Agenda packet — Chino City Council, June 3, 2025 (part 2 of 3)

establishment and maintenance of reports, records, databases, and files; ensures the proper documentation of operations and activities.
 Reviews, approves, and conduct field inspections to verify Water Quality Management Plans (WQMP).  Monitors activities of the work unit; identifies opportunities for improving service delivery and procedures; provides recommendations concerning process changes; reviews with appropriate management staff; implements improvements.
 Manages the operations of the Household Hazardous Waste Program collection facility; ensure s the facility is staffed with trained personnel and personnel follow regulations and operating procedures; conducts public education activities; attends related meetings and prepares related reports.  Coordinates assigned services and operations with other divisions including wastewater planning, sewer overflow incidents, public works’ engineering projects related to environmental compliance; collaborates with various outside agencies.
 Oversees the City’s General Waste Discharge Requirement (WDR) Permit program.  Conducts a variety of program and functional studies and investigations; recommends modifications to assigned programs, policies, and procedures; recommends methods to control or treat storm water and wastewater contamination; evaluate s alternative treatment methods to comply with water and wastewater regulations; plans, estimates costs, and conducts investigations of illicit discharge related to wastewater quality control.
 Applies for and administers various state and regional grants to receive funding for environmental program initiatives.
 Participates in annual budget preparation; identi fies resource needs; prepares detailed cost estimates with appropriate justifications; monitors, justifies, and reports expenditures.  Answers questions and provides information to the public; investigates and responds to complaints and inquiries from citi zens, other departments, and outside agencies; recommends corrective actions to resolve issues.
 Represents the City in meetings with members of other public and private organizations, community groups, contractors, developers, and the public.
 Ensures staff observe and comply with all City and mandated safety rules, regulations, and protocols.  Performs related duties as assigned.

QUALIFICATIONS

Knowledge of:

 Principles and practices of employee supervision, including work planning, assignment, review and evaluation, discipline, and the training of staff in work procedures.  Principles and practices of leadership.
 Principles and techniques for working with groups and fostering effective team interaction to ensure teamwork is conducted smoothly.
 Basic principles and practices of budget administration and monitoring.  Record keeping and filing systems and methods.
 Methods of preparing and processing various records, reports, forms, and other documents specific to assigned program, department, or division.
 Applicable federal, state, and local laws, rules, regulations, and procedures relevant to assigned areas of responsibility including NPDES, RCRA, Clean Water Act, and Household Hazardous Waste regulations.
288
Environmental Compliance Supervisor

Page 3 of 4 ends

 Operations, services, and activities related to environmental compliance, household hazardous waste, and storm water inspection programs
 Operational characteristics of maintenance and construction equipment and tools used in work activities.
 Proper and safe operation of equipment and machinery.  Mathematical principles.
 Principles, practices, methods, techniques, and regulations governing City and mandated safety rules, regulations, and protocols.
 Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
 The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination, including computers and software programs relevant to work performed.

Ability to:

 Assist in developing and implementing goals, objectives, practices, policies, procedures, and work standards.
 Select and supervise staff, provide training and development opportunities, ensure work is performed effectively, and evaluate performance in an objective and positive manner.  Interpret, apply, explain, and ensure compliance with federal, state, and local policies, procedures, laws, and regulations.
 Identify problems, research, and analyze relevant information, and develop and present recommendations and justification for solutions.
 Effectively represent the City to outside individuals and agencies to accomplish the goals and objectives of the unit.
 Research, analyze, and evaluate new service delivery methods, procedures, and techniques.  Make decisions regarding operational and personnel functions.  Analyze unusual situations and resolve them through application of supervisory principles and practices.
 Develop comprehensive plans to meet future City needs and services.  Interpret financial statements and cost accounting reports.  Respond to complaints or inquiries from citizens, staff, and outside organizations.  Prepare clear, effective, and accurate reports, correspondence, and other written materials.  Maintain accurate logs, records, databases, and written records of work performed.  Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications relevant to work performed, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Use tact, initiative, prudence, and independent judgment within general policy and procedural guidelines.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

289
Environmental Compliance Supervisor

Page 4 of 4 ends

Education:
 Equivalent to completion of the twelfth (12th) grade, supplemented by college level course work or an associate degree from an accredited college or university in environmental issues or a related field.

Experience:
 Five (5) years of increasingly responsible experience in compliance with environmental regulations and environmental inspections, including one (1) year of lead or supervisory experience.

Licenses and Certifications:

 Possession of a valid California Class “C” Driver’s License, to be maintained throughout employment.  Possession of, or successful acquisition within 12 months of employment, a valid California Water Environment Association (CWEA) Grade III Environmental Compliance Inspector (ECI) Certificate, to be maintained throughout employment.

PHYSICAL DEMANDS

When working within an office environment, must possess mobility to work in a standard office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen; and hearing and speech to communicate in person and over the telephone; ability to stand and walk between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this clas sification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information.

When working in the field environment, must possess mobility to work in changing site conditions; possess the strength, stamina, an d mobility to perform light to medium physical work; to sit, stand, and walk on level, uneven, or slippery surfaces; to reach, twist, turn, kneel, and bend, to climb and descend ladders; and to operate a motor vehicle and visit various sites; vision to ins pect site conditions and work in progress.

The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards, with exposure to hazardous materials in some site locations. Employees must possess the ability to lift, carry, push, and pull materials and objects averaging a weight of 40 pounds.

ENVIRONMENTAL CONDITIONS

Employees work primarily in an office environment with moderate noise levels and controlled temperature conditions and periodically work in a field environment where they are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, confining workspace, chemicals, mechanical and/or electrical hazards, and hazardous physical substances and fumes. Employees may interact with upset staff and/or public and private representatives and contractors in interpreting and enforcing departmental policies and procedures.

290

MEMORANDUM

CITY OF CHINO

HUMAN RESOURCES DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: TERRY DOYLE, DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT

SUBJECT
..titl e
Approval to Reclassify the Full-Time Water and Environmental Manager Position to a Full -Time Engineering Manager Position (Water Resources).
..end

RECOMMENDATION
Adopt Resolution No. 2025 -015 to reclassify the full -time Water and Environmental Manager position to a full-time Engineering Manager position assigned to Water Resources in the Public Works Department.
..body

FISCAL IMPACT
There will be an increase of $ 23,556 to the Enterprise Funds in the Public Works budget for FY25-26. There are sufficient funds available for this request.

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
 Superior Customer Service
 Responsible Long-Range Planning
 Exemplary Leadership

Revenue: Click or tap here to enter text.

Expenditure: 5407370/5207310/5307330/5207300-
41000
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 291
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: APPROVAL TO RECLASSIFY THE FULL -TIME WATER AND ENVIRONMENTAL

MANAGER POSITION TO A FULL -TIME ENGINEERING MANAGER POSITION (WATER RESOURCES).

PAGE: 2

BACKGROUND
The Human Resources/Risk Management Department routinely collaborates with departments to establish, revise, and delete job classifications. After an assessment of current operations in the Public Works Department, staff have identified the need for an En gineering Manager position to oversee water resources and water engineering projects.

The Public Works Department is responsible for water resources and water engineering services. As the number of water resources and water engineering projects continues to grow, state mandates and regulatory requirements have also increased. To address this, staff proposes reclassifying the vacant Water and Environmental Manager position to an Engineering Manager position. The previous Water and Environmental Manager reti red in September 2024, and it has since been determined that this position no longer aligns with the department’s organizational needs.

ISSUES/ANALYSIS
Based on feedback from the Public Works Department, the job description for the Engineering Manager position has been revised to enhance role clarity and better define responsibilities for Capital Projects and Water Resources . Additionally, the Engineering Manager classification must be added to the salary schedule to comply with Title 2, Section 570.5 o f the California Code of Regulations.

This reclassification is an important step to ensure the City has job descriptions that accurately reflect the duties that positions are performing and is better positioned to meet future needs.

This classification will is recommended to be placed in the unrepresented management group.

Attachments: 1 - Resolution No. 2025-015
2 - Engineering Manager Job Classification

292
RESOLUTION NO. 2025-015

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,
CALIFORNIA, AMENDING CERTAIN PORTIONS OF RESOLUTION NO. 2024-034 OF THE CITY’S CLASSIFICATION AND SALARY SCHEDULE

TO APPROVE THE JOB CLASSIFICATION FOR ENGINEERING

MANAGER

WHEREAS, the City Council of the City of Chino has the authority to create and maintain position classifications; and
WHEREAS, greater flexibility is desired to meet changing conditions and better serve general organizational needs; and
WHEREAS, the need to reclassify the Water and Environmental Manager position to an Engineering Manager position has been identified; and

NOW, THEREFORE, BE IT RESOLVED that Resolution No. 2024 -034 of the City’s Classification and Salary Schedule is revised as follows:

Remove:
 One (1) Full-Time Water and Environmental Manager

Add:
 One (1) Full-Time Engineering Manager

Unrepresented Management Classification (monthly salary amounts) Base Midpoint Maximum
Engineering Manager $10,777 $12,394 $14,253

APPROVED AND ADOPTED THIS 3rd day of June, 2025.

EUNICE M. ULLOA, MAYOR

ATTEST:

NATALIE GONZAGA

CITY CLERK
293
RESOLUTION NO. 2025-015
PAGE 2

State of California )
County of San Bernardino ) §
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 at a regular meeting held on the 3rd day of June 2025 by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK
294
June 2025
FLSA: Exempt

ENGINEERING MANAGER

DEFINITION

Under general direction, plans, organizes, oversees, coordinates, and manages the staff and operations of the Capital Improvement Program or the Water Resources Program within the Engineering Division of Public Works; participates in the development of policies and department strategies for program operations; ensures effective utilization of division resources to enhance organizational productivity; provides highly responsible and complex support to the Director of Public Works in specialized areas; and performs related duties as assigned.

SUPERVISION RECEIVED AND EXERCISED

Receives general direction from the Director of Public Works . Exercises direct supervision over supervisory, professional, para-professional, technical, and administrative support staff.

CLASS CHARACTERISTICS

This is a management classification responsible for managing an assigned division of Capital Improvement Projects or Water Resources Programs in the Public Works Department. The incumbent is responsible for developing and implementing policies and procedures for assigned division, including short- and long-term planning, budget administration and reporting, and coordination of key programs/projects with other City divisions and departments and external agencies. Positions apply advanced management principles and strategic thinking to decisions that impact the organization as a whole and the public being served. Positions generally serve as advisors and contributors to executive management on policies, procedures, and major City initiatives.

EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so qualified employees can perform the essential functions of the job.

 Participates in the development and implementation of goals, objectives, policies, and priorities for the division; continuously monitors the efficiency and effectiveness of assigned programs, service delivery methods, and procedures; assesses and monitors workload, administrative and support systems, and internal reporting relationships; identifies opportunities and makes recommendations for improvement.  Participates in the development, administration, and oversight of division budget; determines funding needed for staffing, equipment, materials, and supplies; ensures compliance with budgeted funding.  Participates in the selection of, trains, motivates, and evaluates assigned personnel; works with employees to correct deficiencies; recommends and implements discipline and termination procedures.  Develops and manages requests for proposals for professional and/or contracted services; prepares scope of work and any technical specifications; evaluates proposals and recommends award; negotiates contracts; administers contracts to ensure compliance with City specifications and service quality.  Prepares and evaluates requests for proposals and negotiates contracts.  Prepares and presents staff and agenda reports and other necessary correspondence related to assigned activities and services; presents reports to various commissions, committees, and boards. 295
Engineering Manager

Page 2 of 5 ends

 Attends and participates in professional group meetings; stays abreast of new trends and innovations in capital improvement program engineering; researches emerging products and enhancements and their applicability to City needs.
 Conducts a variety of organizational and operational studies and investigations; recommends modifications to assigned programs, policies, and procedures, as appropriate.  Monitors changes in regulations and technology that may affect operations; implements policy an d procedural changes after approval.
 Serves as a liaison for assigned functions with other City departments, divisions, and outside agencies; provides staff support to commissions, committees, and task forces, as necessary.  Receives, investigates, and responds to difficult and sensitive problems and complaints in a professional manner; identifies and reports findings and takes necessary corrective action.  Directs the establishment and maintenance of working and official division files.  Ensures staff compliance with City and mandated safety rules, regulations, and protocols.  Performs related duties as assigned.

When Assigned to Capital Improvement Programs:

 Plans, manages, and oversees the daily functions, operations, and activities of the Capital Improvement Program, including public works engineering, construction, and financing.  Coordinates project inspections and drafts ordinances according to general instruction.  Supervises and participates in the review of plans; evaluate s compliance with laws , ordinances, and acceptable engineering standards ; recommends corrections or improvements; supervise s the preparation of legal descriptions and deeds for easements and rights-of-way.  Provides technical assistance to other departments and City personnel; a ssists in the design and construction of municipal works facilities, including streets, water, sewer, and storm drainage systems.

When Assigned to Water Resources Programs:

 Plans, manages, and oversees the daily functions, operations, and activities of the Water Resources Program(s) related to groundwater, recycled water management plans, including applicable hydraulic analyses; models, monitors, permits, and ensure compliance of water resource activities.  Manages and directs a wide variety of planning and engineering projects designed to assist the City in planning for the development of water resources to meet future needs and requirements; oversees development and administ ration of various plans; represents the City in planning with regional and state agencies.
 Interprets engineering plans, plat maps, field reports , and legal descriptions for GIS database development efforts; creates and maintains GIS database , metadata, and data dictionary to support enterprise GIS efforts for the City.
 Oversees water use efficiency programs and legislative initiatives; monitors and tracks regulations, ordinances, and practices that impact the City.
 Oversees Environmental Services and gives general direction to staff for compliance with the City, state, and federal regulations related to recycled water, cross-connection and industrial waste.  Manages and implements the City’s water rights.

296
Engineering Manager

Page 3 of 5 ends

QUALIFICATIONS

Knowledge of:

 Administrative principles and practices, including goal setting, program development, implementation, and evaluation, and project management.
 Principles and practices of budget development and administration.  Principles and practices of employee supervision, including work planning, assignment, review and evaluation, and the training of staff in work procedures.  Principles and practices of leadership.
 Principles and techniques for working with groups and fostering effective team intera ction to ensure teamwork is conducted smoothly.
 Applicable federal, state, and local laws, regulatory codes, ordinances, and procedures relevant to assigned areas of responsibility.
 Organization and management practices as applied to the development, analysis, and evaluation of programs, policies, and operational needs of the assigned area of responsibility.  Principles and practices of contract administration and management.  Engineering principles, methods, and practices as applied to public works, inc luding planning , development, design, and construction.
 Techniques for reviewing designs, plans, specifications, estimates, reports, and recommendations related to public works projects.
 Cost accounting.
 Budgetary, work planning, and time/material cost estimation techniques.  Techniques for effectively representing the City in contacts with governmental agencies, community groups, and various business, professional, educational, regulatory, and legislative organizations.  Recent and on -going developments, cur rent literature, and sources of information related to the operations of the assigned division.
 Methods and techniques of preparing technical and administrative reports, and general business correspondence.
 City and mandated safety rules, regulations, and protocols.  Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
 The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination, including computers and software programs relevant to work performed.

Ability to:

 Plan, organize, oversee, and manage the staff and operations of the Capital Improvement Program and Water Resources program within the Engineering Division.  Develop and implement goals, objectives, practices, policies, procedures, and work standards.  Prepare and administer large and com plex budgets; allocate limited resources in a cost -effective manner.
 Provide administrative, management, and professional leadership for the division.  Select and supervise staff, provide training and development opportunities, ensure work is performed effectively, and evaluate performance in an objective and positive manner.  Interpret, apply, explain, and ensure compliance with Federal, State, and local policies, procedures, laws, and regulations.
 Evaluate and develop improvements in operations, procedures, policies, or methods.  Research, prepare, and present technical engineering reports.  Review and check complex engineering designs, computations, plans, and studies. 297
Engineering Manager

Page 4 of 5 ends

 Plan, direct, and coordinate public works engineering programs and manage a section of the Public Works Department.
 Operate programs within allocated amounts.
 Prepare clear and concise reports, correspondence, policies, procedures, and other written materials.  Research, analyze, and evaluate new service delivery methods, procedures, and techniques.  Analyze, interpret, summarize, and present technical information and data in an effective manner.  Conduct complex research projects, evaluate alternatives, make sound recommendations, and prepare effective technical staff reports.
 Effectively represent the division and the City in meetings with governmental agencies, community groups, and various businesses, professional, and regulatory organizations, and in meetings with individuals.
 Direct the establishment and maintenance of a variety of filing, record-keeping, and tracking systems.  Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.  Effectively use computer systems, software applications relevant to work performed, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Use tact, initiative, prudence, and independent judgment within general policy and procedural guidelines.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Education
 Equivalent to a b achelor’s degree from an accredited college or university in civil engineering , mechanical engineering, or a related field.

Experience:
 Five (5) years of increasingly responsible, diversified experience, including two (2) years of experience in a lead or supervisory capacity serving in a public sector agency.

Licenses and Certifications:

 Possession of a valid California Driver’s License, to be maintained throughout employment.  Possession of a valid Certificate of Registration as a Professional Engineer in the State of California, to be maintained throughout employment.

PHYSICAL DEMANDS

Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen; and hearing and speech to communicate in person and over the telephone. This is primarily a sedentary office classification although st anding in work areas and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment.

Positions in this classification occasiona lly bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects up to 10 pounds.

298
Engineering Manager

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ENVIRONMENTAL CONDITIONS

When assigned to an office environment, must possess mobility to work in a standard office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen; and hearing and speech to communicate in person and over the telephone; ability to stand and walk between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information.

When assigned to field inspection, must possess mobility to work in changing site conditions; possess the strength, stamina, and mobility to perform light to medium physical work; to sit, stand, and walk on level, uneven, or slippery surfaces; to reach, twist, turn, kneel, and bend, to climb and descend ladders; and to operate a motor vehicle and visit various Agency sites; vision to inspect site condit ions and work in progress. The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards, with exposure to hazardous materials in some site locations. Employees must possess the ability to lift, carry, push, and pull materials and objects averaging a weight of 40 pounds, or heavier weights, in all cases with the use of proper equipment and/or assistance from other staff.

WORKING CONDITIONS

City employees are expected to work overtime, weekends, evenings, and h olidays as required to accommodate the City’s needs, in addition to responding as a Disaster Services Emergency Worker.

299

MEMORANDUM

CITY OF CHINO

HUMAN RESOURCES DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: TERRY DOYLE, DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT

SUBJECT
..titl e
Approve Three Part-Time Police Helicopter Pilot Positions and the A ssociated Job Classification.
..end

RECOMMENDATION
Adopt Resolution No. 2025-016 amending the Classification and Compensation Plan to approve the job classification for Helicopter Pilot and adding three part -time Helicopter Pilot positions to the Police Department.
..body

FISCAL IMPACT
Funding for these positions will be provided by existing part-time salary savings in the FY2 024- 25 Budget. If funds are needed for the FY2025 -26 budget, a transfer will be processed from existing part-time salary to the air support unit, resulting in no net 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:
 Financial Stability
 Responsible Long-Range Planning
 Exemplary Leadership
 Effective Technology

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. 300
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: APPROVE THREE PART -TIME POLICE HELICOPTER PILOT POSITIONS AND THE ASSOCIATED JOB CLASSIFICATION.

PAGE: 2

BACKGROUND
In November of 2024, the City Council approved the creation of the Chino Police Department’s Air Support Unit, which included the purchase of a police helicopter . To operate the helicopter, the Police Department will be hiring three part -time Helicopter Pilots. Before staff can recruit to fill these positions, a job classification must be established for Helicopter Pilot, which requires the City Council’s approval.

ISSUES/ANALYSIS
Establishing a Helicopter Pi lot classification allows the Police Department to cost -effectively recruit highly experienced helicopter pilots to operate the City’s police helicopter, eliminating the need to train a Police Officer for this specialized role. The cost to train a Police O fficer to obtain a commercial helicopter pilot can exceed $75,000.

Southern California is unique in having a large number of agencies who operate law enforcement helicopters . This creates an opportunity for the City of Chino to recruit highly experienced p ilots in the area with prior law enforcement experience . By drawing on this experience of current and retired police pilots , the City will further avoid significant training costs. Having more than one part -time pilot will also allow the Police Department to account for needed time off while minimizing the impact to air support operations.

Although the Police Department does not expect regular air support operations to begin until early 2026, there is an immediate need to recruit for the position in preparation for retrieving the helicopter in August and flying it to Carlsbad for outfitting. As part of the helicopter purchase, the Police Department also has training spots to attend the Bell Factory school where the pilots will receive instruction in Bell helicopters including system operations, basic maintenance , and emergency procedures. This training should occur prior to picking up the helicopter in August.

Funds for the current fiscal year, if needed, would be paid from existing part -time salary savings in the Police Department. Funds for FY25 -26 will be included in the Air Support Budget and will provide funding for six months of operations at $62,000. Any additional funding needed will be transferred from existing part-time positions, resulting in no net increase in cost for FY2025-26.

Attachments: 1 - Resolution No. 2025-016
2 - Helicopter Pilot Job Classification

301

RESOLUTION NO. 2025-016

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,

CALIFORNIA, AMENDING CERTAIN PORTIONS OF THE RESOLUTION NO. 2024 -034 OF THE CITY’S CLASSIFICATION AND SALARY

SCHEDULE TO APPROVE THE JOB CLASSIFICATION FOR

HELICOPTER PILOT

WHEREAS, the City Council of the City of Chino has the authority to create and maintain position classifications; and

WHEREAS, in November of 2024 the City Council authorized the creation of an Air Support Unit; and
WHEREAS, in order to operate a police helicopter, staff has identified the need to provide specially trained personnel to safely operate the police helicopter; and WHEREAS, it is cost effective to utilize part-time staff positions to provide a cadre of trained helicopter pilots to operate the helicopter; and
WHEREAS, the Helicopter Pilot is a new classification that will safely operate the City’s police helicopter; and

NOW, THEREFORE, BE IT RESOLVED that Resolution No. 2024 -034 of the City’s Classification and Salary Schedule is revised as follows:

Add:
 Helicopter Pilot

Part-Time Classification (hourly amounts)
Step A Step B Step C Step D Step E
Helicopter Pilot $49.36 $51.83 $54.42 $57.14 $60.00

APPROVED AND ADOPTED THIS 3rd day of June, 2025.

EUNICE M. ULLOA, MAYOR

ATTEST:

NATALIE GONZAGA

CITY CLERK
302
RESOLUTION NO. 2025-016
PAGE 2

State of California )
County of San Bernardino ) §
City of Chino )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK
303
June 2025
FLSA: Non-Exempt

HELICOPTER PILOT

DEFINITION

Under general supervision, safely operates the Police Department’s helicopter during patrol and special mission flights under both day and night visual flight rules; conducts both pre- and post-flight inspections of the aircraft , along with minor maintenance consistent with manufacturer and FAA re gulations; and performs related duties as assigned.

SUPERVISION RECEIVED AND EXERCISED

Receives general supervision from the Air Support Unit Supervisor. Exercises no direct supervision over staff.

CLASS CHARACTERISTICS

This journey -level classification is responsible for independently piloting a helicopter for the Police Department’s Air Support Unit . Positions at this level exercise judgment and initiative in their assigned tasks, receive only occasional instruction or assistance as new or unusual situations arise, and are fully aware of the operating procedures and policies of the work unit. The duties and responsibilities of this class are governed by Federal Aviation Administration (FAA) Rules and Regulations, Departmental policy, and City policy. This work requires initiative and sound judgement in the flight operation of a Police Helicopter in support of ground units.

EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify , change, or rescind the work assignments of different positions and to make reasonable accommodations so qualified employees can perform the essential functions of the job.

 Safely operates the Police Department helicopter and other related equipment , including specialized law enforcement equipment, in accordance with Federal Aviation Administration (FAA) guidelines.  Maintains accurate flight records and logbooks.
 Collaborates effectively with other pilots, tactical flight officers, supervision, depart ment staff, and outside contractors and vendors.
 Maintains knowledge and awareness of FAA regulations, Aircraft Operating Manuals, Safety Management Systems, and other regulations concerning the safe operation of department aircraft.  Maintains current qualifications and proficiency in helicopter operations.  Maintains day and night currency on the police department helicopter.  Conducts minor maintenance on police helicopter pursuant to FAA regulation and manufacturer guidelines.
 Performs mathematical calculations required for aircraft operations.  Conducts law enforcement aerial patrol operations in a designated area of the City, or regional area, as assigned in a helicopter aircraft.
 Performs pre-flight and post-flight inspections of helicopter and associated equipment and systems in accordance with FAA regulations to ensure safe operations. 304
Helicopter Pilot

Page 2 of 3 ends

 Flies routine and emergency assignments such as law enforcement and administrative flights.  Conducts inspections of helicopter; tracks helicopter supplies, equipment, tools, and aircraft parts.  Observes and complies with all City and mandated safety rules, regulations, and protocols.  Performs related duties as assigned.

