHEREAS, in 2021 Congress passed and President Biden signed the National Independence Day Act recognizing Juneteenth as a National Holiday; and WHEREAS, Juneteenth will be celebrated in the City of San Bernardino, and throughout the State of California and the United States on June 19, 2023.

NOW THEREFORE BE IT RESOLVED, the City of San Bernardino Mayor and City Council, do hereby declare June 19, 2023, as

JUNETEENTH
We urge all citizens to become more aware of the significance of this celebration in African-American History and in the heritage of our nation and City.

Presented on this 21st day of June 2023
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PRESENTATIONS
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager
Daniel Hernandez, Agency Director of Public Works,
Operations, and Maintenance
Department: Public Works
Subject: San Bernardino County Transportation Authority (SBCTA) Project Updates
Packet Pg. 18
Packet Pg. 19
MT. VERNON AVENUE BRIDGE PROJECT SCHEDULE PROJECT SCHEDULE

BRIDGE CLOSED & START

OF BRIDGE DEMOLITION
DECEMBER 2020
APRIL 2021

BRIDGE DISASSEMBLY

COMPLETED

WORK WITHIN BNSF

RAILYARD
2021-2023
2024

ANTICIPATED COMPLETION OF

FINAL DESIGN & START OF NEW

BRIDGE CONSTRUCTION

ANTICIPATED END OF

CONSTRUCTION
2025
Packet Pg. 20
MT. VERNON AVENUE BRIDGE PROJECT SCHEDULE PROJECT SCHEDULE

BRIDGE CLOSED & START OF

BRIDGE DEMOLITION
DECEMBER 2020
APRIL 2021

BRIDGE DISASSEMBLY

COMPLETED

WORK WITHIN BNSF

RAILYARD
2021-2023
2024

ANTICIPATED COMPLETION OF

FINAL DESIGN & START OF NEW

BRIDGE CONSTRUCTION

ANTICIPATED END OF

CONSTRUCTION
2025
Packet Pg. 21
• Latest structural safety and seismic
standards
• New ADA compliant structure will
feature widened travel lanes,
a center median, widened
sidewalks
and new bike lanes.
• Open for travel to pedestrians,
bicyclists, motorists, and
commercial vehicles.
• Features to capture the bridge’s
rich history.
• Ensure westside San Bernardino
residents and businesses have a
safe, reliable bridge.

MT. VERNON AVENUE BRIDGE PROJECT BENEFITS Packet Pg. 22 MT. VERNON AVENUE BRIDGE DETOUR ROUTES Packet Pg. 23
MT. VERNON AVENUE BRIDGE PUBLIC OUTREACH Packet Pg. 24
SR 210 WATERMAN AVENUE PROJECT Waterman Avenue
Packet Pg. 25
I-215 UNIVERSITY PARKWAY - EXISTING DIAMOND INTERCHANGE CONFIGURATION University Parkway
Packet Pg. 26
I-215 UNIVERSITY PARKWAY INTERCHANGE Packet Pg. 27
I-215 UNIVERSITY PARKWAY - DIVERGING DIAMOND INTERCHANGE (DDI) Signal Phasing and Traffic Movements 1
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Signal Phasing and Traffic Movements 2
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[email protected]
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@goSBCTA
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APPOINTMENTS
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Helen Tran, Mayor
Department: Mayor's Office
Subject: Library Board Appointment of Randy S. Clyde
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Randy S. Clyde to the Library Board. Mr. Clyde will fill a vacant seat with a term ending in December 2026. Council Office staff have verified the appointee is a registered voter within the City.

Background
The Library Board was established under Charter Section 602 and is responsible for providing adequate library services; appointing a Library Director; administering the Library budget allocated by the City Council; making and enforcing all rules and regulations applicable to library services; and administering such additional matters as may be determined by ordinance.

Section 2.27.010 A of the municipal code states that whenever any vacancy of the Library Board occurs for any reason, and at least 60 days prior to expiration of any Library Board of Trustee member’s term of office, a vacancy notice must be posted to enable qualified candidates to apply. A vacancy notice was posted on May 5, 2023, at the following locations:

Feldheym Library, 555 W. 6th St, San Bernardino, CA 92410 Dorothy Inghram Branch Library, 1505 W Highland Ave, San Bernardino, CA 92411 Howard M Rowe Branch Library, 108 E Marshall Blvd, San Bernardino, CA 92404 Section 2.27.010 B of the municipal code states that the Mayor shall determine the timing and manner of interviewing qualified applicants for the Library Board, which may include interviews with the Mayor, an ad hoc council subcommittee formed for that purpose, or setting of a special meeting with public interviews of those selected for interview. Each appointee to the Library Board shall be selected by a vote of the Mayor and entire City Council as provided in Charter section 304(b).

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The commission is comprised of five (5) members who shall be appointed by a vote of the Mayor and entire Council, as provided for in section 304(b) of the Charter, to serve without compensation. The term of service for this reappointment will be a four-year term.
2021-2025 Strategic Targets and Goals
The proposed appointment aligns with Key Strategic Goal 2: Focused, Aligned Leadership and Unified Community by making appointments to Mayor and City Council boards, commissions, and committees.

Fiscal Impact
No fiscal impact to City.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Randy S. Clyde to the Library Board. Mr. Clyde will fill a vacant seat with a term ending in December 2026. Council Office staff have verified the appointee is a registered voter within the City.

Attachments
Attachment 1 – Commission application – Randy S. Clyde
Attachment 2 – Ordinance No. MC-1483Enacting San Bernardino Municipal Code Attachment 3 – Municipal Code Chapter 2.27 Related to the Library Board Attachment 4 – Notice of Annual Vacancies – 05-05-23
Ward:

All Wards
Synopsis of Previous Council Actions:

April 18, 2018 Ordinance No. MC-1483 enacting San Bernardino Municipal Code Chapter 2.27 related to the “Library Board” was adopted.

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28 B. Applicants for membership on the Library Board of Trustees and all Board Members shall be adult residents and registered voters of the City of San Bernardino, and no member shall be an employee of the City or hold any other elected office in the City, while applying for or holding a membership seat on the Library Board of Trustees.

Members shall be appointed on the basis of demonstrated knowledge and experience in the area of library operations, fundraising, budget and personnel management, education, legal services, purchasing, or other areas which relate to the mission and purpose of the Board. Members shall commit to provide the best possible library services for the community. Appointments shall be made with consideration of community involvement, interpersonal and communication skills, geographical distribution of commissioners and diversity. The Mayor shall determine the timing and manner of interviewing qualified applicants, which may include interviews with the Mayor, an ad hoc council subcommittee formed for that purpose, or setting of a special meeting with public interviews of those selected for interview. Each appointee to the Library Board shall be selected by a vote of the Mayor and entire City Council as provided in Charter section 304(b). Removal of any member of the Library Board shall also be subject to Charter section 304(b). Members of the Library Board of Trustees shall serve without compensation.

2.27.020 Terms of Office
Each member of the Library Board of Trustees shall serve a four year term. Terms shall be staggered so that three members are appointed in 2018 for a four year term and every four years thereafter, and two members are appointed in 2018 for a two year term and every four years thereafter. The term of each member of the board shall continue until a successor has been appointed.
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28 2. 27.030 Oath of Office
Prior to undertaking his or her duties as a member of the Library Board of Trustees, the member shall subscribe and file his or her official oath of office with the City Clerk.

2. 27.040 Meetings, Chair, Quorum and Attendance
The Library Board of Trustees shall meet at least once per month, with regular meetings scheduled by adopted rules or regulations, and special meetings as needed, to be posted and conducted in accordance with the Ralph M. Brown Act. A quorum of three of the board members is required to conduct any meeting. The Board shall elect a president and vice-president from among its members, and the president and vice-president shall serve for a term oftwo years. Any member who is absent for three ( 3) consecutive meetings, or in excess of four ( 4) meetings per year, excused or unexcused, may be subject to removal from the Board.

2. 27.050 Reporting
The Library Board of Trustees shall provide a copy of its agenda, attachments and minutes, to the Mayor, City Council, City Manager, City Attorney and such other City officials as it may deem advisable. The Library Board of Trustees shall schedule, from time to time, agenda items as requested by the City Manager for the purpose of discussing items in closed or open session. The Library Department budget and all labor agreements shall be submitted to City Council for approval pursuant to Charter Sections 508 and 602.

2.28.060 Approval of Rules and Regulations
The Rules and Regulations of the Library Board of Trustees in effect at the time of adoption of this ordinance, copies of which Rules and Regulations are on file in the office of the City Clerk, are approved for enforcement purposes. Subsequent amendments to the Rules 3 Packet Pg. 40
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and Regulations approved by the Library Board shall be submitted to the City Council for approval by resolution and shall be enforceable pursuant to this chapter.

SECTION 2. INCONSISTENCIES. Any provision of the San Bernardino Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies, is hereby repealed or modified to the extent necessary to effect the provisions ofthis Ordinance.

SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The Mayor and City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, phrases, or words be declared unconstitutional, invalid, or ineffective.

SECTION 4. PUBLICATION. This Ordinance shall take effect and be in full force thirty (3 0) days from and after the passage thereof, and prior to the expiration offifteen (15) days from its passage shall be published once in a newspaper of general circulation, printed and published in the City of San Bernardino or, in the alternative, the City Clerk may cause to be published a summary of this Ordinance and a certified copy ofthe text of this Ordinance shall be posted in the office ofthe City Clerk five (5) days prior to the date of adoption ofthis Ordinance, and within fifteen ( 15) days after adoption, the City Clerk shall cause to be published the aforementioned summary and shall post in the office of the City Clerk a certified copy of this Ordinance together with the names of the members of the City Council voting for and against the same.

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ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN

BERNARDINO, CALIFORNIA, ENACTING SAN BERNARDINO MUNICIPAL CODE CHAPTER 2.27 RELATED TO THE " LIBRARY BOARD"
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and City Council of the City of San Bernardino at a joint regular meeting thereof, held on the 18a' day ofApril 2018, by the following vote, to wit:

Council Members: AYES NAYS

MARQUEZ
BARRIOS k

VALDIVIA

SHORETT
NICKEL

RICHARD

MULVIHILL XCS

ABSTAIN ABSENT
Georgea arena, CMC, City Clerk
The foregoing Ordinance is hereby approved this
18th
day ofApril 2018.

R. Carey Da4s, Mayor
City of Sari Bernardino
Approved as to form:

Gary D. Saenz, City Attorney
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NOTICE OF VACANCIES
The City of San Bernardino is currently accepting applications to fill the following unscheduled vacancy:
• Board of Library Trustees (one seat – for a term of four-years, expiring December 2026)
Meetings are at 3:00 p.m. on the second Tuesday of each month, in the Feldheym Central Library, Administration Board Room located at 555 West 6th Street, San Bernardino, CA 92410)
All scheduled vacancies will become vacant when the existing terms expire on December 2026, or until the seat is filled.

Applicants for membership on the Library Board of Trustees and all Board Members shall be adult residents and registered voters of the City of San Bernardino, and no member shall be an employee of the City or hold any other elected office in the City, while applying for or holding a membership seat on the Library Board of Trustees.

Members shall be appointed on the basis of demonstrated knowledge and experience in the area of library operations, fundraising, budget and personnel management, education, legal services, purchasing, or other areas which relate to the mission and purpose of the Board.

Members shall commit to provide the best possible library services for the community.

Each appointee to the Library Board shall be selected by a vote of the Mayor and entire City Council as provided in Charter section 304(b). Members of the Library Board of Trustees shall serve without compensation.

The deadline for filing applications is noon on Friday, May 19, 2023. The application and additional information about the Boards and Commissions can be found at:
https://www.sbcity.org/About/Boards_Commissions_Citizen_Advisory_Committees or by calling (909) 384-5188.

For more information, contact the Council Office at (909) 384-5188.

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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager
Mary Lanier, Interim Agency Director of Community,
Housing, and Economic Development
Department: Community, Housing, & Economic Development (CED) Subject: Amendment No. 2 to the Professional Services
Agreement with Spicer Consulting Group (All Wards)
Recommendation:

It is recommended that the Mayor and City Council, of the City of San Bernardino, California:

1. Authorize the Interim City Manager to execute Amendment No. 2 to the Professional Services Agreement with Spicer Consulting Group (SCG) to increase the purchase order amount by $200,000, to an amount not-to-exceed $741,018, for as-needed consulting services related to Maintenance Assessment District Administration and the formation/annexation of Community Facilities Districts and Assessment Districts; and

2. Authorize exercising the City’s second twelve (12) month extension option, extending the term of the Professional Services Agreement through June 30, 2024.

Background
The City of San Bernardino is currently responsible for administering and managing 63 active Maintenance Assessment Districts (MADs). Two MADs have no improvements and are therefore not yet maintained. Property owners included in each district financially contribute by way of a special assessment. The assessments generated within a specific geographical benefit area may only be spent to support improvements within that specific district.

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The City has transitioned to the implementation of Community Facilities Districts (CFDs) which allow for the financing of public improvements and services including, but not limited to, landscaping, lighting, streets, sewer systems and other basic infrastructure, police protection, graffiti removal, schools, parks and trails. CFDs have the ability to fund the much-needed ongoing maintenance demands that typically accompany a new development.

Discussion
The City of San Bernardino currently contracts with SCG for exclusive administrative support services for the 63 existing active MADs, as well as the formation/annexation of new CFDs. Serving as a Project Manager, SCG prepares the schedule of events, procedural and financial considerations, conducts a needs assessment, and determines the eligibility of any limitation on the funding of the maintenance services specific to the general vs. special benefit. SCG works with City staff to prepare and review annual maintenance district budgets, prepare the annual application for the tax rolls in a format acceptable to the Auditor/Controller’s Office, and prepare the Annual Engineer’s Reports pursuant to Government Code Section 61115 and the provisions of California Article XIIID (Proposition 218).

SCG possesses a tremendous amount of experience in administering these types of special financing districts for cities, providing the support for the much-needed revenues these districts provide for maintenance services. The City has experienced a significant increase in new annexation and Assessment District formation requests.

As such, staff are seeking an amendment to the existing total agreement amount of $541,018 and is requesting an increase of $200,000 resulting in a not-to-exceed amount of $741,018 to address this increased demand. In addition, given that the Professional Services Agreement is set to expire on June 30, 2023, staff are requesting that the City exercise its second twelve (12) month extension option to the Professional Services Agreement. This will allow the City to continue to utilize SCG for as-needed consulting services related to Maintenance Assessment District Administration and the formation/annexations of Community Facilities Districts and Assessment Districts. 2021-2025 Strategic Targets and Goals
This project is consistent with Strategic Target No 1. Improved Operational & Financial Capacity and Strategic Target No 4. Economic Growth & Development. The contract amendment and extension will contribute to ensure that the City is clean and attractive while providing the infrastructure designed for long-term economic growth.

Fiscal Impact
There is no fiscal impact to the City. Funding for consultant services is recovered in administrative costs included in district annexation/formation fees paid by developers, as well as the indirect costs assessed to each district during the FY 2022/23 levy process.

Conclusion
It is recommended that the Mayor and City Council, of the City of San Bernardino, Packet Pg. 48
California:

1. Authorize the Interim City Manager to execute Amendment No. 2 to the Professional Services Agreement with Spicer Consulting Group (SCG) to increase the purchase order amount by $200,000, to an amount not-to-exceed $741,018, for as-needed consulting services related to Maintenance Assessment District Administration and the formation/annexation of Community Facilities Districts and Assessment Districts; and

2. Authorize exercising the City’s second twelve (12) month extension option, extending the term of the Professional Services Agreement through June 30, 2024.

Attachments
Attachment 1 – Amendment No. 2 to Professional Services Agreement Attachment 2 – Amendment No. 1 to Professional Services Agreement Attachment 3 – SCG Professional Services Agreement
Ward:

All Wards
Synopsis of Previous Council Actions:

November 14, 2018 The City of San Bernardino entered into a Consulting Services Agreement with Spicer Consulting Group to provide assistance with the administration, formation and
annexations of special financing districts throughout the City.

The original Agreement term was through July 1, 2019 and allowed for two (2) one-year extensions.

January 16, 2019 The Mayor and City Council adopted Resolution No. 2019-9, authorizing and directing the City Manager to execute the First Amendment to the Consultant Services Agreement with Spicer Consulting Group increasing the not-to-exceed
amount of the Agreement to $145,500. This amendment did not extend the term of the original Agreement.

April 1, 2020 The Mayor and City Council adopted Resolution No. 2020- 55, approving the award of a Professional Services
Agreement with Spicer Consulting Group for a three-year term retroactive to July 1, 2019, with total agreement amount not to exceed $316,018 and extending the Professional
Services Agreement through June 30, 2022.

June 1, 2022 The Mayor and City Council approved Amendment No. 1 to the Professional Services Agreement with Spicer
Consulting Group, extending the term of the Agreement
through June 30, 2023.

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AMENDMENT NO. 2 TO

PROFESSIONAL SERVICES AGREEMENT

WITH SPICER CONSULTING GROUP
This Amendment No. 2 to the Professional Services Agreement is made and entered into as of May 17, 2023 (“Effective Date”) by and between the City of San Bernardino (“City”) and Spicer Consulting Group (“Consultant”). City and Consultant are sometimes referred to herein individually as a “Party” and collectively as “Parties.”

RECITALS
A. WHEREAS, the City and Consultant have entered into an agreement, dated July 1, 2019, for consulting services related to Maintenance Assessment District Administration and the formation/annexation of Community Facilities Districts and Assessment Districts (the “First Agreement”).

B. WHEREAS, the City and Consultant executed Amendment No. 1, dated June 1, 2022, in order to extend the term of the First Agreement pursuant to the City’s first extension option and to include additional funds for the continued performance of services (“Amendment No. 1”).

C. WHEREAS, the Parties now desire to amend the First Agreement in order to extend the term of the First Agreement pursuant to the City’s second extension option and to include additional funds for the continued performance of the services NOW, THEREFORE, in consideration of the above recitals and the mutual covenants, conditions, and promises contained in the this Amendment No. 2, Amendment No. 1, and the First Agreement, the Parties mutually agree as follows:

AGREEMENT

1. Incorporation of Recitals. The recitals listed above are true and correct and are hereby incorporated herein by this reference.

2. Term. Pursuant to Section 6 of the First Agreement, the City hereby exercises its second twelve (12) month extension option. The term of the First Agreement shall be extended through June 30, 2024, unless earlier terminated.

3. Compensation. The compensation for Services performed pursuant to this Amendment No. 2 shall not exceed Two Hundred Thousand Dollars ($200,000.00), thereby increasing the total not to exceed compensation of the First Agreement to the amount of Seven Hundred Forty One Thousand Eighteen Dollars ($741,018.00).

4. Full Force. Except as amended by this Amendment No. 2, all provisions of the First Agreement, as previously amended, including without limitation the indemnity and insurance provisions, shall remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 2.

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5. Electronic Transmission. A manually signed copy of this Amendment No. 2 which is transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Amendment No. 2 for all purposes. This Amendment No. 2 may be signed using an electronic signature.

6. Counterparts. This Amendment No. 2 may be signed in counterparts, each of which shall constitute an original.

IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 2 on the Effective Date first herein above written.

CITY OF SAN BERNARDINO
APPROVED BY:

Charles E. McNeely,
Interim City Manager
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

CONSULTANT

SPICER CONSULTING GROUP
Signature
Shane Spicer
Managing Director
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely; Interim City Manager
Mary Lanier, Interim Agency Director of Community, Housing, and Economic Development
Department: Community, Housing, & Economic Development (CED) Subject: Resolution Declaring Intent to Annex Territory: Community Facilities District No. 2019-1 (Maintenance Services):

Annexation No. 35, Tax Zone No. 36 (Starbucks) (Ward 2) Recommendation:

It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2023-085 of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 35), and authorizing the levy of special taxes therein.

Background
On June 5, 2019, the Mayor and City Council approved Resolution No. 2019-81 establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the "CFD No. 2019-1" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.

Discussion
On July 17, 2019, the Mayor and City Council adopted Resolution No. 2019-178, establishing CFD No. 2019-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”). CFD No. 2019-1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the City.

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Development projects are subject to conditions of approval that require projects to form/annex a maintenance district. These districts apply an annual fee or special tax upon properties within the District which provide the revenue to offset the cost of maintenance of the public improvements necessary to serve the development. The Developer has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Developer has submitted a "Consent and Waiver" form, which is on file in the City Clerk's office that authorizes the City to (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing.

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 streetlights within public rightsof-way and traffic signals; and

2. Maintenance of streets, including pavement management; and

3. Maintenance and operation of water quality improvements including storm drainage and flood protection facilities; and

4. 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 development includes approximately 0.45 gross acres of a commercial property. The property is located at the northeast intersection of Eucalyptus Dr. and E Highland Ave. At build out, this development will include a Starbucks as a new Tax Zone No. 36 within CFD No. 2019-1, as shown in the boundary map and included in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2019-1, a Resolution of Intention to annex property must be approved to identify the facilities to be maintained and establish the maximum special tax for this Tax Zone. The Resolution of Intention shall also set the date and time for the public hearing.

The rate and method of apportionment of the special tax for this Tax Zone, (Tax Zone No. 36), is included as Exhibit “C” to the Resolution of Intention. The maximum annual special tax for this development has been calculated to be $6,648 per acre for FY 2023/24. Special Tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. Exhibit “H”, attached to the staff report is a maintenance exhibit to illustrate which services are being maintained by the CFD.

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.

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• 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). • 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 Resolution of Intention, the Public Hearing would be scheduled for August 2, 2023.
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. Upon full completion of the development, it is estimated that there will be an annual collection of special tax revenues of approximately $2,958 from Special Tax A to be used to pay for maintenance costs.

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 San Bernardino, California, adopt Resolution No. 2023-085 of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 Packet Pg. 70
(Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 35), and authorizing the levy of special taxes therein.

Attachments
Attachment 1 – Resolution of Intention No. 2023-085
Attachment 2 – Exhibit A - Description of Territory
Attachment 3 – Exhibit B - Description of Services
Attachment 4 – Exhibit C - Rate and Method of Apportionment Attachment 5 – Exhibit D - Boundary Maps
Attachment 6 – Exhibit E - Signed Petition
Attachment 7 – Exhibit F - Notice of Public Hearing
Attachment 8 – Exhibit G - Special Election Ballot
Attachment 9 – Exhibit H - Maintenance Exhibit
Attachment 10 – Project Map
Ward:

Second 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 “MelloRoos 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 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.

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Resolution No. 2023-085
Resolution No. 2023-085
June 21, 2023

RESOLUTION NO. 2023-085

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

DECLARING ITS INTENTION TO ANNEX TERRITORY
INTO COMMUNITY FACILITIES DISTRICT NO. 2019-1
(MAINTENANCE SERVICES) OF THE CITY OF SAN

BERNARDINO, ADOPTING A MAP OF THE AREA TO BE
PROPOSED (ANNEXATION NO. 35) AND AUTHORIZING

THE LEVY OF A SPECIAL TAXES THEREIN
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on June 5, 2019, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”) approved Resolution No. 2019-081 establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California, defined the "CFD No. 2019-1", for the purpose 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; and
WHEREAS, the Mayor and City Council has received a written instrument from the landowner in the CFD No. 2019-1 to initiate and conduct proceedings pursuant to the Act, to annex territory to CFD No. 2019-1 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; and
WHEREAS, the Mayor and City Council has been advised that certain property owners have requested that the area shown in Exhibit D be annexed territory to the boundaries of CFD No. 2019-1, that a rate and method of apportionment of the special tax to be levied therein be established.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. Intent to Annex. The Mayor and City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit A attached hereto. The Mayor and City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District.

SECTION 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2019-1 (Maintenance Services)”.

SECTION 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed are included within the boundaries within which property may annex to CFD No. 2019-1 and are more particularly described and shown on that certain map Packet Pg. 72
Resolution No. 2023-085
Resolution No. 2023-085
June 21, 2023

entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California,” as recorded on June 6, 2019 in Book 88 of Maps of Assessment and Community Facilities District, Page 33, and as Instrument No. 2019-0185395 in the official records of the County of San Bernardino. The territory proposed to be annexed to the CFD No. 2019-1 is described in Exhibit A, attached hereto, and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 35, Community Facilities District No. 2019-1 (Maintenance Services), City of San Bernardino, County of San Bernardino, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.

SECTION 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2019-1 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “incidental expenses,” which include costs associated of CFD No. 2019-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2019-1. The Services authorized to be financed by CFD No. 2019-1 are in addition to those currently provided in the territory of CFD No. 2019-1 and do not supplant services already available within that territory.

SECTION 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually within CFD No. 2019-1. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit C.

SECTION 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the Mayor and City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2019-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of San Bernardino no later than 15 days prior to the date of the hearing specified in Section 7 hereof.

SECTION 7. Public Hearing. The Mayor and City Council hereby fixes 7:00 p.m., or as soon thereafter as practicable, on Wednesday, August 2, 2023, at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, as the time and place when and where the Mayor and City Council will conduct a public hearing on the proposed annexation of the said territory to the CFD No. 2019-1.

SECTION 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2019-

1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act.

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Resolution No. 2023-085
Resolution No. 2023-085
June 21, 2023

SECTION 9. Mailing Ballots. In anticipation of its action on Wednesday August 2, 2023 to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the Mayor and City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2019-1 a ballot in substantially the form set forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.

SECTION 10. That 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 11. 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 12. 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 21st day of June 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. 2023-085
Resolution No. 2023-085
June 21, 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. 2023-085, adopted at a regular meeting held on the 21st day of June 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. 35 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 Numbers (APNs).

APN Owner Name
0285-742-18 SimonCRE JC Saguaro III, LLC
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EXHIBIT B

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 C
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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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. 81
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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City of San Bernardino 6
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. 84
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. 85
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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).

Packet Pg. 86
City of San Bernardino 10
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.

Packet Pg. 87
City of San Bernardino 11
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 2023-24. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2019-1.

TAX ZONE 36
CUP 22-03
Item Description Estimated Cost
1 Lighting $120
2 Streets $1,454
3 Drainage $129
4 Reserves $255
5 Admin $1,000
Total $2,958
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 36
FY 2023-24 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 $6,648 $0
TAX ZONE 36
FY 2023-24 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $6,648 $0
Packet Pg. 88
City of San Bernardino 12
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 33 34 PM 20392 2023-24 $2,785 / Acre $158 / Acre GWS#7 Development, LLC 34 35 CUP 21-16 2023-24 $533 / Acre $193 / Acre MLG SB Land LLC & Grandfather’s Land Holdings LLC
35 36 CUP 22-03 2023-24 $6,648 / Acre $0 / Acre SimonCRE JC Saguaro III, LLC Packet Pg. 89
City of San Bernardino 13
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.

Packet Pg. 90
City of San Bernardino 14
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.

Packet Pg. 91
City of San Bernardino 15
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. 92

EXHIBIT D
SHEET 1 OF 1 SHEET
ANNEXATION MAP NO. 35
COMMUNITY FACILITIES DISTRICT NO. 2019-1
(MAINTENANCE SERVICES)

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA

THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE
ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1
(MAINTENANCE SERVICES), OF THE CITY OF SAN

BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF
CALIFORNIA.

SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE

THIS MAP WAS FILED UNDER DOCUMENT
_____________, THIS _______ DAY OF _______, 20 ____,
AT _____ M. IN BOOK _____ OF ______________ AT PAGE ____,

AT THE REQUEST OF CITY OF SAN BERNARDINO IN THE AMOUNT
OF $_____________.

NUMBER

THE BOUNDARIES OF WHICH COMMUNITY FACILITIES

DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP

THEREOF WHICH WAS PREVIOUSLY RECORDED ON
JUNE 6, 2019 IN BOOK 88 OF MAPS OF ASSESSMENT
AND COMMUNITY FACILITIES DISTRICT AT PAGE 32 AND
AS INSTRUMENT NO. 2019-0185323 IN THE OFFICE OF THE

COUNTY RECORDER OF THE COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA.

CHRIS WILHITE

ASSESSOR-RECORDER

SAN BERNARDINO COUNTY
BY:________________________________

DEPUTY RECORDER

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2019-1
(MAINTENANCE SERVICES) FOR THE CITY OF SAN BERNARDINO,

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WAS

APPROVED BY THE CITY COUNCIL OF THE CITY OF SAN

BERNARDINO AT
ON THE ____ DAY OF ____________________,

A REGULAR MEETING THEREOF, HELD
20 ____.

BY ITS RESOLUTION NO. ____________________
_________________________________________

CITY CLERK, CITY OF SAN BERNARDINO
FILED IN THE OFFICE OF THE CITY CLERK THIS _____ DAY OF ________, 20 ____.
36 0285-742-18
_________________________________________

CITY CLERK, CITY OF SAN BERNARDINO
þ18
þ ¤ 330 66
CFD 2019-1
TAX ZONE 36 þ0
þ210
þ259 _
¤
¤ 66
66 LEGEND §¦215

ANNEXATION AREA BOUNDARY
þ PARCEL LINE
§¦10 38

CITY BOUNDARY
-

THIS ANNEXATION MAP CORRECTY SHOWS THE LOT OR

PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF
THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS

CONCERNING THE LINES AND DIMENSIONS OF LOTS OR

PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR
FISCAL YEAR 2022-23.

XXXX-XXX-XX
36 ASSESSOR PARCEL NUMBER (APN)

TAX ZONE
Packet Pg. 93
Packet Pg. 94
DocuSign Envelope ID: 0F9AA524-33AF-4C7F-81A2-E34B1C803F68

EXHIBIT E

PETITION TO THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO

REQUESTING ANNEXING TERRITORY INTO A COMMUNITY FACILITIES DISTRICT NO. 2019-1 OF THE CITY OF SAN BERNARDINO AND A WAIVER WITH RESPECTS

TO CERTAIN PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE LEVY OF SPECIAL TAXES

THEREON TO PAY THE COSTS OF SERVICES TO BE PROVIDED BY THE

COMMUNITY FACILITIES DISTRICT

1. The undersigned requests that the City Council of the City of San Bernardino, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) (the “Community Facilities District”) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the community facilities district.

2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance required to keep the landscape lighting, street lighting, traffic signals, flood control facilities, ground cover, shrubs, plants and trees, irrigation systems, graffiti removal, sidewalks and masonry walls, fencing entry monuments, tot lot equipment and associated appurtenant facilities within the district in a healthy, vigorous and satisfactory working condition.

3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District as described in Exhibit A hereto and as shown on the map Exhibit B hereto.

4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed community facilities district. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the creation of the Community Facilities District or at the next available meeting.

5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code.

6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annexing territory into Community Facilities District No. 2019-1 of the portion of the incorporated area of the Packet Pg. 95
DocuSign Envelope ID: 0F9AA524-33AF-4C7F-81A2-E34B1C803F68 City of San Bernardino or the special election therein shall be invalidated or affected by any such irregularity, error mistake or departure.
5/10/2023 IN WITNESS WHEREOF, I hereunto set my hand this ____ day of __________, 20___.

