Mayor and City Council
May 15, 2024

RESOLUTION NO. 2024-109

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

AUTHROIZING THE DIRECTOR OF FINANCE AND

MANAGEMENT SERVICES TO APPROVE AN INCREASE

IN THE PURCHASE ORDER FOR FAIRVIEW FORD FROM
$230,000 TO A NEW NOT TO EXCEED AMOUNT OF
$300,000; AND AUTHORIZING THE EXTENSION OF THE

PURCHASE ORDER AGREEMENT WITH THE OPTION

FOR ANOTHER FIVE YEARS OF SINGLE YEAR ANNUAL
RENEWAL, THROUGH FISCAL YEAR 2028/2029.

WHEREAS, on March 2, 2022, the Mayor and City Council adopted Resolution No. 2022- 49 approving annual agreement with Fairview Ford of a not to exceed amount of $230,000, with an option for single year renewals through FY26/27; and WHEREAS, the Public works Department oversees the maintenance of light & heavy equipment parts, services, and body repair for the City vehicles; and WHEREAS, the timely repair of fleet vehicles is crucial for operational effectiveness and ensuring the safety of our law enforcement officers. Therefore, adopting this resolution will allow for the timely repair of fleet vehicles.

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

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The Mayor and City Council hereby authorize the Director of Finance & Management Services to approve an increase in the purchase order for Fairview Ford from $230,000, to a new not to exceed amount of $300,00.

SECTION 3. The City Manager or designee hereby authorizes the extension of the purchase order agreement with the option for another five (5) years of single year renewal, through fiscal year 2028/2029.

FY2024/2025; FY2025/2026; FY2026/2027; FY2027/2028; FY 2028/2029 $300,000 $300,000 $300,000 $300,000 $300,000
SECTION 4. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that Packet Page. 1996
Resolution No. 2024-109
Resolution 2024-109
May 15, 2024

the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 5. 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 6. 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 15th day of May 2024.

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. 2024-109
Resolution 2024-109
May 15, 2024

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. 2024-109, adopted at a regular meeting held on the 15th day of May 2024 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 ____________ 2024.

Genoveva Rocha, CMC, City Clerk
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CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: May 15, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager;
Lynn Merrill, Director of Public Works, Operations and
Maintenance
Department: Public Works
Subject: Approve Final Tract Map No. 17329-4 (Ward 5)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, Adopt Resolution No. 2024-110:

1. Approving Final Tract Map No. 17329-4 (Subdivision 05-40) involving the subdivision of the parcel (APN 0348-111-51) containing 24.68 acres into twenty (20) single family lots at the northwest corner of N. Little League Drive and W. Ohio Avenue; and

2. Accepting the public dedications as set forth on said map; and

3. Authorizing execution of the standard form of agreement for the subdivision improvements.

Executive Summary
On May 9, 2023, the Planning Commission approved Development Permit Type-P 22-06, allowing the development of 20 single-family residences on a project site containing approximately 24.68 acres within previously approved Tentative Tract Map 17329. The proposed project consists of subdividing one parcel containing approximately 24.68 acres into twenty (20) single-family residential lots. Pursuant to the requirements of Chapter 19.48 (Final and Parcel Maps) of the City of San Bernardino Development Code and the Subdivision Map Act, the applicant has submitted a Final Map. The City Engineer has reviewed the proposed Final Map for Tract No. 17329-4 and determined that the Final Map is in compliance with the Subdivision Map Act, the City’s ordinances regarding subdivisions, and all conditions Packet Page. 2017
of approval, and therefore recommend the approval of the Final Map by the Mayor and City Council.

Background
On February 22, 2006, the Planning Commission adopted a Mitigated Negative Declaration for the approval of Subdivision 05-40 (Tentative Tract Map 17329) allowing the subdivision of a parcel containing approximately 55.76 acres into 94 single family lots. On September 22, 2020, the Planning Commission approved Development Permit Type-P 20-05, allowing the development of 74 single-family residences on a project site containing approximately 31.08 acres within previously approved Tentative Tract map 17329. On May 9, 2023, the Planning Commission approved Development Permit Type-P 22-06, allowing the development of 20 singlefamily residences on a project site containing approximately 24.68 acres within previously approved Tentative Tract Map 17329.

Discussion
The proposed project consists of subdividing one parcel containing a total of approximately 24.68 acres into twenty (20) single-family residential lots. The proposed single-family lots are part of a planned residential development, which was approved on May 9, 2023, by the Planning Commission as Development Permit Type-P 22-06 per Resolution 2023-020.

Pursuant to the requirements of Chapter 19.48 (Final and Parcel Maps) of the City of San Bernardino Development Code and the Subdivision Map Act, the applicant has submitted a Final Map for Mayor and City Council action and final acceptance. The City Engineer has reviewed the proposed Final Map for Tract No. 17329-4 and determined that the Final Map is in compliance with the Subdivision Map Act, the City’s ordinances regarding subdivisions, and all conditions of approval. 2021-2025 Strategic Targets and Goals
The adoption of a Resolution approving the Final Map for Tract No. 17329-4 aligns with Strategic Goal No. 1 Improved Operational & Financial Capacity. Specifically, the transformation of existing vacant underutilized properties into productive single-family residential lots for the purpose of developing single-family residential homes meets the City’s economic development goals.

Fiscal Impact
There will be no fiscal impact. All public infrastructure improvements required for this subdivision will be constructed by the developer at its sole cost. City services will be provided to this project similar to other residential projects in the City.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, Adopt Resolution No. 2024-110:

1. Approving Final Tract Map No. 17329-4 (Subdivision 05-40) involving the subdivision of the parcel (APN 0348-111-51) containing 24.68 acres into Packet Page. 2018
twenty (20) single family lots at the northwest corner of N. Little League Drive and W. Ohio Avenue; and

2. Accepting the public dedications as set forth on said map; and

3. Authorizing execution of the standard form of agreement for the subdivision improvements
Attachments
Attachment 1 Resolution 2024-110
Attachment 2 Final Map for Tract 17329-4
Attachment 3 Tract 17329-4 Improvement Agreement
Attachment 4 Project Bonds
Attachment 5 Resolution 2023-020
Ward:

Fifth Ward
Synopsis of Previous Council Actions:

February 22, 2006, Planning Commission approved Subdivision 05-40 (Tentative Tract Map 17329).

May 9, 2023, Planning Commission approved Development Permit- P 22-06 and adopted Resolutions 2023-020 attached.

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Resolution No. 2024-110
Resolution 2024-110
May 15, 2024

RESOLUTION NO. 2024-110

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,
APPROVING FINAL MAP FOR TRACT NO. 17329-4
(SUBDIVISION 05-40) INVOLVING THE SUBDIVISION OF
A PROJECT SITE CONTAINING APPROXIMATELY 24.68
ACRES INTO 20 SINGLE-FAMILY RESIDENTIAL LOTS
LOCATED ON THE NORTHWEST CORNER OF N. LITTLE
LEAGUE DRIVE AND W. OHIO AVENUE; ACCEPTING

THE PUBLIC DEDICATIONS AS SET FORTH ON SAID
MAP; AND AUTHORIZING EXECUTION OF THE

STANDARD FORM OF THE SUBDIVISION
IMPROVEMENTS.

WHEREAS, On February 22, 2006, the Planning Commission adopted a Mitigated Negative Declaration for the approval of Subdivision 05-40 (Tentative Tract Map 17329) allowing the subdivision a parcel containing approximately 55.76 acres into 94 single family lots, and WHEREAS, On September 22, 2020, the Planning Commission approved Development Permit Type-P 20-05, allowing the development of 74 single-family residences on a project site containing approximately 31.08 acres within previously approved Tentative Tract map 17329, and WHEREAS, On November 18, 2022, the Planning Commission approved Development Permit Type-P 22-06, allowing the development of 20 single-family residences on a project site containing approximately 24.68 acres within previously approved Tentative Tract Map 17329, and WHEREAS, the City Engineer has reviewed the approved Tentative Tract Map 17329 with conditions of approval, and has analyzed the Final Map for Tract No. 17329-4 in order to ensure consistency between the approved Tentative Tract Map 17329 with adopted conditions of approval and the final map requirements, and has determined that the Final Map for Tract No. 17329-4 has been found to be in substantial conformance with the approved Tentative Tract Map 17329, and
WHEREAS, the Mayor and City Council find that proposed Tract Map 17329-4, located on the northwest corner of N. Little League Drive and W. Ohio Avenue within the Residential Medium (RM) zone together with the provisions of their design and improvement is consistent with the General Plan of the City of San Bernardino.

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

SECTION 1. The above recitals are true and correct and are incorporated herein by this reference.

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Resolution No. 2024-110
Resolution 2024-110
May 15, 2024

SECTION 2. The City Manager of the City of San Bernardino is authorized to execute the standard form Subdivision Improvement Agreement with Verdemont Ranch 20, LLC. attached and incorporated herein as Attachment 3, for the improvements in said Tract Map as required by Title 19 of the San Bernardino Municipal Code and the California Subdivision Map Act. The time for performance is as specified in the Agreement. Said improvements are specifically described and shown on Drawings approved and on file in the office of the Public Works Department of the City of San Bernardino.

SECTION 3. A Mitigated Negative Declaration was adopted with the approval of Subdivision 05-40 (Tentative Tract Map 17329) on February 22, 2006. No further changes to the environmental conditions of the subject site or the proposed subdivision have occurred. Therefore, the previous environmental determination adopted for Subdivision 05-40 (Tentative Tract map 17329) remains valid, pursuant to Section 15162 (c) (Subsequent Negative Declarations) of the California environmental Quality Act.

SECTION 4. The Final Map of said Tract Map is hereby approved and the City of San Bernardino hereby accepts as public property all dedications within the subdivision as shown on said Tract Map for streets, alleys (including access rights), drainage and other public easements.

As a condition precedent to approval of Tract Map, the Subdivider shall first execute the Agreement referenced in Section 2 hereof for the improvements within said Tract Map limits.

SECTION 5. 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 6. 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 15th day of May 2024.

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. 2024-110
Resolution 2024-110
May 15, 2024

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. 2024-110, adopted at a regular meeting held on the 15th day of May 2024 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 16th day of May 2024.

Genoveva Rocha, CMC, City Clerk
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DISCUSSION
City of San Bernardino
Request for Council Action
Date: May 15, 2024
To: Honorable Mayor and City Council Members
From: Lynn Merrill, Director of Public Works
Department: Public Works
Subject: Consideration of the Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid
Waste Collection, Processing and Disposal Services
with Burrtec Waste Industries, Inc. (All Wards)
Recommendation:

It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2024-111 approving the Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc.

Executive Summary
Consideration of approval of the Third Amendment to the Franchise agreement between the City of San Bernardino and Burrtec Waste Industries, Inc. to continue the current $26.42 per month rate for Single Family and Multi-Family Dwelling units and all other per month rates as currently set forth; implementing the SB 1383 Short-Lived Climate Pollutants Act of 2016 to require residential and commercial waste generators to participate in organic recycling programs, which includes the option of extending the existing franchise agreement from March 31, 2026 to March 31, 2031.

Background
The City of San Bernardino has an exclusive Franchise Agreement (Agreement) with Burrtec Waste and Recycling Services, LLC (Burrtec) to provide waste and recycling services to all residents and businesses in the City, effective April 1, 2016 through March 31, 2026. The initial rate set forth for Single or Multi-Family Dwellings for the period April 1, 2016 through June 30, 2017 was $22.84 per month. The original Franchise Agreement was subsequently amended twice. Amendment Number 1 made adjustments to the list of City owned vehicles that were originally purchased by Burrtec, while Amendment Number 2 made a further adjustment in the list of City Packet Page. 2095
owned vehicles to adjust for vehicles that were either retained by the City or had been previously disposed of by the City. Both Amendments Number 1 and Number 2 were made in January of 2016 and did not affect the Franchise Agreement as originally approved by the City.

Under Section 21.1.3 of the Franchise Agreement, Burrtec is allowed to submit a proposed rate adjustment and rate schedule to the City Manager for review by March 1, of each agreement year. The Agreement also established a Maximum Annual Increase of no more than 5% per year, and then any amount above 5% or below 0% were carried forward. These rates would become effective July 1st of each year.

Senate Bill (SB) 1383, the Short-Lived Climate Pollutants: Organic Methane Waste Emissions Reduction Act (Lara, Chapter 395, Statutes of 2016), was passed by the Legislature to reduce greenhouse gases produced by organic material in the waste stream. The new legislation has a large impact on services the City is required to provide to its residents and businesses (by January 2022). Because these services were not included in the current agreement with Burrtec, an amendment is now required to incorporate them.

In 2021, the City approved a rate adjustment which increased the Single Family and Multi-Family Dwelling rate from $22.84 to $26.42 per month. In 2022, a CPI adjustment was deferred due to negotiations with Burrtec. Effective in late 2022, the City and Burrtec commenced negotiations relating to the implementation of the SB1383 Residential Program and a subsequent rate adjustment as a result of changes in law. An initial public hearing was scheduled for February 15, 2023 and appropriate Proposition 218 notices were released 45-days prior to the February 2023 hearing; however, this hearing was closed and void due to inadequate noticing and a subsequent public hearing notice was established, setting a May 17, 2023 hearing date. The proposed rate for Single Family and Multi-family dwelling units was proposed to be $37.97. At the May 17, 2023 Council meeting, Council directed staff to continue the Public Hearing to June 21, 2023 and to conduct additional negotiations with Burrtec for a lower rate. On June 31, 2023, staff requested that the Public Hearing be again continued to July 19, 2023. On September 6, 2023, staff again requested that the Public Hearing be continued to January 17, 2024 and staff advised that they had retained R3 Consulting Group to conduct the rate analysis and provide draft franchise Agreement Amendment Language. R3 Consulting Group was retained in September 2023. At the January 17, 2024, Council meeting, staff requested that the Public Hearing process be terminated, and that a new rate proposal be brought forward by May 1, 2024.

The City contracted with R3 Consulting Group, Inc. (R3 Consulting), a nationally recognized solid waste consulting firm. Over the last seven months, R3 Consulting has assisted the City in negotiations. Staff has worked with R3 Consulting to complete a thorough review of the Burrtec Agreement, identify changes that needed to be made to implement SB 1383, and negotiate a draft amended Agreement to incorporate these changes.

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A condition of the franchise agreement, Section 4.3 “Term Extensions” permits the City to negotiate at the City’s discretion, one, five-year extension of the franchise agreement, extending the term of the agreement from March 31, 2026, to March 31, 2031. The City established an “Exclusive Negotiating Period” with the franchise hauler that commenced on April 1, 2023, and ended no later than March 31, 2024.

At the January 17, 2024, Council meeting, staff advised the Council that it was expecting to request solicitation of new solid waste and recycling services prior to expiration of the existing contract on March 31, 2026. Based on business considerations, on March 29, 2024, Burrtec submitted a proposal to retain the existing rates in exchange for the City exercising the term adjustment. Staff and R3 reviewed this revised proposal from Burrtec and determined that this new proposal should be considered. The key elements of the proposal are set forth in the Discussion section.

Discussion
REFUSE RATES – Burrtec has proposed to hold the residential refuse rates to the current monthly rate of $26.42 through June 30, 2025. This means that the City of San Bernardino will have the lowest residential monthly rates of any of the cities within the County area. Staff conducted a survey of refuse rates in the larger San Bernardino and Riverside metropolitan areas, and the result of the survey are shown in the table in Exhibit 1. As shown in Exhibit 1, Residential rates for Single Family dwellings currently range from $28.08 for Loma Linda to $40.77 per month for Redlands. The average residential refuse rate among the 18 cities is $34.51.

The proposed rate set forth by Burrtec at $26.42 per month for FY24-25 would place the City at the absolute lowest rate in the Inland Empire among the 18 surveyed cities. This rate would also serve as the base rate for additional rate increases, starting in July 2025 and would be capped at 5% for CPI, which means that the FY25-26 residential rate would be no more than $27.74 per month.

SB1383 IMPLEMENTATION – Burrtec proposes to implement the SB1383 Residential Program, effective July 1, 2024. This will bring the City into compliance with this State requirement and will prevent any potential enforcement efforts by the State, including but not limited to levying a $10,000 per day fine against the City.

STREET SWEEPING SERVICE ISSUES – Burrtec has retained a new street sweeping contractor who is fully compliant with the requirements of the street sweeping program, including Global Position Systems. This will allow the City to better monitor the sweeping program, including complaint resolution.

PERIOD OF PERFORMANCE – In order to implement this proposal, Burrtec is requesting that the City approve the five-year extension of the service agreement. This would mean that the current agreement, which is set to expire on March 31, 2026, will Packet Page. 2097
be extended through March 31, 2031.

Staff and R3 have reviewed the proposed terms which are set forth in the attached Third Amendment of the Contract. Staff recommends the proposed amendment as it offers the best value to the City’s rate payers, makes more staff resources available to achieve high priority goals, avoids costly processing and ensures immediate legal compliance with state laws that could otherwise result in costly fines to the City. If the Third Amendment to the Franchise Agreement is approved, there will be no necessity of holding a Public Hearing in 2024 to adopt refuse rates, because the rates would remain the same as currently in place. A Public Hearing would be necessary in May 2025, if a rate increase is sought by Burrtec for that period; however, the maximum increase that would be proposed would be 5% as set forth in 21.1.3b of the existing franchise agreement plus a $2.60 per month SB1383 program fee. This fee is included in the existing $26.42 service fee.
2021-2025 Strategic Targets and Goals
Adoption of the proposed Third Amendment to the Franchise Agreement aligns with Key Target No. 3c: Improve Quality of Life by evaluating and enhancing the quality of public safety services and Key Target No. 3d: Improve Quality of Life by improving the City’s appearance, cleanliness, and attractiveness.

Fiscal Impact
There will be no impact to the General Fund. Revenues to the General Fund shall remain the same.

Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2024-111 approving the Third Amendment to the City’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc.

Attachments
Attachment 1 – Table of Refuse Rates.

Attachment 2 – Resolution No. 2024-111
Attachment 3 – Attachment 3 - Third Amendment to the Exclusive Franchise Agreement
Attachment 4 – Third Amendment Exhibit 1 - City of San Bernardino - Current Rates 2024
Ward:

All Wards
Synopsis of Previous Council Actions:

January 25, 2016 – Resolution of the Mayor and City Council of San Bernardino approving a ten-year Exclusive Franchise Agreement for Integrated Solid Waste Packet Page. 2098
Collection, Processing and Disposal Services with Burrtec Waste Industries, Inc.