QUALIFICATIONS

Knowledge of:

 Federal Aviation Administration (FAA) regulations regarding the operation of rotorcraft under Part 91, as well as operations under Public Aircraft regulations.  Helicopter flight control systems and operations, including the operation of turbine engines.  Airspace, weather, terrain, flight planning, crew resource management, aeronautical decision making, flying conditions, and safety management.
 Safe use and operations of helicopters and related equipment; helicopter emergency procedures.  Helicopter maintenance requirements, record keeping, and scheduling procedures.  Required FAA reporting forms and completion and forwarding procedures.  The operation and maintenance of rotary -wing aircraft, including unique capabilities, mechanical features, and maintenance requirements.
 Law enforcement aerial pa trol procedures, surveillance techniques, tactics , and procedures unique to municipal police departments.
 Applicable federal, state, and local laws, codes, and regulations as well as industry standards and best practices pertinent to the assigned area of responsibility.  City and mandated safety rules, regulations, and protocols.  Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
 The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
 Modern equipment and communication tools used for business functions and program, project, and task coordination, including computers and software programs relevant to work performed.

Ability to:

 Safely pilot a helicopter and perform the duties of Pilot in Com mander during all phases of flight in support of the law enforcement mission , in accordance with federal, state, and local aviation regulations, policies, and procedures.
 Learn and follow department policy, practices, and procedures.  Work a variety of shifts depending on the needs of the Air Support Unit and to respond to the City in cases of emergency.
 Properly utilize all safety equipment.
 Meet the physical requirements of the position including any aircraft related requirements.  Recognize potential mechanical hazards.
 Manage helicopter ground activities safely, and direct others in the safe operations around helicopters.  Perform under stressful and adverse conditions.
 Perform mechanical skills necessary to complete pilot daily inspections and request appropriate action to correct problems.
 Make correct and sound decisions on helicopter use in practical applications.  Operate a helicopter under hazardous conditions.
 Organize work, set priorities, meet critical deadlines, and follow-up on assignments. 305
Helicopter Pilot

Page 3 of 3 ends

 Effectively use computer systems, software applications relevant to work performed, and modern business equipment to perform a variety of work tasks.
 Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
 Use tact, initiative, prudence, and independent judgment within general policy and procedural guidelines.
 Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience:

Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Education:
 Equivalent to completion of the twelfth (12th) grade.

Experience:
 One thousand (1,000) Hours of Pilot in Command time in rotorcraft; and five hundred (500) Hours of Pilot in Command time in turbine powered aircraft.

Licenses and Certifications:

 Possession of a valid California Driver’s License, to be maintained throughout employment.  Possession of a valid F ederal Aviation Administration (F AA) Commercial Pilot Certificate with Rotorcraft Rating, to be maintained throughout employment.  Possession of a valid FAA Class II Medical Certificate, to be maintained throughout employment.

PHYSICAL DEMANDS

Must possess mobility to operate a helicopter; strength, stamina, and mobility to perform medium to heavy physical work; to sit, stand, and walk on level, uneven, or slippery surfaces; frequently reach, twist, turn, kneel, bend, stoop, squat, crouch, climb and descend ladders; possible entry into con fined spaces to use confined entry equipment; grasp and make repetitive hand movement in the performance of daily duties; to operate varied hand and power tools and construction equipment, and to operate a motor vehicle and visit various City sites; and vi sion to inspect and operate equipment. The job involves fieldwork requiring frequent walking in operational areas to identify problems or hazards. Finger dexterity is needed to operate and repair tools and equipment. Employees must possess the ability to l ift, carry, push, and pull materials and objects averaging a weight of 50 pounds or heavier weights, in all cases with the use of proper equipment and/or assistance from other staff.

ENVIRONMENTAL CONDITIONS

Employees work in side of a helicopter and are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, vibration, confining workspace, mechanical and/or electrical hazards, hazardous physical substances and fumes, smoke, vapors, dust, chemicals, and air contaminants. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing divisional policies and procedures.

WORKING CONDITIONS

Work is subject to rotating shifts, on-call, and weekend assignments. 306

MEMORANDUM

CITY OF CHINO

COMMUNITY SERVICES, PARKS & RECREATION DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: SILVIA AVALOS, DIRECTOR OF COMMUNITY SERVICES, PARKS &

RECREATION

SUBJECT
..titl e
Notice of Completion – Chino Rancho Park Development Project (PK200/G8201/G8241). ..end

RECOMMENDATION
1) Accept the Chino Rancho Park Development Project (PK200/G8201/G8241) completed by Act 1 Construction, Inc., Norco, CA, Contract #2024 -182; 2) authorize the City Manager to file the Notice of Completion; and 3) release the retention funds following the 35-day lien period.

..body

FISCAL IMPACT
Chino Rancho Park Project PK200/G8201/G8241 was completed within the adopted project 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:
 Positive City Image
 Responsible Long-Range Planning
 Commitment to Our Community
 Innovation


307
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: NOTICE OF COMPLETION - CHINO RANCHO PARK DEVELOPMENT PROJECT (PK200/G8201/G8241).

PAGE: 2

BACKGROUND
On December 19, 2023 , the City Council awarded construction Contract #2024 -182 to Act 1 Construction, Inc., Norco, CA, in the amount of $3,254,984 with contingencies of $488,247 for a not-to-exceed contract amount of $3,743,231 for the Chino Rancho Park Development project.

The project scope of work included the construction of a new 1.18 -acre park, including an entry monument for the City and park, parking lot, restroom building, an all -inclusive playground, shade pavilion, two pickle ball courts, outdoor fitness equipment, open space, walking trail with benches, and drought tolerant landscaping. Work also included street and infrastructure improvements within the public right -of-way around the perimeter of the park along Central Avenue and Phillips Boulevard. These improve ments consisted of the undergrounding of communication utility lines, adding landscape, curb and gutter, sidewalk, and repaving a section of Phillips Boulevard along the northern perimeter of the park. Finally, sidewalk improvements along the east side of Central Avenue were constructed and new ADA curb ramps on the corner of Central Avenue and Phillips Boulevard were installed.

ISSUES/ANALYSIS
During construction, there were several unforeseen issues identified in the field and addressed as modifications to the project. The amount of soil export required for the project exceeded the amount anticipated in the contract documents so additional soil was needed and used brick wainscoting was added to the exterior of the prefabricated restroom buil ding (Change Order No.1). The installation method of prefabricated concrete seat walls was changed to accommodate height variances in the product, additional fencing was required to close a gap along the fence line, and form inspection identified changes t o the sidewalk required for accessibility compliance (Change Order No. 2). Additional right -of-way improvements were added to the project, including striping, signage, 23 foot street light poles, and extended working hours during the full road closure of Phillips Boulevard (Change Order No. 3). These changes brought the total contract amount of the project to $3,377,718.99.

The following is a summary of the final accounting of costs for project PK200/G8201/G8241:

Contract #2024-182 Contract Contingency
Original Construction Contract Amount $ 3,254,984 $ 488,247 Change Order No. 1 $ 48,365.72 -$ 48,365.72
Change Order No. 2 $ 18,451.50 -$ 18,451.50
Change Order No. 3 $ 55,917.77 -$ 55,917.77
Total Contract & Contingency Balance $ 3,377,718.99 $ 365,512.01

Act 1 Construction, Inc. has satisfactorily completed all work within the project budget and has complied with the terms of the contract. A Notice of Completion has also been prepared for filing with the San Bernardino County Recorder’s Office.

Attachment – Notice of Completion

308
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: NOTICE OF COMPLETION - CHINO RANCHO PARK DEVELOPMENT PROJECT (PK200/G8201/G8241).

PAGE: 3

309

RECORDING REQUESTED BY
City of Chino
Community Services, Parks &
Recreation

P.O. Box 667
Chino, CA 91708

AND WHEN RECORDED MAIL TO

City Clerk
City of Chino
P.O. Box 667
Chino, CA 91708-0667
SPACE ABOVE THIS LINE FOR RECORDER’S USE

NOTICE OF COMPLETION

CITY OF CHINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA

Notice is hereby given that:

1. The undersigned is owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the undersigned is City of Chino

3. The full address of the undersigned is 13220 Central Avenue, Chino, CA 91710

4. The nature of the title of the undersigned is: In fee (If other than fee, strike “In fee” and insert, for example, “purchaser under contract of purchase” or “lessee”)

5. The full names and full addresses of all persons, if any, who hold title with the undersigned are:

Names Addresses

N/A

6. The names of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work of improvement herein referred to:

Names Addresses

N/A

N/A
(If no transfer made, insert “none”)

7. A work of improvement on the property hereinafter described was completed on June 3, 2025

8. The name of the contractor, if any, for such work of improvement was:

Act 1 Construction, Inc., 444 Sixth Street, Norco, CA 92860 (If no contractor for work of improvement as a whole, insert “none”)

9. The property on which said work of improvement was completed is in the City of Chino, County of San Bernardino, State of California, and is described as follows:

Chino Rancho Park Development Project

10. The street address of said property is
5325 Phillips Blvd., Chino, CA 91710, APN No. 1014052030000 (If no street address has been officially assigned, insert “none”)

SIGNATURE OF OWNER NAMED IN PARAGRAPH 2: DATE:

Linda Reich, City Manager

CERTIFICATION FOR NOTICE OF COMPLETION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) §

CITY OF CHINO )

I HEREBY CERTIFY that I am the Director of Community Services, Parks & Recreation for the City of Chino. I have read the foregoing Notice of Completion and know the contents thereof; and I certify that the same is true of my own knowledge.

I declare under penalty of perjury that the foregoing is true and correct. Executed on June 3, 2025, at City of Chino, California.

Silvia Avalos
Director of Community Services, Parks & Recreation

310

MEMORANDUM

CITY OF CHINO

COMMUNITY SERVICES, PARKS & RECREATION DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: SILVIA AVALOS, DIRECTOR OF COMMUNITY SERVICES, PARKS &

RECREATION

SUBJECT
..titl e
Award of Contract – Ayala Park Operating Center (APOC) Batting Cages Equipment Replacement Project.
..end

RECOMMENDATION
1) Award a construction contract in the amount of $201,701.39 to DLJ Development, El Monte, CA for the APOC Batting Cages Equipment Replacement Project (IB249); and 2) Authorize expenditures of up to $ 30,255 for project construction contingencies, for a n ot-to- exceed potential contract amount of $231,956.39; and
3) Authorize the City Manager to execute the necessary documents on behalf of the City.

..body

FISCAL IMPACT
Sufficient funds are available in the Fiscal Year 2024-25 Building Management 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:
 Positive City Image
 Superior Customer Service
 Responsible Long-Range Planning

Revenue: Click or tap here to enter text.

Expenditure: 65083101-48020-IB249
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 311
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: AWARD OF CONTRACT - AYALA PARK OPERATING CENTER (APOC) BATTING CAGES EQUIPMENT REPLACEMENT PROJECT.

PAGE: 2

BACKGROUND
The Fiscal Year 2024 -25 Building Management Fund (IB249) budget provides funding for the APOC Batting Cages Equipment Replacement Project. The APOC Batting Cages feature a combination of token operated automated baseball and softball pitching machines. The nine outdoor batting stalls have a range of pitching speeds to accommodate all skill levels and are one of the only batting cages of this type in the region. Due to age, heavy use, and harsh operating conditions, the existing equipment experiences frequent breakdowns and is currently unable to operate at full capacity . The project scope of work will include the removal and replacement of all equipment , including the pitching machines, token boxes, light boxes, and conveyor systems, as well as the installation of new wiring.

ISSUES/ANALYSIS
On March 20, 2025, the City released an Invitation for Bid (IFB #2025 -0005) for the “APOC Batting Cages Equipment Replacement” project on Planet Bids, in accordance with City procurement policies. On April 10, 2025, three (3) bids were accepted electronically with the following results:

Company Name Total Bid Amount
1 DLJ Development $201,701.39
2 Golden Sun Firm & Co., Inc. $258,975.00
3 Metrocell Construction $272,140.00

The lowest bid was submitted by DLJ Development, El Monte, CA in the amount of $201,701.39. Staff reviewed DLJ Development’s contractor’s licenses, references, and list of sub-contractors submitted for the project and determined them to be t he lowest responsive and responsible bidder. In addition to the contract amount, staff is requesting to spend up to $30,255.00 for contingencies for unanticipated work, bringing the total potential construction contract amount to $231,956.39.

Attachments: DLJ Development - Agreement and Proposal

312

01225.0006/515653.2

Contract No.:

Approved:

AGREEMENT

“APOC BATTING CAGES EQUIPMENT REPLACEMENT PROJECT”

THIS AGREEMENT is made and entered into this 3rd day of June, 2025 by and between THE CITY OF CHINO, a municipal corporation, hereinafter called “ City”, and DLJ DEVELOPMENT, hereinafter called “Contractor”.

WITNESSETH, that the parties hereto mutually agree as follows:

ARTICLE I: For and in consideration of the payments and agreements hereinafter mentioned to be made and performed by City, Contractor agrees to perform and complete all of the work for the project entitled “APOC BATTING CAGES EQUIPMENT REPLACEMENT PROJECT” in a good and workmanlike manner in accordance with all plans and specifications therefor, to furnish at Contractor’s sole cost and expense all tools, equipment, labor, and materials necessary therefor, except such materials and equipment as are expressly stipulated to be furnished by City, and to do everything required by the Contract Documents.

City shall pay Contractor, and Contractor shall receive, for completing the Work in accordance with the requirements of the Contract Documents and in full compensation therefor, the price named in the Bid Proposal. Subject to any additions or deductions that may be made by change order or amendment, and any penalties or damages that may be assessed against Contractor, Contractor shall receive a total contract amount of Two Hundred One Thousand Seven Hundred One Dollars and Thirty-Nine Cents ($201,701.39) for completion of the contract work.

ARTICLE III: The City hereby employs said Contractor to perform the work according to the terms of this Agreement for the above-mentioned price(s), and agrees to pay the same at the time, in the manner, and upon the conditions stipulated in the Contract Documents; and the said parties for themselves, their heirs, executors, administrators, successors and assignees, do hereby agree to the full performance of the covenants herein contained.

ARTICLE IV: Contractor shall begin work within five (5) calendar days after receiving a Notice to Proceed from the City and the work shall be completed within Ninety (90) working days from the date on which the work was started. If the work is not completed within said time period, liquidated damages shall apply.

ARTICLE V: The Notice Inviting Bids, the Summary of Work, the Instructions to Bidders, the Bid Documents, the Required Post-Bid Documents, the General Provisions, the Special Provisions, the Technical Specifications, and all other drawing, plans, or specifications for the Work (collectively, “Contract Documents”) are hereby incorporated in to and made part of this 313

01225.0006/515653.2
Agreement.

ARTICLE VI: Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City. Should conflict of interest principles preclude a single l egal counsel from representing both City and Contractor, or should City otherwise find Contractor’s legal counsel unacceptable, then Contractor shall reimburse the City its costs of defense, including without limitation reasonable attorneys’ fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the res ult of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

Similarly, Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

ARTICLE VIII: This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S.

District Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California.

Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

ARTICLE X: No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which 314

01225.0006/515653.2
may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

ARTICLE XI: The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall n ot be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

ARTICLE XII: In the course of its work under this Agreement, the Contractor, its agents and employees shall be bound by and comply with all applicable federal, state and local laws and requirements.

ARTICLE XIII: 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]

315

01225.0006/515653.2
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed on the day and year first above written.

Approved as to Form: Approved as to Content:

City Attorney Silvia Avalos , Director of Community
Services, Parks & Recreation

CONTRACTOR

Dated: By:
(Signature)
Name:
(Please Type or Print Name)
Title:
(Please Type or Print Title)

CITY OF CHINO

Dated:

Linda Reich, City Manager

ATTEST:

Natalie Gonzaga, City Clerk

Date

316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331

MEMORANDUM

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES

SUBJECT
..titl e
Revised Permanent Local Housing Allocation (PLHA) Program Resolution. ..end

RECOMMENDATION
Adopt the revised Resolution No. 2025 -024 required by the California Department of Housing and Community Development (HCD) to proceed with PLHA agreement execution. ..body

FISCAL IMPACT
There is no fiscal impact associated with the revision to the resolution.

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
 Responsible Long-Range Planning

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. 332
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: REVISED PERMANENT LOCAL HOUSING ALLOCATION (PLHA) PROGRAM RESOLUTION.

PAGE: 2

BACKGROUND
On February 18, 2025 , Resolution No. 2025-004 was adopted authorizing the submittal of the PLHA application for funding under the State of California PLHA program. The City’s application sought funding to support a homebuyer assistance program and a rental assistance program for homeless families or families at-risk of homelessness.

Following submittal and review, HCD requested that the City’s resolution be amended to include the original estimated 5 -year allocation of $1,496,19 0 shown in the 2024 PLHA NOFA, Appendix B in Section 2 . This revision is required for HCD to continue its processing of the necessary funding allocation agreement.

ISSUES/ANALYSIS
A revised Resolution No. 2025-024 has been drafted for consideration. Upon approval, staff will submit the revised resolution to HCD for review and further processing of the PLHA funding agreement.

Attachment – Revised Resolution 2025-024

333

RESOLUTION NO. 2025-024

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,
CALIFORNIA, RESCINDING RESOLUTION NO. 2025 -004 AND

APPROVING A REVISED RESOLUTION AUTHORIZING THE

APPLICATION AND ADOPTING THE PLHA PLAN FOR THE PERMANENT

LOCAL HOUSING ALLOCATION PROGRAM

A. WHEREAS, the Department is authorized to provide up to $296 million under the SB 2 Permanent Local Housing Allocation Program Formula Component from the Building Homes and Jobs Trust Fund for assist ance to Cities and Counties (as described in Health and Safety Code section 50470 et seq. (Chapter 364, Statutes of 2017 (SB2)).

B. WHEREAS, the State of California (the “State”), Department of Housing and Community Development (“Department”) issued a Notice of Funding Availability (“NOFA”) dated 10/15/2024 under the Permanent Local Housing Allocation (PLHA) Program; C. WHEREAS, the City of Chino is an eligible local government who has applied for program funds to administer one or more eligible activities, or a Local or Regional Housing Trust Fund to whom an eligible Local government delegated its PLHA formula allocation;
D. WHEREAS, the Department may approve funding allocations for PLHA Program, subject to the terms and conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement, and other contracts between the Department and PLHA grant recipients.

E. WHEREAS, by adoption of th is Resolution, the City Council will adopt a revised resolution to include the 5-year estimate recited in Section 2.

NOW THEREFORE BE IT RESOLVED THAT:

1. If the City of Chino as the PLHA Applicant receives a grant of PLHA funds from the Department pursuant to the above referenced PLHA NOFA, it represents and certifies that it will use all such funds in a manner consistent and in compliance with all applicable state and federal statutes, rules, regulations, and laws, including without limitation all rules and laws regarding the PLHA Program, as well as any and all contracts Applicant may have with the Department.

2. Applicant is hereby authorized and directed to receive a PLHA grant, in an amount not to exceed the five-year estimate of $1,496,190 of the PLHA formula allocations, as stated in Appendix B of the current NOFA, 2024 Permanent Local Housing Allocation Program (PLHA) Local Government Formula of Funding Availability in accordance with all applicable rules and laws.

3. Applicant hereby agrees to use the PLHA funds for eligible activities as approved by the Department and in accordance with all Program requirements, Guidelines, other rules 334
RESOLUTION NO. 2025-024

Page 2 of 3 ends

and laws, as well as in a manner consistent and in compliance with the Standard Agreement and other contracts between the Applicant and the Department.

4. Pursuant to Section 302(c)(4) of the Guidelines, Applicant’s PLHA Plan for the 2019-2023 Allocations is attached to this resolution, and Applicant hereby adopts this PLHA Plan and certifies compliance with all public notice, p ublic comment, and public hearing requirements in accordance with the Guidelines.

5. Pursuant to Applicant’s certification in this resolution, the PLHA funds will be expended only for eligible Activities and consistent with all program requirements.

6. Applicant certifies that, if funds are used for the acquisition, construction or rehabilitation of for-sale housing projects or units within for-sale housing projects, the grantee shall record a deed restriction against the property that will ensure compliance with one of the requirements stated in Guidelines Section 302(c)(6)(A), (B) and (C).

7. Applicant certifies that, if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project, and such loan shall be evidenced through a Promissory Note secured by a Deed of Trust and a Regulatory Agreement shall restrict occupancy and rents in accordance with a Local government - approved underwriting of the Project for a term of at least 55 years.

8. Applicant shall be subject to the terms and conditions as specified in the Standard Agreement, the PLHA Program Guidelines and any other applicable SB 2 Guidelines published by the Department.

9. The City Manager is hereby authorized to execute the PLHA Program Application, the PLHA Standard Agreement and any subsequent amendments or modifications thereto, as well as any other documents which are related to the Program or the PLHA grant awarded to Applicant, as the Department may deem appropriate.

10. Resolution No. 2025 -004, adopted by the City Council at a Public Hearing held on February 18, 2025, is hereby rescinded in its entirety and replaced by this Resolution.

PASSED, APPROVED, AND ADOPTED REVISION THIS 3RD DAY OF JUNE 2025.

EUNICE M. ULLOA, MAYOR

335
RESOLUTION NO. 2025-024

Page 3 of 3 ends

CERTIFICATE OF THE ATTESTING OFFICER

The undersigned, Natalie Gonzaga, City Clerk, does hereby attest and certify that the forgoing Resolution, Resolution No. 202 5-024, is a true, full a nd correct copy of a resolution duly adopted at a meeting of the City of Chino City Council, which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed, or rescinded since its date of adoption and is in full force and effect as of the date hereof.

ATTEST:

NATALIE GONZAGA, CITY CLERK

CITY OF CHINO

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) §.

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 3 rd day of June 2025, by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK

Attachment

336
§301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing. §302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government’s Housing Element.

This plan is consistent with the following programs as identified in the City's Housing Element which outlines housing goal policies: 1) Affordable Housing Opportunities-seek funding and collaborations with developers and local agencies-This will be achieved through partnerships to acquire and construct affordable housing units and leverage resources to provide programs to assist first time home buyers. 2) Policy 2B: Homebuyer Assistance Program- Monitor and seek funding and collaborations to promote homebuyer assistance programs to be achieved through partnerships with non-profit housing organizations to leverage resources to provide first time buyer programs and down payment assistance; 3) 2D: Supportive Services for Persons with Special Needs-promote public service programs with assistance for food, shelter, counseling, housing vouchers and other emergency assistance to aid in the prevention of homelessness; Achieved through the city’s comprehensive case management program that provides direct services and referrals to organizations to meet special needs. Through CDBG funds the city grants funding to agencies committed to serving those most in need in our community. 4) Section 5A: Fair Housing Program-Access to Financing opportunities for disadvantaged households will be achieved through leveraged resources with organizations committed to helping first time buyers achieve home ownership and funding through PLHA and city housing funds. §302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.

The City of Chino plans on using its allocated funds for the following activities: 1) No more than 60% for assisting families with children enrolled in the Chino Unified School District who are, or who are at risk of becoming, homeless as identified through the McKinney-Vento Homeless Assistance Act with rental assistance and/or housing placement costs for a minimum of 6 months. During this time, these families will receive comprehensive services aimed at preparing them for unsubsidized housing through the City's supportive case management program in collaboration with the Chino Unified School District's Hope Program. 2) A minimum of 40% of the funds will be used to provide first-time buyers with home ownership opportunities by providing down-payment assistance through deferred, low interest loans for low-to- moderate income families through partnerships with non-profit entities to acquire property and construct affordable housing units §302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median Income (AMI).

The City's PLHA plan will focus on prioritizing efforts in partnership with local non-profit housing organizations and developers committed to creating more housing in our community through collaboration to construct and house low-income families. Infil development program partnerships will leverage resources to provide innovative fist-time buyer programs, grant opportunities and housing placement services to aid eligible families in need of subsidized housing. Our priority based on need assessments, will target families with children whose incomes is at or below 60% AMI as identified by the school district through the McKinney-Vento Homeless Assistance Act. Families receiving long term rental assistance will also receive comprehensive supportive services to aid in preventing homelessness and the preparation of unsubsidized living. Case Managers will assess the feasibility of future home ownership through the down payment assistance program for placement in the constructed affordable units.

Activities Detail (Activities Detail (Must make a selection on Formula Allocation Application worksheet under Eligible Activities, §301)) 60% of the allocated funds will be used to assist families with children enrolled in the Chino Unified School District who are, or who are at-risk of becoming, homeless as identified through the McKinney-Vento Homeless Assistance Act. Assistance will include rental assistance and or housing placement costs for a minimum of 6 months. During this time, these families will receive comprehensive services including but not limited to job training, mental health assessments, financial management workshops, family therapy, job search, substance abuse counseling and other identified services aimed at preparing them for unsubsidized housing. These services will be provided through the City's supportive case management program, partnering non-profits and in collaboration with the Chino Unified School District's Hope Program which provides extended services and resources to low-income district families to ensure children remain in school and are successful and healthy. These are services that the partnership has provided for many years with much success. The PLHA funds will enable an extension of services through long-term rental assistance and extended case management. In addition, these families will be assessed for our first-time buyer program to promote and increase home ownership opportunities as they graduate or meet established goals and move towards unsubsidized housing. As families are placed, new families will receive the same services to promote continued longevity of these programs.