SimonCRE JC Saguaro III, LLC
By: ____
Name:

Title:
_____________________
Joshua Simon
Manager
OWNER'S PROPERTY:

TRACT MAP OR PARCEL MAP NO.
or PROJECT NO. Tract No. 10810, M.B. 159/12-13
OWNER'S MAILING ADDRESS:
___
6_9_0_0_E_2_n_d_
S_t
______________________________
Scottsdale, AZ 85251
__________________________________________
__________________________________________

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO THIS ____ DAY OF __________, 20___.
_____________________________________
City Clerk of the City Council of the
City of San Bernardino
Packet Pg. 96
DocuSign Envelope ID: E92A3FA9-615D-4D53-BC7B-5012323D78D6 Acknowledgment Regarding Property to be Included into Community Facilities District No. ꢀ2ꢀ01ꢀ9ꢀ-1ꢀ The developer/property owner of (Tract No. / Assessor’s Parcel No.) _____
02 _
8 _
5 _
7 _
42 _
1 _
8 ___________
hereby acknowledges that: If the landscaping, drainage, lighting and eligible public improvements within the Community Facilities District No. 2019-1 ꢀꢀꢀꢀꢀ the maintenance areas of (Assessor’s Parcel Nos.) ______
0 _
2 _
8 _
57 _
4 _
2 _
1 _
8 _____________, which is to be
included in the Community Facilities District No.
ꢀ
2ꢀ0ꢀ1ꢀ9ꢀ-1ꢀ of the City of ꢂꢃꢄꢁ ꢅꢆꢇꢄꢃꢇꢈꢉꢄꢊ are completed prior to the levy and collection of special taxes upon property within said tract for the maintenance of such landscape and improvements, the developer/property owner will continue to be responsible for and will maintain the landscaping, drainage, lighting, and eligible public improvements within such maintenance areas at its sole expense, and the City will not assume responsibility for the maintenance of such landscaping, drainage, lighting and eligible public improvements until such time as the City is able to collect such special taxes to pay the costs of the maintenance of such landscaping, drainage, lighting, and eligible public improvements.

DATED: OWNER(S): SimonCRE JC Saguaro III, LLC
5/10/2023
___________________
Joshua Simon
_________________________________
(Print Name)
___________
(Signature)
_______
Manager
_________________________________
(Title)
__
N_/
_
A___________________________
__
(Print Name)
_________________________________
(Signature)
_________________________________
(Title)
Packet Pg. 97
Packet Pg. 98
Packet Pg. 99
Packet Pg. 100

EXHIBIT F

NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 35)
NOTICE IS HEREBY GIVEN that the City Council of the City of San Bernardino on June 21, 2023 adopted its Resolution No. 2023-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2019-1 is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Wednesday, August 2, 2023 at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2019-1. At the hearing, the testimony of all interest 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 August 2, 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.

DATED: ____________, 2023 _________________________________________ City Clerk of the City of San Bernardino
PUB: _______________, 2023
Packet Pg. 101

EXHIBIT G

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 35
(August 2, 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
SimonCRE JC Saguaro III, LLC 0.45 1
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 July 19, 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 August 2, 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 August 2, 2023.

Very truly yours,
Genoveva Rocha, CMC, City Clerk
Packet Pg. 102
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

SimonCRE JC Saguaro III, LLC
Attn: Dominic Ghaby
6900 E 2nd Street
Scottsdale, AZ 85251
0285-742-18

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 June 21, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 35 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__.

Dominic Ghaby
Development Project Manager
Signature
Print Name
Title
Packet Pg. 103

EXHIBIT H
Packet Pg. 104

HIGHLAND AVE
VALA
R
AI D
R
EUC
ALY
P
TUS
D
R

LYNWOOD WAY
23 RD ST
·|}þ210

MILL ST

ORANGE ST

WATER ST
H ST

MARSHALL BLVD

PARK AVE

ARROWHEAD AVE

CHURCH AVE
5 TH ST MERRIS DR
36TH ST

CITRUS ST
48TH ST
D

BASE LINE ST
ST

LENA RD
39TH ST
3RD ST
30TH ST

PIEDMONT DR
8TH ST

SPRUCE ST
3 RD ST
7TH ST

GILBERT ST

SEPULVEDA AVE
28TH ST

MOUNTA NI AVE
6TH ST

GROVE AVE

ELM AVE

HEMLOCKDR

TERRACE DR

CENTER ST

DATE ST
34TH ST

SEINE AVE
56TH ST
21ST ST
2ND ST

PALM AVE

BASELINE ST

TH RI D AVE

BACON LN
18TH ST
23RD ST
40TH ST

BASELINE DR

ELMWOOD AVE
26TH ST 25TH ST

CASE AVE

SHEFFIELD DR

OSBUN RD
29TH ST

DUNDEE AV
V
E

NI E ST

F RI ST AVE
5TH ST ELM ST
CFD NO. 2019-1 (MAINTENANCE SERVICES)
ANNEXATION NO. 35

PROJECT MAP
^
Packet Pg. 105

CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely; Interim City Manager
Mary Lanier, Interim Agency Director of Community, Housing, and Economic Development
Department: Community, Housing, & Economic Development (CED) Subject: Resolution Declaring Intent to Annex Territory:

Community Facilities District No. 2019-1 (Maintenance
Services): Annexation No. 36, Tax Zone No. 37 (5570
Industrial) (Ward 6)
Recommendation:

It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2023-086 of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 36) and authorizing the levy of a special taxes therein.

Background
On June 5, 2019, the Mayor and City Council approved Resolution No. 2019-81 establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the "CFD No. 2019-1" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.

Discussion
On July 17, 2019, the Mayor and City Council adopted Resolution No. 2019-178, establishing CFD No. 2019-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”). CFD No. 2019-1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the City.

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Development projects are subject to conditions of approval that require projects to form/annex a maintenance district. These districts apply an annual fee or special tax upon properties within the District which provide the revenue to offset the cost of maintenance of the public improvements necessary to serve the development. The Developer has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Developer has submitted a "Consent and Waiver" form, which is on file in the City Clerk's office that authorizes the City to (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing.

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 streetlights within public rights-of-way and traffic signals; and

2. Maintenance of streets, including pavement management; and

3. Maintenance and operation of water quality improvements including storm drainage and flood protection facilities; and

4. 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 development includes approximately 8.90 gross acres of an industrial property. The property is located south of Palm Avenue and Hallmark Parkway intersection off of Historic Route 66. At build out, this development will include a Truck Terminal Facility as a new Tax Zone No. 37 within CFD No. 2019-1, as shown in the boundary map and included in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2019-1, a Resolution of Intention to annex property must be approved to identify the facilities to be maintained and establish the maximum special tax for this Tax Zone. The Resolution of Intention shall also set the date and time for the public hearing.

The rate and method of apportionment of the special tax for this Tax Zone, (Tax Zone No. 37), is included as Exhibit “C” to the Resolution of Intention. The maximum annual special tax for this development has been calculated to be $1,261 per acre for FY 2023/24. Special Tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. Exhibit “H”, attached to the staff report is a maintenance exhibit to illustrate which services are being maintained by the CFD.

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 Packet Pg. 107
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). • 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 Resolution of Intention, the Public Hearing would be scheduled for August 2, 2023.
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. Upon full completion of the development, it is estimated that there will be an annual collection of special tax revenues of approximately $1,261 from Special Tax A to be used to pay for maintenance costs.

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 San Bernardino, California, adopt Resolution No. 2023-086 of the Mayor and City Council of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to Packet Pg. 108
be proposed (Annexation No. 36) and authorizing the levy of a special taxes therein.

Attachments
Attachment 1 – Resolution of Intention No. 2023-086
Attachment 2 – Exhibit A - Description of Territory
Attachment 3 – Exhibit B - Description of Services
Attachment 4 – Exhibit C - Rate and Method of Apportionment Attachment 5 – Exhibit D - Boundary Maps
Attachment 6 – Exhibit E - Signed Petition & Waiver
Attachment 7 – Exhibit F - Notice of Public Hearing
Attachment 8 – Exhibit G - Special Election Ballot
Attachment 9 – Exhibit H - Maintenance Exhibit
Attachment 10 – Project Map
Ward:

Sixth 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 “MelloRoos 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 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.

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Resolution No. 2023-086
Resolution No. 2023-086
June 21, 2023

RESOLUTION NO. 2023-086

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

DECLARING ITS INTENTION TO ANNEX TERRITORY
INTO COMMUNITY FACILITIES DISTRICT NO. 2019-1
(MAINTENANCE SERVICES) OF THE CITY OF SAN

BERNARDINO, ADOPTING A MAP OF THE AREA TO BE
PROPOSED (ANNEXATION NO. 36) AND AUTHORIZING

THE LEVY OF A SPECIAL TAXES THEREIN
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on June 5, 2019, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”) approved Resolution No. 2019-081 establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California, defined the "CFD No. 2019-1", for the purpose 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; and
WHEREAS, the Mayor and City Council has received a written instrument from the landowner in the CFD No. 2019-1 to initiate and conduct proceedings pursuant to the Act, to annex territory to CFD No. 2019-1 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; and
WHEREAS, the Mayor and City Council has been advised that certain property owners have requested that the area shown in Exhibit D be annexed territory to the boundaries of CFD No. 2019-1, that a rate and method of apportionment of the special tax to be levied therein be established.

BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:

SECTION 1. Intent to Annex. The Mayor and City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit A attached hereto. The Mayor and City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District.

SECTION 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2019-1 (Maintenance Services)”.

SECTION 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed are included within the boundaries within which property may annex to CFD No. 2019-1 and are more particularly described and shown on that certain map Packet Pg. 110
Resolution No. 2023-086
Resolution No. 2023-086
June 21, 2023

entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California,” as recorded on June 6, 2019 in Book 88 of Maps of Assessment and Community Facilities District, Page 33, and as Instrument No. 2019-0185395 in the official records of the County of San Bernardino. The territory proposed to be annexed to the CFD No. 2019-1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 36, Community Facilities District No. 2019-1 (Maintenance Services), City of San Bernardino, County of San Bernardino, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D.

SECTION 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2019-1 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “incidental expenses,” which include costs associated of CFD No. 2019-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2019-1. The Services authorized to be financed by CFD No. 2019-1 are in addition to those currently provided in the territory of CFD No. 2019-1 and do not supplant services already available within that territory.

SECTION 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually within CFD No. 2019-1. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit C.

SECTION 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the Mayor and City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2019-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of San Bernardino no later than 15 days prior to the date of the hearing specified in Section 7 hereof.

SECTION 7. Public Hearing. The Mayor and City Council hereby fixes 7:00 p.m., or as soon thereafter as practicable, on Wednesday, August 2, 2023, at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, as the time and place when and where the Mayor and City Council will conduct a public hearing on the proposed annexation of the said territory to the CFD No. 2019-1.

SECTION 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2019-

1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act.

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Resolution No. 2023-086
June 21, 2023

SECTION 9. Mailing Ballots. In anticipation of its action on Wednesday August 2, 2023 to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the Mayor and City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2019-1 a ballot in substantially the form set forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.

SECTION 10. That 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 11. 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 12. 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. 2023-086
Resolution No. 2023-086
June 21, 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. 2023-086, adopted at a regular meeting held on the 21st day of June 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. 36 is currently comprised of two (2) parcels, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Numbers (APNs).

APN Owner Name
0266-041-22 DP Industrial Parkway LLC
0266-041-40 DP Industrial Parkway LLC
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EXHIBIT B

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 C
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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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. 119
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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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City of San Bernardino 6
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)
Packet Pg. 121
City of San Bernardino 7
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. 122
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. 123
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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City of San Bernardino 10
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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City of San Bernardino 11
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 2023-24. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2019-1.

TAX ZONE 37
LM 2022-007
Item Description Estimated Cost
1 Lighting $1,841
2 Streets $6,598
3 Drainage $335
4 Reserves $1,316
5 Admin $1,127
Total $11,217
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 37
FY 2023-24 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 $1,261 $0
TAX ZONE 37
FY 2023-24 MAXIMUM SPECIAL TAX RATES

UNDEVELOPED PROPERTY
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Acre $1,261 $0
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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 33 34 PM 20392 2023-24 $2,785 / Acre $158 / Acre GWS#7 Development, LLC 34 35 CUP 21-16 2023-24 $533 / Acre $193 / Acre MLG SB Land LLC & Grandfather’s Land Holdings LLC
35 36 CUP 22-03 2023-24 $6,648 / Acre $0 / Acre SimonCRE JC Saguaro III, LLC 36 37 LM 2022-007 2023-24 $1,261 / Acre $0 / Acre DP Industrial Parkway LLC Packet Pg. 127
City of San Bernardino 13
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.

Packet Pg. 128
City of San Bernardino 14
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 15
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. 130

EXHIBIT D
SHEET 1 OF 1 SHEET
ANNEXATION MAP NO. 36
COMMUNITY FACILITIES DISTRICT NO. 2019-1
(MAINTENANCE SERVICES)

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA

THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE
ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1
(MAINTENANCE SERVICES), OF THE CITY OF SAN

BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF
CALIFORNIA.

SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE

THIS MAP WAS FILED UNDER DOCUMENT
_____________, THIS _______ DAY OF _______, 20 ____,
AT _____ M. IN BOOK _____ OF ______________ AT PAGE ____,

AT THE REQUEST OF CITY OF SAN BERNARDINO IN THE AMOUNT
OF $_____________.

NUMBER

THE BOUNDARIES OF WHICH COMMUNITY FACILITIES

DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP

THEREOF WHICH WAS PREVIOUSLY RECORDED ON
JUNE 6, 2019 IN BOOK 88 OF MAPS OF ASSESSMENT
AND COMMUNITY FACILITIES DISTRICT AT PAGE 32 AND
AS INSTRUMENT NO. 2019-0185323 IN THE OFFICE OF THE

COUNTY RECORDER OF THE COUNTY OF SAN BERNARDINO,
STATE OF CALIFORNIA.

CHRIS WILHITE

ASSESSOR-RECORDER

SAN BERNARDINO COUNTY
§¦215
BY:________________________________

DEPUTY RECORDER

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2019-1
(MAINTENANCE SERVICES) FOR THE CITY OF SAN BERNARDINO,

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WAS

APPROVED BY THE CITY COUNCIL OF THE CITY OF SAN

BERNARDINO AT
ON THE ____ DAY OF ____________________,

A REGULAR MEETING THEREOF, HELD
20 ____.

BY ITS RESOLUTION NO. ____________________
_________________________________________
CITY CLERK, CITY OF SAN BERNARDINO 0266-041-40
FILED IN THE OFFICE OF THE CITY CLERK THIS _____ DAY OF ________, 20 ____. 37
_________________________________________
CITY CLERK, CITY OF SAN BERNARDINO ¤66
0266-041-22
_ CFD 2019-1
TAX ZONE 37
þ18 þ330
¤66
þ þ 210 þ 259 0
¤
¤ 66
66 LEGEND §¦215

ANNEXATION AREA BOUNDARY
þ PARCEL LINE
§¦10 38

CITY BOUNDARY
-

THIS ANNEXATION MAP CORRECTY SHOWS THE LOT OR

PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF
THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS

CONCERNING THE LINES AND DIMENSIONS OF LOTS OR

PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR
FISCAL YEAR 2022-23.

XXXX-XXX-XX
37 ASSESSOR PARCEL NUMBER (APN)

TAX ZONE
Packet Pg. 131
Packet Pg. 132

PETITION TO THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO

REQUESTING ANNEXING TERRITORY INTO A COMMUNITY FACILITIES DISTRICT NO. 2019·1 OF THE CITY OF SAN BERNARDINO AND A WAIVER WITH RESPECTS

TO CERTAIN PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE LEVY OF SPECIAL TAXES

THEREON TO PAY THE COSTS OF SERVICES TO BE PROVIDED BY THE

COMMUNITY FACILITIES DISTRICT

1. The undersigned requests that the City Council of the City of San Bernardino, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act") (Government Code Section 53311 et seq.), to annex territory into Community Facilities District No. 2019-1 {Maintenance Services) (the acommunity Facilities Districf) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the community facilities district.

2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance required to keep the landscape lighting, streetlighting, traffic signals, flood control facilities, ground cover, shrubs, plants and trees, irrigation systems, graffiti removal, sidewalks and masonry walls, fencing entry monuments, tot lot equipment and associated appurtenant facilities within the district in a healthy, vigorous and satisfactory working condition.

3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District as described in Exhibit A hereto and as shown on the map Exhibit B hereto.

4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed community facilities district. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the creation of the Community Facilities District or at the next available meeting.

5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections {except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code.

6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annexing territory into Community Facilities District No. 2019-1 of the portion of the incorporated area of the Exhibit E
Packet Pg. 133
Packet Pg. 134

EXHIBIT F

NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 36)
NOTICE IS HEREBY GIVEN that the City Council of the City of San Bernardino on June 21, 2023 adopted its Resolution No. 2023-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2019-1 is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Wednesday, August 2, 2023 at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2019-1. At the hearing, the testimony of all interest 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 August 2, 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.

DATED: ____________, 2023 _________________________________________ City Clerk of the City of San Bernardino
PUB: _______________, 2023
Packet Pg. 135

EXHIBIT G

CITY OF SAN BERNARDINO

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 36
(August 2, 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
DP Industrial Parkway LLC 8.90 9
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 July 19, 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 August 2, 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 August 2, 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):

DP Industrial Parkway LLC
Attn: Benjamin Horning
100 Wilshire Blvd., Suite 250
Santa Monica, CA 90401
0266-041-22 and 0266-041-40

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 June 21, 2023 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 36 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__.

Benjamin Horning
Manager
Signature
Print Name
Title
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CFD NO. 2019-1 (MAINTENANCE SERVICES)
ANNEXATION NO. 36

PROJECT MAP
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager;
Mary Alvarez-Gomez, Grants Division Manager
Department: City Manager’s Office
Subject: Professional Service Agreement Award –
Consultation Services for Broadband Strategic Master
Plan (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve a Professional Service Agreement (PSA) with Michael Baker International in the amount of $414,810, to provide consultation services for Broadband Master Plan for the period of June 22, 2023 through October 31, 2024; and

2. Authorize the City Manager, or designee, to take necessary steps to implement and administer the agreement including executing an agreement, amendments, and signing subsequent, necessary, and related documents, to implement the agreement.

Background
On January 18, 2023, the Mayor and City Council of the City of San Bernardino (City) adopted Resolution No. 2023-012, accepting the Local Agency Technical Assistance (LATA) Grant award in the amount of $425,256 from the California Public Utilities Commission (CPUC) for a Broadband Strategic Master Plan (“Plan”). The grant funds allow for the procurement of consultation services for the development of a Plan.

Discussion
The City of San Bernardino recognizes the need for and importance of high-speed broadband infrastructure to advance the City’s goals for economic growth, education, health, and safety and to close the connectivity gaps to unserved and underserved communities that currently exist within the City. To this end, the City applied for and Packet Pg. 140
received grant funding to develop a comprehensive assessment for baseline conditions and an actionable Broadband Strategic Master Plan.

On February 12, 2023, staff issued a Request for Qualifications (RFQ F-23-31) soliciting submissions from qualified consultant firms to develop a Broadband Strategic Master Plan. The RFQ closed on March 14, 2023, with submissions from 5 consulting firms, as follows:

Consulting Firm Location Base Price
EntryPoint Networks, Inc. Salt Lake City, Utah $220,000 Lit Communities Broadband Inc. Nationwide Locations $325,200 Michael Baker International Nationwide Locations –
Local Office: Temecula, CA
$421,670
mPower Consulting LLC Sheridan, Wyoming $1,256,760
Telcon Services LLC Eagle, Idaho $161,200
All 5 qualification submissions were evaluated and ranked based on the competitive selection process, in which the evaluation of RFQ’s were not limited to price alone.

Technical merit and evaluation of how well the Firm understood the Project and the following:

1. Qualification, experience and technical competence of the Firm;

2. Qualification, experience and technical competence of key Firm personnel who will be responsible for overseeing and performing the work requested in the RFQ;

3. Familiarity with the type of issues, sensitivities, and challenges associated with the engagement;

4. Demonstrated ability to perform tasks timely and efficiently and to immediately undertake the Project;

5. Quality of written work; and

6. Exceptions, if any, taken to the RFQ including, without limitation, the Agreement.

7. Cost of requested Services and willingness to work with City to minimize costs.

The top three ranked firms moved forward to interviews for best and final offers (BAFO). Firms presented approaches to deliver the project successfully, community engagement strategies, familiarity with the City of San Bernardino (history, demographics, and goals), and final costs. Michael Baker International ranked top scores in presentation, readiness and ability to forecast any challenges and course corrections to successfully complete the project scope, pricing, and location. Major tasks of the project scope include the following:
• Needs assessment
• Scoping and analysis for City-wide Broadband
• Cost Analysis and Phasing Options
• Financing Options Portfolio
• Private Equity Partnership Opportunities
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• Broadband Strategic Paster Plan and Implementation Consulting • Community Engagement Strategy and Plan (woven in every phase of the project timeline
Staff recommends Michael Baker International to Council for approval to award a PSA for a Broadband Strategic Master Plan in the amount of $414,810 for the period of June 22, 2023 through October 31, 2024.
2021-2025 Strategic Targets and Goals
This request aligns with Key Target and Goal No. 3b: Improved Quality of Life Develop a customer service initiative. Increasing broadband access in the City will improve city services to all residents and businesses.

Fiscal Impact
The fiscal impact to the City is $414,810, which will be funded by the Local Agency Technical Assistance (LATA) Grant.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve a Professional Service Agreement (PSA) with Michael Baker International in the amount of $414,810, to provide consultation services for Broadband Master Plan for the period of June 22, 2023 through October 31, 2024; and

2. Authorize the City Manager, or designee, to take necessary steps to implement and administer the agreement including executing an agreement, amendments, and signing subsequent, necessary, and related documents to implement the agreement.

Attachments
Attachment 1 – PSA with Michael Baker International
Attachment 2 – Proposal from Michael Baker
Attachment 3 – Evaluation Matrix
Ward:

All Wards
Synopsis of Previous Council Actions:

January 18, 2023 Mayor and City Council adopted Resolution No. 2023-012, accepting a grant award for the development of a Broadband Strategic Master Plan.

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1 PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF SAN BERNARDINO
AND MICHAEL BAKER INTERNATIONAL, INC.

This Agreement is made and entered into as of June 22, 2023 by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, CA 92401 (“City”), and Michael Baker International, Inc., a CORPORATION with its principal place of business at 40810 County Center Drive, Suite 200, Temecula, CA 92591 (hereinafter referred to as “Consultant”). City and Consultant are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.”

RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:

Broadband Strategic Master Plan Consultant Services (hereinafter referred to as “the Project”).

B. Consultant is duly licensed and has the necessary qualifications to provide such services.

C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

AGREEMENT

1. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference.

2. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.”

3. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement.

4. Compensation.
a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “A.” Packet Pg. 143
2 b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $414,810. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses.

Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction.

City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices.

5. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.
a. Adjustments. No retroactive price adjustments will be considered.

Additionally, no price increases will be permitted during the first year of this Agreement, unless agreed to by City and Consultant in writing.

6. Term. This Agreement shall commence on the Effective Date and continue through the completion of services as set forth in Exhibit “A,” unless the Agreement is previously terminated as provided for herein (“Term”).

7. Maintenance of Records; Audits.
a. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date.
b. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.

8. Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term.

9. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable Packet Pg. 144
3 control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Consultant’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety. b. Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay.
c. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

10. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements.
b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies.
c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.

11. Standard of Care. Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. Consultant’s performance shall conform in all material respects to the requirements of the Scope of Work.

12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of interest with the City.

13. City Business Certificate. Consultant shall, prior to execution of this Packet Pg. 145
4 Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City’s Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business.

14. Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.

15. Independent Consultant. Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. Any personnel performing the work governed by this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Agreement and as required by law.

Consultant shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance.

16. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Additional Insured
The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Consultant’s and its subconsultants’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. b. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City.
(ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:

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5 Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX)
exclusion deleted
(7) Contractual Liability with respect to this Contract (8) Broad Form Property Damage
(9) Independent Consultants Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(v) The policy shall give City, its elected and appointed officials, officers, employees, agents, and City-designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured.
c. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
(iii) The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status.

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6 (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. d. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.
(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. e. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. f. Privacy/Network Security (Cyber)
At all times during the performance of the work under this Agreement, the Consultant shall maintain privacy/network security insurance for: (1) privacy breaches, (2) system breaches, (3) denial or loss of service, and the (4) introduction, implantation or spread of malicious software code, in a form and with insurance companies acceptable to the City.
g. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:

Combined Single Limit
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7 Commercial General Liability $2,000,000 per occurrence/$4,000,000 aggregate for bodily injury, personal
injury, and property damage
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage
Employer’s Liability $1,000,000 per occurrence
Professional Liability $1,000,000 per claim and aggregate (errors and omissions)
Cyber Liability $1,000,000 per occurrence and
aggregate
(ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement.
h. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. i. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance Packet Pg. 149
8 and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. j. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or
companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
k. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including, but not limited to, the provisions concerning indemnification. (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is Packet Pg. 150
9 canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. l. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.

17. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project, or this Agreement, including without limitation the payment of all damages, expert witness fees, attorneys’ fees and other related costs and expenses. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, the City Council, members of the City Council, its employees, or authorized volunteers. Consultant’s indemnification obligation shall survive the expiration or earlier termination of this Agreement. b. If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to the extent which the Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant in the performance of the services or this Agreement, and, upon Consultant obtaining a final adjudication by a Packet Pg. 151
10 court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

18. California Labor Code Requirements. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).

If the Services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements.

19. Verification of Employment Eligibility. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.

20. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California.

21. Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days’ written notice to Consultant.

In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Packet Pg. 152
11 Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.

22. Attorneys’ Fees. In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney’s Office in enforcing this Agreement on behalf of the City shall be considered as “attorneys’ fees” for the purposes of this Agreement.

23. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant’s professional services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction.

24. Prohibited Employment. Consultant shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect.

25. Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.

26. Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.

27. Organization. Consultant shall assign Christopher Taylor as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.

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12 28. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above.

29. Notice. Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the following addresses and shall be effective upon receipt thereof:

CITY:

City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: Charles E. McNeely, Interim City
Manager
With Copy To:

City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: City Attorney
CONSULTANT:

Michael Baker International
40810 County Center Drive, Suite 200,
Temecula, CA 92591
Attention: Peter Minegar, Vice President/
Office Executive

30. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.

31. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

32. Entire Agreement. This Agreement, including Exhibit “A,” represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises, or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement.

33. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect.

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13 34. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.

35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance.

No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

36. Time of Essence. Time is of the essence for each and every provision of this Agreement.

37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.

38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement.

39. City’s Right to Employ Other Consultants. City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.

40. Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

41. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single Agreement.

42. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Packet Pg. 155
14 Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement.

43. Electronic Signature. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature.

44. Disciplinary Actions in Phases for Non-Performance. Failure for Consultant to perform its obligations under this Agreement or comply with the Performance Indicators may result in disciplinary action as follows:
(i) Informal Warning (Written or Verbal). Consultant is given a warning in regards to non-performance. If a verbal warning is issued, it will be confirmed with an electronic correspondence to the Consultant.
(ii) Formal Written Warning. A formal written warning is issued to Consultant pursuant to Section 29 of this Agreement. Consultant must respond within 5 to 10 days of receipt of the formal warning. Upon response from the Consultant, Consultant shall be provided a reasonable time to make corrections to their performance.

This time period
(iii) Formal Penalty Issued. A penalty of 15% of the Consultant’s current invoice amount or annual contract amount is deducted for non-performance after previous warnings have been issued.
(iv) Termination of Contract. If the performance has not been corrected after all warnings and previous penalties have been exhausted, City may terminate the contract pursuant to Section 21 of this Agreement. [SIGNATURES ON FOLLOWING PAGE]
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15 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF SAN BERNARDINO

AND MICHAEL BAKER INTERNATIONAL
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF SAN BERNARDINO
APPROVED BY:

Charles E. McNeely
City Manager
ATTESTED BY:

Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

MICHAEL BAKER INTERNATIONAL,
INC.

Signature
Peter Minegar
Name
Vice President/Office Executive
Title
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16 EXHIBIT A
Scope of Services/Pricing Schedule
June 22, 2023 – October 31, 2024
Scope of Services
The consultant will provide a task-based scope of service to prepare and develop a feasibility assessment of deploying a city-wide fiber optic infrastructure network. The consultant will work with city leadership and staff, resource providers, and local area businesses and residents to develop a comprehensive assessment of baseline conditions and an actionable Broadband Strategic Master Plan. Additionally, the Consultant will work with city staff to develop a Community Engagement Plan to engage the public throughout the process as appropriate and necessary but also to provide legacy education and community engagement about this project and as the city implements this plan’s recommended actions.

Task 1: Needs Assessment
The objective of this task is obtaining information about the city’s existing broadband infrastructure, the existing legal structure for which the city would own and operate a comprehensive broadband infrastructure network and identify any risks involved with that ownership and operation of said network, and identifying existing financial concerns and / or options, especially as it relates to financing the infrastructure through bonds, fees, and available grants.

The consultant will gather this information from city staff through interviews and meetings and will educate the city leaders and staff about the baseline conditions and will inquire about other potential risks or issues that may arise if the city approves the establishment of a broadband infrastructure network.

Some of the items the Consultant will inquire about and review with city leaders and staff include but is not limited to the following:
• The legal authority for the city to establish and operate a broadband infrastructure network.
• Understand level of knowledge throughout city leaders and staff about all available media options (Fiber optic, wireless, coaxial cable, DSL).

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17 • Understand existing infrastructure, where vulnerabilities and strengths exist; above-ground, underground infrastructure; reliability, shared resources, or shared infrastructure that can be utilized, etc.
• Educate city leaders and staff about the various media options and major pros and cons about each for the city.
• Identify all possible project partners, including engineering, construction, Middle Mile, and resource providers (IRPs).
• Understand and identify risks associated with above-ground, underground, or a hybrid (above-ground, underground, and aerial).

Deliverables Task 1:
• Understand legal authority / environment and provide recommendation on legal structure.
• Provide comparison of all media options and major pros and cons of all of them. • Provide a list of vulnerabilities and strengths of existing infrastructure and any areas where cost-sharing can occur with other sources.
• Identify risks for owning and operating a public broadband infrastructure network. • A needs assessment document identifying the city’s existing strengths and weaknesses including infrastructure, all risks including financial risks, legal authority needs, if any, all potential project partners including engineering, construction, Middle Mile and other resource providers (IRPs).

Task 2: Project Scoping and Analysis for City-wide Broadband The objective of this task is to collect all relevant information about the city potentially owning and operating a public broadband infrastructure network and analyzing the data to determine options and help shape the overall Broadband Strategic Master Plan for the City of San Bernardino. The Consultant will use the data collected in the previous task and through the use of additional means, i.e. meetings and interviews with city leaders and staff, resource providers, national and state statistics about municipally-owned broadband infrastructure networks, and surveys of the community to analyze all information and determine a most feasible and workable set of recommendations for all stakeholders to support the outcome of this process, the implementation of the most suitable option. The Consultant will collaborate with the city to determine most appropriate sample size, but approximately 100,000 premises should be considered in this project.

The data and analysis the consultant should perform will include but not necessarily be limited to the following:
• A market analysis to identify services, service/resource providers, current average prices and relative download and upload speeds from the providers in the city of San Bernardino today.
• GIS Mapping as necessary and appropriate to understand utilities infrastructure— above-ground, underground, and aerial.
• Provide comparison of available business models existing today across the nation and viable, successful municipal broadband models.

