Those persons wishing to speak on any item included on the agenda, or on any matter within the subject matter jurisdiction of the City Council, are invited fill out and submit to the City Clerk a “Request to Speak” form (name and address optional) which is available at the entrance to the City Council Chambers. Additionally, members of the public may submit electronic public comments to CityClerk@cityofchino .org no later than 4:00 p.m. on the day of the meeting. In your email, please include the meeting date, agenda item you are commenting on, and your comment. All comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and will be entered into the record for the meeting specified in email received.
If you require a reasonable accommodation to participate in this meeting per your rights under the Americans with Disabilities Act or for any other reason, please contact the City Clerk ’s Office (909) 334-3306, at least 48 hours prior to the advertised starting time of the meeting.
Any documents produced by the City and distributed to a majority of the City Council regarding any item on this agenda will be made available in the City Clerk ’s Office during normal business hours at City Hall located at 13220 Central Avenue, Chino. In addition, such documents will be posted on the City’s website at www.cityofchino.org.
CHINO CITY COUNCIL
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
CITY HALL COUNCIL CHAMBERS
13220 CENTRAL AVENUE
CHINO, CA 91710
TUESDAY, NOVEMBER 5, 2024
REGULAR MEETING
AGENDA
OPEN SESSION – 6:00 PM
_________________________________________________________________________________
ROLL CALL
Mayor Eunice M. Ulloa, Mayor Pro Tem Karen C. Comstock, Council Member Curtis Burton, Council Member Christopher Flores, Council Member Marc Lucio.
FLAG SALUTE
CEREMONIALS
Proclamations
Purple Heart City - Proclamation to reaffirm the City of Chino's proud commitment to be a Purple Heart City along the Purple Heart Trail to honor the service and sacrifice made to preserve our freedom.
Law Enforcement Records and Support Personnel Day - Proclaim November 14, 2024 as Law Enforcement Records and Support Personnel Day.
Presentations
Inclusion Community Celebration - Recognition of the City's partnerships with non -profit organizations for the Inclusion Community Celebration.
1 CHINO CITY COUNCIL
NOVEMBER 5, 2024 2
Team Chino Softball Team Recognition - Recognition of Team Chino's First Place Win in the First Responders Softball Tournament hosted by Los Angeles Police Department supporting the Special Olympics of Southern California.
AGENDA ADDITIONS/REVISIONS
PUBLIC ANNOUNCEMENTS
This is the time and place for the Mayor to inform the public of all upcoming events and past occurrences of communitywide interest and concern.
PUBLIC COMMENTS
This is the time and place for the general public to address the City Council about subjects that do not appear elsewhere on the agenda. Due to Council policy and Brown Act requirements, action will not be taken on any issues not on the Agenda. Ordinance No. 97-08 (Chino Municipal Code Section
2.04.090) limits speakers to no more than five (5) minutes in which to address Council, except as provided under Government Code 54954.3(b)(2). If more than three (3) persons seek to address the same agenda item or the same subject matter, the Mayor shall establish a maximum period of time not to exceed thirty (30) minutes.
CONSENT CALENDAR
At this time, members of the public may present testimony as to why an item should be removed from the Consent Calendar for separate discussion. Unless a member of the public or City Council requests that an item be removed from the Consent Calendar, all items will be acted upon as a whole and by one vote. Items placed on the Consent Calendar represent routine expenditures and/or actions that support ongoing City operations.
1. Warrants. Approve expenses as audited and within budget for warrants 772810 to 773094, and Electronic Fund Transfers 523135E to 523253E, totaling $8,109,931.24.
2. Minutes. Regular Meeting Minutes for October 15, 2024 (All Members Present).
3. Elected City Officials’ Report Regarding Travel, Training, and Meetings. Receive and file the Elected City Officials’ Report reflecting City Council business related expenses incurred by the City.
4. City Holiday Closure 2024. Approval of City Hall Closure and Essential Services for December 26-30, 2024.
5. Adoption of Ordinance No. 2024 -011. Approve adoption of Ordinance No. 2024 -011 (Second Reading) amending Chapter 2.16.010 of the Chino Municipal Code (Mayor and Council Members) setting the monthly compensation for the Mayor at $3,348.53 and each of the four (4) Council Members at $2,796.26
ORDINANCE NO. 2024-011 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, AMENDING SECTION 2.16.010 OF THE CHINO MUNICIPAL CODE
RELATING TO THE COMPENSATION FOR COUNCIL MEMBERS AND THE MAYOR OF THE
CITY OF CHINO IN ACCORDANCE WITH THE CALIFORNIA GOVERNMENT CODE (REPLACING ORDINANCE NO 2008-20)
6. Amendment No. 1 to Memorandum of Understanding with San Bernardino County - Inspection and Permitting to have County extend services to the East End Annexation Area and other projects pending annexation. Amendment No. 1 to Memorandum of Understanding with San Bernardino County - Inspection and Permitting to have County extend services to the East End Annexation Area and other projects pending annexation.
2 CHINO CITY COUNCIL
NOVEMBER 5, 2024 3
7. California Extended Water and Wastewater Arrearage Payment Program Grant Acceptance.
Accept and Approve the use of $241,324.30 of Grant Funds as outlined by the State of California under the California Extended Water and Wastewater Arrearage Payment Program to pay past due monthly bills for Water (drinking) and Wastewater Service.
8. Approval of the City’s Classification and Compensation Schedule as updated to reflect the FY 2024/25 Cost-of-Living Adjustment approved by City Council in October 2023. Adopt Resolution No. 2024-053 approving a Cost -of-Living Adjustment for job classifications represented by the Chino Police Officers Association (CPOA), Chino Police Management Association (CPMA), and Unrepresented Sworn Management.
9. Renewal of Live Entertainment Permit - Casa Diaz. Approval of a renewal of a Live Entertainment Permit for Casa Diaz located at 7041 Schaefer Avenue for a period of 12 months. This permit is subject to quarterly review of satisfactory compliance with terms, conditions, and restrictions of the permit.
10. 2024 Citizens’ Option for Public Safety (COPS) Grant Funds Additional Appropriation (G4249).
Accept additional funds of $137,125.06 received for the identified expenditure areas of the FY 2023-24 COPS Program Grant G4249 and appropriate an additional expenditure and revenue in the amount of $137,125.06 in the State COPS Fund 130.
11. 2025 Citizens’ Option for Public Safety (COPS) Grant Funds Appropriation (G4256). Accept the use of the grant funds for the identified expenditure areas of the 2025 COPS Program Grant G4256 and appropriate $142,976 to AB3229-State COPS Grant Fund 130 with a corresponding increase to revenues in the same fund.
12. Federal Asset Forfeiture - Purchase of a Side -by-Side Vehicle. Establish a Federal Grant Number G4257; appropriate $47,195.95 from unappropriated reserves of the Asset Forfeiture/Department of Justice Fund 120 for the purchase of a Side -by-Side vehicle; and increase the Asset Forfeiture revenue by $47,195.95.
13. Assumption and Partial Assignment of the Preserve Development Agreement between the City of Chino, a Municipal Corporation; Chino Development Corporation, a California Corporation; and TH The Preserve Chino LLC, a California Limited Liability Company. Approve an Assumption and Partial Assignment of the Preserve Development Agreement between the City of Chino, a municipal corporation; Chino Development Corporation, a California corporation; and TH The Preserve Chino LLC.
14. Acceptance of Right of Way Dedication - East Preserve Loop and Main Street (Chino Preserve Development Corporation). Accept the offer of right -of-way dedication for public street and utility purposes on East Preserve Loop from the southerly boundary of Tract 20446 to Main Street and Main Street from East Preserve Loop to Chino Corona Road.
15. Final Acceptance of Public Improvements for Parcel Map No. 19756 for the Altitude Business Center Located South of Kimball Avenue on the East and West Sides of Quality Way. Accept Public Improvements as Complete for Parcel Map No. 19756; approve an Amendment to the Subdivision Improvement Agreement to Extend the Warranty Period; and Approve a Public Improvement Agreement with Richland Ventures, Inc. for the Kimball Median. 3 CHINO CITY COUNCIL
NOVEMBER 5, 2024 4
PUBLIC HEARING
Prior to the vote of the City Council, any member of the audience will have the opportunity to address Council on any items listed under Public Hearings. Council requests, but it is not required, that you state your name and address prior to making any remarks.
16. Formation of Improvement Area 11 in Community Facilities District 2003 -3. Public Hearing regarding the Formation of Improvement Area 11 in Community Facilities District 2003-3.
Staff Report By: Nadyne Lowry, Acting Director of Finance RECOMMENDATION: 1) Conduct a Public Hearing regarding the formation of Improvement Area 11 in Community Facilities District 2003 -3; 2) accept tax consultant’s report; 3) adopt Resolution No. 2024-054 establishing Improvement Area 11 of CFD No. 2003 -3 authorizing the levy of special taxes and calling an election; 4) adopt Resolution No. 2024-055, determining the necessity to incur bonded indebtedness; 5) conduct a special election with the property owners; 6) adopt Resolution No. 2024 -056, declaring results of the special election and directing recording of the special tax lien; 7) approve the introduction of Ordinance No. 2024-012, levying a special tax, to be read by number and title and waive further reading of the ordinance; and 8) authorize the City Manager to execute all necessary documents on behalf of the City.
ORDINANCE NO. 2024-012 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
CHINO, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2003-3 OF THE CITY OF CHINO, ON BEHALF OF IMPROVEMENT AREA NO. 11 THEREIN, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN IMPROVEMENT AREA NO. 11 OF THE DISTRICT
17. Amendment of the 2021 -2029 Housing Element Update and Introduction of Ordinance No. 2024-003 (ZOA PL23 -0133). Approve Resolution No. 2024 -004 for the adoption of amendments to the City of Chino 2021 -2029 Housing Element required by the California Department of Housing and Community Development; and approve the introduction of Ordinance No. 2024-003.
Staff Report By: Mike Hitz, Principal Planner
RECOMMENDATION: 1) Approve Resolution No. 2024 -004 adopting an amendment to the City of Chino 2021 -2029 Housing Element, including any additional non -substantive revisions required by the California Department of Housing and Community Development (HCD); 2) approve the introduction of Ordinance No. 2024 -003, to be read by number and title only, and waive further reading of the Ordinance; and 3) authorize the City Manager to file all documents with HCD on behalf of the City.
ORDINANCE NO. 2024-003 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, AMENDING SECTIONS 20.04.030, 20.09.090, AND 20.21.340 OF THE
CHINO MUNICIPAL CODE REGARDING OVERLAY DISTRICTS FOR AFFORDABLE HOUSING
AND SENIOR HOUSING PROJECTS
NEW BUSINESS
18. Federal Asset Forfeiture Funds - Police Bloodhound K9 (Federal Grant G4255). Approve the appropriation of $23,794 from unappropriated reserves of the Asset Forfeiture/Department of Justice Fund 120 for the purchase of Police Bloodhound K9 and increase the Asset Forfeiture revenue by $23,794.
Staff Report By: Captain Ryan Croley
4 CHINO CITY COUNCIL
NOVEMBER 5, 2024 5
RECOMMENDATION: 1) Establish a Federal Grant Number G4255; 2) appropriate $23,794 from unappropriated reserves of the Asset Forfeiture/Department of Justice Fund 120 for the purchase of a Police Bloodhound Service Dog, including initial training and all necessary equipment for both the dog and handler (Police Bloodhound K9 Team); 3) increase the Asset Forfeiture revenue by $23,794; and 4) authorize the City Manager to execute all necessary documents on behalf of the City.
19. Approve Construction Contract Change Order No. 2 with C.P. Construction Co., Inc., Upland, CA for the Kimball Avenue Preserve Improvements Project (ST232). Appropriate $1,417,809 with a corresponding increase to the project budget for the Kimball Avenue Preserve Improvements Project (ST232) and approve Change Order No. 2 with C.P. Construction Co.
Inc., in the amount of $681,758.45.
Staff Report By: Michele Hindersinn, Senior Engineer
RECOMMENDATION: 1) Appropriate $717,809 from the Measure I Fund (322); 2) appropriate $700,000 from the SB -1 Road Maintenance Rehabilitation Fund (327); 3) reduce the funding source by $4,980,000 from the Preserve- Bridges, Signals and Thoroughfare DIF Fund 260; 4) reduce the project budget by a total of $3,562,191 for a revised project budget, in the amount of $4,494,049.94 for the Kimball Ave Preserve Improvement Project ST232; 5) approve Change Order No. 2 for $681,758.45 with C.P. Construction Co., Inc., Upland, CA (Contract No. 2024 -072) for Project (ST232) for Street Rehabilitation on Kimball Avenue from Rincon Meadows to Hellman Avenue for a revised total contract amount not to exceed $3,672,498.45; and 6) authorize the City Manager to execute all necessary documents on behalf of the City.
MAYOR AND COUNCIL REPORTS
This is the time and place for the Mayor and Council Members to report on prescheduled Council Committee Assignment Meetings that were held since the last Regular Council Meeting, and any other items of interest. Upon request by an individual Council Member, the City Council may choose to take action on any of the subject matters listed below.
Mayor Ulloa
Mayor Pro Tem Comstock
20. Community Support Fund - Mayor Pro Tem Comstock. Approve community support fund contribution to Chino High School Band Boosters– 77th Calvary.
Staff Report By: Mayor Pro Tem Comstock
RECOMMENDATION: Approve a community support fund contribution of $250 to Chino High School Band Boosters- 77th Calvary.
Council Member Burton
Council Member Flores
Council Member Lucio
21. Community Support Fund - Council Member Lucio. Approve community support fund contribution to the Soroptimist International of the Chino Valley.
Staff Report By: Council Member Lucio
RECOMMENDATION: Approve a community support fund contribution of $250 to the Soroptimist International of the Chino Valley Hoe Down. 5 CHINO CITY COUNCIL
NOVEMBER 5, 2024 6
City Manager's Report
City Attorney's Report
Police Chief's Report
Director's Report
Fire Chief's Report
ADJOURN
The next Regular Meeting of the City Council will be held on Tuesday, November 19, 2024 at 6:00 p.m. (Closed Session no earlier than 4:00 p.m. if necessary) in these Council Chambers.
I, Natalie Gonzaga, City Clerk of the City of Chino, hereby declare that on Thursday, October 31, 2024 this agenda was posted on the south window of Chino City Hall and this agenda together with all of the agenda reports and related documents were posted on the City’s website at www.cityofchino.org by myself or under my direction.
_______________________________________
Natalie Gonzaga, City Clerk.
6 MEMORANDUM
CITY OF CHINO
COMMUNITY SERVICES, PARKS & RECREATION DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: SILVIA AVALOS, DIRECTOR OF COMMUNITY SERVICES, PARKS &
RECREATION
SUBJECT
..titl e
Purple Heart City
..end
..body
7 8
MEMORANDUM
CITY OF CHINO
POLICE DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: KEVIN MENSEN, CHIEF OF POLICE
SUBJECT
..titl e
Law Enforcement Records and Support Personnel Day
..end
..body
9 10
MEMORANDUM
CITY OF CHINO
COMMUNITY SERVICES, PARKS & RECREATION DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: SILVIA AVALOS, DIRECTOR OF COMMUNITY SERVICES, PARKS &
RECREATION
SUBJECT
..titl e
Inclusion Community Celebration
..end
..body
11 MEMORANDUM
CITY OF CHINO
POLICE DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: KEVIN MENSEN, CHIEF OF POLICE
SUBJECT
..titl e
Team Chino Softball Team
..end
..body
12 MEMORANDUM
CITY OF CHINO
FINANCE DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: NADYNE LOWRY, ACTING DIRECTOR OF FINANCE
SUBJECT
..titl e
Warrants.
..end
RECOMMENDATION
Approve expenses as audited and within budget for warrants 772810 to 773094, and Electronic Fund Transfers 523135E to 523253E, totaling $8,109,931.24. ..body
FISCAL IMPACT
Sufficient funds have been included in the Fiscal Year 24-25 Operating Budget.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Financial Stability
Revenue:
Expenditure:
Transfer In: Transfer Out:
13 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: WARRANTS.
PAGE: 2
BACKGROUND
As prescribed by Government Code Sections 37202 and 37208, the following demand registers are herewith submitted for Council ratification:
NO. WARRANTS CHECK DATE FY AMOUNT
1. 772810 – 772888 10/3/24 24-25 $1,768,650.27
2. 772889 – 772985 10/10/24 24/25 $973,567.80
3. 772986 – 773094 10/17/24 24-25 $295,488.14
4. 523135E – 523172E 10/4/24 24-25 $2,871,881.75
5. 523173E – 523217E 10/11/24 24-25 $127,503.81
6. 523218E 10/18/24 24-25 $275.00
7. 523219E – 523253E 10/18/24 24-25 $2,072,564.47
TOTAL $8,109,931.24
E: Electronic Fund Transfers
ISSUES/ANALYSIS
See attached exhibit for detailed information on warrants exceeding $50,000.
Attachment
14 Council Meeting 11/5/24
CITY OF CHINO
A/P Warrant Register Over $50,000
Check
Number
Check Date Vendor Name Description Amount
772810 10/03/2024 ACT 1 CONSTRUCTION, INC. AYALA PARK PHASE 1B SOFTBALL FIELD $321,851.00 772825 CHINO PRESERVE DEVELOPMENT CORP ROAD CLOSURE DEPOSIT
REIMBURSEMENT
$60,000.00
772834 CT & T CONCRETE PAVING, INC. STREET REHAB CONSTRUCTION $422,523.53 772852 KB HOMES DEVELOPMENT IMPACT FEE REFUND $636,266.40 772863 MONTE VISTA WATER DISTRICT CONSTRUCTION FOR STATE STREET $56,990.00 523140 10/04/2024 CALGON CARBON CORPORATION CALGON TREATMENT $111,952.00 523141 CHINO BASIN DESALTER AUTHORITY WATER PURCHASES $1,611,155.50 523151 INLAND EMPIRE UTILITIES AGENCY SEWAGE TREATMENT SERVICE $1,037,112.54 772929 10/10/2024 HDL COREN & CONE PROPERTY TAX COLLECTIONS 5/7-6/30/24 $104,397.15 772946 METROCELL CONSTRUCTION, INC. KIMBALL MEDIAN IMPROVEMENTS $68,803.75 772970 SO CAL EDISON CO SERVICE PERIOD 08/05-09/30 $355,719.27 772972 STATE WATER RESOURCES CONTROL BOARD REFUND-UNUSED FUNDS $114,808.42 772997 10/17/2024 C.E. MECHANICAL, INC. PFD/CITYWIDE CHILLER & BOILER REPAIRS $51,479.04 773065 OUTDOOR CREATIONS INC. MONUMENT SIGN $61,499.04 523220 10/18/2024 ACT 1 CONSTRUCTION, INC. AYALA PARK PHASE 1B SOFTBALLBALL FIELDS
$554,095.07
523225 CHINO VALLEY INDEPENDENT FIRE DISTRICT FIRE PROTECTION SERVICES $1,395,000.00
16 TOTAL $6,963,752.71
15 MEMORANDUM
CITY OF CHINO
ADMINISTRATION DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: NATALIE GONZAGA, CITY CLERK
SUBJECT
..titl e
Minutes.
..end
..body
16 17 18 19 20 21 22 23 24 MEMORANDUM
CITY OF CHINO
ADMINISTRATION DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: NATALIE GONZAGA, CITY CLERK
SUBJECT
..titl e
Elected City Officials’ Report Regarding Travel, Training, and Meetings.
..end
RECOMMENDATION
Receive and file the Elected City Officials’ Report reflecting City Council business related expenses incurred by the City.
..body
FISCAL IMPACT
Sufficient funding is available in the adopted Fiscal Year 2024-25 Operating Budget.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Superior Customer Service
Responsible Long-Range Planning
Exemplary Leadership
Public Service Excellence through Internal and External Partnerships
Revenue:
Expenditure: 1002000-43320
Transfer In: Transfer Out:
25 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: ELECTED CITY OFFICIALS’ REPORT REGARDING TRAVEL, TRAINING, AND MEETINGS.
PAGE: 2
BACKGROUND
In accordance with Government Code Sections 53232.2 and 53232.3, implementing Assembly Bill (AB) 1234 on January 1, 2006, the City adopted Resolution No. 2005 -093 establishing a Business-Related Expense Policy. On December 6, 2016, the City approved Resolution No. 2016-075 adopting the latest revisions to this policy. In addition to requiring local agenci es to adopt a business-related expense policy, AB 1234 requires that Elected Officials provide a brief report on meetings attended at the expense of the local agency at the next regular meeting of the legislative body.
ISSUES/ANALYSIS
In response to AB 1234, a report regarding Elected City Officials’ Travel, Training, and Meetings (Exhibit A) was created and is placed on the City Council Agenda Consent Calendar, as needed. The documents that pertain to the items listed on Exhibit A are available for publi c inspection at the City Clerk’s office located in City Hall at 13220 Central Avenue, Chino, CA.
Attachment – Exhibit A
26 Event Date Meeting Purpose
and Subject Matter
Location City Official Attendees
October 16-18, 2024 League of California
Cities Annual
Conference
Long Beach, CA Mayor Pro Tem
Comstock
Council Member Burton
Council Member Lucio
27 MEMORANDUM
CITY OF CHINO
ADMINISTRATION DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: LINDA REICH, CITY MANAGER
SUBJECT
..titl e
City Holiday Closure 2024.
..end
RECOMMENDATION
Approval of the closure of City Hall and non-essential services for December 26-30, 2024. ..body
FISCAL IMPACT
No fiscal impact.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Fiscal Responsibility
Revenue: Click or tap here to enter text.
Expenditure:
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 28 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: CITY HOLIDAY CLOSURE 2024.
PAGE: 2
BACKGROUND
In July of 2023, City Council authorized a change to the designated holiday schedule to include Christmas Eve and New Year’s Eve and the closure of specified City facilities, with exception of the Police Department, to become effective Fiscal Year 2023 -24 as part of labor negotiation agreements. The change includes the closure of City Hall and non -essential services, between Christmas Eve and New Year’s Day.
Ordinance 2023-018 was adopted September 19, 2023, to update Section 2.52.020 (Holidays) of the Chino Municipal Code, to add “D. The City Council reserves the right to close non -safety public offices and buildings of the City of Chino between Christmas Eve and New Year’s Day in any given year. Such action may be taken by the City Council before the applicable period without the need to amend this section.”
City facilities were closed between the Christmas Eve and New Years Day holiday in 2023 without issue. It is recommended the City Council take action to approve the 2024 holiday closure between December 26-30, 2024.
ISSUES/ANALYSIS
Upon approval, with the exception of the essential services listed below, the City will be closed from Tuesday, December 24, 2024 through Wednesday, January 1, 2025, and reopen with normal operating hours on Thursday, January 2, 2025.
Holiday/City Hall and Non-Essential Services Closure Dates Tuesday, December 24, 2024 – Christmas Eve Holiday Closure Wednesday, December 25, 2024 – Christmas Day Holiday Closure Thursday, December 26 – Monday, December 30, 2024
Tuesday, December 31, 2024 – New Years’ Eve
Wednesday, January 1, 2025 – New Years’ Day
The following is a listing of essential City services that will continue to operate Thursday, December 26 through Monday, December 30, 2024.
Administration Department
The Administration Department will be closed December 24, 2024 – January 1, 2025.
Community Services, Parks & Recreation Department
The following facilities will be open to provide services as follows:
Teen Experience Center: Winter Camp from 7:00 a.m. – 6:00 p.m. Senior Center: Transportation, lunch, case management services, and access to the computer lab, fitness, and billiards rooms from 10:00 a.m. - 3:00 p.m. Chino Youth Museum: December 26 through December 28 from 10:00 a.m. - 4:00 p.m. Neighborhood Activity Center: Basketball gym open from 9:00 a.m. - 6:00 p.m. Ayala Park Operation Center: Field rentals and batting cages open from 4:00 p.m. - 9:00 p.m.
Development Services Department
29 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: CITY HOLIDAY CLOSURE 2024.
PAGE: 3
Planning, Building, Engineering, Code Enforcement and Housing Divisions will be closed. For emergency services, the Building Division can be reached at (909) 536 -8013 and the Code Enforcement Division can be reached at (909) 721 -2830. The Chino Police Department will be available for routine non -emergency code enforcement issu es during the closure and can be reached at (909) 628-1234.
Finance Department
The Finance Department will be closed with the exception of the Warehouse located at the Public Works Service Yard which will remain open during the morning hours to issue parts to Fleet staff.
Utility bill payments can be paid as follows:
1) Online at cityofchino.org;
2) Over the phone using our automated service; or
3) By using the City’s payment drop box located in the southwest parking lot of City Hall.
Human Resources/Risk Management Department
For urgent matters, please contact Terry Doyle at (909) 925-7722.
Police Department
The main lobby will be open during normal operating hours of 7:30 a.m. - 5:30 p.m. on Thursday, December 26 through Monday, December 30, 2024. The main lobby will be closed on December 24, 25, 31, 2024 and January 1, 2025.
All other standard Police operations will remain unchanged.
Public Works Department
The following services will be available:
For water service emergencies, residents may call the Public Works Services line at (909) 334 -3266. For after -hours emergencies, residents are directed to call Police Dispatch at (909) 628-1234.
Fleet Staff will be available for service to Police Patrol and Public Works vehicles as needed.
To report a traffic signal outage emergency, residents are directed to call Police Dispatch at (909) 628-1234.
o Note: Most City traffic signals are equipped with battery backup. o The City’s signal maintenance contractor will be performing annual signal maintenance to take advantage of lighter traffic during this period. Each traffic signal will be placed in “red flash” status for 5 -10 minutes to per form this maintenance.