Complete the table below for each proposed Activity to be funded with 2021-2023 PLHA allocations. If a single Activity will be assisting households at more than one level of Area Median Income, please list the highest AMI to be served. §302(c)(4)(E)(i) Percentage of Funds Allocated for
the Proposed Activity 20% 40% 20% 40% 20%
Rental
Assistance
Funding Allocation Year 2021 2021 2022 2022 2023
Supportive/Ca
se
Management
Services
Rental
Assistance
Supportive/Ca
se
Management
Services
TOTAL30%§302(c)(4)(E)(ii) Area Median Income Level
Served 30% 30%
40%
2023
§302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity. §302(c)(4)(E)(ii) Unmet share of the RHNA at the
AMI Level
Note: complete for years 2021, 2022, 2023 only
- 572 - 2113 - 2113 4798
30% 30% 30%
Type of Affordable Housing Activity
Supportive/Cas
e Management
Services
Rental
Assistance
15 §302(c)(4)(E)(iv) Period of Affordability for the
Proposed Activity (55 years required for rental
housing projects)
n/a n/a n/a n/a n/a n/a
§302(c)(4)(E)(ii) Projected Number of Households
Served 2 3 2 3 2 3
§302(c)(4) Plan Rev.10/28/2024
PLHA Page 1 302(c)(4) Plan 337
What Percentage of the Percentage Above Will
be Used for Ownership Housing? 100% 100% 100%
Total Percentage of Funds Allocated Calculator (2021 - 2023) Funds Allocated 100%
Total Percentage of Funds
Allocated for 2022 100%
Admin
Funds Allocated
Total Percentage of Funds
Allocated for 2021
0%
100%
100%
2021 Allocation
Funds Allocated 100%
Total Percentage of Funds
Allocated for 2023100%
End of Document
2022 Allocation
Admin 0%
2023 Allocation
Admin 0%
§302(c)(4)(E)(i) Provide a detailed and complete description of how allocated funds will be used for the proposed Activity.

In collaboration with the Chino Unified School District and City of Chino Hope Program Case Management staff, 15 families in immediate need of housing have already been identified through the McKinney-Vento Homeless Assistance Act. Case Managers are actively working with the families to find housing placement while providing comprehensive services needed to ensure safe living conditions. Allocated funds will be used to enhance the case management services already in place and extend rental assistance opportunities long-term as our current program only allows for 3 months. PLHA funding will enable more sufficient time through enhanced case management, allowing for preparation for the families to reach established goals towards unsubsidized housing. The rental assistance and enhanced case management implementation is immediate upon award of the allocations. Timeliness for reaching goals towards unsubsidized housing for each family will vary depending on individual circumstances but is estimated at 18-24 months. Future PLHA funding enables longevity of this program.
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. §301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance.

A minimum of 40% of the funds will be used to provide first-time buyers with home ownership opportunities by providing down-payment assistance through deferred, low-interest loans for low-to moderate income families through partnerships with non-profit entities to acquire property and construct affordable housing units.

Funding Allocation Year 2021 2022 2023
Type of Homeowner Assistance Homebuyer
Assistance
Homebuyer
Assistance
Homebuyer
Assistance
§302(c)(4)(E)(i) Percentage of Funds Allocated for
the Proposed Activity 40% 40% 40%
§302(c)(4)(E)(ii) Area Median Income Level
Served 60% 60% 60% TOTAL
§302(c)(4)(E)(ii) Unmet share of the RHNA at the
AMI Level
Note: complete for years 2021, 2022, 2023 only
275 1282 1282 2839
§302(c)(4)(E)(ii) Projected Number of Households
Served 1 1 1 3
§302(c)(4)(E)(iii) A description of major steps/actions and a proposed schedule for the implementation and completion of the Activity. §302(c)(4)(E)(iv) Period of Affordability for the
Proposed Activity 55 55 55
Collaboration with local non-profit organizations has begun to construct three affordable units on vacant city-owned property. Plan development and contractor selection to commence within 12 months followed by a 12-month construction period. During the construction phase, continued collaboration with our non-profit partner will include first time home buyer program development, candidate selection and qualifying activities for ownership/placement within 24 months of project commencement. The funds allocated will be utilized through zero or low interest deferred downpayment assistance loans to low-income families.

File Name: Plan Adoption Reso §302(c)(4)(D) Evidence that the Plan was authorized and adopted by resolution by the Local jurisdiction and that the public had an adequate opportunity to review and comment on its content. Uploaded to HCD? PLHA Page 2 302(c)(4) Plan 338

MEMORANDUM

CITY OF CHINO

POLICE DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: KEVIN MENSEN, CHIEF OF POLICE

SUBJECT
..titl e
Acceptance and Appropriation of the 2024 Justice Assistance Grant ..end

RECOMMENDATION
1) Accept the 2024 Justice Assistance Grant (JAG) in the amount of $21,005; 2) establish a grant number G 425D and appropriate $21,005 to the Justice Assistance Fund 135 with a corresponding increase to the revenues; and 4) authorize the City Manager or Chief of Police to execute all necessary documents related to the grant on behalf of the City. ..body

FISCAL IMPACT
There is no fiscal impact on the General Fund and no matching funds are required . An appropriation of $21,005 to the Justice Assistance Grant ( Fund 135 ) is necessary, with a corresponding increase in revenues of the same amount.

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
 Public Service Excellence through Internal and External Partnerships

Revenue: 1351000-59500-G425D

Expenditure: 1354000-40010-G425D
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CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: ACCEPTANCE AND APPROPRIATION OF THE 2024 JUSTICE ASSISTANCE GRANT PAGE: 2

BACKGROUND
The Justice Assistance Grant combines the former Federal Local Law Enforcement Block Grant and Byrne Grants and requires an entity in the County of San Bernardino to be responsible for applying for and admini stering the grant. The San Bernardino County Chiefs of Police and Sheriff agreed to make the San Bernardino County Law and Justice Group responsible for applying for and administering the grant. The group also agreed to pay the County an administration fee of five (5) percent of their respective allocation for this service. Effective with the 2024 JAG cycle, the responsibility has transitioned to the individual cities, which are now solely responsible for applying and administering their own JAG funds.

ISSUES/ANALYSIS
The Edward Byrne Memorial Justice Assistance Grant (JAG) Program provides funding to state and local governments for support of a broad range of activities intended to prevent and control crime and improve the criminal justice system. Distribution of funds by the federal government is calculated using a formula, which considers both population and crime statistics. Awards are subject to the availability of appropriated funds.

Effective with the 2024 grant cycle, jurisdictions receiving JAG funding are no longer required to enter into subaward agreements. Instead, each recipient is directly responsible for complying with all federal award requirements and for carrying out the activities specified in their respective grant award in accordance with the applicable terms and conditions.

In March 2025, the Chino Police Department was notified of its eligibility to receive the 2024 Federal Justice Assistance Grant (JAG 2024) in the amount of $21,005. Funds from JAG 2024 will be used to purchase replacement ballistic helmets for police officers.

Attachment – JAG Award Notice

340
Department of Justice (DOJ)
Office of Justice Programs
Bureau of Justice Assistance

Washington, D.C. 20531

Name and Address of Recipient: CITY OF CHINO 13220 CENTRAL AVE

City, State and Zip: CHINO, CA 91710

Recipient UEI: RGVNGHJR3NV5
Project Title: Purchase of new ballistic
helmets for Chino PD sworn personnel Award Number: 15PBJA-24-GG-04654-JAGX Solicitation Title: BJA FY 24 Edward Byrne Memorial Justice Assistance Grant (JAG) Program - Local Solicitation Federal Award Amount: $21,005.00 Federal Award Date: 12/4/24 Awarding Agency: Office of Justice Programs
Bureau of Justice Assistance
Funding Instrument Type: Grant
Opportunity Category: O
Assistance Listing:

16.738 - Edward Byrne Memorial Justice Assistance Grant Program Project Period Start Date: 10/1/23 Project Period End Date: 9/30/25 Budget Period Start Date: 10/1/23 Budget Period End Date: 9/30/25 Project Description:

Funds from this award will be used by the Chino Police Department to purchase replacement ballistic helmets for expired helmets to issue to police officers. This award will increase the safety and effectiveness of police officers responding to calls involving firearms.
341

MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS

SUBJECT
..titl e
Notice of Completion with Hardy & Harper, Inc. for the Yorba Avenue Street Improvements (ST233) and Local Street Rehabilitation FY 2024 (ST241). ..end

RECOMMENDATION
1) Accept Yorba Avenue Street Improvements (ST233) and Local Street Rehabilitation FY 2024 (ST241) with Hardy & Harper, Inc., Contract No. 2024-204 as complete; 2) Authorize the Director of Public Works to file the Notice of Completion on behalf of the City of Chino; and
3) Authorize the release of retention funds following the 35-day lien period. ..body

FISCAL IMPACT
Projects ST233 and ST241 were combined and advertised together due to similar scope of improvements. The combined projects were completed within the Council approved budget for each scope of work. All unused project funds will be returned to the appropriate fund balances.

Following the release of retention funds, the City will invoice the City of Pomona for reimbursement of all applicable contract expenses per terms of the reimbursement agreement No. 2024-286 in the amount of $109,901.

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
 Financial Stability
 Responsible Long-Range Planning
 Public Service Excellence through Internal and External Partnerships

Revenue: 3207100 - 59355

Expenditure:

Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 342
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: NOTICE OF COMPLETION WITH HARDY & HARPER, INC. FOR THE YORBA AVENUE STREET IMPROVEMENTS (ST233) AND LOCAL STREET REHABILITATION FY 2024 (ST241).

PAGE: 2

BACKGROUND
Project ST233 improvements included sidewalk connectivity, curb and gutter installation, and asphalt pavement rehabilitation on Yorba Avenue from Chino Avenue to Schaefer Avenue.

Project ST241 improvements included asphalt pavement rehabilitation and striping modifications on 7th Street between D Street and Washington Avenue, trench repair work along the median of Ramona Avenue, as well as rehabilitation of several industrial streets in the central part of the City such as Cheyenne Way, Iroquois Place, Arapahoe Place, Bell Court, and Faraday Court. Projects ST233 and ST241 were combined and advertised together due to similar scope of improvements and to potentially reach a more competitive price for several bid items.

On February 6,2024, the City Council awarded construction cont ract No. 2024 -204 to Hardy & Harper Inc., Lake Forest, CA for Yorba Avenue Improvements (ST233) and the Local Street Rehabilitation FY 2024 (ST241) for $3,195,550.00. Additionally, the City Council authorized expenditures of up to $319,555.00 (10% of the c onstruction contract) for project contingencies, bringing the total not-to-exceed contract amount to $3,515,105.00.

On June 18, 2024, Chino City Council approved a Cooperative Reimbursement Agreement with the City of Pomona for a n amount not-to-exceed $13 9,801 for Chino to complete pavement improvements within City of Pomona right -of-way. To complete the added scope in City of Pomona right-of-way, Chino City Council approved Contract Change Order (CCO) No. 1 with Hardy & Harper, Inc. in the amount of $109, 901 for a revised total contract amount of $3,305,451. The added scope of CCO No. 1 included pavement rehabilitation of Walnut Avenue from Reservoir Street to the Easterly City boundary, within City of Pomona limits. Staff negotiated a cost-savings of $29,900 to complete the work within City of Pomona right -of-way.

As a result, a total of $109,901 will be invoiced to the City of Pomona consistent with the Cooperative Agreement for reimbursable expenses.

On September 17, 2024, City Council approved CCO No. 2 with Hardy & Harper, Inc. in the amount of $923,990.64 for a revised not -to-exceed total contract amount of $4,229,441.64. The added scope of CCO No. 2 included underground utility investigation, emerg ency waterline repair, intersection reconstruction at Ramona Avenue and Marigold Drive, asphalt pavement rehabilitation on Ramona Avenue from Chino Avenue to Schaefer Avenue, waterline replacement at Dahlia Road, and necessary traffic control along Ramona Avenue to complete the work.

On April 8, 202 5, City staff initiated CCO No. 3 to reconcile construction quantities, which reduced the total contract amount for the project by $40,652.30.

ISSUES/ANALYSIS
All work has been completed per the terms of the original construction contract and approved change orders. The following is a summary of the final accounting of construction costs.

ST233 Yorba Avenue Street Improvements &
ST241 Local Street Rehabilitation FY 2024
Contract Contingency
Original Contract & Contingency $3,195,550.00 $319,555.00 Contract Change Order No. 1 $109,901.00 $0
Contract Change Order No. 2 $923,990.64 $0
343
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: NOTICE OF COMPLETION WITH HARDY & HARPER, INC. FOR THE YORBA AVENUE STREET IMPROVEMENTS (ST233) AND LOCAL STREET REHABILITATION FY 2024 (ST241).

PAGE: 3

Contract Change Order No. 3 - ($40,652.30) $0
Final Contract Amount & Unused Contingency $4,188,789.34 $319,555.00

Hardy & Harper, Inc. has complied with the terms of the contract. A Notice of Completion has been prepared for filing with the San Bernardino County Recorder’s Office. The retention funds will be released following a 35-day lien period.

Attachments: Exhibit A – Projects Location Map
Exhibit B – Notice of Completion (Hardy & Harper inc.)

344
345

RECORDING REQUESTED BY
City of Chino
Public Works Department
P.O. Box 667
Chino, CA 91708

AND WHEN RECORDED MAIL TO
City Clerk
City of Chino
P.O. Box 667
Chino, CA 91708-0667
SPACE ABOVE THIS LINE FOR RECORDER’S USE
APN# None NOTICE OF COMPLETION

CITY OF CHINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA Notice is hereby given that:

1. The undersigned is owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the undersigned is City of Chino

3. The full address of the undersigned is 13220 Central Avenue, Chino, CA 91710

4. The nature of the title of the undersigned is: In fee (If other than fee, strike “In fee” and insert, for example, “purchaser under contract of purchase” or “lessee”)

5. The full names and full addresses of all persons, if any, who hold title with the undersigned are:

Names Addresses

N/A N/A

6. The names of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work of improvement herein referred to:

Names Addresses

N/A N/A
(If no transfer made, insert “none”)

7. A work of improvement on the property hereinafter described was completed on

8. The name of the contractor, if any, for such work of improvement was:

Hardy & Harper Inc., Lake Forest, CA
(If no contractor for work of improvement as a whole, insert “none”)

9. The property on which said work of improvement was completed is in the City of Chino, County of San Bernardino, State of California, and is described as follows:

ST233 – Yorba Avenue Street Improvements, ST241 – Local Street Rehabilitation FY 2023-24

10. The street address of said property is NONE
(If no street address has been officially assigned, insert “none”) SIGNATURE OF OWNER NAMED IN PARAGRAPH 2: DATE: June 3, 2025 Hye Jin Lee, Director of Public Works

CERTIFICATION FOR NOTICE OF COMPLETION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )ss

CITY OF CHINO )
I HEREBY CERTIFY that I am the City Engineer/Deputy Director of Public Works for the City of Chino. I have read the foregoing Notice of Completion and know the contents thereof; and I certify that the same is true of my own knowledge.

I declare under penalty of perjury, that the foregoing is true and correct. Executed on June 3, 2025, at City of Chino, California Albert Espinoza
City Engineer, Deputy Director of Public Works 346

MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS

SUBJECT
..titl e
Notice of Completion for the Transportation Right -of-Way ADA Improvements Project (ST173) and Local Street Rehabilitation FY 2024 (ST241) with CT&T Concrete Paving, Inc. ..end

RECOMMENDATION
1) Accept the Transportation Right-of-Way ADA Improvements Project (ST173) and Local Street Rehabilitation FY 2024 (ST241) with CT&T Concrete Paving Inc., Contract No. 2024 -268 as complete; 2) authorize the Director of Public Works to file the Notice of Completion on behalf of the City of Chino; and 3) authorize the release of retention funds following the 35 -day lien period.
..body

FISCAL IMPACT
The Projects were completed within the City Council approved project budgets. All unused project funds will be returned to the appropriate fund balance.

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: ST173 AND ST241
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CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: NOTICE OF COMPLETION FOR THE TRANSPORTATION RIGHT -OF-WAY ADA IMPROVEMENTS PROJECT (ST173) AND LOCAL STREET REHABILITATION FY 2024 (ST241) WITH CT&T CONCRETE PAVING, INC.

PAGE: 2

BACKGROUND
The Transportation Right -of-Way ADA Improvements Project (ST173) scope of work included construction of a sidewalk to address a gap in pedestrian access on the west side of Third Street between H Street and Schaefer Avenue as a result of an Americans with Disabilities Act (ADA) grievance. The Local Street Rehabilitation FY 2024 (ST241) scope of work included construction of sixty-seven (67) curb ramps and ten (10) alley approaches at various locations citywide. Also, as part of the Chino ADA Transition Plan, an accessible parking space was constructed at the northeast corner of 5th Street and D Street. Projects ST173 and ST241 were combined and advertised together due to a similar scope of improvements and for economy of scale for a more competitive price on several bid items.

On May 21, 2024, the City Council awarded construction contract No. 2024 -268 to CT&T Concrete Paving Inc., f or the Transportation Right -of-Way ADA Improvements Project (ST173) and the Local Street Rehabilitation FY 2024 Project (ST241) for $2,645,501.07. Additionally, the City Council authorized expenditures of up to $264,551 (10% of the construction contract) f or project contingencies with the approval of the Public Works Director.

On November 2, 2024, the Public Works Director approved Contract Change Order (CCO) No. 1 for Project ST241 in the amount of $212,759.80, revising the not -to-exceed contract total to $2,858,360.87. The change order included the addition of curb ramps and related paving at the intersection of 11th Street and B Street to accommodate the grand re -opening of the Chino Old Schoolhouse Museum.

On January 7, 2025, the City Council approved a contingency increase of $212,760 to replenish the contingency balance to its original amount following the execution of CCO No. 1. On April 16, 2025, staff initiated CCO No. 2 in the amount of $84,388.02 to reconcile construction quantities and account f or minor field -directed changes made to address unforeseen site conditions.

ISSUES/ANALYSIS
All work has been completed per the terms of the original construction contract and approved change orders. The following is a summary of the final accounting of construction costs for each project.

ST173 Transportation Right-of-Way ADA
Improvements Project &
ST241 Local Street Rehabilitation FY 2024
Contract Contingency
Original Contract & Contingency $2,645,501.07 $264,551.00 Contract Change Order No. 1 $212,759.80 -($212,759.80) Replenishment of Contingency $0 $212,760.00
Contract Change Order No. 2 $84,388.02 -($84,388.02)
Final Contract Amount & Unused Contingency $2,942,648.89 $180,163.18

CT&T Concrete Paving Inc. has complied with the terms of the contract. A Notice of Completion has been prepared for filing with the San Bernardino County Recorder’s Office. The retention funds will be released following a 35-day lien period.
348
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: NOTICE OF COMPLETION FOR THE TRANSPORTATION RIGHT -OF-WAY ADA IMPROVEMENTS PROJECT (ST173) AND LOCAL STREET REHABILITATION FY 2024 (ST241) WITH CT&T CONCRETE PAVING, INC.

PAGE: 3

Attachments: Exhibit A – Project Location Map
Exhibit B – Notice of Completion (CT&T Concrete Paving Inc.)

349
350

RECORDING REQUESTED BY
City of Chino
Public Works Department
P.O. Box 667
Chino, CA 91708

AND WHEN RECORDED MAIL TO
City Clerk
City of Chino
P.O. Box 667
Chino, CA 91708-0667
SPACE ABOVE THIS LINE FOR RECORDER’S USE
APN# None NOTICE OF COMPLETION

CITY OF CHINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA Notice is hereby given that:

1. The undersigned is owner of the interest or estate stated below in the property hereinafter described.

2. The full name of the undersigned is City of Chino

3. The full address of the undersigned is 13220 Central Avenue, Chino, CA 91710

4. The nature of the title of the undersigned is: In fee (If other than fee, strike “In fee” and insert, for example, “purchaser under contract of purchase” or “lessee”)

5. The full names and full addresses of all persons, if any, who hold title with the undersigned are:

Names Addresses

N/A N/A

6. The names of the predecessors in interest of the undersigned, if the property was transferred subsequent to the commencement of the work of improvement herein referred to:

Names Addresses

N/A N/A
(If no transfer made, insert “none”)

7. A work of improvement on the property hereinafter described was completed on June 3, 2025

8. The name of the contractor, if any, for such work of improvement was:

CT&T Concrete Paving Inc.
(If no contractor for work of improvement as a whole, insert “none”)

9. The property on which said work of improvement was completed is in the City of Chino, County of San Bernardino, State of California, and is described as follows:

ST173 – Transportation Right-of-Way ADA Improvements & ST241 – Local Street Rehabilitation FY 2024

CERTIFICATION FOR NOTICE OF COMPLETION

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )ss

I declare under penalty of perjury, that the foregoing is true and correct. Executed on June 3, 2025, at City of Chino, California Albert Espinoza
City Engineer/Deputy Director of Public Works 351

MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS

SUBJECT
..titl e
Road Maintenance and Rehabilitation Account (RMRA) Project List for Fiscal Year 2025-26. ..end

RECOMMENDATION
Adopt Resolution No. 2025-025 to update the City’s Road Maintenance and Rehabilitation Account (RMRA) project list and projected revenues for Fiscal Year 2025-26. ..body

FISCAL IMPACT
Upon approval of the attached Resolution No. 2025 -025, an estimated $2,429,133 in revenue will be added to the Road Maintenance and Rehabilitation Account (RMRA) (Fund 327 ) as reflected in the FY 2025-26 Proposed 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 in which identified priorities, goals, and action plans are built, by fostering:
 Positive City Image
 Financial Stability
 Responsible Long-Range Planning

Revenue: 3271000 - 51610

Expenditure:

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CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA) PROJECT LIST FOR FISCAL YEAR 2025-26.

PAGE: 2

BACKGROUND
On April 28, 2017, Senate Bill 1, the Road Repair and Accountability Act of 2017 (SB1) was signed into law to provide funding for transportation infrastructure. This senate bill increased gas fuel tax and vehicle registration fees to establish the funds known as the Road Maintenance and Rehabilitation Account (RMRA) for pavement improvement projects. Every fiscal year, an allotment of RMRA/SB1 funding is distributed to eligible cities and counties pursuant to Streets and Highway Code (SHC) Section 2032(h). Prior to receiving an apportionment of RMRA /SB1 funds from the State Controller in a fiscal year, a city or county must submit a proposed list of projects to the California Transportation Commission (CTC). In addition, the list of projects must be approved by the City Council via a resolution and identified in the City’s budget.

ISSUES/ANALYSIS
For Fiscal Year 2025 -26, the City o f Chino is projected to receive an estimated allotment of $2,429,133 of RMRA/SB1 funds. In compliance with reporting guidelines, staff has developed a list of projects, outlined in Resolution No. 2025-025, to allocate these funds.

Therefore, staff recommends that the City Council adopt Resolution 2025-025, approving the FY2025-26 project list to be funded with RMRA/SB1 allocations as outlined below and further detailed in the attached resolution:

Project
No. Project Title Project Location Project
Description
Anticipated
Project
Schedule
TR212
Traffic Signal
Installation –
Monte Vista
Avenue at Walnut
Avenue
Intersection of Monte
Vista Avenue at Walnut
Avenue and Monte Vista
Avenue from Harrison
Street to Riverside Drive
Grind and overlay
of Monte Vista
Avenue from
Harrison Street to
Riverside Drive
and accessibility
improvements.

March 2026 –
March 2027
ST260
Pavement
Improvements
FY26 Zone 1
Local Streets within the
limits of Central Ave. to
Chino Ave., Chino Ave. to
East End Ave., East End
Ave. to Francis Ave., and
Francis Ave. to Central
Ave. (CIP Zone 1)
Slurry sealing and
minor pavement
improvements
(e.g. grind &
overlay, patch
repairs) on
residential streets
to extend
pavement life.

February 2026
– June 2026

Attachments: Exhibit A - Resolution 2025-025

353
RESOLUTION NO. 2025-025

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,

CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-26 FUNDED BY SB 1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Chino are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City of Chino must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Chino, will receive an estimated $ 2,429,133 in RMRA funding in Fiscal Year 2025-26 from SB 1; and
WHEREAS, this is the Ninth year in which the City of Chino is receiving SB 1 funding and will enable the City of Chino to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City of Chino has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City of Chino used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high -priority and cost -effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City of Chino maintain and rehabilitate streets/roads infrastructure throughout the City of Chino this year and similar projects into the future; and
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City of Chino ’s streets and roads are in an “ At Lower Risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into excellent condition; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets 354
RESOLUTION NO. 2025-025
PAGE 2

infrastructure, and using cutting -edge technology, materials and practices, will have significant positive benefits to the City of Chino.

NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF CHINO, STATE OF CALIFORNIA DOES HEREBY RESOLVE as follows:

The foregoing recitals are true and correct.

1. The following list of newly proposed projects will be funded in -part or solely with Fiscal Year 2025-26 Road Maintenance and Rehabilitation Account revenues:

Project
No. Project Title Project Location Project
Description
Estimated
Useful Life
Anticipated
Project
Schedule
TR212
Traffic Signal
Installation –
Monte Vista
Avenue at
Walnut
Avenue
Intersection of
Monte Vista Avenue
at Walnut Avenue
and Monte Vista
Avenue from
Harrison Street to
Riverside Drive
Grind and overlay of
Monte Vista Avenue
from Harrison Street
to Riverside Drive
and accessibility
improvements.
12 – 15 Years
March 2026
– March
2027
ST260
Pavement
Improvements
FY26 Zone 1
Local Streets within
the limits of Central
Ave. to Chino Ave.,
Chino Ave. to East
End Ave., East End
Ave. to Francis Ave.,
and Francis Ave. to
Central Ave. (CIP
Zone 1)
Slurry sealing and
minor pavement
improvements (e.g.
grind & overlay,
patch repairs) on
residential streets to
extend pavement
life.
5 – 7 Years
February
2026 – June
2026

2. The City Manager or her designee is hereby authorized as Signature Authority to execute all documents necessary to implement and secure any and all funds that may become available to the City from SB 1.

3. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED AND ADOPTED THIS 3RD DAY OF JUNE, 2025.