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18 • Provide a comparison of inside-plant (in-plant) and outside-plant (out-plant) equipment identifying strengths and weaknesses for an optical and ethernet network design.
• Conduct and provide key highlights of a comprehensive risk analysis for all project phases.
• Analyze and recommend to the city about most beneficial infrastructure—installing above-ground, aerial, underground, or a hybrid of both infrastructures. • Provide a comparison of financial options utilizing a variety of financing including but not limited to sales tax revenues, economic incentives, bonds, discretionary funding, and fees.
• Conduct community survey to understand knowledge of the public and their issues relative to internet connectivity, costs they incur for the service, and inquire about what the community would be willing to pay monthly for reliable, high-speeds internet.

Deliverables Task 2:
• Comparison document identifying existing business models across the nation and current, successful municipal models highlighting optimal model for the City of San Bernardino.
• GIS Mapping as necessary and appropriate
• Comprehensive risk analysis document for all project phases. • Identifying city’s existing in-plant and out-plant equipment strengths and weaknesses and how that equipment will be compatible with recommendation of installing aerial, above-ground, underground, or hybrid infrastructure for broadband network.
• Meetings and interviews (number to be determined by city and consultant) with city leaders and staff.
• Interviews and meetings (number to be determined by city and consultant) with resource providers.
• Analysis of community survey provided to city staff.

Task 3: Cost Analysis and Phasing Options
Based on the outcomes of the previous tasks, the Consultant in collaboration with the City will provide itemized estimates of the infrastructure costs relative to determining if the city should upgrade and purchase infrastructure for its existing inside- and outside plant equipment, or if the city should just construct a completely new infrastructure network.

The Consultant will provide a breakdown of all network materials costs, itemized projected costs for network installation, demolition and disposal costs, and create a forecasted cost structure for the city relative to the costs associated with this project. Additionally, the Consultant will provide a phasing structure for both scenarios—upgrade and purchase new equipment for existing infrastructure and construction of entire new infrastructure Packet Pg. 160
19 network to understand time and all potential costs associated with this project. These phasing options should start from first steps in implementing selected option to testing and going Live with the Broadband network.

The Consultant will also include a breakdown of costs if all variables are managed and operated in-house. Finally, the Consultant will provide a valid comparable for estimates related to costs of engineering and construction, understanding final costs will be firmed up when the city issues its request for proposals (RFPs) for those services.

Deliverables Task 3
• Cost analysis and breakdown of costs for upgrading existing infrastructure. • Cost analysis and breakdown of costs for entire new infrastructure network. • Phasing options for both scenarios.

Task 4: Financing Options Portfolio
The objective of this task is to provide in a clear, concise format a portfolio of the best three financing options for the city to upgrade and / or construct, own, and operate a public broadband infrastructure network. The portfolio will detail the three best options based on the data collected including lessons learned from the analysis of the nation’s most successful municipally owned and operated broadband infrastructures. The Consultant will consider the nation’s data and utilize relevant city data to establish initial pricing from multiple internet providers and Middle Mile carriers. The Consultant will then work with the city to establish a monthly network operations fee to be assessed to various consumers including residents and businesses. Several factors including the type of user, type of use, hours of use, download and upload speed requirements, etc. will be considered in establishing the monthly fee.

Deliverables Task 4:
• A complete, concise Financing Options Portfolio with all components described above.

Task 5: Private Equity Partnership Opportunities
In this task, the Consultant will collaborate with the City to understand the potential for private equity partnership opportunities for this project. Reviewing all the information collected and analyzed in previous tasks, the City and Consultant, together will determine if there are other agencies or resource providers to innovatively cost share or partner for the benefit of all parties that may be involved in this project. A thorough evaluation including strengths, weaknesses, and any potential risks involved with partnering will occur to determine viability of potential partnerships. If opportunities exist with private firms or other resource providers, then the Consultant will modify the cost analysis and phasing options and financing options portfolio to include the investment of the likely partnerships.

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20 Deliverables Task 5:
• Partnership opportunities identified.
• Modifications of cost analysis and financing options portfolio including partnership, as necessary.

Task 6: Broadband Strategic Master Plan and Implementation Consulting The Consultant will develop a draft Broadband Strategic Master Plan for the City of San Bernardino in this task. The Consultant will consider and utilize all the data and information collected in the project scoping and analysis tasks and develop and prepare a concise and succinct draft Broadband Strategic Master Plan for the city to review and provide feedback.

Based on feedback from city leaders and staff throughout the process, the Consultant will prepare the Draft Strategic Master Plan including describing the approach taken to arrive at the best possible option for the city, describing the methodology used to collect data and analyze, and apply the most relevant information to the current scenario in the city.

The Draft Strategic Master Plan will also detail and describe the three best financing options for the city to consider when discussing and weighing all the information to determine whether to construct and operate a city-wide broadband infrastructure network.

The Draft Plan will also summarize the key risks involved with the public broadband infrastructure network, and how those risks can be minimized or eliminated altogether.

The Draft Strategic Master Plan will be delivered to the city in a format of its choosing and a comment period will be determined by the city and consultant, collaboratively. Upon the completion of the comment period, the Consultant will track all comments received from city leaders and staff and address the comments in the Plan. The Consultant will provide that tracking and addressing of the comments received to the internal project manager the city has designated to assure the city staff and leaders agree with all revisions of the Plan. After the approval of all the Plan’s revisions from city leaders and staff, the Consultant will prepare a Public Draft to be disseminated to the public for a period of time set by the city’s project manager in collaboration with the consultant’s project manager.

Upon completion of community review period, the Consultant will combine, track, and address all public comments to be provided to the city’s project manager for review. If edits are necessary, then city’s project manager will provide the edits to the Consultant in a timely manner to facilitate and assure the Consultant has ample time to make corrections and edits to the Plan.

Prior to and during the community review period, the Consultant will develop a set of recommendations, or actions, to be implemented upon approval of the Master Plan.

These recommendations will be known as the Implementation Plan; this is discussed in Task 5.

In addition, and prior to and during the preparation of the public draft document, the Consultant will develop and prepare a set of recommendations that will be known as the Packet Pg. 162
21 Implementation Plan. This Implementation plan will identify actions that each stakeholder is responsible for, the action description, an approximate timeframe that the action must be executed, (i.e. Year 1, Year 2, and so on…), and an approximate cost associated with the action. Additionally, the implementation plan will identify possible funding sources for the action and if cost sharing or economic incentives can occur or be applied.

The Consultant will use a format that is user-friendly and easy-to-read to display the implementation plan. Generally speaking, a table with multiple columns is widely acceptable in this scenario. The implementation plan will include all the components mentioned above, and will provide additional information and offer planning assistance for developing the RFPs, construction and long-term financing, and provide recommendations for establishing the optimal legal structure and relative cost structures for each component of the project, they are:
• Upgrades / construction,
• Operations and maintenance, and
• Resource (service) providers.

Once all information has been included in the user-friendly implementation plan, then the Consultant will distribute to city staff for review and edits. Upon completion of the implementation plan review, then the Consultant will prepare the final documents. After final documents are prepared and accepted by city staff, then the Consultant will present Final Broadband Strategic Master Plan and Implementation Plan to City Council and the Mayor in a regular-scheduled City Council meeting.

Deliverables Task 6:
• Draft Broadband Strategic Master Plan.
• Stakeholder comments tracked and addressed to be reviewed by city staff. • Prepare Public Draft Strategic Master Plan document.
• Prepare Draft Implementation Plan.
• Public comments tracked and addressed to be reviewed by city staff. • Develop and prepare Implementation Plan with all components aforementioned. • Legal and cost structures for construction, operations and maintenance, and resource/service providers.
• Final Broadband Strategic Master Plan and Implementation Consulting. • Presentation of Final Broadband Strategic Master Plan and Implementation to City Council for approval.

Task 7: Community Engagement Strategy and Plan
The vision for community engagement is a very open and thorough process that allows no single interest to dominate. It ensures all stakeholders of the broadband plan have access to timely information, convenient and meaningful options for participation, and easy access to draft documents. The City of San Bernardino believes a key aspect for the initial engagement for the Broadband Strategic Master Plan should be educational Packet Pg. 163
22 and clearly identifies the purpose of the Plan. This will facilitate essential feedback as the project moves forward.

Community engagement will be initiated through the development of a community engagement plan, which will include a methodology based on the Consultant’s experience and lessons learned in engaging the public on multi-stakeholder collaborations. The Consultant will describe their methodology and utilize a variety of tools to outreach and engage the community in the development of this plan. The methodology will outline the methods preferred for each type of stakeholder.

In order to be successful and useful, the Plan will be community-based, collaborative, and obtain support from a variety of stakeholders throughout the process. The Consultant will work with the City and its stakeholders to prepare a community engagement plan that maximizes opportunities for all impacted stakeholders to be involved in the process, to actively participate in solutions, and to provide feedback about this planning process and the final planning documents.

The Consultant should include multiple approaches for community engagement, including but not limited to reaching out to a diverse audience, i.e. interviews and meetings, multilingual website, dashboards providing project status updates, informational brochures and / or fact sheets, requesting input using various media platforms, i.e. city’s website, social media, etc., providing updates and announcements, and opportunities to provide input and feedback throughout the process and upon completion and implementation.

Deliverables Task 7
• Community Engagement Plan
• Website updates / announcements / dashboard summaries • Informational brochures / fact sheets
• Surveys (From Task 2)
• Interviews / meetings with appropriate stakeholders from City and Businesses, etc. (from Task 2) (number of meetings to be determined by city and consultant) • A log of all meetings conducted with the city and other stakeholder groups, i.e. local businesses, chamber of commerce, and the public, etc. • Deployment of a variety of approaches for community engagement • A log of all community comments and how the Consultant / City addressed each comment (from Task 3)
Pricing Schedule
The pricing schedule for each task and associated deliverables is detailed in the table below. Budget adjustment between tasks is allowable provided services do not exceed the total amount of $414,810.

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23 Michael Baker International Inc
Scope of Service Total Cost
Task 1: Needs Assessment $ 50,410
Task 2: Project Scoping and Analysis for City-wide Broadband $ 53,970 Task 3: Cost Analysis and Phasing Options $ 100,610
Task 4: Financing Options Portfolio $ 23,600
Task 5 Private Equity Partnership Opportunities $ 15,920 Task 6: Broadband Strategic Master Plan and Implementation Consulting $ 44,790 Task 7: Community Engagement Strategy and Plan $ 125,510 Total Amount: $ 414,810
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MICHAEL BAKER INTERNATIONAL ▬ MBAKERINTL.COM
City of San Bernardino
290 North D Street
San Bernardino, California 92401
Re: Broadband Strategic Master Plan
Dear Selection Committee:

Now more than ever, the importance of having affordable access to broadband and related digital devices is
critical to participate in modern society. As the City of San Bernardino (the City) prepares to further close the digital divide, Michael Baker International, Inc. (Michael Baker) is excited to submit our qualifications to provide professional broadband consultation services in response to your Request for Qualifications (RFQ).

Michael Baker is ready to support the City in identifying strategies for equitable broadband access citywide and
to provide the City with a Broadband Strategic Master
Plan. Our team is committed to assisting your team in
working toward achieving your goals and commends the
City leaders in undertaking this vital initiative. Michael Baker understands the City’s intent to draw on existing resources and develop and maintain a city-wide digital
ecosystem. These improvements will allow for effective
communication in many areas of San Bernardino,
including education, community, healthcare, and
business. This, in turn, will enhance the City’s economic vitality and stability and enable a high standard of living for all citizens. Michael Baker recognizes this valuable opportunity to support the City in its strategic plan to improve options and affordability of high-speed internet.

We welcome your review of our proposal and are
committed to supporting the City of San Bernardino.

Should you have any questions or require further
information, please contact me by phone at (951) 506-
3523 or [email protected] or proposed
Project Manager, Chris Taylor at (813) 466-6039 or
[email protected].

Respectfully submitted,
MICHAEL BAKER INTERNATIONAL, INC.

Peter Minegar, AICP
Vice President/Office Executive
MARCH 14, 2023
Evaluation Criteria Table of Contents

1. Qualification, experience and technical
competence of the Firm Pgs. 2-3, 5-8

2. Qualification, experience and technical
competence of key Firm personnel who
will be responsible for overseeing and
performing the work requested in the RFQ
Pgs. 4-5

3. Familiarity with the type of issues,
sensitivities, and challenges associated with
the engagement
Separate File - See
BiddersResponse.pdf

4. Demonstrated ability to perform tasks timely
and efficiently and to immediately undertake
the Project
Separate File - See
BiddersResponse.pdf

5. Quality of written work n/a

6. Exceptions, if any, taken to the RFQ including,
without limitation, the Agreement Pg. 8

7. Cost of requested Services and willingness
to work with City to minimize costs
Separate File - See
Fee Schedule.pdf

FULL-SERVICE FIRM AND

QUALIFICATIONS
▬ Knowledgeable at every step of the way, from
planning to engineering to implementation
▬ Informed and feasible solutions that are ready to
implement
▬ Multidisciplinary approach to provide services and
products tailored to your goals

NATIONWIDE BROADBAND EXPERTISE
▬ 20+ years of broadband experience
▬ No learning curve
▬ Successful past performance
▬ Deep expertise in many sizes of broadband
expansion programs, from FCC national mapping to
local planning and implementation projects

LOCAL PRESENCE & PERSPECTIVE
▬ California – Based
▬ 10+ years of experience providing services
to the City
▬ Understanding of local stakeholders
▬ Responsive and available team leadership
WHY MICHAEL BAKER?
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CITY OF SAN BERNARDINO ▬ BROADBAND STRATEGIC MASTER PLAN ▬ RFQ NO. F-23-31 ▬ PAGE 2

II) CONTENT OF SOQ
a. A brief statement of the Firm’s understanding of the scope of services Understanding of the Scope of Services
The City seeks to improve the state of broadband for its citizens, increase digital inclusion, and accelerate efforts to meet the City’s goals for improving quality of life and bolster economic growth and development. We understand
the City is seeking a qualified partner to collaborate on the development of a detailed, data-driven study through an assessment of digital and physical assets, stakeholder engagement, and community outreach. Once this
assessment is complete, the City will require a Broadband Strategic Master Plan that will serve as a roadmap for
broadband, focusing on access, affordability, and adoption of high-speed internet for all of the City’s residents and businesses.

Michael Baker is the right partner for the City to assess the current state of broadband, consult the City in
formulating a broadband strategy and roadmap, and
to develop practical and sustainable digital inclusion
strategies that will positively impact all areas. In the following sections, Michael Baker describes how it will achieve the tasks described in the City’s RFQ.

Please see our complete Bidder’s Response
document (attached separately)that addresses
each scope item, (Tasks 1-7).
b. Length of time the Firm has been in business.

Michael Baker was founded in 1940 and has been in
business for 83 Years.
c. Any other information the Firm feels is appropriate in response to this RFQ.

SPC Roadmap
Please review our SPC Connectivity Roadmap to review an example of a comprehensive broadband assessment related to the Master Plan outlined in this RFQ. SPC-ConnectivityRoadmap.pdf (spcregion.org) Our Work in Beaver County
Please visit www.connectbeavercounty.com to view
an example of how we engage the public to distribute
broadband information and updates.
d. The signature of the person called out in Item 1.c above who is authorized to make offers of this nature in the name of the Firm submitting the SOQ.
________________________________________________________ Peter Minegar, AICP

III) BACKGROUND AND EXPERIENCE
a. Describe the Firm’s background, business expertise/experiences, specialties, and capabilities to perform the scope of services described in this RFQ. Provide the name(s) of the key personnel who would be assigned to work on the Project and a summary of their education and experience to demonstrate their qualifications.

Firm Background
Michael Baker, a leading provider of engineering and
consulting services, including geospatial, design,
planning, architectural, environmental, construction and program management, has been solving the world’s most
complex challenges for more than 83 years with a legacy of expertise, experience, innovation, and integrity. As a full-service geospatial, planning, and engineering firm, Michael Baker’s Consulting and Technology Solutions
(CTS) team has more than 150 broadband consultants,
geospatial professionals, certified Geographic Information System (GIS) Professionals (GISP), licensed engineers,
scientists, licensed surveyors, and FAA-licensed Unmanned Aerial Systems (UAS) pilots who consistently deliver a full continuum of geospatial solutions through a diverse culture of innovation to better the communities where we live and work.

Michael Baker provides innovative and
sustainable broadband planning solutions
to public and private sector clients through
our detailed understanding of business
requirements, strategic planning, focused
production methodologies, quality control,
stakeholder and community engagement,
and collaborative partnerships.

I) CONTACT INFORMATION
a. Name of the Firm
Michael Baker International, Inc.
3536 Concours Street
Suite 100
Ontario, CA 91764
b. Firm contact information including e-mail
address
Christopher Taylor
813-466-6039
[email protected]
c. Name, title, contact information for person
authorized to contractually obligate the Firm.

Peter Minegar, AICP
Vice President/Office Executive
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Part of our trusted team for
this project, Quadra Partners,
LLC (Quadra), is a strategic
advisory firm that provides expertise in business, finance, public policy, and engineering related to communications technologies. Quadra will contribute with a thorough review of State and Federal laws, regulations, and state broadband policies. Recent Quadra projects in the state of California includes policy development to support California Public Utilities Commission (CPUC), to redesign the state’s multimillion dollar broadband grant program; CPUC recently extended work through 2025 with Quadra to include design of a last-mile grant program model for $2 billion in ARPA funds. Other noteworthy Quadra work includes an economic analysis to support the National Telecommunications &
Infrastructure Administration (NTIA’s) policy development associated with IIJA programs.

Broadband Qualifications
Our vision of the future is centered around connectivity, and broadband will play a critical role in the infrastructure of our connectedness as a community, country, and global economy. With the recent emphasis on and increased
federal and local funding to support the expansion of
broadband access across the nation, Michael Baker has
worked proactively to identify applicable funding sources and has planned with clients to assist them in effectively acquiring and utilizing these funds. We possess the
capacity, in-depth understanding, and the technical skills to provide all levels of broadband analysis, planning, and implementation, though we go further to assist clients
with the creation of detailed roadmaps and timelines to reference at all stages of the project, allowing clients to take advantage of all possible funding opportunities.

Michael Baker’s team of professionals not only possess
the in-depth knowledge and experience in broadband
mapping, planning, and program management necessary
to be a major participant in this nationwide broadband
improvement endeavor, we also differentiate ourselves
by offering a full range of Architectural & Engineering services. The focus of our mission as an established
engineering firm is to help clients understand their
community’s needs and assist in developing the practical strategies to implement and deploy high-speed internet.

Our team has successfully performed work on numerous
federal, state, regional, local and private telecom
broadband support contracts. Recent clients have included the Federal Communications Commission (FCC), the state
of New York, and Southwestern Pennsylvania Commission
(SPC).

Examples of Broadband
Program Planning and
Deployment
Michael Baker has
experience in broadband
program management,
strategic planning,
broadband plan
implementation, mapping,
data collection, and
verification, on projects
similar to the City’s project
specifications, with
experience in eight states
including Pennsylvania,
New York, California,
North Carolina, Kentucky,
Michigan, Arkansas, and
Louisiana. Specifically
in California, Michael Baker is conducting research and developing an implementation strategy for integrating
smart streetlight technologies for Western Riverside
Council of Governments. In each of these states, Michael Baker supported our clients in expanding broadband in
unserved and underserved areas, which included:
▬ Service area analysis of unserved and underserved
geography
▬ Program analysis of broadband provider submittals
▬ Wireless signal propagation analysis
▬ Broadband data quality review and analysis
▬ State broadband planning development
▬ Wireless broadband coverage analysis in rural regions ▬ Program development, and
▬ Outreach to communities, area economic development
districts, institutions, and public safety stakeholder groups Michael Baker California Projects
Our local Temecula, Ontario and Palm Desert offices have more than 130 professionals and are supported by our Technology practice, which includes over 200 resources. In the Southern California region, Michael Baker’s GIS Department employs 15 local GIS Specialists and five supporting database, web, technology, and information systems staff members. Michael Baker has been completing important planning and
infrastructure projects in the state of California since 1940 and has one of the largest GIS practices of any engineering firm in the country. Our teamwork philosophy enables us to seamlessly leverage and utilize the necessary Michael Baker resources on-demand.

Michael Baker
advocated for and
helped shape key
broadband policies
by submitting
public comments
to the National
Telecommunications
and Information
Administration’s
(NTIA) request for
comment to support
the development of
broadband programs
under the Bipartisan
Infrastructure Law.

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Organizational Chart
Key Personnel

PROJECT MANAGER
QA/QC MANAGER Chris Taylor*
David Price, GISP

QA/QC CA MANAGER
Steven Latino,PE, TE
BROADBAND PLANNING | Tasks 1, 2, 3, 6

PLANNING LEAD
Kirsten Compitello, AICP*

COST ESTIMATING
Tony Salas, PE

GIS LEAD
Sean Carlton

GIS SPECIALIST
Evan Rubin

BROADBAND SPECIALIST
John Crites, RCDD, PMP

BROADBAND PLANNER
Uriah Hunt

NETWORK DESIGNER
Renardo Bezati, PE*

REGULATORY / LEGAL POLICY
Jon Wikins◊
FINANCIAL PLANNING | Tasks 4, 5

GRANT AND FUNDING

SPECIALIST
Samantha Garfinkel

FINANCIAL ANALYST
Derek Wong, AICP
ENGAGEMENT | Task 7

COMMUNICATIONS LEAD
Emily Elliott, AICP*

GRAPHIC DESIGNER
Stephen Golebiewski

COMMUNICATIONS

SPECIALIST
Beth Crow

DEPUTY PROJECT MANAGER
Kheang (KT) Tang, PE*

S U B C O N S U LTA N T PA R T N E R F I RM S
◊ Quadra Partners, LLC * Key Personnel

PROJECT ADVISOR
Jeremy Jurick, NATIONAL BROADBAND SERVICES DIRECTOR
Chris Taylor | Project Manager
Mr. Taylor has been comprehensively involved in broadband builds including engineering design, construction
management, project management, and regional staff
support. Most recently, Mr. Taylor served as a Process
Improvement Manager responsible for multiple large FTTH builds (>$100M) in Arizona and Indiana that provided 1G symmetrical high-speed internet to the unserved and
underserved. In this role, he interfaced with FTTH project clients, vendors, construction contractor leadership,
accounting, and local project managers. His leadership
and management expertise helped identify and improve
crucial areas that benefited clients, budgets, and delivery within customer time frames. He is agile, detail-oriented and has demonstrated abilities in improving processes and producing quality technical documentation.

Education
B.S.E.E. Electrical Engineering, Auburn
University, 1994
Kheang (KT) Tang, PE | Deputy Project Manager
Mr. Tang has nearly a decade of combined experience in
civil and transportation engineering projects. Professional experiences include planning and design of intelligent
transportation systems (ITS), traffic design, traffic signal communication systems, roadway and highway design,
lighting, signing and striping, bikeway designs, and
traffic control plans. He is familiar with numerous cities’ standards and design plans. Mr. Tang has been involved
with numerous multimillion dollar projects, which include working with Caltrans District 6, 8, 11, and 12, Orange County Transportation Authority (OCTA), LA Metro, Los
Angeles Department of Transportation (LADOT), and
countless other local agencies. Mr. Tang carries the unique ability of managing multiple projects while satisfying client expectations. With rapidly advancing technology, Mr. Tang keeps abreast on the workings of Intelligent Transportation Systems.

Education
B.S.C.E. Civil Engineering/Traffic/
Transportation, California State
Polytechnic, 2012
Licenses/Certifications
Professional Engineer, CA, 88197
Kirsten Compitello, AICP | Planning Lead
Education
M.A., Cultural Anthropology, Columbia
University, 2012
B.Arch., Architecture, University of
Notre Dame, 2006
Licenses/Certifications
American Institute of Certified Planners, 33164
Kirsten Compitello serves as Michael Baker’s National
Broadband Digital Equity Director and is an experienced Planner with a focus on public engagement, planning
policy, community planning, and visual storytelling. She led the Southwest PA Connected Steering Committee and
Regional Stakeholder Engagement while also serving as
the primary author of the broadband Connectivity Roadmap for the 10-county region. She has participated in numerous charrettes, both nationally and abroad, and is particularly passionate about public participation as a part of the design and planning process. Kirsten leads the development of
digital navigation and equitable planning tools within our broadband practice.

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b. Describe any prior engagements in which the Firm assisted a public agency in services similar to those described in this RFQ. The City may request references prior to award.

Prior Experience
Renardo Bezati, PE | Network Designer
Education
M.S., Traffic Engineering/
Transportation, Wayne State University,
2012
B.S., Civil Engineering/Traffic/
Transportation, Wayne State University,
2011
Licenses/Certifications
Professional Engineer, CA, 94040
Emily Elliot, AICP | Communications Lead
Education
M.U.R.P., Urban and Regional Planning,
California State Polytechnic University,
2014
B.A., Geography Natural Resources
Management, San Diego State
University, 2009
Licenses/Certifications
American Institute of Certified Planners, 28647
Mr. Bezati has experience in the transportation and
telcom field producing deliverables, concepts, reports, plans, specifications, and estimates. His previous project experience includes traffic safety studies, traffic analysis, signing and striping, traffic signal design and operations, traffic control, and electrical design for various intelligent transportation systems. Mr. Bezati has worked on projects for many local municipalities, such as Anaheim, Laguna
Beach, Orange, Long Beach, Los Angeles, and state projects for California Department of Transportation (CALTRANS), Washington, Texas, Michigan, and Illinois.

Ms. Elliott serves as the Planning Department Manager
of Michael Baker’s Inland Empire offices of Palm Desert, Ontario, and Temecula. As a practitioner, she oversees and prepares community planning, housing, and environmental documents for public and private sector clients. Ms. Elliott is a versatile project manager effectively administering contracts across various project types. She draws on her broad background of consulting and municipal service to develop, lead, and implement community engagement
programs. Ms. Elliott has led successful outreach and
engagement programs for a number of Housing Element
updates and to aid the selection of public art. As part of the consultant bench for San Bernardino’s Transportation Authority, she provides technical assistance to SBCTA
member jurisdictions on housing policy and community
outreach. She has in-depth understanding and appreciation of the needs of public agencies, project applicants, and the public.

Beaver County Broadband Verification and Program
Management | Beaver County, Pennsylvania
Client: Beaver County | Lance Grable, Director, Office of Planning and Redevelopment | [email protected] |
724-770-4422
Michael Baker is currently providing program management, data validation, broadband field survey verification, GIS mapping applications, website development and hosting,
and stakeholder outreach to identify areas of Beaver County that are considered to be unserved or underserved for
broadband connectivity. The goal of the project is to field survey addressable structures, coordinate with the public on the areas of Beaver County that are lacking high speed broadband services, and to identify gap areas for future broadband expansion. Expansion will also lead to equitable digital inclusion for all residents, regardless of their demographic or socioeconomic status, providing ease of
access and the effective use of technology to participate in modern society. By working with Michael Baker, this project will affirm Beaver County as a national leader in bridging the digital divide to ensure both urban and rural communities in the County are properly connected and allow the County to be well positioned to pursue discretionary funding as it becomes available for the deployment of broadband.

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Michael Baker conducted an analysis of areas in the
10-county SPC region lacking a fiber backbone to determine locations that lacked middle mile connectivity in order to connect businesses and residents in the unserved and
underserved areas in the region. The analysis included an estimated cost for each route identified. SPC also aimed to promote broadband connection resiliency through the
creation of alternative network connection paths that can be designed to prevent single points of failure on a broadband network. SPC and its partners intend to apply this program to implement the region’s Connectivity Roadmap. SPC
enlisted Michael Baker’s services to provide general project management along with the facilitation of weekly project development meetings. Other tasks include guidance and
assistance to SPC staff in their efforts to compare the attributes of these unserved and underserved areas to the criteria found in the Notice of Funding Opportunity (NOFO) and provide recommendations to identify unserved or
underserved areas which should be pursued in the grant
application, based on the evaluation criteria in the NOFO.

Michael Baker also assisted in the technical aspects of completing and writing the grant application, including coordination with potential for-profit network operators and last-mile provider partners, with a review and compliance NITA Middle Mile Grant Program | SPC Region, Pennsylvania Client: Southwestern Pennsylvania Commission Region
| Andy Waple, Deputy Executive Director | awaple@
spcregion,org | 412-391-5590x310
check of the final Middle Mile Grant application.

The Yuma County Middle Mile Broadband project consists
of the design and construction project of a private Wide Area Network and a diverse redundant open access middle mile backbone. Michael Baker has been contracted by
Yuma County to act on its behalf as the Project Manager/ Construction Manager and provide support and expertise in the oversight of design reviews and construction. The first phase of a planned county-wide fiber network begins at the western edge of Yuma County and will cover approximately 79 miles of fiber optic lines along city and county rights-ofway. The project is currently under design and permitting by ALLO Arizona, LLC and will move immediately into
construction upon securing the permits. The coordination efforts for this project has brought to light the importance of considering time constraints and scheduling timelines for obtaining regulatory agency permits to appropriately utilize the underlying landowner’s property for the conveyance
of the fiber optic lines, protective conduit and appropriate infrastructure appurtenances.
c. Describe any characteristics of the Firm that would be uniquely relevant in evaluating the experience of the Firm to handle the proposed Project
Michael Baker’s telecom team is made up of personnel with diverse backgrounds in Engineering outside and inside
plant electronics, fiber placement, cybersecurity, project management of fiber placement, as well as Digital Equityfocused personnel with real world practical expertise in bridging the digital divide.

Michael Baker’s team of experts has a rich history of
performing successful projects within the broadband
and telecommunications infrastructure market and has
supported clients in meeting their needs on an array of project scopes that require thorough, cross-disciplinary knowledge and planning. We are currently at the front
lines of the initiative to expand broadband in unserved and underserved areas at various levels.

Yuma County Middle Mile Broadband | Yuma County, Arizona Client: Yuma County | Frank Sanchez, PE , Director/
County Engineer | 928- 817- 5120 |franciso.sanchez@
yumacountyaz.gov
“I find your team to be thorough and the most
knowledgeable that I’ve worked with. I think
it’s in everyone’s interest that this [State
program] is done right.” – National Fiber
Internet Service Provider regarding Michael
Baker’s grant distribution methodology
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With our broad background and access to the most up-todate information and knowledge on broadband expansion programs and funding, Michael Baker is the ideal partner to assess the feasibility of governance options, and to consult the City and its residents in formulating a broadband strategy to meets community needs, and to develop an
implementable master plan with clear steps towards
funding and construction.

Our Commitment to
Equitable Planning
From a technical
perspective, Michael Baker
relies on the expertise
of in-house Registered
Communications Distribution
Designers, Registered
Professional Engineers
and Project Management
Professionals who specialize
in both wired, wireless, and
hybrid solutions that are
scalable to the geographic
region, project scope, and
budget constraints. We are
well versed in designing,
deploying, and overseeing
network expansion builds
that are technologically
complex, within budget, all
while reflecting the priorities
of stakeholders and
community need. Our project
management services are
specific to the needs of our
clientele, supporting a range
of deployment approaches,
ownership and governance
models.