Street Maintenance Operations may be reached at (909) 334 -3266. For a fter-hours emergencies, residents are directed to call Police Dispatch at (909) 628-1234. o Asphalt/Concrete Repair
o Sewer and Storm Drain
o Traffic Control
Grounds operations may be reached at (909) 334 -3266. For after-hours emergencies, residents are directed to call Police Dispatch at (909) 628-1234. 30 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: CITY HOLIDAY CLOSURE 2024.
PAGE: 4
o Graffiti Abatement
o Street Lights
o Parks and Street Trees
For Trash and Environmental Emergencies:
o For assistance with trash services, call Waste Management at (800) 423-9986. o To report environmental spills/hazards, call Police Dispatch at (909) 628-1234.
31 MEMORANDUM
CITY OF CHINO
ADMINISTRATION DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: LINDA REICH, CITY MANAGER
SUBJECT
..titl e
Adoption of Ordinance No. 2024-011.
..end
RECOMMENDATION
Approve the adoption of Ordinance No. 2024 -011, amending Chapter 2.16.010 of the Chino Municipal Code (Mayor and Council Members), setting the monthly compensation for the Mayor at $3,348.53 and each of the four (4) Council Members at $2,796.26. ..body
FISCAL IMPACT
Requires an appropriation of $65,427 from the unappropriated reserves of the General Fund for the remainder of fiscal year 2024/25. Ongoing, this adjustment will result in an annual salary increase of $94,507.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above will further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Responsible Long-Range Planning
Exemplary Leadership
Revenue: Click or tap here to enter text.
Expenditure: 1002000-41010
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 32 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: ADOPTION OF ORDINANCE NO. 2024-011.
PAGE: 2
BACKGROUND
Ordinance No. 2024 -011 was introduced on first reading by the City Council at its October 15, 2024 meeting. The Ordinance will amend Chapter 2.16.010 of the Chino Municipal Code (Mayor and Council Members), setting the monthly compensation for the Mayor at $3,348.53 and each of the four (4) Council Members at $2,796.26.
Once adopted on second reading, the Ordinance will go into effect thirty (30) days thereafter and the increase in compensation will commence December 30, 2024, as defined within the Ordinance.
ISSUES/ANALYSIS
Ordinance No. 2024-011:
Second reading of Ordinance, entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA, AMENDING SECTION 2.16.010 OF THE CHINO MUNICIPAL
CODE RELATING TO THE COMPENSATION FOR COUNCIL MEMBERS AND THE MAYOR
OF THE CITY OF CHINO IN ACCORDANCE WITH THE CALIFORNIA GOVERNMENT CODE (REPLACING ORDINANCE NO 2008-20)”
Attachment: Ordinance No. 2024-011
33 ORDINANCE NO. 2024-011
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO,
CALIFORNIA, AMENDING SECTION 2.16.010 OF THE CHINO
MUNICIPAL CODE RELATING TO THE COMPENSATION FOR
COUNCIL MEMBERS AND THE MAYOR OF THE CITY OF CHINO IN
ACCORDANCE WITH THE CALIFORNIA GOVERNMENT CODE
(REPLACING ORDINANCE NO 2008-20)
WHEREAS, Chapter 2.16.010 (Mayor and Council Members) of Chapter 2.16 (Officers’ Salaries) of the Chino Municipal Code (CMC) establishes the compensation for the Mayor and Council Members of the City of Chino pursuant to California Government Code Section 36516 and 36516.1; and
WHEREAS, Government Code Section 36516 provides for enactment of an ordinance and amendments thereto setting a salary for each Member of the City Council; and
WHEREAS, Government Code Section 36516.1 provides for enactment of an ordinance and amendments thereto setting additional compensation for an elective mayor o f the City Council; and
WHEREAS, Government Code Section 36516.5 provides that a change in compensation may be enacted by members of a council serving staggered terms whenever one or more members of the City Council becomes eligible for a salary increase by virtue of the Council Member beginning a new term of office; and
WHEREAS, the City Council last elected to increase mayor and council member salaries in 2008; and
WHEREAS, the City Council now desires to amend Chapter 2.16.010 of the Chino Municipal Code to amend the compensation for the Mayor and Council Members of the City of Chino.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. Section 2.16.010 of the Chino Municipal Code shall be amended to read as follows:
Section A. California Government Code Section 36516 provides for compensation of each member of the city council based upon the population of the city. The City of Chino has a population of 92,585 as of January 2024 according to the California Department of Finance State Demographic Report. California Government Code Section 36516.1 provides for additional compensation for an elected mayor. The City of Chino has an elected mayor.
Section B. Pursuant to California Government Code Section 36514.5, the mayor and each city council member shall be reimbursed for actual and necessary expenses incurred in the performance of official duties. The amount of reimbursement shall be determined each fiscal year by the amount adopted within the annual budget. 34 ORDINANCE NO. 2024-011
Section C. Pursuant to California Government Code Section 36516, each member of the city council (except the mayor) shall receive a salary of $2,796.26 per month commencing December 30, 2024 . Pursuant to California Government Code Sections 36516 and 36516 .1, the mayor shall receive a salary of $3,348.53 per month commencing December 30, 2024.
Section 2. EFFECTIVE DATE OF INCREASE. This Ordinance shall take effect 30 days after the second reading, with the effective date of the salary increase commencing December 30, 2024.
Section 3. The City Clerk shall certify to the passage and adoption of t his ordinance and shall cause the same to be published in the Chino Champion, a newspaper of general circulation in the City, in accordance with the provisions of the California Government Code.
Section 4. Severability If any court of competent jurisdiction holds any section, subsection, sentence, clause, phrase or portion of this ordinance invalid or unconstitutional, such determination shall not affect the validity of the remaining portions of this ordinance The City Council declares that it would have enacted this ordinance and each section, sentence, clause or phrase hereof irrespective of any determination of invalidity.
ADOPTED THIS 5TH DAY OF NOVEMBER 2024.
By:
EUNICE M. ULLOA, MAYOR
ATTEST:
By:
NATALIE GONZAGA, CITY CLERK
35 ORDINANCE NO. 2024-011
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) §
CITY OF CHINO )
I, Natalia Gonzaga, City Clerk of the City of Chino do hereby certify that the foregoing Ordinance of the City of Chino was duly adopted by said City Council at a regular meeting held on the 5th day of November 2024 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
By:
NATALIE GONZAGA, CITY CLERK
36 MEMORANDUM
CITY OF CHINO
DEVELOPMENT SERVICES DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
..titl e
Amendment No. 1 to Memorandum of Understanding with San Bernardino County - Inspection & Permitting to have County extend services to the East End Annexation Area and other projects pending annexation.
..end
RECOMMENDATION
Approve Amendment No.1 to Memorandum of Understanding between the City of Chino and San Bernardino County for plan check, inspection and ministerial permit issuance services and authorize the City Manager to execute all necessary documents on behalf of the City. ..body
FISCAL IMPACT
Approval of Amendment No. 1 to the Memorandum of Understanding is not expected to have a fiscal impact on the City as all charges by the County for services performed will be pass through costs borne by developers.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further s the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Positive City Image
Responsible Long-Range Planning
Public Service Excellence through Internal and External Partnerships
Revenue: Click or tap here to enter text.
Expenditure:
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 37 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING WITH SAN
BERNARDINO COUNTY - INSPECTION AND PERMITTING TO HAVE COUNTY EXTEND
SERVICES TO THE EAST END ANNEXATION AREA AND OTHER PROJECTS PENDING ANNEXATION.
PAGE: 2
BACKGROUND
On November 21, 2023, the City Council approved a Memorandum of Understanding (MOU) with San Bernardino County for Plan Check, Inspection and Ministerial Permit Issuance Services (Services). The County Board of Supervisors approved the MOU on January 9, 2024 (attached for reference) . The MOU followed the City Council’s approval of a Pre -Annexation and Development Agreement with Yorba Villas LLC, owners of property located at 4570 and 4664 Francis Avenue in the C ounty of San Bernardino (Property). The Agreement with Yorba Villas LLC contemplated that the City would enter into the MOU for the County to perform all inspections and issue ministerial permits consistent with entitlements it had issued for the Yorba Villas project. The Pre -Annexation and Development Agreement and MOU exempted permits related to the sewer service connections, which would be performed by the City.
Although the existing MOU contemplates that the County would provide the Services for projects beyond the Yorba Villas project, City staff now seeks an amendment (Amendment No. 1 attached) to the MOU specifically for projects within the recently -approved East End Annexation Area.
ISSUES/ANALYSIS
The Services in the existing MOU include plan check services, inspection services, issuance of ministerial development permits (including, but not limited to, grading permits, infrastructure permits, building permits and certificates of occupancy) and bond processing, oversight and exoneration in connecti on with the development of the Yorba Villas project. The MOU further allows the City, in its discretion, to request the County’s services for other projects within the City’s sphere of influence that may be pending annexation at commencement of the applica ble project.
Any developer utilizing the Services under the existing MOU is responsible for payment of any applicable County fees for services provided. The MOU requires the County to provide the City with itemized billing statements for any County -provided services in accordance with the County’s Schedule of Fees. The City is then to collect applicable County fees from those developers and tender them to the County within 60 calendar days.
The County is to provide the services under the existing MOU in a timeframe that complies with standard County practice and procedures. The existing MOU is effective for five years following approval by the County. The proposed Amendment No. 1 to MOU does not impact the term or any other provisions of the existing MOU beyond the extension of the services to the East End Annexation area.
ENVIRONMENTAL DETERMINATION
In accordance with the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines (California Code of Regulations, Title 14, §§ 15000 et seq.), and any applicable local CEQA policies and procedures, the City found that the Memorandum of Understanding is not a “project” for purposes of CEQA, as that term is defined by the CEQA Guidelines section 15378, because the Memorandum of Understandin g merely contemplates a government funding mechanism or other government fiscal activity, which does not involve any commitment to any specific project which may result in potentially significant physical impact on the environment, pursuant to Guidelines s ection 15378(b)(4), or alternatively, it constitutes an organizational or administrative activity that will not result in a direct or indirect physical change in the 38 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING WITH SAN
BERNARDINO COUNTY - INSPECTION AND PERMITTING TO HAVE COUNTY EXTEND
SERVICES TO THE EAST END ANNEXATION AREA AND OTHER PROJECTS PENDING ANNEXATION.
PAGE: 3
environment pursuant to Guidelines section 15378(b)(5). Any developer utilizing the servic es under the Memorandum of Understanding has or will be required to secure CEQA approval before qualifying for use of the services. Amendment No. 1 to the MOU does not implement any changes that would necessitate further evaluation under CEQA.
Attachments:
Amendment No. 1 to Memorandum of Understanding Between the City of Chino and San Bernardino County for Plan Check, Inspection and Ministerial Permit Issuance Services Original Memorandum of Understanding
39 01225.0005/920326.2 1
AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF CHINO AND SAN BERNARDINO COUNTY
FOR PLAN CHECK, INSPECTION AND MINISTERIAL PERMIT ISSUANCE
SERVICES
This Amendment No. 1 to Memorandum of Understanding (“Amendment”) is made and entered into on the date last signed below by and between the City of Chino (“City”) and San Bernardino County (“County”) related to plan check, inspection and ministerial permit issuance services. Hereinafter, the City and County may be referred to individually as a “Party” or collectively as the “Parties.”
I. RECITALS
WHEREAS, on January 9, 2024 , the County and City entered into that certain Memorandum of Understanding (“MOU”) for the provision of plan check, inspection , and ministerial permit issuance services by the County to City related to a Planned Development Permit and Vesting Tentative Tract Map No. 20394 for the development of a gated project at the property within the City’s sphere of influence, located at 4570 and 4664 Francis Avenue in the unincorporated area of San Bernardino County (“Francis Property”) comprising of 45 single-family homes, new private streets, a small private park, street improvements (along Francis and Yorba Avenue), on-site stormwater infrastructure and related amenities at the Francis Property (collectively, “Yorba Villas Project”);
WHEREAS, the M OU authorizes the County to provide post-final map, planned development permit and other entitlement plan check services, inspection services, issuance of ministerial development permits (including, but not limited to, grading permits, infrastructure permits, building permits and certificates of occupancy) and County bonding processing, oversight and exoneration (collectively “Services”) in connection with the development of the Yorba Villas Project , as well as the provision of the Services in connection with the development of other projects (“Other Project”) located within the area 40 01225.0005/920326.2 2
consisting of a 144.683-acres at the northern border of the City, generally centered on Ramona Avenue and Mustang Road (“Ramona Annexation Area”) that is part of the City’s annexation application to the San Bernardino Local Agency Formation Commission (“LAFCO”) submitted in accordance with the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code §§ 56000 -57550), which Ramona Annexation Area includes the Francis Property;
WHEREAS, on July 17, 2024, the LAFCO Board approved LAFCO 3268 for the detachment of County Service Area 70 and annexation of such area to the City encompassing approximately 57.6 acres, generally bounded by a combination of the San Bernardino Countyline, the San Antonio Creek Channel, and parcel lines on the west; Francis Avenue on the north; East End Avenue (portion of existing City of Chino boundary) on the east; and a combination of Philadelphia Street and parcel lines (existing City of Chino boundary) on the south, within the City of Chino’s sphere of influence (“East End Annexation Area”);
WHEREAS, to allow for consistency with the MOU, City desires to have County extend the Services to the East End Annexation Area as Other Projects that are subject to the MOU pursuant to this Amendment;
WHEREAS, County has personnel with sufficient training and expertise to extend the Services under the MOU to the East End Annexation Area as requested by City;
WHEREAS, County is prepared to provide such Services under the terms and conditions set forth in this Amendment; and
NOW THEREFORE, in consideration of the forgoing Recitals, which Recitals are incorporated herein by this reference, and mutual promises, covenants and condition s contained herein, the Parties mutually agree as follows:
41 01225.0005/920326.2 3
I. Section II, Subsection (A) of the MOU is amended in its entirety to read:
A. SCOPE OF SERVICES.
The City agrees to honor any unexpired (including validly extended) land use entitlement (examples include, but are not limited to, a Planned Development Permit, Minor Use Permit, Conditional Use Permit, Special Use Permit, Tentative Parcel Map and/or Tentative Tract Map) , and associated development plan, building plan, buildin g permit, infrastructure permit, grading permit and/or certificate of occupancy that was approved or conditionally approved by the County before LAFCO’s approval of the Annexation for the Ramona Annexation Area and East End Annexation Area (collectively “Pending Projects”) , including the Yorba Villas Project and Other Projects . The City requires professional services from the County as described in Section II.C for all post entitlement, plan and permit checks for the development of the Yorba Villas Project or Other Projects, as requested by the City in writing, in the Ramona Annexation A rea and East End Annexation Area . The scope of professional services rendered by County will be designed to ensure the Yorba Villas Project and Other Projects within the Ramona Annexation Area and East End Annexation Area are constructed in a manner consistent with the County approved discretionary entitlements and complies with th ose County Regulations applicable at the time such discretionary entitlements were approved by County.
II. Section II, Subsection (D) of the MOU is amended in its entirety to read:
D. PAYMENT FOR SERVICES
Following the Annexation for the Ramona Annexation Area and East End Annexation Area, County shall provide City with itemized billing statements for any County provided Services in accordance with the County Fees applicable at the time. 42 01225.0005/920326.2 4
City shall collect applicable County Fees from Applicants of Pending Projects for the cost of the services rendered by County and shown on the billing statements and tender same to County within sixty (60) calendar days.
Unless amended as set for th in this Amendment, a ll terms and conditions of the MOU shall remain unchanged and in full force and effect. Both City and County do covenant to each individual executing this Amendment on behalf of each party is a person duly authorized. This Amendment may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Amendment. The Parties shall be entitled to sign and transmit an electronic signature of this Amendment (whether by facsimile, PDF or other mail transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Amendment upon request.
[Signatures on following page]
43 01225.0005/920326.2 5
IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be executed.
CITY OF CHINO
_______________________________
Linda Reich, City Manager
Dated:_________________________
SAN BERNARDINO COUNTY
______________________________
Dawn Rowe, Chair, Board of Supervisors
Dated:________________________
ATTEST:
_________________________________
Natalie Gonzaga, City Clerk
SIGNED AND CERTIFIED THAT A COPY OF
THIS DOCUMENT HAS BEEN DELIVERED TO
THE CHAIRMAN OF THE BOARD
_______________________________________
Lynna Monell, Clerk of the Board of Supervisors
San Bernardino County
APPROVED AS TO FORM:
__________________________________
Fred Galante, City Attorney
APPROVED AS TO FORM:
Tom Bunton
County Counsel
____________________________
Jason M. Searles
Supervising Deputy County Counsel
44 45
46 47
48 49
50 51
52 53
54 55
56 MEMORANDUM
CITY OF CHINO
FINANCE DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: NADYNE LOWRY, ACTING DIRECTOR OF FINANCE
SUBJECT
..titl e
California Extended Water and Wastewater Arrearage Payment Program Grant Acceptance. ..end
RECOMMENDATION
1) Accept and approve the use of $241,324.30 of grant funds (G3241) as outlined by the State of California under the California Extended Water and Wastewater Arrearage Payment Program to pay past due monthly bills for water (drinking) and wastewater service; and 2) authorize the City Manager to execute all necessary documents on behalf of the City. ..body
FISCAL IMPACT
Appropriate revenue in the amount of $241,324.30 to the Water Fund 520. Acceptance of the grant proceeds will allow the City’s Water Utility to collect $234,295.44 in water (drinking) and wastewater usage charges on behalf of customers that might not otherwise be collected due to COVID-19 related impacts, plus administration charges of $7,028.86.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further s the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Financial Stability
Public Service Excellence through Internal and External Partnerships
Revenue: 5203100-59500-G3241
Expenditure:
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 57 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: CALIFORNIA EXTENDED WATER AND WASTEWATER ARREARAGE PAYMENT PROGRAM GRANT ACCEPTANCE.
PAGE: 2
BACKGROUND
The COVID-19 pandemic has made it challenging for our residents to pay their utility bills due to job loss and other hardships . Through federal funding allocated by the state legislature, the State Water Board has developed the California Extended Water and Wastewater Arrearage Payment Program to provide relief to water syst ems for unpaid bills related to the pandemic.
Funding will cover water debt from residential and commercial accounts accrued between June 16, 2021, and December 31, 2022. The program will cover all water (drinking) and wastewater arrearages for residential and commercial accounts and 3% in administrative costs.
In compliance with the Program guidelines and SB155, staff has offered Chino residents the opportunity to enroll in a payment plan to aid those in need and decrease their delinquent balance.
There are accounts with outstanding balances that have accrued water (drinking) and wastewater debt within the specified time frame of June 16, 2021, and December 31, 2022. Of these accounts, there is $178,268.61 requested for residential debt and $56,026.83 requested for commercial debt. Also requested is $7,028.86 for Administrative Costs. The total award is $241,324.30.
Any funds received by the City and not credited to customer accounts or used by the City as administrative costs to apply for funding with the California Extended Water and Wastewater Arrearage Payment Program, must be remitted back to the State Water Board within six months of receiving payment. Staff will notify customers in writing of the amount credited and indicate the credited amount is being provided through the California Extended Water and Wastewater Arrearage Payment Program through funding from the State Water Resources Control Board using federal America Recovery Plan Act (ARPA) funds, as is required by the provisions of this grant.
ISSUES/ANALYSIS
Water (drinking) and wastewater systems that participate in the Program must:
1) Waive customer late fees for any arrearages accrued during the COVID-19 pandemic bill relief period in their entirety;
2) Allocate payments as bill credits to customer accounts within 60 days of receiving payment;
3) Notify customers of the amount credited, and if splitting the credit between tax years, when the second credit will be applied;
4) Offer to enroll customers with remaining debt into a payment plan by direct notification to each customer;
5) Allow customers 30 days to enroll in a payment plan; T ype of A ccount
A ward A mount for
Water (Drinking )
A ward A mount for
Wastewater T otal A ward A mount
R esidential $90,080.18 $88,188.43 $178,268.61
C ommercial $50,807.18 $5,219.65 $56,026.83
S ubtotal $234,295.44
A dministrative C osts (3% ) $7,028.86
T otal A ward $241,324.30
58 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: CALIFORNIA EXTENDED WATER AND WASTEWATER ARREARAGE PAYMENT PROGRAM GRANT ACCEPTANCE.
PAGE: 3
6) Not discontinue water (drinking) and wastewater service until the customer defaults on the payment plan or misses the deadline to enroll in the payment plan; 7) Not discontinue water (drinking) and wastewater service prior to the date established in Health and Safety Code Section 116733.4 (e)(2)(A);
8) Comply with all terms and conditions of payment; and 9) Report on expenditures and customer credits.
Staff believes that the provisions of the grant are acceptable and within normal operating procedures. Therefore, acceptance and application of the grant proceeds is recommended.
59 MEMORANDUM
CITY OF CHINO
HUMAN RESOURCES DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: TERRY DOYLE, DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT
SUBJECT
..titl e
Approval of the City’s Classification and Compensation Schedule as updated to reflect the FY 2024/25 Cost-of-Living Adjustment approved by City Council in October 2023. ..end
RECOMMENDATION
1) Adopt Resolution No. 2024-053 approving Classification and Salary Schedule adjustments to implement a Cost -of-Living Adjustment for job classifications represented by the Chino Police Officers Association (CPOA) , Chino Police Management Association (CPMA) , and Unrepresented Sworn Management; and 2) approve and estimated appropriation in the amount of $990,000 in the Fiscal Impact section.
..body
FISCAL IMPACT
Requires an estimated appropriation of $990,000 to be appropriated with the 2025 Mid -Term Budget Update. The approximate appropriation to the General Fund 100 is $660,00 with the remaining balance of $330,000 to the Employees Service Fund 640.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Positive City Image
Superior Customer Service
Responsible Long-Range Planning
Revenue: Click or tap here to enter text.
Expenditure: VARIOUS ACCOUNTS
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 60 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: APPROVAL OF THE CITY’S CLASSIFICATION AND COMPENSATION SCHEDULE AS UPDATED TO REFLECT THE FY 2024/25 COST -OF-LIVING ADJUSTMENT APPROVED BY CITY COUNCIL IN OCTOBER 2023.
PAGE: 2
BACKGROUND
On October 3, 2023, following negotiations between the City and the sworn labor associations, the City Council adopted Resolution No. 2023 -061 approving a two -year extension of the Memorandum of Understanding (MOU) with the Chino Police Officers Association (CPOA) and Chino Police Management Association (CPMA). Resolution 2023 -061 provided for a Total Compensation Survey (Survey) to be conducted for FY 2023/24 and 2024/25 for all represented sworn positions.
The Survey was negotiated to provide any potential adjustments to represented sworn position salaries to assist the City in attracting candidates and retaining current employees. For the first year, the Survey began collecting data in August to capture all comparator agency benefits as of the beginning of the fiscal year, with any adjustments to become effective retroactively to the pay period which included July 1, 2023. As part of this Survey, the City was to remain #3 in the market with all represented sworn positions. The Survey conducted in FY 2023/24 resulted in a 4% base salary increase to all sworn positions.
ISSUES/ANALYSIS
In September 2 024, the City began the data collection process for the second year of the Survey. The results of the Survey showed that a 5.1% base salary increase is needed for the City to remain #3 in the market for FY 2024/25. To remain competitive and in line with th e City’s Personnel Rules, which provide pre -defined salary differentials between sworn ranks, all sworn positions, including Unrepresented Sworn Management, are set to receive the 5.1% base salary increase. This increase is essential for ensuring that the City can attract and retain qualified personnel, consistent with the priorities outlined in the Total Compensation Survey.
If approved, Resolution 2024 -053 will implement this 5.1% increase retroactively to the pay period which includes July 1, 2024, and update the City’s Classification and Compensation Schedule accordingly, as outlined in Resolution 2023-061.
Attachment: Resolution 2024-053
61 RESOLUTION NO. 2024-053
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,
CALIFORNIA, UPDATING AND AMENDING ITS CLASSIFICATION
AND COMPENSATION SCHEDULE IN ACCORDANCE WITH
CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5
WHEREAS, the City of Chino (“City”) contracts with the California Public Employees’ Retirement System (“CalPERS”) to provide retirement benefits for its employees; and WHEREAS, California Code of Regulations, Title 2, Section 570.5 requires governing bodies of local agencies contracting with CalPERS to approve and adopt a publicly available pay schedule in accordance with public meeting laws; and
WHEREAS, the pay schedule must identify each position by title, the individual pay rate amount or ranges for that position, and the time base upon which the amounts are based; and WHEREAS, the City Council of the City now desires to update its classification and compensation schedule to comply with CalPERS regulations by stating the current salaries and compensation rates for City positions, including any updates and/or revisions.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chino does hereby resolve as follows:
1. That the classification and compensation ranges listed below are hereby adopted in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5.
Position Step A Step B Step C Step D Step E
Corporal $8,700 $9,134 $9,592 $10,074 $10,576
Police Officer $8,091 $8,495 $8,920 $9,367 $9,833
Position Base Midpoint Maximum
Captain $14,945 $16,440 $17,933
Chief of Police $17,436 $20,487 $23,540
Deputy Chief of
Police $15,691 $17,261 $18,831
Lieutenant $12,826 $14,109 $15,393
Sergeant $10,687 $11,755 $12,823
62 Resolution 2024-053
2. The compensation ranges listed above shall be effective retroactively with the pay period including July 1, 2024.
APPROVED AND ADOPTED THIS 5th day of November 2024.