EUNICE M. ULLOA, MAYOR
ATTEST:

NATALIE GONZAGA, CITY CLERK
355
RESOLUTION NO. 2025-025
PAGE 3

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 No. 2025-025 was duly adopted by the City Council at a regular meeting held on the 3rd day of June, 2025 by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK

356

MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS

SUBJECT
..titl e
Award a Construction Contract to G&A Nelos Construction, Inc. for Water Service Lateral Replacement in Hampshire Village Project (WA255)
..end

RECOMMENDATION
1) Approve the plans and specifications for construction and a ward a construction contract to G&A Nelos Construction, Inc. for the Water Service Lateral Replacement in Hampshire Village Project (WA255) for $629,295.44; 2) authorize up to $62,929.54 (10% of the contract amount) for construction contingencies as allowable per the Public Contract Code , for a not to exceed contract amount of $692,224.98 ; and 3) authorize the City Manager to execute the necessary documents on behalf of the City.
..body

FISCAL IMPACT
The Fiscal Year 2024-25 Capital Improvement Program (CIP) Budget includes sufficient funding for the Water Service Lateral Replacement in Hampshire Village Project (WA255) as outlined below. Expenditures incurred to date cover administrative soft cost for San Bernardino County Clerk filing and advertisement fees.

WA255 – Water Service Lateral Replacement in Hampshire Village Project Fund Adopted Budget Expenditures Available Budget
520 - Water Fund $1,829,500 ($398) $1,829,102

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
 Financial Stability
 Responsible Long-Range Planning

Revenue: Click or tap here to enter text.

Expenditure: 5207310 – 48003 | 48005 | 48008 | 48009
– WA255
Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 357
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: AWARD A CONSTRUCTION CONTRACT TO G&A NELOS CONSTRUCTION, INC.

FOR WATER SERVICE LATERAL REPLACEMENT IN HAMPSHIRE VILLAGE PROJECT (WA255)
PAGE: 2

BACKGROUND
The City of Chino encompasses approximately 30 square-miles, with a water service area of 29 square miles. According to the U.S. Census Bureau, Chino has a population of 93,114 (2023) and a projected 2040 population of 113,333 (SCAG) for the City. The City water service area serves a population of approximately 84,560 and primarily follows the City boundary and includes approximately 23,000 service connections.

Over the past several years, the water service lines installed in the 1980s at the condominium site near San Antonio Avenue and Riverside Drive have significantly deteriorated. Aging materials have led to an increased frequency of leaks. Re placing the water service lines within existing public utility easements at the condo site will help ensure continued access to clean, reliable, and resilient water. This proactive effort will also minimize future water crew’s response times, repair costs, reduce water loss, and enhance overall system reliability. The water division crew’s resources can be dedicated to other maintenance operations.

On March 19, 2025, the City Planning Commission approved the project as exempt from the California Environmen tal Quality Act (CEQA) according to Section 15301(c) of the CEQA Guidelines – Existing Facilities, which includes the operation, repair, and maintenance of highways, streets, sidewalks, gutters, bicycle and pedestrian trails, and other similar facilities.

ISSUES/ANALYSIS
On April 24, 2025 , the City issued an Invitation for Bids (IFB#2025 -0009A) “Hampshire Village Water Service Line Replacements” on PlanetBids. The bidding process adhered to the City’s procurement policies. On May 15, 2025, the City received eleven (11) construction bids with the final ranking as follows:

Rank Contractor Cost

1. G&A Nelos Construction, Inc. $629,295.44

2. Christensen Brothers General Engineering Inc. $657,138.69

3. Big Ben Inc. $767,650.00

4. Dominguez General Engineering, Inc. $810,400.00

5. Ferreira Construction Co, Inc DBA Ferreira Coastal
Construction $824,000.00

6. W.A. Rasic Construction Co., Inc. $828,888.00

7. CEM Construction Corp $938,200.00

8. D Corporation General Contracting and Engineering $953,000.00

9. Gentry Brothers, Inc. $990,400.00

10. Kirtley Construction, Inc. $1,110,700.00

11. C.P. Construction Co., Inc. $1,486,800.00

358
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: AWARD A CONSTRUCTION CONTRACT TO G&A NELOS CONSTRUCTION, INC.

FOR WATER SERVICE LATERAL REPLACEMENT IN HAMPSHIRE VILLAGE PROJECT (WA255)
PAGE: 3

After evaluation of the bids, staff identified G&A Nelos Construction, Inc. as the lowest responsive and responsible bidder. Therefore, staff recommends that the City Council award a construction contract for $629,295.44 with G&A Nelos Construction, Inc. for the Water Service Lateral Replacement in Hampshire Village Project (WA255). The Estimated Expenditure Plan is shown in the Table below:

Project Costs Vendor Amount
Construction Contract G&A Nelos Construction, Inc. $629,295.44 (1)10% Construction Contingency
As allowable per the Public
Contract Code
Error!
Reference
source not
found.
(2)Geotechnical Engineering Services Geo-Advantec $23,720.00 (3)Estimated Administrative Soft Cost $3,000.00
TOTAL CONSTRUCTION COST: $718,944.98
Note: (1) Note that, as in all the City's public works contracts, the contract itself provides the Director of Public Works authority to issue change orders of up to 10% of the original contract amount. When the Council approves the contract, it approves this authority. Ten percent is generally considered within the normal range of changed conditions on a public works construction project and, by providing change order authority upfront, Council helps to reduce the possibility of delay on a construction project. (2) This agreement was processed administratively under the City Manager’s approval in accordance with the City’s procurement policy.
(3) Administrative soft costs include but are not limit ed to laboratory analysis for water quality testing and filing fees with the County.

In compliance with CEQA Guidelines, a Notice of Exemption was filed with the San Bernardino County Recorder’s Office at a cost of $50 prior to advertisement for bids.

Attachments: Exhibit A – Project Vicinity Map
Exhibit B – Construction Agreement – G&A Nelos Construction, Inc. (WA255)

359
360

Contract No.:

Approved:

AGREEMENT

Water Service Lateral Replacement in Hampshire Village Project (WA255)

THIS AGREEMENT is made and entered into this 3rd day of June, 2025 by and between THE CITY OF CHINO, a municipal corporation, hereinafter called “City”, and G&A Nelos Construction, Inc. , hereinafter called “Contractor”.

WITNESSETH, that the parties hereto mutually agree as follows:

ARTICLE I: For and in consideration of the payments and agreements hereinafter mentioned to be made and performed by City, Contractor agrees to perform and complete all of the work for the project entitled Water Service Lateral Replacement in Hampshire Village Project (WA255 ) in a good and workmanlike manner in accordance with all plans and specifications therefor, to furnish at Contractor’s sole cost and expense all tools, equipment, labor, and materials necessary therefor, except such materials and equipment as are expressly stipulated to be furnished by City, and to do everything required by the Contract Documents.

ARTICLE II: Contractor shall be responsible for furnishing all labor, materials, equipment, tools, and services, furnishing and removing all plants, temporary structures, tools, and equipment, and doing everything required by this Agreement and by the Contract Documents. Contractor shall also be responsible for all losses and damages arising out of the performance of the Work, from the action of the elements, or from any unforeseen difficulties that may arise during the prosecution of the Work until its acceptance by City; for all risks of every description associated with the Work; and for all expenses resulting from the suspension or discontinuance of the Work. City shall pay Contractor, and Contractor shall receive, for completing the Work in accordance with the requirements of the Contract Documents and in full compensation therefor, the price named in the Bid Proposal. Subject to any additions or deductions that may be made by change order or amendment, and any penalties or damages that may be assessed against Contractor, Contractor shall receive a total contract amount of Six Hundred Twenty-Nine Thousand Two Hundred Ninety-Five Dollars and Forty-Four Cents ($629,295.44) for completion of the contract work.

ARTICLE IV: Contractor shall begin work within fifty-five (55) calendar days after receiving a Notice to Proceed from the City and the work shall be completed within Forty-Five (45) working days. If the work is not completed within said time period, liquidated damages shall apply.

ARTICLE V: The Notice Inviting Bids, the Summary of Work, the Instructions to Bidders, the Bid Documents, the Required Post -Bid Documents, the General Provisions, the Special Provisions, the Technical Specifications, and all other drawing, plans, or specifications for the Work (collectively, “Contract Documents”) are hereby incorporated into and made part of this Agreement.

ARTICLE VI: Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of 361
litigation) of every nature arising out of or in connection with Contractor's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City. Should conflict of interest principles preclude a single legal counsel from representing both City and Contractor, or should City otherwise find Contractor’s legal counsel unacceptable, then Contractor shall reimburse the City its costs of defense, including without limitation reasonable attorneys’ fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

ARTICLE VII: No officer or employee of the City shall have any financial interest in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects his financial interest or the financial interest of any corporation, partnership or association in which he is interested, in violation of any State statute or regulation. Similarly, Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

ARTICLE IX: Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitut e a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

ARTICLE X: No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.

ARTICLE XI: The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

ARTICLE XII: In the course of its work under this Agreement, the Contractor, its agents and employees shall be bound by and comply with all applicable federal, state and local laws and requirements.

362
IN WITNESS WHEREOF, the parties hereto have caused this contract to be executed on the day and year first above written.

Approved as to Form: Approved as to Content:

City Attorney Hye Jin Lee, PE
Director of Public Works

G&A Nelos Construction, Inc.

Dated: By:

(Signature)

Name:
(Please Type or Print Name)
(Signature must be notarized) Title:
(Please Type or Print Title)

CITY OF CHINO

Dated:

Linda Reich, City Manager

ATTEST:

Natalie Gonzaga, City Clerk

Date

363

MEMORANDUM

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES

SUBJECT
..titl e
Introduction of Ordinance 2025-003 – Zoning Ordinance Amendment (PL25-0031). ..end

RECOMMENDATION
..recommendation
1) Conduct a Public Hearing; 2) approve the introduction of Ordinance No. 2025 -003, a proposed amendment to Title 20 (Zoning) of the Chino Municipal Code, consisting of modifications and additions to Chapter 20.06 (Commercial Land Uses), Chapter 20.07 (Industrial Land Uses), Chapter 20.23 (Administration), and Chapter 20.24 (Glossary), to be read by number and title only, and waive further reading of the Ordinance. ..body

FISCAL IMPACT
There is no fiscal impact resulting from these changes to the Zoning Code. This i tem is a comprehensive update to assist in the implementation of the Zoning Code and does not involve any future expenditures.

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:
 Superior Customer Service
 Financial Stability
 Responsible Long-Range Planning

Revenue:

Expenditure:

Transfer In: Transfer Out:
364
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: INTRODUCTION OF ORDINANCE 2025 -003 - ZONING ORDINANCE AMENDMENT (PL25-0031).

PAGE: 2

BACKGROUND
The last Zoning Code update was approved by the City Council on April 18, 2023. The City of Chino is now pursuing amendments to its zoning ordinances to allow greater flexibility in permitted land uses in commercial locations. These updates are designed to align more closely with evolving economic trends and community priorities, with the objective of supporting business attraction, retention, and expansion citywide. By modernizing and expanding certain use allowances, the City seeks to cultivate a more dyn amic and business-friendly environment that promotes new business development, drives job creation, supports local entrepreneurship, and enhances overall economic vitality. These proposed changes are part of a multi -faceted approach to strengthen the City’s long-term fiscal health through increased sales tax generation and reinforcing Chino’s economic resilience. This effort underscores the City of Chino’s commitment to forward -thinking planning and sustainable economic development that benefits both residents and the broader business community.

The Zoning Code generally defines uses as being permitted by right, permitted by Administrative Approval (AA), or permitted with a Special Conditional Use Permit (SCUP). The AA process is reviewed by staff with appro val being granted by the Director of Development Services. The SCUP process follows the same review process by staff but requires approval by the Planning Commission at a public hearing. The SCUP process can be both time -consuming and costly for prospectiv e business owners seeking to establish a business within the City of Chino. To address this, the proposed Zoning Code amendments aim to streamline the approval process, enhance efficiency, and support business attraction and retention by modifying the approval process for commercial uses that have become more common and do not necessitate a stricter approval process. The draft ordinance is attached to City Council Ordinance No. 2025- 003, with additions to the ordinance in bold red and deletions in strikethrough. Notations within the use regulation tables located within the draft ordinance have the following meanings:
 Permitted uses. A "P" means that a use is permitted by right in the res pective zoning district and is not subject to discretionary review and approval.  Conditionally permitted uses. A "C" means that a use requires approval of a special conditional use permit.
 Administratively permitted uses. An "A" means that a use requires a pproval through an administrative action.
 Not permitted. A "■" in a cell means that a use is not allowed in the respective zoning district.

The Planning Commission reviewed the proposed amendment on May 7, 2025, and recommended approval of the ordinance with no changes to the City Council by a 7-0 vote.

ISSUES/ANALYSIS
The following is a summary of the requested changes to the Zoning Code:

Chapter 20.06 (Commercial Zoning Districts)
Currently, the City has five commercial zoning districts which are Comme rcial Neighborhood (CN), Commercial General (CG), Commercial Office (CO), Commercial Regional (CR) and Commercial Service (CS). These districts range from small neighborhood commercial centers to larger regional centers. Table 20.06 -1 includes all land u ses permitted in commercial zones 365
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: INTRODUCTION OF ORDINANCE 2025 -003 - ZONING ORDINANCE AMENDMENT (PL25-0031).

PAGE: 3

as well as the approval process. The following updates are proposed to Table 20.06 -1, Land Use Regulations for Commercial Zoning Districts:
 Trade and Vocational Schools are currently permitted with approval of a SCUP in all commercial zones. The proposed amendment would permit this use in all commercial zones subject to an AA.
 Gym/Athletic Instruction facilities are currently classified in three distinct categories which are major, minor, and small/boutique fitness studi o. Major gym/athletic facilities are larger in nature and currently conditionally permitted in the CG, CO, CR and CS zoning districts. The proposed amendment would allow a major gym use through an AA in the CG, CO and CS zoning districts and by right in the CR zone. Minor facilities are currently permitted with an AA in all commercial zoning districts. The proposed amendment would maintain the AA requirement in the CN zoning district but permit minor facilities by right in all other commercial zones. S mall boutique fitness studios currently require an AA in the CN, CO and CS zoning districts and the use is permitted by right in the CG and CR zones. The proposed amendment would permit this use by right in all commercial zoning districts.
 Retail, Thrift and Secondhand Stores are currently administratively permitted in the CG and CS zones and conditionally permitted in the CR zone. The proposed amendment will administratively permit the use in the CR zone, consistent with the permitting process in the other two zoning districts. The use is not permitted in either the CN or CO zoning district and will remain not permitted in these zones.  Veterinary Clinics currently require a SCUP in the CG, CR and CS zones and are not permitted in the CN or CO zones. The proposed amendment would permit this use by right in all commercial zones.
 Automobile Rental is currently only permitted in the CG and CS zones with an AA, if there are 10 or fewer vehicles parked on -site. The proposed amendment will allow this use with an AA in all commercial zones subject to the requirement of 10 or fewer vehicles parked on-site. A SCUP will be required for facilities with more than 10 cars.  Vehicle Repair and Maintenance is currently permitted by an AA in the CG and CS zone and permitted with a SCUP in the CR zone. The proposed amendment would update the approval process in the CR zone to an AA, consistent with the other commercial zones where the use is permitted.
 Restaurants and drive -thru restaurants currently require a SCUP in the CO and CS zoning districts. The proposed amendment would update this use to permitted by right in these zones, which is consistent with the approval process in other commercial zoning districts. A drive -thru in the CN zoning district will continue to re quire approval of a SCUP.
 Banquet Facilities are currently permitted by SCUP in the CG, CR and CS zoning districts. The proposed amendment will allow the use with an AA in the above zones.

The use will continue to not be permitted in the CN and CO zoning districts.  Hotels and Motels are currently conditionally permitted in the CG, CO and CR zones.

The proposed amendment will permit the use by right in the above zones. 366
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: INTRODUCTION OF ORDINANCE 2025 -003 - ZONING ORDINANCE AMENDMENT (PL25-0031).

PAGE: 4

 Personal Services is currently permitted by right in all commercial zones except for th e CO zone, which requires SCUP. The proposed amendment will update the approval in the CO zone to permitted by right.
 Tattoo and Piercing Establishments are currently classified as Personal Service, Restricted and conditionally permitted in the CS zone. The proposed amendment will remove tattoo and piercing from the definition of Personal Service, Restricted in the glossary of the Zoning Code (Chapter 20.24) and establish this use as a land use in Table 20.06-1 as permitted in the CS commercial zone.
 Commercial Recreation is currently permitted by SCUP in the CG and CR zones and not permitted elsewhere. The proposed amendment would allow this use through an AA in the CG, CO and CS zoning districts and by right in the CR zone. Additionally, the use Golf Courses, Miniature is proposed to be eliminated from the land use table as it falls within the definition of Commercial Recreation.

Chapter 20.07 (Industrial Zoning Districts)
Currently the City has four industrial zoning districts which are Business Park (BP ), Light Industrial (M1), General Industrial (M2) and AD (Airport Development). These districts range from light to heavy industrial uses and also include uses at the Chino Airport. Table 20.07 -1 includes all land uses permitted in industrial zones as wel l as the approval process. The following updates are proposed to Table 20.07 -1 Land Use Regulations for Industrial Zoning Districts:
 Vehicle sales are currently not permitted in any industrial zoning district. There have been requests in the past to loca te a vehicle sales office within industrial zones for specialized auto vehicle sales. The proposed amendment establishes the land use Vehicle Sales Office and permits the use by right in the BP, M1, and M2 industrial zones.

The use will remain unpermitted in the AD zone.
 Hotels and Motels are currently permitted by right in the AD zone only. The proposed amendment would now allow hotels and motels subject to a SCUP in all industrial zones, including the AD zone.

Section 20.23.100 (Variances)
 The City’s municipal code currently provides a variance procedure, which is to provide a method whereby minor departures from the application of development standards within the zoning code are permitted, when the strict application of the code would deprive a property a development right possessed by other properties in the same zone and vicinity. A minor variance currently allows a deviation of no more than 25 percent from a measurable standard, while a major variance allows a deviation of more than 25 percent of a m easurable standard. The proposed amendment would establish the deviation threshold to no more than 50 percent for a minor variance and more than 50 percent for a major variance. These flexible applications can further accommodate unique site conditions by increasing their development capabilities, all while maintaining the overall intent of the City of Chino’s Municipal Code. This will create equal and consistent development opportunities for properties throughout the City.

PUBLIC NOTICE
367
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: INTRODUCTION OF ORDINANCE 2025 -003 - ZONING ORDINANCE AMENDMENT (PL25-0031).

PAGE: 5

A notice was published in the Chino Champion on May 24, 2025. The City also sent information out on the City’s social media platforms. The notice exceeds the legal noticing requirements and is adequate in scope for this project. To date, no comments have been received.

ENVIRONMENTAL REVIEW
The Zone Ordinance Amendment is exempt from the provisions of the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(3), Common Sense Exemption, in that it can be seen with certainty that there is no possibility for this action to have a significant effect on the environment, individual development applications will be reviewed under CEQA as they are proposed, and the changes are consistent with the goals and policies of the General Plan and will bring the City’s code into compliance with State and Federal Laws.

368

ORDINANCE NO. 2025-003

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, AMENDING SELECTED PROVISIONS OF
THE ZONING CODE (TITLE 20 OF THE MUNICIPAL CODE) OF
THE CITY OF CHINO . PL25-0031 (ZONE ORDINANCE

AMENDMENT)

The City Council of the City of Chino, California, does hereby ordain as follows:

Section 1. Table 20.06-1 of the Chino Municipal Code is hereby revised as follows with the remainder of the Table remaining unchanged (additions in bold red; deletions in strikethrough):

TABLE 20.06-1 LAND USE REGULATIONS FOR COMMERCIAL ZONING DISTRICTS Uses
Zoning Districts Additional
Regulations CN CG CO CR CS
Residential Uses
Group Homes and Facilities ■ C ■ ■ ■
Senior Housing Projects ■ C C ■ C Section

20.21.340
Congregate Care Facilities ■ C C ■ C Section

20.21.460
Live/Work ■ ■ ■ ■ C Section

20.21.060
Residential Care Facilities, Small ■ C C ■ ■
Residential Care Facilities, Large ■ C C ■ ■ Section

20.21.070
Caretaker Quarters ■ ■ ■ ■ P Section

20.21.110
Public and Quasi-Public Uses
Places of Assembly
Places of Worship, Community Scale C C C C ■
Places of Worship, Regional Scale ■ C ■ C ■
Places of Worship, Small Storefront A A A A ■
Places of Worship, Large Storefront A A A A ■
Clubs and Lodges C C C C ■
Cultural and Institutional Uses
Theaters and Auditoriums ■ C ■ C ■
Libraries C C C C ■
Museums and Art Galleries C C C C C
Botanical and Zoological Gardens ■ C ■ ■ ■
Health Services
Hospitals ■ C C C C
Medical Clinics and Labs P P P P P
Medical Offices P P P P P
Medical Marijuana Dispensary ■ ■ ■ ■ ■
Educational Uses
Schools, Public or Private ■ C C ■ ■
Trade and Vocational Schools ■ A C A C A C A ■ A
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Uses
Zoning Districts Additional
Regulations CN CG CO CR CS
Schools for Personal Enrichment and
Fulfillment
A A C A A Section

20.21.180
Gym/Athletic Instruction, Minor A A P C P A P A Section

20.21.440
Gym/Athletic Instruction, Major ■ C A C A C P C A Section

20.21.440
Gym/Athletic Instruction,
Small/Boutique Fitness Studio
A P P A P P A P Section

20.21.440
Child/Adult Care Services
Child Day Care Centers C C C C ■ Section

20.21.090
Day Care Facilities, Employer
Provided On-site
C C C C ■
Day Care Facilities, Adult C C C C ■
Other Community Services
Emergency Shelters ■ C ■ ■ P Section

20.21.080
Social Services, Charitable Institutions
and Services

C C C C C
Public Safety Facilities C C C C C
Commercial Uses
Retail
Retail, General P P C P P
Cart/Kiosk A A A A ■ Section

20.21.150
Retail, Thrift and Secondhand Stores ■ A P ■ C A A P
Animal Sales and Services P P ■ P P
Veterinary Clinics ■ P C P ■ P C P C P
Guns and Ammunition Sales ■ C ■ C ■
Alcoholic Beverage Sales A/C A/C ■ A/C A/C Section

20.21.270
Pawn Shops ■ ■ ■ ■ C
Adult Oriented Businesses ■ ■ ■ ■ C
Mobile Homes Sales ■ ■ ■ ■ C
Swap Meets ■ ■ ■ ■ C
Vehicle Sales and Services
Automobile and Vehicle Sales and
Leasing
■ C ■ C C Section

20.21.250
Automobile Rental ■ A A/C
A
■ A ■ A A/C
A
Section

20.21.410
Truck and Trailer Rental ■ ■ ■ ■ C Section

20.21.410
Vehicle Parts and Accessories Sales P P ■ P P
Automobile, Light Truck and Van
Cleaning
■ C ■ C C
Bus and Large Truck Cleaning ■ ■ ■ ■ ■
Vehicle Repair and Maintenance ■ A ■ C A A Section

20.21.240
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Uses
Zoning Districts Additional
Regulations CN CG CO CR CS
Bus and Large Truck Repair and
Maintenance
■ ■ ■ ■ C
Paint or Auto Body Repair ■ C ■ ■ C
Vehicle Towing Service ■ ■ ■ ■ P
Gas and Service Stations C P C P P Section

20.21.230
Eating and Drinking Establishments
Restaurant P P C P P C P
Restaurant, Drive-Thru Facility C P C P P C P Section

20.21.170
Bars, Nightclubs and Lounges ■ C ■ C C Section

20.21.280
Cigar Lounges, Vape Lounges and
Hookah Bars
■ C ■ C C Section

20.21.320
Microbrewery and Microdistillery ■ C ■ C C 20.21.270 Banquet Facilities ■ C A ■ C P C A
Transient Occupancy
Bed and Breakfast ■ C ■ C ■
Hotels and Motels ■ C P C P C P ■
Commercial Services
Offices, Professional/Business P P P P P
Offices, Service P P P P P
Personal Services P P C P P P
Personal Services, Restricted ■ ■ ■ ■ C
Tattoo and Piercing Establishment ■ ■ ■ ■ P
Business Support Services P P P P P
Banks, Retail P P P P P
Check Cashing Services ■ ■ ■ ■ C Section

20.21.300
Payday Advance Services ■ P ■ P P
Cyber Cafes ■ C ■ C C Section

20.21.310
Day Spas ■ C C C ■
Massage Establishments C C C C C Chapter 5.24
Funeral Parlors, Mortuaries and
Crematories
■ C ■ ■ C
Fortunetelling ■ P ■ ■ P
Entertainment-Related Services
Motion Picture Production and
Distribution Services
■ C C C C
Recording Studios ■ P ■ P P
Broadcasting Studios ■ C C C C
Recreational Uses
Commercial Recreation ■ C A ■ A C P ■ A
Golf Courses, Miniature ■ C ■ C ■
Parks and Recreational Facilities P P P P P
Sports Stadium or Arenas ■ ■ ■ C ■
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Uses
Zoning Districts Additional
Regulations CN CG CO CR CS
Amusement or Theme Park ■ ■ ■ C ■
Industrial
Manufacturing and Processing
Manufacturing and Processing, Light ■ ■ ■ ■ P
Food Preparation ■ P ■ P P
Recycling
Recycling Facilities, Small Collection A A ■ A A Section

20.21.360
Recycling Facilities, Large Collection ■ ■ ■ ■ ■ Section

20.21.360
Recycling Facilities, Reverse Vending
Machines
A A ■ A A Section

20.21.360
Warehousing and Storage
Warehousing, Very Light (<25,000 sq
ft)
■ ■ ■ ■ P
Outdoor Storage, Incidental A A A A A Section

20.21.200
Outdoor Storage, as a Primary Use ■ ■ ■ ■ ■ Section

20.21.200
Other Industrial
Equipment Rental and Sales, Light
Equipment
■ C ■ C P Section

20.21.220
Transportation, Communications
and Utilities

Transportation Terminals ■ C C C C
Parking Facilities ■ C C C C
Utilities, Major C C ■ C C
Utilities, Minor C C C C C
Communications Facilities, Minor A A A A A Chapter 20.22 Communications Facilities, Major C C C C C Chapter 20.22 Solar Panels, Incidental A A A A A Section

20.10.070
Wind Turbines, Incidental ■ ■ ■ C ■ Section 20.22
Agricultural Uses, Activities and
Facilities

Crop Cultivation A A A A A Section

20.21.020
Agricultural Product Stands I I I I I Section

20.21.020

Section 2. Table 20.07-1 of the Chino Municipal Code is hereby revised as follows with the remainder of the Table remaining unchanged (additions in bold red; deletions in strikethrough):

TABLE 20.07-1 LAND USE REGULATIONS FOR INDUSTRIAL ZONING DISTRICTS Uses
Zoning Districts Additional
Regulations BP M1 M2 AD
372
ORDINANCE NO. 2025-003

Page 5 of 7 ends

Commercial Uses
Retail
Vehicle Sales Office P P P ■
Transient Occupancy
Hotels and Motels ■ C ■ C ■ C P C

Section 3. Section 20.23.100 of the Chino Municipal Code is hereby revised a s follows (additions in bold red; deletions in strikethrough):

20.23.100 – Variances

A. Minor Variance.

1. Purpose and Intent. The purpose of the minor variance procedure is to provide a method whereby minor departures from the strict application of the devel opment standards contained in this Zoning Code is permitted, when the strict application of such would deprive a property a development right possessed by other property in the same zone and vicinity.