As it applies to Digital Equity and Inclusion, Michael
Baker’s broadband services are firmly grounded in a
commitment to furthering digital equity at all stages of our work. Our team has created Equity Index mapping
tools that identify opportunity areas by population
needs; we have developed qualifiers to measure
and assess project impacts through economic and
demographic lenses; and have led the development of
digital literacy and training tools and programs. Our
commitment to digital equity extends to all areas of our work. To ensure inclusion, we aim to truly understand the needs of ALL to guide solutions that meet community and individual needs. We are not only concerned with meeting current needs, but we want to position the City for full- and long-term success.
▬ Digital equity extends to community-oriented and
community-owned solutions. Municipal networks are
a way to share local assets amongst residents and
increase self-reliance as well as maintaining the power to allocate resources and set pricing to meet needs.

Not reliant on driving private profits or responding
to external shareholders: the shareholders are the
customers and residents. There are many models, but
Michael Baker is a neutral advisor prepared to help
you understand all options and assess merits based
on multitude of factors, from cost to performance to
sustainability and community impact.
▬ We have a robust team of economic planners and
analysts – we know broadband is not just about
the infrastructure but the long term value it brings
across other sectors. The City can be assured that we
are prepared to help guide and advise you through
understanding, weighing, and quantifying relative value and potential future impacts.
d. As the City may need Services immediately upon the selection of a consultant, please describe how the Firm intends to prepare for and undertake the needed tasks. Explain any reasons that would prevent the Firm from undertaking this Project in short order. Provide information regarding the Firm’s current staffing, current workload, and availability to perform the Services.

Michael Baker will be ready to launch this project with the City on day one. Our team will immediately begin gathering pertinent data for the needs assessment and begin to
identify the areas of unserved and underserved across the City. The assessment will provide us data about the existing broadband Internet Service Providers (ISPs) in the area and their offerings. We will quickly schedule meetings with the City to confirm schedules and understanding of the tasks.

Our intent is also to glean important knowledge from the City on all the existing City-owned facilities and the state of equipment, fiber, and existing infrastructure.

Michael Baker will utilize all this information from our contact with the City, community survey, and data collected to begin a conceptual network design to optimize the City’s plans to allow for efficiency and economy through all
phases of work.

We have the capacity to make the City’s project a
priority. Michael Baker currently has 12 offices and
586 employees in California. We take pride in excelling in our services where we live and work. Our CTS
team made up of more than 200 professionals, delivers
services for broadband, design and planning, architecture, environmental, construction, program management, and
the full life cycle support services. We are at the forefront of broadband and Geospatial Information Technology
(GIT) technology, leveraging innovative technology to
deliver superior service to our public and private sector clients. From local broadband planning projects to federal Michael Baker
provided recent
public comment with
recommendations to
the FCC for their 2023
Notice of Proposed
Rulemaking,
Recommendations
and Best Practices
to Prevent Digital
Discrimination and
Promote Digital
Equity. The intention
of our response and
recommendations is
to assist in accurately
defining digital
discrimination, and
to provide methods
of prevention and
accountability. These
public comments
will inform FCC
rulemaking toward
the prevention
of various
discriminatory
practices in the digital
space.

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CITY OF SAN BERNARDINO ▬ BROADBAND STRATEGIC MASTER PLAN ▬ RFQ NO. F-23-31 ▬ PAGE 8
programs, such as the FCC National Broadband Assessment Program, we define and deliver systems and personnel to meet our customers’ ever-evolving demands while remaining up-to-date on new broadband expansion initiatives, vital funding sources and regulations that govern them. Our CTS team has made our National Broadband Services a priority. Jeremy Jurick leads this practice alongside a team of project managers, planners, engineers, communications and public engagement specialists, GIS professionals, and graphic designers. This has enabled Michael Baker to grow its capacity related to broadband planning, mapping, and program management. As an example of this, Michael Baker has simultaneously performed work for the FCC, eight statewide broadband programs, and AT&T with no capacity issues.

Our team has successfully implemented broadband programs for over twenty years and continues to advance our methods and technologies through research and proactive involvement at the many levels of the telecommunications industry.

Our 1,003 professional engineers (PE), 66 certified planners (AICP), 80 project management professionals (PMP), 35 certified public land surveyors, and 25 geographic information systems professionals (GISP) continually coordinate with our Registered Communication Distribution Designers (RCDD) and Professional Scrum Product Owners (PSPO) to develop custom broadband solutions and associated services to manage broadband programs. We collaborate utilizing Smartsheet staff management software to increase communication within our team and streamline our management of ongoing projects.

This, along with our deep bench, increases our efficiency and ensures our availability is not limited now or in the future.

Team Availability

V ) E X C E P T I O N S C E R T I F I C A T I O N
a. In submitting a SOQ in response to this RFQ, the Firm is certifying that it takes no exceptions to this RFQ including, but not limited to, the Agreement. If any exceptions are taken, such exceptions must be clearly noted in the SOQ and may be reason for rejection of the SOQ. As such, each Firm is directed to carefully review the proposed Agreement and the insurance and indemnification provisions therein.

Michael Baker certifies it takes no exceptions to the Agreement and RFQ and that we will be able to meet all insurance requirements.

Team Member Role Availability* Current Workload
Chris Taylor Project Manager 50% ▬ Connecticut BEAD Program ▬ Idaho BEAD Program
▬ Louisiana Broadband and Governor’s Office GIS
Support
▬ Community Engagement Lead, City of Pinole
Housing Element Update, Pinole, CA
▬ Community Outreach for Public Art Selection,
Redlands Railway District, LLC
▬ Housing and Engagement Technical Assistance,
SBCTA
▬ LA Metro I-405 Aux Lanes PS&E
▬ Los Angeles County Traffic Design Services
▬ Southern California Edison DSDD
▬ I-15 Express Lanes
▬ I-10/Monroe
▬ I-10/Jackson
▬ Beaver County, PA
▬ Westmoreland County, PA
▬ Fayette County PA Broadband Project
Dave Price QA/QC Manager 20%
Kheang (KT) Tang Deputy Project Manager 50%
Kirsten Compitello Planning Lead 20%
Steven Latino QA/QC CA Manager 20%
Tony Salas Cost Estimating 30%
Sean Carlton GIS Lead 20%
John Crites Broadband Specialist 75%
Uriah Hunt Broadband Planner 60%
Sam Garfinkel Planning Lead, Funding
Strategist 20%
Derek Wong Financial Analyst 25%
Renardo Bezati Network Design / Cost
Estimating 60%
Evan Rubin GIS Specialist 75%
Elizabeth Crow Communications
Specialist 75%
Stephen Golebiewski Graphic Designer 50%
Emily Elliott Outreach/
Communications Lead 20%
*The chart above denotes available working time for each proposed staff member. Though some staff members show less available time on this project, all staff members and staff leaders will be at the ready to take on tasks, and will prioritize your needs for this endeavor. The City can be assured that we have the capacity to meet all project goals beyond your expectations.

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MICHAEL BAKER INTERNATIONAL ▬ MBAKERINTL.COM

BIDDERS RESPONSE TO

EACH SCOPE OF SERVICES
ITEM
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Michael Baker will assess the
City’s broadband coverage,
speeds, costs, and local
resources to understand
connectivity needs and
gaps and identify where the
most vulnerable residents,
businesses, and education
facilities are unserved or
underserved with broadband
connectivity. We will work
with and advise the City on designing and operating a broadband network, ensuring that every reasonable detail and consideration is included in our work together. Michael Baker’s Broadband team has decades of telecommunication experience from engineering design and conception to delivery of broadband service, and specifying vendors for electronics, fiber, and peripherals in the most economical method. Recent work in broadband analysis, needs assessment, and planning includes a connectivity analysis for the Southwestern Pennsylvania Commission (SPC) to assess and identify current coverage and connectivity gaps; and broadband verification and program management for Beaver County, Pennsylvania that involved various assessment tasks, including data validation and outreach with the goal of identifying areas of unserved and underserved. Michael Baker personnel have also been involved in Project Management of fiber builds utilizing aerial and underground infrastructures to deliver a quality product to our clients, including installation at a customer location, ensuring our work is done to highest service and quality standards.

Michael Baker will rely on proven successful methodologies to assist the City in identifying met and unmet needs of city businesses and residents as it applies to available broadband infrastructure, specifically service and access needs. Using the unique skillsets of our diversely qualified team, Michael Baker will identify all aspects of existing broadband solutions provided by ISPs using existing data from the FCC along with interviews of those with local knowledge. Michael Baker will also work with the City to identify existing facilities, infrastructure, buildings, or any other peripherals that could be used to develop a “Smart San Bernardino.”
We will recommend methods or policies to advise the City on streamlining projects through a deep review of State and Federal laws, regulations, and state broadband policies. Our trusted subconsultant, Quadra, will provide legal and regulatory advice. We have worked on multiple projects with Quadra partner, Jon Wilkins, who brings multiple years of experience in senior roles at the FCC and will supplement our experience with advisory expertise on public policy with the FCC and the National Telecommunications and Information Administration (NTIA). Quadra also possesses a deep, integrated knowledge of business strategy and wireless engineering in the technology, media, and telecom (TMT) sector.

Through meetings and interviews with stakeholders as well as the community access survey described in Task 2 and Task 7 of this response, we will establish a baseline conditions understanding. During interviews with city officials, we will identify those aspects that can be further utilized by the City to develop a city-wide broadband network. Michael Baker will identify pros and cons along with risks that exist across engineering, construction, and financial aspects of a fiber build and implementation of a City-owned and operated broadband network. At this phase, our team will begin compiling financing options, especially as it relates to financing the infrastructure through bonds, fees, and available grants, and consulting with in-house and subcontracted legal expertise to develop a baseline conditions scenario, which will be used to educate and inform city leaders, staff, resource providers, and other impacted stakeholders. Included in baseline conditions education for stakeholders, we will address other potential risks or issues that may arise if the City approves the establishment of a fiberbased broadband infrastructure network.

BIDDERS RESPONSE TO EACH SCOPE OF SERVICES ITEM
Included.

Michael Baker acknowledges that we have read, understand, and will deliver all requested items listed in the scope of work for each task, including all sub sections under each item.

Community Engagement Strategy and Plan
STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6
Needs Assessment
Project Scoping and
Analysis for City-wide
Broadband
Cost Analysis and
Phasing Options
Financing Options
Portfolio
Private Equity
Partnership
Opportunities
Broadband Strategic
Master Plan and
Implementation
Consulting
STEP 7
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CITY OF SAN BERNARDINO ▬ BROADBAND STRATEGIC MASTER PLAN ▬ RFQ NO. F-23-31 ▬ BIDDER’S SCOPE ITEM RESPONSE ▬ PAGE 2 Task 2 Project Scoping
and Analysis for City-wide
Broadband
Michael Baker will build on the
needs assessment findings
arrived at through Task 1
activities and deliverables.

Task 1 will be the foundation
for collecting all relevant
information about the City
potentially owning and
operating a public broadband
infrastructure network. To continue relevant data collection, we will facilitate meetings with stakeholders, interviews with city leaders, staff, and resource providers, integrating national and state statistics about municipally owned broadband infrastructure networks, and performing a survey of the community. Michael Baker will design and deploy an open and transparent engagement program inclusive of all voices across the City that will ensure all populations have ample opportunity to participate in public engagement activities, as detailed in task 7. For this scoping and analysis task, key deliverables include a community survey that will be designed to provide a baseline understanding of community members’ issues relative to internet connectivity, costs they incur for service, and their ability and willingness to pay for reliable, highspeed internet. A survey analysis report will be provided as a presentation to city staff.

This type of work is within the capabilities of our expert team. Michael Baker is a national leader in the development and deployment of scalable enterprise broadband planning solutions. From broadband inventory projects to complex programs, such as the FCC National Broadband Assessment Program, we define and deliver systems and personnel to meet our customers’ ever-evolving demands. We have a history of successfully managing and delivering broadband consulting services to all levels of government throughout the U.S. Michael Baker, as a subconsultant to Cost Quest Associates (CQA), supported the FCC Broadband Serviceable Location Fabric (BSLF) project by performing services such as BSLF mapping development, data verification and quality assurance testing, Application Programming Interface (API) development, help desk support, ad-hoc support, and other client-specific services listed under Scope of Work.

We will analyze data, including the service provider(s) presence, internet speeds, and monthly price, providing reporting for what currently exists within the city limits of San Bernardino via market analysis. Our GIS specialists will identify all ISPs and their offerings in a mapping format, specifically with our Broadband Availability and Digital Equity Atlases. These atlases describe the true state of broadband based on accessibility, adoption, and equity. These tools will allow the City to see where deficiencies exist, which will inform what strategies the City will employ to effectively serve unserved and underserved locations. These innovate web mapping applications analyze demographic and socioeconomic impacts such as Environmental Justice (low income and minority, and Title VI (disable, older adults) factors, along with existing conditions of broadband technology, provider, and speed. More information on our broadband atlas development can be found at https://broadbandapps.com/. Our organization invests heavily in our GIS professionals and technology with expert-level staff needed to deliver high-quality solutions to our clients.

With a dedicated broadband services division, we offer the City the GIS expertise and deep knowledge of broadband required to provide local, customized services.

To evidence this expertise, Michael Baker provided data collection and analysis, web mapping applications, and GIS database development to identify the true state of the Southwestern Pennsylvania Commission (SPC) region as it related to broadband connectivity within the region’s demographic and socioeconomic composition. Michael Baker assessed the region and local community broadband coverage, speeds, costs, and local resources to identify connectivity gaps within the region to equitably serve the most vulnerable residents, businesses, and education facilities who are impacted by insufficient broadband connectivity. Additionally, Michael Baker is currently providing program management, data validation, broadband field survey verification, GIS mapping applications, community survey creation and analysis, website development and hosting, and stakeholder outreach to identify areas of Beaver County, PA, that are unserved or underserved with broadband connectivity. The Beaver County Office of Planning and Redevelopment aligned with Michael Baker to close the digital divide in Beaver County. Michael Baker is also performing similar feasibility studies for other clients at the county and state level which includes data inventorying, infrastructure mapping, and ad-hoc mapping requests.

Included.

Michael Baker acknowledges that we have read, understand, and will deliver all requested items listed in the scope of work for each task, including all sub sections under each item.

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CITY OF SAN BERNARDINO ▬ BROADBAND STRATEGIC MASTER PLAN ▬ RFQ NO. F-23-31 ▬ BIDDER’S SCOPE ITEM RESPONSE ▬ PAGE 3 To best determine viable options to integrate into the overall Broadband Strategic Master Plan for the City of San Bernardino, our team will develop strategies based on market analysis that the City can pursue to reduce the digital divide in terms of access and affordability of services to promote higher adoption and inclusion rates for economically disadvantaged residents. All aspects of physical build options, including a recommendation for beneficial infrastructure, will be reflected in a report to give the city all the information to determine the best paths forward. A risk assessment matrix will be created , using national best practices, as part of our analysis and research. This matrix will reveal advantages and disadvantages of municipality owned assets and will summarize approaches to publicly owned and/or managed broadband assets. This matrix may establish efficiencies in sharing assets but may also reveal costs for operations, maintenance, or other needs. The governance and ownership models will be summarized for the City to use as a reference and will provide clear links to case studies to assist the City in determining if or when direct ownership is a preferred approach. This will be utilized for Task 5 to serve as the basis for exploring a Public-Private Partnerships (P3) model as a hybrid approach to achieving the City’s goals.

Task 3 Cost Analysis and
Phasing Options
Michael Baker will utilize the
data from the Task 1 Needs
Assessment, the results of
Task 2 Scoping and Analysis
as well as discussions with
the City and stakeholders to
determine the best and most
viable options for deploying
a municipal public network.

A key outcome of Task 1-3
will be determining whether the City should upgrade existing infrastructure or deploy new infrastructure to support the public network. The conceptual design will be based on the City’s goal for deployment for the designed areas to serve the 100,000 locations to be optimized that will reduce capital spending and be able to deploy services rapidly. The design will split the determined area into fiber serving areas (FSAs) and will give granular costs at a neighborhood level. This will help to establish the phasing and prioritization along with demographics, digital equity, and other factors that the City may use to make an informed decision. Our team will provide phasing options for both scenarios that span from planning to deployment, as well as high-level project budgets, to aid the City in making this important decision.

Michael Baker will leverage its relationships with auto-design vendors to create a high-level preliminary project plan containing outside plant design, electronic requirements, and fiber and equipment needs. With that information, our team will be able to establish a high-level cost estimation that will provide an indication of the average costs per home to have a fiber fed network, the
total amount of aerial
and underground
construction
required, and the
amount of fiber
needed to construct a
broadband network.

Michael Baker will
use its broadband
Pro forma template
to capture expense
and operational costs
against revenues
to show cash flow
and ROI for this
broadband project
across a projected
estimated forecast for the build.

Included.

Michael Baker acknowledges that we have read, understand, and will deliver all requested items listed in the scope of work for each task, including all sub sections under each item.

Michael Baker’s Pro Forma Template
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CITY OF SAN BERNARDINO ▬ BROADBAND STRATEGIC MASTER PLAN ▬ RFQ NO. F-23-31 ▬ BIDDER’S SCOPE ITEM RESPONSE ▬ PAGE 4 Based on the Task 3 analysis and chosen funding option from Task 4 Michael Baker will establish a project budget to determine the most effective and efficient project phasing options. Effective meaning that Michael Baker and the City will determine the highest priority areas and plan to provide services to those first, and efficient describing the use of resources to establish services to the high priority areas as quickly as possible.

Task 4: Financing Options
Portfolio
Michael Baker will deliver a
concise financial portfolio
describing the top three
recommended financing
options to support the
planning, development, and
management of the City’s
Open-Access Network. Each of
the three financing options in
the final portfolio will include
a grant funding strategy (federal, state, and private sources), in addition to revenue modeling to ensure that each option is fiscally sustainable. We will tailor our research specifically to the City’s priorities and preferred level of risk, within the context of municipal, state, and national policies. To arrive at these three final recommended funding paths, we will leverage the research we have already accumulated regarding national best practice as it applies to the ownership and governance of newly deployed municipal networks.

Determining the governance structure, specifically the City’s level of oversight and planned network utilization by the municipality, will have a direct implication on the way the City’s Open-Access ownership model is formalized. As it applies to municipal network governance, utilizing SMART (Simple, Moral, Accountable, Responsive, and Transparent) Governance models will ensure that municipal use of the network is prioritized through network design, and uses modern technology for collaborative and simplified governance that is transparent and accountable. Structural and social enhancements are key results of SMART Governance; therefore, the City could take almost any municipal strategic goal (broadband-centered or otherwise) and utilize SMART Governance approaches to advance them. Michael Baker’s recent experience designing high-level SMART governance models for Westmoreland County, PA (depicted in the Westmoreland Broadband Data Collection & Feasibility Study Report), has spurred action on behalf of municipalities in the county who are keen to help the county increase local government efficiency via broadband enhancements.

When the governance structure(s) of the municipal network is determined, we will work to align the governance structure priorities to an ownership model that allows the City to meet each broadband goal set via strategic planning. The RFQ mentions an Open-Access Provider model, which enables the municipality to lease access to each provider and set a standard rate structure and terms of service to deliver Internet, telephone, and other services. Open access networks establish a transport connection, like a Type II telecommunications service from a network-to-network interconnection to an end user, which could be a business, residence, or community anchor organization. As we develop our contribution to Broadband Strategic Master Plan for the City, Michael Baker will ensure that alternative municipal network ownership models are thoroughly considered. This research and analysis, reinforced by proforma cost-modeling, will offer all relevant considerations so that the City chooses an ownership model that optimizes the impact of the network’s planned utilization.

We will work with the City to establish a monthly network operations fee to be collected from various consumers including residents and businesses , which will factor in aspects such as the type of user, type of use, hours of use, download and upload speed requirements, as well as affordability considerations. Utilizing a functional proforma that is specific to OpenAccess Municipal Network provision, the City will have a clear understanding of expense and revenue return. The resulting portfolio will have specific considerations as it applies to the City putting this new policy into practice, which will help outline realistic paths to implementation that are specific to the history and future plans of the City of San Bernardino.

Included.

Michael Baker acknowledges that we have read, understand, and will deliver all requested items listed in the scope of work for each task, including all sub sections under each item.

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CITY OF SAN BERNARDINO ▬ BROADBAND STRATEGIC MASTER PLAN ▬ RFQ NO. F-23-31 ▬ BIDDER’S SCOPE ITEM RESPONSE ▬ PAGE 5 Task 5: Private Equity
Partnership Opportunities
A feature of the financing
portfolio options will be
analysis and recommendations
regarding private equity
partnerships to support the
City’s network. Michael Baker
will take the data compiled from
Tasks 1-4 and combine it with
national best practices as they
specifically apply to municipal
broadband and private equity partnerships. We will leverage our experience working with governmental agencies and bringing in both private industry partners as well as public partners from local, state, and national arenas to collaborate on the network build. Once agreed upon by the City and Michael Baker, the identified potential partnerships will be described in the financing options with a high-level overview of the potential partner, its history, particularly in broadband, a complete Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis of a partnership with said entity.

Should the City decide to pursue a private equity partner in this endeavor, Michael Baker will modify the cost analysis and phasing options accordingly and assist City staff in preparing for meetings and negotiations to ensure municipal priorities are a key feature of any resulting agreement.

Michael Baker has been a thought leader when it comes to bringing successful public and private partnerships together to enhance broadband infrastructure. We consulted with the Pennsylvania Turnpike Commission (PTC) on a large-scale fiber build project with 549 miles of new fiber. This project was the first P3 partnership revenue-risk broadband project in North America. Michael Baker was instrumental in bringing forward this relationship and working with both entities to create the best project outcomes, using a “one dig” policy and providing infrastructure pathways for current and future fiber deployment opportunities for other entities to place fiber along the same route. This work has resulted in revenue opportunities that benefit all those involved in the partnership.

Task 6: Broadband
Strategic Master Plan and
Implementation Consulting
Michael Baker will utilize
all of the data analysis from
above in data collection and
local engagement to develop
a draft Broadband Strategic
Master Plan that is time-bound,
succinct, and actionable. This
draft will reveal methodology
of how data was collected
and analyzed to present the options to the City across every aspect of a broadband network; viability, finical opportunities, stability, and factors that will allow the City to make informed decisions as to next steps. Included in this draft will be the financing portfolio with the top three recommended options along with comments throughout the strategies presented to indicate how each specific finance option could possibly affect the project and overall outcomes.

Strategic and implementation planning is a proven strength of the Michael Baker broadband team, as evidenced by the current and past strategic planning and project management services employed by multiple municipality, county, and state clients across the country. Our digital equity and inclusion experts, technical subject matter experts, and community planners are prepared to assist the City in all areas of strategic development, including visioning and positioning, ownership and governance, financial planning and other needs as they arise. We have thoroughly assessed this opportunity, assembled an experienced team, and devised an approach necessary to help the City further develop the Broadband Strategic Master Plan. We will leverage all aspects of our technical staff and resources to support the development of the Implementation Plan as a feature of the Master Strategic Plan, which requires consistent collaboration with City staff as well as an organized, highly motivated team, one with the proven and relevant experience as outlined in this response.

Included.

Michael Baker acknowledges that we have read, understand, and will deliver all requested items listed in the scope of work for each task, including all sub sections under each item.

Included.

Michael Baker acknowledges that we have read, understand, and will deliver all requested items listed in the scope of work for each task, including all sub sections under each item.

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CITY OF SAN BERNARDINO ▬ BROADBAND STRATEGIC MASTER PLAN ▬ RFQ NO. F-23-31 ▬ BIDDER’S SCOPE ITEM RESPONSE ▬ PAGE 6 To develop robust Master Broadband Strategic and Implementation Plans and ensure that plan actions positively affect the community, Michael Baker will develop performance standards for assessing overall impact. These standards will be informed by the City of San Bernardino’s goals for economic development, educational outcomes, health, and civic engagement. Additionally, we will leverage the results of the engagement activities described in Task 7 to guide and prioritize the implementation of goals and will also use the Digital Equity Atlas to shape and track performance toward these standards. The Digital Equity Atlas’s Connectivity Index score provides a convenient way for stakeholders to view needs and affordability data. Using this tool, we can target high-need areas to prioritize for outreach, affordability assistance, project phasing, and related needs.

Michael Baker will adhere to the draft deadline to be collaboratively set between our team and the City. Our team will closely track all comments provided by the City in a comment tracking log, which will be shared with the internal project manager to create consensus about the proposed changes and to ensure no commentary is omitted from the next revision of the Plan. After the draft Plan milestone is reached, Michael Baker will work with the City to determine a time frame for public comments. During the community comment period, our team will track comments in the same process described above and will work with the City to address issues and concerns brought up during this period. Once the Implementation Plan draft has been revised to include all City approved commentary, both provided internally by the City and by the public, the Final Implementation Plan will be presented in a readable and visually pleasing format to the City Council and the Mayor during a regularly-scheduled City Council meeting.

Concurrent to the community comment period, we will develop a set of actions in order of priority to be implemented upon approval of the Master Plan. Upon approval from the City, these recommendations will become the Implementation Plan. The Implementation Plan will be presented in a clear table format and will showcase recommended actions to be taken along with recommended phasing and time frames for implementation, as well as accompanying cost estimates for each path. The financing options prepared in Tasks 4 & 5, including revenue estimations, grant opportunities, cost sharing and economic incentives, and private equity partners will be refined to be specific funding strategies for each recommended action.

As part of the Implementation Plan development, we will include recommended construction phases, long-term financing options and cost structures per each phase (including equipment upgrades, operations/maintenance, and service provider fees), as well as a recommendation for establishing the optimal legal structure for the City to consider. Michael Baker will work with the city to develop an RFP that will be tailored to the agreed upon network design, governance and ownership structures, and any other priorities identified during our strategic planning processes. Our team can also assist with developing scoring methodologies to help City officials make a data driven decision for award.

Task 7: Community
Engagement Strategy and
Plan
Building on the data collection
and inventory assessment
developed in Task 1 and
feedback collected in Tasks
2, 6 and 7, we will work
closely with the City to design
a Community Engagement
Plan that ensures outreach
activities and feedback
gathered will allow the City to decide the type of network and the best approach to building. The following goals have been set forth to engage providers, partners and beneficiaries:
▬ All: Create an inclusive, accessible, and transparent engagement process and educational campaign around the Master Strategic Broadband Plan to explain what the network model is and what it means for residents. ▬ City and related staff: Determine what they can manage, maintain, and pay for over time; and discuss the implications of different municipal network models on City resources and support services needed. ▬ Residents: What can they afford? What kind of customer service support do they look for? Do they have trust/interest in municipal services?
Included.

Michael Baker acknowledges that we have read, understand, and will deliver all requested items listed in the scope of work for each task, including all sub sections under each item.

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CITY OF SAN BERNARDINO ▬ BROADBAND STRATEGIC MASTER PLAN ▬ RFQ NO. F-23-31 ▬ BIDDER’S SCOPE ITEM RESPONSE ▬ PAGE 7 Our public engagement team recommends the following tactics including the Community Engagement Plan described above:
▬ Broadband Taskforce (3) – At the outset of the project, in consultation with the City, we will create a Taskforce comprised of a coalition of leaders such as the City Clerk; City Manager’s Office; Community & Economic Development; Finance; Fire; Information Technology; Inland Empire Media Group; Library; Parks, Recreation & Community Services; Police Department; Public Works; and the Water Department. The Taskforce will represent voices that are crucial to each stage of development toward a sound Final Broadband Strategic Master Plan and Implementation Plan. ▬ Master Stakeholder Database Design – The Database will house contact information for all City and community stakeholders, and is the cornerstone of an inclusive, transparent, accessible, and welcoming public engagement strategy.
▬ Website Content –This task includes creating content for the City to share on their website ▬ Community Survey – The purpose of this is survey is to verify Internet speeds and understand the public’s knowledge of and issues with internet connectivity, their current service costs, and obtain a sense of which households would be willing and able to pay for reliable, high-speed internet. The survey will be deployed using all digital methods (website, email, etc.) as well as paper/pencil methods to ensure that the voices of those without internet access are heard. ▬ Public Pop-Up Meetings (4) – Hosted by community leaders identified by the Broadband Taskforce, and led by Michael Baker staff, these Public Meetings will meet with diverse groups where they are. Feedback will be elicited, collected, and tracked for timely reporting, and we will follow up for any concerns raised. Our staff can conduct outreach sessions in English and Spanish, and we will rely on the City’s relationship with a translation services vendor that can provide support in other languages as needed.
▬ City-wide Open Invite Virtual Workshop (1) – This workshop would be open to all stakeholders and relevant constituencies to gain feedback on connectivity issues, and goals. ▬ Email Blast Updates (3) & Postcard Mailing (1) – Distributed at key milestones in the project progress with the post card mailing to promote the public survey to the underserved and Limited English Populations (we assume translations and mailings will be managed by the City)
The graphic below shows a high-level timeline for the work to be done, according to tasks indicated for this project. While some of these time frames by task may changed, the overall time frame on the project will be met, foregoing any unforeseen roadblocks.
2023 2024

MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL Needs Assessment
Project Scoping and Analysis
for City-wide Broadband
Cost Analysis and Phasing
Options
Financing Options Portfolio
Private Equity Partnership
Opportunities
Broadband Strategic Master
Plan and Implementation
Consulting
Community Engagement
Strategy and Plan
RFP Due Anticipated Notice of Intent Contract Finalized Packet Pg. 181
Weight Factors Telcon Services LLC Lit Communities mPower Consulting LLC Michael Baker International Inc EntryPoint Networks Inc RFQual F 23-31 Broadband Strategic Master Plan Criteria: E1 E2 E2 Total E1 E2 E3 Total E1 E2 E3 E1 E2 E3 E1 E2 E3 8 7 5 38 7 7 7 40 8 8 8 48 9 8 7 48 8 8 8 48
60 Part 1: Statement of Qualifications
-Contact Information
- Content of SOQ
- Background and Experience
Scope of Services
8 8
8 6
9 5
8 6
8 6
9 6
8 8
9 8
9 8
9 9
9 8
5 8
8 8
8 8
9 8
Task 1: Need Assessment
Deliverables Task 1
Task 2: Project Scoping and Analysis for Citywide Broadband Scope of Services
Task 3: Cost Analysis and Phasing Options
Deliverables Task 3
8 5
7 0 6 5
7 6 8 8
8 8 9 7
8 8 8 8
8 8
Task 4: Financing Options Portfolio
Scope of Services
Task 5: Private Equity Partnership Opportunities
Deliverables Task 5
8 5
5 5
6 6
6 6
8 8
8 8
9 9
8 8
8 8
8 8
Task 6: Broadband Strategic Master Plan and Implementation Consulting Scope of Services
6 7
6 7
8 8
7 8
8 8
Task 7: Community Engagement Strategy and Plan
Deliverables Task 7
Project Specific Experience
- Role of the Firm
- Description of Services
- Staffing
8 6 8
5 9
5 5
1 8
1 9
4 5
4 8
7 8
7 - Duration of providing services
Overall Cost to the City
40 10 10 10 40 5 20 1 4 4 16 7 28
Clarifications/Exceptions/Deviations
Pass
Yes
Pass Pass
Yes
Pass Pass
Yes
Pass Pass
Yes
Pass Pass
Yes
Pass Pass
Yes
Pass Pass
Yes
Pass Pass
Yes
Pass Pass
Yes
Pass Pass
Yes
Pass
Pass/Fail
Yes/No
100
Credential/ Resumes/ Licenses/ Certifications

GRAND TOTALS
Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Total Group Score: 38 Total Group Score: 40 Total Group Score: 52 Total Group Score: 64 Total Group Score: 76 Vendor didn't outright take exceptionsto T&Cs, stated
requested future negotiation if awarded, Vendor only
signed 1 acknowledgement box in RFP.