By:____________________________
EUNICE M. ULLOA, MAYOR
ATTEST:
_________________________________
NATALIE GONZAGA, CITY CLERK
63 Resolution 2024-053
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF CHINO )
I, Natalie Gonzaga, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Chino at a regular meeting held on the 5th Day of November 2024, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
NATALIE GONZAGA, CITY CLERK
64 MEMORANDUM
CITY OF CHINO
POLICE DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: KEVIN MENSEN, CHIEF OF POLICE
SUBJECT
..titl e
Renewal of Live Entertainment Permit - Casa Diaz.
..end
RECOMMENDATION
Approval of a renewal of a Live Entertainment Permit for Casa Diaz located at 7041 Schaefer Avenue, for a period of 12 months . This permit is subject to quarterly review of satisfactory compliance with terms, conditions, and restrictions of the permit. ..body
FISCAL IMPACT
No Fiscal Impact.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Positive City Image
Superior Customer Service
Revenue: Click or tap here to enter text.
Expenditure:
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 65 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: RENEWAL OF LIVE ENTERTAINMENT PERMIT - CASA DIAZ.
PAGE: 2
BACKGROUND
Casa Diaz located at 7041 Schaefer Avenue, Ste A-D., submitted an application for a renewal of a Live Entertainment Permit. The request is for a live band or DJ to play music on Tuesday through Thursday 6:00 PM to 10:00 PM, Saturday from 1:00 PM to 12:00 AM, and Sunday 12:00 PM to 9:00 PM. They are proposing a DJ and a 5/6-person live band.
ISSUES/ANALYSIS
Pursuant to the Chino Municipal Code, Title 5 Business Licenses and Regulations, Chapter
5.20, Live Entertainment, Sections 5.20.005 – 5.20.080, the Chino Police Department processed this a pplication, which included an administrative investigation of the applicant’s business. The investigation also included reviewing the application for completeness, verifying the identity of the owner and manager , and a review of calls for service at the l ocation. The investigation did not result in any immediate disqualifying information being located regarding the business owner.
Provided the attached conditions are agreed upon and adhered to, it is recommended that the Live Entertainment Permit be issued and granted for a period of 12 months to Casa Diaz.
Attachment – Terms, Conditions and Restrictions – Live Entertainment
66 Chino Police Department
Terms, Conditions and Restrictions – Live Entertainment
Applicant: Casa Diaz
Address: 7041 Schaefer Avenue Ste A-D, Chino, CA 91710
Scope of Live Entertainment: Live music on Tuesday through Thursday between the hours of 6:00 p.m. – 10:00 p.m., Saturday from 1:00 p.m. to 12:00 a.m., and Sunday 12:00 p.m. to 9:00 p.m.
1. No sound from the live entertainment to be audible beyond the premises under control of the permittee. Doors must be kept closed during time when music is being p layed if entertainment takes place inside the restaurant (does not apply to entertainment taking place on exterior patio) . Should complaints arise from any area directly affected by the entertainment, the permittee shall use sound judgment to address the problem to the City’s satisfaction or cease the live entertainment.
2. The permittee must comply with State and County regulations and up to -date San Bernardino County Department of Public Health guidelines.
3. The permittee is responsible for clean up of a ll rubbish, refuse, tra sh and materials left behind by its patrons of the establishment at the close of business.
4. The permittee is responsible to ensure no loitering of patrons (either intended, present or past) occurs outside the permittee’s premises.
5. The permittee must provide adequate lighting on the exterior of the premises, within the guidelines of applicable codes and standards, which illuminates the area used by patrons of the establishment and which affords law enforcement officers easy viewin g of the premises to the front and rear. The lights must remain on 30 minutes past closing.
6. This Live Entertainment permit will be reviewed quarterly from the time of issuance, monitoring all said conditions are being met.
7. The permittee must report a ny and all criminal activity to the Chino Police Department immediately.
8. The permittee shall have a copy of their Live Entertainment permit along with the corresponding conditions posted in plain view in an area accessible by City officials.
9. The permittee must maintain a current and active ABC license at all times.
10. The permittee shall follow and strictly enforce any and all regulations and conditions pertaining to their current Alcoholic Beverage Control license.
11. This permit shall allow live entertainment no more than Tuesday through Thursday between the hours of 6:00 p.m. – 10:00 p.m., Saturday from 1:00 p.m. to 12:00 a.m. and Sunday 12:00 p.m. to 9:00 p.m.
67 12. The permit shall be valid for a period of 12 months upon City Council approval, subject to quarterly review of satisfa ctory compliance with terms, conditions, and restrictions of the permit.
13. The permittee agrees to notify the Chino Police Department and seek approval of any “Special Events” or promotions 30 days prior to the event.
14. The permittee agrees not to exceed posted occupancy load.
15. Any modification to the live entertainment frequency shall require review and approval by City staff.
16. The permittee will specifically not allow music, narrative performances or any other form of entertainment t hat incites or glorifie s violence or vulgar disrespect towards ethnic group, gender, sexual orientation or religious affiliation. Furthermore, the permittee will not allow any form of entertainment that promotes or glorifies street gangs, gang violence, gang membership or violence towards law enforcement.
17. This facility is prohibited from having “Adult -oriented Performers” or allowing any guests to be “Nude” or in a “state of nudity” or “Semi -nude” or in a “state of semi -nudity.” This includes the display of undergarments and the display of breasts or genitals through wet clothing.
18. The facility will be subject to inspection by designated City officials at any time food service is being provided; regardless if the event/activity is open to the public.
19. All said conditions are applicable to dining and entertain ment open to both the public as well as private parties.
20. Any and all violations of the terms, conditions and restrictions may result in the Chief of Police revoking this permit.
Acknowledgement of Terms, Conditions and Restrictions
I have read and agree to the Terms, Conditions, and Restrictions put forth by the Chino Police Department concerning a Live Entertainment Permit. I understand that the Terms, Conditions, and Restrictions will be eff ective for the duration of the Live Entertainment Permit issued by City of Chino Business Licensing.
Signature Date
Printed Name
68 MEMORANDUM
CITY OF CHINO
POLICE DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: KEVIN MENSEN, CHIEF OF POLICE
SUBJECT
..titl e
2024 Citizens’ Option for Public Safety (COPS) Grant Funds Additional Appropriation (G4249). ..end
RECOMMENDATION
1) Accept and approve the additional funds of $137, 125.06 received for the identified expenditure areas of the FY 2023-24 Citizens' Option for Public Safety (COPS) Program Grant (G4249); 2) appropriate an additional expenditure and revenue in the amount of $137,125.06 in the State COPS Fund 130; a nd 3) authorize the City Manager to execute any necessary documents on behalf of the City.
..body
FISCAL IMPACT
Requires an additional appropriation of expenditures and revenues in the amount of $137,125.06 to the Fund 130 G4249. The requested appropriation of $137,125.06 is fully offset by Grant Revenue and no local matching funds are required.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Financial Stability
Public Service Excellence through Internal and External Partnerships
Revenue: 1304000-59500-G4249
Expenditure: 1304000-40010-G4249
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 69 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: 2024 CITIZENS’ OPTION FOR PUBLIC SAFETY (COPS) GRANT FUNDS ADDITIONAL APPROPRIATION (G4249).
PAGE: 2
BACKGROUND
The State Budget Act of 2010 has provided funds from the Local Safety and Protection Account (LSPA) in the State Transportation Fund to be available for the purposes of the Citizens' Option for Public Safety (COPS) Grant. The COPS Grant funds are collected in accordance with the proportionate share of the State's total population that resides in each county and city. Each city is guaranteed a minimum of $100,000 by Government Code Section 30061 and any additional amounts are contingent on vehicle license fe e collections. The City of Chino was already allocated and received the original amount of $144,810 for FY 2023-24 COPS Program Grant.
The City of Chino will receive an additional allocation of $ 137,125.06 above the original allocation due to additional LSPA and vehicle license fees collected. The Chino Police Department is requesting continued funding of this program. Acceptance of these additional funds will continue funding the non -sworn position of Police Facilities Coordinator and a portion of a Crime Analyst, along with the purchase of upgraded equipment and new technology.
A provision of the program allows monies to be directed toward funding costs related to salaries and expenses for non -sworn perso nnel dedicated to supporting front line police operations along with expenditures dedicated to upgrading equipment, purchasing new technology for sworn personnel, and upgrading police vehicles. Since 2001, the City Council has approved the continued funding of this grant program.
ISSUES/ANALYSIS
The Chino Police Department is requesting continued funding for this grant program.
Acceptance of these additional funds will continue funding the non -sworn position of Police Facilities Coordinator and portion of a Crime Analyst, along with the purchase of equipment and new technology. Purchases and award of contract s for equipment or new technology will be in accordance with CMC Section 3.32.070.
Attachment: COPS 2024 Growth Allocation
70 71
MEMORANDUM
CITY OF CHINO
POLICE DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: KEVIN MENSEN, CHIEF OF POLICE
SUBJECT
..titl e
2025 Citizens’ Option for Public Safety (COPS) Grant Funds Appropriation (G4256).
..end
RECOMMENDATION
1) Accept and approve the use of grant funds for the identified expenditure areas of the 202 5 Citizens’ Option for Public Safety (COPS) Program Grant G4256; 2) appropriate $142,976 to the AB3229-State COPS Grant Fund 130, with a corresponding increase to revenues in the same fund; and 3) authorize the City Manager to execute the necessary documents.
..body
FISCAL IMPACT
Requires an appropriation of expenditure and revenue in the amount $ 142,976 to the AB3229- State COPS Grant Fund 130. The requested appropriation is fully offset by Grant Revenue and no local matching funds are required.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Financial Stability
Public Service Excellence through Internal and External Partnerships
Revenue: 1304000-59500-G4256
Expenditure: 1304000-40010-G4256
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 72 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: 2025 CITIZENS’ OPTION FOR PUBLIC SAFETY (COPS) GRANT FUNDS APPROPRIATION (G4256).
PAGE: 2
BACKGROUND
The State Budget Act of 2010 provided funds from the Local Safety and Protection Account (LSPA) in the State Transportation Fund for the Citizens' Option for Public Safety (COPS) Grant. These COPS grant funds are allocated according to the proportionate share of the State’s total population residing in each county and city. Government Code Sect ion 30061 guarantees each city a minimum of $100,000, with any additional amount’s contingent on vehicle license fee collections. The City of Chino has been allocated $142,976 for FY 2024-25.
A provision of the program allows funds to be directed toward co sts related to salaries and expenses for non -sworn personnel dedicated to supporting front -line police operations, as well as expenditures for upgrading equipment, purchasing new technology for sworn personnel, and upgrading police vehicles. Since 2001, the City Council has consistently approved the continued funding of this grant program.
ISSUES/ANALYSIS
The Chino Police Department is requesting continued funding for this grant program.
Acceptance of these funds will sustain the non -sworn position of Police Facilities Coordinator and partially fund a Crime Analyst position, in addition to supporting the purchase of equipment and new technology. Purchases and award of contracts for equipment or new technology will be in accordance with CMC Section 3.32.070.
Attachment: COPS 2025 Allocation Notice
73 74
75 76
77 MEMORANDUM
CITY OF CHINO
POLICE DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: KEVIN MENSEN, CHIEF OF POLICE
SUBJECT
..titl e
Federal Asset Forfeiture – Purchase of a Side-by-Side Vehicle. ..end
RECOMMENDATION
1) Establish a Federal Grant Number G 4257; 2) appropriate $47,195.95 from unappropriated reserves of the Asset Forfeiture/Department of Justice Fund 120 for the purchase of a Side -by- Side vehicle; 3) increase the Asset Forfeiture revenue by $47,195.95; and 4) authorize the City Manager to execute all necessary documents on behalf of the City.
..body
FISCAL IMPACT
These purchases require an appropriation of expenditures and revenue in the amounts of $47,195.95 from the unappropriated reserves of the Federal Asset Forfeiture/Department of Justice Fund balance. There is sufficient fund balance for this appropriation.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Effective Technology
Public Service Excellence through Internal and External Partnerships Commitment to Our Community
Revenue: 12040002-51539-G4257
Expenditure: 12040002-40010-G4257
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 78 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: FEDERAL ASSET FORFEITURE - PURCHASE OF A SIDE-BY-SIDE VEHICLE.
PAGE: 2
BACKGROUND
For several years, the Chino Police Department has participated in federal investigations and prosecutions that have resulted in forfeitures. As a result, the City receives an equitable share of the net proceeds from these forfeitures. These funds are strictly designated for law enforcement purposes and must be used to supplement the Department's resources rather than replace them.
ISSUES/ANALYSIS
Side-by-side vehicles provide versatile capabilities that support the changing demands of law enforcement. The Chino Police Department currently uses a Honda Pioneer, purchased in 2018. However, this model is primarily intended for utility tasks, such as material transport in agricultural environment.
Advancements in side-by-side vehicle technology have led to models with significantly improved comfort and performance, including enclosed cabs with full -size doors, power windows, and HVAC systems for heating and air conditioning. These enhancements would allow officers to operate the vehicle in off -road and wash areas during adverse weather conditions while remaining clean and dry. The superior performance and comfort of these newer models would greatly increase the utility of the vehicle for the Department.
The proposed side -by-side vehicle would be deployed by the Chino Police Department's Quality-of-Life Team. This team conducts searches for homeless encampments and locates individuals in need in areas such as flood washes and freeway embankments ; areas inaccessible by patrol vehicles and impractical to enter on foot. The Quality -of-Life Team connects those in need with vital resources, such as long -term rehabilitation programs and housing. The use of this vehicle would enhance their ability to locate and safely engage with the unhoused population and provide these essential services.
Additionally, this vehicle would be utilized during community engagement events, including the 4th of July Fireworks Spectacular , Corn Feed Car Show, Run 4 Russ 5K, Youth Christmas Parade and Fair, and other large -scale gatherings like concerts in the park or events at Prado Regional Park. Its unique capabilities would make it a valuable asset in serving the community effectively.
Staff obtained three competitive bids for this vehicle, with the most cost -effective quote coming from Bert’s MegaMall. They offered a fully equipped Can -Am Defender Max Limited for $37,902.63. This model features four doors, two bench seats (accommodating four officers and their equipment), power windows, a flip -up front windshield for easy communication, a large dump bed for carrying equipment, and a front bumper winch for remote -area operations. An additional cost of $9,293.32 will be required to equip t he vehicle with emergency lighting from 10-8 Retrofit.
Staff requests that the City Council approve the use of asset forfeiture funds for the purchase of the Can-Am Defender Max Limited and associated equipment, totaling $47,195.95, inclusive of tax.
By investing in this vehicle, the Chino Police Department will be better equipped to locate and assist those in need to further engage with the community. 79 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: FEDERAL ASSET FORFEITURE - PURCHASE OF A SIDE-BY-SIDE VEHICLE.
PAGE: 3
Attachment: Quotes
80 81
82 83
MEMORANDUM
CITY OF CHINO
PUBLIC WORKS DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
..titl e
Assumption and Partial Assignment of the Preserve Development Agreement between the City of Chino, a Municipal Corporation; Chino Development Corporation, a California Corporation; and TH The Preserve Chino LLC, a California Limited Liability Company. ..end
RECOMMENDATION
1) Approve an Assumption and Partial Assignment of the Preserve Development Agreement between the City of Chino, a municipal corporation; Chino Development Corporation, a California corporation; and TH The Preserve Chino LLC, a California limited liability company; and 2) authorize the City Manager to execute all documents on behalf of the City. ..body
FISCAL IMPACT
There is no direct fiscal impact to the City of Chino.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Public Service Excellence through Internal and External Partnerships
Revenue: Click or tap here to enter text.
Expenditure:
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 84 CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: ASSUMPTION AND PARTIAL ASSIGNMENT OF THE PRESERVE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CHINO, A MUNICIPAL CORPORATION; CHINO DEVELOPMENT CORPORATION, A CALIFORNIA CORPORATION; AND TH THE PRESERVE CHINO LLC, A CALIFORNIA LIMITED LIABILITY COMPANY.
PAGE: 2
BACKGROUND
In 2004, the City of Chino (“City”) entered into a Development Agreement (“DA”) with three entities of the Lewis Management Corporation known as Chino Development Corporation, Chino Preserve Development Corporation, and Chino Holding Company, LLC (collecti vely referred to as “Lewis Companies”). The DA was entered into to help guide the orderly development of The Preserve, which was envisioned as a master -planned residential and commercial community. Additionally, the DA set the terms and conditions of devel opment on property owned by Lewis and established the rights and obligations of the developer and the City during development.
On June 6, 2023, the City Council approved an amended and restated DA to incorporate current terms and conditions to ensure resp onsible Long-Range Planning and Fiscal Stability through build-out of the Preserve Specific Plan area.
Recently, Chino Preserve Development Corporation sold Tract Map No. 20446 to TH The Preserve Chino LLC (also known as Trumark). Trumark will take over th e remaining work for this tract that was going to be completed by Chino Preserve Development Corporation. This transition required a new Subdivision Improvement Agreement and securities, which was approved by the City Council on October 1, 2024.
ISSUES/ANALYSIS
Per the terms of the DA, the Lewis Companies have the right to sell, transfer or assign property in whole or in part pending the transfer does not violate the provisions of the Subdivision Map Act - Government Code Section 66410 or Title 19 of the Chino Municipal Code.
Lewis Companies approached the City to request the approval of a Partial Assignment and Assumption Agreement with the purchaser, TH The Preserve Chino LLC for the acquisition of certain property as depicted in Exhibit A. Because t his property is covered by the existing DA, it is necessary for the City Council to provide its consent to the Partial Assignment and Assumption Agreement (“Assignment”) as outlined in Exhibit B.
Lewis Companies is selling the said property in accordance with the terms and conditions set forth in the Sale Agreement between TH The Preserve Chino LLC, and Chino Preserve Development Corporation (CPDC). The proposed Assignment requires the City to release CPDC from obligations under the Preserve DA as to the p roperty covered by the Assignment.
Staff is not aware of any outstanding issues that would prevent that release. Therefore, it is staff’s recommendation that the City Council approve the Assignment of the Preserve DA between the City of Chino, CPDC, and TH The Preserve Chino LLC, a California limited liability company.
Attachments: Exhibit A - Location Map Tract Map No. 20446 Exhibit B - Partial Assignment of the Preserve Development Agreement
85 "
A"
*This illustration is to show the general location of the partial assignment. The partial assignment may or may not include the entire tract boundary area.
86 - 1 -
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
Chino Preserve Development Corporation
c/o Lewis Management Corp.
Attn: Legal Department (WBF)
P. O. Box 670
Upland, CA 91785-0670
1156 North Mountain Avenue
Upland, CA 91786
SPACE ABOVE THIS LINE FOR RECORDER’S USE
PARTIAL ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT This Partial Assignment and Assumption of Development Agreement (“Agreement”) is dated for informational purposes only as of ____________________, 2024, and is entered into by and between CHINO PRESERVE DEVELOPMENT CORPORATION, a California corporation (“Assignor”), and TH THE PRESERVE CHINO LLC, a California limited liability company (“Assignee”).
RECITALS
A. Assignor, and its affiliates, Chino Holding Company, LLC, a Delaware limited liability company, and Chino Development Corporation, a California corporation, and the City of Chino, a California municipal corporation (" City"), are parties to that certain Amended and Restated Development Agreement entered into as of June 20, 2023 and recorded on July 26, 2023 as Document No. 2023-0182285 in the Official Records of the County Recorder of San Bernardino County, California (the " Official Records ") (as such agreement may be further amended from time to time, the "Development Agreement").
B. Assignee has or will purchase from Assignor that certain real property identified on Exhibit "A" attached hereto (the " Property") in accordance with the terms of that certain Purchase and Sale Agreement dated March 1, 2024, between Assignor and Trumark Properties, LLC, a California limited liability company (“Trumark Properties ”) (the "Purchase Agreement"), as assigned by Trumark Properties to Assignee pursuant to an Assignment and Assumption of Purchase and Sale Agreement dated October 8, 2024. This Agreement shall be effective as of the later of (i) the date that the grant deed conveying the Property to Assignee is recorded in the Official Records and (ii) the date that this Agreement is recorded in the Official Records (the "Effective Date").
NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, Assignor and Assignee agree as follows:
1. Assignment of Rights. Except for the "Excluded Rights and Obligations" listed in Schedule 1 which shall remain the rights and obligations of Assignor, Assignor hereby sells, transfers, assigns, conveys and delivers to Assignee all of Assignor's rights, title, interests, and obligations to, in and under the Development Agreement arising from and after the Effective Date solely with respect to the Property. This Agreement is only intended to assign those rights and obligations of Assignor under the Development Agreement which concern the Property and 87 - 2 -
does not assign any rights or obligations under the Development Agreement with regards to any of the other land described in the Development Agreement. Assignor makes no representation or warranties, express or implied, concerning the Development Agreement, except as provided herein.
2. Assumption of Responsibilities. Assignee does hereby expressly and unconditionally agree to assume all of Assignor's rights, title and interests to, in and under the Development Agreement as well as all responsibilities, liabilities and obligations under the Development Agreement, in each case solely to the extent arising from and after the Effective Date and solely to the extent relating to the Property, except for the Excluded Rights and Obligations. Assignee shall not be responsible for any default by Assignor with regards to the Property under the Development Agreement prior to the Effective Date.
3. Confirmatory Acts, Instruments. Each party hereby covenants to the other party that it will, at any time and from time to time, upon written request therefor, execute and deliver to such other party, its nominees, successors and/or assigns, any new or confirmatory instruments and do and perform any other acts which such party, its nominees, successors, and/or assigns may reasonably request in order to fully transfer to such other party all rights and obligations of Assignor intended to be transferred and assigned hereby.
4. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the heirs, successors, executors, administrators, and assigns of all the parties.
5. Effectivity and Amendments. No provision of this Agreement may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors-in-interest. This Agreement shall be effective upon the Effective Date.
6. Severability. Any provision of this Agreement which shall prove to be invalid, void, or illegal shall in no way affect, impair, or invalidate any other provision hereof and such other provisions shall remain in full force and effect.
7. Indemnity. Assignee shall indemnify, defend and hold harmless Assignor, its affiliated entities and persons, and their respective members, partners, officers, directors, shareholders and employees from any claims, demands, loss, liability, damages, costs or expenses (including attorneys' fees) made against or suffered by Assignor with regard to any breach by Assignee of the Development Agreement from and after the Effective Date.
8. Attorneys’ Fees. In the event of any action or proceeding brought by either party against the other under this Agreement, the prevailing party shall be entitled to recover all costs and expenses including the actual fees of its attorneys incurred for prosecution, defense, consultation, or advice in such action or proceeding.
9. Notice. The Notice Address described in the Development Agreement for the Assignee shall be:
88 - 3 -
If to Assignee: Attention: Mike McGinn
TH The Preserve Chino LLC
450 Newport Center Dr., Ste. 300
Newport Beach, CA 92660
Telephone: (949) 999-9804
Email: [email protected]
with a copy to: Attention: Josh Taylor, Esq.
Trumark
3001 Bishop Dr., Ste. 100
San Ramon, CA 94583
Telephone: (925) 999-3968
Email: [email protected]
10. Representation. Assignor represents and warrants to Assignee that the Development Agreement is in full force and effect, that Assignor is not in breach or default thereof, and that to the actual knowledge of Assignor, no event has occurred that with the passage of time or giving of notice would constitute a default or breach of the Development Agreement.
11. Counterparts. This Agreement may be executed in multiple counterparts which together shall constitute the Agreement.
[Signatures Appear on Following Pages]
89 - 4 -
“Assignor”
CHINO PRESERVE DEVELOPMENT
CORPORATION,
a California corporation
By:
Name: John M. Goodman
Title: Senior EVP/CEO
CHINO DEVELOPMENT CORPORATION,
a California corporation
By:
Name: John M. Goodman
Title: Senior EVP/CEO
CHINO HOLDING COMPANY, LLC,
a Delaware limited liability company
By: North Mountain Corporation,
a California corporation,
its Sole Manager
By:
Name: John M. Goodman
Title: Senior EVP/CEO
“Assignee”
TH THE PRESERVE CHINO LLC,
a California limited liability company
By:__________________________
Name: Richard P. Douglass
Title: Authorized Agent
90 - 5 -
Pursuant to Section 12.2 of the Development Agreement, City hereby approves of this Partial Assignment and Assumption of Development Agreement and acknowledges that Assignor, upon actual transfer of ownership, will have satisfied the conditions to the release of a transferring Owner set forth in Section 12.2 of the Development Agreement, and shall be released from its obligations under the Development Agreement (other than the Excluded Rights and Obligations) arising from and after the Effective Date and solely with respect to the Property.
READ AND APPROVED:
City of Chino,
a California municipal corporation
By:
Name:
Title:
APPROVED AS TO LEGAL FORM:
ATTEST:
[NOTE: THIS PAGE NOT TO BE RECORDED]
91 - 6 -
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF _____________
COUNTY OF ___________
On _________________, before me, ______________________, Notary Public, personally appeared ______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF _____________
COUNTY OF ___________
On _________________, before me, ______________________, Notary Public, personally appeared ______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
92 - 7 -
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF _____________
COUNTY OF ___________
On _________________, before me, ______________________, Notary Public, personally appeared ______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF _____________
COUNTY OF ___________
On _________________, before me, ______________________, Notary Public, personally appeared ______________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
93 Schedule 1
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SCHEDULE 1 OF PARTIAL ASSIGNMENT OF DEVELOPMENT AGREEMENT
EXCLUDED RIGHTS AND OBLIGATIONS
Excluded Obligations:
All obligations except those which concern any Buyer Improvements (as defined in the Purchase Agreement) or Assignee’s construction of Residences (as defined in the Purchase Agreement) on the Property.