2. Applicability.

a. When the strict and literal interpretation, and enforcement of this Zoning Code would result in practical difficulties, unnecessary hardships, or results inconsistent with the general purpose of this Zoning Code, the Director of Community Development shall have the authority to grant a variance from the provisions of this Zoning Code, provided that the addition will not result in a deviation of more than 25 50 percent from a measurable standard. In no case, however, shall a variance be granted which authorizes a use, activity or property right that is not expressly permitted by this Zoning Code.

B. Major Variance.

1. Purpose and Intent. The purpose of the major variance procedure is to provide a method whereby departures from the strict application of the development standards contained in this Zon ing Code is permitted, when the strict application of such would deprive a property a development right possessed by other property in the same zone and vicinity.

2. Applicability

a. When the strict and literal interpretation, and enforcement of this Zoning Code would result in practical difficulties, unnecessary hardships, or results inconsistent with the general purpose of this Zoning Code, the Planning Commission shall have the authority to grant a variance from the provisions of this Zoning Code, if the ad dition will result in a deviation of more than 25 50 percent from a measurable standard. In no case, however, shall a variance be granted which authorizes a use, activity or property right that is not expressly permitted by this Zoning Code.
373
ORDINANCE NO. 2025-003

Page 6 of 7 ends

Section 3. Section 20.24.020 of the Chino Municipal Code is hereby revised as follows with the remainder of the section remaining unchanged (deletions in bold strikethrough):

20.24.020 – Definitions

Personal Services, Restricted . An establishment other than a profe ssional office that provides services as a primary use which are typically limited by specific use attributes or appearance, including but not limited to tattoo parlors, body piercing, pawnshops, spas and hot tubs for hourly rental, massage establishments , and adult oriented businesses as defined in Title 5 of the Municipal Code.

Section 6. The City Council finds that this Ordinance is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3), Common Sense Exemption, in that it can be seen with certainty that there is no possibility for this action to have a significant effect on the environment, and individual development applications will be reviewed under CEQA as they are proposed.

Section 12. Severability.

If any section, subsection, sentence, clause, phrase, or portion of this Ordinance, or the application thereof to any person or circumstances, is, for any reason, held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unc onstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, s entence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional.

Section 13. This Ordinance shall be in ful l force and effect thirty (30) days after its second reading and adoption.

Section 14. Certification. The City Clerk of the City of Chino shall certify to the passage and adoption of this Ordinance and shall cause the same to be published in the Chino Champion, a newspaper of general circulation, within said City in accordance with the provisions of the Government Code.

PASSED, APPROVED AND ADOPTED THIS 17TH DAY OF JUNE 2025.

By:

EUNICE M. ULLOA, MAYOR

ATTEST:

By:
374
ORDINANCE NO. 2025-003

Page 7 of 7 ends

NATALIE GONZAGA, CITY CLERK

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) §

CITY OF CHINO )

I, Natalie Gonzaga , City Clerk of the City of Chino , do hereby certify that the foregoing Ordinance was duly adopted by said City Council at a regular meeting held on the 17th day of June 2025 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

By:

NATALIE GONZAGA, CITY CLERK
375

MEMORANDUM

CITY OF CHINO

FINANCE DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE

SUBJECT
..titl e
Annexation No. 9 of Territory into Existing Community Facilities District No. 2003-03 Improvement Area 5.
..end

RECOMMENDATION
..recommendation
1) Conduct a Public Hearing, continued from the May 20, 2025 City Council meeting ; 2) adopt Resolution No. 2025-017 calling a special election for the purpose of approving an annexation into Improvement Area 5 of the Community Facilities District No. 2003 -3; 3) adopt Resolution No. 2025-018, declaring results of the special election; and 4) authorize the City Manager to execute all documents on behalf of the City.

..body

FISCAL IMPACT
Annexation of the property will initially add an additional $2,102.50 of Special Taxes annually, to be levied within Improvement Area 5 of CFD 2003 -3 to be used for certain municipal services described in the Resolution of Formation for CFD 2003 -3. As the balance of the property develops, additional revenues from the planned multi-family development will be levied annually for the same purpose. The projected revenue from the planned multi -family development will be between $108 and $138, per developed unit. The aggregate projected annual revenue will vary based upon the final number and size of multi-family units constructed.

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
 Financial Stability

Revenue: 1001000-51200

Expenditure:

Transfer In: Transfer Out:
376
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: ANNEXATION NO. 9 OF TERRITORY INTO EXISTING COMMUNITY FACILITIES DISTRICT NO. 2003-03 IMPROVEMENT AREA 5.

PAGE: 2

BACKGROUND
The City’s General Plan requires the City to ensure that new development within the City has a fiscally neutral effect on the General Fund. That principle has been applied to all new developments in The Preserve.

The City formed CFD 2003-3 in The Preserve to pay for certain public facilities and necessary ongoing municipal services authorized by the Mello -Roos Community Facilities Act of 1982 and the formation documents with respect to CFD 2003-3. In addition, the City formed Improvement Area 5 of CFD 2003 -3 for the purpose of levying special taxes exclusively for payment of municipal services and administrative expenses for Improvement Area 5 (note: no public facilities are authorized to be financed through Improvement Area 5 and no CFD bonds will be issued payable by Improvement Area 5 Special Taxes). The Rate and Method of Apportionment for Improvement Area 5 (RMA) includes the Special Tax rates for residential and non-residential properties. Authorized municipal services payable from Improvement Area 5 Special Taxes include maintenance of parks, parkways and open space, flood and storm protection, operation of storm drainage systems, and public safety services.

On April 15, 2025, City Council adopted Resolution No. 2025 -013 declaring the City of Chino’s intention to annex territory into Improvement Area 5 of Community Facilities District No. 2003 -3 for municipal services and establishing May 20, 2025 as the Public Hearing date. The City Council may either conclude the Public Hearing on May 20, 2025, or may continue the Pub lic Hearing for up to 30 days. At its meeting on May 20, 2025, the City Council opened the Public Hearing and unanimously voted (4-0-1, with Mayor Ulloa absent) to continue the matter to the next regular meeting on June 3, 2025, at 6:00 PM, to ensure notic ing requirements are met for the publication of the public hearing notice.

ISSUES/ANALYSIS
The property owner petitioning the City Council to annex into Improvement Area 5 is Chino Preserve Development Corporation, a California corporation (the “O wner”), which is controlled by Lewis Management Corp., a Delaware corporation (“Lewis”). The Landowner is seeking to annex into Improvement Area 5 of CFD 2003 -3 as a condition of Resolution No. 2005 -14 and subsequent resolutions, which require that all de velopment projects within The Preserve annex into an existing CFD to fund necessary municipal services.

Upon adoption of Resolution No. 2025 -013, a notice of Public Hearing was published in the local newspaper on May 17, 2025, and the continued public hearing notice was posted at the Council Chambers. Additionally, the full notice was sent to the Landowners as required by law.

The Ballot and waiver form was sent to the Landowner. The waiver form allows the Landowner to waive the standard 90 -day waiting period between the calling of the special election and the actual election, along with certain other procedures. The Landowner has signed the waiver to ensure the election occurs on an expedited basis.

The annexation into Improvement Area 5 of CFD 2003 -3 shall be subject to approval of the qualified electors within the territory proposed to be annexed into Improvement Area 5 of CFD 2003-3 at a special election.

After the public hearing has been conducted, an election is held for the Landowner to cast its ballot. The ballot is tallied, and if the annexation is approved by the Landowner, the City adopts 377
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: ANNEXATION NO. 9 OF TERRITORY INTO EXISTING COMMUNITY FACILITIES DISTRICT NO. 2003-03 IMPROVEMENT AREA 5.

PAGE: 3

a resolution declaring the result of the special election and ordering annexation of the property into Improvement Area 5 of CFD 2003-3.

Attachments: Resolution No. 2025-017, Exhibit A
Resolution No. 2025-018
Annexation Boundary Map

378

1 RESOLUTION NO. 2025-017

A RESOLUTION OF THE CITY COUNCIL OF CITY OF CHINO

AUTHORIZING THE ANNEXATION OF CERTAIN TERRITORY TO
IMPROVEMENT AREA 5 OF COMMUNITY FACILITIES DISTRICT
NO. 2003-3 OF THE CITY OF CHINO, AUTHORIZING THE LEVY OF

SPECIAL TAXES, AND CALLING ELECTIONS THEREIN
(ANNEXATION NO. 9)
WHEREAS, the City Council (the “City Council”) of City of Chino (the “City”) has heretofore adopted Resolution No. 202 5-013 on April 15, 2025 (the “Resolution of Intention to Annex”) stating its intention to annex certain territory (the “ Proposed Annexation Area”) to Improvement Area 5 (“Improvement Area 5”) 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 Ch apter 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 to Annex setting forth a description of the Proposed Annexation Area to Improvement Area 5 of the Community Facilities District and the services (the “Services”) and costs of the Community Facilities District to be financed by Improvement Area 5 of the Community Facilities District, and the rate and method of apportionment of the special tax for Impro vement Area 5 of the Community Facilities District proposed to be levied within the Proposed Annexation Area is on file with the Clerk of the City (the “City Clerk”) and is incorporated herein by reference; and WHEREAS, a notice was published in a newspape r of general circulation at least seven (7) days prior to the public hearing on June 3, 2025 with respect to the matters described in the Resolution of Intention to Annex and notice was mailed to all owners of the land within the Proposed Annexation Area a s required by law relative to the intention of the City Council to annex the Proposed Annexation Area to Improvement Area 5 of the Community Facilities District and to levy a special tax within the Proposed Annexation Area; and WHEREAS, on May 20, 2025 , th is City Council opened a noticed public hearing and continued the public hearing to the next regular meeting of the City Council on June 3, 2025, as required by law relative to the proposed annexation of the Proposed Annexation Area to Improvement Area 5 of the Community Facilities District and the levy of special taxes therein for the payment of the Services and costs of the Community Facilities District; and WHEREAS, at the June 3, 2025 public hearing all persons desiring to be heard on all matters pertai ning to the proposed annexation of the Proposed Annexation Area to Improvement Area 5 of the Community Facilities District, and the levy of the special taxes within the Proposed Annexation Area were heard and a full and fair hearing was held; and WHEREAS, at the public hearing, evidence was presented to the City Council on the matters before it, and the proposed annexation of the Proposed Annexation Area to Improvement Area 5 of the Community Facilities District and the levy of special taxes within the Proposed Annexation Area was not precluded by a majority protest of the type described in Section 53339.5 of the Act, and this City Council at the conclusion of the hearing is fully advised as to all matters relating to the annexation of the Proposed Annexatio n Area to Improvement 379

2 Area 5 of the Community Facilities District and the levy of the special taxes in the Proposed Annexation Area; and
WHEREAS, the City Council has determined that there have been fewer than twelve registered voters residing in the Propo sed Annexation Area for the period of 90 days prior to May 20, 2025 and that the qualified electors in the Proposed Annexation Area are the landowners within the Proposed Annexation Area; and
WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the annexation of the Proposed Annexation Area to Improvement Area 5 of the Community Facilities District and to call an election within the Proposed Annexation Area to authorize (i) the annexation of the Propose d Annexation Area to Improvement Area 5 of the Community Facilities District, and (ii) the levy of special taxes pursuant to the applicable rate and method of apportionment of the special tax for Improvement Area 5 of the Community Facilities District, as set forth in Exhibit C to the Resolution of Intention to Annex (the “Improvement Area 5 Rate and Method”).

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 annexation of the Proposed Annexation Area to Improvement Area 5 of the Community Facilities District is hereby authorized pursuant to the Act. The City Council hereby finds and determines that all prior proceedings taken with respect to the ann exation of the Proposed Annexation Area to Improvement Area 5 were valid and in conformity with the requirements of law, including the Act.

Section 3. The Improvement Area 5 Rate and Method is described in detail in Exhibit C to the Resolution of Intention to Annex and incorporated herein by this reference, and the City Council hereby finds that Exhibit C to the Resolution of Intention to Annex contains sufficient detail to allow each landowner within the Proposed Annexation Area to estimate the maximum amount that may be levied against each parcel.

Section 4. Written protests against the annexation of the Proposed Annexation Area have not been filed by one -half or more of the registered voters or six registered voters, whichever is more residing within Improvement Area 5, wi thin the boundaries of the Proposed Annexation Area or by the property owners of one -half or more of the area of land within the boundaries of the Proposed Annexation Area. The City Council hereby finds that the proposed annexation has not been precluded by a majority protest pursuant to Section 53339.6 of the Act.

Section 5. An election is hereby called for within the Proposed Annexation Area on the proposition of annexing the Proposed Annexation Area to Improvement Area 5 and the levying of the special tax for Impr ovement Area 5 in accordance with the Improvement Area 5 Rate and Method on the property within the Proposed Annexation. The proposition to be placed on the ballot is attached hereto as Exhibit A.

Section 6. The date of the foregoing election within the Proposed Improvement Area shall be May 20, 2025 , or such later date as is consented to by the City Clerk and the landowners within the Proposed Annexation Area. The City Clerk shall conduct the election.

Except as otherwise provided by the Act, the election shall be conducted by personally 380

3 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 of Chino insofar as such provisions are determined by the City Clerk to be applicable.

It is hereby found that there are not more than twelve registered voters within the Proposed Annexation Area, and, pursuant to Section 53326 of the Act, each lando wner 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 or she owns within the Proposed Annexation Area.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of June 2025.

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

381

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 3rd day of June 2025, by the following votes:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS

NATALIE GONZAGA, CITY CLERK
Attachments: Exhibit A

382

A-1

EXHIBIT A

SAMPLE BALLOT

SPECIAL TAX ELECTION

CITY OF CHINO

ANNEXATION OF TERRITORY TO
IMPROVEMENT AREA 5 OF
COMMUNITY FACILITIES DISTRICT NO. 2003-3
(ANNEXATION NO. 9)

(June 3, 2025)
This ballot represents __ votes.

To vote, stamp a cross (+) 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 City of Chino and obtain another.

PROPOSITION: Shall the territory described in Resolution No. 202 5-013 of the City Council of the City of Chino (the “Resolution of Intention to Annex”) as the Proposed Annexation Area be annexed to Improvement Area 5 of Community Facilities District No. 2003 -3 of the City of Chino, and shall a special tax with a rate and me thod of apportionment as provided in Exhibit C to the Resolution of Intention to Annex for Improvement Area 5 of Community Facilities District No. 2003-3 be levied in the Proposed Annexation Area to pay for the Services and other purposes described in the Resolution of Intention to Annex?

YES______
NO_______

383

1 RESOLUTION NO. 2025-018

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO DECLARING ELECTION RESULTS FOR ANNEXATION
NO. 9 TO IMPROVEMENT AREA 5 OF COMMUNITY
FACILITIES DISTRICT NO. 2003-3
WHEREAS, the City Council (the “City Council”) of the City of Chino (the “City”) has heretofore conducted proceedings in accordance with Article 3.5 (commencing with Section 53339) of Chapt er 2.5 of Part 1 of Division 2 of Title 5 of the Government Code, commonly known as the “Mello -Roos Community Facilities Act of 1982” (the “Act”) for the annexation of approximately 9.25 acres of land within portions of Assessor Parcel Number 1057-441-04-0000 to Improvement Area 5 (“Improvement Area 5”) of Community Facilities District No. 2003-3 of the City of Chino (the “Community Facilities District”), including conducting a public hearing on June 3, 2025, continued from the May 20, 2025 City Council mee ting, pursuant to Section 53339.5 of the Act; and
WHEREAS, at the conclusion of said public hearing, the City Council adopted a resolution calling a special election for June 3, 2025 and submitting to the qualified electors of the territory to be annexed t o Improvement Area 5 of the Community Facilities District the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a res ult of the development of said real property as provided in the form of special election ballot attached thereto as Exhibit A; and
WHEREAS, a Certificate of Election Results, dated June 3, 2025, executed by the City Clerk, has been filed with this City Cou ncil, certifying that a completed ballot has been returned to the Clerk for each landowner -voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and
WHEREAS, this City Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election;

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHINO:

Section 1. Recitals. This City Council finds and determines that the foregoing recitals are true and correct.

Section 2. Ballot Measure. This City Council hereby finds, determines and declares that the ballot measure submitted to the qualified electors of the territory to be annexed (the “Annexed Territory”) to Improvement Area 5 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Act.

Section 3. Declaration of Results . All votes voted in the special election on the proposition of the annual levy of special taxes within the Annexed Territory to pay the costs of the services to be provided by the Community Facilities District were voted in favor thereof, and such proposition carried.
384

2 Section 4. Annexation. This City Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Act, the City Council is authorized to determine that the Annexed Te rritory has been added to and become a part of Improvement Area 5 of the Community Facilities District with full legal effect, and the City Council is also authorized, pursuant to said Section 53339.8 of the Act, to annually levy special taxes within the A nnexed Territory to pay the costs of the services to be provided by the Community Facilities District as specified in Resolution No. 2025-013 adopted by the City Council on April 15, 2025 (the “Resolution of Intention to Annex”). The boundaries of the Ann exed Territory are shown on the map entitled, “Annexation Map No. 9 Community Facilities District No. 2003 -3 Improvement Area No. 9 of the City of Chino, County of San Bernardino, State of California,” a copy of which was recorded, on April 29 , 202 5 as Doc ument No. 20 25-0096769, in Book 92 of Maps of Assessment and Community Facilities Districts at Page 37, in the office of the San Bernardino County Recorder.

Section 5. Notice of Special Tax Lien . Pursuant to Section 53339.8 of the Act and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of San Bernardino an amendment of the notice of special tax lien and a map of the amended boundaries of the Community Facilities District reflect ing the Annexed Territory.

Section 6. Effect. This resolution shall take effect from and after its adoption.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of June 2025.

385

3 STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss.

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS

NATALIE GONZAGA, CITY CLERK
Attachments: Exhibit A

386

A-1

EXHIBIT A

SAMPLE BALLOT

SPECIAL TAX ELECTION

CITY OF CHINO

ANNEXATION OF TERRITORY TO
IMPROVEMENT AREA 5 OF
COMMUNITY FACILITIES DISTRICT NO. 2003-3
(ANNEXATION NO. 9)

(June 3, 2025)
This ballot represents __ votes.

To vote, stamp a cross (+) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distingu ishing marks are forbidden and make the ballot void.

If you wrongly mark, tear or deface this ballot, return it to the City Clerk of City of Chino and obtain another.

PROPOSITION: Shall the territory described in Resolution No. 2025-013 of the City Council of the City of Chino (the “Resolution of Intention to Annex”) as the Proposed Annexation Area be annexed to Improvement Area 5 of Community Facilities District No. 2003 -3 of the City of Chino, and shall a special tax with a rate and me thod of apportionment as provided in Exhibit C to the Resolution of Intention to Annex for Improvement Area 5 of Community Facilities District No. 2003-3 be levied in the Proposed Annexation Area to pay for the Services and other purposes described in the Resolution of Intention to Annex?

YES______
NO_______

387

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE PROPOSED BOUNDARY OF ANNEXATION NO. 9 TO IMPROVEMENT AREA NO. 5 OF COMMUNITY FACILITIES DISTRICT NO. 2003-3, CITY OF CHINO, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNIA, WAS APPROVED BY THE

CITY COUNCIL OF SAID CITY OF CHINO AT A REGULAR MEETING THEREOF HELD ON THE ______ DAY OF ________________, 2025, BY RESOLUTION NO. ______________________.
_____________________________________

CITY CLERK, CITY OF CHINO
SHEET 1 OF 1
M:\GIS-Assessment\Chino\Chino_CFD2003-3_IA5_Annex9.mxd

PINE AVE

MARKET ST
W

EST PRESERVE LOOP

THIS ANNEXATION 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 COUNTY
ASSESSOR'S MAPS FOR FISCAL YEAR 2024-25.

ANNEXATION MAP NO. 9

PROJECT

LOCATION
83 PINE AVE

KIMBALL AVE

CHINO-CORONA RD
EUCLID
AVE

BICKMORE AVE
GROVE
AVE

FERN AVE
COMMUNITY FACILITIES DISTRICT NO. 2003-3
IMPROVEMENT AREA NO. 5

OF THE CITY OF CHINO,

COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA

VICINITY MAP

NOT TO SCALE
0 200 400 600
Feet

SAN BERNARDINO COUNTY RECORDER'S CERTIFICATE

THIS MAP HAS BEEN FILED UNDER DOCUMENT NUMBER
__________________________ THIS _____ DAY OF
__________________ 2025 AT __________ M.

IN BOOK _________________ OF _______________________
AT PAGE _________________ AT THE REQUEST OF THE CITY
OF CHINO IN THE AMOUNT OF $________________________

CHRIS WILHITE

ASSESSOR-RECORDER-COUNTY CLERK

SAN BERNARDINO COUNTY
BY: ______________________________________

DEPUTY RECORDER

THIS MAP SHOWS THE BOUNDARIES OF THE AREA PROPOSED TO BE ANNEXED INTO IMPROVEMENT AREA NO. 5 OF COMMUNITY
FACILITIES DISTRICT NO. 2003-3 OF THE CITY OF CHINO, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNA, THE BOUNDARIES OF

WHICH COMMUNITY FACILITIES DISTRICT ORIGINAL BOUNDARY MAP WAS RECORDED AS INSTRUMENT NO. 2003-083346 IN BOOK 76 OF

MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGES 11-17. THE FIRST AMENDED BOUNDARY MAP WAS RECORDED AS INSTRUMENT NO. 2005-0195713 IN BOOK 78 OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGES 8-14, THE SECOND AMENDED BOUNDARY MAP WAS RECORDED AS INSTRUMENT NO.
2005-0719640 IN BOOK 78 OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGES 84-90, THE THIRD AMENDED
BOUNDARY MAP WAS RECORDED AS INSTRUMENT NO. 2008-0142286 IN BOOK 83 OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGES 79-85, AND THE FOURTH AMENDED BOUNDARY MAP WAS RECORDED AS INSTRUMENT NO. 2013-0519677 IN BOOK 86

OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGES 1-7. ALL MAPS HAVE BEEN RECORDED IN THE OFFICE OF THE

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

FILED IN THE OFFICE OF THE CITY CLERK OF CHINO
ON THIS ______ DAY OF _______________ , 2025
BY: _______________________________________

CITY CLERK, CITY OF CHINO

ASSESSOR PARCEL NUMBERS
1057-441-04-0000
LEGEND

ANNEXATION BOUNDARY

PARCEL BOUNDARY
388

MEMORANDUM

CITY OF CHINO

FINANCE DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE

SUBJECT
..titl e
Intention to Establish Improvement Area 12 in CFD 2003-3 and Incur Bonded Indebtedness. ..end

RECOMMENDATION
..recommendation
1) Adopt Resolution No. 2025-022, declaring the City of Chino’s intention to establish Improvement Area No. 12 in Community Facilities District (CFD) No. 2003 -3; 2) adopt Resolution No. 2025 -023 declaring the City of Chino’s Intention to Incur Bonded Indebtedness for the proposed Improvement Area (IA) 12 of the CFD No. 2003 -3; and 3) authorize the City Manager to execute all necessary documents on behalf of the City. ..body

FISCAL IMPACT
Upon full build -out of Improvement Area 12, the City will receive approximately $292,897 p er year in CFD special tax revenue. These funds are designated to offset the cost of providing municipal services to homes within CFD No. 2003 -03, ensuring the continued delivery of essential public services.