Evaluation Scoresfor Cost (Landscaping and Maintenance)* Telcon Services LLC $
$
$
$
$
161,200.00
220,000.00
325,200.00
421,670.00
1,256,760.00
Entry Points Network Inc
Lit Communities Broadband
Michael Baker Internationl
mPower Consulting LLC
Lowest Cost get full 40 weighted cost (Telcon Services LLC) 40 Lowest Cost Divided by the 2nd lowest cost is how cost is scored Take 0.7 x the weighted cost of 40 and then you get the score of for Entry Points Network Inc.

Lowest Cost Divided by 3rd lowest cost is how cost is scored Take 0.5 x the weighted cost of 40 and then you get the score of for Lit Communities Broadband
Lowest Cost Divided by 4th lowest cost is how cost is scored Take 0.4 x the weighted cost of 40 and then you get the score of for Michael Baker International
Lowest Cost Divided by 5th lowest cost is how cost is scored Take 0.1 x the weighted cost of 40 and then you get the score of for mPower Consulting LLC

0.7 0.7 x 40 = 28

0.5 28
20 16
4 0.5 x 40 = 20

0.4 0.4 x 40 = 16

0.1 0.1 x 40 = 4
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager
Mary Alvarez-Gomez, Grants Division Manager
Department: City Manager's Office
Subject: Amendment No. 2 to the Master Agreement with
Renne Public Policy Group (RPPG) (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute Amendment No. 2 to the agreement between the City of San Bernardino and Renne Public Policy Group (RPPG), to extend and increase the agreement for grant consultation services for an amount not to exceed $86,000 for the extension period of July 1, 2023 through June 30, 2024.

Background
On December 14, 2021, the City of San Bernardino (“City”) released a Request for Proposal for Grant Resource Development Services. The RFP closed on January 3, 2022. The bidder awarded was Renne Public Policy Group (RPPG). The Professional Service Agreement (PSA) was executed for an amount not to exceed $46,000 for the period of May 9, 2022 through December 1, 2022 to provide grant consultation services to the City.

On November 2, 2022, Amendment No. 1 to PSA was approved to extend and increase the agreement for a total contract amount not to exceed $96,250 for an additional 6- month period, through June 30, 2023. No other provisions of the agreement were changed.

Discussion
The City of San Bernardino (City) has engaged with RPPG over the past year for grant writing consultation services. RPPG meets once a month with staff to discuss potential grant funding opportunities and supports researching minimum qualifications and project specifications as needed, works with various staff to facilitate information gathering to articulate the “San Bernardino story” and assists in the grant application Packet Pg. 183
preparation. RPPG also held “Deep Dive” meetings with department heads to assess funding gaps and service needs and produced a final report presenting their findings and analysis on past grant performance and recommendations for improvement, and recommendations for grant funding priorities and multi-year strategy. RPPG has assisted the City with six (6) grant application submissions. One application was successfully awarded, and the remaining are pending award results.

Approval of the extension will allow RPPG to continue supporting the City with grant writing services. As of the writing of this report, the Grants Division is developing applications for four (4) grant opportunities and vetting projects for an additional four (4) with support from RPPG. To maximize success in receiving grant awards RPPG’s services are crucial until the City can fill the Grant Writer vacancy and/or conduct another competitive procurement process for professional grant writing services.

The amendment to extend the contract is brought forth pursuant to Chapter 3.04, section 3.04.040 Approval Authority, that requires purchases over $100,000, may only be authorized by the Mayor and City Council. Amendment No. 2 increases the not-toexceed amount by $86,000, bringing the total contract not-to-exceed amount to $182,250. The term of services is July 1, 2023 through June 30, 2024 and is for an amount not to exceed $86,000 for the extension period.
2021-2025 Strategic Targets and Goals
The proposed Amendment No. 2 to the Professional Service Agreement between the City and RPPG aligns with Key Target Goal No. 1: Improved Operational and Financial Capacity by supporting the City’s ongoing work to secure additional revenue sources.

Fiscal Impact
Sufficient resources are available in the operating budget in the 2023-24 fiscal year to fund the agreement.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to execute Amendment No. 2 to the agreement between the City of San Bernardino and Renne Public Policy Group (RPPG), to extend and increase the agreement for grant consultation services for an amount not to exceed $86,000 for the extension period of July 1, 2023 through June 30, 2024.

Attachments
Attachment 1 – Amendment 2 RPPG PSA
Attachment 2 – First Amendment to Professional Service Agreement RPPG Ward:

All Wards
Packet Pg. 184
Synopsis of Previous Council Actions:

November 2, 2022 The Mayor and City Council authorized the first amendment to the PSA with RPPG in an amount not to exceed $96,250.

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55600.00100\33763078.1
AMENDMENT NO. 2 TO

PROFESSIONAL SERVICE AGREEMENT

WITH RENNE PUBLIC POLICY GROUP (RPPG)
This Amendment No. 2 to the Agreement for Grant Development Services is made and entered into as of July 1, 2023 (“Effective Date”) by and between the City of San Bernardino, a charter city and municipal corporation (“City”) and Renne Public Law Group, DBA Renne Public Policy Group, a California Limited Liability Corporation (“Consultant”). City and Consultant are hereinafter sometimes referred to individually as a “Party” and collectively as “Parties.”

RECITALS
A. WHEREAS, the City and the Consultant have entered into an agreement, dated May 9, 2022, for the purpose of providing Grant Development Services (the “Master Agreement”)
B. WHEREAS, the City and the Consultant have entered into an Amendment No. 2 to the Master Agreement, dated July 1, 2023 for the purpose of amending the Scope of Work, Compensation, and Term of the Master Agreement.

C. WHEREAS, the Parties now desire to amend the Master Agreement in order to extend the term of the Master Agreement for an additional term of twelve (12) months, and to include additional funds for the continued performance of the services in accordance with the compensation provisions of the Master Agreement.

NOW, THEREFORE, in consideration of the above recitals and the mutual covenants, conditions, and promises contained in this Amendment No. 2 and the Master Agreement, the Parties mutually agree as follows:

AGREEMENT

1. Incorporation of Recitals. The recitals listed above are true and correct and are hereby incorporated herein by this reference.

2. Term. The term of the Master Agreement shall be extended for an additional term of twelve (12) months through June 30, 2024, unless earlier terminated.

3. Services. The services provided to the City are is amended and detailed in Exhibit “A-2”. Exhibit “A-2” is attached hereto and is added to the Master Agreement.

4. Compensation. The compensation for services performed pursuant to this Amendment No. 2 shall not exceed EIGHTY-SIX THOUSAND DOLLARS ($86,000), thereby the total not to exceed compensation of the Master Agreement to the amount of

ONE HUNDRED EIGHTY-TWO THOUSAND TWO HUNDRED FIFTY DOLLARS ($182,250). Work shall be performed at the rates set forth in the Pricing Schedule in Exhibit “A-2” attached hereto and added to the Master Agreement.

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55600.00100\33763078.1

5. Full Force. Except as amended by this Amendment No. 2, all provisions of the Master Agreement, including without limitation the indemnity and insurance provisions, shall remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 2.

6. Electronic Transmission. A manually signed copy of this Amendment No. 2 which is transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Amendment No. 2 for all purposes. This Amendment No. 2 may be signed using an electronic signature.

7. Counterparts. This Amendment No. 2 may be signed in counterparts, each of which shall constitute an original.
[SIGNATURES ON FOLLOWING PAGE]
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55600.00100\33763078.1

SIGNATURE PAGE FOR
AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICE AGREEMENT

WITH RENNE PUBLIC POLICY GROUP (RPPG)
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 2 on the Effective Date first herein above written.

CITY OF SAN BERNARDINO
APPROVED BY:

Charles McNeely
Interim City Manager
ATTESTED BY:

Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

RENNE PUBLIC LAW GROUP, DBA

RENNE PUBLIC POLICY GROUP
Signature
Johnathan V. Holtzman
Name
Founding Partner
Title
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55600.00100\33763078.1
EXHIBIT A-2

SCOPE OF SERVICES/PRICING SCHEDULE
The consultant will provide an all-inclusive service offering with no limit on the number of grant submissions for a monthly retainer fee structure based on the monthly rate specified within “Exhibit A-2.” RPPG will be available upon request for meetings with staff, Mayor and City Council, strategic planning, capacity building activities, and on-call grant research.

The Grant Resource Development Services will provide prompt professional services, on an as needed basis for all assigned projects. The consultant will provide services in accordance with the Implementation Plan below:

SCOPE OF SERVICES
July 1, 2023 – June 30, 2024
# Activity Duration/Frequency
1 Provide Grant Writing, Research, and Project Management services to the City of San Bernardino.

Continuous
2a Notification of funding opportunities relevant to the City’s priorities and needs.

Continuous
2b Review of funding opportunities upon staff request. Continuous 3 Send monthly Grant Activities Report to the City’s
designated point(s) of contact.

The first week of each month
4 Attending monthly meetings with the City’s designated point(s) of contact to track progress on grant-seeking
activities and review upcoming opportunities.
1 hour, recurring monthly
5 Send Annual Report to the City’s designated point(s) of contact.

Annually, in December of each
contract year
6* Schedule and provide capacity building training sessions for City staff (Maximum three times per session per year).

Upon Request*

PRICING SCHEDULE
July 1, 2023 – June 30, 2024
The consultant will provide an all-inclusive service offering with no limit on the number of grant submissions, strategic planning, capacity building activities, and on-call grant research for a monthly retainer fee of $6,500.

Training Costs
Under Option 6, the Grant Literacy, Grant Writing, and Grant Management trainings will be billed as an additional charge to the City. Each training will be billed at a rate of $1,250 per session, with a cap of three offerings per course (maximum cost of $7,500 annually).

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55600.00100\33763078.1
If the City requests the consultant travel to in-person meetings and events, the City will reimburse the consultant for the cost of travel, in accordance with the City’s travel policy.

Mileage reimbursement will be based on the 2023 standard mileage rate set by the Internal Revenue Service.

Per the City’s Travel Authority Policy, Direct Vendor Payments:
“Are made by the city to an organization to pay for specific costs related to a trip. These are usually registration fees, lodging, or airfare and can be paid through accounts payable or through the use of a City P-Card.”
Pricing Table
Description Unit of Measure Price
All-Inclusive Service Monthly Retainer $6,500
Estimated Total Monthly Retainer fees for 12 months
(July 2023 – June 2024)
$78,000
Training Per Course $1,250
Trainings are offered as requested. Each training will be billed at a rate of $1,250 per session, with a cap of three offerings per course (Maximum cost of $7,500 annually for the training series). $7,500
Mileage Reimbursement
(2023 IRS Mileage Rate)
Per mile driven for business use
*For in-person meetings and events
$0.65.5
Estimated total reimbursement for travel to meetings and events $500 Total Estimated Cost: $86,000
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AMENDMENT NO. 1 TO

PROFESSIONAL SERVICE AGREEMENT

WITH RENNE PUBLIC POLICY GROUP (RPPG)
This Amendment No. 1 to the Professional Services Agreement for Grant Development Services is made and entered into as of December 2, 2022 (“Effective Date”) by and between the City of San Bernardino, a charter city and municipal corporation (“City”) and Renne Public Law Group, a California Limited Liability Partnership, D/B/A Renne Public Policy Group (“Consultant”). City and Consultant are hereinafter sometimes referred to individually as a “Party” and collectively as “Parties.”

RECITALS
A. WHEREAS, the City and the Consultant have entered into an agreement, dated May 9, 2022, for the purpose of providing grant development services (the “Master Agreement”)
B. WHEREAS, the Parties now desire to amend the Master Agreement in order to extend the term of the Master Agreement for an additional term of seven (7) months, provide for additional services, and to include additional funds for the performance of the services in accordance with the compensation provisions of the Master Agreement.

NOW, THEREFORE, in consideration of the above recitals and the mutual covenants, conditions, and promises contained in this Amendment No. 1 and the Master Agreement, the Parties mutually agree as follows:

AGREEMENT

1. Incorporation of Recitals. The recitals listed above are true and correct and are hereby incorporated herein by this reference.

2. Term. The term of the Master Agreement shall be extended for an additional term of seven (7) months through June 30, 2023, unless earlier terminated.

3. Services. The Services, as that term is defined in the Master Agreement, shall be amended to include additional services as more particularly described in Exhibit “A-1” , attached hereto and incorporated herein by this reference.

4. Compensation. The compensation for services performed pursuant to this Amendment No. 1 shall not exceed FIFTY-SEVEN THOUSAND TWO HUNDRED FIFTY DOLLARS ($57,250), thereby increasing the total not to exceed compensation of the Master Agreement to the amount of NINETY-SIX THOUSAND TWO HUNDRED FIFTY DOLLARS ($96,250). Work shall be performed at the rates set forth in the Pricing Schedule in Exhibit “A-1”.

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5. Full Force. Except as amended by this Amendment No. 1, all provisions of the Master Agreement, including without limitation the indemnity and insurance provisions, shall remain in full force and effect and shall govern the actions of the Parties under this Amendment No. 1.

6. Electronic Transmission. A manually signed copy of this Amendment No. 1 which is transmitted by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original executed copy of this Amendment No. 1 for all purposes. This Amendment No. 1 may be signed using an electronic signature.

7. Counterparts. This Amendment No. 1 may be signed in counterparts, each of which shall constitute an original.
[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR
AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICE AGREEMENT

WITH RENNE PUBLIC POLICY GROUP (RPPG)
IN WITNESS WHEREOF, the Parties hereto have executed this Amendment No. 1 on the Effective Date first herein above written.

CITY OF SAN BERNARDINO
APPROVED BY:

Robert D. Field
City Manager
ATTESTED BY:

Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

RENNE PUBLIC LAW GROUP, D/B/A

RENNE PUBLIC POLICY GROUP
Signature
Johnathan V. Holtzman
Name
Founding Partner
Title
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EXHIBIT A-1

SCOPE OF SERVICES/PRICING SCHEDULE
The Consultant will provide an all-inclusive service offering with no limit on the number of grant submissions for a monthly retainer fee structure based on the monthly rate specified within “Exhibit A-1.” RPPG will be available upon request for meetings with staff, Mayor and City Council, strategic planning, capacity building activities, and on-call grant research.

RPPG will provide prompt professional services, on an as needed basis for all assigned projects. The Consultant will provide services in accordance with the Scope of Services below:

SCOPE OF SERVICES
December 2, 2022 – June 30, 2023
# Activity Duration/Frequency
1 Provide Grant Writing, Research, and Project Management services to the City of San Bernardino.

Continuous
2a Notification of funding opportunities relevant to the City’s priorities and needs.

Continuous
2b Review of funding opportunities upon staff request. Continuous 3 Schedule “Deep Dive” meetings with department heads to assess funding gaps and service needs. Notes will be
compiled and shared with the City’s designated point(s) of contact for this contract. This information gathering phase will also include collecting data from staff to analyze past performance on grant opportunities.

Annually
4 Develop Analysis of Past Grant Performance. Upon completion of Activity #3, completed priorto December 2022.
5 Develop Grant Funding Priorities and Multi-Year Strategy. 2 – 3 weeks, upon completion of Activity #4
6 Schedule follow-up meeting with designated City staff to review the Analysis of Past Grant Performance and the
Grant Funding Priorities and Multi-Year Strategy
documents.

Upon completion of Activity #5
7 Send monthly Grant Activities Report to the City’s
designated point(s) of contact.

The first week of each month
8 Attending monthly meetings with the City’s designated point(s) of contact to track progress on grant-seeking
activities and review upcoming opportunities.
1 hour, recurring monthly
9 Schedule and provide capacity building training sessions for City staff (up to three times per session per year).

Continuously throughout the year,
upon request
10 Send Annual Report to the City’s designated point(s) of contact.

Annually, in December of each
contract year
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PRICING SCHEDULE
December 2, 2022 – June 30, 2023
The Consultant will provide an all-inclusive service offering with no limit on the number of grant submissions, strategic planning, capacity building activities, and on-call grant research for a monthly retainer fee of $6,500.

Training Costs
Under Option #2 and Option #3, the Grant Literacy, Grant Writing, and Grant Management trainings will be billed as an additional charge to the City. Each training will be billed at a rate of $1,250 per session, with a cap of three offerings per course (maximum cost of $11,250 annually).

If the City requests the Consultant travel to in-person meetings and events, the City will reimburse the consultant for the cost of travel, in accordance with the City’s travel policy.

Mileage reimbursement will be based on the 2022 standard mileage rate set by the Internal Revenue Service.

Per the City’s Travel Authority Policy, Direct Vendor Payments:
“Are made by the City to an organization to pay for specific costs related to a trip. These are usually registration fees, lodging, or airfare and can be paid through accounts payable or through the use of a City P-Card.”
Pricing Table
Description Unit of Measure Price
All-Inclusive Service Monthly Retainer $6,500.00
Estimated Total Monthly Retainer fees for 7 months
(December 2022 – June 2023)
$45,500.00
Training Per Course $1,250.00
Trainings are offered as requested. Each training will be billed at a rate of $1,250 per session, with a cap of three offerings per course (Maximum cost of $11,250 annually for the training series). $11,250.00
Mileage Reimbursement
(2022 IRS Mileage Rate)
Per mile driven for business use
*For in-person meetings and events
$0.585
Estimated total reimbursement for travel to meetings and events $500.00 Total Estimated Cost: $57,250.00
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: June 21, 2023
To: Honorable Mayor and City Council Members
From: Charles E. McNeely, Interim City Manager
Department: City Manager's Office
Subject: Approve the Professional Services Agreement with Kosmont Realty for Real Estate Advisory and Due
Diligence Services (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve a Professional Services Agreement with Kosmont Realty for Real Estate Advisory and Due Diligence Services; and

2. Authorize the City Manager, or designee, to execute the Professional Services Agreement with Kosmont Realty; and

3. Authorize the Agency Director of Administrative Services to issue a Purchase Order in an amount not to exceed $90,000 to Kosmont Realty.

Background
The City is seeking real estate advisory services from Kosmont Realty for the future disposition, sale, and development of the property located at 295 Carousel Mall (Carousel Mall Property), as well as other potential City-owned properties. These services would include initial property due diligence, assistance in achieving Surplus Land Act (SLA) compliance, and assistance with any public-private negotiations that may follow. Kosmont Realty is a licensed California brokerage firm with extensive experience in property transactions between public agencies and private parties.

Additionally, Kosmont Realty is a partner with the League of California Cities (of which the City is a member) and they have performed real estate advisory services for Inglewood, Hollywood, Redondo Beach, Norco, and Santa Ana, among others.

On May 17, 2023, the City Council approved a Professional Services Agreement with Kosmont Companies, Kosmont Realty’s parent company, to provide Economic Development Advisory Services related to assessing the feasibility of implementing Packet Pg. 196
Tax Increment Financing (TIF) districts. The scope of work for the agreement with Kosmont Companies included the development of a TIF district boundary, a fiscal impact analysis for implementing a TIF district, and a roadmap for implementing a TIF district and accompanying Public Financing Authority governing board. The real estate advisory and due diligence services that the City is seeking with Kosmont Realty is a separate scope of work with separate deliverables, and as a result, requires a separate Professional Service Agreement.

Discussion
The Professional Services Agreement (“Agreement”) will authorize Kosmont to perform pre-disposition real estate advisory and due diligence services on City-owned properties and has a not-to-exceed contract amount of $90,000. These advisory and due diligence services include evaluating the marketability of City-owned properties, navigating the regulatory requirements of the SLA for those properties, and assisting the City in evaluating the notices of interest that are submitted in response to a Notice of Availability. Specifically, the Agreement’s scope of work includes the following tasks:
• Project Kick Off. Kosmont will meet with City staff and discuss planned future uses and development priorities for the Carousel Mall Property and other City-owned properties.
• Property Due Diligence and Regulatory Compliance. Kosmont will conduct initial pre-sale/disposition property due diligence and evaluate market value/price ranges for City-owned properties in order to identify existing market conditions and constraints affecting their marketability, sale, and development. Additionally, Kosmont will work with the City Attorney’s office regarding the regulatory requirements for the sale and disposition of the Carousel Mall Property and other City-owned properties.
• City Council Presentation. Kosmont can provide and/or assist the City with a presentation to the City Council. The presentation would provide the key findings of the preliminary due diligence efforts, an overview of the SLA, and its applicability to City-owned projects. Additionally, Kosmont will provide potential strategic recommendations on the future sale and disposition of City-owned properties. • Surplus Land Act Process. Kosmont will assist the City with reviewing and/or preparing the Notice of Availability (NOA) for properties subject to the SLA, as well as coordinate and manage the solicitation process required by the SLA. • Public-Private Negotiations. Kosmont will assist with the initial review and evaluation of notices of interest that were submitted in response to the NOA, their proposals and/or offers, and the public/private transaction structuring or negotiations that may be required. Additionally, Kosmont can assist with a presentation to the City Council seeking authorization to proceed with any prospective transaction.

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• Brokerage Services for Surplus Land Act Properties (Optional). Kosmont is able to provide full brokerage services to close the sale of any real estate transaction between the City and a private party. These services are optional and would require a separate agreement. This Agreement does not cover these costs and services.

The Agreement with Kosmont is being brought forward for the Mayor and City Council’s approval in accordance with Section 3.04.010 D.3. of the City’s Municipal Code (Attachment 2) and Section V (e) of the City’s Purchasing Policy (Attachment 3). As outlined in both the Municipal Code and Purchasing Policy, a purchase that is otherwise approved by the action of the Mayor and City Council in a public meeting is exempt from the City’s Purchasing Policy.
2021-2025 Strategic Targets and Goals
The Professional Services Agreement with Kosmont Companies relates to Key Target No 1b: Continue to seek opportunities to secure long-term revenue sources.

Fiscal Impact
This no General Fund impact associated with this action. Sufficient funding already exists in the Professional Contractual Services budget for the City Manager’s Office.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California:

1. Approve a Professional Services Agreement with Kosmont Realty for Real Estate Advisory and Due Diligence Services; and

2. Authorize the City Manager, or designee, to execute the Professional Services Agreement with Kosmont Realty; and

3. Authorize the Agency Director of Administrative Services to issue a Purchase Order in an amount not to exceed $90,000 to Kosmont Realty.

Attachments
Attachment 1 – Professional Services Agreement
Attachment 2 – Municipal Code Chapter 3.04 Purchasing System Attachment 3 – Purchasing Policy
Ward:

All Wards
Synopsis of Previous Council Actions:

May 17, 2023 Mayor and City Council approved a Professional Services Agreement with Kosmont Companies for Economic
Development Advisory Services.

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1 PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF SAN BERNARDINO

AND KOSMONT REAL ESTATE SERVICES D/B/A KOSMONT REALTY
This Agreement is made and entered into as of June 21, 2023 by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, CA 92401 (“City” or the “Client”), and KOSMONT REAL ESTATE SERVICES, a CALIFORNIA CORPORATION, DOING BUSINESS AS KOSMONT REALTY with its principal place of business at 2301 Rosecrans Avenue, Suite 4140, El Segundo, CA 90245 (hereinafter referred to as “Consultant”). City and Consultant are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.”

RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:

Pre-Disposition Real Estate Advisory/Due Diligence Services (hereinafter referred to as “the Project”).

B. Consultant is duly licensed and has the necessary qualifications to provide such services.

C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

AGREEMENT

1. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference.

2. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.”

3. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement.

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2 4. Compensation.
a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “A.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $90,000. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses.

Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction.

City shall pay Consultant’s invoice within thirty (30) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices.

5. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.

6. Term. This Agreement shall commence on the Effective Date and continue through June 21, 2024, unless the Agreement is previously terminated as provided for herein (“Term”).

7. Maintenance of Records; Audits.
a. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date.
b. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.

8. Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term.

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3 9. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects the Consultant’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the project site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); and (4) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety. b. Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Delays shall not entitle Consultant to any additional compensation regardless of the Party responsible for the delay.
c. Notwithstanding the foregoing, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement.

10. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements.
b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies.
c. If applicable, Consultant is responsible for all costs of clean up and/or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.

11. Standard of Care. Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. Consultant’s performance shall conform in all material respects to the requirements of the Scope of Work.

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4 12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of interest with the City.

13. City Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City’s Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business.

14. Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.

15. Independent Consultant. Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. Any personnel performing the work governed by this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance under this Agreement and as required by law.

Consultant shall be responsible for all reports and obligations respecting such personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, and workers’ compensation insurance.

16. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Additional Insured
The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Consultant’s and its subconsultants’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents.

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5 b. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City.
(ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:

Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent.
(iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX)
exclusion deleted
(7) Contractual Liability with respect to this Contract (8) Broad Form Property Damage
(9) Independent Consultants Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
(v) The policy shall give City, its elected and appointed officials, officers, employees, agents, and City-designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
(vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured.
c. Automobile Liability
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6 (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
(iii) The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. d. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.
(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. e. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend.

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7 f. Privacy/Network Security (Cyber)
At all times during the performance of the work under this Agreement, the Consultant shall maintain privacy/network security insurance for: (1) privacy breaches, (2) system breaches, (3) denial or loss of service, and the (4) introduction, implantation or spread of malicious software code, in a form and with insurance companies acceptable to the City.
g. Reserved.
h. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:

Combined Single Limit
Commercial General Liability $2,000,000 per occurrence/$4,000,000 aggregate for bodily injury, personal
injury, and property damage
Automobile Liability $1,000,000 per occurrence for bodily injury and property damage
Employer’s Liability $1,000,000 per occurrence
Professional Liability $1,000,000 per claim and aggregate (errors and omissions)
Cyber Liability $500,000 per occurrence and aggregate
(ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement.
i. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Packet Pg. 205
8 Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance.
j. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.

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9 k. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or
companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
l. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including, but not limited to, the provisions concerning indemnification. (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. m. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.

17. Indemnification.
a. To the fullest extent permitted by law, Consultant shall defend (with Packet Pg. 207
10 counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project, or this Agreement, including the payment of damages, expert witness fees, attorneys’ fees and other related costs and expenses. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement for a period not to exceed four (4) years.

18. California Labor Code Requirements. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1).

If the Services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements.

19. Verification of Employment Eligibility. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to Packet Pg. 208
11 time, and shall require all subconsultants and sub-subconsultants to comply with the same.

20. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California.

21. Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days’ written notice to Consultant.

In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.

22. Attorneys’ Fees. In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney’s Office in enforcing this Agreement on behalf of the City shall be considered as “attorneys’ fees” for the purposes of this Agreement.

23. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant’s professional services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the Packet Pg. 209
12 matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction.

24. Prohibited Employment. Consultant shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect.

25. Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein.

26. Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.

27. Organization. Consultant shall assign Joseph Dieguez as Project Manager.

The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.

28. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above.

29. Notice. Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the following addresses and shall be effective upon receipt thereof:

CITY:

City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: City Manager
With Copy To:

CONSULTANT:

Kosmont Realty
1601 N. Sepulveda Blvd., #382
Manhattan Beach, CA 90266
ATTN: Larry J. Kosmont, CRE, Chairman &
CEO
City of San Bernardino
Vanir Tower, 290 North D Street
San Bernardino, CA 92401
Attn: City Attorney

30. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.

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13 31. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such nondiscrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

32. Entire Agreement. This Agreement, including exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises, or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement.

33. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect.

34. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.

35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance.

No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver.

36. Time of Essence. Time is of the essence for each and every provision of this Agreement.

37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.

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14 38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement.

39. City’s Right to Employ Other Consultants. City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.

40. Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

41. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single Agreement.

42. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement.

43. Electronic Signature. Each Party acknowledges and agrees that this Agreement may be executed by electronic or digital signature, which shall be considered as an original signature for all purposes and shall have the same force and effect as an original signature.

44. Disclaimer. Consultant's financial analysis activities and work product, which may include but is not limited to pro forma analysis and tax projections, are projections only. Actual results may differ materially from those expressed in the analysis performed by Consultant due to the integrity of data received, market conditions, economic events and conditions, and a variety of factors that could materially affect the data and conclusions. City's reliance on Consultant's analysis must consider the foregoing.

Consultant services outlined and described herein are advisory services only. Any decisions or actions taken or not taken by City and affiliates, are deemed to be based on City's understanding and by execution of this Agreement, acknowledgement that Consultant's services are advisory only and as such, cannot be relied on as to the results, Packet Pg. 212
15 performance and conclusions of any investment or project that City may or may not undertake as related to the services provided including any verbal or written communications by and between the City and Consultant.

City acknowledges that Consultant's use of work product is limited to the purposes contemplated within this Agreement. Consultant makes no representation of the work product's application to, or suitability for use in, circumstances not contemplated by the scope of work under this Agreement.
[SIGNATURES ON FOLLOWING PAGE]
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16 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF SAN BERNARDINO

AND KOSMONT REAL ESTATE SERVICES D/B/A KOSMONT REALTY
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

CITY OF SAN BERNARDINO
APPROVED BY:

Charles E. McNeely
Interim City Manager
ATTESTED BY:

Genoveva Rocha, CMC
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP
City Attorney

CONSULTANT

KOSMONT REAL ESTATE SERVICES

D/B/A KOSMONT REALTY
APPROVED BY:

Larry J. Kosmont, CRE
CEO
ATTESTED BY:

Larry J. Kosmont
Secretary
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17 EXHIBIT A

SCOPE OF SERVICES/SCHEDULE/COMPENSATION

1. SCOPE OF SERVICES
Approach to Scope of Services: The prospective assignment and consulting services that Kosmont Realty (“KR” or “Consultant”) will provide will be of a relatively limited scope and duration, and advisory in nature. KR will be making recommendations only, which advise the Client, including its elected officials, appointed officials, and staff, which they can accept or reject. None of Kosmont's staff will act in a capacity as an elected official, nor appointed official, nor as staff, nor as serving in a "designated" position.

Task 1: Project Kick Off
To initiate the assignment, KR will meet with the Client to discuss planned future uses and/or development/disposition priorities for the Property and/or other City-owned properties, available market/property specific information (e.g., appraisals, market studies, zoning information, agreements), and status of activities to date and anticipated timing.

Task 2: Initial Pre-Sale/Disposition Property Due Diligence and Regulatory Compliance Activities
KR will conduct initial pre-sale/disposition property due diligence to identify existing market conditions and constraints affecting the potential marketability, sale, and development (e.g., zoning, adjacent uses, site configuration, environmental condition) as well as evaluate market value/pricing ranges, potential strategic options/approaches to productively advance the future sale and disposition and/or development of the Property and/or other City-owned properties (as mutually agreed upon between Client and KR).