December 7, 2022 - Notice of Intent to Conduct a Public Hearing on December 7, 2022, to Consider Adjusting the Maximum Permitted Service Rates for Integrated Solid Waste Collection, and Organic Waste Collection, Processing and Disposal Services, Street Sweeping, and Right-of-Way Cleanup Service.

February 15, 2023 - 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 (All Wards).

May 17, 2023 - 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 (All Wards) June 21, 2023 - 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.

July 19, 2023 – Continuation to September 6, 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.

September 6, 2023 - Continuation, to January 17, 2024, 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.

January 17, 2024 - Cancellation of January 17, 2024, 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.

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EXHIBIT 1 – Table of Refuse Rates
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Resolution No. 2024-111
Resolution 2024-111
May 15, 2024

RESOLUTION NO. 2024-111

RESOLUTION OF THE MAYOR AND CITY COUNCIL OF

THE CITY OF SAN BERNARDINO, CALIFORNIA,

APPROVING THIRD AMENDMENT TO THE EXCLUSIVE

FRANCHISE AGREEMENT FOR INTEGRATED SOLID

WASTE COLLECTION, PROCESSING, AND DISPOSAL
SERVICES WITH BURRTEC WASTE INDUSTRIES, INC.,

AND FINDING THIS ACTION EXEMPT FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, Burrtec Waste Industries, Inc. (“Burrtec”) provides refuse, recycling, and organic waste collection, procession and disposal, street sweeping, and right-of-way clean up services are provided to the City of San Bernardino (“City”) pursuant to an exclusive franchise agreement with the City (“Agreement”); and,
WHEREAS, Burrtec is required to provide such solid waste services (“Services”) as set forth in the Agreement; and
WHEREAS, since the approval of the Agreement, California law changed to now require the City to implement additional solid waste diversion programs; and WHEREAS, Burrtec will continue to provide Services that comply with regulations to implement SB 1383 (Chapter 395, Statutes of 2016) (“SB 1383 Regulations”), to the City; and WHEREAS, pursuant to Section 33.8 of the Agreement, the Agreement may only be amended by written agreement signed by both the City and Contractor; and WHEREAS, the SB 1383 Short-Lived Climate Pollutants Act of 2016, Public Resources Code Sections 42652, et seq. and any regulations adopted by CalRecycle to implement it as they may be amended to require residential and commercial waste generators to participate in organic recycling programs; and
WHEREAS, the SB 1383 Regulations require the City to implement Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements; and, the City has chosen to delegate some of its responsibilities to Contractor, acting as the City’s designee, and Contractor desires to take on these responsibilities; and WHEREAS, The Parties heretofore desire to extend the Term of Agreement from March 31, 2026, to March 31, 2031; and,
WHEREAS, the Parties now desire to modify the Agreement to implement changes required by the SB 1383 Regulations and Term of Agreement.

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Resolution No. 2024-111
Resolution 2024-111
May 15, 2024

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

SECTION 1. That the foregoing Recitals are true and correct and are incorporated herein by this reference.

SECTION 2. The City Council hereby approves the Third Amendment to the City of San Bernardino’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services with Burrtec Waste Industries, Inc., attached hereto as Exhibit A and incorporated herein by this reference.

SECTION 3. This Resolution is not subject to the requirements of California Environmental Quality Act (“CEQA”). The approval of Amendment No. 1 is not a “project” within the meaning of Section 15378 of Title 14 of the California Code of Regulations (“State CEQA Guidelines”) because it has no potential for resulting in direct or indirect physical change in the environment. The documents and materials that constitute the record of proceedings on which these findings have been based are located at 215 North “D” Street, San Bernardino, CA 92401. The custodian for these records is the City Clerk of the City.

SECTION 4. If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution 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 Resolution or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.

SECTION 5. This Resolution shall take effect immediately upon adoption.

SECTION 6. The City Clerk shall attest and certify to the passage and adoption thereof.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 15th day of May 2024.

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. 2024-111
Resolution 2024-111
May 15, 2024

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. 2024-111, adopted at a regular meeting held on the 15th day of May 2024 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 16th day of May 2024.

Genoveva Rocha, CMC, City Clerk
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THIRD AMENDMENT TO THE CITY OF SAN BERNARDINO’S EXCLUSIVE

FRANCHISE AGREEMENT FOR INTEGRATED SOLID WASTE

COLLECTION, PROCESSING, AND DISPOSAL SERVICES
WITH BURRTEC WASTE INDUSTRIES, INC.

This Third Amendment to the City of San Bernardino’s Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services with Burrtec Waste Industries, Inc. (“Third Amendment”) is made and entered into as of May 15, 2024 (“Effective Date”) by and between the City of San Bernardino, a charter city and municipal corporation (“City”) and Burrtec Waste Industries, Inc. a California corporation organized under the laws of the State of California (“Contractor”). City and Contractor are sometimes referred to herein individually as a “Party” and collectively as “Parties.”

RECITALS
A. WHEREAS, the City and Contractor entered into an Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services dated January 25, 2016, as amended by the First Amendment to Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services and the Second Amendment to Exclusive Franchise Agreement for Integrated Solid Waste Collection, Processing, and Disposal Services (“Agreement”), for the purpose of providing the collection, recycling, diversion and disposal of Solid Waste from Service Units in the City of San Bernardino; and B. WHEREAS, pursuant to Section 33.8 of the Agreement, the Agreement may only be amended by written agreement signed by both the City and Contractor; and C. WHEREAS, the SB 1383 Short-Lived Climate Pollutants Act of 2016, Public Resources Code Sections 42652, et seq. and any regulations adopted by CalRecycle to implement it as they may be amended to require residential and commercial waste generators to participate in organic recycling programs; and
D. WHEREAS, the SB 1383 Regulations require the City to implement Collection programs, meet Processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements; and, the City has chosen to delegate some of its responsibilities to Contractor, acting as the City’s designee, and Contractor desires to take on these responsibilities; and E. WHEREAS, the Parties now desire to modify the Agreement to implement changes required by the SB 1383 Regulations.

NOW, THEREFORE, in consideration of the above recitals and the mutual covenants, conditions, and promises contained in this Third Amendment and the Agreement, the Parties mutually agree as follows:

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

2. Definitions. The Definitions as stated in the Section 1 shall be amended or added to read as follows:
a. 1.19 “Consumer Price Index or CPI” means the twelve (12) month annual average percentage change the All Urban Consumers Index (CPI-U), Not Seasonally Adjusted, All Items, Riverside-San Bernardino-Ontario, CA (CUURS49CSA0), as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the most calendar year, compared to the prior calendar year.
b. 1.27 “ Food Waste” means Source Separated Food Scraps and Food Soiled Paper.

With respect to Single-Family Dwelling Service Units and Multi-Family Dwelling Service Units, Food Waste is a subset of source-separated Organic Container Waste. Edible food separated for food recovery shall not be considered Food Waste.
c. 1.34 “Organic Waste” means Solid Wastes containing material originated from living organisms and their metabolic waste products including, but not limited, to, food, yard trimmings, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a).
d. 1.48 “Term” means the operative life of this Agreement as stated in Section 4.2. e. “Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4), as may be amended from time to time.
f. “Edible Food” means food intended for human consumption. For the purposes of this Agreement, Edible Food is not Solid Waste if it is recovered and not discarded.

Nothing in this Agreement requires or authorizes the recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this Agreement.
g. “Excluded Waste” means hazardous substances, Hazardous Waste, infectious waste, designated waste, volatile, corrosive, medical Waste, infectious, regulated radioactive waste, and toxic substances or material that facility operator(s), which receive materials from the City and its generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal, be a violation of local, State, or Federal law, regulation, or ordinance, including: land use Packet Page. 2105

restrictions or conditions, waste that cannot be disposed of in Class III Landfills or accepted at the facility by permit conditions, waste that in the City’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Contractor or City to potential liability: but not including de minimis volumes or concentrations of waste of a type and amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe collection, processing, recycling, treatment, and disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code.
h. “Food Scraps” means all food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes liquids, fats, oils, and grease when such materials are Source Separated from other Food Scraps.
i. “Food-Soiled Paper” means compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons. j. “Food Recovery Organization” is as defined in 14 CCR Section 18982(a)(25). k. “Hauler Route(s)” means the designated itinerary or sequence of stops for each segment of the CITY’s collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5).
l. “Prohibited Container Contaminants” means the following: (i) discarded materials placed in the Recyclable Materials Container that are not identified as acceptable Source Separated Recyclable Materials for the Recyclable Materials Container; (ii) discarded materials placed in the Organic Waste Container that are not identified as acceptable Source Separated Organic Waste for the Organic Waste Container; (iii) discarded materials placed in the Solid Waste Container that are acceptable Source Separated Recyclable Materials and/or Source Separated Organic Waste to be placed in Organic Waste Container and/or Recyclable Materials Container; and (iv) Excluded Waste placed in any Container. m. “SB1383” means the Short-Lived Climate Pollutants Act of 2016, Public Resources Code Sections 42652, et seq. and any regulations adopted by CalRecycle to implement it as they may be amended.
n. “Source Separated” means materials, including commingled Recyclable Materials, that have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or Processing those materials for Recycling or Reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products which meet the quality standards necessary to be used Packet Page. 2106

in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the Agreement, Source Separated shall include separation of materials by the generator, property owner or tenant into different Containers for the purpose of collection such that Source Separated materials are separated from Solid Waste for the purposes of collection and processing. o. “Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982:

A. Supermarket.

B. Grocery Store with a total facility size equal to or greater than 10,000 square feet.

C. Food Service Provider.

D. Food Distributor.

E. Wholesale Food Vendor.

If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this Agreement.
p. “Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982:

A. Restaurant with 250 or more seats, or a total facility size equal to or greater than 5,000 square feet.

B. Hotel with an on-site food facility and 200 or more rooms.

C. Health facility with an on-site food facility and 100 or more beds.

D. Large Venue (as defined in 14 CCR Section 18982(a)(38)).

E. Large Event (as defined in 14 CCR Section 18982(a)(39)) F. A State agency with a cafeteria with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet.

G. A local education agency with an on-site food facility.

If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(74) shall apply to this Agreement

3. Self-Hauling. Section 2.9 shall be amended in its entirety to read as follows:

2.9 Self-Hauling. Self-hauling is allowed as specified in the San Bernardino Municipal Code. This Agreement does not prohibit such materials which are removed from any Service Unit in the City and which are transported personally by the owner or occupant of such premises to a processing or disposal facility pursuant to the San Bernardino Municipal Code. This Agreement shall not prohibit gardeners and landscapers from Packet Page. 2107

collecting, transporting and composting or disposing of Green Waste, as long as they transport such Green Waste to an Organic Processing Facility, or other site permitted (or exempt from permitting) by CalRecycle, or its successor agency, in accordance with all governing laws and regulations and submit reports required by City. “Self-hauling” shall have the same definition as in Section 8.24.010 of the San Bernardino Municipal Code.

4. Term. Section 4.2 shall be amended in its entirety to read as follows:

4.2.1 Term of Agreement. The term of this Agreement shall expire on March 31, 2031, subject to early termination or extension as may occur pursuant to this Agreement.

5. Term Extension. Section 4.3 shall be amended in its entirety to read as follows:

4.3 Term Extension. At the City’s sole option, City may invite Contractor to meet, confer, and negotiate regarding one 5-Year extension to the Agreement, provided the Term has not been earlier terminated or has already been set for early termination, and Contractor is not then in material breach of the Agreement. The time period to negotiate any term shall commence April 1, 2028, and end no later than March 31, 2029. (“Exclusive Negotiating Period”) All terms and conditions of the Agreement shall be open to negotiation, but neither Party shall be obligated to agree to an extension of the Term or to any modification of the terms and conditions of the Agreement. In the event, the Parties have not mutually approved an agreement extending the Term by the end of the Exclusive Negotiating Period, then there shall be no further obligation to meet, confer, or negotiate with regard to such extension, and City shall have the right to conduct any solicitation process, negotiate with any other service providers, or to award or approve a contract to any other service provider or to recommence its own Integrated Solid Waste Collection, Processing and Disposal Services, as it may deem appropriate in its sole and absolute discretion.

6. Container Contamination Minimization. Section 6.9.1 is hereby added to read as follows:

6.9.1 Container Contamination Minimization. Contractor shall assist in minimizing contamination by helping to educate customers on acceptable and non-acceptable materials, by monitoring the contents of collection Containers, and by refusing to collect containers with visible Prohibited Container Contaminants. Contractor shall, at its sole expense conduct hauler route reviews each calendar year for Prohibited Container Contaminants in Containers in a manner that is deemed safe by the Contractor, is approved by the City, and is conducted in a manner that results in all hauler routes being reviewed, in accordance with 14 CCR Section 18984.5(b).

6.9.1.1 Number of Containers to Review. Contractor shall visually inspect the contents of all Solid Waste, Recyclable Materials, and Organic Waste Containers for a Packet Page. 2108

sufficient number of residential and commercial accounts to fully comply with the associated SB 1383 requirements.. At a minimum, the Contractor shall inspect, at a minimum, 3% of all residential Solid Waste, Recyclable Materials, and Organic Waste Containers, and 10% of all commercial generator locations, including multi-family units.

The Containers shall be randomly selected by a method approved by the City.

6.9.1.2 Route Review Methodology. Contractor shall develop a hauler route review methodology that complies with the requirements of 14 CCR Sections 18984.5(b).

Contractor shall submit its proposed hauler route review methodology for the coming contract year (July – June) to the City no later than July 1 of each year, describing its proposed methodology for the calendar year and schedule for performance of each hauler route review. Company’s proposed hauler route review methodology shall include its plan for container inspections and shall also include its plan for prioritizing the inspection of customers that are more likely to be out of compliance. City shall review, comment on, and approve the proposed methodology. Contractor may commence with the proposed methodology upon approval. If the City notifies the Contractor that the methodology is inadequate to meet the requirements of SB 1383, Contractor shall, at its sole expense, revise the methodology and, after obtaining City approval, conduct additional hauler route reviews, increased container inspections, or implement other changes using the revised procedure. Contractor shall implement and perform route reviews per the approved methodology beginning July 1, 2024.

6.9.1.3 Scheduling. The City may request, and Contractor shall accept, modifications to the schedule to permit observation by the City subject to reasonable safety protocols. In addition, Contractor shall provide email notice to the City no less than ten (10) working days prior to each scheduled hauler route review that includes the specific time(s), which shall be within the City’s normal business hours, and location(s).

6.9.1.4 Documentation. Contractor may document contamination with still pictures or video, and will notify the customer of the contamination and recycling requirements. Contractor may, at its discretion, collect the Container as Recyclable Materials, Organic Waste, or as Solid Waste.

6.9.1.5 Reporting Requirements. Contractor shall maintain records and report to the City on contamination monitoring activities and actions taken. Contractor shall collaborate with the City to obtain records and submit the AB 939/SB 1383 Electronic Annual Report (EAR) on behalf of the City to CalRecycle by August 1st of each year starting in 2024. The submitted EAR shall meet the requirements per Title 14 California Code of Regulations (14CCR) Section 18794.0.

6.9.1.6 SB 1383 Monitoring and Inspections. Contractor shall perform customer compliance reviews described in this subsection annually, as of the Effective Date, unless otherwise noted.

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6.9.1.7 Commercial Generator Compliance Reviews. Contractor shall complete a compliance review of all commercial businesses that generate two (2) cubic yards or more per week of solid waste, including organic waste, to determine their compliance with: (i) generator requirements under the City Code and this Agreement; and, (ii) if applicable for the customer, self-hauling requirements per 14 CCR Section 18988.3. The compliance review shall mean a “desk” review of records to determine customers’ compliance with the above requirements and does not necessarily require on-site observation of service.

6.9.1.8 Compliance Review Process. Contractor shall conduct inspections and/or contact non-compliant entities described in Section 6.9.1.7 at a minimum of once per year or as directed by City to adequately determine the entities’ overall compliance with SB 1383. City may require the Contractor to prioritize inspections of entities that the City determines are more likely to be out of compliance.

6.9.1.9 Non-Compliant Entities. When compliance reviews are performed by Contractor pursuant to this subsection, Contractor shall provide City-approved educational materials, in response to violations. Contractor shall provide these educational materials to the non-compliant customers by mail or immediately upon determination of non-compliance if such non-compliance is determined during an inspection or hauler route review. Contractor shall document the non-compliant customers and the date and type of education materials provided and report such information to the City. Beginning January 1, 2024, the Contractor shall document noncompliant customers determined through Contractor’s compliance reviews, and shall report all customers with SB 1383 violations to the City. The City shall be responsible for subsequent enforcement action.

6.9.1.10 Tier 1 and Tier 2 Edible Food Generators and Food Recovery Organizations. Contractor shall inspect each Tier 1 and Tier 2 edible food generator and food recovery organization within the City annually to determine their compliance with SB 1383 and take reasonable steps to ensure generators are educated on their compliance requirements with regulations and the City is notified of non-compliant entities.

6.9.1.11. Documentation of Inspection Actions. The Contractor shall generate a written or electronic record and maintain documentation for each inspection, including Tier 1 and Tier 2 edible food generators and food recovery organizations, hauler route review, and compliance review conducted. Contractor shall provide a copy of that documentation to the City as part of its Annual Report.

6.9.1.12 Documentation of SB 1383 Non-Compliant Complaints. Contractor shall maintain a computer database of all oral and written SB 1383-related non-compliant complaints reported to Contractor from customers or other persons. Contractor shall provide a copy of the Recyclist Program information collected to the City as part of its Annual Report.

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6.9.1.12.1 Reports of SB 1383-Noncompliant Complaints. For reports received in which customers or other persons allege that an entity is in violation of SB 1383 requirements, Contractor shall document such complaint investigations.

Contractor shall provide this information in a brief complaint report to the City for each SB 1383-noncompliant complaints within five (5) working days of receipt of such complaint, and a quarterly summary report of SB 1383-noncompliant complaints.