Revenue:

Expenditure:

Transfer In: Transfer Out:
389
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: INTENTION TO ESTABLISH IMPROVEMENT AREA 12 IN CFD 2003 -3 AND INCUR BONDED INDEBTEDNESS.

PAGE: 2

BACKGROUND
Lewis Operating Corporation (Lewis) is the primary land developer in The Preserve, actively constructing residential, commercial, and community facilities. As part of this development, the City of Chino requires Lewis to build the necessary public infrastructure to support residents and businesses within the new project area. To assist in financing these required improvements, the City formed Community Facilities District (CFD) No. 2003-03.

CFD No. 2003-03 was established in 2004 with five initial Improvement Areas (IA) designated at the time of its formation. These Improvement Areas were designed to facilitate bond issuance as The Preserve developed, enabling the financing of public facilities and funding ongoing municipal services authorized by the Mello -Roos Act and the CFD’s formation documents. IA 1 and IA 2 were developed and remain active along with IA 5, which serves as the primary annexable services IA for the Preserve Development. The boundary of IA 5 includes only those properties that have formally annexed into it; however, all property covered under The Preserve Development Agreement is subject to annexation into IA 5 to ensure municipal services are funded as development progresses. IA 3 and IA 4 were dissolved due to development delays, and sub sequent Improvement Areas —IA 6 through IA 12 —were established as the project continued to evolve. With the formation of Improvement Area 12, there are now ten active Improvement Areas.

Public improvements undertaken as part of the Lewis project include ba ckbone infrastructure such as sewer, water, and gas lines; storm drain connections; streets, curbs, and gutters; streetlight and traffic signal enhancements; landscaped medians; a fire station; a joint -use community center; and other essential facilities. Authorized municipal services funded through the Improvement Areas encompass park, parkway, and open space maintenance; flood and storm protection; operation of storm drainage systems; and public safety services.

Lewis has now approached the City with a r equest to establish Improvement Area 12 within CFD No. 2003 -3, further supporting the financing of critical infrastructure and services for the continued development of The Preserve. See attached map for reference.

ISSUES/ANALYSIS
Under current Government Code provisions, the City must adopt a Resolution of Intention to establish the Improvement Area and declare its intention to incur bonded indebtedness for the proposed area. Additionally, the City is required to set a public heari ng date no sooner than 30 days and no later than 60 days after approving the Resolution of Intention. Prior to the public hearing, a public notice must be published in a local newspaper.

Following the public hearing, an election will be conducted for affe cted property owners to cast their ballots. Once the ballots are counted and the Improvement Area is approved by the property owner(s), the City will adopt a resolution finalizing its formation.

A public hearing has been scheduled for July 15, 2025, to consider the following:

1. Establishment of Improvement Area 12 and the levy of a special tax therein

2. Approval of the proposed bonds for Improvement Area 12

390
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: INTENTION TO ESTABLISH IMPROVEMENT AREA 12 IN CFD 2003 -3 AND INCUR BONDED INDEBTEDNESS.

PAGE: 3

The levy of the special tax is subject to approval by the qualified electors of the CFD through a special election. Voting will be conducted by mail or via hand -delivered ballots submitted by the landowners within the proposed Improvement Area 12.

Pursuant to Section 53314.9 of the Mello -Roos Community Facilities Act of 1982, the City proposes to authori ze bonded indebtedness to finance the acquisition and/or construction of certain public improvements and City development impact fees, with a maximum aggregate principal amount not to exceed $40,000,000.

The CFD bonds will be secured by special taxes levi ed upon individual properties within Improvement Area 12, with the revenue generated from these taxes specifically designated to pay the bond debt. The City of Chino's General Fund will not be obligated to cover debt service on these bonds.

Attachments: Resolution No. 2025-022 (Exhibits A, B, C) Resolution No. 2025-023
Improvement Area 12 Boundary Map

391
1 RESOLUTION NO. 2025-022

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,

CALIFORNIA, DECLARING ITS INT ENTION TO ESTABLISH
IMPROVEMENT AREA NO. 12 OF COMMUNITY FACILITIES
DISTRICT NO. 2003-3, TO AUTHORIZE THE LEVY OF A SPECIAL

TAX TO PAY THE COST OF ACQUIRING OR CONSTRUCTING

CERTAIN PUBLIC FACILITIES, PROVIDE CERTAIN SERVICES

AND PAYING FOR CERTAIN INCIDENTAL EXPENSES AND TO

PAY DEBT SERVICE ON BONDED INDEBTEDNESS
WHEREAS, on July 20, 2004, the City Council of the City of Chino (the “City Council”) adopted Resolution No. 2004-055 (the “Resolution of Formation”) to form 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 the Community Facilities District has been established for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain public facilities and services which are necessary to meet increased demands placed upon the City of Chino (the “City”) as a result of the development of said real property; and WHEREAS, the City has received petitions from at least 10% of the owners of the territory described in Exhibit A attached hereto (the “Property”), requesting to establish Improvement Area No. 12 of the Community Facilities District (th e “Improvement Area”) to finance (1) the purchase, construction, expansion, improvement or rehabilitation of the public facilities described in Exhibit B hereto (which attachment is incorporated herein by this reference), including all furnishings, equipme nt and supplies related thereto (collectively, the “Facilities”), which Facilities have a useful life of five years or longer, (2) the services described in Exhibit B hereto (collectively the “Services”) and (3) the incidental expenses to be incurred in connection with financing the Facilities and/or Services, and forming the Improvement Area and administering the Community Facilities District (the “Incidental Expenses”); and WHEREAS, the City Council of the City (the “City Council”), acting as the legisla tive body of the Community Facilities District, further intends to approve an estimate of the costs of the Facilities, Services and the Incidental Expenses for the Improvement Area; and WHEREAS, it is the intention of the City Council to consider financing the Facilities, Services and the Incidental Expenses through the formation of the Improvement Area, and the sale of bonds (excluding the Services) in an amount not to exceed $40,000,000 (the “Obligations”) and the levy of a special tax to pay debt service on the Obligations, provided that the bond sale and special tax levy are approved at elections to be held for the Improvement Area; and

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CHINO AS FOLLOWS:

Section 1. Intention. The City Council declares its intention to conduct proceedings pursuant to said Article 3.5 of the Act for the establishment of Improvement Area No. 12 of the Community Facilities District with boundaries coterminous with the Property. It is further proposed that the boundaries of the Improvement Area shall be the legal boundaries as described in Exhibit A hereto which boundaries shall, upon recordation of the boundary map for 392
2 the Improvement Area of the Community Facilities District, include the entire ty of any parcel subject to taxation by Community Facilities District within the Improvement Area , except where indicated on the boundary map, and as depicted on the boundary map of the Improvement Area of the Community Facilities District which is on file with the City Clerk. The City Clerk is hereby directed to sign the original boundary map of the Improvement Area of the Community Facilities District and record it with all proper endorsements thereon with the County Recorder of the County of San Bernardino within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

Section 2. Name of the Community Facilities District . The name of the existing Community Facilities District is “Co mmunity Facilities District No. 2003-3 of the City of Chino, County of San Bernardino, State of California,” and the name of the proposed Improvement Area shall be “Improvement Area No. 12 of Community Facilities District No. 2003-3 of the City of Chino, County of San Bernardino, State of California.” Section 3. Types of Facilities and Services to be Financed by the Improvement Area .

The Facilities proposed to be provided within the Improvement Area are public facilities as defined in the Act. The City Council hereb y finds and determines that the description of the Facilities, Services and Incidental Expenses herein is sufficiently informative to allow taxpayers within the Improvement Area to understand what the funds of the Improvement Area may be used to finance, t he Facilities, Services and Incidental Expenses expected to be incurred, including the cost of planning and designing the Facilities, the costs of forming the Improvement Area, issuing bonds, levying and collecting a special tax within the Improvement Area and the annual administration costs of the Improvement Area. The City Council hereby finds that the proposed Facilities and Services are necessary to meet increased demands placed upon the City as a result of development occurring in the Improvement Area . The Facilities may be acquired from one or more of the property owners as completed public facilities or may be constructed by or on behalf of the City and paid for with bond proceeds. Any portion of the Facilities may be financed through a lease or le ase-purchase arrangement if the City hereafter determines that such arrangement is of benefit to the City.

Section 4. Special Taxes . Except where funds are otherwise available, it is the intention of the City Council to levy annually in accordance with the procedure s contained in the Act a special tax, secured by a continuing lien against all non -exempt real property in the Improvement Area, sufficient to pay for the Facilities, Services and Incidental Expenses and the principal and interest and other periodic costs on bonds or other indebtedness issued to finance the Facilities and Incidental Expenses, including the establishment and replenishment of any reserve funds deemed necessary by the City, and any remarketing, credit enhancement and liquidity facility fees (i ncluding such fees for instruments which serve as the basis of a reserve fund in lieu of cash) attributable to the Improvement Area. The rate and method of apportionment and manner of collection of the special tax in the Improvement Area is described in d etail in Exhibit C attached hereto (which attachment is incorporated herein by this reference). Exhibit C allows each landowner within the Improvement Area to estimate the maximum amount that may be levied against each parcel.

If special taxes of the Im provement Area are levied against any parcel used for private residential purposes, (i) the maximum special tax rate shall not be increased except to the extent permitted in the rate and method, (ii) Special Tax A shall not be levied later than the 2069-70 Fiscal Year and Special Tax B shall be levied in perpetuity as long as the Services are being provided, (iii) under no circumstances shall such special tax in the Improvement Area be 393
3 increased as a consequence of delinquency or default by the owner of any other parcel or parcels within the Improvement Area by more than ten percent (10%).

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 on the benefit that each parcel derives from the services to be provided by the Facilities. The City Council hereby determines the rate and method of apportionment of the special tax set forth in Exhibit C to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act; and such special tax is not on or based upon the value or ownership of real property. In the event that a portion of the property within the Improvement Area shall become for any reason exemp t, wholly or partially, from the levy of the special tax specified in Exhibit C, the City Council shall, on behalf of the Community Facilities District, cause the levy to be increased, subject to the limitation of the maximum special tax for a parcel as se t forth in Exhibit C, to the extent necessary upon the remaining property within the Improvement Area which is not exempt in order to yield the special tax revenues required for the purposes described in this Section. The obligation to pay special taxes may be prepaid as provided in the rate and method of apportionment set forth in Exhibit C, as such rate and method may be amended hereafter.

Section 5. Public Hearing . A combined public hearing (the “Hearing”) on the establishment of the Improvement Area, the propose d rate and method of apportionment of the special tax and the proposed issuance of bonds to finance the Facilities and the Incidental Expenses shall be held at 6:00 p.m., or as soon thereafter as practicable, on July 15, 2025, at the City Council’s Chamber s, 13220 Central Avenue, Chino, California. If the City Council determines to form the Improvement Area, a special election will be held to authorize the issuance of the bonds and the levy of the special tax in accordance with the procedures contained in Government Code Section 53326. If such election is held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the Improvement Area at the close of the Hearing, or the authoriz ed representative thereof, having one vote for each acre or portion thereof owned within the Improvement Area. Ballots for the special election may be distributed by mail or by personal service.

At the time and place set forth above for the Hearing, the City Council will receive testimony as to whether the Improvement Area shall be established and whether special taxes shall be levied in accordance with the proposed method of apportionment of the special tax, and whether Obligations shall be issued to finance Facilities and Incidental Expenses of the Improvement Area.

At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within the Improvement Area, may appear and be heard.

Section 6. Notice. The City Clerk is hereby authorized and directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the Improvement Area. The City Clerk is further authorized and directed to mail a copy of the Notice to each of the landowners within th e boundaries of the Improvement Area at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the Improvement Area and a 394
4 description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Section 7. Reports re Facilities and Services . Each City officer who is or will be responsible for providing the Facilities and Services within the Improvement Area, if it is established, is hereby directed to study the Improvemen t Area and, at or before the time of the Hearing, file a report with the City Council containing a brief description of the public facilities and services by type which will in his or her opinion be required to meet adequately the needs of the Improvement Area and an estimate of the cost of providing those public facilities and services.

Section 8. Advance of Funds. The City may accept advances of funds or work -in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred by the City in creating the Improvement Area. The City may enter into an agreement with the person or entity advancing the funds or work -in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work -in-kind, as determined by the City Council, with or without interest.

Section 9. Maximum Bonded Indebtedness . The reasonably expected maximum principal amount of the Obligations is Forty Million Dollars ($40,000,000).

Section 10. Reservation of Rights . Except to the extent limited in any bond resolution or trust indenture related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers set fo rth in Section 53344.1 of the Act (relating to tenders in full or partial payment).

Section 11. This Resolution shall be effective upon its adoption.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of June 2025.

395
5 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 3rd day of June 2025, by the following votes:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS

NATALIE GONZAGA, CITY CLERK
Attachments: Exhibit A, B and C

396
A-1

EXHIBIT A

DESCRIPTION OF THE PROPOSED IMPROVEMENT AREA
The property in the City of Chino, County of San Bernardino, California, identified by the San Bernardino County Assessor as Assessor’s Parcel Nos.:
1057-181-19-0000 (Portion)
1057-181-20-0000 (Portion)
1057-181-43-0000
1057-481-08-0000
1057-491-02-0000 (Portion)

397
B-1

EXHIBIT B

DESCRIPTION OF PUBLIC FACILITIES AND SERVICES

TYPES OF PUBLIC FACILITIES
The types of Facilities that are proposed by CFD No. 2003-3 and financed with the proceeds of special taxes and bonds issued by CFD No. 2003-3 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.

The facilities are necessary for development of the property within the boundaries of the district and are generally intended to comply with the requirements of The Preserve Specific Plan, dated March 2003, as it may be amended.

The amount of bond proceeds disbursed with respect to dry utilities and the City’s 12% administrative fee relating to Public Facilities shall be approved by the City and shall not exceed the limitations established by federal and state law applicable to tax-exempt municipal bonds.

The description of Public Facilities is general in nature. The final nature and location of the Public Facilities will be determined upon preparation of final plans and specifications.

TYPES OF 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, maintena nce 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.

398
C-1

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2003-3

OF THE CITY OF CHINO
(IMPROVEMENT AREA NO. 12)
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. 12 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. 12 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. 12, unless e xempted 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 show n 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 Requiremen t which are incurred by the City on behalf of Improvement Area No. 12 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 delinque ncies, 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. 12, and costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2003-3 relating to Improvement Area No. 12. “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, Developmen t Standards” section of the Preserve Specific Plan approved on March 25, 2003. 399

C-2

“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. 12. “Assessor’s Parcel Map” means an official map of the Assessor of the Coun ty 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. 12, or any refunding thereof, to which S pecial Tax A within Improvement Area No. 12 has been pledged.
“Boundary Map” means a recorded map of the CFD No. 2003-3 which indicates the boundaries of Improvement Area No. 12 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. 12 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.
400

C-3

"Consumer Price Index" or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statisti cs 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, pursuan t 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. 12” means Improvement Area No. 12 of CFD No. 2003 -3, as identified on the boundary map for CFD No. 2003-3 Improvement Area No. 12. “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 l evied 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. 401

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“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 Spec ial 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 becau se 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. 12 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 est ablish 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 Prop erty 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.
“Special Tax B Requirement” means, subject to the Maximum Special Tax B, tha t 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 402

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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. 12, 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, Zone 2, Zone 3, or Zone 4 as identified below. “Zone 1” means the specific area identified on the Boundary Map as Zone 1 of Improvement Area No. 12, consisting of Lots 5, 6 and 8 of Tract 16420-6. “Zone 2” means the specific area identified on the Boundary Map as Zone 2 of Improvement Area No. 12, consisting of Lot 9 of Tract 16420-6.
“Zone 3” means the specific area identified on the Boundary Map as Zone 3 of Improvement Area No. 12, consisting of Lots 4, and 7 of Tract 16420-6. “Zone 4” means the specific area identified on the Boundary Map as Zone 4 of Improvement Area No. 12, consisting of Lots 2, and 3 of Tract 16420-6.

SECTION B
CLASSIFICATION OF ASSESSOR’S PARCELS
Each Fiscal Year, beginning with Fiscal Year 2025 -26, each Assessor’s Parcel within Improvement Area No. 12 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Prop erty 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, Zone 2, Zone 3, or Zone 4. 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

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 Ann ual Special Tax A or (ii) the Backup Annual Special Tax A.
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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 Provi sional 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 1,800 $6,940 per Unit
Residential Property 1,800 – 1,900 $7,060 per Unit
Residential Property 1,901 – 2,000 $7,180 per Unit
Residential Property 2,001 – 2,100 $7,300 per Unit
Residential Property 2,101 – 2,200 $7,420 per Unit
Residential Property Greater than 2,200 $7,540 per Unit Multifamily Residential Property N/A $113,349 per Acre
Non-Residential Property N/A $113,349 per Acre

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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 2,000 $7,610 per Unit
Residential Property 2,000 – 2,175 $7,680 per Unit
Residential Property 2,176 – 2,250 $7,750 per Unit
Residential Property Greater than 2,250 $7,860 per Unit Multifamily Residential Property N/A $87,417 per Acre
Non-Residential Property N/A $87,417 per Acre

TABLE 3

ASSIGNED ANNUAL SPECIAL TAX A RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 3
Land Use Type Building Square
Footage Rate
Residential Property Less than 2,250 $8,260 per Unit
Residential Property 2,250 – 2,350 $8,390 per Unit
Residential Property 2,351 – 2,450 $8,520 per Unit
Residential Property 2,451 – 2,550 $8,650 per Unit
Residential Property 2,551 – 2,650 $8,780 per Unit
Residential Property 2,651 – 2,750 $8,910 per Unit
Residential Property 2,751 – 2,850 $9,040 per Unit
Residential Property 2,851 – 2,950 $9,170 per Unit
Residential Property Greater than 2,950 $9,300 per Unit Multifamily Residential Property N/A $109,023 per Acre
Non-Residential Property N/A $109,023 per Acre

TABLE 4

ASSIGNED ANNUAL SPECIAL TAX A RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 4
Land Use Type Building Square
Footage Rate
Residential Property Less than 2,100 $6,700 per Unit
Residential Property 2,100 – 2,200 $6,805 per Unit
Residential Property Greater than 2,200 $6,910 per Unit Multifamily Residential Property N/A $128,357 per Acre
Non-Residential Property N/A $128,357 per Acre

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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 5 below:

TABLE 5

ASSIGNED ANNUAL SPECIAL TAX A RATES

FOR APPROVED PROPERTY, UNDEVELOPED PROPERTY,

AND PROVISIONAL UNDEVELOPED PROPERTY
Zone Minimum Taxable
Acreage Rate
Zone 1 5.25 $113,349 per Acre
Zone 2 5.46 $87,417 per Acre
Zone 3 6.12 $109,023 per Acre
Zone 4 4.46 $128,357 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 e xclude 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 Property Acreage area, or Multifa mily 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 Reside ntial Property. In no circumstance shall the total Acreage of Taxable Property in each Zone be less than the acreage set forth in Table 5.

If the Final Map area described in the preceding paragraph lies within more than one Zone, the Backup Special Tax fo r 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 cl assified 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 with in the area that has been 406

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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 applic able Assigned Annual Special Tax A rates in Table 1, Table 2, Table 3, and Table 4 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 Ann ual 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 Propert y 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 Ta x A on each Assessor's Parcel of Developed Property for which the Maximum Special Tax A is the 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 o f 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.

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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 Sp ecial 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. 12 in calculatin g 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 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 Prope rty 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 determin ed 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 prov ided 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 408

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prepaid, divide the Assigned Annual Special Tax A compu ted 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.”

8. Estimate the administrative fees and expenses associated with the prepayment, including the costs of computation of the Prepayment Amount, the costs of redeeming Bonds, and the costs of recording any notices to evidence the prepayment and the redemption. This amount is the “Administrative Fee.”

9. Calculate the “Reserve Fund Cre dit” as the lesser of: (a) the expected reduction in the applicable reserve requirements, if any, associated with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount derived by subtracting the new reserve requirements in effect after the redemption of Outstanding Bonds as a result of the prepayment from the balance in the applicable reserve funds on the prepayment date. Notwithstanding the foregoing, if the reserve fund requirement is satisfied by a surety bond or other instrument at the time of the prepayment, then no Reserve Fund Credit shall be given.

Notwithstanding the foregoing, the Reserve Fund Credit shall in no event be less than zero.

10. The “Amount to Call Bonds” is equal to the sum of the Bond Redemption Amount, the Redemption Premium, and the Defeasance Cost, less the Reserve Fund Credit (the Amount to Call Bonds will be transferred to the debt service fund and used to defease or call bonds).
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11. The Prepayment Amount is the sum of the Payoff Amount and the Administrative Fee.

12. From the Prepayment Amount, the Amount to Call Bonds will be transferred to the debt service fund and used to defease or call bonds pursuant to the fiscal agent agreement or escrow agreement; the Administrative Fee will be transferred to the Administrative Fund or functionally equivalent fund or account pursuant to the fiscal agent agreement and used to pay administrative expenses; the remainder will be transferred to the Surplus Taxes Fund or functionally equivalent fund or account pursuant to the fiscal agent agreement.

With respect to the Special Tax A obligation that is prepaid pursuant to this Section G, the City Council shall indicate in the records of Improvement Area No. 12 that there has been a prepayment of the Special Tax A ob ligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such prepayment to indicate the prepayment of the Special Tax A obligation and the release of the Special Tax A lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay such Special Tax A shall cease.

Notwithstanding the foregoing, no prepayment will be allowed unless the amount of Special Tax A that may be levied on Taxable Property after such full prepayment , net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all Outstanding Bonds in each future Fiscal Year. 410

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SECTION H

PARTIAL PREPAYMENT OF ANNUAL SPECIAL TAX A
The Special Tax A obligation of an Assessor's Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property, for which a building permit has been issued or is expected to be issued, as calculated in this Section H below, may be partially prepaid, 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 Partial Prepayment Amount shall be calculated according to the following formula:

PP = PG x F
The terms above have the following meanings:

PP = the Partial Prepayment Amount.

PG = the Prepayment Amount calculated according to Section G.

F = the percent by which the owner of the Assessor’s Parcel is partially prepaying the Special Tax A obligation.

With respect to any Assessor’s Parcel that is partially prepaid, the City Council shall indicate in the records of Improvement Area No. 12 that there has been a partial prepayment of the Special Tax A obligation and shall cause a suitable notice to be recorded in compliance with the Act within thirty (30) days of receipt of such partial prepayment of the Special Tax A obligation, to indicate the partial prepayment of the Special Tax A obligation and th e partial release of the Special Tax A lien on such Assessor’s Parcel, and the obligation of such Assessor’s Parcel to pay such prepaid portion of the Special Tax A shall cease.

Notwithstanding the foregoing, no partial prepayment will be allowed unless th e amount of Special Tax A that may be levied on Taxable Property after such partial prepayment, net of Administrative Expenses, shall be at least 1.1 times the regularly scheduled annual interest and principal payments on all currently Outstanding Bonds in each future Fiscal Year. 411

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SECTION I

MAXIMUM SPECIAL TAX B

1. Developed Property
Maximum Special Tax B
The Maximum Special Tax B for each Assessor’s Parcel of Developed Property for each Land Use Type is shown in the Tables below.

On each July 1, commenci ng July 1, 2025, the Maximum Special Tax for Residential Property for the prior Fiscal Year shall be increased by (i) an amount equal to the percentage change increase in the Consumer Price Index for the twelve month period ending in March of the prior Fiscal Year, not to exceed 7%.

The Maximum Special Tax for Multifamily Residential Property and Non -Residential Property shall not increase.

TABLE 6

MAXIMUM SPECIAL TAX B RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1
Land Use Type Building Square
Footage Rate
Residential Property Less than 1,800 $873 per Unit
Residential Property 1,800 – 1,900 $888 per Unit
Residential Property 1,901 – 2,000 $903 per Unit
Residential Property 2,001 – 2,100 $923 per Unit
Residential Property 2,101 – 2,200 $938 per Unit
Residential Property Greater than 2,200 $953 per Unit
Multifamily Residential Property N/A $14,280 per Acre
Non-Residential Property N/A $14,280 per Acre
TABLE 7

MAXIMUM SPECIAL TAX B RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 2
Land Use Type Building Square
Footage Rate
Residential Property Less than 2,000 $963 per Unit
Residential Property 2,000 – 2,175 $973 per Unit
Residential Property 2,176 – 2,250 $983 per Unit
Residential Property Greater than 2,250 $988 per Unit
Multifamily Residential Property N/A $11,048 per Acre
Non-Residential Property N/A $11,048 per Acre

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TABLE 8

MAXIMUM SPECIAL TAX B RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 3
Land Use Type Building Square
Footage Rate
Residential Property Less than 2,250 $1,038 per Unit
Residential Property 2,250 – 2,350 $1,064 per Unit
Residential Property 2,351 – 2,450 $1,080 per Unit
Residential Property 2,451 – 2,550 $1,100 per Unit
Residential Property 2,551 – 2,650 $1,130 per Unit
Residential Property 2,651 – 2,750 $1,166 per Unit
Residential Property 2,751 – 2,850 $1,178 per Unit
Residential Property 2,851 – 2,950 $1,188 per Unit
Residential Property Greater than 2,950 $1,198 per Unit Multifamily Residential Property N/A $13,953 per Acre
Non-Residential Property N/A $13,953 per Acre
TABLE 9

MAXIMUM SPECIAL TAX B RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 4
Land Use Type Building Square
Footage Rate
Residential Property Less than 2,100 $843 per Unit
Residential Property 2,100 – 2,200 $866 per Unit
Residential Property Greater than 2,200 $869 per Unit
Multifamily Residential Property N/A $16,211 per Acre
Non-Residential Property N/A $16,211 per Acre

2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property No Special Tax B shall be levied on Approved Property, Undeveloped Property, or Provisional Undeveloped Property.