KR will also work, in conjunction with the City Attorney’s office, to consider potential regulatory requirements in connection with the sale and disposition of the Property and/or other City-owned properties (as mutually agreed upon between Client and KR), particularly as it pertains to engagement with HCD to satisfy compliance with the SLA and/or other legislative requirements as may be appropriate/required.

Task 3: City Council Meeting
Based on Task 1 & 2, Kosmont can provide and assist the City with a presentation (virtual) to the City Council (as may be required) that will seek to provide the key findings from Consultant’s preliminary due diligence efforts, an overview of the SLA and applicability to the subject Property and/or other City-owned properties (as mutually agreed upon between Client and KR), as well as a potential strategic recommendations on the future sale and disposition.

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18 Task 4: Surplus Land Act Process – Declaration & N.O.A.

If required, KR is available to assist with the City with review and/or preparation of the Notice of Availability (“NOA”) as well as coordinate and manage the solicitation process required by the SLA for the subject Property and/or other City-owned properties (as mutually agreed upon between Client and KR), which will require a 60-day noticing period for respondents.

Task 5: Respondent Due Diligence/Public-Private Negotiations As may be required, the SLA requires that the Client negotiate in good faith with respondents that submitted a notice of interest for a period of 90 days. KR can assist with the initial review and evaluation of current and/or future notices of interest, proposals/offers submitted, and/or public-private transaction structuring/negotiations as may be required with respondents for the sale/disposition of the Property and/or other City-owned properties (as mutually agreed upon between Client and KR).

KR can also assist the Client with a presentation to the City Council (“City Council”) that will seek authorization to proceed with any prospective transactions (as mutually agreed upon between Client and KR).

Optional Task 6: Real Estate Brokerage Services /Surplus Land Act Properties In compliance with and pursuant to Department of Real Estate (DRE) licensing requirements, Kosmont Real Estate Services, dba Kosmont Realty (“KR”), is available to assist the Client with real estate brokerage services. KR is a full-service real estate brokerage licensed in the State of California (License # 02058445). KR will be paid for brokerage related services upon the close of any sales transaction for the Property in accordance with an approved Exclusive Authorization to Sell: assistance with structuring and negotiation of purchase agreement documentation (e.g. price and terms); coordination with selected title and escrow company related to activities for the potential transactions to effectuate the sale(s); coordination with appraiser (as may be required); and/or other transaction based activities as may be required to close the various transaction(s) (as mutually agreed upon between KR and Client).

2. SCHEDULE AND REQUIRED DATA
Consultant is prepared to commence work upon receipt of executed Agreement. Client will provide KR with all existing project data including appraisals, property specific data, market data, and/or other relevant data deemed appropriate by KR.

3. COMPENSATION
Compensation for Tasks 1 through 5 is estimated at $85,000 for professional services (hourly) fees at KR’s billing rates as shown on Attachment A. Future increases in budget will require approval by Client in advance. Budget may be increased by Client at any time.

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19 Compensation for Optional Task 6 (Real Estate Brokerage Services) shall require Client approval of an Exclusive Authorization to Sell Agreement by and between KR and the Client, which would include an Exhibit A: Schedule of Commissions.

KR anticipates a single consolidated round of Client comments and revisions on draft work product before Kosmont provides a final version of work product. If necessary, additional rounds of comments and revisions can be accommodated on an hourly basis.

KR’s attendance or participation at any publicly noticed meeting, whether such participation is in person, digital, video and/or telephonic (e.g., City Council, Planning Commission, Public Agency Board, other), as requested by Client is in addition to compensation for Tasks 1 through 5 and will be billed at the professional services (hourly) fees as shown on Attachment A.

Services will be invoiced monthly at KR’s standard billing rates, as shown on Attachment A. In addition to professional services (hourly) fees, invoices will include reimbursement for out-of-pocket expenses such as travel and mileage (provided that there shall be no overnight travel without the Client’s prior approval and that mileage shall be reimbursed at the current IRS mileage reimbursement rate), professional printing, conference calls, and delivery charges for messenger and overnight packages at actual cost. Unless otherwise agreed to in advance, out-of-area travel, if any, requires advance funding of flights and hotel accommodations.

KR will also include in each invoice an administrative services fee to cover in-house copy, fax, telephone and postage costs equal to four percent (4.0%) of KR’s monthly professional service fees incurred. Any unpaid invoices after 30 days shall accrue interest at the rate of 10% per annum.

For the convenience of Kosmont's clients, we offer a secure credit card payment service.

The credit card payment link is: httos://kosmont.paidvet.com and there are two ways to make a secure credit card payment:

1. Fill in the "Make a Payment" form when you go to the link (httqs://kosmont.paidvet.com), or

2. Call Kosmont Companies' accounting desk (Ms. Reny Sultan; (424) 297- 1072) to make a credit card payment
DISCLOSURE: Compensation for possible future transaction-based services or brokerage services.

The following is being provided solely as an advance disclosure of possible real estate brokerage and finance services and potential compensation for such services. This disclosure is not intended to commit the Client.

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20 When assignments involve real estate/property brokerage services, such transactionbased services are typically provided by Kosmont Real Estate Services, Inc. dba Kosmont Realty ("KR") is licensed by the State of California Department of Real Estate (License# 02058445).

Compensation to KR is typically paid through commissions for property sale transactions, lease transactions and success/broker fees. KR also provides Broker Opinions of Value ("BOV") services on a fixed fee basis.

When assignments involve public finance services on behalf of a public agency, such municipal advisory services are provided by Kosmont Financial Services (KFS). KFS is an independent Registered Municipal Advisor with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board.

SEC registration does not constitute an endorsement of the firm by the Commission or state securities regulators.

When assignments involve advisory services provided by Kosmont & Associates, Inc., dba Kosmont Companies (“KC”), a separate proposal and hourly rate sheet will be provided.

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City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 1 of 99

PURCHASING GUIDELINES AND

PROCEDURES
Purchasing Division
Precious Carter: Purchasing Division Manager
Contact: [email protected]
Effective Date: April 18, 2023
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City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 2 of 99 Table of Contents
SECTION 1: OVERVIEW
Introduction…………………………………………………………………………………………………………………3 Role of the Purchasing Department…………………………………………………………………………….3 Purchasing Values and Principles………………………………………………………………………………..4 Purpose of the Purchasing Manual……………………………………………………………………………..4 Goal………………………………………………………………………………………………………………………….4 -5 Why Policies and Procedures Matter.………………………………………………………………………….5 Code of Ethics………………………………………………………………………………………………………….6 -7 Conflict of Interest………………………………………………………………………………………………………7 Gratuities…………………………………………………………………………………………………………………….7 Definitions and Terms………………………………………………………………………………………….7 – 16 SECTION 2: POLICIES
Policy Definition…………………………………………………………………………………………………………16 The Purpose of Policies………………………………………………………………………………………………16 What Makes a Good Policy………………………………………………………………………………………..16 Purchasing Policy………………………………………………………………………………………………..17 – 41 Purchasing Card Policy (P-Card)………………………………………………………………………….42 – 52 Travel Authority and Expense Reimbursement…………………………………………………..53 - 61 SECTION 3: PROCEDURES
Procedure Definition………………………………………………………………………………………………….62 The Purpose of Procedures…………………………………………………………………………………………62 What Makes a Good Procedure………………………………………………………………………………….62 Exceptions to the Bidding Process……………………………………………………………………….62 - 63 The Purchasing Process………………………………………………………………………………………………64 Telephone Quotes…………………………………………………………………………………..………………….65 Example & Details of a simple quote………………………………………………………………………….66 Response Time from Purchasing Agents…………………………………………………………………….67 Purchasing Dept. Led Bids………………………………………………………………………………….68 - 74 Protest Form and Content…………………………………………………………………………………………..75 Vendor Setup Instructions…………………………………………………………………………………………..76 Purchase Orders (POs)………………………………………………………………………………………………..76 PO Change Order Process……………………………………………………………………………………………77 Furniture Order Process……………………………………………………………………………………………..78 Staples Office Supplies……………………………………………………………………………………………….78 Business Registration…………………………………..…………………………………………………………….78 City of San Bernardino Contract Processing Guidelines………………………………………79 – 87 Justification of Single/Sole Source Request…………………………………………………………88 - 89 City Clerk DocuSign Process…………………………..……………………………………………………….….90 How to Calculate Cost Avoidance/Cost Savings………………………………………………….91 – 92 Certificate of Insurance (COI)………………………………………………………………………………93 - 99 Packet Pg. 227
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 3 of 99 SECTION 1: OVERVIEW
Introduction
The Purchasing Division supports the City Manager, Mayor and City Council, City Departments and Agencies of the City of San Bernardino. The Purchasing Division provides quality goods and services in a timely manner and at the best value for the City.

The Role of the Purchasing Division
A Purchasing Division, also called a procurement division, supports operations by serving as the primary buyer of goods and services in a private sector company, government agency, educational institution, or any other type of organization.

The Purchasing Division serves as a compliance division for the purchasing needs of the City.

The Purchasing Division serves the needs of internal customers by procuring goods and services in a timely manner. The purchasing staff serves the organization’s financial wellness by seeking out and purchasing goods and services at the lowest price and best value.

The Purchasing Division offers procurement services, administers contracts, ensures contract compliance, and manages vendor relationships. Purchasing involves the acquisition of equipment, furnishings, supplies, maintenance services, construction services and contractual services. Purchasing assists departments and/or leads with preparing bid specifications; initiation formal quotes, proposals, and bids, conducting public bid openings, evaluating bids, awarding, and administrating contracts until the final completion or termination of a contract.

The values of the Purchasing Division include Customer Services, Partnership, Innovation, Ethical and Fair Conduct, Professional Values and Transparency. These values assist the Division in fulfilling departments’ obligations while upholding legal requirements and fiduciary responsibilities to the residents of the City of San Bernardino.

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City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 4 of 99 Purchasing Values and Principles
• Transparency: Being Open and Honest
• Accountability: taking responsibility of our work
• Ethics: The rules, principles, and standards of deciding what is morally right or wrong when working.
• Impartiality: Acting fairly and equitable in all our dealings These values and principles influence how suppliers, contractors and vendors interact with the City and they can affect the way in which the press, public, and other government partners view the City. The Purchasing Division acts as a neutral party in purchasing activities. The Purchasing Division doesn’t have an interest in who is awarded a bid. The City’s Purchasing Division presents the facts that are submitted within bid proposals.

Purpose of the Purchasing Manual
The purpose of the Purchasing Guideline and Procedure Manual is to streamline and detail all Purchasing procedures and guidelines. This Manual will assist all departments in following proper procurement procedures and how to have all proper approvals and signature authorities for procuring materials, services, and equipment.

Goal
All purchasing activities are to be conducted in an ethical manner. Department Directors, Division Managers, and all staff members must be aware of their ethical duty as servants of the public trust while spending public funds. The Purchasing Division will provide a purchasing process that implements and maintains the requirements of City Municipal Code 3.04.070.

A. The Purchasing Division has established a program for all Departments to conduct competitive bidding in the open market that will obtain the greatest advantage for the City of San Bernardino.

B. The Purchasing Division has established purchasing processes utilizing ethical standards.

C. The bidding processes established by the Purchasing Division attempts to obtain high quality goods and services at reasonable costs.

TRANSPARENCY ACCOUNTABILITY ETHICS IMPARTIALITY
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City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 5 of 99 D. In most instances purchases will be awarded to the lowest most responsible and responsive bidder based on the specifications of the sourcing effort. All services and materials that are released to the public for bidding purposes will adhere to the City of San Bernardino requirements.

E. The established bidding/purchasing processes promote and maintain good relationships with vendors. All City of San Bernardino staff shall conduct themselves in a professional manner, while promoting equal opportunity, fairness and courtesy in vendor relations.

Why Do Policies and Procedures Matter to the City?
• Together, policies and procedures guide our city and reduce risk of liability. They promote consistency across the organization, both for employees and for customers. • Consistency builds a healthy reputation for our city over time, especially regarding employee touchpoints with customers. Another term for this is branding. Consistency builds and protects the City’s brand. Policies and procedures promote Consistency across our City, which builds and protects our city’s brand over time. • Policies can only positively impact our city if they’re followed. The responsibility is twofold:
o Leadership must communicate policies effectively.
o Employees must follow them.

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City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 6 of 99 Code of Ethics
A. Avoid Unfair Practices: By granting all competitive suppliers’ equal consideration in so far as State, Federal and City regulations require.

B. Conduct business in good faith: Demanding honesty and ethical practices from all participants in the purchasing process.

C. Decline personal gifts or gratuities: from present or potential suppliers since this can influence or appear to influence procurement decisions.

D. Avoid preferential treatment of certain vendors: Favoritism is the presence of bias or partiality for one vendor over another, or actions that may cause this perception.

E. Promote positive supplier/contractor relationships: By providing vendors with courteous, fair, and equal treatment.

F. Avoid controversy: make every reasonable effort to negotiate equitable and mutually agreeable settlements of controversies with supplier(s).

G. Avoid conflicts of interest: avoid involvement in any transaction/activities that could be considered to be a conflict between personal interest and the interests of the City.

H. Know and obey the letter and the spirit of the law: governing the purchasing function and remain alert to the legal ramifications of purchasing decisions.

I. Enhance proficiency: by acquiring and maintaining current technical knowledge and pursuing related educational opportunities and professional growth.

J. Do not engage in auctioning of bids or quotes: The disclosure of one vendor’s price to another to obtain a lower price is illegal. Prices and other information provided in the purchasing process must not be divulged until made public.

K. Do not engage in back door buying or selling: Unofficial, irregular, devious buying or selling, usually resulting from undue efforts to induce preference for a particular vendor with the intent of limiting competition. Also, evasive actions taken by the seller to circumvent the Purchasing Division and/or City rules/regulations by trying to influence or sell directly to the City’s internal user/customer department.

L. Avoid false information: Employees must take care to avoid providing inaccurate information to vendors during a solicitation process and must not conceal relationships with vendors or other inappropriate purchasing activity.

M. Do not help a bidder with a proposal: Coaching or providing solutions to prepare or improve a proposal is unethical.

N. Avoid leveling: A form of fraud in which a contract is promised to a specific vendor, even though a public solicitation is being pursued for the save of appearances by asking other vendors to submit a bid. This form of collusion is illegal and is a form of price fixing. Procurement professionals and other employees who use leveling will be subject to applicable disciplinary processes and any other investigation by law enforcement agencies.

O. Proper award of contracts and/or purchase orders: Awards should be made to the vendor who receives the highest rating meeting the solicitation requirements (best value). Formal solicitations should state the criteria upon which the evaluation will be based. Criteria may include ability to meet the City’s needs, past performance, references, warranties, services costs, or other measurable specifications that will Packet Pg. 231
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 7 of 99 eliminate the appearance of an arbitrary or capricious award. Evaluations must be conducted in accordance with criteria established in the solicitation document.

Conflict of Interest
No employee or officer shall purchase goods or services for the City if they have a financial interest in connection to the purchase. No officer or employee shall participate in procurement or make evaluations concerning the purchase of a good or service if they have a relationship or a financial interest concerning the individual or Business seeking a contract from the City. This action would violate Government Code 1090.

Gratuities
All staff and employees are prohibited from accepting gifts, money, kickbacks, rebated goods, or anything that may be construed as an unlawful consideration from individuals or businesses currently engaged in a contract or may be awarded a contract in the future. The offer of such gratuity will result in declaring the individual or business an irresponsible bidder and will prevent the individual or business from bidding.
***PLEASE NOTE*** It is important to keep in mind that, even when no unethical behavior is evident, the appearance of unethical behavior must be avoided. Such behavior erodes public trust and the reputation of the employees, their department, and the city.

Definitions and Terms:

Amendment: An agreed addition to, deletion from, correction, or modification of a document or contract
Annual Purchase Order:
• Annual purchase orders are used for repetitively purchasing from the same vendor for items that are under the $10,000 threshold.
• If an item is purchased that is $10,001 and $40,000, the annual purchase order cannot be used. Three quotes must be obtained.
• The proper procurement process must be followed while using an annual purchase order.

Best and Final Offer (BFOA): This procedure is utilized during the evaluation process after the invitation to negotiate is released and negotiations and presentations have taken place.

Vendors are asked to submit a best and final offer based off this negotiation. Best and final offers, as the name suggest, are a vendor’s final proposal submittal. Typically, best and final offers may include price adjustments, modification to a vendor’s proposed solution and contract terms that differ from standard City contractual language. “Best Value” Procurement Procedure: A procurement method that emphasizes value over price. 2. An assessment of the return that can be achieved over the useful life of the item, e.g., the best combination of quality, service, time, and price.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 8 of 99 For specialized goods, nonprofessional services, and non-public improvement work, the Purchasing Division may approve the use of the “Best Value” method.

The “Best Value” Method takes into consideration the lowest cost, qualified bidder with the quantity and scope needed. This method utilizes the request for proposal solicitation which includes specifications and evaluation criteria and allows the vendor to determine the way in which they will best meet the City’s needs. “Best Value” Procurement must be approved by the Purchasing Division prior to the solicitation of any proposals.

Quality and performance considerations will also be given, as well as price of goods, services, or non-public project implementations.

Criteria for “Best Value” Performance shall include but not be limited to the following:
a. Ability, Capacity, and skill of the vendor to provide the required goods and services of the City within the time period required.
b. Character, integrity, reputation, judgement, experience, and efficiency of the proposer. c. Quality of performance of work performed by the vendor from previous purchases. d. Ability of the proposer to provide future maintenance, repairs parts and services for the use of goods and services.
e. Performance of the vendor under past contracts with the City. f. Possession of required licenses and insurance documents, and endorsements for the City as needed to supply goods and services.

Bid: The response submitted by a bidder to an invitation for Bids (IFB).

Bid Bond: An insurance agreement, accompanied by a monetary commitment, by which a third party (the surety) accepts liability and guarantees that the bidder will not withdraw the bid. • Please Note: The purchasing agent may require a bid bond to accompany a bid. A bid bond should be no more than 10% of the total bid. The City Manager shall establish standards for determining under what circumstances a bid bond is required. City Council and the City Manager have the authority to require a performance bond if they find it necessary in order to protect the City and its interest.

Certificate of Insurance (COI): is a document from an insurer to show you have business insurance. This is also called a certificate of liability insurance or proof of insurance. With a COI, your clients can make sure you have the right insurance before they start working with you. • Please Note: Sample COI located at the end of Purchasing Guidelines and Procedures.

Change Order: A written modification or amendment to a contract. You can also look at phrases such as: Amendment, Modification, Authorized Deviation, Change Order Authority, Contract Modification.

Change Order Authority: The power of right of a public entity to unilaterally modify a contract without the express consent of the contractor.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 9 of 99 Commodity: Something useful that can be turned into a commercial advantage; anything that can be purchased, processed, or resold. Examples – paper, furniture, fasteners.

Completion or Performance Bond: An instrument executed, subsequent to award, by successful bidder that protects that public entity from loss due to the bidder’s inability to complete the contract as agreed. A risk mechanism that secures the fulfillment of all contract requirements. May be referred to as a completion bond.

Consultant: A person or company that possesses unique qualifications that allow them to perform specialized advisory services usually for a fee.

Consultant Services Agreement (CSA) or Vendor Service Agreement (VSA): A written contract between the City and a vendor, stating all terms and conditions of a proposed transaction or service.

Contract: 1. An obligation, such as an accepted offer, between competent parties upon a legal consideration, to do or abstain from doing some act. The essential elements of a contract are an offer and an acceptance of that offer; the capacity of the parties to contract; consideration to support the contract; a mutual identity of consent; legality of purpose; and definiteness. 2. A legally binding promise, enforceable by law. 3. An agreement between parties with binding legal and moral force, usually exchanging goods or services for money or other considerations.

Cost Avoidance: Action that avoids incurring costs in the future, also known as “soft savings” and, therefore, not reflected in financial statements.

Cost Savings: A realized and measurable reduction in material, resource, or labor expense(s) associated with the production and delivery of an item or service. Primarily associated in the manufacturing of an item; interchangeably used to indicate a lower price paid by the buyer form what was previously paid.

Cooperative Procurement (Purchasing): 1. The action taken when two or more entities combine their requirements to obtain the advantages of volume purchases, including administrative savings and other benefits. 2. A variety of arrangements, whereby two or more public procurement entities purchase from the same supplier or multiple suppliers using a single Invitation for Bids (IFB) or Request for Proposals (RFP). Cooperative procurement efforts may result in contracts that other entities may “piggyback.” Department of Industrial Relations (DIR): A department of the State of California, which is a regulatory agency for various functions, including enforceability of SB854, which now requires public works contractors subject to prevailing wage requirements to register annually with the Department of Industrial Relations and pay and annual fee. Beginning effective September 1, 2021, the City of San Bernardino will accept public works bids from only those contractors and subcontractors who have complied with this requirement. Please refer to the DIR website:

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 10 of 99 https://www.dir.ca.gov/Public-Works/Contractor-Registration.html Disadvantage Business Enterprise (DBE): For profit small business concerns where socially and economically disadvantaged individuals own at least a 51% interest and also control management and daily business operations. Usually is certified as a DBE entity in the United States by the government of the State in which it is located.

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 made as the result of an unexpected and urgent request in which health and safety, or the conservation of public resources is at risk. Usually, formal competitive bidding procedures are waived, modified, or simplified. The City’s Municipal Code allows for Emergency Purchases under §3.04.070.

Encumbrance: The appropriation of funds to purchase an item or service. To encumber funds means to set aside or commit funds for specified future expenditure. “Environmentally Preferable” (Per Calrecycle): the Procurement of goods and services that have a reduced impact on human health and the environment compared to competing products serving the same purpose. It is an essential part of the search for high quality products and services at competitive prices.

Formal Bid: A bid that must be submitted in a sealed format and in conformance with a prescribed format to be opened in public at a specified date and time. • This type of format is generally used in the Public Sector for Public Works bid projects, usually called a Request for Bid (RFB)
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.

Informal Bid/Proposal: A competitive bid, price quotation, or proposal for supplies or services that is conveyed by a letter, fax, e-mail, or other manner that does not require a formal sealed bid or proposal, public opening, or other formalities. Generally relegated to requirements that may be considered low value or fall under a stipulated price/cost threshold.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 11 of 99 • Please Note: For the City, most bids conducted in this manner would be considered “Formal” as long as the actual proposal(s) are not viewed until the bid deadline date and time.

Key Performance Indicators (KPIs): Refer to a set of quantifiable measurements used to gauge a company’s overall long-term performance. KPIs specifically help determine a company’s strategic, financial, and operational achievements, especially compared to those of other businesses within the same sector.

Local Vendor: According to the City’s Municipal Code §3.04.100 Local Bidders, “local” is defined as having “(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.”
Lowest Responsive and Responsible Bidder: The Bidder who fully complied with all of the bid requirements and whose past performance, reputation, and financial capability is deemed acceptable, and who has offered the most advantageous pricing or cost benefit, based on the criteria stipulated in the bid documents.

Local Vendor Preference: Any formal or informal bid submitted by a local bidder for goods or materials, shall receive a five percent (5%) credit for comparison purposes with other bidders. A five percent (5%) credit for comparison purposes shall be used for bidders of services.

Municipal Code §3.04.100
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.

Penalty Charge: A clause in a contract specifying the sum of money to be paid if the contractor defaults on the terms of the contract, particularly with respect to time.

Penalty Clause: Punitive language inserted in a competitive solicitation that details what action will be taken if the contractor does not perform in a satisfactory manner. (ISM, 2000) Packet Pg. 236
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 12 of 99 Pre-Bid/Pre-Proposal Conference (Meeting): A meeting held by the buyer with potential bidders/proposers prior to the opening of the solicitation for the purpose of answering questions, clarifying any ambiguities, and responding to general issues to establish a common basis for understanding all of the requirements of the solicitation. May result in the issuance of an addendum to all potential providers. In certain situations, a mandatory conference may be advisable.

Pre-Solicitation Conference (Bidders or Suppliers Conference): An informal, typically nonmandatory, meeting inviting comments and suggestions from a representative group of suppliers on the draft of a proposed solicitation; this conference provides useful market analysis information to the buyer; usually used for solicitation involving high technology or complex services.

Prevailing Wage: the average wage paid to similarly employed workers in a specific occupation in the area of intended employment.
o Per www.dir.ca.gov. When the Director of the California Department of Industrial Relations determines that the general prevailing rate of per diem wages for a particular craft, classification, or type of work is uniform throughout an area, the director issues a determination enumerated county by county, but covering the entire area. General determinations are issued twice a year, February 22 and August 22nd.

Price: 1. A value placed on an object or service provided by a seller to a buyer. 2. The money value of a unit of a good, service, or resource. 3. The total amount, in money or other consideration, to be paid or charged for a commodity normally includes all costs (direct labor, overhead, materials) a profit or fee.

Piggy-back (Piggyback Cooperatives Contracts or Government Contracts): A form of intergovernmental cooperative purchasing in which an entity will be extended the pricing and terms of a contract entered into by a larger entity. Generally, a larger entity will competitively award a contract that will include language allowing for other entities to utilize the contract which may be to their advantage in terms of pricing, thereby gaining economies of scale that they normally would not receive if they competed on their own.

Professional Service: A service rendered by member(s) of a recognized profession or possessing a special skill. Such a service is generally acquired to obtain information, advice, training, or direct assistance. See also: Nonprofessional Service.

Public Works (PW): According to Labor Code 1720, construction, alteration, demolition, installation, or repair work done under contract and paid for the whole or in part out of public funds, except work done directly by any public utility company pursuant to order of the Public Utilities Commission or other public authority. For purposes of this paragraph, “construction” Packet Pg. 237
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 13 of 99 includes work performed during the design and preconstruction phases of construction, including, but not limited to, inspection and land surveying work, and work performed during the post construction phases of construction, including, but not limited to, all cleanup work at the jobsite. “Installation” includes, but is not limited to, the assembly and disassembly of modular and/or affixed modular office systems.

Protest: A written objection by an interested party to a solicitation or award of a contract with the intention of receiving a remedial result.

Purchasing Agent: Individual who acts on behalf of any entity, such as a corporation, partnership, or any level of government as that entity conducts business. See also: Law of Agency, Principal, Buyer, General Agent, Special Agent.

Purchase Order: A purchaser’s written document to a supplier formalizing all terms and conditions of a proposed transaction (e.g., description of the requested items, cost of items being purchased, delivery schedule, terms of payment, transportation).

A purchaser’s written document to a supplier formalizing all the terms and conditions of a proposed “single” transaction, such as a description of the requested items, cost of items being purchased, delivery, schedule, terms of payment, and transportation. Purchase orders are only to be made by the Purchasing Division, except in the case of small purchases or in the case of an emergency. No employee is to request the delivery of goods or services without the issuance of a purchase order.
o Please note that a small purchase is a purchase that is less than or equal to $10,000.

Purchase Order (Stand Alone): This type of transaction is not connected to a contract in any way. Stand Alone POs are created for one-time purchases, usually for equipment and materials.

Stand Alone POs have their own terms and conditions. Once signed by the recipient it is a legally binding contract.

Purchase Order (Assigned to a Contract): This type of transaction is connected to a contract.

The terms and conditions along with the expiration date of the contract extend to the Purchase Order. Purchase Orders that are contract specific/related should not be drafted beyond the expiration date of the contract that it is attached to. If the contract is extended, then the PO can be extended. If the contract expires, the PO cannot be extended beyond the expiration date of the contract.

Purchase Requisition (PR): A document created by a requestor authorizing the commencement of purchasing transaction. This typically will include a description of the need and other information that is relative to the transaction. A requisition may be submitted in hard copy or via eProcurement software.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 14 of 99 Quote: An informal purchasing process which solicits pricing information from several sources.

A price quote in general delivers a fixed price for a product or service. It is given to a customer by a supplier and can be either written or verbal. The quoted price is only valid for a certain period of time and can’t be changed once the client accepts it. • What isn’t a price quote:
• A screen print from a vendor’s website.
• A price taken from a newspaper or magazine advertisement. • A price paid from a previous product. Pricing changes over time. It mustn’t be assumed that the price of the product is the same as previously quoted. • A verbal price given without written confirmation and/or follow-up.

Requisition: An internal document by which a using agency sends details of supplies, services, or materials required to the Purchasing Division.

Request for Comments (RFC): A document generated prior to an authorized procurement in order to request feedback from the contracting community or potential Proposers/Bidders, to seek information about a product or service in order to assist in the finalization of technical specifications, design specifications, or a statement of work.

Request for Information (RFI): A non-binding method whereby a jurisdiction publishes via newspaper, internet, or direct mail its need for input from interested parties for an upcoming solicitation. A procurement practice used to obtain comments, feedback, or reactions from potential responders (suppliers, contracts) prior to the issuing of a solicitation. Generally, price or cost is not required. Feedback may include best practices, industry standards, technology issues, etc.

Request for Proposal (RFP): The document used to solicit proposals from potential providers (Proposers) for goods and services. Price is usually not a primary evaluation factor. Provides for the negotiation of all terms, including price, prior to contract award. May include a provision for the negotiation of best of final offers. May be a single or multi-step process. This format of bidding was introduced in the Armed Services Procurement Act of 1962 as wells as by the Competition in Contracting Act of 1984.

Request for Qualification (RFQual): A document that is issued by a procurement entity to obtain statements of the qualifications of potential responders (development teams or consultants) to gauge potential competition in the marketplace, prior to issuing the solicitation.

Request for Quotation (RFQ): Purchasing method generally used for small orders under a certain dollar threshold. A request is sent to suppliers along with a description of the commodity or services needed and the supplier is asked to respond with price and other Packet Pg. 239
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 15 of 99 information by predetermined date. Evaluation and recommendation for award should be based on the quotation that best meets price, quality, delivery, service, past performance, and reliability.

Single Source: A Single Source is a procurement decision whereby purchases are directed to one source because of standardization, warranty, or other factors, even though other competitive sources may be available. A department must demonstrate in writing, to the Purchasing Agent that the purchase can only be obtained from a single source. The Purchasing Agent is satisfied with the price and the terms and conditions negotiated, for single source goods and services greater than $10,000 and less than or equal to $100,000; this will require approval by the Purchasing Agent. Approval for a single source procurement in excess of $100,000 requires approval by the City Council.

Sole Source: Sole Source is used only when there is only one qualified company that has developed a patented or copyright product or service; when the product or service is required immediately due to a pressing emergency; or it is not in the public’s interest to hold a competition. Examples would be (rights to data, copyrights, or patents, proprietary interest, or secret processes) to the manufacturing of the good or service. The word “sole” means only one.

A sole source must meet certain requirements:
a) Is the commodity or good or service the only of its kind? b) The commodity is available from one, and only one source.

Specifications: A precise description of the physical characteristics, quality, or desired outcomes of a commodity to be procured, which a supplier must be able to produce or deliver to be considered for award of a contract.

Splitting Purchases: To divide a purchase into two or more parts in order to avoid the requirements of the Purchasing Policy in Municipal Code 3.04. This action is strictly prohibited by the Code. Municipal Code § 3.04.090: 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.

For example, procurement cards may be used to make single purchases without quotes for up to $10,000. An employee makes three purchases of $9,000 on their p-card for materials for an event, rather than getting bids. Their total spend is $27,000. When the Finance Department later audits p-card charges, they identify these charges as a split purchase that not only violated City Policy and Municipal Code but is illegal.