6.9.1.12.2 Investigation of SB 1383-Noncompliant Complaints. Contractor shall assist City in meeting its obligation to investigate non-compliant complaints by commencing an investigation within thirty (30) days of receiving notice of a complaint in the following circumstances: (i) upon Contractor receipt of a complaint that an entity may not be compliant with SB 1383 and if City determines that the allegations against the entity, if true, would constitute a violation of SB 1383; and, (ii) upon City request to investigate a complaint received by City, in which City determines that the allegations against the entity, if true, would constitute a violation of SB 1383. Contractor is required to investigate complaints against customers and generators, including Tier One and Tier Two Commercial Edible Food Generators, against Edible Food recovery organizations, Edible Food recovery services, and other entities regulated by SB 1383. Contractor shall investigate the complaint by:
i. Reviewing the service level of the customer (if the entity is a customer of the Contractor);
ii. Reviewing the waiver list, if applicable, to determine if the entity has a valid, City-approved de minimis or physical space constraint waiver; iii. Reviewing the self-haul registration list, if applicable, to determine if the entity has registered and reviewing the entities reported self-haul information;
iv. Inspecting premises of the entity identified in the complaint notice, if warranted; and,
v. Contacting the entity to gather more information, if warranted;
vi. Affixing a City-approved notice of non-compliant complaint report on the customer’s container that includes SB 1383 generator requirements and, if applicable, provides a City-approved deadline for correction.

6.9.1.11.3 Reporting. Within ten (10) days of completing an investigation of an SB 1383-noncompliant complaint, Contractor shall submit to City an investigation complaint report that documents the customer account in question, the nature of the Packet Page. 2111

complaint, the investigation performed, and recommends to City whether or not the entity investigated is in violation of SB 1383 based on the Contractor’s investigation. The City shall make a final determination of the allegations against the entity.

Contractor shall provide to City in its reports a list of all customer non-compliant complaint notices that have not been resolved by Contractor within thirty (30) days of receiving such notice. The Contractor complaint list shall include the customer’s account information, including customer’s then-current service level, the nature of the complaint, and Contractor’s efforts to resolve the complaint. City, or its designee, shall be responsible for investigating such outstanding complaints received by Contractor.

Within three (3) business days of the City’s or its designee’s request, Contractor shall provide City or its designee with customer account information and other documentation that may be useful in the investigation such as records of the customer’s most recent change(s) in service level and other customer service records.

7. Procurement of Recovered Organic Waste. Section 6.15 is hereby added to read as follows:

6.15 Procurement of Recovered Organic Waste. Contractor shall deliver on behalf of the City 3,010 tons of Compost annually \ to a \ locations within the City, or outside of the City’s jurisdictional boundaries, as directed by the City. Contractor agrees to act as a direct service provider on behalf of the City. Contractor shall assist the City in meeting its recovered Organic Waste product procurement target, as required by 14 CCR Section 18993.1 and will assist the City with applicable recordkeeping requirements under 14 CCR Section 18993.2. Recovered Organic Waste products shall comply with 14 CCR 18993.1(f).

8. Conditions of Service. Section 7.1 is hereby amended to read as follows:

7.1 Conditions of Service. Contractor shall provide SFD collection service to all SFD Service Units whose Solid Waste, Recycle Materials, or Organic Waste are properly placed in Carts. Except as set forth in Section 7.8, Contractor shall offer Carts for Solid Waste, Recycle Materials, and Organic Waste in 35-, 64-, and 96-gallon sizes. Contractor shall provide, at its sole expense, a senior discount of ten percent (10%) for 35-gallon Solid Waste Cart service at no cost to the City or other customers. Contractor may offer alternative services to recipients receiving on-premise service. If collection in Carts is not sufficient to accommodate the amount of Solid Waste generated, Contractor may offer Bins or Roll-offs in sizes as allowed under this Agreement.

9. SFD Food Waste Collection Services. Section 7.7.5 (SFD Food Waste Collection Services) is hereby deleted it its entirety and replaced with the following:

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7.7.5 SFD Organic Waste Collection Services. No later than September 1, 2024, Contractor shall provide all SFD accounts with Organic Waste Collection Services, including the collection of food waste.

10. Street Sweeping. A new subsection 11.25 is to be added to Section 11 Street Sweeping and read as follows:

11.25 Review of GPS Data. Contractor shall no less than weekly review GPS data from each street sweeping route to determine if all required street sweeping services have been fully provided. Contractor shall include a written confirmation in each Quarterly Report that the Contractor has reviewed the daily GPS data for all Street Sweeping routes and verified that all routes have been fully completed, as scheduled. If that is not the case, Contractor shall provide a list of any and all exceptions.

11. SB 1383 Outreach and Education. Section 14.9 is hereby added to read as follows:

14.9 SB 1383 Outreach and Education. The Contractor shall conduct a public information program, as directed and approved by the City and meeting the requirements of SB 1383 and the SB 1383 Regulations, to inform and remind residents of the recycling and organic waste programs and their operation. Such program shall include media releases, advertisements, public appearances, community involvement programs to encourage participation in recycling efforts. A program plan shall be submitted to the City prior to July 1 of each contract year for approval. Contractor shall, consistent with 14 CCR Section 18985.1, provide generators with information on properly separating materials, organic waste prevention, on-site recycling, composting, methane reduction benefits, how to recycle organic waste, approved haulers, public health and environmental impacts associated with landfilling organic waste, self-haul requirements, and edible food donation. Contractor shall prepare and distribute public education and outreach materials in non-English languages spoken by a substantial number of the public that are provided organic waste collection services, consistent with the requirements of Government Code section 7295.

Annually Contractor shall provide Tier One and Tier Two Commercial Edible Food Generators with information on the City’s edible food recovery program, generator requirements, and food recovery.

Contractor shall cooperate and coordinate with the City Manager or his or her designee on public education activities to minimize duplicative, inconsistent, or inappropriately timed education campaigns. Contractor shall obtain approval from the City Manager or his or her designee on all Contractor -provided public education materials including, but not limited to: print, radio, television, or internet media before publication, distribution, and/or release. City shall have the right to request that Contractor include City identification and contact information on public education materials and approval of such requests shall not be unreasonably withheld. Contractor shall provide access to the Packet Page. 2113

Recyclist Program during the term of the agreement and will provide the records for up to two years after the agreement ends upon request.

12. Container Labeling.

A new Section 15.17.9 shall be added and read as follow:

15.17.19 Container labeling - All new and replacement Containers shall be SB 1383 compliant as of the Effective Date of this Amendment.

13. Adjustments to Maximum Permitted Service Rates.

All subsections of Section 21.1.3 shall be moved forward one place and renumbered.

What is now subsection a) Annual Adjustment shall be renumbered as subsection b) and the reference to July 1, 2017 in the first sentence changed to July 1, 2026.

A new subsection a) shall be added as follows:
a) July 1, 2025 Rate Adjustment. On July 1, 2025 the following adjustments shall be made to the Current Rates (Exhibit 1) and shall account for the full and total cost of the Contractor’s SB1383 programs and services as provided for in this Amendment. There shall be no recouping or receipt of any revenues by the Contractor for any rate adjustments that did not occur prior to the July 1, 2025 Rate Adjustment described below.
i. Residential Barrel Rates – Residential/MF refuse Barrel Rates shall be adjusted by the most recent annual change in the CPI, plus an additional $2.60 per month for Contractors SB1383 program.
ii. Commercial Refuse Barrel Rates – Commercial Refuse Barrel Rates shall be adjusted by the most recent annual change in the CPI, plus an additional $0.40 per month, per barrel, for Contractors SB1383 program. iii. Commercial Recycling Barrel Rates – Commercial Recycling, Food and Green Waste Barrel Rates shall be adjusted by the most recent annual change in the CPI.
iv. Refuse Bin Rates – Residential, Multi-Family and Commercial Refuse Bin Rates shall be adjusted by the most recent annual change in the CPI, plus an additional $0.38 per collected cubic yard per month for Contractors SB1383 program
v. Recycling Bin Rates – Residential, Multi-Family and Commercial Recycling, Food and Green Waste Bin Rates shall be adjusted by the most recent annual change in the CPI.

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vi. Commercial Compactor Rates – Commercial Compactor Rates shall be adjusted by the most recent annual change in the CPI plus an additional $0.38 per collected cubic yard per month for Contractors SB1383 program vii. Roll-Off – Service Only Rates - Roll-Off Rates shall be adjusted by the most recent annual change in the CPI.
viii. Additional Services Rates. Additional Services Rates shall be adjusted by the most recent annual change in the CPI.

14. Submission of Reports. Section 24.4 shall be amended to read as follows:

24.4 Submission of Reports. Reports shall be submitted to:

Director of Public Works
City of San Bernardino
290 North D Street
San Bernardino, CA 92401

15. Liquidated Damages. The following is added to the table within Section 30.5.5:

LIQUIDATED DAMAGES
Item Amount
z. Failure to provide Containers for SB 1383
Collection service to all customers by July
1, 2025 unless customer is waiting for
waiver approval or has been granted a
waiver.
$500 each week.
aa. Failure to complete annual outreach and
education requirements in accordance
with this Agreement and SB 1383
Regulations by July 1, 2025, and each July
1 st thereafter
$500 per Agreement Year.
bb. Failure to complete annual SB 1383
monitoring requirements by July 1, 2025,
and each July 1st thereafter, in accordance
with this Agreement and SB 1383
Regulations.
$500 per year.
cc. Failure to complete annual calendar
reporting requirements by June 30, 2025,
and each July 1st thereafter, in accordance
with this Agreement and SB 1383
Regulations.
$500 per year.
dd. Failure to contact Customers in response to
complaints within one (1) business day or
to resolve or remedy a Complaint within
$100 per incident
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LIQUIDATED DAMAGES
Item Amount
seven (7) calendar days of receiving such
Complaint.
ff. Failure to issue contamination notices in
accordance with this Agreement and SB
1383 Regulations.
$50 per incident
gg. Failure to conduct compliance tasks (i.e.,
perform route reviews or waste audits) in
accordance with this Agreement and SB
1383 Regulations.
$100 per incident
ii. Failure to perform re-inspections in
accordance with this Agreement and SB
1383 Regulations.
$50 per incident
jj. Submission of a late report required by the
SB 1383 Regulations .
$500 per incident.

16. Compliance with Laws. The following shall be added to the end of Section 25.6 Nothing contained herein shall prohibit Contractor from meeting its compliance requirements by any alternative methods or procedures, provided it complies with SB 1383, the SB 1383 Regulations, and/or any other applicable law, as may be amended from time to time.

17. Notices. Section 33.9 shall be amended to read as follows:

33.9 Notices. All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered or sent by United States certified mail, postage prepaid, return receipt requested, and by email, addressed as follows:

To City: Charles A. Montoya, City Manager
City of San Bernardino
290 North D Street
San Bernardino, CA 92401
Email:

Copy to: Sonia Carvalho, City Attorney
City of San Bernardino
Best Best & Krieger LLP
18101 Von Karman Ave.

Irvine, CA 92612
Email:

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And to: Lynn Merrill, Director of Public Works
City of San Bernardino
290 North D Street
San Bernardino, CA 92401
Email:

To Contractor: Cole Burr, President
Burrtec Waste Industries, Inc.
9890 Cherry Ave.

Fontana, CA 92335

18. Public Records. The heading of Section 33.12 shall be renamed to “33.12 Public Records.”

19. Replacement of Exhibit 1. Exhibit 1 of the Agreement is hereby replaced with the Exhibit 1 attached to this Third Amendment and incorporated by reference herein.

20. Contractor understands and agrees that it shall comply with any changes to the San Bernardino Municipal Code adopted by City necessary or advisable to ensure compliance with SB 1383 and the SB 1383 Regulations and not inconsistent with the terms of this Agreement.

21. Whenever the words “AB 1826” appear in the Agreement, “and SB 1383 (and its implementing regulations)” shall follow.

22. This Third Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

23. This Third Amendment shall affect only the items specifically set forth herein, and all other terms and conditions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the Parties hereto have executed this Third Amendment on the Effective date first herein above written.

CITY CONTRACTOR
CITY OF SAN BERNARDINO BURRTEC WASTE INDUSTRIES, INC.

APPROVED BY:
______________________________ _____________________________ Charles A. Montoya Cole Burr
City Manager President
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APPROVED AS TO FORM:
______________________________
Best Best & Krieger LLP
City Attorney
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Exhibit 1
Maximum Permitted Service Rates
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Burrtec Waste Industries, Inc
City of San Bernardino
EXHIBIT 1
Current Current
Rates Rates
Residential/MF Barrel $ 26.42 Commercial Barrel $ 26.42 Residential 35 Gal Barrel n/a (incl Trash & Recycling Barrel) Residential 35 Gal Barrel Sr n/a
Mobile Home - 3 Barrel Service $ 17.73 Commercial Compactors Mobile Home Complex - 2 Barrel n/a Size Freq
2 cu. yrd. 1 x Wk $ 152.41
Residential Trash Bins 2 cu. yrd. 2 x Wk $ 285.57
Size Freq 2 cu. yrd. 3 x Wk $ 420.12
1 cu. yrd. 1 x Wk $ 128.28 2 cu. yrd. 4 x Wk $ 553.86
1 cu. yrd. 2 x Wk $ 235.06 2 cu. yrd. 5 x Wk $ 687.86
1 cu. yrd. 3 x Wk $ 348.56 2 cu. yrd. 6 x Wk $ 914.95
1 cu. yrd. 4 x Wk $ 459.37 3 cu. yrd. 1 x Wk $ 179.87
1 cu. yrd. 5 x Wk $ 567.48 3 cu. yrd. 2 x Wk $ 335.00
1 cu. yrd. 6 x Wk $ 757.61 3 cu. yrd. 3 x Wk $ 492.89
2 cu. yrd. 1 x Wk $ 128.87 3 cu. yrd. 4 x Wk $ 643.92
2 cu. yrd. 2 x Wk $ 236.22 3 cu. yrd. 5 x Wk $ 805.93
2 cu. yrd. 3 x Wk $ 350.32 3 cu. yrd. 6 x Wk $ 1,076.39 2 cu. yrd. 4 x Wk $ 461.70 4 cu. yrd. 1 x Wk $ 179.87
2 cu. yrd. 5 x Wk $ 570.42 4 cu. yrd. 2 x Wk $ 335.00
2 cu. yrd. 6 x Wk $ 761.10 4 cu. yrd. 3 x Wk $ 492.89
3 cu. yrd. 1 x Wk $ 137.52 4 cu. yrd. 4 x Wk $ 643.92
3 cu. yrd. 2 x Wk $ 260.45 4 cu. yrd. 5 x Wk $ 805.93
3 cu. yrd. 3 x Wk $ 387.00 4 cu. yrd. 6 x Wk $ 1,076.39 3 cu. yrd. 4 x Wk $ 508.39
3 cu. yrd. 5 x Wk $ 632.44 Commercial/MF/Resi GW Bins
3 cu. yrd. 6 x Wk $ 967.58 Size Freq
4 cu. yrd. 1 x Wk $ 151.54 1 cu. yrd. 1 x Wk $ 123.20
4 cu. yrd. 2 x Wk $ 286.96 1 cu. yrd. 2 x Wk $ 227.60
4 cu. yrd. 3 x Wk $ 422.35 1 cu. yrd. 3 x Wk $ 334.68
4 cu. yrd. 4 x Wk $ 556.44 1 cu. yrd. 4 x Wk $ 441.75
4 cu. yrd. 5 x Wk $ 690.50 1 cu. yrd. 5 x Wk $ 547.45
4 cu. yrd. 6 x Wk $ 1,194.23 2 cu. yrd. 1 x Wk $ 124.09 6 cu. yrd. 1 x Wk $ 219.94 2 cu. yrd. 2 x Wk $ 229.37
6 cu. yrd. 2 x Wk $ 419.68 2 cu. yrd. 3 x Wk $ 337.33
6 cu. yrd. 3 x Wk $ 620.77 2 cu. yrd. 4 x Wk $ 445.28
6 cu. yrd. 4 x Wk $ 827.26 2 cu. yrd. 5 x Wk $ 551.88
6 cu. yrd. 5 x Wk $ 1,016.26 3 cu. yrd. 1 x Wk $ 133.05 6 cu. yrd. 6 x Wk $ 1,207.95 3 cu. yrd. 2 x Wk $ 251.25 3 cu. yrd. 3 x Wk $ 367.95
Commercial/MF Trash Bins 3 cu. yrd. 4 x Wk $ 484.67
Size Freq 3 cu. yrd. 5 x Wk $ 599.99
1 cu. yrd. 1 x Wk $ 145.42 4 cu. yrd. 1 x Wk $ 145.54
1 cu. yrd. 2 x Wk $ 266.44 4 cu. yrd. 2 x Wk $ 270.47
1 cu. yrd. 3 x Wk $ 395.11 4 cu. yrd. 3 x Wk $ 396.78
1 cu. yrd. 4 x Wk $ 520.70 4 cu. yrd. 4 x Wk $ 524.47
1 cu. yrd. 5 x Wk $ 643.27 4 cu. yrd. 5 x Wk $ 649.41
1 cu. yrd. 6 x Wk $ 858.77 6 cu. yrd. 1 x Wk $ 167.50
2 cu. yrd. 1 x Wk $ 146.08 6 cu. yrd. 2 x Wk $ 311.65
2 cu. yrd. 2 x Wk $ 267.76 6 cu. yrd. 3 x Wk $ 458.56
2 cu. yrd. 3 x Wk $ 397.10 6 cu. yrd. 4 x Wk $ 587.64
2 cu. yrd. 4 x Wk $ 523.35 6 cu. yrd. 5 x Wk $ 746.87
2 cu. yrd. 5 x Wk $ 646.58 35Gal Barrel 1 x Wk n/a
2 cu. yrd. 6 x Wk $ 862.73 35Gal Barrel 2 x Wk n/a
3 cu. yrd. 1 x Wk $ 155.88 35Gal Barrel 3 x Wk n/a
3 cu. yrd. 2 x Wk $ 295.24 35Gal Barrel 4 x Wk n/a
3 cu. yrd. 3 x Wk $ 438.67 35Gal Barrel 5 x Wk n/a
3 cu. yrd. 4 x Wk $ 576.27 65Gal Barrel 1 x Wk n/a
3 cu. yrd. 5 x Wk $ 716.89 65Gal Barrel 2 x Wk n/a
3 cu. yrd. 6 x Wk $ 1,096.78 65Gal Barrel 3 x Wk n/a
4 cu. yrd. 1 x Wk $ 171.77 65Gal Barrel 4 x Wk n/a
4 cu. yrd. 2 x Wk $ 325.27 65Gal Barrel 5 x Wk n/a
4 cu. yrd. 3 x Wk $ 478.75
4 cu. yrd. 4 x Wk $ 630.74 Commercial Food Waste
4 cu. yrd. 5 x Wk $ 782.71 Size Freq
4 cu. yrd. 6 x Wk $ 1,353.70 2 cu. yrd. 1 x Wk $ 263.53 6 cu. yrd. 1 x Wk $ 249.30 2 cu. yrd. 2 x Wk $ 475.26
6 cu. yrd. 2 x Wk $ 475.72 2 cu. yrd. 3 x Wk $ 670.32
6 cu. yrd. 3 x Wk $ 703.65 2 cu. yrd. 4 x Wk $ 866.88
6 cu. yrd. 4 x Wk $ 937.71 2 cu. yrd. 5 x Wk $ 1,095.40 6 cu. yrd. 5 x Wk $ 1,151.95 2 cu. yrd. 6 x Wk $ 1,257.62 6 cu. yrd. 6 x Wk $ 1,369.23 35Gal Barrel 1 x Wk n/a
35Gal Barrel 2 x Wk n/a
Commercial/MF/Resi Recycling Bins 35Gal Barrel 3 x Wk n/a Size Freq 35Gal Barrel 4 x Wk n/a
All Sizes 1 x Wk $ 53.59 35Gal Barrel 5 x Wk n/a
All Sizes 2 x Wk $ 107.17 35Gal Barrel 6 x Wk n/a
All Sizes 3 x Wk $ 160.76 65Gal Barrel 1 x Wk $ 78.46
All Sizes 4 x Wk $ 215.00 65Gal Barrel 2 x Wk $ 143.25
All Sizes 5 x Wk $ 268.58 65Gal Barrel 3 x Wk $ 203.65
All Sizes 6 x Wk $ 322.17 65Gal Barrel 4 x Wk $ 264.40
65Gal Barrel 5 x Wk $ 333.63
65Gal Barrel 6 x Wk $ 385.35
Exhibit 1
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Burrtec Waste Industries, Inc
City of San Bernardino
EXHIBIT 1
Current
Rates
Roll-Off - Service Only
- All Refuse Permanent - Plus Disposal $ 381.73
- All Refuse Temporary $ 615.90
incl Disp
- All Recycling (Different Materials) - Plus Disposal $ 381.73 - Waste to Energy - Plus Disposal n/a
Roll Off Retractable Lid Monthly Rental Fee n/a
Receiver n/a
Compactor Box n/a
Water Reclamation $ 131.00
Miscellaneous RO Compactor Repair (per hour) $ 76.21
Compactor Cleaning (each/single occurrence) $ 151.90
Dry Run / Relocate Roll Offs (Perm & Temp) $ 85.44
Roll Off Daily Rental Fee (Perm & Temp) $ 42.03
Stand By / Roll-Back Roll Offs (Perm & Temp) $ 154.58
per occurrence in excess of 15 min
End Dump Service (per Hour) n/a
Certificate of Destruction $ 127.03
Residential/Commercial
- Barrel Exchange (first Exchange free) charge does not apply to graffiti $ 17.24 or damaged barrels
Commercial
- Barrel Replacement comml-lost or stolen $ 85.16
Bin Services
- Bin Exchange (first Exchange free) charge does not apply to graffiti $ 86.22 or damaged bins
- Bin Replacement + actual cost of bin comml-lost or stolen $ 93.98 Bin Enclosure Cleaning (each/single occurrence) $ 42.33 Bin Steam Cleaning (each/single occurrence) $ 42.33
Pull Out Service - Backyard Barrel Frail/Handicap (Resi/MH/MF) N/C Extra Trash Barrel (Resi/MF/MH/Commercial) $ 14.77
Extra Recycling Barrel (Resi/MF/MH/) N/C
Extra Recycling Barrel (Com) $ 26.98
Extra Green Waste Barrel (Resi/MF only) $ 12.93
Pull Out Service - Bin (1-6 Yard) x1 $ 76.63
Temporary Bin (3 Yrd) - 7 Day use $ 78.60
Temp Bin Dump and Return $ 78.60
Clean-Up Service (per 15 min) $ 41.27
Recycling Contamination Barrel n/a
Recycling Contamination (each bin) $ 67.20
Extra Pick-Ups Bins - On Service Day
1 & 2 Yard (Trash/Recyc) $ 28.80
3 Yard (Trash/Recyc) $ 31.32
4 Yard (Trash/Recyc) $ 34.31
6 Yard (Trash/Recyc) $ 40.65
Extra Pick-Ups All Bins - On Non-Service Day (Trash) $ 51.25 Extra Pick-Ups All Bins - On Non-Service Day (Recyc) $ 39.87 Extra Pick-Ups Compactors (Trash)
2 Yard $ 31.32
3 & 4 Yard $ 34.31
Extra Pick-Up Barrel - Residential/Mobile Home $ 1 0.56 Extra Pick-Ups FW Bins $ 9 9.73
Extra Pick-Ups Barrel - FW $ 2 9.69
Tilhopper (3 yd) $ 3 4.18
Lock $ 2 0.16
Late set-out fee $ 3 2.74
Late Fee 1.5%
Shopping cart retrieval $ 2 5.00
Additional Services
Exhibit 1
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DISCUSSION
City of San Bernardino
Request for Council Action
Date: May 15, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager
Department: City Manager's Office
Subject: City Hall Renovation Project Step 1 (Ward 1)
Recommendation:

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

1. Authorize the City Manager to move forward with Step 1 of the San Bernardino City Hall Renovation Project; and

2. Authorize the execution of the Joint Exercise Power Agreement between the City of San Bernardino, and the San Bernardino City Housing Authority; and

3. Adopt Resolution 2024-090; of the City of San Bernardino authorizing the creation of the City of San Bernardino Financing Authority and certain other matters pertaining thereto; and

4. Adopt Resolution 2024-091; declaring intent to issue tax exempt obligations to be used to reimburse the City for expenditures it may incur prior to the bond issuance.

Executive Summary
The renovation of the historic San Bernardino City Hall is a complex and multi-step project requiring: (1) the creation of a new government entity, the City of San Bernardino Public Financing Authority; (2) the retention of design consultants and industry professionals experienced in architecture, large scale construction projects, civic center design, municipal project management and financing; (3) procurement of a construction contract or construction manager; and (4) the issuance of lease revenue bonds to finance the project. Most importantly, the project can only succeed through collaboration between staff, the Mayor and City Council, and the San Bernardino community. This staff report focuses on Step 1 of the City Hall Renovation Project:
creating the San Bernardino Public Financing Authority, which will establish the administrative structure required to issue lease revenue bonds in the future. There is no fiscal impact associated with establishing a financing authority, nor does it obligate the City to release bonds in the future.

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Background
San Bernardino City Hall (“City Hall”) was designed to be the focal point the Century City project, a 93-acre urban renewal project meant to transform downtown San Bernardino into a thriving center of economic activity. The design of City Hall was awarded to Gruen and Associates where renowned architect Cesar Pelli served as the lead partner in charge of the project. Also, at Gruen and Associates was Norma Sklarek, the first African American woman in California to become a licensed architect. Sklarek served as the director of architecture and was responsible for coordinating the technical aspects of the City Hall project. Completed in 1972, City Hall’s distinctive design garnered acclaim, earning recognition in various publications and was named one of the 49 most outstanding city halls by the American Institute of Architects and Library of Congress in 1982.

While City Hall is an iconic building for the City, it was built prior to the more rigorous building codes. As a result of the 1971San Fernando earthquake (or “Sylmar Earthquake”), the Uniform Building Code (UBC) was updated in 1973 to prohibit the use of non-ductile concrete construction, which is the type of construction that was used for City Hall. Structures of this type exhibited poor performance during the Sylmar Earthquake, suffering significant structural damage and/or failure. To evaluate the building’s safety, the City has commissioned multiple seismic assessments of City Hall. Evaluations by URS Corporation in 2007 and IDS Group in 2015 identified critical deficiencies, including weak first-story columns, insufficient lateral resistance, and seismic vulnerability due to its location near fault lines. All seismic assessments concluded that City Hall would need to be retrofitted.

In response to these seismic risks, City Manager Mark Scott recommended vacating City Hall in 2016, relocating staff to surrounding structures such as Vanir Tower and the 201 Building.

On June 6, 2018, the Mayor and City Council approved an agreement with CannonDesign to perform a Facilities Condition Assessment (FCA) for 185 City-owned facilities, with the City Hall building being assessed first. The assessment included:
• Seismic and structural elements.
• Mechanical components, such as HVAC systems and elevators. • Plumbing and fire protection systems.
• ADA compliance.
• Environment issues.

The CannonDesign’s FCA report identified critical deficiencies in all categories listed above and estimated approximately $22 million in renovation costs, $2.2 million in ADA improvement costs, and $8 million in retrofitting costs. It’s also important to note that the amounts listed above do not include project contingency, management, or inspection costs. For the seismic assessment, CannonDesign utilized a report that was conducted by Z&K Consultants, which reiterated many of the same findings that were in IDS Group’s seismic evaluation.

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On January 31, 2024, the Mayor and City Council received an informational report that provided an overview of the City Hall Renovation Project, the site history, a review of the seismic retrofit and renovation assessments, the design build process, and potential financing options. This report builds on the January 31, 2024, study session, specifically requesting Council to authorize several actions related to the process of issuing Lease Revenues Bonds (LRB) to funds the renovation of City Hall.

Discussion
The renovation of the historic San Bernardino City Hall is a complex and multi-step project. The recommendations outlined in this report focus primarily on establishing the administrative structure required to issue lease revenue bonds, should the Council decide to issue bonds at a future meeting. The structure requires establishing a Joint Exercise of Power Agreement between the City of San Bernardino and the San Bernardino City Housing Authority, thereby creating a Joint Powers Financing Authority. It is important to emphasize that the Housing Authority that is being referenced is the City’s Housing Authority, not the Housing Authority of the County of San Bernardino (HACSB), which is a different public entity that is not associated with these actions. Additionally, staff recommend the Mayor and City Council adopt a Reimbursement Resolution to ensure the City retains the right to recover any pre-bond issuance expenses it may incur.

Necessary Administrative Structure to Issue Revenue Bonds:

Should the City Council desire to utilize lease revenue bond financing, it is recommended that the City of San Bernardino and the San Bernardino City Housing Authority enter into a Joint Exercise Powers Agreement (“JEPA”) for the explicit purpose of establishing a Joint Financing Authority (“JFA”) to issue bonds. This administrative structure is necessary in order to finance the project in this manner.

Formation of a Joint Exercise of Powers Agreement
The Joint Exercise of Powers Act, Government Code section 6500 et seq. (“Act”) permits public agencies to enter into a joint exercise of powers agreement (“JEPA”) to form a separate governmental entity to jointly exercise powers common to the member agencies. (Government Code Section 6502). The parties to the JEPA may create a separate legal entity (i.e. a joint powers authority) under the JEPA to administer the agreement. Additionally, the joint powers authorities have the power of issuing bonds secured by local revenues. For this project, the bonds would be secured by lease revenues. This is a commonly utilized financing mechanism for cities throughout the State of California. The joint powers authority is proposed to be called the City of San Bernardino Financing Authority (“Financing Authority”) and the Financing Authority will issue the lease revenue bonds.

City of San Bernardino Financing Authority (“Financing Authority”) The governing body of the Financing Authority will be its Board of Directors, which will consist of the seven (7) members of the City Council. It is through the Board of Directors where the power of the Financing Authority is vested and exercised. The Packet Page. 2124
Financing Authority will also include Officers of the Authority, which will consist of the Mayor (Chairperson), Mayor Pro Tempore (Vice Chairperson), City Manager (Executive Director), Director of Finance (Treasurer), and City Clerk (Secretary). It is important to note that the Officers of the Authority have no voting power unless they are on the Board of Directors.

Any regular meeting of the Financing Authority’s Board of Directors shall be held at the same time and same location as regular meetings of the City Council and noticed in the same manner. The Board of Directors of the Financing Authority will conduct a regular meeting at least once each calendar year on the second Monday of December. The Financing Authority Board meetings will have separate agendas from the City Council meetings and will comply with Brown Act requirements.

Presented before the City Council are the following items related to forming the Financing Authority and the JEPA:
• Resolution No. 2024-090 Authorizing the creation of the City of San Bernardino Financing Authority and certain other matters pertaining thereto. • Authorization to execute a Joint Exercise Power Agreement between the City of San Bernardino, and the San Bernardino City Housing Authority.

Presented before the Commissioners of the San Bernardino City Housing Authority will be the following resolutions related to forming the Financing Authority and the JEPA:
• Resolution of the San Bernardino City Housing Authority authorizing the creation of the City of San Bernardino Financing Authority and certain other matters pertaining thereto.
• Authorization to execute a Joint Exercise Power Agreement between the San Bernardino City Housing Authority and the City of San Bernardino.

If the Council adopts the above resolutions and authorizes staff to proceed with the creation of the City of San Bernardino Financing Authority, at a future meeting date staff will present before the Board of Directors of the Financing Authority a resolution to approve the Financing Authority’s Bylaws:
• Resolution of the City of San Bernardino Financing Authority approving and adopting Bylaws, establishing regular meeting dates and authorizing certain other actions in connection therewith.

Reimbursement Resolution
While the Mayor and City Council may approve the issuance of lease revenue bonds to finance the renovation of City Hall at a future meeting, the City may incur costs associated with the project before the bonds are released. In order to use a portion of the bond proceeds to reimburse itself for these prior expenditures, the City Council will need to adopt a reimbursement resolution:

Packet Page. 2125
• Resolution No. 2024-091 Resolution of the City of San Bernardino Financing Authority declaring its intent to issue tax exempt obligations to be used to reimburse expenditures prior to the issuance of such bonds.

Project Financing
Lease Revenue Bonds (LRB) as a Financing Mechanism
LRB’s are a type of bond that is secured by lease payments made by the party leasing the facility that was financed by the bond issuance. LRB’s are typically used by government agencies to finance the acquisition of, construction of, and/or improvements to facilities, such as city halls, courthouses, fire facilities, and other government buildings. Unlike revenue bonds that primarily use money generated by the project (e.g. a bridge toll) to pay the principal and interest on the bonds, in LRBs, a lessee (government agency) pays rent to use the facility. Those rental payments are then used to pay the principal and interest on the bonds. For the City Hall Project, the City would utilize a lease-leaseback financing structure, which would be structured as follows:

1. The City leases City Hall to its Financing Authority (“Authority”) for a nominal amount (~$1).

2. The Authority would then lease City Hall back to the City, with the value amortized over time.

3. The City’s lease payments are transferred to a trustee, who then uses those lease payments to pay the debt service on the LRB.

Unlike General Obligation bonds issued by a city, LRBs issued by a JFA do not require voter approval. It is important to note that LRBs are a popular tool at the disposal of local governments and special districts to finance large scale public infrastructure projects such as hospitals, airports, toll roads, education facilities, bridges, and civic facilities such as City Halls. In California, LRB’s are utilized by a wide variety of municipalities, and since 2016, one hundred and sixty-five (165) separate entities have issued three hundred and seventeen (317) LRB’s with a total issuance of $18B dollars.

Of those projects funded by LRB’s one hundred and fifty (150) ($9.5B) were described as Capital Improvement projects, seventy (70) ($4.4B) were described as a Public Building.

In the Inland Empire region, several cities have utilized LRB’s to finance public facilities projects, including city hall buildings. In the last 3 years, the cities that have issued LRBs through a Financing Authority for the construction of a new city hall include:

City of Lake Elsinore
• On May 10, 2022, up to $27 million in LRBs were authorized to be released for the construction of a 35,000 square foot city hall building.

City of Ontario
• On May 17, 2022, up to $110 million in LRBs were authorized to be released for the expansion of their Civic Center Campus, which includes the construction of Packet Page. 2126
a 60,000 square foot city hall building, parking structure, and a 28,000 square foot fire station.
• On March 7, 2023, an additional $100 million in LRBs were authorized to be released to fund capital improvement projects.

City of Indio
• On June 15, 2022, up to $145 million in LRBs were authorized to be released for the construction of a new 37,000 square foot city hall building, a public safety campus totaling 44,000 square feet, and a library expansion/renovation totaling 8,800 square feet.

Next Steps:

Should the Mayor and City Council authorize the recommendations outlined in this report, staff will return to the council at subsequent meetings with actions specific to the following City Hall Renovation Project steps:
• Step 2 - Project Planning & Design
o Award Professional Services Agreements
o Approve Financing Authority Bylaws
• Step 3 - Project Procurement
o Receive Initial Estimate of Planning & Project Costs
o Award Construction Manager-At-Risk Contract
• Step 4 - Project Commencement
o Approve a Final Design
o Authorize release of Lease Revenue Bonds
2021-2025 Strategic Targets and Goals
The approval of actions related to Step 1 of the City Hall Renovation Project aligns with all four of the Mayor and City Council Strategic Goals; Improved Operational & Financial Capacity, Focused, Aligned Leadership, and Unified Community, Improved Quality of Life, Economic Growth & Development.

Fiscal Impact
There is no fiscal impact associated with the authorization of a Joint Exercise Powers Agreement, the establishment of a City of San Bernardino Financing Authority, or the adoption of a reimbursement resolution. Should the Mayor and City Council authorize the staff to proceed with the project, staff will return to the council at subsequent meetings with recommended formal actions and their associated fiscal impact on the FY2023-24 and Biennial Budgets.

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

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1. Authorize the City Manager to move forward with Step 1 of the San Bernardino City Hall Renovation Project; and

2. Authorize the execution of the Joint Exercise Power Agreement between the City of San Bernardino, and the San Bernardino City Housing Authority; and

3. Adopt Resolution 2024-090; of the City of San Bernardino authorizing the creation of the City of San Bernardino Financing Authority and certain other matters pertaining thereto; and

4. Adopt Resolution 2024-091; declaring intent to issue tax exempt obligations to be used to reimburse the City for expenditures it may incur prior to the bond issuance.

Attachments
Attachment 1 – Joint Exercise Power Agreement between the City of San Bernardino, and the San Bernardino City Housing Authority Attachment 2 – Resolution 2024-090; of the City of San Bernardino authorizing the creation of the City of San Bernardino Financing Authority Attachment 3 – Resolution 2024-091; City of San Bernardino Reimbursement Resolution
Ward:

First Ward
Synopsis of Previous Council Actions:

January 31, 2024 - The Mayor and City Council of the City of San Bernardino held an information workshop specific to the history and potential renovation strategies for City Hall. No action was taken.