3. Method of Apportionment of the Maximum Special Tax B Commencing with Fiscal Year 2025-26 and for each following Fiscal Year, the City shall levy the Special Tax B at up to 100% of the applicable Maximum Special Tax B, Proportionately on each Assessor’s Parcel of Developed Property until the amount of Special Tax B equals the Special Tax B Requirement.

SECTION J

PREPAYMENT OF ANNUAL SPECIAL TAX B
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Special Tax B cannot be prepaid.

SECTION K

TERM OF SPECIAL TAX A AND SPECIAL TAX B
For each Fiscal Year that any Bonds are outstanding the Annual Special Tax A shall be levied on all Assessor’s Parcels subject to the Annual Special Tax A. If any delinquent Annual Special Tax A amounts remain uncollected prior to or after all Bonds are retired, the Annual Special Tax A may be levied to the extent necessary to reimburse Improvement Area No. 12 for uncollected Annual Special Tax A amounts associated with the levy of such Annual Special Tax A amounts, but not later than the 2069-70 Fiscal Year.

Special Tax B shall be levied in perpetuity as long as the Services are being provided.

SECTION L

EXEMPT PROPERTY
The City shall classify as Exempt Property within the applicable Zone, (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by the State of California, Federal or other local governments, including school districts, (ii) Assessor’s Parcels which are used as places of wo rship and are exempt from ad valorem property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a homeowners' association, (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s Parcels which are privately owned and are encumbered by or restricted solely for public uses or classified as Agricultural Buffer Property, or (vi) other types of public uses determined by the City Council.

Notwithstanding the foregoing, the City Council for purposes of levying the Special Tax A shall not classify an Assessor's Parcel as Exempt Propert y if such classification would reduce the sum of all Taxable Property within the applicable Zone to less than the Acreage amounts listed in Table 10 below. Assessor's Parcels which cannot be classified as Exempt Property because such classification would reduce the Acreage of all Taxable Property within the applicable Zone to less than the Acreage amounts listed in Table 10 will be classified as Provisional Undeveloped Property, and will be subject to the levy of Special Tax A pursuant to Step Five in Section F.

TABLE 10

MINIMUM TAXABLE ACRES
Zone Acres
Zone 1 5.25
Zone 2 5.46
Zone 3 6.12
Zone 4 4.46

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SECTION M

APPEALS AND INTERPRETATIONS
Any property owner claiming that the amount or application of the Special Tax A or Special Tax B is not correct may file a written notice of appeal with the City Council not later than twelve months after having paid the first installment of the Special Ta x A or Special Tax B that is disputed. A representative(s) of CFD No. 2003 -3 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of Special Tax A or Special Tax B, and r ule on the appeal. If the representative’s decision requires that the Special Tax A or Special Tax B for an Assessor’s Parcel be modified or changed in favor of the property owner, the representative shall take any of the following actions, in order of priority, to correct the error:
(i) if possible, amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year, if prior to the payment date, (ii) require the CFD to reimburse the property owner for the amount of the overpayment to the extent of available CFD funds, or
(iii) grant a credit against, eliminate, or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s) in the amount of the overpayment.

The City may interpret this Rate and Method of A pportionment of Special Tax for purposes of clarifying any ambiguity and make determinations relative to the amount of Administrative Expenses.

The City may interpret this Rate and Method of Apportionment of Special Tax for purposes of clarifying any ambig uity and make determinations relative to the amount of Administrative Expenses.

SECTION N

MANNER OF COLLECTION
The Annual Special Tax A or Annual Special Tax B shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that Improvement Area No. 12 may collect Annual Special Tax A and Annual Special Tax B at a different time or in a different manner if necessary to meet its financial obligations.

415

1 RESOLUTION NO. 2025-023

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, TO INCUR BONDED INDEBTEDNESS
WITHIN IMPROVEMENT AREA NO. 12 OF COMMUNITY
FACILITIES DISTRICT NO. 2003-3 OF THE CITY OF CHINO
WHEREAS, on July 20, 2004, the City Council of the City of Chino (the “City Council”) adopted Resolution No. 2004-55 (the “Resolution of Formation”) to form 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 the Community Facilities District has been established for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain public facilities and services which are necessary to meet increased demands placed upon the City of Chino (t he “City”) as a result of the development of said real property; and WHEREAS, upon receipt of a petition as provided in Section 53339.2 of the Act, the City Council of the City (the “City Council”) instituted proceedings to establish Improvement Area No. 12 of the Community Facilities District (the “Improvement Area”) with boundaries coterminous with the property described in Exhibit A to the resolution of intention to establish the Improvement Area (the “Resolution of Intention ”) adopted by the City Council on June 3, 2025 (the “Property”). The Resolution of Intention stated the City Council’s intention establish the Improvement Area and to finance (1) the purchase, construction, expansion, improvement or rehabilitation of the public facilities described in Exhibit B to the Resolution of Intention , including all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), (2) the services described in Exhibit B to the Resolution of Intention (collectively the “Ser vices”) and (3) the incidental expenses to be incurred in connection with financing the Facilities and/or Services, and forming the Improvement Area and administering the Community Facilities District (the “Incidental Expenses”); and
WHEREAS, the City Council estimates that the amount required to finance the Facilities and Incidental Expenses is approximately $40,000,000; and WHEREAS, in order to finance the Facilities and Incidental Expenses, the City Council intends to authorize the issuance of bonds in a n amount not to exceed $40,000,000, the repayment of which is to be secured by special taxes levied in accordance with Section 53328 of the Act on all property in the Improvement Area, other than those properties exempted from taxation in the rate and meth od of apportionment set forth in Exhibit C to the Resolution of Intention; and

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL OF THE CITY OF CHINO AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

SECTION 2. It is necessary to incur bo nded indebtedness within the boundaries of the Improvement Area in an amount not to exceed $40,000,000, in order to finance certain of the costs of the Facilities and Incidental Expenses, as permitted by the Act. 416

2 SECTION 3. The indebtedness will be incurred for the purpose of financing the costs of the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve funds for the bonds, the financing of costs associated with the issuance of the bonds and all other costs and expenses necessary to finance the Facilities which are permitted to be financed pursuant to the Act.

SECTION 4. It is the intent of the City Council to authorize the sale of bonds in one or more series, which bonds may be issued to fund Facilities costs and Incidental Expenses in the maximum amount set forth in Section 2, and which bonds may bear interest at a rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall b e determined pursuant to a resolution of this City Council authorizing the issuance of the bonds of such series, but such term shall in no event exceed 40 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law.

SECTION 5. A c ombined public hearing (the “Hearing”) on the proposed debt issue and the levy of special taxes shall be held at 6:00 p.m. or as soon thereafter as practicable, on July 15, 2025, at the City Council’s Chambers, 13220 Central Avenue, Chino, California.

SECTION 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed the Improvement Area, may appear and be heard.

SECTION 7. The City Clerk is hereby directed to publish a notice of the Hearing (the “Notice”) pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Improvement Area. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of the proposed Improvement Area at least 15 days prior to the Hearing.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 3rd day of June 2025.

417

3 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 3rd day of June 2025, by the following votes:

AYES: COUNCIL MEMBERS
NOES: COUNCIL MEMBERS
ABSENT: COUNCIL MEMBERS

NATALIE GONZAGA, CITY CLERK
418
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 $____________.

JOSIE GONZALES

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 2025-2026.

PROPOSED BOUNDARY MAP
Improvement
Area No. 12
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. 12 OF THE CITY OF

CHINO, SAN BERNARDINO COUNTY, 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. 12

CITY OF CHINO

SAN BERNARDINO COUNTY, STATE OF CALIFORNIA

VICINITY MAP

NOT TO SCALE
0 500 1,000
Feet
M:\GIS-Assessment\Chino\CFD_2003-3_IA_12_Boundary.mxd

LEGACY PARK

CHINO-CORONA

DISCOVERY PARK

ADVENTURE
CO
M
ET
LEGEND

PROPOSED IMPROVEMENT AREA BOUNDARY

PROPOSED STREET BOUNDARY

PARCEL BOUNDARY

ASSESSOR'S PARCEL NUMBER (APN)XXXX-XXX-XX-XXXX
ASSESSOR PARCEL NUMBERS
1057-181-19-0000 (PORTION)
1057-181-20-0000 (PORTION)
1057-181-43-0000
1057-481-08-0000
1057-491-02-0000 (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 MAPS FILED
UNDER THE FOLLOWING:

TRACT 16420-6 RECORDED IN BOOK NUMBER 370
OF TRACT MAPS AT PAGES 56-61.

EAST PRESERVE LOOP
M
AIN
STREET
Tract 16420-6
419

MEMORANDUM

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES

SUBJECT
..titl e
Solar Power Purchase Agreement with SitelLogIQ, Ontario, CA. ..end

RECOMMENDATION
..recommendation
Approve a Power Purchase Agreement (PPA) with SiteLogIQ, Ontario, CA, that 1) provides for SiteLogIQ to construct, operate and maintain solar photovoltaic (PV) carports on the City property at 5450 Guardian Way (Chino Police Department); 2) obligates SiteLogIQ to sell and the City of Chino to purchase energy produced by the project at a fixed rate of $0.171/kWh; and 3) authorize the City Manager to execute all necessary documents on behalf of the City. ..body

FISCAL IMPACT
Cost Savings : It is anticipate d that the City will begin purchasing power from SiteLogIQ in FY 2025-26 and that this project will result in cost savings of approximately $4.4 million over the 25-year contract term. This estimate assumes public utility rates will increase at 5% per annum over the 25-year contract term. If utility rates increase at a 6% annual rate, the cost savings will total approximately $5.9 million over the 25-year contract term.

Initial Cost: There is no up-front cost to the City for the construction, maintenance and operation of the Solar Photovoltaic Carports . These costs will be borne by SiteLogIQ and recovered through the per kilowatt -hour rate the City will pay to SiteLogIQ for electricity generated by the project. If unforeseen circumstances arise that lead to additional construction expenses, the rate that the City will pay SiteLogIQ to purchase electricity will automatically increase by $0.0003 per kWh for every $10,000 in additional expenses. As an example, if the project were to incur $100,000 in additional expenses, the City’s cost for electricity purchased under the PPA would increase from $0.171 per kWh to $0.174 per kWh, which in turn would reduce the 25 -year savings available to the City by $105,485.

Insurance: Under the PPA, the City is required to maintain insurance in an amount not less than the replacement value of the Improvements (i.e., the Solar Photovoltaic Carports).

Performance Guarantee : The PPA establishes a minimum guaranteed annual output for the Solar Photovoltaic Carport system and provides that the City be reimbursed for 100% of lost savings should the system’s output fall below the guaranteed output.

Early termination fee: If the City opts to terminate the PPA prior to the end of the contract term, the following early termination fees would apply:
420
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: SOLAR POWER PURCHASE AGREEMENT WITH SITELLOGIQ, ONTARIO, CA.

PAGE: 2

Maintenance of premises: The City shall be responsible for maintaining the premises on which the solar carports are constructed, while SiteLogIQ shall be responsible for the maintenance of the solar carports.

421
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: SOLAR POWER PURCHASE AGREEMENT WITH SITELLOGIQ, ONTARIO, CA.

PAGE: 3

Revenue:

Expenditure:

Transfer In: Transfer Out:
422
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: SOLAR POWER PURCHASE AGREEMENT WITH SITELLOGIQ, ONTARIO, CA.

PAGE: 4

BACKGROUND
A Power Purchase Agreement (PPA) is an arrangement in which a development partner installs, owns, and operates an energy system on a customer’s property at no upfront cost to the customer, and the customer in turn purchases the s ystem’s electric output for a predetermined term at set rates. This allows the customer to receive stable and low -cost electricity with no upfront costs, and the partner to access tax credits and receive income from the sale of electricity.

In 2018, the Ci ty of Chino awarded a contract to EcoMotion to assess the potential for cost savings through solar power generation at City facilities. EcoMotion completed the assessment and found that the market rates for electricity generated by solar power and purchase d under a Power Purchase Agreement (PPA) would not result in cost savings to the City.

In 2022, EcoMotion was tasked with re -evaluating market conditions for solar power PPAs and determined that the City could realize significant savings through the develo pment of solar carports at the Chino Police Department property. Subsequently, staff published a Request for Proposal (RFP) for qualified firms to submit a proposal to provide Solar Photovoltaic (PV) Carports at the Chino Police Department. Four proposals were received and evaluated, and the City entered into a PPA with PCS Energy.

Following the award of contract, PCS prepared, submitted and received approval of its interconnection application from Southern California Edison (SCE) and in doing so, locked in SCE’s NEM 2.0 rate plan , which governs the rates paid by utilities for energy exported to the SCE power grid. Following the approval of its interconnection application, PCS transitioned to the development phase of the project and was unable to secure the financing needed to move forward with construction. PCS notified staff that they would be unable to complete the project and committed to transfer the NEM 2.0 approval to a new City partner to allow the project to move forward.

In October 2024, the City published an updated RFP on Planet Bids. Eight proposals were received, and each proposal was evaluated and scored based upon the criteria outlined in the RFP (qualificatio ns, past performance, responsiveness, cost, and timeline). Staff ranked the proposals from the responding firms in the following order:

1. SiteLogIQ

2. Motive Energy Storage Systems, Inc.

3. Luminace

4. Renewable Energy Partners, Inc.

5. GreenQuest Energy Development LLC

6. Staten Solar Corporation

7. Endelos Construction

8. Option One Corporation
The top two firms (SiteLogIQ and Motive Energy Storage Systems, Inc.) were invited to participate in finalist interviews, after which SiteLogIQ was deemed to be the most responsive and responsible firm.

ISSUES/ANALYSIS
Under the proposed Power Purchase Agreement (PPA), SiteLogIQ will develop, operate and maintain solar carports at the Chino Police Department and sell power generated by the solar carports to the City at a fixed rate of $ 0.171/kWh for 25 years. Table 1 shows the estimated 423
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: SOLAR POWER PURCHASE AGREEMENT WITH SITELLOGIQ, ONTARIO, CA.

PAGE: 5

savings the City will realize under the PPA, which total $ 4,386,628 over the 25 -year contract term.

Table 1: Estimated Annual Energy Cost Savings
1 Calculation based upon NEM 2.0 rates and 5% annual SCE rate increases It is important to note that t he above estimate is contingent upon this project being completed and interconnected with SCE’s grid no later than April 14, 2026. Should that deadline not be met, the rate at which the City will be compensa ted for the excess energy generated by the solar carports and exported to the utility grid will fall to the lower rates available under the current NEM 3.0 rate plan. Under this scenario, the City’s estimated savings over the 25 -year contract term will total $2,738,834, a reduction of $1,647,794.

Year PPA Payments SCE Bill Reduction 1 Total Cash Flow
1 ($255,860) $249,758 ($6,101)
2 ($254,580) $260,935 $6,355
3 ($253,301) $272,605 $19,304
4 ($252,022) $284,790 $32,768
5 ($250,742) $297,511 $46,769
6 ($249,463) $310,793 $61,330
7 ($248,184) $324,659 $76,475
8 ($246,904) $339,135 $92,230
9 ($245,625) $354,247 $108,622
10 ($244,346) $370,022 $125,676
11 ($243,067) $386,489 $143,422
12 ($241,787) $403,677 $161,890
13 ($240,508) $421,618 $181,110
14 ($239,229) $440,345 $201,116
15 ($237,949) $459,889 $221,940
16 ($236,670) $480,288 $243,618
17 ($235,391) $501,576 $266,185
18 ($234,111) $523,793 $289,681
19 ($232,832) $546,977 $314,145
20 ($231,553) $571,170 $339,617
21 ($230,274) $475,908 $245,634
22 ($228,994) $496,928 $267,934
23 ($227,715) $518,859 $291,144
24 ($226,436) $541,741 $315,305
25 ($225,156) $565,615 $340,459
Totals: ($6,012,699) $10,399,328 $4,386,628
424
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: SOLAR POWER PURCHASE AGREEMENT WITH SITELLOGIQ, ONTARIO, CA.

PAGE: 6

At the end of the contract term, the City will have the right but not the obligation to purchase the solar carports at fair market value, or it can require SiteLogIQ to remove the carports and return the site to its original condition at no cost to the City.

The City Attorney’s office has reviewed and approved the Power Purchase Agreement, and it is staff's recommendation that the City Council award and authorize a Power Purchase Agreement with SiteLogIQ for the dev elopment, operation and maintenance of Solar Photovoltaic (PV) carports at the Chino Police Department.

Attachment: Solar Panel Design Concept
Agreement

425
Site Plan - Solar Carport Project
(5450 Guardian Way – Chino Police Department)

426

Solar Power Purchase Agreement

This Solar Power Purchase Agreement (this “ Agreement”) is entered into by and between the City of Chino (“Purchaser”) and [BP Solar Chino LLC] (“Seller”) (each a “Party” and collectively the “Parties”) as of [MONTH] [DAY], 2025 (the “Effective Date”).

Purchaser: Seller:

Name
and
Address

CITY OF CHINO
5450 Guardian Way
Chino, CA 91710
Attention: Christopher Corbin, Deputy
Director of Development Services
Name
and
Address
[BP SOLAR CHINO LLC]
921 E. Fort Ave., Suite 120
Baltimore, MD 21230
Attention: Legal Department
Phone 909-334-3308 Phone 415-524-0429
E-mail [email protected] E-mail [email protected] Premises
Ownership
Purchaser [X] owns [ ] leases the
Premises.

Additional Seller
Information
Cc: [email protected]

Tax Status Exempt
Project Name Chino Police Department

This Agreement sets forth the terms and conditions of the purchase and sale of solar generated electricity from the solar pan el system described in Exhibit 2 (the “System”) and installed on the real property comprising Purchaser’s premises described or depicted in Schedule A to Exhibit 2 (the “Premises”), including any buildings and other improvements on the Premises other than the System (the “Improvements”).

The exhibits listed below are incorporated by reference and made part of this Agreement.

Exhibit 1 Pricing
Exhibit 2 System Description, Delivery Point and Premises Exhibit 3 General Terms and Conditions
Exhibit 4 Performance Guarantee

IN WITNESS WHEREOF, the parties enter into this Agreement as of the Effective Date.

PURCHASER: CITY OF CHINO SELLER: [BP SOLAR CHINO LLC]

By: By:

Name: Name:

Title: Title:
427

Exhibit 1

Pricing

1. Initial Term: Twenty Five (25) years, beginning on the Commercial Operation Date (as defined in Section 5(d) of Exhibit 3) (the “Initial Term”).

2. Additional Terms : Up to three (3) terms of five (5) years each beginning on the expiration of the Initial Term (each an “Additional Term”).

3. Contract Price:

Contract Year $/kWh
1 $0.1710
2 $0.1710
3 $0.1710
4 $0.1710
5 $0.1710
6 $0.1710
7 $0.1710
8 $0.1710
9 $0.1710
10 $0.1710
11 $0.1710
12 $0.1710
13 $0.1710
14 $0.1710
15 $0.1710
16 $0.1710
17 $0.1710
18 $0.1710
19 $0.1710
20 $0.1710
21 $0.1710
22 $0.1710
23 $0.1710
24 $0.1710
25 $0.1710

The first Contract Year shall commence on the Commercial Operation Date, and each subsequent Contract Year shall commence on the anniversary of the Commercial Operation Date.

4. Contract Price Assumptions. The Contract Price is based on the following assumptions:

a. A payment or performance bond is being issued to Purchaser under t his Agreement. If a payment or performance bond is being issued, Seller may satisfy such obligation by having its installation contractor obtain such bond with respect to the construction contract for the System with Seller named as obligee and Purchaser n amed as dual obligee (or similar designation) thereunder.

b. Interconnection costs for the System will not exceed $0 in the aggregate.

c. Statutory prevailing wage rates (e.g., Davis-Bacon) do apply.

428

d. The Contract Price is inclusive of Seller’s Taxes (as defined in Section 3(d) of Exhibit 3) at the rates in effect as of the Effective Date (to the extent that such rates are known or knowable by Seller on the Effective Date).

e. Purchaser shall be responsible for mowing, trimming, or pruning all grass and vegetation on the Premises.

f. At the base of each carport column, and to protect against vehicular damage, the structure will be shrouded in a concrete base extending to a height of 30 inches above grade and at least 24 inches in diameter at its base.

g. All columns must be placed in the planter areas to prevent the loss of any parking spaces.

h. [reserved.]

i. Seller shall coordinate with Chino for the 3 phases of construction availability for the parking lot. The double-sided row of patrol vehicles can only move once with ~45 vehicles. Specialty vehicles can move to the East side of the building and/or garage. Phase details must include the conduit run to the electrical room. The City prefers directional boring to trenching.

j. Carports to have a minimum height clearance of 12’, are to be painted, and LED lighting is required underneath the solarports. Lights shall be automatically controlled by a photocell. The western-most row shall have minimum clearanc e for 13.5’ to accommodate police vehicles.

k. All PV generation will serve the main meter at the Chino Police Department.

l. Seller shall restripe parking lots for ADA compliance (if applicable).

m. Seller shall reroute irrigation (if applicable) and must repair any damage done to irrigation systems.

n. Seller shall add electrical outlets to the arrays:

 On the Secured side (the west side of the lot) there should be one junction box per row and one 2-plug outlet per column (120V / 20 amps) near the base.

 On the public parking side (the east side of the lot) there should be one junction box and one locked 2 plug outlet per array (120V / 20 amps) set at ceiling height (8-10 feet).

o. Seller shall remove trees designated by the City of Chino and must remove stumps to 12” below grade.

p. Seller shall restore parking lots disrupted by trenching, boring, construction, and/or equipment (if applicable).

q. Seller shall restore any landscaping disrupted by trenching, boring, construction, and/or equipment.

r. Adjustment to Contract Price for Unanticipated Conditions and Allowances. For every $10,000 in cost increase to Seller for an Unanticipated Condition as defined in Section 7(i) of Exhibit 3 or for the allowances set forth in this Section 4 of Exhibit 1, the Contract Price for each Contract Year shall increase by $0.0003 per kWh. Purchaser has the option to pay the full amount of any such cost increase to Seller in lieu of an increase to the Contract Price. Purchaser must exercise s uch option in writing within 30 days of Seller providing notice of a Contract Price adjustment pursuant to Section 3(a) of Exhibit 3 or a request for approval of a change order and payment of the related expenses to Purchaser pursuant to Section 7(i) of Exhibit

3. If Purchaser makes such election, Seller shall provide an invoice for such cost increase to Purchaser, which invoice shall be payable in accordance with the requirements of Section 3(c) of Exhibit 3.

5. Contract Price Exclusions. Unless Seller and Purchaser have agreed otherwise in writing, and except as otherwise provided in Section 2(c) of Exhibit 3, the Contract Price excludes the following:

a. Unforeseen groundwork (including excavation and circumvention of underground obstacles). Upgrades or repair to customer or utility electrical infrastructure (including client or utility service, transformers, substations, poles, breaker s, reclosers, and disconnects).

b. Snow removal, tree removal, tree trimming, mowing, trimming, or pruning grass or vegetat ion, and any landscape improvements (other than the removal of trees located in the applicable parking lots).

c. Decorative fencing and/or any visual screening materials, decorative enhancements to solar support structures (including 429

painting, paint matching, masonry/stone work, and any lighting not required to meet the minimum code compliance).

d. [reserved].

e. [reserved]

f. Structural upgrades to the Improvements, including ADA upgrades (other than the restriping of the applicable parking lots for ADA compliance purposes).

g. Installation of public information screen or kiosk (including accompanying internet connection, power supply, technical support, and ADA access).

h. Changes in System design caused by any inaccuracy or ambiguity in information provided by Purchaser, including information regarding Purchaser’s energy use, the Premises, and the Improvements, including building plans and specifications.

6. Early Termination Payment Schedule:

Contract Year Early Termination Payment
1 $7,850,756
2 $7,566,622
3 $6,136,548
4 $5,000,655
5 $4,158,787
6 $2,707,278
7 $1,922,909
8 $1,843,424
9 $1,761,048
10 $1,677,985
11 $1,605,321
12 $1,538,143
13 $1,468,182
14 $1,395,243
15 $1,317,087
16 $1,198,558
17 $1,091,707
18 $987,989
19 $879,027
20 $764,784
21 $648,077
22 $525,014
23 $395,228
24 $258,048
25 $113,032
Additional Term FMV

7. Performance Guarantee: Seller shall provide a performance guarantee with respect to the System in accordance with the terms set forth in Exhibit 4.
430

Exhibit 2

System Description, Delivery Point and Premises

1. Premises Location: 5450 Guardian Way, Chino, CA 91710

2. System Size (DC kW): 988.95 kW (DC)

3. System Description (Please include the type of Module, Inverter, and Racking that will be used):

Carport Structures

Module: Heliene - 156HC M10 SL 570 or similar
Inverter: Chint – CPS SCA36KTL-DO/US-480, SCA50KTL-DO/480, SCA60KTL-DO/480 or similar Racking: to be determined

4. Delivery Point and Premises: Schedule A to this Exhibit 2 contains one or more drawings or images depicting:

a. The Premises, including the Improvements (as applicable);

b. Proposed System location;

c. Delivery point for electricity generated by the System, which shall be at the Meter (as defined in Section 10(a) of Exhibit 3) (the “Delivery Point”);

d. Access points needed for Seller to install and service the System (e.g., building. access, electrical room, stairs); and

e. Construction assumptions (if any).