Excluded Rights:
All rights except those set forth in Sections 2 and 4 of the Development Agreement which provide vested rights for the development of the Property. 94 Exhibit A
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EXHIBIT A TO PARTIAL ASSIGNMENT OF DEVELOPMENT AGREEMENT
LEGAL DESCRIPTION OF PROPERTY
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CHINO,
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
LOTS 1 THROUGH 55 AND LETTERED LOTS B AND C OF TRACT NO. 20446, AS SHOWN BY MAP ON FILE IN BOOK 368, PAGES 9 THROUGH 13 OF MAPS, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA.
2165-128767\1626366.4
95 MEMORANDUM
CITY OF CHINO
PUBLIC WORKS DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
..titl e
Acceptance of Right of Way Dedication – East Preserve Loop and Main Street (Chino Preserve Development Corporation).
..end
RECOMMENDATION
Accept the offer of right-of-way dedication for public street and utility purposes on East Preserve Loop from the southerly boundary of Tract 20446 to Main Street and Main Street from East Preserve Loop to Chino Corona Road.
..body
FISCAL IMPACT
There is no direct fiscal impact to the City of Chino.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Responsible Long-Range Planning
Public Service Excellence through Internal and External Partnerships
Revenue: Click or tap here to enter text.
Expenditure:
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TITLE: ACCEPTANCE OF RIGHT OF WAY DEDICATION - EAST PRESERVE LOOP AND MAIN STREET (CHINO PRESERVE DEVELOPMENT CORPORATION).
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BACKGROUND
On February 13, 2008, the Planning Commission approved an “A” level Master Site Approval (MSA No. 2006 -02) and Tentative Tract Map (TTM 16420) to subdivide 522 acres of land that established large parcels and the backbone street system for future development for the South of Pine master plan area. In February 2022, the Planning Commis sion approved modifications to both MSA 2006 -02 and TTM 16420, modifying the underlying conditions of approval and rectifying the inconsistencies between the MSA and TTM that resulted when The Preserve Specific Plan (PSP) was updated in 2021.
On September 19, 2022, the Planning Commission approved PL21-0045 (MSA) and PL21-0057 (TTM 20446) for Block 3 of the South of Pine master plan area to further master plan a portion of the South of Pine master plan and subdivide 21.9 acres of land into 114 lots for fut ure single- family residential development.
Chino Preserve Development Corporation (“Lewis”) plans to energize the Block 3 project site from an existing power pole on Chino Corona Road near Main Street. To move forward, Southern California Edison requires L ewis to install their dry utility conduit within City Right -of- Way. Since part of the conduit will be on Lewis’s private property, they will need to dedicate a portion of their land to the City for public street and utility use. Lewis has already executed the necessary dedication documents, which have been reviewed and approved by the Public Works Engineering staff (Exhibit B).
ISSUES/ANALYSIS
The area to be dedicated is part of the ultimate right -of-way for East Preserve Loop and Main Street. The right -of-way dedication area exceeds one acre, necessitating City Council acceptance through either resolution or minute action, in accordance with the San Bernardino County Recorder’s guidelines.
Attachments: Exhibit A – Area of Improvements
Exhibit B – Right of Way Dedication
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MEMORANDUM
CITY OF CHINO
PUBLIC WORKS DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
..titl e
Final Acceptance of Public Improvements for Parcel Map No. 19756 for the Altitude Business Center Located South of Kimball Avenue on the East and West Sides of Quality Way. ..end
RECOMMENDATION
1) Accept public improvements as complete for Parcel Map No. 19756; 2) authorize the release of the performance bond and initiate the warranty bond period; 3) approve an amendment to the Subdivision Improvement Agreement for Parcel Map No. 19756 to extend the warranty period by an additional two years, totaling three years, for the storm drain pump and pavement on Quality Way and Bickmore Avenue; 4) approve a Public Improvement Agreement with Richland Ventures, Inc. for the Kimball Avenue Median Landscape; and 5) authorize the City Manager to execute the necessary documents on behalf of the City.
..body
FISCAL IMPACT
There is no current fiscal impact to the City at this time by accepting the improvements for Parcel Map No. 19756, due the one year warranty bond period , and an additional two years being requested.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Positive City Image
Public Service Excellence through Internal and External Partnerships
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Expenditure:
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CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR PARCEL MAP NO. 19756
FOR THE ALTITUDE BUSINESS CENTER LOCATED SOUTH OF KIMBALL AVENUE ON THE EAST AND WEST SIDES OF QUALITY WAY.
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BACKGROUND
Parcel Map 19756, as presented by Richland Ventures, Inc. (“Richland”) initially consisted of a
1.2 million- square foot light industrial business center located on 72.77 acres of land within the Airport Related (AR) land -use designation of The Preserve Specific Plan. This project is generally located in The Preserve on the east and west sides of Quality Way (for merly Mayhew Avenue), between Kimball and Bickmore Avenues (Exhibit A). Tentative Parcel Map No. 19756, processed by Richland Communities, was conditionally approved by the City of Chino Planning Commission on October 7, 2019.
The Engineering Conditions of Approval (“COA”) for Parcel Map No. 19756 required the developer, Chino Preserve Development Corporation, to design and construct certain backbone public and improvements including, but not limited to, potable water lines; street improvements; sewer impro vements; and storm drain improvements in/on Kimball, Mayhew and Bickmore Avenues. The public improvements completed by the developer necessitated the execution of a Subdivision Improvement Agreement and posting securities that the City Council approved on May 19, 2020 (Exhibit B). It should be noted that the costs associated with the design and construction of the required public improvements are completely offset by the applicant. There is no direct fiscal impact on the City.
The public improvements have been completed to the satisfaction of the City Engineer, meeting all City standards and accessibility requirements. While the project encountered delays, these were not attributable to the review process; engineering plans were submitted and largely approved between March 2020 and June 2021. Construction commenced in October 2020, beginning with utility work at Bickmore Avenue and Quality Way. Improvements on Kimball Avenue included the installation of storm drains and water utility lines, alongside roadwa y reconstruction.
To facilitate construction, a prolonged road closure on Kimball Avenue was necessary due to inadequate space for safe two -way traffic movement. City staff approved this closure to enhance safety and expedite the improvements. Although the developer requested the closure in July 2021, it was postponed minimizing disruptions from other ongoing closures in The Preserve.
During the closure, conflicts emerged between the proposed utilities in their engineering plans and existing underground lines. The engineering plans did not accurately represent the existing utilities layouts and those of other agencies, such as Southern California Gas Company. This discrepancy required the developer to collaborate with City staff to find solutions and adjust the alignment of the new utilities, resulting in further delays. The closure, originally anticipated to last about 40 working days, extended through February 2022 due to these utility conflicts and wet weather.
Major construction activities took place from October 2020 to September 2023. Following this period, City staff provided the developer with a punch list of items that needed to be addressed prior to the City accepting the public improvements as complete.
A significant factor contributing to the exte nded timeline was the discovery of sinkholes at the southern end of the project site along Quality Way and Bickmore in January and March 2023.
While the exact cause remains unconfirmed, it is believed it was from inadequate soil compaction during the insta llation of underground utilities or shallow groundwater issues. The contractor implemented repairs in February and June 2023, following guidance from their 107
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR PARCEL MAP NO. 19756
FOR THE ALTITUDE BUSINESS CENTER LOCATED SOUTH OF KIMBALL AVENUE ON THE EAST AND WEST SIDES OF QUALITY WAY.
PAGE: 3
geotechnical consultant, which included the installation of geogrid material for soil reinforcement. Since these repairs, no additional sinkholes have been reported.
Another major public improvement was the construction of a segment of Storm Drain Line H, a master-planned City storm drain that collects water from Chino Airport and surrounding areas.
This storm drain features a pipe with a diameter of up to 96 inches, running along Quality Way before discharging south of Pine Avenue into the Prado Lake area. The developer was responsible for constructing most of the northern half of this storm drain, extending from Kimball Avenue to approximately 900 feet south of Bickmore Avenue.
Due to the underground location of the storm drain, the developer was required to install an interim pump facility to manage water removal after rain events. This facility will b e owned and maintained by the City until the remainder of Storm Drain Line H is constructed as part of either a future private land development project or a City capital improvement project.
During the 2023/2024 wet season, City inspection staff discovered that one of the storm drain pumps at the new facility was non -operational due to sediment buildup from upstream water quality basins along Kimball Avenue, which are maintained by the County for Chino Airport. This issue prompted the developer to order a r eplacement pump, contributing to further delays in project completion. Although these issues have been addressed to the City’s satisfaction, concerns regarding potential future problems persist.
ISSUES/ANALYSIS
There was an outstanding item identified by staff regarding the installation of landscaping in the new median constructed east of Euclid, in front of the AM/PM commercial property and the McBride RV storage facility. This median was inadvertently omitted from the developer’s landscape design, and t he oversight was not caught during the landscape plan review. The developer has submitted revised landscaping plans, which are nearing approval, and the contractor intends to install the landscaping after the City completes a new westbound left turn pocket for the AM/PM property.
Additionally, the parkway on the south side of Kimball Avenue, fronting the Chino Airport basin, remains without landscaping. While the developer was required to construct certain street improvements on the south side of Kimball Av enue, including a new multipurpose trail, landscaping was not mandated in this area as it is east of their project site and does not directly abut their property. However, staff anticipates that landscaping improvements will be included in a proposed proje ct by In -N-Out, which is currently undergoing administrative approval. This project involves expanding their parking area onto adjacent County land. Staff has communicated the City’s intention to condition the project to include landscaping improvements, and In-N-Out has agreed to comply.
All these items, including the previously mentioned sinkholes on Quality Way and Bickmore Avenue, as well as the storm drain pump, were presented to the Infrastructure Streets Committee on October 8, 2024, to gather feedback before scheduling the final acceptance of public improvements for City Council consideration. During the Infrastructure Streets Committee meeting, staff recommended the following actions:
1. Accept the public i mprovements as complete and authorize the release of the developer’s performance bond, triggering the beginning of a warranty period during which the developer is responsible for addressing any defects in the public improvements.
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CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR PARCEL MAP NO. 19756
FOR THE ALTITUDE BUSINESS CENTER LOCATED SOUTH OF KIMBALL AVENUE ON THE EAST AND WEST SIDES OF QUALITY WAY.
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2. Amend the public improveme nt agreement to extend the warranty period by an additional two years, resulting in a total warranty period of three years. This extension aims to specifically ensure the roadway pavement and storm drain pumps are free of defects (Exhibit C).
3. Approve a new Public Improvement Agreement and associated security with the developer, ensuring the completion of the pending landscape improvements within the Kimball Avenue median (Exhibit D).
The Infrastructure Streets Committee supported staff’s decision to proceed with the final acceptance of the public improvements for the Altitude Business Park.
The public improvements that are being accepted by the City of Chino include domestic and recycled water, street, sewer, and storm drain improvements as shown on Exhibit E. The public improvements completed have been constructed in compliance with the City’s standards/specifications, and accessibility requirements, and to the satisfaction of the Public Works Inspector and City Engineer. All public improvements that were part of the COA for these tracts were fully funded by the developer.
Additionally, some of the public improvements are master-planned facilities detailed in the City’s Development Impact Fee and Nexus Calculation Report. These facilities are eligible for credit or reimbursement under the City's Municipal Code Chapter 3.45 and in accordance with the construction credit and reimbursement agreement approved by the City Council on May 19, 2020 (Exhibit F). Following the review and approval of the final "as -built" plans, specifications, and supporting documentation by staff, a reconciliation of the actual costs will be presented to the City Council at a subsequent meeting.
Security for a one -year warranty period has been submitted to the City. The warranty bond will be in effect for one year from the date of final acceptance. The developer will be notified of any required repairs or replacements within this one -year warranty period. If no repairs or replacements are necessary, the City will process a bond reduct ion for the extended warranty items, covering the remaining two -year period. The bond will remain in effect and will not be released prior to November 5, 2027.
Also, upon completion and final acceptance, the public improvements shall become the sole exclusive property of the City to operate and maintain.
The following maintenance obligations will commence following acceptance of the public improvements on Kimball Avenue, Bickmore Avenue and Quality Way, please refer to the infrastructure exhibits attachments.
Domestic Water: By the City
Recycled Water: By the City
Public Sewer: By the City
Storm Drain: By the City
Public Street Sweeping: By the City
Public Streetlights: By the Owner/HOA
Public Landscape: By the Owner/HOA
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CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR PARCEL MAP NO. 19756
FOR THE ALTITUDE BUSINESS CENTER LOCATED SOUTH OF KIMBALL AVENUE ON THE EAST AND WEST SIDES OF QUALITY WAY.
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Attachments: Exhibit A - Location Map - Parcel Map No. 19756 Exhibit B - Subdivision Improvement Agreement
Exhibit C - Amendment Subdivision Improvement Agreement (Extended Warranty)
Exhibit D - Public Improvement Agreement (Kimball Median) Exhibit E - Infrastructure Atlas
Exhibit F - DIF Construction Credit & Reimbursement Agreement
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EXHIBIT “A”
Parcel Map 19756
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01225.0006/475436.1
Contract No.: 2021056 A1
Approved:
FIRST AMENDMENT
TO
SUBDIVISION IMPROVEMENT AGREEMENT
PARCEL MAP NO. 19756
THIS FIRST AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENT (“Amendment No. 1”) is made and entered into thi s 5th day of November 2024 (“Effective Date”), by and between the CITY OF CHINO, a municipal corporation , organized and existing in the County of San Bernardino (“CITY”), and RICHLAND VENTURES, INC. , a California corporation (“DEVELOPER”). CITY and DEVELOPER are hereinafter referred to individually as “Party” and hereinafter referred to collectively as the “Parties.”
RECITALS
WHEREAS, the Parties entered into a Subdivision Improvement Agreement dated May 19, 2020 (the "Agreement") for Parcel Map No. 19756, as presented by DEVELOPER. This Agreement pertains to a 1.2 million -square-foot light industrial business center located on 72.77 acres within the Airport Related land -use designation of The Preserve Specific Plan area, generally situated in The Preserve on the east and west sides of Quality Way, between Kimball and Bickmore Avenues (the "Project"); and
WHEREAS, as part of the conditions of approval, DEVELOPER is required to design and construct public improvements, including but not limited to storm drain, street, water, and sewer improvements on Kimball and Bickmore Avenues and Quality Way; and
WHEREAS, the Parties wish to amend the Agreement to extend the warranty period for certain public improvements due to unforeseen issues that have arisen during the Project; and
WHEREAS, the warranty period for improvements on Quality Way and Bickmore Avenue, due to sinkholes located on these streets, will be extended to three years commencing from the final acceptance of the public improvements; and
WHEREAS, the warranty period for the storm drain pump located on Quality Way is hereby extended by an additional three years, in the event the pump requires replacement, starting from the final acceptance of the public improvements; and
WHEREAS, the existing warranty bond currently in effect for the Project shall remain unchanged until the one -year anniversary of the Project's final acceptance date . At that time, the CITY will process a bond reduction for the extended warranty items for the remaining two-year period.
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TERMS
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the Parties agree to amend the Agreement as follows:
1. CONTRACT CHANGES.
(a) Section 4.1(b) of the Agreement is hereby amended and replaced in its entirety with:
i. Warranty Period for Street Improvements: The warranty period for the public improvements on Quality Way and Bickmore Avenue, specifically addressing issues related to sinkholes located on these streets, shall be extended to three years, commencing from the final acceptance of the public improvements. ii. Warranty Period for Storm Drain Pump: The warranty period for the storm drain pump located on Quality Way is hereby extended by an additional three years, applicable in the event that the pump requires replacement, starting from the final acceptance of the public improvements.
iii. Security Instrument: The Subdivider shall provide a Security Instrument equal to 10% of the estimated construction cost set forth in Section 1.1, to be submitted prior to the City Council’s acceptance of the Works of Improvement and the recordation of a Notice of Completion. The Security Instrument shall be in the amount of $1,188,900.
iv. Warranty Bond Terms : The warranty bond will be in effect for one year from the date of final acceptance. The DEVELOPER will be notified of any required repairs or replacements within this one -year warranty period. If no repairs or replacements are necessary, the CITY will process a bond reduction for the extended warranty items, covering the remaining two -year period. The bond will remain in effect and will not be released prior to November 5, 2027.
2. WARRANTY RE ABSENCE OF DEFAULTS. DEVELOPER represents and warrants to CITY that, as of the Effective Date of this Amendment No. 1, CITY is not in default of any material term of the Agreement, and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement by the Successor Agency.
3. CONTINUING EFFECT OF AGREEMENT. Except as amended by this Amendment No. 1, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by this Amendment to the Agreement.
4. COUNTERPARTS. This Amendment No. 1 may be executed in multiple identical counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.
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5. AUTHORITY. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, CITY has caused this Amendment No. 1 to be executed in its behalf by its City Manager and duly attested by its City Clerk, and DEVELOPER has executed this Amendment No. 1, as of this day and year first above written.
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Fred Galante, City Attorney Hye Jin lee, P.E.
Director of Public Works
RICHLAND VENTURES, INC:
Dated: By:
(Signature)
Name:
(Please Print or Type Name)
CITY OF CHINO
Dated:
Dr. Linda Reich, City Manager
ATTEST:
Natalie Gonzaga, City Clerk
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Contract No.:
Approval:
01225.0006/367559.3 Updated 10-2020
PUBLIC IMPROVEMENT AGREEMENT
by and between
CITY OF CHINO
and
RICHLAND VENTURES, INC
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Designees for the Service of Written Notice:
CITY: DEVELOPER:
Jesus Plasencia
Assistant City Engineer
13220 Central Avenue
Chino, CA 91710
(909) 334-3417
[email protected]
RICHLAND VENTURES, INC.
Attn: Craig Cristina, Senior Vice President
3161 Michelson Drive, Ste. 425
Irvine, CA 92612
(949) 439-0525
[email protected]
CITY PROJECT INSPECTOR
Isaac Ortega
Permit & Inspection Supervisor
13220 Central Avenue
Chino, CA 91710
(909) 334-3501
[email protected]
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1 PUBLIC IMPROVEMENT AGREEMENT
KIMBALL AVENUE MEDIAN LANDSCAPE
THIS PUBLIC IMPROVEMENT AGREEMENT (this “Agreement”) is entered into this 5th day of November, 2024, by and between the CITY OF CHINO, a municipal corporation, organized and existing in the County of San Bernardino, under and by virtue of the laws of the State of California, ( “CITY”), and RICHLAND VENTURES, INC., a California corporation (“DEVELOPER”)
RECITALS
A. The developer has agreed to design and install the landscaping on the Kimball Avenue Median as shown in Exhibit A (the “Project”).
B. The City desires to assure that said improvements proposed for the Project will be constructed in a good workmanlike manner and in accordance with all applicable laws, statues, ordinances, resolutions and regulations now in force and effect in the City of Chino and the State of California, all of which are incorporated herein.
C. The Developer acknowledges familiarity with the various requirements for public improvements contained in the Chino Municipal Code and agrees to comply therewith.
COVENANTS
Based upon the foregoing Recitals which are incorporated herein by reference , Developer agrees to timely perform all its obligations as set forth herein.
1. Construction Obligations.
1.1. Works of Improvement. Developer agrees, at its sole cost and expense, to design and install improvements more fully described as Exhibit “B” attached hereto (the “Works of Improvement”), as the same may be supplemented and revised from time to time as set forth in this Agreement (said plans and specifications, together with all related documents, the “Plans”). The estimated construction cost for the Works of Improvement is $47,150.00.
1.2. Intent of Plans. The intent of the Plans referenced in Section 1.1 is to prescribe a complete work of improvement which Developer shall perform or cause to be performed in a manner acceptable to the City Engineer, (or designee), and in full compliance with all codes and the terms of this Agreement. Developer shall complete a functional or operable improvement or facility, even though the Plans may not specifically call out all items of work required for Developer’s contractor to complete its tasks, incidental appurtenances, materials, and the like. If any omissions are made or information necessary to carry out the full intent and meaning of the Plans, Developer or its contractor shall immediately notify its design engineer who will seek approval of the City Engineer for furnishing of detailed instructions. In the event of any doubt or question arising regarding the true meaning of any of the Plans, reference shall be made to the City Engineer whose decision thereon shall be final. 201
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2 Developer recognizes that the Plans consist of general drawings. All authorized alterations affecting the requirements and information given on the Plans shall be in writing and approved by the City Engineer. The Plans shall be supplemented by such working or shop drawings as are necessary to adequately control the work. Without the City Engineer ’s prior written approval, no change shall be made by Developer or its contractor to any plan, specification, or working or shop drawing after it has been stamped as approved.
1.3. Performance of Work . Developer shall furnish or cause to be furnished all materials, labor, tools, equipment, utilities, transportation, and incidentals required to perform Developer’s obligations under this Agreement.
1.4. Changes in the Work . The City Engineer, without invalidating this Agreement and without notification to any of the sureties or financial institutions referenced in Paragraph 4, may order extra work or may make changes by altering or deleting any portion of the Works of Improvement as specified herein or as deemed necessary or desirable by the City Engineer as determined necessary to accomplish the purposes of this Agreement and to protect the public health, safety, or welfare. The City Engineer shall notify Developer or its contractor in writing (by Correction Notice) at the time a determination has been made to require changes in the work. No field changes performed or proposed by Developer, or its contractor shall be binding on City unless approved in writing by the City Engineer. The City and Developer may mutually agree upon changes to the Works of Improvement , subject to the security requirements in Section 4.
1.5. Defective Work . Developer shall cause its contractor to repair, reconstruct, replace, or otherwise make acceptable any work found by the City Engineer to be defective.
1.6. No Warranty by City . The Plans for the Works of Improvement have been prepared by or on behalf of Developer or its consultants or contractors, and City makes no representation or warranty, express or implied, to Developer or to any other person regarding the adequacy of the Plans or related documents.
1.7. Authority of the City Engineer . In addition to the authority granted to the City Engineer elsewhere in this Agreement, the City Engineer shall have the authority to decide all questions which may arise as to the quality and acceptability of materials furnished and work performed, and all questions as to the satisfactory and acceptable fulfillment of the terms of this Agreement by Developer and its contractor.
1.8. Documents Available at the Site . Developer shall cause its contractor to keep a copy of all approved Plans at the job site and shall give access thereto to the City ’s inspectors and engineers at all times.
1.9. Inspection. Developer shall have an authorized representative on the job site at all times during which work is being done who has full authority to act for Developer, or its design engineer, and Developer’s contractor(s) regarding the Works of Improvement.
Developer shall cause its contractor to furnish the City with every reasonable facility for ascertaining whether or not the Works of Improvement as performed are in accordance with the requirements and intent of this Agreement, including the Plans. If the City inspector requests it, the Developer’s contractor, at any time before acceptance of the Works of 202
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3 Improvement, shall remove or uncover such portions of the finished work as may be directed which have not previously been inspected. After examination, the Developer’s contractor shall restore said portions of the work to the standards required hereunder. Inspection or supervision by the City Engineer (or designee) shall not be considered as direct control of the individual workmen on the job site. City’s inspectors shall have the authority to stop any and all work not in accordance with the requirements contained or referenced in this Agreement.
The inspection of the work by City shall not relieve Developer or its contractor of any obligations to fulfill this Agreement as herein provided, and unsuitable materials or work may be rejected notwithstanding that such materials or work may have been previously overlooked or accepted.
1.10. Compliance with Law; Applicable Standards for Improvements. In addition to the express provisions of this Agreement and the Plans, Developer shall cause construction of the Works of Improvement to be completed in accordance with all other applicable federal, state, and local laws, ordinances, rules and regulations. In addition, without limiting the foregoing, the Developer shall, at its expense, obtain and comply with the conditions of all necessary permits and licenses for the construction of the Works of Improvement. The Developer shall also give all necessary notices and pay all fees and taxes as required by law.
Developer shall construct the improvements in accordance with the City standards in effect at the time of the adoption of this Agreement. City reserves the right to protect the public safety or welfare or comply with applicable Federal or State law or City zoning ordinances.
1.11. Suspension of Work. The City Engineer shall have authority to order suspension of the work for failure of the Developer’s contractor to comply with law pursuant to Section
1.12. In case of suspension of work for any cause what soever, Developer and its contractor shall be responsible for all materials and shall store them properly if necessary and shall provide suitable interim drainage and/or dust control measures, and erect temporary structures where necessary.
1.12. Erosion and Dust Control and Environmental Mitigation . All grading, landscaping, and construction activities shall be performed in a manner to control erosion and prevent flooding problems. The City Engineer shall have the authority to require erosion plans to prescribe reasonable controls on the method, manner, and time of grading, landscaping, and construction activities to prevent nuisances to surrounding properties. Plans shall include without limitation temporary drainage and erosion control requirements, dust control procedures, restrictions on truck and other construction traffic routes, noise abatement procedures, storage of materials and equipment, removal of garbage, trash, and refuse, securing the job site to prevent injury, and similar matters.
1.13. Final Acceptance of Works of Improvement . After Developer’s contractor has completed all of the Works of Improvement, Developer shall then request a final inspection of the work. If items are found by the City’s inspectors to be incomplete or not in compliance with this Agreement or any of the requirements contained or referenced herein, City will inform the Developer or its contractor of such items. After the Developer’s contractor has completed these items, the procedure shall then be the same as specified above for the Developer’s 203
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4 contractor’s initial request for final inspection. If items are found by City ’s inspector s to be incomplete or not in compliance after two (2) “final” inspections, the City may require the Developer or its contractor, as a condition to performing further field inspections, to submit in writing a detailed statement of the work performed subsequent to the date of the previous inspection which was found to be incomplete or not in compliance at that time. Developer shall be responsible for payment to City Engineer of re -inspection fees in the amount necessary to cover the City’s costs for additional final inspections, as determined by the City Engineer.