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55600.00930\41952879.3

JOINT EXERCISE OF POWERS AGREEMENT

CREATING

CITY OF SAN BERNARDINO FINANCING AUTHORITY
Dated as of May 15, 2024
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55600.00930\41952879.3

TABLE OF CONTENTS
Page
-iARTICLE I

DEFINITIONS
Section 1.01. Definitions ........................................................................................................1

ARTICLE II

GENERAL PROVISIONS
Section 2.01. Purpose .............................................................................................................3 Section 2.02. Creation of Authority........................................................................................3

ARTICLE III
BOARD
Section 3.01. Board.................................................................................................................3 Section 3.02. Powers...............................................................................................................3 Section 3.03. Compensation ...................................................................................................4 Section 3.04. Meetings of the Board; Voting .........................................................................4

ARTICLE IV

OFFICERS AND EMPLOYEES
Section 4.01. Officers .............................................................................................................4 Section 4.02. Subordinate Officers.........................................................................................5 Section 4.03. Removal of Officers .........................................................................................5 Section 4.04. Chairman...........................................................................................................5 Section 4.05. Vice Chairman..................................................................................................5 Section 4.06. Secretary ...........................................................................................................5 Section 4.07. Treasurer...........................................................................................................5 Section 4.08. Officers in Charge of Records, Funds and Accounts .......................................5 Section 4.09. Other Employees ..............................................................................................6 Section 4.10. Conflict of Interest Code ..................................................................................6

ARTICLE V
POWERS
Section 5.01. General Powers.................................................................................................6 Section 5.02. Specific Powers ................................................................................................6 Section 5.03. Restrictions on Exercise of Powers ..................................................................7 Section 5.04. Liability; Contribution......................................................................................7 Section 5.05. Indemnity by Authority for Litigation Expenses of Officer, Board Member or Employee .......................................................................................8 Section 5.06. Execution of Contracts .....................................................................................8 Packet Page. 2130
55600.00930\41952879.3

TABLE OF CONTENTS
(continued)
Page
-iiARTICLE VI
CONTRIBUTION; ACCOUNTS AND REPORTS; FUNDS
Section 6.01. Contributions ....................................................................................................8 Section 6.02. Accounts and Reports.......................................................................................9 Section 6.03. Funds.................................................................................................................9 Section 6.04. Annual Budget and Administrative Expenses ..................................................9

ARTICLE VII
TERM; ADDITION OF MEMBERS; DISSOLUTION
Section 7.01. Term................................................................................................................10 Section 7.02. Addition of Members......................................................................................10 Section 7.03. Withdrawal or Exclusion of a Member ..........................................................10 Section 7.04. Dissolution......................................................................................................11

ARTICLE VIII

MISCELLANEOUS PROVISIONS
Section 8.01. Notices ............................................................................................................11 Section 8.02. Section Headings ............................................................................................12 Section 8.03. Consent ...........................................................................................................12 Section 8.04. Law Governing ...............................................................................................12 Section 8.05. Amendments...................................................................................................12 Section 8.06. Enforcement by Authority ..............................................................................12 Section 8.07. Severability.....................................................................................................12 Section 8.08. Successors and Assigns ..................................................................................12 Section 8.09. Execution of Counterparts ..............................................................................12 Packet Page. 2131
55600.00930\41952879.3
1 JOINT EXERCISE OF POWERS AGREEMENT

CREATING THE CITY OF SAN BERNARDINO FINANCING AUTHORITY THIS JOINT EXERCISE OF POWERS AGREEMENT (the “Agreement”), is made and entered into this May 15, 2024 by and among the Members (as defined herein); W I T N E S S E T H:

WHEREAS, agencies formed under Article 1 (commencing with Section 6500) of the Joint Powers Law (as defined herein) are permitted to provide financing for any of their members or other local public agencies in the State of California in connection with the lease, acquisition, construction and improvement of public capital improvements, working capital requirements or insurance programs of such members or other local agencies; and WHEREAS, the Members wish to form an agency under the Joint Powers Law, known as the City of San Bernardino Financing Authority, for the purpose of providing an entity to assist in providing financing, for purposes which are authorized by law and which could finance, lease, own, operate and maintain public capital improvements for any of its members, or to be owned by any of its members (as defined herein).

NOW, THEREFORE, in consideration of the above premises and of the mutual promises herein contained, the Members do hereby agree as follows:

ARTICLE I

DEFINITIONS
Section 1.01. Definitions. In addition to the other terms defined herein, the following terms, whether in the singular or in the plural, when used herein and initially capitalized shall have the meanings specified.
“Agreement” means this Joint Exercise of Powers Agreement, as originally entered into or as amended from time to time in accordance with Section 8.05 hereof. “Authority” means the City of San Bernardino Financing Authority established pursuant to Section 2.02 hereof.
“Board” means the Board referred to in Section 3.01 hereof, which shall be the governing body of the Authority.
“Bond Law” means the Marks-Roos Local Bond Pooling Act of 1985, being Article 4 of the Joint Powers Law (commencing with Section 6584), as amended from time to time, Article 2 of the Joint Powers Law, as amended from time to time, or any other law available for use by the Authority in the authorization and issuance of Indebtedness or to provide for the financing of Indebtedness and/or Public Capital Improvements, as amended from time to time.

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55600.00930\41952879.3
2 “Bond Purchase Agreement” means an agreement between the Authority and a Member or a Local Agency, pursuant to which the Authority agrees to purchase Indebtedness from a Member or a Local Agency, as the case may be.
“City” means the City of San Bernardino.
“Fiscal Year” means the fiscal year of the Authority as established from time to time by the Board, being at the date of this Agreement the period from July 1 in any calendar year to and including June 30 in the succeeding calendar year.
“Housing Authority” means the San Bernardino City Housing Authority. “Indebtedness” means bonds, notes or other evidences of indebtedness, and all other obligations, instruments and agreements constituting “Bonds” under the Joint Powers Law, which are issued or incurred by or on behalf of the Authority, a Member or a Local Agency pursuant to the Bond Law or pursuant to any other provision of law to finance the lease, acquisition, construction or improvement of Public Capital Improvements, Working Capital Requirements, or liability or other insurance needs of any Local Agency (the “Local Obligations”). “Joint Powers Law” means Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code, as amended from time to time. “Liability Share” means, with respect to any Member, the amount of a judgment for damages divided by the number of Members at the time the act or omission occurred, unless any portion of the judgment arises from an act or omission directly related to the studying, planning, financing, developing, acquiring, purchasing, construction, reconstructing, implementing, improving, enlarging, enhancing, operating, maintaining, selling, disposing of, or decommissioning of any project undertaken by the Authority under this Agreement, in which case, with respect to such portion, the term “Liability Share” shall mean, with respect to any Member, the amount of such portion multiplied by a fraction equal to (i) such Member’s entitlement or right, if any, to participate in such project at the time the act or omission occurred, divided by (ii) the aggregate amount of all Members’ entitlements or rights to participate in such project at the time the act or omission occurred.
“Local Agency” means each of the Members, any agency or subdivision of a Member, and any other city, county, authority, district or public corporation of the State of California. “Members” means, collectively, all of the Members that are parties to this Agreement, which Members shall initially consist of the City of San Bernardino and the San Bernardino City Housing Authority and which shall include all additional Members that become parties hereto pursuant to the provisions of Section 7.02 hereof; provided, however, that the term “Member” shall not include any entity which shall have withdrawn or been excluded from the Authority pursuant to Section 7.03 hereof.
“Public Agency” has the meaning given to the term “public agency” in Article 1 of the Joint Powers Law.

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3 “Public Capital Improvements” has the meaning given such term in Section 6585(n) of the Bond Law, as such provision may be amended from time to time. “Working Capital Requirements” means the requirements of any Local Agency for funds to be used by, or on behalf of, such Local Agency for any purpose for which such Local Agency may borrow money pursuant to Section 53852 of the California Government Code, as amended from time to time.

ARTICLE II

GENERAL PROVISIONS
Section 2.01. Purpose. This Agreement is made pursuant to the Joint Powers Law providing for the joint exercise of powers common to two or more Members, and for other purposes as permitted under the Joint Powers Law and the Bond Law. The purpose of this Agreement is to provide for the financing or refinancing of Public Capital Improvements for and Working Capital Requirements and insurance programs of, the Members and any Local Agency, including without limitation, the purchase by the Authority of Indebtedness of any of the Members or a Local Agency pursuant to Bond Purchase Agreements, the lending of funds by the Authority to a Member or a Local Agency or the entering into of contractual arrangements by the Authority with a Member or a Local Agency and any other transaction authorized by the Joint Powers Law and other laws; engaging in financings relating to the encouragement of economic development and the stimulation of public revenues in the City through the acquisition and financing by the Authority of such Public Capital Improvements; and to engage in any other transactions authorized by the Joint Powers Law and other laws.

Section 2.02. Creation of Authority. Pursuant to the Joint Powers Law, there is hereby created a public entity to be known as the “City of San Bernardino Financing Authority”. The Authority shall be a public entity separate and apart from the Members, and shall administer this Agreement.

ARTICLE III
BOARD
Section 3.01. Board. The Authority shall be governed by a Board, which shall be comprised of members determined as provided in this Section 3.01. The Board shall be called the “Board of the City of San Bernardino Financing Authority.” Notwithstanding anything contained in this Section 3.01 to the contrary, no member of the Board shall hold membership on the Board after the expiration of his or her term as a member of the governing body of a Member, or after he or she resigns, is removed or for any other reason no longer serves as a member of the governing body of a Member. The Board members shall be the members of the City Council of the City.

Section 3.02. Powers. Subject to the limitations of this Agreement and the laws of the State of California, the powers of this Authority shall be vested in and exercised by and its property controlled and its affairs conducted by the Board. The Board shall have the responsibility for the general management of the affairs, property and business of the Authority and may, from time to Packet Page. 2134
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4 time, adopt and modify such Bylaws and other rules and regulations for that purpose and for the conduct of its meetings as it may deem proper.

Section 3.03. Compensation. Members of the Board shall serve without compensation.

Each such member may be reimbursed for necessary and actual expenses, including travel incident to his or her services as member of the Board, pursuant to resolution of the Board. Any member of the Board may elect, however, to decline said reimbursement.

Section 3.04. Meetings of the Board; Voting.
(a) Call, Notice and Conduct of Meetings. All meetings of the Board, including without limitation, regular, adjourned regular and special meetings, shall be called, noticed, held and conducted in accordance with the Ralph M. Brown Act, being Sections 54950 et seq. of the California Government Code, as amended from time to time. (b) Regular Meetings. The Board shall hold a regular meeting not less than once each calendar year. Regular meetings of the Board shall be held at such time as the Board may fix by resolution from time to time, and if any day so fixed shall fall upon a Saturday, Sunday or legal holiday, then, upon the next succeeding business day at the same hour. No notice of any regular meeting of the Board need be given to the members of the Board.
(c) Special Meetings. Special meetings of the Board shall be held whenever called by the Chairman of the Authority or by a majority of the members of the Board, in accordance with the provisions of the California Government Code, as amended from time to time.
(d) Quorum. A majority of the total number of members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time.
(e) Voting. Each member of the Board shall have one vote. The affirmative votes of at least a majority of the members of the Board present at any meeting at which a quorum is present shall be required for the Board to take any action. Every act or decision done or made by a majority of the members of the Board present at any meeting at which a quorum is present shall be the act of the Board.

ARTICLE IV

OFFICERS AND EMPLOYEES
Section 4.01. Officers. The officers of the Authority shall be a Chairman, a Vice Chairman, an Executive Director, a Secretary, a Treasurer and such other officers as the Board may appoint. The Chairman shall be the Mayor of the City. The Vice Chairman shall be the ViceMayor of the City. The Treasurer shall be the Director of Finance of the City. The City Manager of the City shall serve as the Executive Director of the Authority. The City Clerk of the City shall serve as the Secretary of the Authority.

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5 Section 4.02. Subordinate Officers. The Board may elect or authorize the appointment of such other officers than those herein above mentioned as the business of the Authority may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in this Agreement, or as the Board, from time to time, may authorize or determine.

Section 4.03. Removal of Officers. Any officer may be removed, either with or without cause, by a majority of the members of the Board at any regular or special meeting of the Board.

Should a vacancy occur in any office as a result of death, resignation, removal, disqualification or any other cause, the Board may delegate the powers and duties of such office to any officers or to any members of the Board until such time as a successor for said office has been appointed.

Section 4.04. Chairman. The Chairman shall be the chief executive officer of the Authority and shall, subject to the control of the Board, have general supervision, direction and control of the business and officers of the Authority. He or she shall be ex officio member of all standing committees, and shall have the general powers and duties of management of the Authority and shall have such other powers and duties as may be prescribed by the Board or this Agreement.

The Chairman shall preside at all meetings of the Board.

Section 4.05. Vice Chairman. In the absence or disability of the Chairman, the Vice Chairman shall perform all the duties of the Chairman and when so acting shall have all the powers of and be subject to all of the restrictions upon the Chairman. The Vice Chairman shall have such other powers and perform such other duties as may, from time to time, be prescribed for him or her by the Board or this Agreement.

Section 4.06. Secretary. The Secretary shall keep or cause to be kept a book of minutes at the principal office or at such other place as the Board may order, of all meetings of the Board, with the time and place of holding, whether regular or special, and if special, how authorized, the notice thereof given, the names of those present at Board meetings and the proceedings thereof.

The Secretary shall give or cause to be given notice of all meetings of the Board. The Secretary shall keep the Authority records in safe custody and shall have such other powers and perform such other duties as may be prescribed by the Board or this Agreement.

Section 4.07. Treasurer. Pursuant to Section 6505.6 of the Joint Powers Law, the Board shall designate a Treasurer of the Authority. Subject to the applicable provisions of any indenture or resolution providing for a trustee or other fiscal agent, the Treasurer is designated as the depositary of the Authority to have custody of all the money of the Authority, from whatever source, and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Joint Powers Law.

The Treasurer is hereby designated as controller of the Authority and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Joint Powers Law. The controller of the Authority shall draw checks to pay demands against the Authority when the demands have been approved by the Authority.

Section 4.08. Officers in Charge of Records, Funds and Accounts. The Treasurer to the extent such officer’s duties and responsibilities require, is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall Packet Page. 2136
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6 file an official bond as required by Section 6505.1 of the Joint Powers Law in the amount of $40,000.

Section 4.09. Other Employees. The Board shall have the power to appoint and employ such other officers, employees, consultants and independent contractors as it may deem necessary for the purposes of this Agreement, any of whom may be employees of a Member, and who shall have such powers, duties and responsibilities as are determined by the Board.

All of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, workers’ compensation and other benefits which apply to the activities of officers, agents, or employees of a public agency when performing their respective functions shall apply to them to the same degree and extent while engaged in the performance of any of the functions and other duties under this Agreement.

None of the officers, agents, or employees directly employed by the Authority shall be deemed, by reason of their employment by the Authority to be employed by any of the Members or, by reason of their employment by the Authority, to be subject to any of the requirements of any of the Members.

Section 4.10. Conflict of Interest Code. The Authority by resolution shall adopt by reference a Conflict of Interest Code as required by the Political Reform Act, commencing with section 81000 of the Government Code of the State of California.

ARTICLE V
POWERS
Section 5.01. General Powers. The Authority shall exercise in the manner herein provided powers common to Members, or as otherwise permitted under the Joint Powers Law, and necessary or convenient to the accomplishment of the purposes of this Agreement, subject to the restrictions set forth in Section 5.03 hereof.

As provided in the Joint Powers Law, the Authority shall be a public entity separate from the Members. The Authority shall have all of the powers provided in the Joint Powers Law, including but not limited to Article 4 of the Joint Powers Law (commencing with Section 6584), and including the power to issue or incur Indebtedness under the Bond Law.

Section 5.02. Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary for the exercise of the foregoing powers, including but not limited to, any or all of the following:
(a) to make and enter into contracts;
(b) to employ agents or employees;
(c) to plan, develop, acquire, construct, manage, maintain, repair, replace or operate any Public Capital Improvement, including the common power of the Members to acquire any Public Capital Improvement by the power of eminent domain; Packet Page. 2137
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7 (d) to acquire (by the exercise of the power of eminent domain or otherwise), hold, lease, sell or otherwise dispose of any real or personal property, tangible or intangible, and any interests therein, wherever located;
(e) to issue or incur Indebtedness and otherwise to incur debts, liabilities or obligations, provided that no such Indebtedness, debt, liability or obligation shall constitute a debt, liability or obligation of any of the Members;
(f) to sue and be sued in its own name;
(g) to establish a budget and authorize expenditures therefrom; (h) to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States or of the State of California or from any private sources; (i) to enter into agreements for the creation of separate public entities and agencies pursuant to the Joint Powers Law;
(j) to invest any money in the treasury as determined by the Authority, in accordance with applicable provisions of the Joint Powers Law and Section 53601 of the California Government Code, as amended from time to time; (k) to apply for letters of credit or other forms of financial guarantees in order to secure the repayment of Indebtedness and enter into agreements in connection therewith; (l) to carry out and enforce all the provisions of this Agreement; (m) to make and enter into Bond Purchase Agreements;
(n) to purchase Indebtedness of a Member or any Local Agency; (o) to establish non-profit corporations or for-profit corporations to assist in accomplishing any of its objectives; and
(p) to exercise any and all other powers as may be permitted by State law and/or the Joint Powers Law (including Section 6588 of the Joint Powers Law).

Section 5.03. Restrictions on Exercise of Powers. The powers of the Authority shall be exercised in the manner provided in the Joint Powers Law and in the Bond Law subject only to the restrictions upon the manner of exercising such powers as are imposed upon the Members in the exercise of similar powers.

Section 5.04. Liability; Contribution. Pursuant to the Joint Powers Law, the debts, liabilities and obligations of the Authority shall not be the debts, liabilities and obligations of any of the Members, except as provided by Section 895.2 of the California Government Code, as amended from time to time, in the case of injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement. In the event any Member is held liable upon any judgment for damages caused by a negligent or wrongful act or omission occurring in the Packet Page. 2138
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8 performance of this Agreement, and pays in excess of its Liability Share of such judgment, such Member shall be entitled to contribution from each other Member and may require each other Member to pay an amount towards the judgment for damages, but in no event shall any such other Member be required to pay in excess of its Liability Share of such judgment. No Board member, Member, officer, agent or employee of the Authority shall be individually or personally liable for the payment of the principal of or premium or interest on any obligations of the Authority or be subject to any personal liability or accountability by reason of any obligations of the Authority; but nothing herein contained shall relieve any such Board member, Member, officer, agent or employee from the performance of any official duty provided by law or by the instruments authorizing the issuance of any obligations of the Authority. Nothing contained in this Agreement shall in any way diminish the liability of any Member or other party with respect to any contract between such Member or other party and the Authority.