Surplus: 1. An overstock situation that occurs when the quantity of goods on hand exceeds the quantity of goods needed. The overstocked goods may be returned to the supplier, sold at Packet Pg. 240
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 16 of 99 auction, or disposed of in a method acceptable to the entity. 2. The goods or materials that are obsolete or no longer needed by the agency and are designated for disposal. Surplus becomes available for disposal outside of the entity due to an unforeseen situation that affects the use of the item (for example, chairs or desks that have been replaced with new items). Disposal of surplus is governed by Municipal Code § 3.04.080.

SECTION 2: POLICIES
Policy
A set of general guidelines that are outlined by the City for talking about certain situations/issues.

The Purpose of Policies
To communicate city values, philosophy, and culture. Effective policies also lay the foundation for a healthy work culture. Maybe you’ve seen firsthand how policies influence culture, communicate expectations to employees, and guide day-to-day operations. Also, maybe you’ve seen the adverse effect of neglected policies.

What makes a good policy?
• Clear, concise, and simple language
• Policy explains the rule, not how to implement the rule (That is what Procedures are for and that is what the purchasing manual does.)
• Policies easily accessible by staff at all times.
• Represents a consistent, logical framework.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 17 of 99 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. 2023-020

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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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 18 of 99

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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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 19 of 99 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 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.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 20 of 99 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 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.

Services - either general services, maintenance services, or professional services.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 21 of 99 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
iii. Reviewing the DBE and SBE program including verifying affirmative steps and auditing results
iv. Reviewing contracts before they are submitted for final signatures Packet Pg. 246
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 22 of 99 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 the Assistant City Manager with prior written authorization from the City Manager in the City Manager’s absence. (iii) Purchases over $100,000:

1. Purchases in this category may only be authorized by the Mayor and Packet Pg. 247
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 23 of 99 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.
(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 Packet Pg. 248
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 24 of 99 (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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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 25 of 99 (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
(a) Right to Protest. Prior to making the award, any responsible bidder in connection with Packet Pg. 250
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 26 of 99 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 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, Packet Pg. 251
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 27 of 99 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 subagreements. 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. (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 Packet Pg. 252
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 28 of 99 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 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.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 29 of 99 (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-bycase basis. (iii) Geographical Preference. The City shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed in-state 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 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:

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 30 of 99 (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 micropurchases 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. (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.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 31 of 99 (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 cost-reimbursement 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. 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 price-related factors.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 32 of 99 (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.
(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), Packet Pg. 257
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 33 of 99 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, 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).

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 34 of 99 (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., non-T&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 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 Packet Pg. 259
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 35 of 99 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.

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.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 36 of 99 (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.
(c) Disposing of Surplus. If the Purchasing Division determines that the surplus items are not functionally or economically suitable for further City use, they shall dispose of the items by using a public auction, sealed bids or through negotiated 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 Packet Pg. 261
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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.
(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 Packet Pg. 262
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(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. (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 (Small 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 non-professional 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 Packet Pg. 265
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 41 of 99 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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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 42 of 99 City of San Bernardino Procurement Card (P-Card) Policy (Approved Resolution 2021-213)
Purpose:

To establish a methodology for and to define the appropriate use of the City of San Bernardino’s Procurement Cards provided to authorized personnel to purchase non-restricted goods and/or services for official use by the City of San Bernardino Scope:

This Policy is applicable to all employees and elected officials who are issued a Procurement Card.

Exemption from Scope
This policy shall not apply to employees or elected officials to whom P-Cards are not issued and does not apply to the use of an employee or elected official’s personal credit card(s). The use of personal funds to make purchases on behalf of the City is covered under the City of San Bernardino Expense Reimbursement Policy.

Policy:

3.1 Abbreviations

3.1.1 P-Card: A Procurement Card.

3.1.2 City: City of San Bernardino.

3.1.3 Bank: Financial Institution that manages the City’s P-Card Program.

3.1.4 GL: General Ledger, the official record of all financial transactions made by and on behalf of the City.

3.1.5 MCC: Merchant Category Code

3.2 Definitions

3.2.1 P-Card: A credit card to be utilized in the procurement of authorized nonrestricted goods and/or services for official use by the City.

3.2.2 Vendor: A Company from which the City is purchasing goods and/or services under the provision of this policy.

3.2.3 Merchant Category Code (MCC): Codes by which individual P-Cards can be restricted in their purchasing authority to merchants (vendors) in specific categories.

3.2.4 Cardholder: City personnel who has been issued a P-Card and who is authorized to make purchases in accordance with this policy and in accordance with the City’s Procurement, Purchasing and Contracting Policy.

3.2.5 Reconciler: Departmental Coordinator who collects receipts for P-Card purchases from the Cardholder, codes transactions to the appropriate GL account(s), and releases transactions for approval.

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3.2.6 Approver: Cardholder’s manager or designee who reviews and approves Cardholder’s transactions.

3.2.7 Transaction: A single purchase made with a P-Card

3.2.8 Purchase Limits: Dollar limits assigned to each P-Card consisting of a Single Transaction Limit, a Daily Purchase Limit, and a Monthly Credit Limit.

3.2.9 P-Card Administrator: An individual authorized by the City to manage the P-Card program to include communicating with the Bank, adding and deleting P-Cards, and changing permanent and temporary purchase limits.

4.0 Responsibilities

4.1 The Finance Department, under the direction of the Finance Director, shall be responsible for the implementation and enforcement of this policy.

4.2 All City personnel and elected officials issued a P-Card shall be responsible for the card and its use in accordance with this policy.

1.0 Overview of P-Card Program

1.1 The goal if this program is to provide a more rapid turnaround of requisitions for low dollar goods (less than $5,000) with no credit card fees and to reduce paperwork and handling costs while maintaining good internal control of the disbursement of City funds.

1.2 City personnel and elected officials who have been issued P-Cards may initiate transactions in-person, by telephone, or over the internet within the limits of this policy and in accordance with the City’s Procurement, Purchasing and Contracting Policy.

1.3 The Finance Department with make settlements for P-Card purchases with the Bank.

1.4 Department Directors may request that City personnel be issued a P-Card if it is deemed necessary for their role. The request should recommend purchase limits as well as the default GL account code to which transactions will be charged. Requests should be forwarded to the P-Card Administrator for Finance Department approval.

1.5 Depending on the employee or official receiving the P-Card, the P-Card may be restricted to specific Merchant Category Codes.

1.6 Non-City personnel, temporary/seasonal employees, and interns are not eligible for a P-Card.

1.7 Upon review and approval by the Finance Department, the P-Card Administrator will notify the Bank to issue the P-Card.

1.8 All approved Cardholders must attend a training class on Policy and proper use of the P-Card prior to receiving their card.

1.8.1 The approved Cardholder will be issued a copy of this P-Card Program Policy and the P-Card Procedures Manual and be required to sign an agreement to indicate that the Cardholder understands these policies and procedures.

1.8.2 The Finance Department shall maintain records of all Procurement Card Request Forms.

1.9 Changes to P-Card Information
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1.9.1 Once a P-Card is issued, it is the Cardholder’s responsibility to notify the PCard Administrator of any change in the Cardholder’s information.

1.9.2 It is the department’s responsibility to notify the P-Card Administrator of any changes to a Cardholder’s assigned Reconciler or Approver.

1.9.3 Purchase Limits may be temporarily changed for a limited amount and duration with the approval of the Department Director and Finance Director or their designee. Permanent changes may only be approved after review by the Finance Director.

1.10 Cardholder Termination/Transfer

1.10.1 If a Cardholder is no longer employed by the City or if a Department Director decides a Cardholder no longer needs a P-Card, it is the department’s responsibility to collect the Cardholder’s P-Card and complete the appropriate documentation. The P-Card will be immediately cut in half, and both the destroyed P-Card and documentation will be forwarded to the P-Card Administrator, who will notify the Bank to delete the P-Card.

1.10.2 Prior to transferring to another department of the City, the Cardholder is to return their P-Card to the issuing department. The P-Card will be cut in half and the appropriate documentation completed by the department. Both the destroyed P-Card and documentation will be forwarded to the P-Card Administrator, who will notify the Bank to delete the P-Card. The Cardholder’s new department may request a new P-Card be issued if necessary for the employee’s role.

1.11 Authorized P-Card Use

1.11.1 Each P-Card issued will be embossed with the Cardholder’s name and should ONLY be used by the Cardholder. NO OTHER PERSON IS AUTHORIZED to use the card. The Cardholder may make transactions on behalf of others in their department/division. However, the Cardholder is responsible for ALL purchases charged to their card.

1.11.2 The total value of a transaction will not exceed a Cardholder’s single purchase limit. Payment for a purchase SHALL NOT be split into multiple transaction to stay within the single purchase limit. Limits may be permanently or temporarily changed with proper approval. (See 5.9.3)

1.11.3 The Cardholder must obtain ITEMIZED vendor receipts, documentation of telephone orders, and/or copies of mail orders.

1.12 Prohibited P-Card Use

1.12.1 The P-Card MAY NOT BE USED for the following:
a. Personal purchases or for personal identification.
b. A single purchase that exceeds the Cardholder’s single purchase limit. c. Automotive Fuel unless authorized (see the City’s Travel Policy). d. Meals with limited exceptions (See Section 7.0)
e. Gift Cards.
f. Cash Advances.
g. Any City Fines or Fees.
h. Alcoholic Beverages.

Packet Pg. 269
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Catering, unless the food is being dropped off for an approved City event. j. Payments under a City contract; these payments must be made through the regular Accounts Payable process, or the contract and Purchase Order will not be properly charged.

1.12.2 Accidental Use of P-Card. Any cardholder who accidentally charges a personal item to a City P-Card instead of their personal credit card must immediately notify their supervisor and the P-Card administrator. They must submit the receipt and repayment to the City via the Purchasing Division within ten (10) business days. A second accidental charge will result in a review by the Department Director and the Finance Director. Following review, the Finance Director may take action up to and including suspension or revocation of the Cardholder’s City P-Card privileges.

1.12.3 Unauthorized Purchases and Careless Use. Cardholders who make unauthorized purchases or carelessly use their P-Card will be liable to the City for the total dollar amount of such purchases. Misuse of a City P-Card will result in the Cardholder’s City P-Card privileges being revoked and may be subject to disciplinary action up to and including dismissal.

1.12.4 Intentional Misuse. The intentional use of a City P-Card to acquire or purchase goods and/or services for other than official use of the City is fraudulent. An employee guilty of fraudulent use of a City P-Card may be dismissed and may be subject to legal action.

1.13 Card Security

1.13.1 It is the Cardholder’s responsibility to safeguard their P-Card to the same degree that the Cardholder safeguards their personal credit information.

1.13.2 The Cardholder must not allow anyone to use their card. A violation of this trust will result in the Cardholder’s P-Card privileges being revoked as well as potential disciplinary action.

1.14 Lost or Stolen Cards and Fraud

1.14.1 Cardholders MUST immediately report a lost or stolen P-Card directly to the Bank and the P-Card Administrator. The Bank will inactivate the existing card and issue a new card that will be mailed to the P-Card Administrator.

1.14.2 If the original card is later found or recovered by the Cardholder after being reported lost or stolen, the card will be cut in half and given to the P-Card Administrator.

1.14.3 If a cardholder suspects fraud and has not already been contacted by the bank via telephone or email, the cardholder and/or reconciler MUST immediately contact the bank by calling the 1-800 number on the back of the cardholder’s card to report the suspected fraud. The cardholder and/or reconciler must then inform the P-Card Administrator of the fraud and what actions were executed by the bank to safeguard the card.

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1.15 Recordkeeping/Reconciliation

1.15.1 Itemized Receipts. It is the Cardholder’s responsibility to obtain an ITEMIZED receipt whenever a P-Card purchase is made – either in-person by telephone, or over the internet and check the receipt for accuracy. A summary receipt is not acceptable.

1.15.2 Sales Tax. If sales tax has not been charged on taxable tangible goods, the Cardholder should notify the Finance Department and make a note on the receipt so that the Finance Department can pay the appropriate tax.

1.15.3 Providing Receipts to Reconciler. If a Reconciler is used to reconcile a Cardholder’s transaction, the Cardholder will provide receipts for transactions to the Reconciler on a timely on-going basis, not to exceed five (5) business days after the charge is made, or after the Cardholder returns from travel on City Business in order to give the Reconciler time to reconcile receipts and meet required deadlines.

1.15.4 No Itemized Receipt. If the Cardholder does not have an ITEMIZED receipt for a transaction, he/she will provide a memo stating that they were unable to obtain or that they lost the original itemized receipt. The memo shall include details of the transaction including the vendor’s name, date of purchase, description of the item(s) purchased, and the purpose of the purchase. The Cardholder must also include the reason for the missing receipt. The Cardholder must obtain the Department Director’s signature on the memo and submit the signed memo in lieu of the actual receipt to their reconciler or attach to the transaction in the financial system. Also, the words “No Itemized Receipt” need to be a part of the transaction’s charge description.

1.15.5 Missing Receipt. If a Cardholder does not provide an itemized receipt OR a missing receipt memo for a transaction, the Cardholder may be financially responsible for the purchase amount of the transaction.

1.15.6 General Ledger Import and Reconciliation. P-Card transaction will be imported into the GL each month. It is the Cardholder and/or Reconciler’s responsibility to review these transactions on a timely basis, code the purchase to the appropriate GL account, make any necessary adjustment, and scan and attach the supporting receipts and documentation into the banking system for backup. The transaction will then be released for approval. If no adjustment is made, the entire transaction will be charged to be default GL code established upon issue of the card (see Section 5.4). All transactions must be reviewed, reconciled and released for approval within the first five (5) calendar days of the month (see Section 5.16.3).

1.15.7 Approval. Once a monthly statement has been released for approval by the Cardholder or Reconciler, it will be approved by the Approver. By approving the statement, the Approver is attesting to the appropriate purchase of the goods and/or services for official use by the City. If the transaction is not in compliance with the P-Card Policy, the matter will be brought to the Packet Pg. 271
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1.15.8 Returns. If a Cardholder returns an item, it is their responsibility to ensure that a credit is issued back to their P-Card. If a Reconciler reconciles the Cardholder’s transaction, the Reconciler should be made aware of the credit and follow up if the credit is not received.

1.15.9 Unauthorized Charges. If a Cardholder does not recognize a transaction, they must first contact the vendor to find out what was purchased and attempt to resolve the charge with the vendor before disputing it with the bank. If the transaction needs to be disputed after contacting the vendor, it is the Cardholder’s and/or Reconciler’s responsibility to complete appropriate documentation and submit to the P-Card Administrator. It is also the Cardholder’s and/or Reconciler’s responsibility to track the progress of the dispute until it is resolved. The P-Card Administrator will keep the Cardholder or Reconciler, if applicable, informed of any information received from the bank regarding the dispute.

5.16 Deadlines

5.16.1 P-Card transactions will post to the Bank 1-3 business days following the transaction.

5.16.2 It is the Cardholder and/or Reconciler’s responsibility to review and reconcile the P-Card transaction on a timely on-going basis.

5.16.3 Receipts should be reconciled no less frequently than every two weeks.

Finance staff will send reminder emails to Cardholders and Reconcilers with outstanding transactions.

5.16.4 Monthly Statements are to be reviewed, reconciled, and released for approval within the first five (5) calendar days of the following month.

5.16.5 Once released, P-Card transaction must be approved by the Approver within the first seven (7) calendar days of the Cardholder review.

5.16.6 All P-Card transactions for the previous month must be approved and posted by Finance before the 15th of the following month.

6.0 Compliance

6.1 Finance staff will conduct audits of P-Card transactions both randomly and selectively to ensure purchases are made in accordance with the Policy.

6.2 Failure to comply with this Policy may result in the Cardholder’s P-Card privileges being revoked and/or disciplinary action up to and including dismissal.

7.0 Meal Exceptions

7.1 Business Purpose Meals. Business purpose meals are meals purchased by a City employee or elected official for official city business.

7.1.1 Documentation. Documentation is required for a business purpose meal:
a. An ITEMIZED receipt.
b. A description of the business purpose of the meal. The description should be thorough enough to pass audit scrutiny. For example: “Development Packet Pg. 272
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c. A list of all attendees of the meeting, first and last name. The list should either be written on the receipt (legibly) or attached.

7.2 Meals with Traveling. Meals while traveling on City business are paid based on perdiem rates as indicated in the City’s Travel Policy. Meals while traveling charged to a PCard in excess of the per diem amount must be reimbursed to the City within ten (10) business days of the completed reconciliation.

7.3 Tipping. Tips added to meals on a P-Card should not be more than 20% Any amount more than 20% must be reimbursed to the City by the Cardholder within ten (10) business days of the charge posting to the City’s financial system.

7.4 Prohibited Meals.

7.4.1 Meals for Personal Consumption. It is expressly prohibited for employees or elected officials to purchase any meal: breakfast, lunch, dinner, or any other food for personal consumption on their City P-Card unless they are traveling overnight on City Business.

The IRS deems meals that are paid for by an employer while not “traveling away from home” to taxable wages. IRS Publication 5137 (Rev. 2-2020)

8.0 Exceptions
These general policies are not expected to address every issue, exception, or contingency that may arise in the use of the City P-Card. Accordingly, the basic standard that should always prevail in dealing with exceptions is the exercise of good judgement in the use and stewardship of the City’s resources. Unless otherwise specified herein, exceptions for employees will require the approval of the City Manager, the Assistant City Manager, or the Finance Director; exceptions for elected officials will require approval of City Council at a regular meeting of the Mayor and City Council.

Responsibilities:

The Department Director shall be responsible for determining which staff members can be issued a P-Card. The business need for obtaining a card should be carefully considered to limit the number of cards issued.

Card limits should be as low as possible while still accomplishing business needs. Pursuant to the Cardholder Agreement, each individual cardholder is ultimately responsible for their purchases.

The following is a chart showing the City's standard card dollar limits for a single transaction and monthly dollar limits; however, consideration may be given for other card limits if required for special circumstances:

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Single Purchase
Transaction Monthly Dollar Limit
$500 $2,500
$1,000 $5,000
$1,500 $5,000
$2,500 $10,000
Card Limits for emergency and disaster purchasing by the Finance Department and/or Emergency Management Operations personnel will be determined on an individual basis, based on FEMA best practices and guidelines.

To avoid confusing a P-Card with personal credit cards, each Cardholder will be provided a PCard embossed with both the Cardholder's name and the "City of San Bernardino," along with the City's logo.

ANY USE OF THE P-CARD IS RESTRICTED TO THE CARDHOLDER. THE USE OF THE P-CARD FOR

ANY PURPOSE OTHER THAN OFFICIAL CITY BUSINESS EXPENSES IS PROHIBITED AND IS GROUNDS FOR DISCIPLINE UP TO AND INCLUDING TERMINATION. IN ADDITION TO

DISCIPLINE, AND POTENTIAL CRIMINAL CHARGES, THE CARDHOLDER MUST REIMBURSE THE CITY FOR UNAUTHORIZED CHARGES. THIS CARD MAY NOT BE USED FOR PERSONAL PURCHASES - NO EXCEPTIONS.

The Cardholder must attend training and carefully review the training documents provided with the P-Card. Cardholders must sign and abide by the City of San Bernardino Cardholder Agreement and comply with the guidelines of this Policy.

Each P-Card will be assigned specific categories of purchases, as well as single transaction and monthly dollar limits. Each Department's overall P-Card exposure will also be verified against its annual approved Operating Budget.

P-Card Procedures:

To apply for a P-Card, departments must complete the following forms:

1. Cardholder Agreement

2. Cardholder Account Set-up

3. Approving Official Account Set-up form
a. If the P-Card Agreement is a new approving official, which indicates the maximum dollar amount for each single transaction and a total monthly dollar amount.

All P-Card forms are available on InsideSB, the employee intranet site under the section "Forms and Publications" of the Finance Department. The PSM will review the Cardholder application documents and will approve or reject, the applicant based on Policy guidelines.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 50 of 99 To request an increase or modification to the P-Card limits, the Department Director must first approve the City's Purchase Card Modification/Increase form.

The Policy is a supplement to the procurement process. As with other procurement methods, the following conditions must be met when using the P-Card:

The P-Card should be used whenever possible in-lieu of petty cash, emergency purchase orders, or purchase requisitions when the item or group of items is under the transaction limit. Items should always be purchased at the lowest cost that meets the Departments basic needs.

Normal purchasing procedures must be followed if a purchase will exceed a limit established.

Each transaction may be comprised of multiple items, but the total, including tax and shipping, cannot exceed the single transaction dollar limit on the P-Card; nor exceed the monthly dollar limit. If either of these limits is exceeded, the transaction will be declined by the card issuing bank.

All charges must be supported by receipts or some written documentation. A Purchasing Card Receipt Detail form must be used to document all Meals, Travel, Meetings, and Event transactions made using a P-Card. All of the following information must be provided before Finance will approve a business expense.

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CITY OF SAN BERNARDINO ALLOWABLE PURCHASES
Please use the following list as a guideline for allowable P-Card purchases.

PURCHASE TYPE DESCRIPTION CATEGORY

ASSOCIATION DUES,

PROFESSIONAL OR

INDUSTRY

MEMBERSHIPS
Dues may be charged if related to City business and with approval from Supervisor/Manager or Director.

ALLOWABLE
CITY BUSINESS MEALS Purchase of food for business requirements.

Receipts including the names and affiliations for all members of the party whose meals are paid for using the purchasing card, and then state the business purpose for the expense. You must include an itemized receipt showing food and beverage items purchased, rather than the receipt showing only the total.

The use of the P-Card for catering services is generally prohibited, as it is considered a service, unless the food is only dropped off.

ALLOWABLE
CITY BUSINESS TRAVEL City travel related purchases including airline tickets, hotel accommodations, car rentals, business meals, etc. Employee shall use their own credit card for any personal expenses, such as personal phone calls, video rentals, upgrades, etc.

ALLOWABLE

COMPUTER AND

TELEPHONE

ACCESSORIES
Information technology and telephone consumable items for City Business: flash drives, toner cartridges, diskettes, zip disks, COs, DVDs, tape cartridges, mouse, keyboards, USB peripherals, telephone headsets and paper DO NOT require Information Technology Department (IT) preapproval.

ALLOWABLE

CITY SPONSORED
EVENTS
Items necessary to conduct a City sponsored event. ALLOWABLE GENERAL SUPPLIES Items for City business not prohibited or in conflict with negotiated discounts such as Staples. Use Staples card or on-line ordering system.

ALLOWABLE

ON-LINE AUCTION

PURCHASES
On-line auction purchases for City business needs for items not on a City prohibited list may be purchased with approval from
Supervisor/Manager or Director.

ALLOWABLE

PROFESSIONAL

DEVELOPMENT
Allowable with approval from Supervisor/Manager or Director. ALLOWABLE

SEMINARS, CONFERENCES

WEBINARS, TRAINING
Seminars, training, books, etc., that have been preapproved by the Director or City Manager and budgeted for by the Department.

ALLOWABLE

SUPPLIES FOR CITY

MAINTENANCE AND

REPAIRS
Maintenance and repair supplies, including maintenance tools and equipment; janitorial supplies and other maintenance-related expenses.

ALLOWABLE
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 52 of 99 The City at its sole discretion may apply other restrictions and the Purchasing Card Policy shall be updated as needed by the Finance Department.

Acknowledgement
Before being issued a City of San Bernardino purchasing card or online management account authority under this policy, all authorized users shall sign and accept below indicating that such user will use such cards only in accordance with the policies of the city and with the requirements of state law.

Name Printed Signature

Date Role
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 53 of 99 City of San Bernardino Travel Authority and Expense Reimbursement Policy (Approved Resolution 2021-164)
Scope: This Policy applies to all employees and Elected Officials requesting reimbursement for expenses incurred on behalf of the City.

Exemption from Scope
None.

Policy:

1.0 DEFINITIONS

1.1 Appropriate Expense
An Expense that is suitable or fitting for a particular valid business purpose

1.2 Allowable Expense
A necessary, reasonable, and appropriate expense incurred for the primary benefit of City business and therefore permitted to be reimbursed or directly charged based on the permission of the City.

1.3 Available Budget
The total amount of funds available in the General Ledger expense line to be charged for the expense incurred by the employee or Elected Official

1.4 Necessary
Minimum purchase or service required to achieve a particular business objective.

1.5 Original Receipt
The original merchant receipt or invoice issued by the supplier or service provider to document and substantiate the business transaction. A digital image of the original receipt is allowable if it is legible, and the paper receipt is destroyed.

1.6 Reasonable
An expense that is ordinary and reflects and prudent decision to incur the expense on behalf of City business. Not extreme or excessive.

1.7 Request
Reimbursement Request or Request for Reimbursement.

1.8 Substantiation
Documentation to support an incurred business expense that includes the original receipt, documentation of business purpose, names of persons in attendance, and appropriate report of the expense for the incurred cost.

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2.0 CRITERIA FOR DETERMINING AN ALLOWABLE EXPENSE

2.1 Considerations. To be reimbursed to an individual, a business expense must be:

2.1.1 Necessary to perform a valid business purpose fulfilling the mission of the City.

An expense is necessary if there is a valid business purpose required to fulfill the mission of the City. The primary benefit of a necessary business expense is the City, not the individual. A necessary expense is a minimum of purchase or service required to achieve a valid business objective.

2.1.2 Reasonable in that the expense is not extreme or excessive, and reflects a prudent decision to incur the expense. Reasonable means the amount that normally would be spent in a specific situation. An expense is considered reasonable if it is not extreme or excessive and reflects a prudent decision and action to incur the expense. This Policy does not define precise dollar amounts for what constitutes reasonable, because the reasonableness of an expense depends upon many relevant factors including the business purpose, the context, the source of funds, and the circumstances surrounding the expenditure.

2.1.3 Appropriate in that the expense is suitable and fitting in the context of the valid business purpose. Costs are appropriate if they are suitable or fitting for a particular business purpose. For a cost to be appropriate it is also presumed that there is a valid business purpose, which is normally the responsibility of the department to determine.

The following questions should be considered when determining the appropriateness of costs:
a. Could the cost be comfortably defended under public scrutiny? b. Would you be confident if the cost were selected for audit? c. Would you be comfortable reading about it in the newspaper? d. Has it been adequately documented?

2.1.4 Allowable according to the terms of any City policy. If a business expense is necessary, reasonable, and appropriate, the City will generally consider it an allowable expense, subject to approval.

2.1.4 (1) Allowable Food and Meals. Meals that meet all the above criteria must also meet IRS rules to be reimbursable and non-taxable to the employee or Elected Official. See Section 4.0 FOOD AND MEALS.

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3.0 SUBSTANTIATION OF EXPENSE
For a business expense to be approved and reimbursed, it must be properly substantiated.

3.1 Clear, Complete and Accurate. All City-related business expenses require clear, complete, and accurate supporting documentation. The collective documentation associated with your expenses should answer who, what, where, when, and why of each transaction (as applicable). In your documentation, include:
a. Who attended (first and last names);
b. What purpose the expenditure served;
c. Why the expense was necessary, or how if furthered the City’s goals; and d. When and where the expense took place.

All documentation should be written in a way that will be understood by anyone who reviews it, whether today or many years from now. This includes a person outside of the City who is unfamiliar with a department’s work or jargon.

3.2 Business Purpose Examples.

3.2.1 The following would be considered incomplete business purpose descriptions for substantiation:
a. Dinner with Marcus G., economic development-PPP; Miyagi Sushi b. Lunch with Echo Group
c. Printing-sidewalk vending

3.2.2 The following are examples of clear, concise, and complete business purpose descriptions for substantiation:
a. Dinner with Marcus Grimm, economic development – Public-Private Partnership; Miyagi Sushi.
b. Lunch with Echo Group – Anh Nguyen, Felix Baca, and Ron Watson, re:
development in canyon; Jose’s Mexican Food.
c. Extra copies of sidewalk vending brochures printed for event at Orange Show.

3.2.3 Clear examples are important so that auditors and the public, even years from now, can understand why a purchase was made. For instance, in the examples above, printing services are usually purchased through the normal course of City business. It is only through the normal course of City business. It is only through the business description that clearly states “extra copies” printed for “event” that someone reading the backup material would understand the business need for printing outside a normal business process.

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4.0 FOOD AND MEALS
Food and meal purchases are covered under this policy, the City’s Procurement Card (“P-Card”) Policy and the City’s Travel Policy. Because of IRS rules, any City purchase or reimbursement of meals require additional documentation.

4.1 General Eligibility. Purchases of food and meals are eligible for reimbursement if they are part of overnight travel (See Travel Policy), business meetings (Business Meals, Section 4.3) as allowed for Elected Officials or as approved by the City Manager, or to provide meals in the case of all-day meetings or scheduling that requires meetings to be held over a mealtime (Meals Provided During Work, Section

4.4). Any meal reimbursement will be in accordance with IRS rules.

4.2 Meals During Travel. For details about meals during travel for City business, see the City’s Travel Policy.

4.3 Business Meals. Meals that are purchased as part of business meeting are allowed for Elected Officials or as approved by the City Manager. These meals are governed under IRS rules (see IRS Pub. 5137) and require specific documentation

4.3.1 IRS Requirements
a. Business Connections. A description of the business purpose of the meal. The description should be through enough to pass audit scrutiny. See Section 5.2 for examples
b. Adequate Accounting within a “Reasonable” Period of Time. While the IRS does not specify a length of time for submitting receipts for reimbursement; this policy requires that any request for reimbursement be submitted no later than 60 days after the date of purchase.
c. Excess Reimbursements are Returned within a “Reasonable” Period of Time.

If an employee or Elected Official finds that they have been reimbursed more than amount owed; the excess should be remitted to the City with ten (10) business days of discovering the error.

4.3.2 Audit and Transparency Requirements
a. Itemized Receipt. The meal receipt MUST be itemized. Reimbursement will not be provided for summary receipts.
b. Names of Attendees. A list of all attendees of the meeting, first and last name.

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4.3.3 Tipping. A maximum of 20% will be reimbursed.

4.4 Meals Provided During Work. The purchase/reimbursement of meals/food for staff during work hours is allowed under the following circumstances:

4.4.1 Working Meals. Working meals must be occasional and require preapproval by the Department Director. In the case of an employee meeting held during mealtime, a good faith attempt should be made by the meeting organizer to schedule the meeting at a time that does not overlap mealtime.

The following criteria must be met for a working meal to be reimbursable:

4.4.1 (1) City Business Purpose. There must be a clearly stated City business purpose for the meeting/working meal.

4.4.1 (2) List of Attendees. A list of all attendees (first and last name), and department, must be included.

4.4.1 (3) Reasonable Cost. As stewards of taxpayer dollars, it is incumbent upon all City employees and Elected Officials to use City funds wisely.

Food brought in for working lunches should be reasonably priced. “Reasonable cost” while not defined in this Policy in actual dollar terms, is defined as what would be paid by a prudent person under the same circumstances. Consider the Appropriate Cost questions from Section 2.1.3 when determining reasonable cost:
• Could the cost be comfortably defended under public scrutiny? • Would you be confident if the cost were selected for audit? • Would you be comfortable reading about it in the newspaper?