No inspection or acceptance pertaining to specific parts of the Works of Improvement shall be construed as final acceptance of any part until the overall final acceptance by the City Engineer is made. The City Engineer shall make a certification of completion and acceptance on the Works of Improvement by recordation of a Notice of Acceptance on behalf of the City.
Final acceptance shall not constitute a waiver by the City Engineer of defective work subsequently discovered.
The date on which the Works of Improvement will be considered as complete shall be the date of the Notice of Acceptance.
1.14. Vesting of Ownership. Upon recordation of the Notice of Acceptance, ownership of the Works of Improvement shall vest in the City.
1.15. Developer’s Obligation to Warn Public During Construction. Until recordat ion of the Notice of Acceptance , Developer shall give good and adequate warning to the public of any dangerous condition of the Works of Improvements and shall take reasonable actions to protect the public from such dangerous condition. Until re cordation of the Notice of Acceptance, Developer shall provide forty-eight ( 48) hours’ advance written notice to all neighboring property owners and tenants affected by Developer’s operations or construction of the hours, dates and duration of any planned construction activities.
1.16. Injury to Public Improvements, Public Property or Public Utility. Until recordation of the Notice of Acceptance of the Works of Improvement , Developer assumes responsibility for the care and maintenance of, and any damage to, the Works of Improvements. Developer shall replace or repair all Works of Improvements, public property, public utility facilities, and surveying or subdivision monuments and benchmarks which are destroyed or damaged for any reason, regardless whether resulting from the acts of the Developer, prior to the recordation of the Notice of Acceptance. Developer shall bear the entire cost of such replacement or repairs regardless of what entity owns the underlying property. Any repair or replacement shall be to the satisfaction, and subject to the approval, of the City Engineer.
Neither the City, nor any officer or employee thereof, shall be liable or responsible for any accident, loss or damage, regardless of cause, occurring to the work or Works of Improvements prior to recordation of the Notice of Acceptance of the work or improvements.
2. Time for Performance.
2.1. Commencement and Completion Dates . Subject to Section s 2.2 and 2.3 below, Developer shall (i) commence with construction and installation of the Works of Improvement thirty (30) days following City ’s approval of the Plans ( “Commencement Date ”); and (ii) 204
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5 complete or cause to be completed all of the Works of Improvement within two (2) years after the Commencement Date. In the event good cause exists as determined by the City Engineer, the time for commencement of construction or completion of the Works of Improvement hereunder may be extended by up to three (3) additional one-year periods. Extensions shall be executed in writing by the City Engineer. The City Engineer in his or her sole discretion determines whether or not the Developer has established good cause for an extension. As a condition of such extension, the City Engineer may require Developer to furnish new security guaranteeing performance of this Agreement, as extended, in an increased amount to compensate for any increase in construction costs as determined by the City Engineer. If Developer requests and is granted an extension of time for completion of the improvements, City may apply the standards in effect at the time of the extension.
2.2. Phasing Requirements. Notwithstanding the provisions of Section 2.1, the City reserves the right to control and regulate the phasing of completion of specific Works of Improvement as required to comply with applicable City ordinances, regulations, and rules relating to the timely provision of public services and facilities. In addition to whatever other remedies the City may have for Developer’s failure to satisfy such phasing requirements, as the same now exist or may be amended from time to time, Developer acknowledges City ’s right to withhold the issuance of further building permits on the Property until such phasing requirements are satisfied. Prior to issuance of building permits, Developer shall provide satisfactory evidence that all applicable requirements that are a condition to issuance of building permits have been satisfied. Such requirements may include the payment of fees, construction of improvements, or both. Final inspections or issuance of Certificates of Occupancy may be withheld from the Developer by the City, if, upon a determination by the City Engineer, completion of specific Works of Improvements or other requirements associated with the development of the Property have not been completed to the City Engineer ’s satisfaction.
2.3. Force Majeure. Notwithstanding the provisions of Section 2.1, Developer’s time for commencement and completion of the Works of Improvement shall be extended for the period of any enforced delay caused due to circumstances beyond the control and without the fault of Developer, including to the extent applicable adverse weather conditions, flood, earthquakes, strikes, lockouts, pandemics, acts or failures to act of a public agency (including City), required changes to the scope of work required by City, and similar causes; provided, however, that the period of any enforced delay hereunder shall not include any period longer than five (5) days prior to City ’s receipt of a written notice from Developer or its contractor detailing the grounds for Developer’s claim to a right to extend its time for performance hereunder. The City Engineer shall evaluate all claims to Force Majeure and make a reasonable determination regarding the length of any extension of time for commencement and/or completion of the Works of Improvement and the City Engineer’s decision shall be final.
2.4. Continuous Work . After commencement of construction of the Works of Improvement (or separate portion thereof), Developer shall cause such work to be diligently pursued to completion and shall not abandon the work for a consecutive period or more than thirty (30) days, events of Force Majeure excepted.
3. Labor.
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6 3.1. Labor Standards. This Agreement is subject to, and Developer agrees to comply with, all of the applicable provisions of the Labor Code including, but not limited to, the wage and hour, prevailing wage, worker compensation, and various other labor requirements in Division 2, Part 7, Chapter 1, including section 1720 to 1740, 1770 to 1780, 1810 to 1815, 1860 to 1861, which provisions are specifically incorporated herein by reference as set forth herein in their entirety. Developer shall expressly require compliance with the provisions of this Section in all agreements with contractors and subcontractors for the performance of the Works of Improvement.
3.2. Nondiscrimination. In accordance with the California Fair Employment and Housing Act ( “FEHA”), California Government Code Section 12940 et seq., Developer agrees that Developer, its agents, employees, contractors, and subcontractor performing any of the Works of Improvement shall not discriminate, in any way, against any person on the basis of race, ethnicity, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status . Developer shall expressly require compliance with the provisions of this Section in all agreements with contractors and subcontractors for the performance of this Agreement.
3.3. Licensed Contractors. Developer shall cause all of the Works of Improvement to be constructed by contractors and subcontractors with valid California Contractors ’ licenses for the type of work being performed. All of Developer’s contractors and subcontractors shall obtain a valid City of Chino business license prior to performing any work pursuant to this Agreement. Developer shall provide the City Engineer with a list of all of its contractors and subcontractors prior to initiating any work, and all valid Contractor ’s licenses and business licenses issued thereto as a condition of constructing the Works of Improvements.
3.4. Worker’s Compensation . Developer shall cause every contractor and subcontractor performing any of the Works of Improvement to carry Workers ’ Compensation Insurance as required by the Labor Code of the State of California and shall cause each such contractor and subcontractor to submit to City a Certificate of Insurance verifying such coverage prior to such contractor or subcontractor entering onto the job site.
4. Security.
4.1. Required Security.
(a) At the time Developer executes this Agreement, Developer shall furnish to City the following bonds, letters of credit, instruments of credit (assignment of deposit account) or other security acceptable to City in its sole and absolute discretion and satisfying the requirements of the applicable provisions of this Section 4 below (hereinafter “Security Instruments”):
(i) A Security Instrument securing Developer’s faithful performance of all of the Works of Improvement ( “Faithful Performance Security Instrument”), in the amount of $47,150.00 equal to 100% of the estimated construction cost referenced in Section 1.1.
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7 (ii) A Security Instrument guaranteeing the payment to contractors, subcontractors, and other persons furnishing labor, materials, and/or equipment ( “Labor and Materials Security Instrument ”) with respect to the Works of Improvement in an amount equal to $23,575.00 equal to 50% of the estimated construction cost referenced in Section 1.1.
This Agreement shall not be effective for any purpose until such Security Instruments are supplied to and approved by City in accordance herewith. (b) Required Security Instrument for Maintenance and Warranty . Prior to the City Council ’s acceptance of the Works of Improvement and recordation of a Notice of Completion, Developer shall deliver a Security Instrument warranting the work accepted for a period of one (1) year following said acceptance (“Maintenance and Warranty Security Instrument ”), in the amount of $4,715.00 equal to 1 0% of the estimated construction cost set forth in Section 1.1 or a suitable amount determined by the City Engineer.
4.2. Form of Security Instruments . All Security Instruments shall be in the amounts required under Section 4.1 (a) or 4.1(b), as applicable, shall meet the following minimum requirements and otherwise shall be in a form provided by City or otherwise approved by the City Attorney:
(a) Bonds. For Security Instruments provided in the form of bonds, any such bond must be issued and executed by an insurance company or bank authorized to transact surety business in the State of California. Any insurance company acting as surety shall have a minimum rating of A -IX, as rated by the current edition of Best ’s Key Rating Guide published by A.M. Best ’s Company, Oldwick, New Jersey, 08858. Any bank acting as surety shall have a minimum rating of AA, as rated by Moody’s or Standard & Poor’s.
(b) Letters of Credit. For Security Instruments which are letters of credit, any letter of credit shall be an original separate unconditional, irrevocable, negotiable and transferable commercial letter of credit issued by a financial institution with offices in the State of California acceptable to City. Any such letter of credit shall specifically permit City to draw on same by unilateral certification of the City Engineer of the City that Developer is in default under its payment or performance obligations hereunder or in the event Developer fails to deliver a replacement letter of credit not less than thirty (30) days prior to the date of expiration of any such letter of credit and shall further be subject to the provisions of Section 4.4.
(c) Instrument of Credit . For Security Instruments which are Instruments of Credit, any Instrument of Credit shall be an assignment of deposit account assigning as security to City all of Developer’s interest in funds on deposit in one or more bank accounts with financial institutions acceptable to City. (d) General Requirements for all Security Instruments.
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8 (i) Payments under any Security Instruments shall be required to be made (and, with respect to bonds, litigation shall be required to be instituted and maintained) in the City of Chino, State of California (and the Security Instrument shall so provide).
(ii) Each Security Instrument shall have a minimum term of one (1) year after the deadline for Developer’s completing the Works of Improvement, in accordance with Section 2.1 (other than Instruments of Credit, which shall have no defined term or expiration date).
(iii) Each Security Instrument shall provide that changes may be made in the Works of Improvement pursuant to the terms of this Agreement without notice to any issuer or surety and without affecting the obligations under such Security Instrument. (iv) If the Developer seeks to replace any security with another security, the replacement shall: (1) comply with all the requirements for security in this Agreement; (2) be provided by the Developer to the City Engineer; and (3) upon its written acceptance by the City Engineer, be deemed a part of this Agreement. Upon the City Engineer’s acceptance of a replacement security, the former security shall be released by the City.
4.3. Developer’s Liability. While no action of Developer shall be required in order for City to realize on its security under any Security Instrument, Developer agrees to cooperate with City to facilitate City ’s realization under any Security Instrument, and to take no action to prevent City from such realization of any Security Instrument. Notwithstanding the giving of any Security Instrument or the subsequent expiration of any Security Instrument or any failure by any surety or financial institution to perform its obligations with respect thereto, Developer shall be personally liable for performance under this Agreement and for payment of the cost of the labor and materials for the improvements required to be constructed or installed hereby and shall, within ten (10) days after written demand therefor, deliver to City such substitute security as City shall require satisfying the requirements in this Section 4.
4.4. Letters of Credit.
(a) In the event a letter of credit is given pursuant to Section 4.2(b), City shall be entitled to draw on any such letter of credit if a replacement letter of credit (expiring in not less than one (1) year, unless City agrees to a lesser term in City’s sole and absolute discretion) is not delivered not less than thirty (30) days prior to the expiration of the original letter of credit, such substitute letter of credit being in the same amount and having the terms and conditions as the initial letter of credit delivered hereunder, issued by a financial institution acceptable to City as of the date of delivery of the replacement letter of credit. (b) In the event of draw by the City on a letter of credit, the City may elect, in its sole and absolute discretion, to apply any such funds drawn to the obligations 208
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9 secured by such letter of credit or to hold such funds in an account under the control of the City, with no interest accruing thereon for the benefit of the Developer. If the City elects to hold the funds in an account pursuant to the foregoing, City may thereafter at any time elect instead to apply such funds as provided in the foregoing. Developer agrees and hereby grants City a security interest in such account to the extent required for City to realize on its interests therein and agrees to execute and deliver to City any other documents requested by City in order to evidence the creation and perfection of City ’s security interest in such account.
4.5. Release of Security Instruments . The City shall release all Security Instruments consistent with Government Code Sections 66499.7 and 66499.8 , Section 19.09.010 of the Chino Municipal Code, and as follows:
(a) City shall release the Faithful Performance Security Instrument and Labor and Materials Security Instrument when all of the following have occurred:
(i) Developer has made written request for release and provided evidence of satisfaction of all other requirements in this Section 4.5; (ii) the Works of Improvement have been accepted;
(iii) Developer has delivered the Maintenance and Warranty Security Instrument; and
(iv) after passage of the time within which lien claims are required to be made pursuant to Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code of the State of California. If lien claims have been timely filed, City shall hold the Labor and Materials Security Instrument until such claims have been resolved, Developer has provided a statutory bond, or otherwise as required by applicable law.
(b) City shall release the Maintenance and Warranty Security Instrument upon Developer’s written request upon the expiration of the warranty period, and settlement of any claims filed during the warranty period. (c) The City may retain from any security released, an amount sufficient to cover costs and reasonable expenses and fees, including reasonable attorney ’s fees.
5. Cost of Construction and Provision of Inspection Service.
5.1. Developer Responsible for All Costs of Construction . Developer shall be responsible for payment of all costs incurred for construction and installation of the Works of Improvement. In the event Developer is entitled to reimbursement from City for any of the Works of Improvement, such reimbursement shall be subject to a separate Reimbursement 209
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10 Agreement to be entered into between Developer and City prior to construction of the Works of Improvement.
5.2. Payment to City for Cost of Related Inspection and Engineering Services .
Developer shall compensate City for all of City ’s costs reasonably incurred in having its authorized representative make the usual and customary inspections of the Works of Improvement. In addition, Developer shall compensate City for all design, plan check, evaluating any proposed or agreed-upon changes in the work. The procedures for deposit and payment of such fees shall be as established by the City. In no event shall Developer be entitled to additional inspections or a final inspection and acceptance of any of the Works of Improvement until all City fees and charges have been fully paid, including without limitation, charges for applicable penalties and additional required inspections.
5.3. Payment of Development Impact Fees . Developer shall pay Development Impact Fees pursuant to and in accordance with Chino Municipal Code Chapter 3.40 and Chapter
3.45, as applicable.
6. Acceptance of Offers of Dedication . The City Council shall pass as appropriate resolution or resolutions accepting all offers of dedication shown on the approvals for the Project, with acceptance to become effective upon completion and acceptance by City of the Works of Improvement.
7. Warranty of Work . Developer shall guarantee all Works of Improvement against defective materials and workmanship for a period of one (1) year from the date of final acceptance. If any of the Works of Improvement should fail or prove defective within said one (1) year period due to any reason other than improper maintenance, or if any settlement of fill or backfill occurs, or should any portion of the Works of Improvement fail to fulfill any requirements of the Plans, Developer, within fifteen (15) days after written notice of such defects, or within such shorter time as may reasonably be determined by the City in the event of emergency, shall commence to repair or replace the same together with any other work which may be damaged or displaced in so doing. Should Developer fail to remedy defective material and/or workmanship or make replacements or repairs within the period of time set forth above, City may make such repairs and replacements and the actual cost of the required labor and materials shall be chargeable to and payable by Developer. The warranty provided herein shall not be in lieu of, but shall be in addition to, any warranties or other obligations otherwise imposed by law.
8. Default.
8.1. Default by Developer. Default by Developer shall include, but not be limited to:
(a) Developer’s failure to timely commence construction of Works of Improvement under this Agreement;
(b) Developer’s failure to timely complete construction of the Works of Improvement;
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11 (c) Developer’s failure to perform substantial construction work for a period for 20 consecutive calendar days after commencement of the work; (d) Developer’s insolvency, appointment of a receiver, or the filing of any petition in bankruptcy, either voluntary or involuntary, which Developer fails to discharge within 30 days;
(e) The commencement of a foreclosure action against the Property or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or (f) Developer’s failure to perform any other obligation under this Agreement.
8.2. Remedies. The City reserves all remedies available to it at law or in equity for a default or breach of Developer’s obligations under this Agreement. The City shall have the right, subject to this Section, to draw upon or use the appropriate security to mitigate the City ’s damages in the event of default by Developer. The City’s right to draw upon or use the security is in addition to any other remedy available to City. The parties acknowledge that the estimated costs and security amounts may not reflect the actual cost of construction of the improvements and, therefore, City ’s damages for Developer’s default shall be measured by the cost of completing the required improvements. The City may use the sums provided by the securities for the completion of the Works of Improvement in accordance with the plans. In the event the Developer fails to cure any default under this Agreement within 20 days after the City mails a notice of such default to the Developer and the Developer’s surety, Developer authorizes the City to perform the obligation for which Developer is in default and agrees to pay the entire cost of such performance by the City. The City may take over the work and complete the Works of Improvement, by contract or by any other method City deems appropriate, at the expense of the Developer. In such event, City, without liability for doing so, may complete the Works of Improvement using any of Developer’s materials, appliances, plans and other property that are at the work site and that are necessary to complete the Works of Improvement.
8.3. Remedies Not Exclusive. In any case where this Agreement provides a specific remedy to City for a default by Developer hereunder, the Developer agrees that the choice of remedy or remedies for Developer’s breach shall be in the discretion of the City. Additionally, any remedy specifically provided in this Agreement shall be in addition to, and not exclusive of, City’s right to pursue any other administrative, legal, or equitable remedy to which it may by entitled.
8.4. Attorney’s Fees and Costs . In the event that Developer fails to perform any obligation under this Agreement, Developer agrees to pay all costs and expenses incurred by City in securing performance of such obligations, including costs of suit and reasonable attorney’s fees. In the event of any dispute arising out of Developer’s performance of its obligations under this Agreement or under any of the Security Instruments referenced herein, the prevailing party in such action, in addition to any other relief which may be granted, shall be entitled to recover its reasonable attorney ’s fees and costs. Such attorney’s fees and cost shall include fees and costs on any appeal, and in addition a party entitled to attorney ’s fees and costs shall be entitled to all other reasonable costs incurred in investigating such action, 211
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12 taking depositions and discovery, retaining expert witnesses, and all other necessary and related costs with respect to the litigation. All such fees and costs shall be deemed to have accrued on commencement of the action and shall be enforceable whether or not the action is prosecuted to judgment.
8.5. Waiver. No waiver by the City of any breach or default by the Developer shall be considered valid unless in writing, and no such waiver by the City shall be deemed a waiver of any subsequent breach or default by the Developer.
9. Indemnity/Hold Harmless . City or any officer, employee or agent thereof shall not be liable for any injury to persons or property occasioned by reason of the acts or omissions of Developer, its agents, employees, contractors and subcontractors in the performance of this Agreement. Developer further agrees to protect, defend, indemnify and hold harmless City, its officials, boards and commissions, and members thereof, agents, and employees from any and all claims, demands, causes of action, liability or loss of any sort, because of, or arising out of, acts or omissions of Developer, its agents, employees, contractors and subcontractors in the performance of this Agreement, except for such claims, demands, causes of action, liability or loss arising out of the sole active negligence of the City, its officials, boards, commissions, the members thereof, agents and employees, including all claims, demands, causes of action, liability or loss because of or arising out of, in whole or in part, the design or construction of the improvements. This indemnification and agreement to hold harmless shall extend to injuries to persons and damages or taking of property resulting from the design or construction of said Project, and the public improvements as provided herein, and in addition, to adjacent property owners as a consequence of the diversion of waters from the design and construction of public drainage systems, streets and other improvements. Recordation of the Notice of Acceptance by the City of the Works of Improvements shall not constitute an assumption by the City of any responsibility for any damage or taking covered by this Section.
City shall not be responsible for the design or construction of the property to be dedicated or the improvements pursuant to the approved improvement p lans or map, regardless of any negligent action or inaction taken by the City in approving the plans or map, unless the particular improvement design was specifically required by City over written objection by Developer submitted to the City Engineer before approval of the particular improvement design, which objection indicated that the particular improvement design was dangerous or defective and suggested an alternative safe and feasible design.
After recordation of the Notice of Acceptance , the Developer shall remain obligated to eliminate any latent defect in design or dangerous condition caused by the design or construction defect for a period of one (1) year ; however, Developer shall not be responsible for routine maintenance. It is the intent of this section that Developer shall be responsible for all liability for design and construction of the improvements installed or work done pursuant to this Agreement and that City shall not be liable for any negligence, nonfeasance, misfeasance or malfeasance in approving or reviewing any work or construction. The improvement security shall not be required to cover the provisions of this Paragraph.
Developer shall reimburse the City for all costs and expenses, including but not limited to fees and charges of architects, engineers, attorneys, and other professionals, and court costs, incurred by City in enforcing this Section.
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13 10. Developer’s Indemnity of Project Approval . Developer shall defend, indemnify, and hold harmless the City and its agents, officers, and employees from any claim, action, or proceeding against the City or its agents, officers, or employees to attack, set aside, void, or annul, an approval of the City, advisory agency, appeal board, or legislative body concerning the Project. The City shall promptly notify the Developer of any claim, action, or proceeding and cooperate fully in the defense of any such claim, action, or proceeding. In the event City fails to promptly notify the Developer of any claim, action, or proceeding, or if the City fails to cooperate in the defense, the Developer shall not thereafter be responsible to defend, indemnify, or hold harmless the City. Nothing in this Section prohibits the City from participating in the defense of any claim, action, or proceeding if City bears its own attorney ’s fees and costs and defends the action in good faith. Developer shall not be required to pay or perform any settlement unless the settlement is approved by the Developer.
11. Insurance Requirements. Developer, at Developer’s sole cost and expense and for the full term of this Agreement and any extensions thereto, shall obtain and maintain all of the following minimum insurance requirements in a fo rm approved by the City’s authorized designee for Risk Management prior to commencing any work:
(a) Commercial General Liability policy with a minimum $1 million combined single limit for bodily injury and property damage providing all of the following minimum coverage without deductibles:
(i) Premises operations; including X, C, and U coverage; (ii) Owners’ and contractors’ protection;
(iii) Blanket contractual;
(iv) Completed operations; and
(v) Products.
(b) Commercial Business Auto policy with a minimum $1 million combined single limit for bodily injury and property damage, providing all of the following minimum coverage without deductibles:
(i) Coverage shall apply to any and all leased, owned, hired, or non - owned vehicles used in pursuit of any of the activities associated with this Agreement; and
(ii) Any and all mobile equipment including cranes which are not covered under the above Commercial Business Auto policy shall have said coverage provided under the Commercial General Liability policy.
(c) Workers Compensation and Employers ’ Liability policy in accordance with the laws of the State of California and providing coverage for any and all employees of the Developer:
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14 (i) This policy shall provide coverage for Workers ’ Compensation (Coverage A); and
(i) This policy shall provide coverage for $1,000,000 Employers’ Liability (Coverage B).
(ii) Pursuant to Labor Code section 1861, Developer by executing this Agreement certifies: “I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers ’ Compensation or to undertake self - insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this contract.”
(iii) Prior to commencement of work, the Developer shall file with the City’s Risk Manager a Certificate of Insurance or certification of permission to self -insure workers’ compensation conforming to the requirements of the Labor Code.
(d) Endorsements. All of the following endorsements are required to be made a part of each of the above-required policies as stipulated below:
(i) “The City of Chino, its officers, employees and agents are hereby added as additional insureds.”
(ii) “This policy shall be considered primary insurance with respect to any other valid and collectible insurance the City may possess, including any self - insured retention the City may have and any other insurance the City does possess shall be considered excess insurance only.”
(iii) “This insurance shall act for each insured and additional insured as though a separate policy has been written for each. This, however, will not act to increase the limit of the insuring company.” (iv) “Thirty (30) days prior written notice of cancellation shall be given to the City of Chino in the event of cancellation and/or reduction in coverage, except that ten (10) days prior written notice shall apply in the event of cancellation for non -payment of premium. ” Such notice shall be sent to the Risk Manager at the address indicated in Subsection f below.
(v) Subsection d(iv ) hereinabove “Cancellation Notice ” is the only endorsement required of the Workers ’ Compensation and
Employers’ Liability policy.
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15 (e) Admitted Insurers. All insurance companies providing insurance to the Developer under this Agreement shall be admitted to transact the business of insurance by the California Insurance Commissioner.
(f) Proof of Coverage. Copies of all required endorsements shall be attached to the Certificate of Insurance which shall be provided by the Developer’s insurance company as evidence of the coverage required herein and shall be mailed to:
City of Chino
Risk Management
13220 Central Avenue
Chino, CA 91710
12. Environmental Warranty.
12.1. Prior to the acceptance of any dedications or Works of Improvement by City, Developer shall provide City with a written warranty in a form substantially similar to Exhibit “C” attached hereto and incorporated herein by reference, that:
(a) Neither the property to be dedicated nor Developer are in violation of any environmental law, and neither the property to be dedicated nor the Developer are subject to any existing, pending or threatened investigation by any federal, state or local governmental authority under or in connection with the environmental laws relating to the property to be dedicated. (b) Neither Developer nor any other person with Developer’s permission to be upon the property to be dedicated shall use, generate, manufacture, produce, or release, on, under, or about the property to be dedicated, any Hazardous Substance except in compliance with all applicable environmental laws. For the purposes of this Agreement, the term “Hazardous Substances” shall mean any substance or material which is capable of posing a risk of injury to health, safety or property, including all those materials and substances designated as hazardous or toxic by any federal, state or local law, ordinance, rule, regulation or policy, including but not limited to, all of those materials and substances defined as “Toxic Materials” in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 30, as the same shall be amended from time to time, or any other materials requiring remediation under federal, state or local laws, ordinances, rules, regulations or policies. (c) Developer has not caused or permitted the release of and has no knowledge of the release or presence of any Hazardous Substance on the property to be dedicated or the migration of any hazardous substance from or to any other property adjacent to, or in the vicinity of, the property to be dedicated. (d) Developer’s prior and present use of the property to be dedicated has not resulted in the release of any hazardous substance on the property to be dedicated.