Section 5.05. Indemnity by Authority for Litigation Expenses of Officer, Board Member or Employee. In the event any Board member, officer or employee of the Authority be sued, either alone or with others, because he or she is or was a Board member, officer or employee of the Authority, in any proceeding arising out of his or her alleged misfeasance or nonfeasance in the performance of his or her duties or out of any alleged wrongful act against the Authority or by the Authority, indemnity to such person for reasonable expenses, including attorneys’ fees incurred in the defense of the proceedings, may be assessed against the Authority or its receiver by the court in the same or a separate proceeding if the person sued acted in good faith and in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful. The amount of such indemnity shall equal the amount of the expenses, including attorneys’ fees the amount of any judgment, incurred in the defense of the proceeding.

Section 5.06. Execution of Contracts. The Board, except as otherwise provided in this Agreement, may authorize any officer or officers, agent or agents, to enter into any contract or execute any contract or execute any instrument in the name of and on behalf of the Authority and such authorization may be in general or confined to specific instances and unless so authorized by the Board, no officer, agent or employee shall have any power or authority to bind the Authority by any contract or engagement or to pledge its credit or to render it liable for any purpose or in any amount.

ARTICLE VI
CONTRIBUTION; ACCOUNTS AND REPORTS; FUNDS
Section 6.01. Contributions. In accordance with the California Government Code, the Members may in the appropriate circumstances when required hereunder: (a) make contributions from their treasuries as approved from time to time by the Board, for the purposes set forth herein, (b) make payments of public funds to defray the cost of such purposes, (c) make advances of public funds for such purposes, such advances to be repaid as provided herein, or (d) use their personnel, equipment or property in lieu of other contributions or advances. The provisions of Section 6513 of the Joint Powers Law are hereby incorporated into this Agreement. The Authority may make such arrangements relative to the repayment or return to the Members of such contributions, payments and advances as are approved from time to time by the Board.

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9 Any Member which fails to make or pay when due any required contribution, payment or advance to the Authority, may have its rights under this Agreement terminated and may be excluded from participation in the Authority as provided in Section 7.03(c) hereof. Any such Member shall continue to be liable for its obligations under any contract with the Authority and for any unpaid contribution, payment or advance approved by the Board prior to such Member’s exclusion and not objected to by such Member by written notice to the Authority within thirty (30) days after such approval.

Section 6.02. Accounts and Reports. There shall be strict accountability of all funds and reporting of all receipts and disbursements of the Authority. The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provision of any resolution, indenture or other instrument of the Authority securing its Indebtedness, except insofar as such powers, duties and responsibilities are assigned to a trustee appointed pursuant to such resolution, indenture or instrument. The books and records of the Authority shall be open to inspection at all reasonable times by the Members and their representatives. The Authority shall give an audited written report of all financial activities for each Fiscal Year to the Members within 210 days after the close of each Fiscal Year.

The Treasurer, as controller of the Authority, shall contract with a certified public accountant or public accountant to make an independent annual audit of the accounts and records of the Authority. In each case the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the California Government Code, as amended from time to time, and shall conform to generally accepted auditing standards. When such an audit of an account and record is made by a certified public accountant or public accountant, a report thereof shall be filed as public records with each of the Members and with the county auditor of San Bernardino County. Such report shall be filed within 12 months of the end of the Fiscal Year under examination.

Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants, in making an audit pursuant to this Section shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for the purpose.

Section 6.03. Funds. Subject to the applicable provisions of any instrument or agreement which the Authority may enter into, which may provide for a trustee to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds as nearly as possible in accordance with generally accepted accounting practices, and shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement.

Section 6.04. Annual Budget and Administrative Expenses. The Board may adopt a budget for administrative expenses, which shall include all expenses not included in any financing issue of the Authority, annually prior to July 1st of each year. The estimated annual administrative expenses of the Authority shall be allocated by the Authority to the Members equally.

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10 ARTICLE VII
TERM; ADDITION OF MEMBERS; DISSOLUTION
Section 7.01. Term. This Agreement shall become effective as of the date first set forth above, and the Authority shall come into existence, on the date of execution and delivery hereof, and this Agreement shall thereafter continue in full force and effect until the later of December 31, 2090, or the date on which all Indebtedness and other obligations of the Authority and the interest thereon shall have been paid in full or until adequate provision for such payment shall have been made in accordance with the instruments governing such Indebtedness, and no contracts to which the Authority is a party remain in effect, unless earlier dissolved pursuant to Section 7.04 hereof.

Section 7.02. Addition of Members. (a) Public Agencies possessing one or more of the powers specified in the first paragraph of the recitals to this Agreement may be added as parties to this Agreement, and become Members, upon the filing by such Public Agency with the Board of an instrument in form and substance satisfactory to the Board together with a certified copy of a resolution of its governing body, whereby the Public Agency (i) agrees to the provisions of this Agreement and (ii) requests to become a Member. In reviewing an application for membership, the Board may reject said application based on the creditworthiness of the applicant or on any other matter which has affected or may affect the creditworthiness of the applicant and which may thereby affect the creditworthiness of the Authority. The Board also reserves the right to reject an applicant if the Board determines that the membership of such applicant would be detrimental to the effectiveness of the Authority or would interfere with the realization of the Authority’s goals and purposes.
(b) Notwithstanding Section 7.02(a) hereof, no such Public Agency shall become a Member until (i) its admission is approved by a vote of a majority of the Board voting on the matter and (ii) such Public Agency deposits or agrees to deposit with the Authority an amount equal to such share of the costs and expenses incurred by the Authority prior to the date of admission of such Public Agency as a Member as shall be determined by the Board.
(c) Upon satisfaction of the provisions of Section 7.02(a) and 7.02(b) hereof, such Public Agency shall be a Member for all purposes of this Agreement, and the instrument provided pursuant to Section 7.02(a) hereof shall become a part of the official records of the Authority. Neither the effectiveness of such membership nor such instrument shall constitute an amendment or modification of this Agreement for purposes of Section 8.05 hereof.

Section 7.03. Withdrawal or Exclusion of a Member. (a) Any Member may withdraw from the Authority upon the following conditions: (i) the Member shall have filed with the Board a certified copy of a resolution of its governing body expressing its desire to so withdraw and (ii) if the Authority, prior to the filing of such resolution, shall have incurred any obligation payable from contributions, payments or advances in accordance with Section 6.01 hereof, which obligation matures after the date of such filing, the withdrawing Member shall have paid, or made arrangements satisfactory to the Board to pay to the Authority its pro rata portion of such obligation.

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11 (b) Upon compliance with the conditions specified in Section 7.03(a) hereof, the withdrawing Member shall no longer be considered a Member for any reason or purpose under this Agreement and its rights and obligations under this Agreement shall terminate. The withdrawal of a Member shall not affect any obligations of such Member under any contract between the withdrawing Member and the Authority. (c) Any Member which has (i) defaulted under a contract with the Authority, or (ii) failed to pay any required contributions, payments or advances in accordance with Section 6.01 hereof, may have its rights under this Agreement terminated and may be excluded from participating in the Authority by a vote of a majority of the members of the Board voting on the matter (excluding from voting the member(s) of the Board, if any, representing the defaulting Member). Any excluded Member shall continue to be liable for its obligations under any contract with the Authority and for any unpaid contribution, payment or advance approved by the Board prior to such Member’s exclusion and not objected to by such Member by written notice to the Authority within thirty (30) days after such approval.

No withdrawal from membership pursuant to Sections 7.03(a) and 7.03(b) hereof or exclusion from participation pursuant to Section 7.03(c) hereof shall constitute an amendment or modification of this Agreement for purposes of Section 8.05 hereof.

Section 7.04. Dissolution. With the approval of the Board, the Authority may be dissolved, if at the time of such dissolution the Authority has no Indebtedness outstanding and is not a party to any contract remaining in effect (unless adequate provision shall have been made for the discharge of such contract). Upon the dissolution or termination of the Authority, and after payment or provision for payment, all debts and liabilities, the assets of the Authority shall be distributed to the Members in such manner as shall be determined by the Board.

ARTICLE VIII

MISCELLANEOUS PROVISIONS
Section 8.01. Notices. (a) Any notice, demand or request to any Member provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to the person designated by such Member upon the commencement of its membership in the Authority. (b) A Member may, at any time, by written notice to each other Member and the Authority, designate different persons or different addresses for the giving of notices, demands or requests to it hereunder.
(c) Any notice, demand or request to the Authority provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to City of San Bernardino Financing Authority, 290 North D Street, San Bernardino, California 92401, or at the notice address most recently provided by said Member pursuant to this Section

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12 (d) The Authority may, at any time, by written notice to each Member, designate a different or additional person or a different address for giving notices, demands or requests to it hereunder.

Section 8.02. Section Headings. All section headings in this Agreement are for convenience of reference only and are not to be construed as modifying or governing the language in the section referred to or to define or limit the scope of any provision of this Agreement.

Section 8.03. Consent. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld.

Section 8.04. Law Governing. This Agreement is made in the State of California under the constitution and laws of the State of California, and is to be so construed.

Section 8.05. Amendments. This Agreement may be amended at any time, or from time to time, except as limited by contract with the owners of Indebtedness issued or incurred by the Authority, a Member or a Local Agency or by applicable regulations or laws of any jurisdiction having authority, by one or more supplemental agreements executed by all then current Members either as required in order to carry out any of the provisions of this Agreement or for any other purpose.

Section 8.06. Enforcement by Authority. The Authority is hereby authorized to take any or all legal or equitable actions, including but not limited to injunction and specific performance, necessary or permitted by law to enforce this Agreement.

Section 8.07. Severability. In the event that any term, covenant or condition of this Agreement or the application of such term, covenant or condition shall be held invalid as to any person or circumstance by any court having jurisdiction in the premises, all other terms, covenants and conditions of this Agreement and their application shall not be affected thereby, but shall remain in force and effect unless a court holds that the provisions are not separable from all other provisions of this Agreement.

Section 8.08. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Members. No Member may assign any right or obligation hereunder without the written consent of the other Members. The immediately preceding sentence shall not affect, in any respect, any right of assignment under any contract between any Member and the Authority.

Section 8.09. Execution of Counterparts. This Agreement may be executed in any number of counterparts. All such counterparts shall be deemed to be originals and shall together constitute but one and the same instrument.
(Signature page follows)
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S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, on the day and year first set forth above.

CITY OF SAN BERNARDINO
By: ______________________________________
Helen Tran, Mayor
ATTEST:
_________________________________
Genoveva Rocha, City Clerk

SAN BERNARDINO CITY HOUSING

AUTHORITY
By: ______________________________________
Helen Tran, Chairman
ATTEST:
_________________________________
Genoveva Rocha, Secretary
-Signature PageJoint Exercise of Powers Agreement
Creating City of San Bernardino Financing Authority

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Resolution No. 2024-090
May 15, 2024

RESOLUTION NO. 2024-090

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN BERNARDINO AUTHORIZING THE CREATION OF

THE CITY OF SAN BERNARDINO FINANCING

AUTHORITY AND CERTAIN OTHER MATTERS

PERTAINING THERETO
WHEREAS, the City Council (the “City Council”) of the City of San Bernardino (the "City") has determined that it is in the best interests of the City to approve a joint powers authority which shall be created by the City and the San Bernardino City Housing Authority (the "Housing Authority") for the purpose of assisting the members of such joint powers authority with the financing of public capital improvements for the benefit of the community; and WHEREAS, it has been proposed that the City and the Housing Authority form a joint powers authority to be designated as the "City of San Bernardino Financing Authority" (the "Financing Authority"), pursuant to a Joint Exercise of Powers Agreement (the "Joint Powers Agreement"), by and between the City and the Housing Authority, dated May 15, 2024, a copy of which has been presented to the City Council, pursuant to the Joint Powers Law (Articles 1 through 4 of Chapter 5, division 7, Title 1 of the California Government Code); and WHEREAS, the City Council, with the aid of its staff, has reviewed the Joint Powers Agreement and the City Council wishes to approve the Joint Powers Agreement, the creation of the Financing Authority and matters related thereto.

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

SECTION 1. Creation of Authority. The City hereby approves the creation of the Financing Authority, the membership of the City therein and the Joint Powers Agreement. The Mayor and the City Clerk are and each of them is hereby authorized and directed to execute and delivery the Joint Powers Agreement for and on behalf of the City with any such changes as the City Manager may deem appropriate.

SECTION 2. Effective Date. This Resolution is and shall be effective from the date of its adoption.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this 15th day of May, 2024.

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Resolution No. 2024-090
Resolution No. 2024-090
May 15, 2024

Helen Tran, Mayor
City of San Bernardino
Attest:

Genoveva Rocha, CMC, City Clerk
Approved as to form:

Sonia R. Carvalho, City Attorney
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Resolution No. 2024-090
Resolution No. 2024-090
May 15, 2024

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. 2024-090, adopted at a regular meeting held on the 15th day of May, 2024 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 _______________, 2024.
__________________________________
Genoveva Rocha, CMC, City Clerk
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Resolution No. 2024-091
May 15, 2024

RESOLUTION NO. 2024-091

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN

BERNARDINO DECLARING ITS INTENT TO ISSUE TAX EXEMPT

OBLIGATIONS TO BE USED TO REIMBURSE EXPENDITURES PRIOR

TO THE ISSUANCE OF SUCH BONDS
WHEREAS, the City of San Bernardino (the “City”) plans to issue tax-exempt lease revenue bonds (the “Obligations”) to fund the seismic retrofit and renovation of City Hall (the “Project”); and
WHEREAS, the City reasonably expects to use a portion of the proceeds of the Obligations to reimburse the City for expenditures on the Project.

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

SECTION 1. Declaration of Official Intent. The City hereby declares its official intent, subject to the further approval of this City Council, to use up to $30,000,000 million of the proceeds of the Obligations to reimburse for expenditures on the Project. It is intended that this Resolution shall constitute a declaration of “official intent” within the meaning of Section 1.150- 2 of the Treasury Regulations promulgated under Section 150 of the Internal Revenue Code, as amended.

SECTION 2. Other Approvals. The adoption of this Resolution shall not bind the Authority to proceed with execution and delivery of the Obligations until and unless all other necessary actions and approvals are taken or received in accordance with all applicable laws, at the discretion of the City.

SECTION 3. Effective Date. This Resolution shall take effect from and after the date of its passage and adoption.

APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 15th day of May, 2024.

Helen Tran, Mayor
Attest:

Genoveva Rocha, City Clerk
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Resolution No. 2024-091
Resolution No. 2024-091
May 15, 2024

Approved as to form:

Sonia R. Carvalho, City Attorney
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Resolution No. 2024-091
Resolution No. 2024-091
May 15, 2024

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, City Clerk of the City of San Bernardino, hereby certify that the attached is a true copy of Resolution No. 2024-___, adopted at a regular meeting held on the 15th day of May, 2024 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 _______________, 2024.
__________________________________
Genoveva Rocha, City Clerk
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DISCUSSION
San Bernardino City Housing Authority
Request for Housing Authority Action
Date: May 15, 2024
To: Honorable Chairperson and Housing Authority Commissioners Subject: Authorizing the Execution of a Joint Exercise Powers Agreement with the City of San Bernardino and
Adopting Resolution No. SBHA/2024-1 of the San
Bernardino City Housing Authority Authorizing the
City of San Bernardino Financing Authority
Recommendation:

It is recommended that the San Bernardino City Housing Authority:

1. Authorize the execution of the Joint Exercise Power Agreement between the San Bernardino City Housing Authority and the City of San Bernardino; and

2. Adopt Resolution SBHA/2024-1 of the San Bernardino City Housing Authority authorizing the creation of the City of San Bernardino Financing Authority and certain other matters pertaining thereto.

Executive Summary
Staff have been working to identify alternative ways to pay for a potential seismic retrofit and renovation of the City Hall (and potentially other capital improvement projects of the City). To that end, the City of San Bernardino (“City”) and the City of San Bernardino Housing Authority (“Housing Authority”) seek to use lease revenue obligations to finance the projects. To issue lease revenue bonds, the City and the Housing Authority would need to enter into a Joint Exercise of Powers Agreement (“JEPA”) and form a Joint Powers Authority (“JPA”). The joint powers authority is proposed to be called the City of San Bernardino Financing Authority (“Financing Authority”) and the Financing Authority will issue the lease revenue bonds.

Background
San Bernardino City Housing Authority
On May 5, 2003, the Mayor and Common Council adopted Resolution No. 2003-105 (Attachment 3) declaring a need to create a San Bernardino City Housing Authority (“Housing Authority”) for the purpose of facilitating redevelopment of residential neighborhoods in the City. On July 9, 2003, the Housing Authority unanimously adopted Bylaws (Attachment 4) that stated the governing board shall be called “Board Commissioners” consisting of the Chairperson (the Mayor), a Vice-Chairperson (the Packet Page. 2151
Mayor Pro Tempore), and seven (7) Commissioners (the City Council). The Chairperson shall preside at all meetings of the Board of Commissioners of the Authority but shall not be entitled to a vote.

Joint Exercise of Powers Act
The Joint Exercise of Powers Act, Government Code section 6500 et seq. (“Act”) permits public agencies to enter into a joint exercise of powers agreement to form a separate governmental entity to jointly exercise powers common to the member agencies. (Government Code Section 6502). The parties to the JEPA may create a separate legal entity (i.e. a joint powers authority) under the JEPA to administer the agreement. Additionally, the joint powers authorities have the power to issue bonds secured by local revenues, in the case of the City, lease revenues. This is a commonly utilized financing mechanism for cities throughout the State of California.

San Bernardino City Hall
San Bernardino City Hall was one of the focal points of the 93-acre urban renewal Central City Project that encompassed the old Central Business District. The City Hall building was at the center of an 11-acre block that served as a civic and cultural center, which connected to the mall site by a pedestrian bridge. Completed in 1972, the design of City Hall was engendered civic pride and reflected the urban environment around it. The building consists of 6 floors, plus a mezzanine floor and basement, and offers approximately 115,000 sq. ft. of office space. It is constructed with lightweight concrete slabs, beams, and columns, and is an example of non-ductile concrete construction.

In 2007, URS Corporation was retained by the City to perform a seismic evaluation of City Hall, which concluded that the building needed seismic retrofitting. URS’ evaluation identified areas of concern, which would require a more detailed evaluation for identification of risk and potential remedial strengthening. URS’ assessment considered several seismic retrofit options that would reduce City Hall’s vulnerability to earthquakes and provide for collapse prevention and life safety. In 2007, it was estimated that these retrofit measures would cost between $12 million and $15 million.