4.4.1 (4) Tipping. No more than a 20% tip will be reimbursed

4.5 Prohibited Meals and Food.

4.5.1 Alcohol. The purchase of alcohol is not eligible for reimbursement.

4.5.2 Taxable Fringe Benefits. Because IRS rules require that they be included in taxable wages as fringe benefits, reimbursements will not be provided for the following categories of meals (See IRS Pub. 5137 for details):

4.5.2 (1) Individual Meals. Meals purchased for or by an individual employee or Elected Official will not be reimbursed (Except for during overnight travel, which is covered under the Travel Policy. NOTE: if an individual meal is purchased, whether by p-card or erroneously reimbursed, and the funds are not returned to the City, the cost of the meal will be Packet Pg. 282
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4.5.2 (2) Meals while on Day Trips. Meals purchased during day trips for work (not overnight) are not reimbursable, even if the trip extends beyond the regular workday.

5.0 AVAILABLE BUDGET AND PRE-APPROVALS

5.1 Verify Available Budget. It is the responsibility of the employee or the Elected Official to verify that there is adequate available budget for the planned expense before making any purchase on behalf of the City.

5.2 Pre-Approval. Employees purchasing food or tangible goods for a City purpose should have the approval of their immediate supervisor or Department Director before expending personal funds whenever possible.

5.2.1 Establishes City Purpose. By obtaining pre-approval, the City purpose of the expense is already established.

5.2.2 Forms of Pre-Approval. Pre-approval is for the protection of the employee making the purchase. By obtaining pre-approval, the employee can be reasonably assured that the personal funds expended for a City business purpose will be reimbursed. As such, it is the interest of the employee to ensure that the pre-approval:

5.2.2 (1) Includes the name of the person making the approval.

5.2.2 (2) Clearly identifies the specific expense that is pre-approved (may not be a “blanket” approval of multiple expenses).

5.2.2 (3) Can be printed or electronically attached to the request for reimbursement.

5.2.3 Verification of allowable Expense. If an employee, supervisor, or Department Director is uncertain regarding the allowability of the expense for reimbursement, they should contract Finance for verification.

5.2.4 Exemption of Pre-Approval Requirement for Elected Officials. Elected Officials are not required to obtain pre-approval for City business-related expenses except in the case of travel (See Travel Policy). However, it is incumbent upon the Elected Official to ensure that there is adequate budget available to cover any expenses before they are incurred.

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6.0 APPROVAL AND REIMBURSEMENT
Requests for reimbursements should be submitted with original receipts attached and all appropriate documentation as discussed above to meet IRS, audit, and City transparency standards. Once this is complete, the request may be submitted for approval reimbursement.

6.1 Review and Approval – Employee Request for Reimbursement

6.1.1 Approval. Employees requests for reimbursement will go through approvals in the Department as follows – the employee’s immediate supervisor, and Department Director review and approval. After the Departmental approvals are complete, the Request will be moved to Finance for final approval and reimbursement. If Finance staff questions any expenses, they will escalate the Request to the Finance Director for review and a decision as to the allowability of the expense under the Policy. Once any questions are resolved, the Request will be moved to Accounts Payable for reimbursement.

6.1.1. (1) Finance Director Decision. The Finance Director’s decision as to the allowability of an expense will be final.
a. Rejected Reimbursement Memo. If the Finance Director determines that an expense is not reimbursable, they will draft a memo to the employee and the Department Director explaining the reason.
b. Option to Appeal. An employee may appeal the decision of the Finance Director to the City Manager.

6.1.1 (2) Appeal to City Manager. If an employee disagrees with the Finance Director’s decision, they may appeal the decision to the City Manager within ten (10) business days of the employee receiving the Rejected Reimbursement Memo.
a. Appeal Process. The employees making the appeal must submit a memo to the City Manager detailing why they disagree with the Finance Director’s decision. The memo should include specific references to this policy
b. Language and Accessibility. If the employee believes that they require help to write the memo, help will be provided by Human Resources personnel unconnected to this process. The deadline to submit the memo will be extended to accommodate for any scheduling issue delays. The deadline of ten (10) days will be Packet Pg. 284
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c. City Manager Decision. The City Manager’s decision will be final

6.1.1 (3) Taxability. If the City Manager allows reimbursement of an expense that the Finance Director has identified and rejected for reimbursement as a fringe benefit under IRS Pub. 5137 the amount will be reimbursed, and Finance will add the amount of the reimbursement to the employee’s taxable wages, as required by IRS rules regarding fringe benefits.

6.1.2 Payment. Accounts Payable will cut a check for reimbursement if there is adequate budget available. If there is not adequate budget, the Request will be rejected and returned to the Department.

6.2 Review and Approval – Elected Official Request for Reimbursement

6.2.1 Approval. Elected Official Requests for Reimbursement will go through approvals as follows – the Council Supervisor/Mayor’s Executive Assistant will review the Request, verify available budget, and escalate any questioned expenses to the Finance Director for review and a decision as to the allowability of the expense under this Policy. If there are not questioned expenses, the Council Supervisor/Mayor’s Executive Assistant will approve the Request and move it to Finance for final approval and reimbursement. If Finance staff questions any expenses, they may escalate the Request to the Finance Director for further review as to the allowability of the expense under this policy.

6.2.2 Questioned Costs. If the Finance Director finds that an expense submitted for reimbursement is not reimbursable under this Policy, and the Elected Official disagrees, the Elected Official may bring the expense before the Mayor and City Council during a regular meeting for a final determination of allowability (see Section 6.3.1).

6.2.2 (1) Taxability. If the Mayor and Council vote to allow reimbursement of an expense that the Finance Director has identified and rejected for reimbursement as a fringe benefit under IRS Pub. 5137, the amount will be reimbursed, and Finance will ad the amount of the reimbursement to the Elected Official’s taxable wages, as required by IRS rules regarding fringe benefits.

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6.2.3 Payment. Accounts Payable will cut a check for reimbursement if there is adequate budget available. If there is not adequate budget, the Request will be rejected and returned to the Elected Official.

6.2.3 (1) Insufficient Budget. If there is insufficient budget in the appropriate line item to cover the expense, the Elected Official has two options:
a. Request that budget be transferred from another line item within the Elected Official’s department budget in an amount sufficient to cover the expense, or
b. Withdraw the Request or Reimbursement.

6.3 Rejected Reimbursement Requests to City Council – Elected Officials Only

6.3.1 Bringing a Rejected Reimbursement Request Before City Council

6.3.1 (1) Documentation. For a Rejected Reimbursement Request to be considered by City Council, the Elected Official must provide in advance of the meeting:
a. Substantiation of the Expense, see Section 3.0
b. All written communication (email, etc.) from City staff documenting the reason for rejecting the Request.

6.3.1 (2) Decision. The decision of City Council will be final. a. Abstain. The Elected Official requesting the reimbursement shall abstain from the vote.
b. Tie Vote. If the vote results in a tie, the Mayor will cast the deciding vote unless it is the Mayor requesting the reimbursement. If the vote results in a tie, the rejection will stand.
c. Council Decline. Council may decline to hear the Reimbursement Request by a majority vote. If Council declines to hear the Request, the rejection will stand.
d. Taxability. See Section 6.2.2 (1)
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 62 of 99 SECTION 3: PROCEDURES
Procedures:

Explain the “how” of decision making. They provide step-by-step instructions for specific routine tasks. They may include a checklist or process steps to follow. Procedures help guide policies. Procedures give instructions on how to utilize policies.

The Purpose of Procedures:

At the very least, procedures should outline the following information:
• Who is responsible for each task.
• What steps need to be taken.
• Who the responsible party reports to.

What makes a good procedure?
• Clear, concise, and simple language.
• Addresses how to implement policies.
• Takes user insight into account.
• Providing options when feasible, not unnecessarily restrictive.

Exceptions to the Bidding Process
Current Emergency Purchases: 3.04.075
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, The City Administrator shall have the authority to authorize the Purchasing Agent to secure the open market at the lowest obtainable price and such supplies, materials equipment or contractual services. This emergency authority shall extend to all purchases; irrespective of the fact that amount might exceed the authorized limitation for open market purchases. In all instances a full explanation of the emergency circumstances shall be filed with the Mayor and Common Council.

If emergency work is performed, the Purchasing Division should be notified by the next business day. This will allow the Purchasing Division to properly ratify purchase orders.

What Constitutes as an Emergency:
• A public calamity
• An immediate need to prepare for national or local defense.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 63 of 99 • The breakdown of machinery or equipment on service impediment which will require immediate resolution.
• A hazard or peril to public health or welfare
• A situation where the city is unable to perform services for the public.

Steps to take:
• If the emergency occurs during business hours, The Purchasing Division shall be notified the same day.
• If an emergency occurs during non-working hours, purchasing shall be notified during the next business day.
• Purchasing contracts vendor or delegates to department to secure rough order magnitude (ROM) written estimate. Purchasing or delegate notifies vendor to proceed. • Only licensed and insured vendors can be contracted with, as appropriate. • A purchasing order with a Not to Exceed Amount (NTE) shall be issued within 5 – 10 days.
• If feasible, a Vendor service Agreement to follow.
• If ROM exceed $100,000, council approval is required even if after the fact. • After the emergency is mitigated, if additional work is required, the normal competitive procurement procedure is to be followed.
• Contractors must be registered with DIR prior to the bid opening, to qualify to win the bid.

Municipal Code §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.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 64 of 99 The Purchasing Process
Department Led Bids for Purchases between $10,001 and $40,000:

Please see Section 2: Polices, for Purchasing Expenditure and Approval Thresholds.

1. Department must contact all vendors/contractors/consultants via telephone, teleconference, or email for a quote request.
a. Please note if verbal requests for quotes are made, a written confirmation and/or follow-up must be sent to the vendors/contractors/consultants.

2. Department must provide all vendors/contractors/consultants with same SOW and specifications for the services/products/equipment that is needed. a. This for transparency and audit purposes

3. Department must provide all vendors/contractors/consultants with a due date/deadline to return their bid/quote. Please see the definition and detailed example of a valid quote.
a. Quote can be electronic in Excel, Word and PDF format. b. The date should be noted on the quote.

4. Departments must evaluate the bids submitted, showing documentation of the cost comparison.

5. Once bid is awarded, Department may process a purchase order for purchases between $10,001 up to $40,000. All bid documents must be attached to the PO in New World along with the certificate of insurance (Endorsements and Waivers of Subrogation), and current W9 with date and signature, if services are being provided to the City. a. It is the discretion of the Agency or Department Director to process an agreement for purchases between $10,001 and $40,000.
i. Agreement templates are available from the Purchasing Division. ii. If an agreement is required, please contact the Purchasing Division for review of the agreement before it is uploaded to DocuSign for signature.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 65 of 99 Telephone Quotes
If quotes are requested verbally, they should always be followed up by email, fax, or text, if email is not an option. The only time that a follow-up is not required is under the following unusual conditions:
• Wi-fi servers are inoperable for both parties; therefore, emails can’t be received and sent.
• Fax is not available.
• The post office and other delivery courier services are not available. • Text messages are not an option.

When requesting a phone quote from a vendor, please follow the following instructions:
• Pre-write verbiage or a script in order to be transparent and ask each vendor for the same information.
• Make sure to document the time and date the vendor was contacted. • Make sure to advise the vendor of the date and time the quotes need to be submitted.. • All vendors need to be contacted within the ten (10) business days to ensure pricing is comparable. Prices obtained months apart are not comparable. • Make sure to obtain the vendors contact information in order to send a confirmation email.

If you send a follow-up email, you are much more likely to receive the written back-up for the quote that is required for audit purposes. While verbal quotes are quick and easy, sending a follow-up email takes only a few seconds and saves a lot of headaches later during an audit! Packet Pg. 290
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 66 of 99 Example of an ideal simple quote:

Quotation
Quote Number: Date: May 7, 2021
Company Name: Contact Person and Contact Info.:

Project Title/Number: Total Cost:

Item Description Unit Price Quantity Price
Office Phone System
Instruction Book
Instruction Manual for the
NEC Office Phone System
$XX.XX 40 $XXX.XXX
Total Price $XXX.XX
Thank You very much for giving us the opportunity to quote. We hope to serve your order soon. If you have any questions, feel free to contact us at_______________.

Sincerely,
Contact Title
Contact Name
• A valid quote should contain the following information:
 Supplier’s business details
 Client details
 Quote number
 Date of issue
 A list of services to be provided
 What services won’t be provided
 Breakdown of costs
 Total cost of the project
 Variations of (extra costs)
 Timelines and completion dates
 Factors which may affect the completion date
 A place for customers to sign their acceptance
• Please Note: City staff should not sign acceptance of a quote. If terms and conditions are attached, the signer may be accepting terms and conditions and obligating the City to terms and conditions that are contrary to the City’s usual terms and conditions. Staff members that have been assigned purchasing and signing authority Packet Pg. 291
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 67 of 99 should be the only individuals signing on behalf of the City. Individuals that have been designated purchasing and signature authority will contact the City’s legal Counsel if necessary to obtain legal advice as to signing pricing, quotes and proposals.  Payment methods, is asking for a deposit
Response Time From Purchasing Agents

1. Please allow at least 72 hours for the Purchasing Division to respond to your requests.

Same day inquiries will be reviewed by urgency and/or priority but responses are not guaranteed the same day.

2. This is to respect and prioritize all duties/tasks for the purchasing staff and most importantly to be able to address all City departments fairly and timely.

3. For projects, please contact purchasing no less than 6 months, but preferably a year or more before your project has to be finalized and ready to go. i. Allowing long lead times assists purchasing with identifying the needs for your department, and it assists with the needs for the City overall. Purchasing may be able to assist with your SOW, identifying suppliers/vendors in the marketplace, and with formulating your department’s purchasing strategy which will reduce potential risks.

4. Please include the purchasing process/plan and timeline in your project presentation to the City Council.
i. This shows the City Council that the departments are collaborating with the Purchasing Division and that citywide staff is accountable for the project. This also gives the City Council more realistic estimated dates and times of when your project can be fully executed.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 68 of 99 Purchasing Division Led Bids for all purchases:

1. Quick Quote via Planet Bids: Did you know that a quick quote can be utilized via Planet Bids for small purchases up to $10,000? Quick Quotes can be released with a bid close date within 48 to 72 hours.
a. The department must provide specifications to the Purchasing Division two (2) business days in advance for review and revisions before they would like the Quick Quote bid to be released. b. Departments should always send a detailed request to City Purchasing - - A detailed description of what you want to purchase, should include:

1. Color

2. Size

3. Amount/Quantity

4. Manufacturer Number

5. Name of Manufacturer, etc.
c. Quick Quotes have a turnaround time of 48 to 72 hours.

Quick Quote Process Chart
YES

NO

Department Identifies
Goods/Services to be
purchased
Purchasing will review the
request.

Did Dept. Provide all
relevant information for
Quick Bid to be Processed?
Request to be
returned to dept
for revisions.

Requesting Dept. Revises
request and resends to
purchasing.

Purchasing Dept. will move forward
with Quick Bid Release.

Purchasing Dept. Releases quick
quote with an assigned bid No. Bid
Turnaround is 48 to 72 hours
Bid Closes – Purchasing Reviews Bid
& Advises Dept. of winning
Company, Dept. Creates PO
(Purchasing May draft contract if
required) - Process is not Complete.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 69 of 99

2. Request for Quotation (RFQ): RFQ’s can be processed for purchases greater than $10,000. a. Requesting Department must provide RFQ documents to the Purchasing Division seven (7) business days before the requested bid release date, for review and revisions before bid is RFQ is released.
b. Departments should always send a detailed request to the Purchasing Division.

1. A detailed Scope Of Services (SOS)/Scope Of Work (SOW) is to be provided to purchasing. A good, drafted SOS/SOW should answer the questions: What, When, Where, Who, Why & How.

2. A detailed pricing sheet for the vendor to fill out and submit for the RFQ

1. Please Note: If the RFQ request is sent back to the department due to insufficient information, when the request is returned to purchasing, there will be up to five (5) additional business days for review before the RFQ is released. c. RFQs have a minimum turnaround time of 14 business days (from release to closing).

This does not include the evaluation of the bids, bid protest and award protests.

RFQ Process Chart
YES

NO

Did Dept. Provide all
relevant information for
RFQ Bid to be Processed?
Request to be
returned to dept
for revisions.

Requesting Dept. Revises
request and resends to
purchasing.

Purchasing Dept. will move forward
with RFQ Bid Release.

Purchasing Dept. Releases RFQ Bid
with an assigned bid No. Bid
Turnaround is 2 to 4 weeks
Bid Closes – Purchasing Reviews Bid
& Advises Dept. of winning
Company, Dept. Creates PO
(Purchasing will draft contract and
Process for signature Execution
Department Identifies
Goods/Services to be
purchased.

Purchasing will review the
request.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 70 of 99

3. Request for Proposal (RFP): The document used to solicit proposals from potential providers (proposers) for contractual goods and services. Price is usually not a primary factor. RFPs provide for the negotiation of all terms, including price, prior to contract award.

An RFP may include a provision for the negotiation of best of final offers, and may be a single or multi-step process. For the City of San Bernardino, RFPs can be processed for purchases above $40,000. RFPs are usually solicited for High Value/High Risk projects and services.

1. The Department should be preparing for an RFP month in advance and contacting the Purchasing Division for advanced notification. RFP documents must be provided to the Purchasing Division no less than fourteen (14) business days in advance, before the requested RFP release date. This is for review and revisions before RFP is released.

2. The Department should always send a detailed request to the City Purchasing Division.

1. A detailed SOS/SOW is to be provided to purchasing. A good, drafted SOS/SOW should answer the questions: What, When, Where, Who, Why & How.

2. A detailed pricing sheet for the vendor to fill out and submit for the RFP.

Please Note: If an RFP request is sent back to the department due to insufficient information, when the RFP request is returned to purchasing, there will be up to five (5) additional business days for review before the RFP is released.
b. Department can require a Bidders Conference (Bid Meeting) to discuss and clarify inquiries from the participating proposers.
c. RFPs have a minimum turnaround time of 30 calendar days (from release to closing).

This does not include the evaluation of the RFPs, any protest and award protests.

See RFP Process Flow Chart on Next Page
Packet Pg. 295
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 71 of 99 RFP Process Chart

Yes
No
Department Identifies
Goods/Services to be
purchased.

Purchasing will review the
request.

Did Dept. Provide all
relevant information for
RFP to be Processed?
Request to be
returned to dept
for revisions.

Requesting Dept. Revises
request and resends to
purchasing.

Purchasing Dept. will move forward
with RFP Bid Release.

Purchasing Dept. Releases RFP Bid
with an assigned bid No. Bid
Turnaround is 4 to 6 weeks
Bid Closes –
Purchasing Reviews: Bid Pricing,
References, Exceptions, Deviations,
Purchasing Draft complete evaluation
Matrix.

Department Reviews: responses and
qualifications of bids submitted.

Evaluation Matrix is reviewed by
Purchasing and Evaluation team, if a Best
and Final Offer (BAFO) is necessary,
Purchasing will contact vendors for
revised bid and deadline to submit BAFO’s
BAFO Closes:

Purchasing Reviews Revised Bid Pricing,
Exceptions, Deviations. Purchasing draft
complete evaluation Matrix
Department Reviews Revised responses
and qualifications of BAFOs submitted.

Purchasing Sends Tentative award to most
responsive/responsible bidder, (Dept. cc’d)
once award accepted.

Purchasing sends finalized matrix to Dept.
so staff report can be drafted. and
qualifications of BAFOs submitted.

Once Agreement has been approved by City
Attorney (If Exceptions were taken) contract
is uploaded to DocuSign for signature
processing.

Once contract has been signed by all parties,
including vendor/consultant/contract, the bid
and contract process is complete.

DONE!!
Packet Pg. 296
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 72 of 99 Request for Information (RFI) or Request for Qualification (RFQual): A nonbinding method whereby a jurisdiction publishes its need for input from interested parties for an upcoming solicitation. A procurement practice used to obtain comments, feedback, or reactions from potential responders (suppliers, contracts) prior to the issuing of a solicitation.

Generally, price or cost is not required. Feedback may include best practices, industry standards, technology issues, etc.
b. The Department requesting an RFI or RFQual should be preparing for the process months in advance and should contact the Purchasing Division for assistance. The Department must provide RFI/RFQual documents to the Purchasing Division fourteen (14) business days in advance of the requested release date, for review and revisions before the RFI or RFQual is released.
c. Departments should always send a detailed request to the City Purchasing Division. d. A detailed SOS/SOW is to be provided to purchasing.

1. A good, drafted SOS/SOW should answer the questions: What, When, Where, Who, Why & How. A detailed pricing sheet is not required for RFIs/RFQuals e. Departments can require a Bidders Conference to discuss and clarify inquiries from the participating respondents.
f. RFI’s/RFQual’s have a minimum turnaround time of 30 calendar days (from release to closing)
Please Note: If an RFI/RFQual request is sent back to a department due to insufficient information, when it is returned to purchasing, there will be up to five (5) additional business days for review before the bid is released. This does not include the evaluation of the RFI/RFQual, any protest and award protests.

Packet Pg. 297
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 73 of 99 RFI/RFQual Process Chart
Yes

NO

PROTEST PROCEDURE

1. Vendors not awarded for a contract have ten (10) business days to formally protest the award. The award should include precise fact and circumstances, and reason for the intent to award to be overturned.
a. The protest must be filed before the awarded contract or purchase order has been issued. The Purchasing Division may not act on a bid protest if it hasn’t been received in a timely manner. If the protest deadline has expired, the vendor will be notified, and the award process will move forward.

2. If the vendor bid protest is appropriately filed, the Purchasing Division may delay the award of a contract or purchase order until the matter is resolved. a. Please note that situations may occur where the delay of an award may not be in the best interest of the City due to emergency and/or time constraints such as the end of the City’s fiscal year or grant funding requirements. In these situations, the City has no obligation to delay or otherwise postpone an award of a purchase order or contract based on a vendor protest. In all cases, the Cities Purchasing Manager reserves the right to make an award when it is determined to be in the best interest of the City of San Bernardino. b. The Purchasing Manager will review the protest and will considered all information submitted with the protest. The purchasing manager will make the final decision in writing by email and will be followed up with a hard copy, or Department
Identifies
Goods/Services to be
purchased.

Purchasing will
review the request.

Did Dept. Provide all
relevant information for
RFP to be Processed?
Request to be
returned to dept
for revisions.

Requesting Dept. Revises
request and resends to
purchasing.

Bid Closes –Purchasing Reviews: Bid
& Advice Dept. of Results. A short
list is created from Results and a
RFP/RFQ is processed for the next
step., (See RFQ/RFP Flow Charts)
Purchasing Dept. will move
forward with RFI Bid Release
Purchasing Dept. Releases RFI
Bid Request with an assigned
bid number. Bid Turnaround
time 30 Calendar Days.

Packet Pg. 298
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 74 of 99 mail the notice to the protesting bidder within thirty (30) business days of confirmed receipt.

3. The Purchasing Manager may refer a protest of a technical nature to the requesting City Department for further clarification, and will prepare a response to the protesting vendor, advising them of the pending action(s), and when a formal response can be expected.

Packet Pg. 299
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 75 of 99

PROTEST FORM AND CONTENT
All protests shall be in writing and state that the vendor is submitting a formal protest, and the protesting vendor is responsible for ensuring that the protest is received within the protest deadlines. If the City does not receive the protest within the specified deadline, the protest may be rejected. The mailing address for all protests is:

City of San Bernardino
Purchasing Division
Attention: Purchasing Manager
290 North “D” Street
San Bernardino, CA. 92401
Include the following information shall be placed in the protest letter. Failure to provide the following information could result in rejection of vendor’s protest:

1. Company name, mailing address, phone number, and name of company individual responsible for submission of the protest

2. Please provide an email address for communication, clarification, and disposition of the pending protest

3. Specify the City Bid Number, bid title, closing date, and proposed award date of the solicitation

4. State the specific action or decision being protested

5. Indicate the basis for the protest

6. Indicate what relief or corrective action vendor believes the City should make

7. Demonstrate that every reasonable effort was made within the schedule provided, for vendor to resolve the basis of the protest during the process, including asking questions, seeking clarification, requesting addenda, and otherwise alerting the City to any perceived problems.

8. Protest letter must be signed by an authorized agent of the company Packet Pg. 300
City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 76 of 99 Vendor Setup
Instruction on how to request a New Vendor set-up and/or make changes to an existing vendor:
 Go to New World (ERP System)
 Financial Management
 Purchasing
 Vendor Change Request
• All vendors need documentation verifying their mailing address:
• W9
• City refund form
• Driver's License
• Asset forfeiture, Memo from PD
Purchase Orders (POs)

1. POs will be reviewed 2 days per week (Mondays and Fridays)

2. POs will be returned if proper documentation is not attached. a. Description must match the GL Account used and scope of work

3. Please be mindful that a PO is necessary “before” services are rendered. a. Example: POs are not rushed due to services being provided outside of an approved PO and/or agreement.

4. If using a Grants Account, please make sure to use a Grants PO.

5. Please make sure to obtain written permission the Grants Division.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 77 of 99 PO Change Order Process:

Changes are made via the New World Database. A Detailed comment needs to be entered stating what is being updated.

1. Remove the check mark in the change process only

2. Enter either the PO number or Vendor to find the departments PO

3. Hit Search

4. Click on the PO number that needs to be changed

5. Make the changes as needed

6. Click Save, if enough funds aren’t available the PO will not validate

7. If you get a GIANT red X do not move it forward, you will need to adjust the budget

8. If a GREEN check mark appears , the PO is validated, then approve to move forward in the approval process

9. Once change order request goes through the approval process and is fully approved, purchasing will post, print and forward a copy of your to your department so you will know the change order is complete.

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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 78 of 99 Furniture Order Process
There are a few things to be considered when you order furniture for new or existing staff.

1. There may be existing furniture that will meet your needs. Before ordering new furniture and/or cubicles, reach out to the Facilities Team. There are desks, credenzas, bookshelves, and cubicles available that are in excellent condition that may suit your needs. a. You are not required to use existing office furniture or cubicles. Sometimes the existing furnishings are too large for smaller offices, or the cubes are not suitable for the space. b. Chairs should always be ordered new. Using old chairs to save money can cost the City in the long term with potential ergonomic problems that they can cause or exacerbate for health employees.

2. If there is not existing furniture that suits the needs of your department, follow the RFQ Process to initiate the purchase of furniture that meets the needs of your department.

3. It is important to note that if City Facilities staff is unable to install your furniture and/or cubicles, a Public Works bid must be released for the installation of the furniture system according to State Law.
a. The bid will be released to certified/qualified vendors that have the proper licensing and certifications for the installation and comply with Prevailing Wage. b. Prevailing Wage applies to assembly, disassembly, installation, reconfiguring or securing furniture to walls.
c. Prevailing wage does not apply to delivery of furniture, or rearranging/moving chairs, bookcases, filing cabinets, desks, etc. within a space.

Staples Office Supplies
Staples is the city’s designated office supplies vendor.

1. To obtain a log-in
• Send an email to your assigned City Representative with your employee’s name, email address, phone, department and shipping address.

It is okay to ask for price matches for large, priced items. Please advise City Representative when an employee separates from the city so that their account is removed. Please note Furniture orders can be placed with Staples if a department has the approved specifications and measurements.

Business Registration
According to Municipal Code 5.04.005, a business registration certificate needs to be obtained before any person or business conducts business in the City. Please contact the Business Registration Department for all business certificate, licensing, and fee requirement information.

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City of San Bernardino | Purchasing Manual
Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 79 of 99 City of San Bernardino Contract Processing Guidelines
The Purchasing Division wants to ensure to meet the purchasing needs of the city as much as possible.

To safeguard that appropriate contract procedures a being properly followed; the following process is being implemented immediately:

1. Drafting a Contract.
a. If an individual department processes a bid, the Department can draft the service agreement using the city approved template.

2. All Contracts require purchasing review & approval prior to sending to the vendor/consultant for signature.
a. This is to ensure that everything is documented correctly within the agreement. b. The Department shall forward drafted agreement to the Purchasing Division for review and approval.
c. Purchasing may have some approved language and/or options to add to the agreement before sending to the vendor/consultant for review.

3. Contracts Requiring Purchasing/City Attorney review & approval prior to and after the vendor/consultant has been requested to sign the contract. a. Drafted templates that will not require City Attorney approval prior to sending to the vendor/consultant for signature are:
i. The contract is drafted on the City approved template and no exceptions or deviations have been taken on the terms and conditions. b. Drafted templates that will require Purchasing/City Attorney approval prior to sending to the vendor/consultant for review/revisions are:
i. The contract is above $40,000.
ii. The contract drafted on the City approved template and exceptions/deviations are being requested on the terms and conditions
iii. The contract is drafted on the vendor/consultants’ contract template. c. Drafted templates that will require City Attorney approval after sending to the vendor/consultant for review/revisions are:
i. The vendor has taken exceptions to the Terms and Conditions within the City approved agreement template.
ii. The vendor is counter-responding to the exceptions the City has taken on the vendor/consultants drafted contract template.
d. City Attorney is to be given a minimum of 7 to 10 business days to review contracts or to complete other legal review requests.

4. If wet signature is required. All contracts should be signed by the vendor/consultant prior to sending the contract to the Purchasing Manager and/or City Manager for final signature and approval.
a. This is a best practice for the business issuing the contract not to sign a contract until it is accepted by the other party and signed. Once it is accepted and signed by the other Packet Pg. 304
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Form# PURCH-100 Purchasing Guidelines and Procedures Rev. April 18, 2023 Page 80 of 99 party, the issuer should review the contract again to make sure no terms were changed and then sign it.
i. This best practice is also used when a vendor gives the City their contract template to review and sign. The city will not sign the contract until the vendor signs the negotiated terms and conditions first.
b. The City Purchasing Division is to be given a minimum of five (5) business days to review contracts or to complete other purchasing requests.
c. Sometimes vendors/consultants may change terms and sign contracts without advising that changes have been made on their end.
i. We must review and make sure that the same contract that was sent to them is being signed and returned to us.
d. Purchasing will forward the contract to the City Clerk for the City Attorney’s Signature and City Manager’s signature, via DocuSign, unless a wet signature is required. e. Once signed by the City Manager and finalized, everyone should receive a copy of the sign.

5. Agreement Amendments are generally Processed for the following reasons:
a. Rate Adjustments
i. Processed when a vendor has requested a rate increase. If rates are increased in a contract, an amendment needs to be processed. The amendment should contain the new rates along with indicating the new percentage of the rate increase.
b. Expiration Date Extensions
i. If an agreement is needed for a longer period of time, then an amendment needs to be processed. This will include contracts that have options to extend. If the City is going to use the option to extend, an amendment needs to be generated and stated that the City is using the option to extend the agreement. c. Scope of Work Changes
i. If the scope of services is being altered or information is being added to the SOW, then an amendment should be processed. Vendors are already obligated to provide the services/materials that are in their executed agreements, they are not obligated to provide more than what is stated in their SOW, this is why an amendment is needed.
d. Services/Delivery Schedule Changes
i. If a vendor has a set schedule of days and time that are in their contract and they want to make changes to that schedule, then the department needs to agree to that change and process an amendment.
e. Typos and Errors
i. When there is an error in an agreement it needs to be corrected and an amendment may need to be processed; an error may change the meaning of terms and conditions in a contract. Contact Legal Services for review to determine if the error has a material impact on the agreement or contract.