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16 12.2. Developer shall give prompt written notice to City of:
(a) Any proceeding or investigation by any federal, state or local governmental (b) authority with respect to the presence of any hazardous substance on the property to be dedicated or the migration thereof from or to any other property adjacent to, or in the vicinity of, the property to be dedicated. (c) Any claims made or threatened by any third party against City or the property to be dedicated relating to any loss or injury resulting from any hazardous substance; and
(d) Developer’s discovery of any occurrence or condition on any property adjoining or in the vicinity of the property to be dedicated that could cause the property to be dedicated or any part thereof to be subject to any restrictions on its ownership, occupancy, use for the purpose for which it is intended, transferability or suit under any environmental law.
13. General Provisions.
13.1. Successors and Assigns . This Agreement shall be binding upon all successors and assigns to Developer’s right, title, and interest in and to the Property and any portion thereof. Developer hereby consents to City recording this Agreement as official records of San Bernardino County, affecting fee title interest to the Property to provide constructive notice of the rights and obligations incurred by Developer in the City ’s approval of this Agreement. In the event the Property is subsequently conveyed by Developer to a third party prior to completion of the Works of Improvement, whereby the third party is intended to assume Developer’s responsibilities with regard to this Agreement, (the “Replacement Developer”), the rights and obligations of this Agreement shall transfer to the Replacement Developer; however, the Security Instruments required pursuant to Section 4 of this Agreement, and furnished by Developer as a condition of the City ’s approval of this Agreement, shall remain Developer’s responsibility to maintain until such time as Developer and its Replacement Developer enter into a Transfer and Assignment of Public Improvement Agreement, (the “Transfer Agreement”), to acknowledge the transfer of fee title to the Property from the Developer to its Replacement Developer, and to acknowledge the rights and obligations associated with this Agreement upon the Replacement Developer, including Replacement Developer’s responsibility to furnish replacement Security Instruments meeting the City’s approval pursuant to Section 4 of this Agreement. Until such time as a Transfer Agreement, meeting the City ’s approval, is executed by Developer and its Replacement Developer, and replacement Security Instruments meeting City ’s approval are furnished by the Replacement Developer, Developer retains sole responsibility for maintaining all Security Instruments required pursuant to Section 4 of this Agreement.
13.2. No Third-Party Beneficiaries. This Agreement is intended to benefit only the parties hereto and their respective successors and assigns. Neither City nor Developer intend to create any third-party beneficiary rights in this Agreement in any contractor, subcontractor, member of the general public, or other person or entity. 216
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17 13.3. No Vesting Rights. Performance by the Developer of this Agreement shall not be construed to vest Developer’s rights with respect to any change in any zoning or building law or ordinance.
13.4. Developer is Not Agent of City. Neither Developer nor Developer’s agents, contractors, or subcontractors are agents or contractors of the City in connection with the performance of Developer’s obligations under this Agreement.
13.5. Time of the Essence. Time is of the essence of Developer’s performance of all of its obligations under this Agreement.
13.6. Notices. Unless otherwise specified in this Agreement, all notices required or provided for under this Agreement shall be in writing and delivered in person or sent by mail, postage prepaid and addressed as provided in this Section. Notice shall be effective on the date is delivered in person, or, if mailed, on the date of deposit in the United States Mail.
Notice shall be provided to the persons listed on Pages 1 and 2 of this Agreement by the parties for this purpose.
Either party may provide a new designated representative and/or address by written notice as provided in this Section.
13.7. No Apportionment. Nothing contained in this Agreement shall preclude City from expending monies pursuant to agreements concurrently or previously executed between the parties, or from entering into agreements with other Developers for the apportionment of costs of water and sewer mains, or other improvements pursuant to the provisions of the City ordinances providing, therefore. Nor shall anything in the Agreement commit City to any such apportionment.
13.8. Severability. I f any portion of this Agreement is held invalid by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect unless amended or modified by mutual written consent of the parties.
13.9. Captions. The captions of this Agreement are for convenience and reference only and shall not be used in the interpretation of any provision of this Agreement.
13.10. Incorporation of Recitals. The recitals to this Agreement are hereby incorporated into the terms of this Agreement.
13.11. Interpretation. This Agreement shall be interpreted in accordance with the laws of the State of California.
13.12. Entire Agreement; Waivers and Amendments . This Agreement integrates all of the terms and conditions mentioned herein, or incidental hereto, and supersedes all negotiations and previous agreements between the parties with respect to all or part of the subject matter hereof, except as may be expressly provided herein. All waivers of the provisions of this Agreement must be in writing and signed by an authorized representative of the party to be charged, and all amendments hereto must be in writing and signed by the appropriate representatives of both parties.
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18 13.13. Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall be deemed one original.
14. Authority. The persons executing this Agreement on behalf of the parties warrant the (I) party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into of this Agreement does not violate any provisions of any other agreement to which said party is bound. [SIGNATURES ON NEXT PAGE]
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19 IN WITNESS WHEREOF, the City and the Developer have caused this Agreement to be executed the day and year first above written.
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
___________________________
Fred Galante, City Attorney Hye Jin Lee, Director of Public Works
Dated: Dated:
RICHLAND VENTURES, INC.:
Dated:
CITY OF CHINO
Linda Reich, City Manager
Dated:
ATTEST:
Natalie Gonzaga, City Clerk
Dated: ___________________________
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01225.0006/367559.3
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EXHIBIT “A”
LOCATION MAP
[Attached]
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EXHIBIT “A”
Parcel Map 19756
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EXHIBIT “B”
WORKS OF IMPROVEMENT
A. Removal of undesirable, dangerous and dead plant materials and roots.
B. Disposal of all rocks and debris located within any public right -of-way within said development or on the boundary streets thereof.
C. Installation of approved landscaping (plants and materials).
The Developer shall also perform all work and furnish all materials necessary, in the opinion of the Director of Public Works or her designee and on h er order, to complete the improvements in accordance with the plans and specifications on file as hereinbefore specified, or any changes required or ordered by said Engineer which, in his opinion, are necessary or required to complete this work.
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EXHIBIT “C”
ENVIRONMENTAL WARRANTY
As a condition precedent to acceptance of the dedications and public improvements to be conveyed by the above -named Developer to the City of Chino for the above-referenced Subdivision, Developer hereby warrants to the City of Chino that:
1. Neither the property to be dedicated nor Developer are in violation of any environmental law, and neither the property to be dedicated nor the Developer are subject to any existing, pending or threatened investigation by any federal, state or local governmental authority under or in connection with the environmental laws relating to the property to be dedicated.
2. Neither Developer nor any other person with Developer’s permission to be upon the property to be dedicated has used, generated, manufactured, produced, or released, on, under, or about the property to be dedicated, any Hazardous Substance except in compliance with all applicable environmental laws. For the purposes of this warranty, the term “Hazardous Substances ” shall mean any substance or material which is capable of posing a risk of injury to health, safety or property, including all those materials and substances designated as hazardous or toxic by any federal, state or local law, ordinance, rule, regulation or policy, including but not limited to, all of those materials and substances defined as “Toxic Materials” in Sections 66680 through 66685 of Title 22 of the California Code of Regulations, Division 4, Chapter 30, as the same shall be amended from time to time, or any other materials requiring remediation under federal, state or local laws, ordinances, rules, regulations or policies.
3. Developer has not caused or permitted the release of and has no knowledge of the release or presence of any Hazardous Substance on the property to be dedicated or the migration of any hazardous substance from or to any other property adjacent to, or in the vicinity of, the property to be dedicated.
4. Developer’s prior and present use of the property to be dedicated has not resulted in the release of any Hazardous Substance on the property to be dedicated.
5. All persons executing this warranty hereby represent and warrant to the City of Chino, and Developer hereby represents and warrants, that the signators hereto have the legal power, right and authority to execute this warranty on behalf of the Developer and that the signators hereto have sufficient knowledge or expertise, either personally, through reasonable inspection and investigation of the property, or through reasonable reliance upon the investigation and professional opinion of Developer’s environmental experts, to make the representations herein, and that no consent of any other party is required to execute this warranty and make the representations herein on behalf of the Developer to the City of Chino.
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Each of the undersigned persons declares under penalty of perjury that the foregoing is true and correct.
Dated: _________________________
RICHLAND VENTURES, INC.
By:
*Proof of authorization for Developer’s signatures is required to be submitted concurrently with this environmental warranty.
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E
E E E E E
EE E E E E
NOT A PART
INSTALLED SANITARY SEWER (MAINTAINED BY CITY)
LEGEND
100 50 100 2000
INSTALLED DOMESTIC WATER (MAINTAINED BY CITY)
INSTALLED RECYCLED WATER (MAINTAINED BY CITY)
INSTALLED STORM DRAIN (MAINTAINED BY CITY)I
NSTALLED STREET LIGHT
Z:\06.025.000 BRUECHERT\302 ALTITUDE BUSINESS CENTRE\DRAWINGS\EXHIBITS\ALTITUDE BUSINESS CENTRE EXHIBIT.DWGQUALITY WAY
ALTITUDE BUSINESS CENTRE-BICKMORE AVENUE
CITY OF CHINO
ASPHALT
WALK SIDEWALK(Maintained
by Owner / HOA)
(Maintained by Owner / HOA)
(Maintained by Owner / HOA)
(Maintained by City)
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EXISTINGEXISTING
KIMBALL AVENUE
250 125 250 5000
Z:\06.025.000 BRUECHERT\302 ALTITUDE BUSINESS CENTRE\DRAWINGS\EXHIBITS\ALTITUDE BUSINESS CENTRE EXHIBIT.DWGQUALITY WAY
ALTITUDE BUSINESS CENTRE-KIMBALL AVENUE
CITY OF CHINO
INSTALLED SANITARY SEWER (MAINTAINED BY CITY)
LEGENDI
NSTALLED DOMESTIC WATER (MAINTAINED BY CITY)
INSTALLED RECYCLED WATER (MAINTAINED BY CITY)
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(Maintained by Owner / HOA)
(Maintained by City)
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(EX. 54"SS)
EX. SMH NO. 22
(INV.=578.00%%P)
(INV.=577.50%%P)E
E E
(EX. 54"SS)
EX. SMH NO. 22
(INV.=578.00%%P)
(INV.=577.50%%P)E
E E
KIMBALL AVENUEQUALITY WAY
1 200 100 200 4000
Z:\06.025.000 BRUECHERT\302 ALTITUDE BUSINESS CENTRE\DRAWINGS\EXHIBITS\ALTITUDE BUSINESS CENTRE EXHIBIT.DWG
BICKMORE AVENUE
KIMBALL AVENUE
ALTITUDE BUSINESS CENTRE-QUALITY WAY
CITY OF CHINO
INSTALLED SANITARY SEWER (MAINTAINED BY CITY)
LEGEND
INSTALLED DOMESTIC WATER (MAINTAINED BY CITY)
INSTALLED RECYCLED WATER (MAINTAINED BY CITY)
INSTALLED STORM DRAIN (MAINTAINED BY CITY)
INSTALLED STREET LIGHT (MAINTAINED BY CITY)
ASPHALT
WALK SIDEWALK
(Maintained by Owner / HOA)
(Maintained by Owner / HOA)
(Maintained by Owner / HOA)
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E
100 50 100 2000
Z:\06.025.000 BRUECHERT\302 ALTITUDE BUSINESS CENTRE\DRAWINGS\EXHIBITS\ALTITUDE BUSINESS CENTRE EXHIBIT.DWG
BICKMORE AVENUE
ALTITUDE BUSINESS CENTRE-QUALITY WAY
CITY OF CHINOQUALITY WAY
INSTALLED SANITARY SEWER (MAINTAINED BY CITY)
LEGEND
INSTALLED DOMESTIC WATER (MAINTAINED BY CITY)
INSTALLED RECYCLED WATER (MAINTAINED BY CITY)
INSTALLED STORM DRAIN (MAINTAINED BY CITY)
ASPHALT
WALK SIDEWALK
(Maintained by Owner / HOA)
(Maintained by Owner / HOA)
(Maintained by Owner / HOA)
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MEMORANDUM
CITY OF CHINO
FINANCE DEPARTMENT
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TO: LINDA REICH, CITY MANAGER
FROM: NADYNE LOWRY, ACTING DIRECTOR OF FINANCE
SUBJECT
..titl e
Formation of Improvement Area 11 in Community Facilities District 2003-3. ..end
RECOMMENDATION
..recommendation
1) Conduct a Public Hearing regarding the formation of Improvement Area 11 in Community Facilities District 2003 -3; 2) accept tax consultant’s report; 3) adopt Resolution No. 2024 -054 establishing Improvement Area 11 of CFD No. 2003 -3 authorizing the levy of special taxes and calling an election; 4) adopt Resolution No. 2024 -055, determining the necessity to incur bonded indebtedness; 5) conduct a special election with the property owners; 6) adopt Resolution No. 2024-056, declaring results of the special election and directing record ing of the special tax lien; 7) approve the introduction of Ordinance No. 2024-012, levying a special tax, to be read by number and title and waive further reading of the ordinance; and 8) authorize the City Manager to execute all necessary documents on behalf of the City. ..body
FISCAL IMPACT
The City will receive City Services Tax revenue of approximately $134,800 per year upon build out of Improvement Area 11. This revenue is intended to offset the cost of providing City services to the homes within CFD 2003-3.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Financial Stability
Revenue:
Expenditure:
Transfer In: Transfer Out:
258
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: FORMATION OF IMPROVEMENT AREA 11 IN COMMUNITY FACILITIES DISTRICT 2003-3.
PAGE: 2
BACKGROUND
Lewis Operating Corporation (Lewis) is the primary land developer in The Preserve. Lewis is currently developing their land with residential, commercial and community facilities. As part of the development of The Preserve, the City of Chino is requiring Lewis to build the necessary public infrastructure to serve the residents and businesses of the new project area. In order to help Lewis finance the cost of the required infrastructure improvements, the City has formed Community Facilities District (CFD) No. 2003-3.
CFD No. 2003-03 was formed in 2004 and was designed to utilize Improvement Areas to issue bonds as The Preserve developed over time to finance certain public facilities, and to pay for necessary ongoing municipal services authorized by the Mel lo-Roos Act and the formation documents with respect to CFD No. 2003 -3. To date, ten Improvement Areas have been established. The public improvements for the Lewis project have consisted of backbone infrastructure such as sewer, water and gas lines, stor m drain connections, streets, curb and gutters, streetlight and traffic signal improvements, landscaped medians, fire station, joint use community center and other required facilities. Authorized municipal services payable from the improvement areas include maintenance of parks, parkways, and open space; flood and storm protection; operation of storm drainage systems; and public safety services.
Lewis is moving forward on additional housing developments in The Preserve. Lewis has approached the City and wishes to establish Improvement Area 11 in CFD No. 2003 -3.
Improvement Area 11 will comprise of four separate zones for taxing purposes (see attached map).
On October 1, 2024, City Council adopted Resolution No. 2024 -049, declaring the City of Chino’s intention to annex property into Community Facilities District No. 2003 -3, and to Establish Improvement Area No. 11 in CFD No. 2003 -3, and to authorize the Levy of Special Taxes. In addition, the City Council adopted Resolution No 2024 -050, declaring the City of Chino’s Intention to Incur Bonded Indebtedness for the proposed Improvement Area 11 of the Community Facilities District No. 2003 -3 and established Nove mber 5, 2024, as the Public Hearing date. A Notice of Public Hearing was published in the local paper on October 19, 2024.
Additionally, the full notice was mailed to all the owners of the subject property prior to the Public Hearing, November 5, 2024.
ISSUES/ANALYSIS
The Mello-Roos Community Facilities Act of 1982 (“the Act”), Section 55318 of the Government Code, establishes the specific proceedings for creating Improvement Areas in a Community Facilities District. These proceedings require the Ci ty Council to conduct a public hearing to hear testimony of all interested persons for or against the establishment of the Improvement Area, the extent of the Improvement Area, and the furnishing of specific types of public facilities or services. At the conclusion of the hearing, the legislative body may determine to proceed with establishing the Improvement Area.
By adopting Resolution No. 2024 -049, pursuant to Section 53321.5 of the Act, the Council ordered the responsible officers for the proposed Imp rovement area to study said improvement area and prepare a report for the Council. The Special Tax Consultant, Webb Municipal Finance, has prepared and submitted this report to the City Council on behalf of the officers for 259
CITY COUNCIL MEETING DATE: NOVEMBER 5, 2024
TITLE: FORMATION OF IMPROVEMENT AREA 11 IN COMMUNITY FACILITIES DISTRICT 2003-3.
PAGE: 3
City review. The report contai ns a brief description of the public facilities and services by type, their estimated cost, establishes the rates and methods of apportionment of the special taxes to be levied upon the parcels of taxable property required to fund the acquisition and/or construction of said public facilities and the provision of said services, as well as the amounts and costs associated with the issuance of bonds to finance acquisition and/or construction of said facilities.
After the legislative body determines to establ ish the Improvement Area, it shall adopt a resolution authorizing the formation of the Improvement Area and the levy of a special tax within the Improvement Area and calling for a special election within the Improvement Area, and it may immediately hold th e special election. An official ballot, including a waiver of the time limit pertaining to the conduct of the election, and any requirement for notice of analysis and arguments with respect to the ballot measure, were provided to the property owner(s) pri or to the November 5, 2024 City Council meeting. The City Clerk must also concur with the shortening of various time periods applicable to the said landowner election.
The City Clerk shall then canvass the returns of the election and total the number of ballots cast for and against the measure. After the canvass of returns of any election, pursuant to Section 53326, the legislative body may levy any special tax as specified in the resolution of formation in the territory of the Improvement Area, if two -thirds of the votes cast are in favor of levying that tax. The legislative body shall then approve the introduction of an ordinance levying a special tax on the Improvement Area.
At this time, it is estimated there will be approximately $20,000,000 in bon ds sold. Staff is not moving forward with the remaining documents required to sell the bonds until development in the Improvement Area is sufficient to justify the bond issuance. When development is sufficient to justify the bond issuance, the City will then process the documents necessary to sell bonds.
These documents will include the Resolution approving the Preliminary Official Statement, Fiscal Agent Agreement, Bond Purchase Agreement and District Continuing Disclosure Agreement. These documents wi ll be scheduled for consideration at a future City Council meeting.
Attachments: Resolution No. 2024-054
Resolution No. 2024-055
Resolution No. 2024-056
Ordinance No. 2024-012
Improvement Area 11 Boundary Map
Tax Consultant’s Report
Rate and Method of Apportionment (RMA)
NL:hm
260
RESOLUTION NO. 2024-054
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHINO ESTABLISHING IMPROVEMENT AREA NO. 11 OF
COMMUNITY FACILITIES DISTRICT NO. 2003 -3 OF THE
CITY OF CHINO, AUTHORIZING THE LEVY OF SPECIAL
TAXES AND CALLING AN ELECTION THEREIN
WHEREAS, the City Council (the “City Council”) of the City of Chino, California (the “City”) has heretofore adopted Res olution No. 2024-049 (the “Resolution of Intention”) stating its intention to form Improvement Area No. 11 (the “Improvement Area”) of Community Facilities District No. 2003 -3 of the City of Chino (the “Community Facilities District”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, a copy of the Resolution of Intention setting forth a description of the proposed boundaries of the Improvement Area, the public facilities, services and the incidental expenses to be financed by the Improvement Area (the “Facilities,” “Services” and “Incidental Expenses,” respectively) is on file with the City Clerk; and, except to the extent amended by this resolution, the Resolution of Intention is incorporated herein by reference; and WHEREAS, a combined notice of a public hearing to be held on November 5, 2024 was published and mailed to all landowners of the land proposed t o be included within the Improvement Area; and
WHEREAS, on November 5 , 2024 , the City Council opened the public hearing (the “Hearing”) as required by law; and
WHEREAS, at the Hearing there was filed with this City Council a report containing a description of the Facilities and Services necessary to meet the needs of the Improvement Area and an estimate of the cost of such Facilities and Services as required by Section 53321.5 of the Act (the “Community Facilities District Report”); and
WHEREAS, at the Hear ing all persons desiring to be heard on all matters pertaining to the proposed formation of the Improvement Area and the levy of the special taxes and the issuance of bonded indebtedness were heard and a full and fair hearing was held; and WHEREAS, at the Hearing, evidence was presented to the City Council on the matters before it, and the proposed formation of the Improvement Area and the levy of special taxes was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing is fully advised as to all matters relating to the formation of the Improvement Area, the levy of the special taxes and the issuance of bonded indebtedness; and
WHEREAS, the City Council has determined that there have been no registered voters residing in the proposed boundaries of the Improvement Area for the period of 90 days prior to the Hearing and that the qualified electors in the Improvement Area are the landowners within the Improvement Area; and
261
Resolution 2024-054
2 WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the establishment of the Improvement Area and with the calling of an election within the boundaries of the Improvement Area to authorize (i) the levy of special taxes within the Improvement Area pursuant to the rate and method of apportionment of the special tax attached as Exhibit C to the Resolution of Intention (the “Rate and Method”), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an additional appropriations limit for the Community Facilities District on behalf of the Improvement Area;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CHINO AS FOLLOWS:
Section 1. Each of the above recitals is true and correct.
Section 2. An improvement area within the Community Facilities District to be designated “Improvement Area No. 11 of Community Facilities District No. 2003-3 of the City of Chino, County of San Bernardino, State of California” is hereby established pursuant to the Act.
The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the Community Facilities District and the Improv ement Area were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.
Section 3. The boundaries of the Improvement Area are established as shown on the map designated “Proposed Boundary Map Community Facilities District No. 2003-3 Improvement Area No. 11 City of Chino, County of San Bernardino, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County of San Bernardino Book of Boundary Maps in the County Recorder’s Office in Book No. 93 at page 3 as Document No. 2024-0236132 on October 2, 2024.
Section 4. The types of Facilities, Services and Incidental Expenses authorized to be provided for the Improvement Area are those set forth in the Resolution of Intention. The estimated cost of the Facilities, Services and Incidental Expenses to be financed is set forth in the Community Facilities District Report, whic h estimates may change as the Facilities are designed and bid for construction and acquisition.
The City of Chino is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities or provide Services, all in accordance with the Act. The City Council finds that the proposed Facilities and Services are necessary to meet the increased demand that will be placed upon public infrastructure and City as a result of new development within the Improvement Area.
Section 5. The City Council hereby adopts the Rate and Method as the applicable rate and method of apportionment for the Improvement Area. Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within the Improvement Area, to levy the proposed Special Tax A (as defined in the Rate and Method) in the Improvement Area at the rates set forth in the Rate and Method on all non-exempt property within the Improvement Area sufficient to pay (i) the Facilities and the principal and interest and other periodic costs on the bonds proposed to be issued by the Community Faci lities District on behalf of the Improvement Area to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve funds, any remarketing, credit enhancement and liquidity facility fees (including such fees for in struments which serve as the basis of a reserve 262
Resolution 2024-054
3 fund in lieu of cash) and other expenses of the type permitted by Section 53345.3 of the Act; and (ii) the Incidental Expenses.
Except where funds are otherwise available, it is also the intention of the Ci ty Council, subject to the approval of the eligible voters within the Improvement Area, to levy the proposed Special Tax B (as defined in the Rate and Method, and, together with Special Tax A, the “Special Tax”) in the Improvement Area at the rates set for th in the Rate and Method on all non -exempt property within the Improvement Area sufficient to pay (i) the Services; and (ii) the Incidental Expenses.
The Community Facilities District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the Improvement Area, providing the Services, the issuance of bonds, the levying and collecting of the Special Tax, the completion and inspection of the Facilities and the annual administration of the bonds an d the Community Facilities District. The Rate and Method is attached as Exhibit C to the Resolution of Intention , and the City Council hereby finds that the Rate and Method contains sufficient detail to allow each landowner within the Improvement Area to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Community Facilities District Report, which is incorporated by reference herein, the Special Tax is based on the expected demand that each parcel of real property within the Improvement Area will place on the Facilities and Services and, accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each assessor’s parcel pursuant to the Rate and Method, but Special Tax A shall not be levied after Fiscal Year 2068-69. The Special Tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and the Special Tax is not a tax on or a tax based upon the ownership of real property.
The City’s Direct or of Finance or Acting Director of Finance will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of Special Tax levy obligations by assessor’s parcel number and will be responsible for estimating future Special Tax levies pursuant to Section 53340.2 of the Act.
Section 6. In the event that a portion of the property within the Improvement Area shall become for any reason exempt, wholly or partially, from the levy of Special Tax specified in the Rate and Method, the City Council shall, on behalf of the Improvement Area, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property within the Improvement Area which is not delinquent or exempt in order to yield the required debt service payments on any outstanding bonds of the Improvement Area or to prevent the Community Facilities District from defaulting on any other obligations or liabilities of the Improvement Area; provided, however, that under no circumstances shall the Special Tax in the Improvement Area be increased in any fiscal year as a consequence of delinquency or default by the owner of any other parcel or parcels within the Improvement Are a by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The amount of the Special Tax will be set in accordance with the Rate and Method.