In 2015, IDS Group was retained by the City to perform a seismic evaluation of City Hall, which included the use of computer models to identify deficiencies and develop seismic retrofit designs. While the report does not explicitly state the magnitude of earthquake required to cause structural failure, it discusses City Hall’s proximity to both the San Jacinto and San Andreas fault zones, noting they are capable of producing earthquakes between 6.5 and 8.0 in magnitude. IDS Group noted that the configuration and design of the building poses challenges for retrofitting the building. An interior solution will preserve the unique exterior architecture but involves significant renovation and disruption of the interior, whereas an exterior solution will significantly change the appearance of the building. In 2016, IDS estimated that a retrofit would cost approximately $14 million; however, they cautioned that this figure could halve, or double once complete designs are prepared, and all possible costs are factored in.

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In April 2016, City staff began identifying buildings to relocate staff and elected officials. Then, following increased seismic activity detected in the Salton Sea area, which raised the possibility of a major earthquake occurring, City Manager Mark Scott concluded that an emergency relocation was necessary and directed staff to find leased space as quickly as practicable. On November 21, 2016, Mr. Scott recommended vacating City Hall, stating that the building was a seismic risk based on the two prior independent evaluations, and recommended relocating to Vanir Tower.

On January 31, 2024, the Mayor and City Council received an informational report that provided an overview of the City Hall Renovation Project, the site history, a review of the seismic retrofit and renovation assessments, the design build process, and potential financing options.

Discussion
The City and the Housing Authority intend to utilize lease revenue bonds to finance capital projects. Such a financing strategy requires the creation of a Financing Authority to implement those financing strategies.

The governing body of the Financing Authority will be its Board of Directors, which will consist of the seven (7) members of the City Council, and it is through these Board Directors that the power of the Financing Authority is vested and exercised. The Financing Authority will also include Officers of the Board, which will consist of the Mayor (Chairperson), Mayor Pro Tempore (Vice Chairperson), City Manager (Executive Director), Director of Finance (Treasurer), and City Clerk (Secretary). Any regular meeting of the Financing Authority’s Board of Directors shall be held at the same time and same location as regular meetings of the City Council and noticed in the same manner. The Board of Directors of the Financing Authority will conduct a regular meeting at least once each calendar year on the second Monday of December. The Financing Authority Board meetings will have separate agendas from the City Council meetings and will comply with Brown Act requirements.

Presented before the Commissioners of the San Bernardino City Housing Authority are the following items related to forming the Financing Authority and the JEPA:
• Resolution SBHA/2024-1 of the San Bernardino City Housing Authority authorizing the creation of the City of San Bernardino Financing Authority and certain other matters pertaining thereto.
• A Joint Exercise Power Agreement between the San Bernardino City Housing Authority and the City of San Bernardino.

Fiscal Impact
There is no fiscal impact associated with the execution of the joint exercise powers agreement between the San Bernardino City Housing Authority and the City of San Bernardino or adopting a resolution authorizing the creation of the City of San Bernardino Financing Authority.

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Conclusion
It is recommended that the San Bernardino City Housing Authority:

1. Authorize the execution of the Joint Exercise Power Agreement between the San Bernardino City Housing Authority and the City of San Bernardino; and

2. Adopt Resolution SBHA/2024-1 of the San Bernardino City Housing Authority authorizing the creation of the City of San Bernardino Financing Authority and certain other matters pertaining thereto.

Attachments
Attachment 1 – Joint Exercise Power Agreement between the San Bernardino City Housing Authority and the City of San Bernardino.

Attachment 2 – Resolution No. SBHA/2024-1; of the San Bernardino City Housing Authority authorizing the creation of the City of San Bernardino Financing Authority.

Attachment 3 - Resolution No. 2003-105 Establishment of the San Bernardino City Housing Authority
Attachment 4 - Resolution No. SBHA/2003-1 Housing Authority Bylaws Ward:

All Wards
Synopsis of Previous Council Actions:

None
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JOINT EXERCISE OF POWERS AGREEMENT

CREATING

CITY OF SAN BERNARDINO FINANCING AUTHORITY
Dated as of May 15, 2024
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TABLE OF CONTENTS
Page
-iARTICLE I

DEFINITIONS
Section 1.01. Definitions ........................................................................................................1

ARTICLE II

GENERAL PROVISIONS
Section 2.01. Purpose .............................................................................................................3 Section 2.02. Creation of Authority........................................................................................3

ARTICLE III
BOARD
Section 3.01. Board.................................................................................................................3 Section 3.02. Powers...............................................................................................................3 Section 3.03. Compensation ...................................................................................................4 Section 3.04. Meetings of the Board; Voting .........................................................................4

ARTICLE IV

OFFICERS AND EMPLOYEES
Section 4.01. Officers .............................................................................................................4 Section 4.02. Subordinate Officers.........................................................................................5 Section 4.03. Removal of Officers .........................................................................................5 Section 4.04. Chairman...........................................................................................................5 Section 4.05. Vice Chairman..................................................................................................5 Section 4.06. Secretary ...........................................................................................................5 Section 4.07. Treasurer...........................................................................................................5 Section 4.08. Officers in Charge of Records, Funds and Accounts .......................................5 Section 4.09. Other Employees ..............................................................................................6 Section 4.10. Conflict of Interest Code ..................................................................................6

ARTICLE V
POWERS
Section 5.01. General Powers.................................................................................................6 Section 5.02. Specific Powers ................................................................................................6 Section 5.03. Restrictions on Exercise of Powers ..................................................................7 Section 5.04. Liability; Contribution......................................................................................7 Section 5.05. Indemnity by Authority for Litigation Expenses of Officer, Board Member or Employee .......................................................................................8 Section 5.06. Execution of Contracts .....................................................................................8 Packet Page. 2156
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TABLE OF CONTENTS
(continued)
Page
-iiARTICLE VI
CONTRIBUTION; ACCOUNTS AND REPORTS; FUNDS
Section 6.01. Contributions ....................................................................................................8 Section 6.02. Accounts and Reports.......................................................................................9 Section 6.03. Funds.................................................................................................................9 Section 6.04. Annual Budget and Administrative Expenses ..................................................9

ARTICLE VII
TERM; ADDITION OF MEMBERS; DISSOLUTION
Section 7.01. Term................................................................................................................10 Section 7.02. Addition of Members......................................................................................10 Section 7.03. Withdrawal or Exclusion of a Member ..........................................................10 Section 7.04. Dissolution......................................................................................................11

ARTICLE VIII

MISCELLANEOUS PROVISIONS
Section 8.01. Notices ............................................................................................................11 Section 8.02. Section Headings ............................................................................................12 Section 8.03. Consent ...........................................................................................................12 Section 8.04. Law Governing ...............................................................................................12 Section 8.05. Amendments...................................................................................................12 Section 8.06. Enforcement by Authority ..............................................................................12 Section 8.07. Severability.....................................................................................................12 Section 8.08. Successors and Assigns ..................................................................................12 Section 8.09. Execution of Counterparts ..............................................................................12 Packet Page. 2157
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1 JOINT EXERCISE OF POWERS AGREEMENT

CREATING THE CITY OF SAN BERNARDINO FINANCING AUTHORITY THIS JOINT EXERCISE OF POWERS AGREEMENT (the “Agreement”), is made and entered into this May 15, 2024 by and among the Members (as defined herein); W I T N E S S E T H:

WHEREAS, agencies formed under Article 1 (commencing with Section 6500) of the Joint Powers Law (as defined herein) are permitted to provide financing for any of their members or other local public agencies in the State of California in connection with the lease, acquisition, construction and improvement of public capital improvements, working capital requirements or insurance programs of such members or other local agencies; and WHEREAS, the Members wish to form an agency under the Joint Powers Law, known as the City of San Bernardino Financing Authority, for the purpose of providing an entity to assist in providing financing, for purposes which are authorized by law and which could finance, lease, own, operate and maintain public capital improvements for any of its members, or to be owned by any of its members (as defined herein).

NOW, THEREFORE, in consideration of the above premises and of the mutual promises herein contained, the Members do hereby agree as follows:

ARTICLE I

DEFINITIONS
Section 1.01. Definitions. In addition to the other terms defined herein, the following terms, whether in the singular or in the plural, when used herein and initially capitalized shall have the meanings specified.
“Agreement” means this Joint Exercise of Powers Agreement, as originally entered into or as amended from time to time in accordance with Section 8.05 hereof. “Authority” means the City of San Bernardino Financing Authority established pursuant to Section 2.02 hereof.
“Board” means the Board referred to in Section 3.01 hereof, which shall be the governing body of the Authority.
“Bond Law” means the Marks-Roos Local Bond Pooling Act of 1985, being Article 4 of the Joint Powers Law (commencing with Section 6584), as amended from time to time, Article 2 of the Joint Powers Law, as amended from time to time, or any other law available for use by the Authority in the authorization and issuance of Indebtedness or to provide for the financing of Indebtedness and/or Public Capital Improvements, as amended from time to time.

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2 “Bond Purchase Agreement” means an agreement between the Authority and a Member or a Local Agency, pursuant to which the Authority agrees to purchase Indebtedness from a Member or a Local Agency, as the case may be.
“City” means the City of San Bernardino.
“Fiscal Year” means the fiscal year of the Authority as established from time to time by the Board, being at the date of this Agreement the period from July 1 in any calendar year to and including June 30 in the succeeding calendar year.
“Housing Authority” means the San Bernardino City Housing Authority. “Indebtedness” means bonds, notes or other evidences of indebtedness, and all other obligations, instruments and agreements constituting “Bonds” under the Joint Powers Law, which are issued or incurred by or on behalf of the Authority, a Member or a Local Agency pursuant to the Bond Law or pursuant to any other provision of law to finance the lease, acquisition, construction or improvement of Public Capital Improvements, Working Capital Requirements, or liability or other insurance needs of any Local Agency (the “Local Obligations”). “Joint Powers Law” means Articles 1 through 4 (commencing with Section 6500) of Chapter 5, Division 7, Title 1 of the California Government Code, as amended from time to time. “Liability Share” means, with respect to any Member, the amount of a judgment for damages divided by the number of Members at the time the act or omission occurred, unless any portion of the judgment arises from an act or omission directly related to the studying, planning, financing, developing, acquiring, purchasing, construction, reconstructing, implementing, improving, enlarging, enhancing, operating, maintaining, selling, disposing of, or decommissioning of any project undertaken by the Authority under this Agreement, in which case, with respect to such portion, the term “Liability Share” shall mean, with respect to any Member, the amount of such portion multiplied by a fraction equal to (i) such Member’s entitlement or right, if any, to participate in such project at the time the act or omission occurred, divided by (ii) the aggregate amount of all Members’ entitlements or rights to participate in such project at the time the act or omission occurred.
“Local Agency” means each of the Members, any agency or subdivision of a Member, and any other city, county, authority, district or public corporation of the State of California. “Members” means, collectively, all of the Members that are parties to this Agreement, which Members shall initially consist of the City of San Bernardino and the San Bernardino City Housing Authority and which shall include all additional Members that become parties hereto pursuant to the provisions of Section 7.02 hereof; provided, however, that the term “Member” shall not include any entity which shall have withdrawn or been excluded from the Authority pursuant to Section 7.03 hereof.
“Public Agency” has the meaning given to the term “public agency” in Article 1 of the Joint Powers Law.

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3 “Public Capital Improvements” has the meaning given such term in Section 6585(n) of the Bond Law, as such provision may be amended from time to time. “Working Capital Requirements” means the requirements of any Local Agency for funds to be used by, or on behalf of, such Local Agency for any purpose for which such Local Agency may borrow money pursuant to Section 53852 of the California Government Code, as amended from time to time.

ARTICLE II

GENERAL PROVISIONS
Section 2.01. Purpose. This Agreement is made pursuant to the Joint Powers Law providing for the joint exercise of powers common to two or more Members, and for other purposes as permitted under the Joint Powers Law and the Bond Law. The purpose of this Agreement is to provide for the financing or refinancing of Public Capital Improvements for and Working Capital Requirements and insurance programs of, the Members and any Local Agency, including without limitation, the purchase by the Authority of Indebtedness of any of the Members or a Local Agency pursuant to Bond Purchase Agreements, the lending of funds by the Authority to a Member or a Local Agency or the entering into of contractual arrangements by the Authority with a Member or a Local Agency and any other transaction authorized by the Joint Powers Law and other laws; engaging in financings relating to the encouragement of economic development and the stimulation of public revenues in the City through the acquisition and financing by the Authority of such Public Capital Improvements; and to engage in any other transactions authorized by the Joint Powers Law and other laws.

Section 2.02. Creation of Authority. Pursuant to the Joint Powers Law, there is hereby created a public entity to be known as the “City of San Bernardino Financing Authority”. The Authority shall be a public entity separate and apart from the Members, and shall administer this Agreement.

ARTICLE III
BOARD
Section 3.01. Board. The Authority shall be governed by a Board, which shall be comprised of members determined as provided in this Section 3.01. The Board shall be called the “Board of the City of San Bernardino Financing Authority.” Notwithstanding anything contained in this Section 3.01 to the contrary, no member of the Board shall hold membership on the Board after the expiration of his or her term as a member of the governing body of a Member, or after he or she resigns, is removed or for any other reason no longer serves as a member of the governing body of a Member. The Board members shall be the members of the City Council of the City.

Section 3.02. Powers. Subject to the limitations of this Agreement and the laws of the State of California, the powers of this Authority shall be vested in and exercised by and its property controlled and its affairs conducted by the Board. The Board shall have the responsibility for the general management of the affairs, property and business of the Authority and may, from time to Packet Page. 2160
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4 time, adopt and modify such Bylaws and other rules and regulations for that purpose and for the conduct of its meetings as it may deem proper.

Section 3.03. Compensation. Members of the Board shall serve without compensation.

Each such member may be reimbursed for necessary and actual expenses, including travel incident to his or her services as member of the Board, pursuant to resolution of the Board. Any member of the Board may elect, however, to decline said reimbursement.

Section 3.04. Meetings of the Board; Voting.
(a) Call, Notice and Conduct of Meetings. All meetings of the Board, including without limitation, regular, adjourned regular and special meetings, shall be called, noticed, held and conducted in accordance with the Ralph M. Brown Act, being Sections 54950 et seq. of the California Government Code, as amended from time to time. (b) Regular Meetings. The Board shall hold a regular meeting not less than once each calendar year. Regular meetings of the Board shall be held at such time as the Board may fix by resolution from time to time, and if any day so fixed shall fall upon a Saturday, Sunday or legal holiday, then, upon the next succeeding business day at the same hour. No notice of any regular meeting of the Board need be given to the members of the Board.
(c) Special Meetings. Special meetings of the Board shall be held whenever called by the Chairman of the Authority or by a majority of the members of the Board, in accordance with the provisions of the California Government Code, as amended from time to time.
(d) Quorum. A majority of the total number of members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time.
(e) Voting. Each member of the Board shall have one vote. The affirmative votes of at least a majority of the members of the Board present at any meeting at which a quorum is present shall be required for the Board to take any action. Every act or decision done or made by a majority of the members of the Board present at any meeting at which a quorum is present shall be the act of the Board.

ARTICLE IV

OFFICERS AND EMPLOYEES
Section 4.01. Officers. The officers of the Authority shall be a Chairman, a Vice Chairman, an Executive Director, a Secretary, a Treasurer and such other officers as the Board may appoint. The Chairman shall be the Mayor of the City. The Vice Chairman shall be the ViceMayor of the City. The Treasurer shall be the Director of Finance of the City. The City Manager of the City shall serve as the Executive Director of the Authority. The City Clerk of the City shall serve as the Secretary of the Authority.

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5 Section 4.02. Subordinate Officers. The Board may elect or authorize the appointment of such other officers than those herein above mentioned as the business of the Authority may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in this Agreement, or as the Board, from time to time, may authorize or determine.

Section 4.03. Removal of Officers. Any officer may be removed, either with or without cause, by a majority of the members of the Board at any regular or special meeting of the Board.

Should a vacancy occur in any office as a result of death, resignation, removal, disqualification or any other cause, the Board may delegate the powers and duties of such office to any officers or to any members of the Board until such time as a successor for said office has been appointed.

Section 4.04. Chairman. The Chairman shall be the chief executive officer of the Authority and shall, subject to the control of the Board, have general supervision, direction and control of the business and officers of the Authority. He or she shall be ex officio member of all standing committees, and shall have the general powers and duties of management of the Authority and shall have such other powers and duties as may be prescribed by the Board or this Agreement.

The Chairman shall preside at all meetings of the Board.

Section 4.05. Vice Chairman. In the absence or disability of the Chairman, the Vice Chairman shall perform all the duties of the Chairman and when so acting shall have all the powers of and be subject to all of the restrictions upon the Chairman. The Vice Chairman shall have such other powers and perform such other duties as may, from time to time, be prescribed for him or her by the Board or this Agreement.

Section 4.06. Secretary. The Secretary shall keep or cause to be kept a book of minutes at the principal office or at such other place as the Board may order, of all meetings of the Board, with the time and place of holding, whether regular or special, and if special, how authorized, the notice thereof given, the names of those present at Board meetings and the proceedings thereof.

The Secretary shall give or cause to be given notice of all meetings of the Board. The Secretary shall keep the Authority records in safe custody and shall have such other powers and perform such other duties as may be prescribed by the Board or this Agreement.

Section 4.07. Treasurer. Pursuant to Section 6505.6 of the Joint Powers Law, the Board shall designate a Treasurer of the Authority. Subject to the applicable provisions of any indenture or resolution providing for a trustee or other fiscal agent, the Treasurer is designated as the depositary of the Authority to have custody of all the money of the Authority, from whatever source, and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Joint Powers Law.

The Treasurer is hereby designated as controller of the Authority and, as such, shall have the powers, duties and responsibilities specified in Section 6505.5 of the Joint Powers Law. The controller of the Authority shall draw checks to pay demands against the Authority when the demands have been approved by the Authority.

Section 4.08. Officers in Charge of Records, Funds and Accounts. The Treasurer to the extent such officer’s duties and responsibilities require, is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall Packet Page. 2162
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6 file an official bond as required by Section 6505.1 of the Joint Powers Law in the amount of $40,000.

Section 4.09. Other Employees. The Board shall have the power to appoint and employ such other officers, employees, consultants and independent contractors as it may deem necessary for the purposes of this Agreement, any of whom may be employees of a Member, and who shall have such powers, duties and responsibilities as are determined by the Board.

All of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, workers’ compensation and other benefits which apply to the activities of officers, agents, or employees of a public agency when performing their respective functions shall apply to them to the same degree and extent while engaged in the performance of any of the functions and other duties under this Agreement.

None of the officers, agents, or employees directly employed by the Authority shall be deemed, by reason of their employment by the Authority to be employed by any of the Members or, by reason of their employment by the Authority, to be subject to any of the requirements of any of the Members.

Section 4.10. Conflict of Interest Code. The Authority by resolution shall adopt by reference a Conflict of Interest Code as required by the Political Reform Act, commencing with section 81000 of the Government Code of the State of California.

ARTICLE V
POWERS
Section 5.01. General Powers. The Authority shall exercise in the manner herein provided powers common to Members, or as otherwise permitted under the Joint Powers Law, and necessary or convenient to the accomplishment of the purposes of this Agreement, subject to the restrictions set forth in Section 5.03 hereof.

As provided in the Joint Powers Law, the Authority shall be a public entity separate from the Members. The Authority shall have all of the powers provided in the Joint Powers Law, including but not limited to Article 4 of the Joint Powers Law (commencing with Section 6584), and including the power to issue or incur Indebtedness under the Bond Law.

Section 5.02. Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary for the exercise of the foregoing powers, including but not limited to, any or all of the following:
(a) to make and enter into contracts;
(b) to employ agents or employees;
(c) to plan, develop, acquire, construct, manage, maintain, repair, replace or operate any Public Capital Improvement, including the common power of the Members to acquire any Public Capital Improvement by the power of eminent domain; Packet Page. 2163
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7 (d) to acquire (by the exercise of the power of eminent domain or otherwise), hold, lease, sell or otherwise dispose of any real or personal property, tangible or intangible, and any interests therein, wherever located;
(e) to issue or incur Indebtedness and otherwise to incur debts, liabilities or obligations, provided that no such Indebtedness, debt, liability or obligation shall constitute a debt, liability or obligation of any of the Members;
(f) to sue and be sued in its own name;
(g) to establish a budget and authorize expenditures therefrom; (h) to apply for, accept, receive and disburse grants, loans and other aids from any agency of the United States or of the State of California or from any private sources; (i) to enter into agreements for the creation of separate public entities and agencies pursuant to the Joint Powers Law;
(j) to invest any money in the treasury as determined by the Authority, in accordance with applicable provisions of the Joint Powers Law and Section 53601 of the California Government Code, as amended from time to time; (k) to apply for letters of credit or other forms of financial guarantees in order to secure the repayment of Indebtedness and enter into agreements in connection therewith; (l) to carry out and enforce all the provisions of this Agreement; (m) to make and enter into Bond Purchase Agreements;
(n) to purchase Indebtedness of a Member or any Local Agency; (o) to establish non-profit corporations or for-profit corporations to assist in accomplishing any of its objectives; and
(p) to exercise any and all other powers as may be permitted by State law and/or the Joint Powers Law (including Section 6588 of the Joint Powers Law).

Section 5.03. Restrictions on Exercise of Powers. The powers of the Authority shall be exercised in the manner provided in the Joint Powers Law and in the Bond Law subject only to the restrictions upon the manner of exercising such powers as are imposed upon the Members in the exercise of similar powers.

Section 5.04. Liability; Contribution. Pursuant to the Joint Powers Law, the debts, liabilities and obligations of the Authority shall not be the debts, liabilities and obligations of any of the Members, except as provided by Section 895.2 of the California Government Code, as amended from time to time, in the case of injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement. In the event any Member is held liable upon any judgment for damages caused by a negligent or wrongful act or omission occurring in the Packet Page. 2164
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8 performance of this Agreement, and pays in excess of its Liability Share of such judgment, such Member shall be entitled to contribution from each other Member and may require each other Member to pay an amount towards the judgment for damages, but in no event shall any such other Member be required to pay in excess of its Liability Share of such judgment. No Board member, Member, officer, agent or employee of the Authority shall be individually or personally liable for the payment of the principal of or premium or interest on any obligations of the Authority or be subject to any personal liability or accountability by reason of any obligations of the Authority; but nothing herein contained shall relieve any such Board member, Member, officer, agent or employee from the performance of any official duty provided by law or by the instruments authorizing the issuance of any obligations of the Authority. Nothing contained in this Agreement shall in any way diminish the liability of any Member or other party with respect to any contract between such Member or other party and the Authority.

Section 5.05. Indemnity by Authority for Litigation Expenses of Officer, Board Member or Employee. In the event any Board member, officer or employee of the Authority be sued, either alone or with others, because he or she is or was a Board member, officer or employee of the Authority, in any proceeding arising out of his or her alleged misfeasance or nonfeasance in the performance of his or her duties or out of any alleged wrongful act against the Authority or by the Authority, indemnity to such person for reasonable expenses, including attorneys’ fees incurred in the defense of the proceedings, may be assessed against the Authority or its receiver by the court in the same or a separate proceeding if the person sued acted in good faith and in a manner such person reasonably believed to be in the best interests of the Authority and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful. The amount of such indemnity shall equal the amount of the expenses, including attorneys’ fees the amount of any judgment, incurred in the defense of the proceeding.

Section 5.06. Execution of Contracts. The Board, except as otherwise provided in this Agreement, may authorize any officer or officers, agent or agents, to enter into any contract or execute any contract or execute any instrument in the name of and on behalf of the Authority and such authorization may be in general or confined to specific instances and unless so authorized by the Board, no officer, agent or employee shall have any power or authority to bind the Authority by any contract or engagement or to pledge its credit or to render it liable for any purpose or in any amount.

ARTICLE VI
CONTRIBUTION; ACCOUNTS AND REPORTS; FUNDS
Section 6.01. Contributions. In accordance with the California Government Code, the Members may in the appropriate circumstances when required hereunder: (a) make contributions from their treasuries as approved from time to time by the Board, for the purposes set forth herein, (b) make payments of public funds to defray the cost of such purposes, (c) make advances of public funds for such purposes, such advances to be repaid as provided herein, or (d) use their personnel, equipment or property in lieu of other contributions or advances. The provisions of Section 6513 of the Joint Powers Law are hereby incorporated into this Agreement. The Authority may make such arrangements relative to the repayment or return to the Members of such contributions, payments and advances as are approved from time to time by the Board.

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9 Any Member which fails to make or pay when due any required contribution, payment or advance to the Authority, may have its rights under this Agreement terminated and may be excluded from participation in the Authority as provided in Section 7.03(c) hereof. Any such Member shall continue to be liable for its obligations under any contract with the Authority and for any unpaid contribution, payment or advance approved by the Board prior to such Member’s exclusion and not objected to by such Member by written notice to the Authority within thirty (30) days after such approval.

Section 6.02. Accounts and Reports. There shall be strict accountability of all funds and reporting of all receipts and disbursements of the Authority. The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice or by any provision of any resolution, indenture or other instrument of the Authority securing its Indebtedness, except insofar as such powers, duties and responsibilities are assigned to a trustee appointed pursuant to such resolution, indenture or instrument. The books and records of the Authority shall be open to inspection at all reasonable times by the Members and their representatives. The Authority shall give an audited written report of all financial activities for each Fiscal Year to the Members within 210 days after the close of each Fiscal Year.

The Treasurer, as controller of the Authority, shall contract with a certified public accountant or public accountant to make an independent annual audit of the accounts and records of the Authority. In each case the minimum requirements of the audit shall be those prescribed by the State Controller for special districts under Section 26909 of the California Government Code, as amended from time to time, and shall conform to generally accepted auditing standards. When such an audit of an account and record is made by a certified public accountant or public accountant, a report thereof shall be filed as public records with each of the Members and with the county auditor of San Bernardino County. Such report shall be filed within 12 months of the end of the Fiscal Year under examination.

Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants, in making an audit pursuant to this Section shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for the purpose.

Section 6.03. Funds. Subject to the applicable provisions of any instrument or agreement which the Authority may enter into, which may provide for a trustee to receive, have custody of and disburse Authority funds, the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds as nearly as possible in accordance with generally accepted accounting practices, and shall make the disbursements required by this Agreement or to carry out any of the provisions or purposes of this Agreement.

Section 6.04. Annual Budget and Administrative Expenses. The Board may adopt a budget for administrative expenses, which shall include all expenses not included in any financing issue of the Authority, annually prior to July 1st of each year. The estimated annual administrative expenses of the Authority shall be allocated by the Authority to the Members equally.

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10 ARTICLE VII
TERM; ADDITION OF MEMBERS; DISSOLUTION
Section 7.01. Term. This Agreement shall become effective as of the date first set forth above, and the Authority shall come into existence, on the date of execution and delivery hereof, and this Agreement shall thereafter continue in full force and effect until the later of December 31, 2090, or the date on which all Indebtedness and other obligations of the Authority and the interest thereon shall have been paid in full or until adequate provision for such payment shall have been made in accordance with the instruments governing such Indebtedness, and no contracts to which the Authority is a party remain in effect, unless earlier dissolved pursuant to Section 7.04 hereof.

Section 7.02. Addition of Members. (a) Public Agencies possessing one or more of the powers specified in the first paragraph of the recitals to this Agreement may be added as parties to this Agreement, and become Members, upon the filing by such Public Agency with the Board of an instrument in form and substance satisfactory to the Board together with a certified copy of a resolution of its governing body, whereby the Public Agency (i) agrees to the provisions of this Agreement and (ii) requests to become a Member. In reviewing an application for membership, the Board may reject said application based on the creditworthiness of the applicant or on any other matter which has affected or may affect the creditworthiness of the applicant and which may thereby affect the creditworthiness of the Authority. The Board also reserves the right to reject an applicant if the Board determines that the membership of such applicant would be detrimental to the effectiveness of the Authority or would interfere with the realization of the Authority’s goals and purposes.
(b) Notwithstanding Section 7.02(a) hereof, no such Public Agency shall become a Member until (i) its admission is approved by a vote of a majority of the Board voting on the matter and (ii) such Public Agency deposits or agrees to deposit with the Authority an amount equal to such share of the costs and expenses incurred by the Authority prior to the date of admission of such Public Agency as a Member as shall be determined by the Board.
(c) Upon satisfaction of the provisions of Section 7.02(a) and 7.02(b) hereof, such Public Agency shall be a Member for all purposes of this Agreement, and the instrument provided pursuant to Section 7.02(a) hereof shall become a part of the official records of the Authority. Neither the effectiveness of such membership nor such instrument shall constitute an amendment or modification of this Agreement for purposes of Section 8.05 hereof.

Section 7.03. Withdrawal or Exclusion of a Member. (a) Any Member may withdraw from the Authority upon the following conditions: (i) the Member shall have filed with the Board a certified copy of a resolution of its governing body expressing its desire to so withdraw and (ii) if the Authority, prior to the filing of such resolution, shall have incurred any obligation payable from contributions, payments or advances in accordance with Section 6.01 hereof, which obligation matures after the date of such filing, the withdrawing Member shall have paid, or made arrangements satisfactory to the Board to pay to the Authority its pro rata portion of such obligation.

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11 (b) Upon compliance with the conditions specified in Section 7.03(a) hereof, the withdrawing Member shall no longer be considered a Member for any reason or purpose under this Agreement and its rights and obligations under this Agreement shall terminate. The withdrawal of a Member shall not affect any obligations of such Member under any contract between the withdrawing Member and the Authority. (c) Any Member which has (i) defaulted under a contract with the Authority, or (ii) failed to pay any required contributions, payments or advances in accordance with Section 6.01 hereof, may have its rights under this Agreement terminated and may be excluded from participating in the Authority by a vote of a majority of the members of the Board voting on the matter (excluding from voting the member(s) of the Board, if any, representing the defaulting Member). Any excluded Member shall continue to be liable for its obligations under any contract with the Authority and for any unpaid contribution, payment or advance approved by the Board prior to such Member’s exclusion and not objected to by such Member by written notice to the Authority within thirty (30) days after such approval.

No withdrawal from membership pursuant to Sections 7.03(a) and 7.03(b) hereof or exclusion from participation pursuant to Section 7.03(c) hereof shall constitute an amendment or modification of this Agreement for purposes of Section 8.05 hereof.

Section 7.04. Dissolution. With the approval of the Board, the Authority may be dissolved, if at the time of such dissolution the Authority has no Indebtedness outstanding and is not a party to any contract remaining in effect (unless adequate provision shall have been made for the discharge of such contract). Upon the dissolution or termination of the Authority, and after payment or provision for payment, all debts and liabilities, the assets of the Authority shall be distributed to the Members in such manner as shall be determined by the Board.

ARTICLE VIII

MISCELLANEOUS PROVISIONS
Section 8.01. Notices. (a) Any notice, demand or request to any Member provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to the person designated by such Member upon the commencement of its membership in the Authority. (b) A Member may, at any time, by written notice to each other Member and the Authority, designate different persons or different addresses for the giving of notices, demands or requests to it hereunder.
(c) Any notice, demand or request to the Authority provided for in this Agreement shall be in writing and shall be deemed properly served, given, or made if delivered in person or sent by registered or certified mail, postage prepaid, to City of San Bernardino Financing Authority, 290 North D Street, San Bernardino, California 92401, or at the notice address most recently provided by said Member pursuant to this Section

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12 (d) The Authority may, at any time, by written notice to each Member, designate a different or additional person or a different address for giving notices, demands or requests to it hereunder.

Section 8.02. Section Headings. All section headings in this Agreement are for convenience of reference only and are not to be construed as modifying or governing the language in the section referred to or to define or limit the scope of any provision of this Agreement.

Section 8.03. Consent. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld.

Section 8.04. Law Governing. This Agreement is made in the State of California under the constitution and laws of the State of California, and is to be so construed.

Section 8.05. Amendments. This Agreement may be amended at any time, or from time to time, except as limited by contract with the owners of Indebtedness issued or incurred by the Authority, a Member or a Local Agency or by applicable regulations or laws of any jurisdiction having authority, by one or more supplemental agreements executed by all then current Members either as required in order to carry out any of the provisions of this Agreement or for any other purpose.

Section 8.06. Enforcement by Authority. The Authority is hereby authorized to take any or all legal or equitable actions, including but not limited to injunction and specific performance, necessary or permitted by law to enforce this Agreement.

Section 8.07. Severability. In the event that any term, covenant or condition of this Agreement or the application of such term, covenant or condition shall be held invalid as to any person or circumstance by any court having jurisdiction in the premises, all other terms, covenants and conditions of this Agreement and their application shall not be affected thereby, but shall remain in force and effect unless a court holds that the provisions are not separable from all other provisions of this Agreement.

Section 8.08. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Members. No Member may assign any right or obligation hereunder without the written consent of the other Members. The immediately preceding sentence shall not affect, in any respect, any right of assignment under any contract between any Member and the Authority.

Section 8.09. Execution of Counterparts. This Agreement may be executed in any number of counterparts. All such counterparts shall be deemed to be originals and shall together constitute but one and the same instrument.
(Signature page follows)
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S-1
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized, on the day and year first set forth above.

CITY OF SAN BERNARDINO
By: ______________________________________
Helen Tran, Mayor
ATTEST:
_________________________________
Genoveva Rocha, City Clerk

SAN BERNARDINO CITY HOUSING

AUTHORITY
By: ______________________________________
Helen Tran, Chairman
ATTEST:
_________________________________
Genoveva Rocha, Secretary
-Signature PageJoint Exercise of Powers Agreement
Creating City of San Bernardino Financing Authority

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Resolution No. SBHA/2024-1
1 RESOLUTION NO. SBHA/2024-1

RESOLUTION OF THE SAN BERNARDINO CITY

HOUSING AUTHORITY AUTHORIZING THE CREATION

OF THE CITY OF SAN BERNARDINO FINANCING

AUTHORITY AND CERTAIN OTHER MATTERS

PERTAINING THERETO
WHEREAS, the San Bernardino City Housing Authority (the “Housing Authority”) has determined that it is in the best interests of the Housing Authority to approve a joint powers authority which shall be created by the City of San Bernardino (the “City”) and the Housing Authority for the purpose of assisting the members of such joint powers authority with the financing of public capital improvements for the benefit of the community; and WHEREAS, it has been proposed that the City and the Housing Authority form a joint powers authority to be designated as the "City of San Bernardino Financing Authority" (the "Financing Authority"), pursuant to a Joint Exercise of Powers Agreement (the "Joint Powers Agreement"), by and between the City and the Housing Authority, dated May 15, 2024, a copy of which has been presented to the City Council, pursuant to the Joint Powers Law (Articles 1 through 4 of Chapter 5, division 7, Title 1 of the California Government Code); and WHEREAS, the Commissioners of the Housing Authority, with the aid of its staff, has reviewed the Joint Powers Agreement and the Commissioners wishes to approve the Joint Powers Agreement, the creation of the Financing Authority and matters related thereto.

BE IT RESOLVED BY THE COMMISSIONERS OF THE SAN BERNARDINO CITY HOUSING AUTHORITY AS FOLLOWS:

SECTION 1. Creation of Authority. The Commissioners of the Housing Authority hereby approves the creation of the Financing Authority, the membership of the Housing Authority therein and the Joint Powers Agreement. The Chair and the Secretary are and each of them is hereby authorized and directed to execute and deliver the Joint Powers Agreement for and on behalf of the City with any such changes as the Chair or his designee may deem appropriate.

SECTION 2. Effective Date. This Resolution is and shall be effective from the date of its adoption.

APPROVED and ADOPTED by the Commissioners and signed by the Chairperson and attested by the Secretary this 15th day of May 2024.

Helen Tran, Chairperson
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Resolution No. SBHA/2024-1
2 Attest:

Genoveva Rocha, Secretary
Approved as to form:

Sonia R. Carvalho, City Attorney
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Resolution No. SBHA/2024-1
3 CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss

CITY OF SAN BERNARDINO )
I, Genoveva Rocha, Secretary to the San Bernardino City Housing Authority, hereby certify that the attached is a true copy of Resolution No. SBHA/2024-1, adopted at a regular meeting held on the 15th day of May 2024 by the following vote:

Commissioners: AYES NAYS ABSTAIN ABSENT
SANCHEZ ______ ______ _______ _______
IBARRA ______ ______ _______ _______
FIGUEROA ______ ______ _______ _______
SHORETT ______ ______ _______ _______
REYNOSO ______ ______ _______ _______
CALVIN ______ ______ _______ _______
ALEXANDER ______ ______ _______ _______
WITNESS my hand and official seal of the San Bernardino City Housing Authority this 15th day of May 2024.
________________________
Genoveva Rocha, Secretary
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ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS
City of San Bernardino
Request for Council Action
Date: May 1, 2024
To: Honorable Mayor and City Council Members
From: Damon L. Alexander, Council Member, 7th Ward
Department: Council Office
Subject: Taxpayer Protection Act (All Wards) – Council
Member Alexander
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