Section 7. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all non -exempt real property in the Improvement Area; and this lien shall continue in force and effect until (i) in the case of Special Tax A, the Special Tax A obligation is prepaid and permanently satisfied and the lien canceled in accordance with law, or (ii) for both Special Tax A 263
Resolution 2024-054
4 and Special Tax B, until collection of the applicable Special Tax by the Community Facilitie s District on behalf of the Improvement Area ceases.
Section 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within the Improvement Area, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within the Improvement Area and will be benefited by the Improvements proposed to be provided within the Improvement Area.
Section 9. It is hereby further det ermined that there is no ad valorem property tax currently being levied on property within the proposed Improvement Area for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of the Improvement Area as are proposed to be provided by the Facilities or Services to be financed by the Improvement Area.
Section 10. Written protests against the establishment of the Improvement Area have not been filed by one -half or more of the registered voters within the boundaries of the Improvement Area or by the property owners of one -half or more of the area of land within the boundaries of the Improvement Area. The City Council hereby fi nds that the proposed Special Tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.
Section 11. An election is hereby called for the Improvement Area on the propositions of levying the Special Tax on the property within the Improvement Area and establishing an additional appropriations limit for the Community Facilities District on behalf of the Improvement Area pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness for by the Community Facilities District on behalf of the Improvement Area, pursuant to Section 53351 of the Act. The propositions to be placed on the ballot for the Improvement Area are attached hereto as Exhibit A.
Section 12. The date of the election with in the Improvement Area shall be November 5, 2024, or such later date as is consented to by the City Clerk and the landowners within the Improvement Area. The City Clerk shall conduct the election. Except as otherwise provided by the Act, the election sh all be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable.
It is hereby found that there are no registered voters within the territory of the Improvement Area, and, pursuant to Section 53326 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he, she or it owns within the Improvement Area. The voters shall be the landowners of record within the Improvement Area as of November 5, 2024.
Section 13. The preparation of the Community Facilities District Report is hereby ratified. The Community Facilities District Report, as submitted, is hereby approved and made a part of the record of the public hearing regarding the formation of the Improvement Area, and is ordered to be kept on file with the transcript of these proceedings and open for public inspection.
Section 14. This Resolution shall be effective upon its adoption. 264
Resolution 2024-054
5 PASSED AND ADOPTED by the City Council at a regular meeting held on the 5th day of November 2024.
CITY COUNCIL OF THE CITY OF CHINO
By:_____________________________________
Eunice M. Ulloa,
Mayor of the City of Chino
ATTEST:
________________________________
Natalie Gonzaga
City Clerk of the City of Chino
265
Resolution 2024-054
6 STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF CHINO )
I, NATALIE GONZAGA, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Chino at a regular meeting held on the 5th day of November 2024, by the following votes:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
NATALIE GONZAGA, CITY CLERK
Attachments: Exhibit A
266
A-1
EXHIBIT A
SAMPLE BALLOT
IMPROVEMENT AREA NO. 11
OF COMMUNITY FACILITIES DISTRICT NO. 2003-3
OF THE CITY OF CHINO
SPECIAL TAX AND SPECIAL BOND ELECTION
November 5, 2024
This ballot represents ___ votes.
To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.
If you wrongly mark, tear or deface this ballot, return it to the City Clerk of the City of Chino and obtain another.
PROPOSITION A: Shall Improvement Area No. 11 of Community Facilities District No. 2003-3 of the City of Chino (the “Improvement Area”) incur an indebtedness and issue bonds for the Improvement Area in the maximum principal amount of $20,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2024-049 of the City Council of the City of Chino (the “Resolution of Intention”)?
YES______
NO_______
PROPOSITION B: Shall Special Tax A and Special Tax B with a rate and method of apportionment attached as Exhibit C to the Resolution of Intention, at rates ranging from $8,620 to $10,300 per unit and $80,952 per acre until June 30, 2069, in the case of Special Tax A, and at rates ranging from $1,071 to $1,276 per unit and $9,334 per acre in perpetuity as long as the Services are provided, in the case of Special Tax B, be levied to pay for (i) in the case of Special Tax A, the Facilities, Incidental Expenses and the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses and the other purposes described in resolution of the City Council stating its intention to form the Improvement Area (the “Resolution of Intention”), and (ii) in the case of Special Tax B, the Services, Incidental Expenses and the other purposes described in the Resolution of Intention?
YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2025-26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for the Community Facilities District on behalf of the Improvement Area be increased by an amount equal to $20,000,000?
YES______
NO_______
267
RESOLUTION NO. 2024-055
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHINO, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2003-3 OF THE
CITY OF CHINO , DETERMINING THE NECESSITY TO
INCUR BONDED INDEBTEDNESS WITHIN IMPROVEMENT
AREA NO. 11 OF SAID COMMUNITY FACILITIES DISTRICT
AND CALLING AN ELECTION THEREIN
WHEREAS, on October 1, 2024, the City Council (the “City Council”) of the City of Chino adopted Re solution No. 2024-049 (the “Resolution of Intention”) stating its intention to form Improvement Area No. 11 (the “Improvement Area”) of Community Facilities District No. 2003-3 of the City of Chino (the “Community Facilities District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”); and
WHEREAS, on October 1, 2024, the City Council also adopted Resolution No. 2024-050 stating its intention to incur bonded indebtedness within the proposed Improvement Area in an amount not to exceed $20,000,000 to finance: (1) the purchase, construction, expansion, improvement or rehabilitation of public improvements identified in Exhibit B to the Resolution of Intention, including all furnishings, equipment and supplies relat ed theret o (collectively, the “Facilities”) and (2) the incidental expenses to be incurred in financing the Facilities and forming and administering the Improvement Area (the “Incidental Expenses”); and WHEREAS, notice was published as required by law relative to t he intention of the City Council to form the proposed Improvement Area and to incur bonded indebtedness for the Improvement Area; and
WHEREAS, on November 5, 2024, the City Council opened a noticed public hearing to determine whether it should proceed to f orm the Improvement Area, issue bonds to pay for the Facilities and Incidental Expenses and to authorize the rate and method of apportionment of a special tax to be levied within the Improvement Area for the purposes described in the Resolution of Intention; and
WHEREAS, at said public hearing all persons desiring to be heard on all matters pertaining to the formation of the Improvement Area, the levy of a special tax and the issuance of bonds to pay for the cost of the proposed Facilities and Incidental Expenses were heard and a full and fair hearing was held; and
WHEREAS, subsequent to such hearing the City Council adopted a resolution establishing the Improvement Area (the “Resolution of Formation”); and WHEREAS, the City Council desires to make the neces sary findings to incur bonded indebtedness for the Improvement Area, to declare the purpose for said indebtedness, and to authorize the submittal of certain propositions to the voters of the Improvement Area, being the owners of land within the Improvement Area, all as authorized and required by law; 268
Resolution 2024-055
2 NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CHINO AS FOLLOWS:
Section 1. It is necessary to incur bonded indebtedness of the Improvement Area in a maximum aggregate principal amount not to exceed $20,000,000.
Section 2. The indebtedness is to be incurred for the purpose of financing the costs of purchasing, constructing, modifying, expanding, improving, or rehabilitating the Facilities, as described in the Resolution of Intention and the Resolution of Formation, financing the Incidental Expenses, and carrying out the powers and purposes of the Community Facilities District on behalf of the Improvement Area , including, but not limited to, financing the cost s of selling the bonds, establishing and replenishing bond reserve funds and paying remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash), administrative expenses and other expenses of the type authorized by Section 53345.3 of the Act.
Section 3. The whole of the property within the Improvement Area, other than property exempted from Special Tax A (as defined in the Rate and Method, defined below) pursuant to the provisions of the rate and method of apportionment approved by the City Council as the rate and method of apportionment for the Improvement Area (the “Rate and Method”) , shall pay for the bonded indebtedness of the Improvement Area pursuant to the levy of Special Tax A authorized by the Resolution of Formation.
Section 4. The maximum term of the bonds to be issued shall in no event exceed forty (40) years.
Section 5. The bonds shall bear interest at the rate or rates not to exceed the maximum interest rate permitted by law, payable annually or semiannually, or in part annually and in part semiannually, except the first interest payment may be for a period of less than six months, with the actual rate or rates and times of payment to be determined at the time or times of sale thereof.
Section 6. The bonds may bear a variable or fixed interest rate, provided that such variable rate or the fixed rate shall not exceed the maximum rate permitted by Section 53531 of the California Government Code, or any other applicable provision of law limiting the maximum interest rate on the bonds.
Section 7. Pursuant to Section 53351 of the Act, a special election is hereby called for the Improvement Area on the proposition of incurring the bonded indebtedness. The proposition relative to incurring bonded indebtedness for the Improvement Area shall be in the form set forth in Exhibit A to the Resolution of Formation. The election in the Improvement Area on the proposition of incurring bonded indebtedness shall be consolidated with the election and on the propositions to levy Special Tax A and Special Tax B (as defined in the Rate and Method) and to establish an appropriations limit for the Improvement Area, which propositions shall be in the forms set forth in Exhibit A to the Resolution of Formation.
Section 8. The date of the consol idated special election for the Improvement Area shall be November 5, 2024, or such later date as is consented to by the City Clerk of the City of Chino (the “City Clerk”) and the owners of land within the Improvement Area. The election shall be conducted by the City Clerk. Except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable. The City Clerk is authorized to 269
Resolution 2024-055
3 conduct the election following the adoption of the Resolution of Formation and this resolution; and all ballots shall be received by, and the City Clerk shall close the election by 6:00 p.m. on the election day; provided the election shall be closed at such earlier time as all qualified electors have voted as provided in Section 53326(d) of the Act. It is hereby found that there are fewer than 12 registered voters within the territory of the Improvement Area and, pursuant to Section 53351(j) of the Act, the ballots for the special election shall be distributed in person or by mail with return postage prepaid to the landowners of record within the Improvement Area as of the close of the November 5 , 2024 hearing regarding the formation of the Improvement Area . Each landowner shall have one vote for each acre or portion thereof that he, she or it owns within the Improvement Area, as provided in Section 53326 of the Act.
Section 9. This Resolution shall be effective upon its adoption.
PASSED AND ADOPTED by the City Council at a regular meeting held on the 5th day of November 2024.
CITY COUNCIL OF THE CITY OF CHINO
By:_____________________________________
Eunice M. Ulloa,
Mayor of the City of Chino
ATTEST:
________________________________
Natalie Gonzaga
City Clerk of the City of Chino
270
Resolution 2024-055
4 STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF CHINO )
I, NATALIE GONZAGA, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Chino at a regular meeting held on the 5th day of November 2024, by the following votes:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
NATALIE GONZAGA, CITY CLERK
271
RESOLUTION NO. 2024-056
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHINO, ACTING IN ITS CAPACITY AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2003-3 OF THE CITY OF CHINO ON
BEHALF OF IMPROVEMENT AREA NO. 11 THEREIN,
CERTIFYING THE RESULTS OF THE NOVEMBER 5 ,
2024 SPECIAL TAX AND BOND ELECTIONS
WHEREAS, the City Council (the “City Council”) of the City of Chino, California (the “City”), acting as the legislative body of Community Facilities District No. 2003-3 of the City of Chino (the “Community Facilities District”), c alled and duly held elections on November 5, 2024 within the boundaries of Improvement Area No. 11 of the Community Fa cilities District (the “Improvement Area”) pursuant to Resolution Nos. 2024-054 and 2024-055 for the purpose of presenting to the qualified electors within the Improvement Area the propositions which are attached hereto as Exhibit A; and
WHEREAS, there has been presented to th e City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Exhibit B;
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CHINO AS FOLLOWS:
Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the Community Facilities District on behalf of the Improvement Area.
Section 2. Propositions A, B and C presented to the qualified electors of the Improvement Area on November 5, 2024 were approved by more than two-thirds of the votes cast at the election held for the Improvement Area, and each of Propositions A, B and C has carried. The City Council is hereby authorized to levy on the land within the Improvement Area the special tax described in Proposition B for the purposes described therein and to take the necessary steps to levy the special tax authorized by Proposition B and to issue bonds in an amount not to exceed $20,000,000 specified in Proposition A.
Section 3. The City Clerk is hereby directed to record in the Office of the County Recorder within fifteen days of the date hereof a notice of special tax lien which Bond Counsel to the Community Facilities District shall prepare in the form required by Streets and Highways Code Section 3114.5.
Section 4. This Resolution shall be effective upon its adoption. 272
Resolution 2024-056
2 4854-9815-9284v4/022141-0052
PASSED AND ADOPTED by the City Council at a regular meeting held on the 5th day of November 2024.
CITY COUNCIL OF THE CITY OF CHINO
By:_____________________________________
Eunice M. Ulloa,
Mayor of the City of Chino
ATTEST:
________________________________
Natalie Gonzaga
City Clerk of the City of Chino
273
Resolution 2024-056
3 4854-9815-9284v4/022141-0052
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF CHINO )
I, NATALIE GONZAGA, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Chino at a regular meeting held on the 5th day of November 2024, by the following votes:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
NATALIE GONZAGA, CITY CLERK
Attachments: Exhibits A and B
274
A-1
4854-9815-9284v4/022141-0052
EXHIBIT A
SAMPLE BALLOT
IMPROVEMENT AREA NO. 11
OF COMMUNITY FACILITIES DISTRICT NO. 2003-3
OF THE CITY OF CHINO
SPECIAL TAX AND SPECIAL BOND ELECTION
November 5, 2024
This ballot represents ___ votes.
To vote, write or stamp a cross (“+” or “X”) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void.
If you wrongly mark, tear or deface this ballot, return it to the City Clerk of the City of Chino and obtain another.
PROPOSITION A: Shall Improvement Area No. 11 of Community Facilities District No. 2003-3 of the City of Chino (the “Improvement Area”) incur an indebtedness and issue bonds for the Improvement Area in the maximum principal amount of $20,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2024-049 of the City Council of the City of Chino (the “Resolution of Intention”)?
YES______
NO_______
PROPOSITION B: Shall Special Tax A and Special Tax B with a rate and method of apportionment attached as Exhibit C to the Resolution of Intention, at rates ranging from $8,620 to $10,300 per unit and $80,952 per acre until June 30, 2069, in the case of Special Tax A, and at rates ranging from $1,071 to $1,276 per unit and $9,334 per acre in perpetuity as long as the Services are provided, in the case of Special Tax B, be levied to pay for (i) in the case of Special Tax A, the Facilities, Incidental Expenses and the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses and the other purposes described in resolution of the City Council stating its intention to form the Improvement Area (the “Resolution of Intention”), and (ii) in the case of Special Tax B, the Services, Incidental Expenses and the other purposes described in the Resolution of Intention?
YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2025-26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for the Community Facilities District on behalf of the Improvement Area be increased by an amount equal to $20,000,000?
YES______
NO_______
275
B-1
4854-9815-9284v4/022141-0052
EXHIBIT B
CERTIFICATE OF THE CITY CLERK
AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Natalie Gonzaga, City Clerk of City of Chino, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Improvement Area No. 11 of Community Facilities District No. 2003-3 of the City of Chino (the “Improvement Area”). The election was held in the chambers of the City Council at 13220 Central Avenue, Chino, California, on November 5, 2024.
I caused to be delivered a ballot to the authorized representative of each qualified elector. _______ (__) ballots were returned.
I further certify that the results of said election and the number of votes cast for and against Propositions A, B and C are as follows:
PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:
NO: NO: NO:
TOTAL: TOTAL: TOTAL:
Dated this 5th day of November, 2024.
Natalie Gonzaga, City Clerk
City of Chino
276
ORDINANCE NO. 2024-012
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO ,
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2003-3 OF THE CITY OF CHINO, ON BEHALF OF IMPROVEMENT AREA NO. 11 THEREIN,
AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN
IMPROVEMENT AREA NO. 11 OF THE DISTRICT
WHEREAS, on October 1, 2024, the City Council (the “City Council”) of the City of Chino (the “City”) adopted Resolution No. 2024-049 (the “Resolution of Intention”) declaring its intention to form Improvement Area No. 11 (the “ Improvement Area ”) of Community Facilities District No. 2003-3 of the City of Chino (the “Community Facilities District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and adopted Resolution No. 2024-050 declaring its intention to incur bonded indebtedness of the Improvement Area; and WHEREAS, on November 5, 2024, after providing all notice required by the Act, the City Council opened a public hearing required by the Act relative to the formation of the Improvement Area, the proposed levy of a special tax within the Improvement Area to provide certain services and finance certain public improvements described in Resolution No. 2024-049 and to secure the payment of any bonded indebtedness of the Improvement Area, and the proposed issuance of up to $20,000,000 of bonded indebtedness; and
WHEREAS, at the public hearing, all persons desiring to be heard on all matters pertaining to the formation of the Improvement Area , the proposed levy of the special tax within th e Improvement Area to provide for the services and to finance the improvements described in Resolution No. 2024-049 and the proposed issuance of bonded indebtedness of the Community Facilities District on behalf of the Improvement Area were heard and a ful l and fair hearing was held; and
WHEREAS, on November 5 , 2024 , following the close of the public hearing, the City Council adopted a resolution establishing the Improvement Area (the “Resolution of Formation”) and a r esolution determining the necessity to incur bonded indebtedness of the District (the “Resolution to Incur Bonded Indebtedness”) each of which called a consolidated special election on November 5, 2024 within the Improvement Area on three propositions relating to the levying of a special tax, the incurring of bonded indebtedness and the establishment of an appropriations limit for the Improvement Area; and
WHEREAS, on November 5, 2024, a special election was held within the Improvement Area at which the qualified electors approved by more than a two -thirds vote Propositions A, B and C authorizing the levy of a special tax within the Improvement Area for the purposes described in the Resolution of Formation and the issuance of bonded indebted ness for the Improvement Area as described in the Resolution to Incur Bonded Indebtedness.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2003- 3 OF THE CITY OF CHINO, ORDAINS AS FOLLOWS:
277
Ordinance 2024-012
2 Section 1. The above recitals are all true and correct.
Section 2. By the passage of this Ordinance, the City Council authorizes the levy of Special Tax A and Special Tax B (as defined in the Rate and Method, defined below, and, collectively, the “Special Tax”) within the Improvement Area at the maximum rates and in accordance with the rates and method of apportionment set forth in Exhibit C to the Resolution of Intention, which rate and method of apportionment is incorporated by reference herein (the “Rate and Method”).
Section 3. The Director of Finance of the City is hereby further authorized and directed each fiscal year, on or before August 10 of each year, or such later date as is permitted by law, to determine the specific Special Tax rates and amounts to be levied for the next ensuing fiscal year for each parcel of real property within the specific Special Tax rate and amount to be levied on each parcel of land in the Improvement Area pursuant to the Rate and Method. The Special Tax rate to be levied pursuant to the Rate and Method shall not exceed the applicable maximum rates set forth therein, but the Special Tax may be levied at a lower rate.
Section 4. Properties or entities of the state, federal or other local government s shall be exempt from the Special Tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act , the Rate and Method and the boundary map for the Improvement Area . No other properties or entities are exempt from the Special Tax unless the properties or entities are expressly exempted in the Resolution of Formation, or in a resolution of consideration to levy a new special tax or special taxes or to alter the Rate or Method of an existing special tax as provided in Section 53334 of the Act.
Section 5. All of the collections of the Special Tax pursuant to the Rate and Method shall be used as provided for in the Act , the Resolution of Intention and the Resolution of Formation.
The Special Tax shall be levied within the Improvement Area only so long as needed for the purposes described in the Resolution of Intention and the Resolution of Formation.
Section 6. The Special Tax levied pursuant to the Rate and Method shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitt ed by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time.
Section 7. As a cumulative remedy, if any amount levied as Special Tax A for payment of the interest or principal of any bonded indebtedness of the Improvement Area, together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds, order that the same be collected by an action brought in the superior court to foreclose the lien of such Special Tax A.
Section 8. This Ordinance relating to the levy of the Special Tax within the Improvement Area shall take effect 30 days following its final passage, and the specific authorization for adoption is pursuant to the provisions of Section 53340 of the Act.
Section 9. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the San Bernardino County Assessor and Treasurer -Tax Collector, and to perform all other 278
Ordinance 2024-012
3 acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.
INTRODUCED, ADOPTED, SIGNED AND APPROVED ON the ___ day of November, 2024.
CITY COUNCIL OF THE CITY OF CHINO
By:_____________________________________
Eunice M. Ulloa,
Mayor of the City of Chino
ATTEST:
________________________________
Natalie Gonzaga
City Clerk of the City of Chino
279
Ordinance 2024-012
4 STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.
CITY OF CHINO )
I, NATALIE GONZAGA, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Chino at a regular meeting held on the ___ day of November, 2024, by the following votes:
AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS
NATALIE GONZAGA, CITY CLERK
280
SAN BERNARDINO COUNTY RECORDER’S CERTIFICATE
THIS MAP HAS BEEN FILED UNDER DOCUMENT NUMBER
_________________ THIS _____ DAY OF _________________,
20____, AT ____ __ M., IN BOOK ____ OF ________________ AT PAGE ____, AT THE REQUEST OF CITY OF CHINO IN
THE AMOUNT OF $____________.
CHRIS WILHITE
ASSESSOR-RECORDER-COUNTY CLERK
SAN BERNARDINO COUNTY
BY: __________________________________
DEPUTY RECORDER
SHEET 1 OF 1 SHEET
THIS MAP CORRECTLY SHOWS THE LOT OR PARCEL OF
LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY
FACILITIES DISTRICT. FOR DETAILS CONCERNING THE LINES
AND DIMENSIONS OF LOTS OR PARCELS REFER TO THE SAN
BERNADINO COUNTY ASSESSOR'S MAPS FOR FISCAL YEAR 2023-2024.
PROPOSED BOUNDARY MAP
IMPROVEMENT
AREA No. 11
71 83
EUCLID
EL PRADO
BICKMORE
CHINO-CORONA
SULTANA
M
OUNTAIN
KIMBALL GROVE
M
ILL CREEK
SAN ANTONIO BON VIEW
PINE
EUCLID
I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE
PROPOSED BOUNDARY OF COMMUNITY FACILITIES DISTRICT
NO. 2003-3, IMPROVEMENT AREA No. 11 OF THE CITY OF CHINO,
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WAS
APPROVED BY THE CITY COUNCIL OF THE CITY OF CHINO AT
A REGULAR MEETING THEREOF, HELD ON THE ____ DAY OF
_____________,20___, BY IT'S RESOLUTION
NO._________________.
_____________________________________________
CITY CLERK, CITY OF CHINO
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF
CHINO THIS ___ DAY OF ______________, 20___.
BY: _______________________________
CITY CLERK, CITY OF CHINO
COMMUNITY FACILITIES DISTRICT NO. 2003-3
IMPROVEMENT AREA No. 11
CITY OF CHINO
COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA
VICINITY MAP
NOT TO SCALE
0 300 600
Feet
M:\GIS-Assessment\Chino\CFD_2003-3_IA_11_Boundary.mxd
CHINO-CORONARD
EAST PRESERVE LP
LEGEND
PROPOSED IMPROVEMENT AREA BOUNDARY
LOT BOUNDARY
PARCEL BOUNDARY
ASSESSOR'S PARCEL NUMBER (APN)XXXX-XXX-XX-XXXX
ASSESSOR PARCEL NUMBERS
1057-181-29-0000 (PORTION)
1057-181-30-0000 (PORTION)
1057-181-36-0000 (PORTION)
FOR DETAILS CONCERNING THE LINES AND
DIMENSIONS OF THE TRACT/LOT(S) INCLUDED
WITHIN THE BOUNDARIES OF THE PROPOSED
COMMUNITY FACILITIES DISTRICT, REFER TO
THE COUNTY RECORDER'S TRACT MAP FILED
UNDER DOCUMENT NUMBER 2024-0035635,
THE 15TH DAY OF FEBRUARY 2024 AT
2:49 P.M. IN BOOK NUMBER 367 OF TRACT
MAPS AT PAGE 41-45.
281
-
City of Chino
Community Facilities District No. 2003-3
Improvement Area No. 11
Prepared for:
November 2024
Community Facilities District Report
282
Table of Contents
Sections
Section 1. Introduction ______________________________________________________________ 1 Section 2. Description of Facilities/Improvements and Services ______________________________ 2 Section 3. Cost Estimate _____________________________________________________________ 4 Section 4. Proposed Development _____________________________________________________ 6 Section 4. Proposed Development _____________________________________________________ 6 Section 5. Rate and Method of Apportionment __________________________________________ 7
Tables
Table 3-1. Cost Estimate ______________________________________________________ 4
Appendices
Appendix A. Rate and Method of Apportionment
Appendix B. Boundary Map
283
1. Introduction
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 11 1
AGENCY: CITY OF CHINO
PROJECT: COMMUNITY FACILITIES DISTRICT NO. 2003-3
IMPROVEMENT AREA NO. 11
TO: CITY COUNCIL
CITY OF CHINO
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
Whereas, the City Council of the CITY OF CHINO, SAN BERNARDINO COUNTY, CALIFORNIA (herei nafter referred to as the “City Council ”), did, pursuant to the provisions of the “Mello -Roos Community Facilities Act of 1982”, being chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Section 53321.5 thereof, (the “Act”) expressly ordere d the filing of a written Public Report (the “Report”) for a proposed COMMUNITY FACILITIES DISTRICT NO. 2003-3 IMPROVEMENT AREA NO. 11. This Community Facilities District shall be referred to as COMMUNITY FACILITIES DISTRICT NO. 2003-3 IMPROVEMENT AREA NO. 11 of the CITY OF CHINO (hereinafter referred to as the “District” and “CFD No. 2003-3 IA NO. 11”); and,
Whereas, on October 1 , 202 4, the City Council adopted Resolution No. 202 4-049 (the “Resolution”), and the Resolution ordering said Report, did direct that said Report generally contain the following:
• A description of the public facilities and services by type proposed to be financed by CFD No. 2003-3 IA No. 11;
• An estimate setting forth costs of providing such facilities and services; • The rate and method of apportionment of the Special Tax in sufficient detail to allow each landowner or resident within the proposed District to estimate the annual amount of payment thereof.
NOW, THEREFORE, the undersigned, authorized representative of WEBB MUNICIPAL FINANCE, LLC, the appointed Special Tax Consultant and responsible officer or person directed to prepare the Report, pursuant to the provisions of the Act, does hereby submit the following data:
284
2. Description of Facilities/Improvements and Services
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 11 2
Pursuant to Section 53340 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2003-3 IA No. 11 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual cost associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the community facilities district.
A general description of the proposed facilities and services for the District is as follows:
Facilities/Improvements
The types of Facilities that are proposed by CFD No. 2003-3 IA No. 11 and financed with t he proceeds of Special Taxes and bonds issued by CFD No. 2003-3 IA No. 11 consist of backbone infrastructure needed for new development, such as roadway, bridge, sewer, water, reclaimed water, dry utilities, storm drain, street and parkway landscaping, curb and gutter, medians, median landscaping, traffic signals, entry signage, parks, trails, fire facilities, library facilities and public community facilities, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure.
Services
The types of Services that are proposed to be provided by CFD No. 2003-3 and funded with the proceeds of special taxes levied by CFD No. 2003 -3 consist of services permitted under the Mello -Roos Community Facilities Act of 1982 including, without limitation, maintenance of parks, parkways and open space, flood and storm protection services the operation of storm drainage systems, and public safety services. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2003-3.
Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or Special Taxes include: all costs associated with the creation of CFD No. 2003-3 IA No. 11, the issuance of bonds (which may include, but is not limited to, funding the reserve fund, capitalized interest, underwriter discount, underwriter premium, and cost of issuance) , the determination of the amount of S pecial Taxes to be levied, costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2003-3 IA No. 11, including legal fees, fees of consultants, engineering, planning, designing and the annual administration cost of CFD No. 2003-3 IA No. 11.
The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature. The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any suc h substitution or modification shall not constitute a change or modification in the pro ceedings relating to CFD No. 2003-3 IA No.
11. Based upon the preceding, it is my opinion that the facilities and services being funded are those that are necessary to meet certain increased demands placed upon the City of Chino , as a result of development and/or rehabilitation occurring within the boundaries of the District. 285
2. Description of Facilities/Improvements and Services
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 11 3
DATED: November 5, 2024 WEBB MUNICIPAL FINANCE, LLC
By: _______________________________
SPECIAL TAX CONSULTANT FOR
CITY OF CHINO
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
286
3. Cost Estimate
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 11 4
1. The cost estimate, including I ncidental Expenses, to be financed thr ough the issuance of CFD No. 2003-3 IA No. 11 Bonds is estimated to be $17,180,000 based upon current dollars (Fiscal Year 2024-25).
2. For further particulars, reference is made to Table 3 -1 on the following pages and incorporated herein by reference.
3. Pursuant to Section 53340 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2003-3 IA No. 11 may be used only to pay for the cost of providing public facilities, services, and incidental expenses.
As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special T axes, or costs otherwise incurred in order to carry out the authorized purposes of th e Community Facilities District. The incidental expenses associated with the annual administration of CFD No. 2003-3 IA No. 11 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.
Table 3-1
Cost Estimate (1)
Item Estimated Cost
Park Improvements
Van Vliet Perimeter Streetscape $1,305,142
Nature Trail South $1,197,786
Van Vliet SCE Corridor Landscape $1,402,104
Urban Park (Market – Legacy) $10,725,000
Urban Park Land $1,852,500
Tr. 16420-4 Backbone Landscape $2,829,935
Tr. 16420-5 Backbone Landscape $1,636,680
Tr. 16420-6 Backbone Landscape $1,278,228
Subtotal Eligible Park Improvements: $22,227,375
Street Improvements
Block 4 Backbone Street Improvements $3,600,000
TR16420-3 Main Street Backbone Improvements $3,199,157
Tr. 16420-4 Block 9 Street Improvements $3,500,000
Pine Ave 5-Lane Improvements inc. Traffic Signals $7,896,000 Tr. 16420-5 Backbone Streets $2,800,416
Tr. 16420-6 Backbone Streets $2,175,854
Subtotal Eligible Street Improvements: $23,171,427
Wet Utility Improvements
Tr. 16420-3 Backbone Storm Drain, Sewer, Water, Recycled Water $2,460,000 Pine Ave 5-Lane Backbone Improvements $540,000
Tr. 16420-4 Backbone Storm Drain, Sewer, Water, Recycled Water $3,000,000 Line "F" Backbone Storm Drain Improvements $4,200,000
287
3. Cost Estimate
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 11 5
Tr. 16420-5 Backbone Wet Utilities $2,435,138
Tr. 16420-6 Backbone Wet Utilities $1,825,272
Subtotal Eligible Wet Utility Improvements: $14,460,410
Misc. Residential Amenities
Community Core - Misc Residential Amenities (Pine - Market) $1,500,000 Community Core - Misc Residential Amenities Main St- Market to Legacy Park $1,500,000 Subtotal Eligible Mic. Residential Amenities: $3,000,000
City Fees
Law Enforcement $148,549
DIF Administration Fee $1,003,768
Public Use (Community Center) Facilities Fee - or Construction $1,236,307 General Government Fees $44,772
Congestion Management Plan Fees $139,265
Fire Fees $306,834
Streets DIF Prepayment (Pine Ave) $1,422,041
Storm Drain DIF Payment (Pine Ave) $645,470
Park Fees $1,148,000
Subtotal Eligible City Fees $6,095,006
Grand Total Eligible Improvements $68,954,218
Estimated Bond Issuance: $17,180,000
Estimated Incidentals: ($2,120,780)
Estimated Project Funds Available: $15,059,220
Estimated Unfunded Eligible Improvements: $53,894,998
(1) Cost Estimate is Subject to Review and Approval
DATED: November 5, 2024 WEBB MUNICIPAL FINANCE, LLC
By: _______________________________
SPECIAL TAX CONSULTANT FOR
CITY OF CHINO
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
288
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 11 6
4. Proposed Development
Zone 1 is planned to contain approximately 6.68 net taxable acres within Tract Number 20446-1. Zone 1 is planned to be developed into 59 single-family detached units and is generally located northwest of Chino Corona Road and east of East Preserve Loop in the City of Chino. The proposed Zone 1 boundaries include a portion of the following Assessor Parcel Numbers: 1057-481-01-0000 and 1057-491-01-0000.
Zone 2 is planned to contain approximately 7.25 net taxable acres within Tract Number 20446. Zone 2 is planned to be developed into 55 single-family detached units and is generally located northwest of Chino Corona Road and east of East Preserve Loop in the City of Chino. The proposed Zone 2 boundaries include a portion of the following Assessor Parcel Numbers: 1057-481-02-0000 and 1057-481-03-0000.
The Boundary Map for CFD No. 2003-3 IA No. 11 is attached hereto as Appendix B (the “Boundary Map”). 289
5. R ate and Method of Apportionment
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 11 7
1. The Rate and Method of Apportionment allows each property owner within the proposed District to estimate the annual amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax for the District, established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method of Apportionment”). The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes and subject to the same penalties and provisions; however, the Special Tax may be collected at a different time or in a different manner if necessary for CFD No. 2003-3 IA No. 11 to meet its financial obligations and may covenant to foreclose on delinquent parcels as permitted by the Act.
2. All o
f the property located within CFD No. 2003-3 IA No. 11, unless exempted by law or by the Special Tax proposed for CFD No. 2003-3 IA No. 11, shall be taxed for the purpose of providing necessary facilities and services to serve the District. The Boundary Map for CFD No. 2003-3 IA No. 11 is attached hereto as Appendix B. P
ursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City Council, although the Special Tax may not be apportion ed o
n an ad valorem basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may choose to prepay in who le or in part the Special Tax A. The available method for so doing i s d
escribed in Sections G and H of the Rate and Method (“Prepayment of Special Tax A”). Special Tax B may not be prepaid.
Fo
r each year that any Bonds are outstanding, the Special Tax shall be levied on all Parcels in accordance with this Rate and Method of Apportionment. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse the CFD for uncollected Special Taxes and costs associated with the levy of such Special Taxes, but the Special Tax sh all not be levied after the 2068-2069 Fiscal Year.
3. Fo
r particulars as to the Rate and Method of Apportionment, see the attached and incorporated Appendix A.
It
is my opinion that the Rate and Method of Apportionment, described above and set forth in Appendix A , is fair and reasonable.
Thi
s Report has been prepared and consolidated by the Special Tax Consultant, Webb Municipal Finance, LLC, and is herewith submitted to the Board pursuant to the applicable provisions of the Mello -Roos Community Facilities Act of 1982.
D
ATED: November 5, 2024 WEBB MUNICIPAL FINANCE, LLC
B
y: _______________________________
SPECIAL TAX CONSULTANT FOR
CITY OF CHINO
SAN BERNARDINO COUNTY
STATE OF CALIFORNIA
290
APPENDIX A
Rate and Method of Apportionment
291
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2003-3
OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 11)
The following sets forth the Rate and Method of Apportionment for the levy and collection of Annual Special Tax A and Annual Special Tax B in Improvement Area No. 11 of the City of Chino (“City”) Community Facilities District No. 2003-3 (“CFD No. 2003-3”). An Annual Special Tax A and Annual Special Tax B shall be levied on and collected in Improvement Area No. 11 of CFD No. 2003- 3 each Fiscal Year, in an amount determined through the application of the Rate and Method of Apportionment described below. All of the real property within Improvement Area No. 11, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.
SECTION A
DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acquisition Agreement” means the Acquisition Agreement dated as of May 18, 2004 by and between the City and Chino Development Corporation, et al, as it may be amended. “Acre” or “Acreage” means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall be calculated by the City Engineer.
“Act” means the Mello -Roos Community Facilities Act of 1982 as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means any ordinary and necessary expenses allocable to the Special Tax A Requirement and to the Special Tax B Requirement which are incurred by the City on behalf of Improvement Area No. 11 related to the determination of the amount of the levy of Special Tax A and Special Tax B, the collection of Special Tax A and Special Tax B including the expenses of collecting delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of Improvement Area No. 11, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2003 -3 relating to Improvement Area No. 11.
“Administrator” means an official of the City, or designee thereof, responsible for, among other things, determining the annual amount of the levy and collection of the Special Tax A and Special Tax B.
“Agricultural Buffer Property” means all Assessor’s Parcels which have a restriction on development due to their location being within 100 feet of existing animal use pursuant to the “DEVELOPMENT PLAN, General Development Standards, Right-to-Farm, Development Standards” section of the Preserve Specific Plan approved on March 25, 2003. 292
“Annual Special Tax A” means for each Assessor’s Parcel, the Special Tax A actually levied in a given Fiscal Year on any Assessor’s Parcel.
“Annual Special Tax B” means for each Assessor’s Parcel, the Special Tax B actually levied in a given Fiscal Year on any Assessor’s Parcel.
“Approved Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property: (i) that are included in a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) that have not been issued a building permit on or before March 1st preceding the Fiscal Year in which the Special Tax A is being levied.
“Assessor’s Parcel” means a lot or parcel of land designated on an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number within the boundaries of Improvement Area No. 11. “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that number assigned to a lot or parcel of land by the County Assessor for purposes of identification.
“Assigned Annual Special Tax A” means the Special Tax A of that name described in Section D below.
“Backup Annual Special Tax A” means the Special Tax A of that name described in Section E below. “Bonds” means those bonds issued by or on behalf of CFD No. 2003-3 Improvement Area No. 11, or any refunding thereof, to which Special Tax A within Improvement Area No. 11 has been pledged. “Boundary Map” means a recorded map of the CFD No. 2003-3 which indicates the boundaries of Improvement Area No. 11 of CFD No. 2003-3.
“Building Square Footage” or “BSF” means the square footage of assessable internal living space, exclusive of garages or other structures not used as living space, as determined by reference to the building permit application for such Assessor’s Parcel and subject to verification by City Staff. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD No. 2003- 3” means Community Facilities District No. 2003 -3 Improvement Area No. 11 established by the City under the Act.
“City” means the City of Chino, or its designee.
“City Council” means the City Council of the City of Chino, acting as the legislative body of CFD No. 2003-3, or its designee.
293
"Consumer Price Index" or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside-San Bernardino-Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario.
“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property that: (i) are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) a building permit was issued on or before March 1st preceding the Fiscal Year in which the Special Tax A or Special Tax B is being levied.
“Exempt Property” means all Assessor’s Parcels designated as being exempt from both Special Tax A and Special Tax B as provided for in Section L.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period commencing July 1 of any year and ending the following June 30. “Improvement Area No. 11” means Improvement Area No. 11 of CFD No. 2003-3, as identified on the boundary map for CFD No. 2003-3 Improvement Area No. 11. “Land Use Type” means Residential Property, Multifamily Residential Property, or Non-Residential Property.
“Maximum Special Tax A” means for each Assessor’s Parcel of Taxable Property, the maximum Special Tax A, determined in accordance with Section C that can be levied in any Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Developed Property, the maximum amount of Special Tax B, determined in accordance with Section I that can be levied in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Residential Property” means all Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised of attached Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the Administrator.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for any type of non-residential use. “Partial Prepayment Amount” means the amount required to prepay a portion of the Special Tax A obligation for an Assessor’s Parcel, as described in Section H. 294
“Prepayment Amount” means the amount required to prepay the Special Tax A obligation in full for an Assessor’s Parcel, as described in Section G.
“Proportionately” means for Special Tax A that the ratio of the Annual Special Tax A levy to the applicable Assigned Annual Special Tax A is equal for all applicable Assessor’s Parcels. In the case of Special Tax B, means that the ratio of the Annual Special Tax B levy to the applicable Maximum Special Tax B is equal for all applicable Assessor’s Parcels. In case of Developed Property subject to the apportionment of the Annual Special Tax A under Step Four of Section F, “Proportionately” means that the quotient of (a) Annual Special Tax A less the Assigned Annual Special Tax A divided by (b) the Backup Annual Special Tax A less the Assigned Annual Special Tax A, is equal for all applicable Assessor’s Parcels.
“Provisional Undeveloped Property” means all Assessor’s Parcels of Taxable Property subject to Special Tax A that would otherwise be classified as Exempt Property pursuant to the provisions of Section L, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property within the applicable Zone below the required minimum Acreage set forth in Section L.
“Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units, which is not Multifamily Residential Property.
“Services” means services permitted under the Act including, without limitation, maintenance of parks, parkways and open space, flood and storm protection services the operation of storm drainage systems, and public safety services. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2003-3. “Special Tax A” means any of the special taxes authorized to be levied on Taxable Property within Improvement Area No. 11 by CFD No. 2003- 3 pursuant to the Act to fund the Special Tax A Requirement.
“Special Tax B” means the special tax authorized to be levied in each Fiscal Year on each Assessor's Parcel of Developed Property to fund the Special Tax B Requirement. “Special Tax A Requirement” means, subject to the Maximum Special Tax A, the amount required in any Fiscal Year to pay: (i) the debt service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences in such Fiscal Year, (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B), (iii) the costs associated with the release of funds from an escrow account, (iv) any amount required to establish or replenish any reserve funds established in association with the Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities or payment of fees authorized by CFD No. 2003 -3 by the levy on Developed Property of the Assigned Annual Special Tax A, as required by the Acquisition Agreement provided that the inclusion of such amount does not cause an increase in the levy of Special Tax A on Approved Property or Undeveloped Property as set forth in Step Two and Three of Section F, less (vi) any amount available to pay debt service or other periodic costs on the Bonds pursuant to any applicable fiscal agent agreement, or trust agreement. 295
P age 5
“Special Tax B Requirement” means, subject to the Maximum Special Tax B, that amount to be collected in any Fiscal Year to pay for Services as required to meet the needs of CFD No. 2003-3 in both the current Fiscal Year and the next Fiscal Year. The costs of Services to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B); less (iii) a credit for funds available to reduce the Annual Special Tax B levy, if any, as determined by the Administrator. Under no circumstances shall the Special Tax B Requirement include funds for Bonds.
“Taxable Property” means all Assessor’s Parcels within Improvement Area No. 11, which are not Exempt Property.
“Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not Developed Property, Approved Property or Provisional Undeveloped Property. “Unit” means any residential structure.
“Zone(s)” means Zone 1 or Zone 2 as identified below.
“Zone 1” means the specific area identified on the Boundary Map as Zone 1 of Improvement Area No. 11, consisting of Lots 1 through 59 of Tract 20446-1. “Zone 2” means the specific area identified on the Boundary Map as Zone 2 of Improvement Area No. 11, consisting of Lots 1 through 55 of Tract 20446.
SECTION B
CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2025-26, each Assessor’s Parcel within Improvement Area No. 11 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be classified as being within Zone 1 or Zone 2. If an Assessor’s Parcel of Approved Property, Undeveloped Property, or Provisional Undeveloped Property is located within more than one Zone, it shall be deemed to be entirely within the Zone in which the largest portion of its Acreage is located. In addition, each Assessor’s Parcel of Developed Property shall further be classified as Residential Property, Multifamily Residential Property, or Non-Residential Property.
SECTION C
MAXIMUM SPECIAL TAX A
296
1. Developed Property
The Maximum Special Tax A for each Assessor’s Parcel of Residential Property, Multifamily Residential Property, or Non-Residential Property in any Fiscal Year shall be the greater of (i) the Assigned Annual Special Tax A or (ii) the Backup Annual Special Tax A.
2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property The Maximum Special Tax A for each Assessor’s Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the Assigned Annual Special Tax A.
SECTION D
ASSIGNED ANNUAL SPECIAL TAX A
1. Developed Property
Each Fiscal Year, each Assessor’s Parcel of Residential Property, Multifamily Residential Property, or Non-Residential Property shall be subject to an Assigned Annual Special Tax A.
The Assigned Annual Special Tax A applicable to an Assessor's Parcel of Developed Property shall be determined using the Tables below.
TABLE 1
ASSIGNED ANNUAL SPECIAL TAX A RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1
Land Use Type Building Square Footage Rate
Residential Property Less than 2,800 $8,710 per Unit
Residential Property 2,800 – 3,000 $9,035 per Unit
Residential Property 3,001 – 3,200 $9,360 per Unit
Residential Property Greater than 3,200 $9,685 per Unit Multifamily Residential Property N/A $80,952 per Acre
Non-Residential Property N/A $80,952 per Acre
297
TABLE 2
ASSIGNED ANNUAL SPECIAL TAX A RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 2
Land Use Type Building Square Footage Rate
Residential Property Less than 2,700 $8,620 per Unit
Residential Property 2,700 – 2,900 $8,900 per Unit
Residential Property 2,901 – 3,100 $9,180 per Unit
Residential Property 3,101 – 3,300 $9,460 per Unit
Residential Property 3,301 – 3,500 $9,740 per Unit
Residential Property 3,501 – 3,700 $10,020 per Unit
Residential Property Greater than 3,700 $10,300 per Unit Multifamily Residential Property N/A $75,283 per Acre
Non-Residential Property N/A $75,283 per Acre
2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property Each Fiscal Year, each Assessor’s Parcel of Approved Property, Undeveloped Property, and Provisional Undeveloped Property shall be subject to an Assigned Annual Special Tax A. The Assigned Annual Special Tax A rate for an Assessor’s Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property shall be determined pursuant to Table 3 below:
TABLE 3
ASSIGNED ANNUAL SPECIAL TAX A RATES
FOR APPROVED PROPERTY, UNDEVELOPED PROPERTY,
AND PROVISIONAL UNDEVELOPED PROPERTY
Zone Minimum Taxable Acreage Rate
Zone 1 6.68 $80,952 per Acre
Zone 2 7.25 $75,283 per Acre
If an Assessor’s Parcel of Approved Property or Undeveloped Property includes an area that would be classified as Agricultural Buffer Property, the Acreage of the Assessor’s Parcel for purposes of levying the Assigned Annual Special Tax A shall exclude the Acreage of the area that would be classified as Agricultural Buffer Property.
SECTION E
BACKUP ANNUAL SPECIAL TAX A
For each Zone, at the time a Final Map is recorded, the City shall determine which Zone the Final Map area lies within and the Backup Annual Special Tax A for all Assessor’s Parcels classified or reasonably expected to be classified as Residential Property within such Final Map area shall be determined by multiplying the Maximum Special Tax A rate for Undeveloped Property for the applicable Zone by the total Acreage of Taxable Property, excluding the Provisional Undeveloped 298
Property Acreage area, or Multifamily Residential Property and/or Non- Residential Property Acreage area if any, in such Final Map area and any Acreage reasonably expected to be classified as Exempt Property, and dividing such amount by the total number of such Assessor’s Parcels of Residential Property. In no circumstance shall the total Acreage of Taxable Property in each Zone be less than the acreage set forth in Table 3.
If the Final Map area described in the preceding paragraph lies within more than one Zone, the Backup Special Tax for Parcels of Residential Property or Parcels expected to be classified as Residential Property shall be determined by multiplying the Maximum Special Tax A rate for Undeveloped Property for the applicable Zone in which the majority of each Assessor Parcel lies by the total Acreage of each Assessor Parcel.
The Backup Annual Special Tax A for Multifamily Residential Property shall be its Annual Assigned Special Tax A Rate.
Notwithstanding the foregoing, if Assessor’s Parcels which are classified or to be classified as Residential Property or Multifamily Residential Property are subsequently changed by recordation of a lot line adjustment, Final Map amendment, new Final Map or similar instrument, then the Backup Annual Special Tax A shall be recalculated within the area that has been changed to equal the amount of Backup Annual Special Tax A that would have been generated if such change did not take place.
SECTION F
METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX A
Commencing Fiscal Year 2025-26 and for each subsequent Fiscal Year, the City Council shall levy Annual Special Tax A in accordance with the following steps:
Step One: The Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Annual Special Tax A rates in Table 1 and Table 2 to satisfy the Special Tax A Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the applicable Assigned Annual Special Tax A to satisfy the Special Tax A Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, the Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Assigned Annual Special Tax A for Undeveloped Property applicable to each such Assessor's Parcel as needed to satisfy the Special Tax A Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, then the Annual Special Tax A on each Assessor's Parcel of Developed Property for which the Maximum Special Tax A is the 299
Backup Annual Special Tax A shall be increased Proportionately from the Assigned Annual Special Tax A up to 100% of the Backup Annual Special Tax A as needed to satisfy the Special Tax A Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% of the Assigned Annual Special Tax A applicable to each such Assessor's Parcel as needed to satisfy the Special Tax A Requirement.
SECTION G
PREPAYMENT OF ANNUAL SPECIAL TAX A
The following definition applies to this Section G:
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax A which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Tax A.
Prepayment:
The Special Tax A obligation of an Assessor's Parcel of Developed Property, an Assessor's Parcel of Approved Property, an Assessor's Parcel of Undeveloped Property, and an Assessor’s Parcel of Provisional Undeveloped Property may be prepaid in full, provided that there are no delinquent Special Tax A, penalties, or interest charges outstanding with respect to such Assessor’s Parcel at the time the Special Tax A obligation would be prepaid. The Prepayment Amount for an Assessor’s Parcel eligible for prepayment shall be determined as described below.
An owner of an Assessor’s Parcel intending to prepay the Special Tax A obligation shall provide the City with written notice of intent to prepay, and within five (5) days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area No. 11 in calculating the proper amount of a prepayment.
Within fifteen (15) days of receipt of such non-refundable deposit, the City shall notify such owner of the prepayment amount of such Assessor’s Parcel.
The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below):
Payoff Amount
plus Administrative Fee
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:
1. For an Assessor’s Parcel of Developed Property and Provisional Undeveloped Property, compute the Assigned Annual Special Tax A applicable to the Assessor’s Parcel. For an Assessor’s Parcel of Approved 300
Property, compute the Assigned Annual Special Tax A as though it was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor’s Parcel. For an Assessor’s Parcel of Undeveloped Property compute the Assigned Annual Special Tax A as though it was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor’s Parcel.
For each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property to be prepaid, compute the present value of the remaining Annual Assigned Special Tax A payments using a discount rate that is equal to the weighted average interest rate on the Outstanding Bonds and the remaining term of the Outstanding Bonds determined by a Financial Advisor selected by the City.
For any prepayment that occurs prior to the first issuance of Bonds, the discount rate used in this calculation shall be 5.5% and the term shall be the period in which the Special Tax A may be levied as provided in Section K less ten years. This is the “Payoff Amount.”
2. For each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property to be prepaid, divide the Assigned Annual Special Tax A computed pursuant to the first paragraph in paragraph 1 of this Section G for such Assessor's Parcel by the sum of the estimated Assigned Annual Special Tax applicable to all Assessor’s Parcels of Taxable Property at build out, as reasonably determined by the City.
3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the “Bond Redemption Amount”.
4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the “Redemption Premium.”
5. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds.
6. Determine the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium in State and Local Government Series Treasury Obligations until the earliest call date for the Outstanding Bonds.
7. Subtract the amount computed pursuant to paragraph 6 from the amount computed pursuant to paragraph 5. This difference is the “Defeasance Cost.”
301