431

Schedule A

432

Ex. 3, pg. 1

Exhibit 3
General Terms and Conditions

1. Purchase and Sale of Electricity. Purchaser shall purchase from Seller, and Seller shall sell to Purchaser, all of the electricity generated by the System during the Term (as defined in Section 2(a)). Electricity generated by the System shall be delivered to Purchaser at the Delivery Poi nt. Title to and risk of loss for the electricity generated by the System passes to Purchaser from Seller at the Delivery Point. Purchaser may purchase electricity for the Premises from other sources to the extent Purchaser' s electricity consumption requir ements at the Premises exceed the electricity output of the System. Any delivery of electricity prior to the Commercial Operation Date (as defined in Section 5(d)) shall be treated as the delivery of limited amounts of test energy and shall not indicate that the System has been put in Commercial Operation (as defined in Section 5(d)) by the delivery of such test energy.

2. Term and Termination.

a. Effective Date; Term. This Agreement is effective as of the Effective Date. The electricity supply period under this Agreement commences on the Commercial Operation Date and continues for the duration of the Initial Term and any Additional Terms, unless earlier terminated as provided for in this Agreement (collectively, the “ Term”).

b. Additional Terms. The Parties may agree in writing to extend the term of this Agreement for one or more Additional Term(s) at a Contract Price to be agreed.

c. Termination Due to Contract Price Adjustments or Lack of Project Viability . If, at any time after the Effective Date and prior to the date that Seller or its installation contractor has begun physical installation of the System on the Premises (the “Commencement of Installation ”), (i) circumstances arise which have been excluded from Contract Price calculations pursuant to Section 5 of Exhibit 1, or Seller determines that the installation of the System will not be technically or economically viable for any other reason, and (ii) the Parties have negotiated in good faith a Contract Price adjustment for thirty (30) days following written notice from Seller without reaching agreement, then Seller may terminate this Agreement by providing ten (10) days’ prior written notice to Purchaser. Neither Party shall be liable for any damages in connection with such termination.

d. Payment Limitations. If, during the Term of this Agreement, Purchaser is bound or deemed bound by the provisions of any state laws concerning the sufficiency of Purchaser appropriations and the legal ability of Purchaser to enter into binding contracts and agreements with annu al obligations in excess of annual Purchaser appropriations (“Appropriation Bound ”) the provisions of Sections 2(d) – 2(g) of this Agreement shall apply. If Purchaser is Appropriation Bound, Seller and Purchaser hereby expressly acknowledge and agree that the obligation of Purchaser to pay invoices for electricity under this Agreement or otherwise during each fiscal year of Purchaser (each, a “Fiscal Year”) will be legally binding solely to the extent of amounts appropriated for and legally available to Pur chaser for such purposes during such Fiscal Year. The Parties acknowledge that all payment obligations of Purchaser under this Agreement will constitute currently budgeted expenditures. The Parties acknowledge that all payments obligations of Purchaser under this Agreement will not constitute a general obligation debt, an indebtedness, or multiple -fiscal year direct or indirect debt or other financial obligation within the meaning of any constitutional or statutory provisions or limitation. Purchaser represents to Seller, and the parties hereto acknowledge that, Purchaser is Appropriation Bound.

e. Event of Non-Appropriation. If Purchaser is Appropriation Bound, if by the last day of any Fiscal Year, Purchaser has failed, for any reason, to obtain an appropriation of sufficient legally available amounts to be used to pay invoices for electricity (as provided in this Section 2) that will be due hereunder for and during the next ensuing Fiscal Year, then an Event of Non-Appropriation shall be deemed to have occurred (an “Event of Non-Appropriation”). However, the Parties hereto agree that no Event of Non-Appropriation shall be deemed to have occurred if the foregoing failure set forth in this Section 2(e) is cured on or before the thirty-first (31st) day of the Fiscal Year for which such Event of Non-Appropriation shall be deemed to have occurred by enactment of an appropriation providing sufficient legally available amounts to Purchaser, or Purchaser otherwise making sufficient money available, to pay invoices for electricity (as provided in this Section 2) that will be due hereunder for and during such Fiscal Year.

f. Present Expectation. If Purchaser is Appropriation Bound, it is the present intention and expectation of Purchaser that the applicable budgetary entit y, within the limits of available funds and revenues, will make an appropriation of a sufficient amount to fund Purchaser’s obligations hereunder during each Fiscal Year during the Term; provided, however, this expectation of Purchaser shall not be binding upon any future applicable budgetary entity in any future 433

Ex. 3, pg. 2

Fiscal Year, except to the extent of any previously appropriated funds. Purchaser shall use good faith efforts to have funds properly budgeted in the general operating expense section of its budget (and not a specific line item ) appropriated, allotted, or otherwise made available for this Agreement (including obtaining legislative and other authorizations for use of such funds) and to satisfy such conditions in a timely manner.

g. Notice and Effect of Event of Non -Appropriation. In an Event of Non -Appropriation occurs, Purchaser shall promptly give notice of such Event of Non -Appropriation (the “NAE Notice”). Within 30 days of Seller’s receipt of an NAE Notice, Seller, in its sole discretion, may: (i) terminate this Agreement and remove the Project, or (ii) continue to operate the Project and deliver the electricity to Purchaser or to a third party or utility company without payment by Purchaser therefore during the applicable Fiscal Year (and each Fisc al Year thereafter until an appropriation of funds is made). If Seller does not provide notice to Purchaser of Seller’s election within such period, Seller shall be deemed to have elected option (ii), provided that, if Seller elects or is deemed to have el ected option (ii) it may subsequently change its election at any time upon prior written notice to Purchaser. If Seller elects (or is deemed to have elected) option (ii), all obligations of Purchaser under this Agreement shall remain in full force and effect, except for the obligation to make payment for energy delivered subsequent to the Event of Non -Appropriation. Should Purchaser receive an appropriation for this Agreement during the continuation of the Event of Non -Appropriation, before termination Seller has exercised option (i), Purchaser shall pay such monies to Seller for any amounts due and owing under this Agreement to the extent permissible under applicable law, and such Event of Non -Appropriation shall be deemed not to have occurred. Notwithstand ing the occurrence of any Event of Non -Appropriation or the delivery of the NAE Notice, Purchaser will not interrupt or impair the delivery of electricity or jeopardize Seller’s sale, transfer or other monetization of Environmental Incentives, or Tax Credi ts (each as defined in Section 4). If Seller elects option (i) above, Seller shall cause the System to be disconnected and removed from the Premises and Purchaser shall pay to Seller all reasonable removal costs within 30 days after receiving Seller’s invo ice for such removal costs.

3. Billing and Payment; Taxes.

a. Monthly Charges. Purchaser shall pay Seller monthly for the electricity generated by the System and delivered to the Delivery Point at the $/kWh rate shown in Exhibit 1 for the applicable Contract Year (the “Contract Price”). The monthly payment for such energy will be equal to the applicable $/kWh rate multiplied by the number of kWh of electricity generated during the applicable month, as measured by the Meter (as defined in Section 10). Purchaser shall pay, or reimburse Seller for, additional costs or any loss of economic value resulting from items differing from the assumptions set forth in Section 4 of Exhibit 1 or the exclusions set forth in Section 5 of Exhibit 1.

b. Monthly Invoices. Seller shall invoice Purchaser monthly. Such monthly invoices shall state for the applicable month:
(i) the amount of electricity produced by the System and delivered to the Delivery Point, (ii) the rates applicable to, and charges incurred by, Purchaser under this Agreement and (iii) the total amount due from Purchaser.

c. Payment Terms. All amounts due under this Agreement are due and payable net forty five (45) days following receipt of invoice. Any undisputed portion of the invoice amount not paid within such forty five (45) day period shall accrue interest at the annual rate of two and one -half percent (2.5%) above the Wall Street Journal Prime Rate (but not to exceed the maximum rate permitted by law). All payments shall be made in U.S. dollars.

d. Taxes.

i. Purchaser’s Taxes. If applicable to Purchaser, Purchaser is responsible for the payment of, or reimbursement of Seller for: (i) all taxes assessed on the generation, sale, delivery, or consumption of electricity produced by the System or the interconnection of the System to the utility’s electricity distribution system; and (ii) real property taxes.

ii. Seller’s Taxes. Seller is responsible for the payment of: (i) income taxes or similar taxes imposed on Seller’s revenues due to the sale of electricity under this Agree ment; and (ii) personal property taxes imposed on the System (“Seller’s Taxes”).

4. Environmental Attributes, Environmental Incentives, and Tax Credits. Seller is the owner of all Environmental Incentives and is entitled to the benefit of all Tax Credits, and Purchaser’s purchase of electricity under this Agreement does not incl ude Environmental Incentives, or the right to Tax Credits or any other attributes of ownership and operation of the System (except for Environmental Attributes), all of which shall be retained by Seller. Purchaser shall cooperate with Seller in obtaining, securing, and transferring all Environmental Incentives and the benefit of all Tax Credits, including by using the electric energy 434

Ex. 3, pg. 3

generated by the System in a manner necessary to qualify for such available Environmental Incentives and Tax Credits.

Notwithstanding anything to the contrary contained herein, Purchaser shall be the owne r of all Environmental Attributes.

“Environmental Attributes” means any and all credits, benefits, emissions reductions, offsets, and allowances, howsoever entitled, attributable to the System, the production of electrical energy from the System and its d isplacement of conventional energy generation, including (1) any avoided emissions of pollutants to the air, soil or water such as sulfur oxides (SOx), nitrogen oxides (NOx), carbon monoxide (CO) and other pollutants; (2) any avoided emissions of carbon di oxide (CO2), methane (CH4), nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride and other greenhouse gases (GHGs) that have been determined by the United Nations Intergovernmental Panel on Climate Change, or otherwise by law, to contribute to the actual or potential threat of altering the Earth’s climate by trapping heat in the atmosphere; and (3) the reporting rights related to these avoided emissions, such as Green Tag Reporting Rights and Renewable Energy Credits. Green Tag Reporting Rights are the right of a party to report the ownership of accumulated Green Tags in compliance with federal or state law, if applicable, and to a federal or state agency or any other party, and include Green Tag Reporting Rights accruing unde r Section 1605(b) of The Energy Policy Act of 1992 and any present or future federal, state, or local law, regulation, or bill, and international or foreign emissions trading program. Environmental Attributes do not include Environmental Incentives and Tax Credits. Without limiting the generality of the foregoing, Environmental Attributes include carbon trading credits, renewable energy credits or certificates, emissions reduction credits, investment credits, emissions allowances, green tags, tradeable renewable credits, and Green-e® products.

“Environmental Incentives” means any and all credits, rebates, subsidies, payments, or other incentives that relate to self – generation of electricity, the use of technology incorporated into the System, environmental benefits of using the System, or other similar programs available from the utility, any other regulated entity, the manufacturer of any part of the System or any Governmental Authority.

“Governmental Authority ” means any national, state, or local government (whether domestic or foreign), any political subdivision thereof or any other governmental, quasi -governmental, judicial, public, or statutory instrumentality, authority, body, agency, bureau, or entity (including the Federal Energy Regulatory Commission or the California Public Utilities Commission), or any arbitrator with authority to bind a party at law.

“Tax Credits” means any and all (i) investment tax credits, (ii) production tax credits, and (iii) similar tax credits or grants under federal, state, or local law relating to the construction, ownership, or production of energy from the System.

5. Project Development; Force Majeure; Commercial Operation.

a. Project Development. Seller shall diligently pursue the development and installation of the System, subject to Section 2(c), Section 11, and the remaining provisions of this Section 5 . Seller’s obligations under this Agreement are conditioned upon the satisfaction of the following conditions as determined by Seller: (i) a physical inspection of the Premises and the Improvements, including, if applicable, geotechnical work to confirm the suitability of the Premises and the Improvements for the System, (ii) confirmation that Seller will obtain all applicable Environmental Incentives, Tax Credits, and other economic benefits related to the construction, ownership, and operation of the System, (iii) receipt of all Approvals (as defined below), (iv) real estate due diligence; (v) a subordination and non - disturbance agreement in form and substance satisfactory to Seller (each, an “SNDA”) from the owner of the Premises and/or the Improvements and any lienholder with a Lien on the Premises or the Improvements, (vi) Seller securing fin ancing in such amount and upon terms and conditions satisfactory to Seller, and (vii) such other documentation securing Seller’s access rights pursuant to Section 7(a) as Seller may request. Seller may terminate this Agreement without further obligation if the foregoing conditions are not satisfied within 180 days of the Effective Date and such termination shall not constitute a Default Event (as defined below).

b. Permits and Approvals. Seller shall use commercially reasonable efforts to obtain the following at its sole cost and expense (each an “Approval”):

i. any zoning, land use and building permits required for Seller to construct, install, and operate the System; and ii. any agreements and approvals from the utility necessary in order to interconnect the System to the Premises’ electrical system and/or to the utility’s electric distribution system.

Purchaser shall cooperate with Seller’s reasonable requests to assist Seller in obtaining such Approvals, including the execution of documents required to be provided by Purchaser to the local utility.

435

Ex. 3, pg. 4

c. Force Majeure.

i. Force Majeure Event . If either Party is unable to timely perform any of its obligations (other than payment obligations) under this Agreement in whole or in part due to a Force M ajeure Event, that Party will be excused from performing such obligations (other than payment obligations) for the duration of the time that such Party remains affected by the Force Majeure Event; provided, that such Party uses commercially reasonable effo rts to mitigate the impact of the Force Majeure Event and resumes performance of its affected obligations as soon as reasonably practical. The Party affected by the Force Majeure Event shall not be excused from performing the obligations described herein for any Force Majeure Event unless such party notifies the other Party in writing as soon as reasonably practical after the affected Party becomes aware that it is or will be affected by a Force Majeure Event. If the Force Majeure Event occurs during the Te rm and impacts the ability of the System to deliver electricity to the Delivery Point, the Term will be extended day for day for each day delivery is suspended due to the Force Majeure Event.

ii. Extended Force Majeure. If a Force Majeure Event notified by either Party under paragraph (i) above continues for a consecutive period of two hundred seventy (270) days or more within a twelve (12) month period, then either Party may terminate this Agreement without either Party having further liability under this Agr eement except: (a) liabilities accrued prior to termination, and (b) Seller shall remove the System as required under Section 9 (but Purchaser shall reimburse Seller for Seller’s removal costs if the Force Majeure Event affects Purchaser and Purchaser elects to terminate this Agreement). If Purchaser elects to terminate this Agreement in accordance with this Section, Purchaser shall pay the applicable Early Termination Payment (as defined in Section 11(b)(iii)). Notwithstanding the foregoing, if the Force M ajeure Event can be corrected through repair or restoration of the System or other actions by Seller and, prior to expiration of the initial two hundred seventy (270) day period, Seller provides written evidence to Purchaser that it is diligently pursuing such actions, then Purchaser shall not have the right to terminate this Agreement so long as Seller continues to diligently pursue such actions.

“Force Majeure Event ” means any event or circumstance beyond the reasonable control of and without the fault or negligence of the Party claiming a Force Majeure Event, including failure or interruption of the production, delivery or acceptance of electricity due to: an act of god; war (declared or undeclared); sabotage; piracy; riot; insurrection; civil unrest or disturbance; military or guerilla action; terrorism; economic sanction or embargo; civil strike, work stoppage, slow -down, or lock -out; explosion; fire; earthquake; abnormal weather condition or actions of the elements; hurricane; flood; lightning; wind; drought; animals; the binding order of any Governmental Authority (provided that such order has been resisted in good faith by all reasonable legal means); the failure to act on the part of any Governmental Authority (provided that such action has been tim ely requested and diligently pursued); unavailability of electricity from the utility grid; or unavailability of equipment, supplies or products outside of Seller’s control or due to a Force Majeure Event.

d. Commercial Operation. Seller shall notify Purchas er in writing when it has achieved Commercial Operation. The “Commercial Operation Date” shall be the date specified in such notice as such date.

“Commercial Operation” means that the System is mechanically complete, capable of providing electricity to th e Delivery Point at the nameplate capacity specified in Exhibit 2 and has permission to operate from the relevant Governmental Authority. Seller shall provide Purchaser with documentation to evidence that the System is ready to begin Commercial Operation upon Purchaser’s reasonable request.

6. Installation, Operation and Maintenance.

a. Seller’s Obligations Regarding the System. Subject to the terms and conditions of this Agreement, Seller, at its sole cost and expense, except as otherwise expressly provided in this Agreement, shall design, engineer, install, commission, monitor, operate and maintain the System, in each case in a good and workmanlike manner and in accordance with applicable law and prudent solar industry practices in the state in which the Premises are located. The System shall comply in all material respects with all applicable rules, regulations, and local building codes.

b. System Repair and Maintenance. Seller may suspend delivery of electricity from the System to the Delivery Point for the purpose of maintaining and repairing the System; provided that Seller shall use commercially reasonable efforts to minimize any interruption in service to the Purchaser. Standard scheduled and unscheduled maintenance and repairs shall be undertaken at Seller ’s sole cost and expense, except that Purchaser shall reimburse Seller for the reasonable cost of any repairs or maintenance resulting from Purchaser’s breach of this Agreement or the acts or omissions of 436

Ex. 3, pg. 5

Purchaser, its agents, employees, or contractors. S eller shall not be responsible for any work done by others on any part of the System unless Seller authorizes that work in advance in writing. If Seller incurs incremental costs to maintain the System due to conditions at the Premises or due to the inaccur acy of any information provided by Purchaser and relied upon by Seller, the pricing, schedule, and other terms of this Agreement will be, with the prior written consent of Purchaser (which shall not be unreasonably withheld, conditioned, or delayed) equita bly adjusted to compensate for any work in excess of normally expected work required to be performed by Seller.

c. Outages. Upon Purchaser’s written request, Seller shall take the System off-line for a total of forty-eight (48) daylight hours (as defined by the United States National Weather Service in the area where the System is located) during each Contract Year (each event an “ Outage” and the forty-eight (48) hour period the “ Outage Allowance”). The Outage Allowance includes all Outage hours undertaken by Seller for maintenance or repairs for which Purchaser is responsible pursuant to Section 6(b) or requested by Purchaser under this Section 6(c) (other than due to the fault or negligence of Seller). Purchaser’s request shall be delivered at least five (5) days in advance. Purchaser is not obligated to accept or pay for electricity from the System for Outages up to the annual Outage Allowance. If the aggregate hours for Outages exceed the Outag e Allowance in a given Contract Year, Seller shall reasonably estimate the amount of electricity that would have been delivered to Purchaser during such excess Outages and Purchaser shall pay Seller for such amount of electricity at the then applicable Con tract Rate and any associated lost or recaptured Environmental Incentives or Tax Credits and revenue from lost sales of Environmental Attributes and penalties payments associated with the same.

d. Maintenance of Premises. Purchaser shall, at its sole cost and expense, maintain the Premises and Improvements in good condition and repair. Purchaser shall regularly mow, trim, and prune all grass and vegetation under, near, and adjacent to the System. Purchaser (i) shall ensure that the Premises remains interconne cted to the local utility grid at all times and shall be responsible for all costs incurred in connection therewith (other than any costs set forth as Seller’s responsibility in Exhibit 1); and (ii) shall not permit cessation of electric service to the Premises from the local utility, unless caused solely by the local utility . Purchaser is fully responsible for, and shall properly maintain in full working order and good repair, the electrical infrastructure on the Purchaser’s side of the Delivery Point, in cluding all of Purchaser’s equipment that utilizes the System’s outputs. Purchaser shall properly maintain in full working order all of Purchaser’s electric supply or generation equipment that Purchaser may shut down while utilizing the System.

Purchaser shall promptly notify Seller of any matters of which it is aware pertaining to any damage to or loss of use of the System or that could reasonably be expected to adversely affect the System. Purchaser shall use commercially reasonable efforts to cooperate w ith Seller to comply with any technical standard of the utility providing electrical power to the Purchaser.

e. No Alteration of Premises. Purchaser shall not make any alterations or repairs to the Premises or any Improvement which could adversely affect the operation and maintenance of the System without the prior written consent of Seller.

If Purchaser wishes to make such alterations or repairs, Purchaser shall give prior written notice to Seller, setting forth the work to be undertaken (except for emergency repairs, for which notice may be given by telephone), and give Seller the opportunity to advise Purchaser in making such alterations or repairs in a manner that avoids damage to the System, but, notwithstanding any such advice, Purchaser shall be responsible for all damage to the System caused by Purchaser or its contractors. To the extent that temporary disconnection or removal of the System is necessary to perform such alterations or repairs, such work, and any replacement of the System after completion of Purchaser’s alterations and repairs shall be done by Seller or its contractors at Purchaser’s cost. All of Purchaser’s alterations and repairs will be done in a good and workmanlike manner and in compliance with all applicable laws, codes and permits.

7. Installation, Operation and Maintenance.

a. Access Rights. Purchaser hereby grants to Seller and to Seller’s agents, employees, contractors and the utility a non - exclusive, irrevocable, sub -licensable license (the “ Access License ”) for access to, on, over, under and across the Premises from the Effective Date until the date that is one hundred twenty (120) days following the date of expiration or earlier termination of this Agreement (the “ License Term ”), for the purposes of installing, operating, using, maintaining, and removing the System, performing all of Seller’s obligations under this Agreement, enforcing all of Seller’s rights set forth in this Agreement and otherwise as required by Seller in order to effectuate the purposes of this Agreement, includi ng installing, using and maintaining electric lines and equipment, including inverters and meters, necessary to interconnect the System to Purchaser’s electric system at the Premises and/or to the utility’s electric distribution system. In addition to the foregoing, if the System shall be ground-mounted and located within a secure, fenced area on the Premises, Purchaser hereby grants to Seller a non -exclusive, irrevocable, sub -licensable license (the “ Fenced Area License ”, and together with the Access Licen se, the “ Licenses”) for purposes of the installation, operation, use, maintenance, and removal of the System on such licensed area of the Premises during the 437

Ex. 3, pg. 6

License Term. Any access rights provided hereunder shall require Seller to provide at least twenty-four (24) hours’ prior written notice to Purchaser of Seller’s intent to access the Premises , except in cases of an emergency in which case, where feasible, at least six (6) hours’ prior notice to Purchaser shall be required . Seller shall cooperate with Purchaser on the timing and scope of access so as to minimize disruptions to Purchaser’s operations. Seller and its employees, agents and contractors must comply with Purchaser’s site safety and security requirements when on the Premises during the License Term. During the License Term, Purchaser shall preserve and protect Seller’s rights under the Licenses and Seller’s access to the Premises and shall not interfere, or permit any third parties to interfere with, such rights or access. The grant of the Lice nses hereunder shall survive the termination of this Agreement by either Party.

b. OSHA Compliance. Each Party shall comply with all Occupational Safety and Health Act (OSHA) requirements and other similar applicable safety laws and codes with respect to such Party’s performance under this Agreement.

c. Safeguarding the Premises. Purchaser shall maintain security of the Premises and Improvements in a manner to be expected of a reasonable and prudent owner or lessee of premises and improvements similar to the Pr emises and Improvements in nature and location. Purchaser shall not conduct or permit activities on, in or about the Premises or the Improvements that have a reasonable likelihood of causing damage, impairment or otherwise adversely affecting the System. Purchaser shall indemnify Seller for any loss or damage to the System to the extent caused by or arising out of (i) Purchaser’s breach of its obligations under this Section or (ii) the acts or omissions of Purchaser or its employees, agents, invitees, or separate contractors.

d. Insolation. Purchaser acknowledges that unobstructed access to sunlight (“ Insolation”) is essential to Seller’s performance of its obligations and a material term of this Agreement. Purchaser shall not in any way cause, and where possible, shall not in any way permit, any interference with the System’s Insolation, and shall ensure that vegetation on the Premises is regularly pruned or otherwise maintained to prevent interference with the System’s Insolation. If Purchaser discovers any activity or condition that could diminish the Insolation of the System, Purchaser shall immediately notify Seller and cooperate with Seller in preserving and restoring the System’s Insolation levels as they existed on the Commercial Operation Date.

e. Use and Payment of Contractors and Subcontractors . Seller shall be permitted to use suitably qualified, experienced, and licensed contractors and subcontractors to perform its obligations under this Agreement. Seller shall be responsible for the quality of the work performed by its contractors and subcontractors. Seller shall pay when due all valid charges from all contractors, subcontractors and suppliers supplying goods or services to Seller under this Agreement and shall keep the Premises and the Improveme nts free and clear of any mortgage, pledge, lien, charge, security interest, encumbrance, or other claim of any nature (each a “ Lien”) on or with respect to the Premises or the Improvements related to such charges, other than those Liens granted hereunder and Liens which Seller is permitted by law to place on the Premises or the Improvements due to non -payment by Purchaser of amounts due under this Agreement. Seller shall indemnify Purchaser from and against all claims, losses, damages, liabilities, and exp enses resulting from any Liens filed against the Premises or the Improvements as a result of Seller’s breach of its obligations under this Section 7(e), provided that Seller shall have the right to contest any such Lien, so long as it provides a statutory bond or other reasonable assurances of payment that either remove such Lien from title to the Premises and the Improvements or that assure that any adverse judgment with respect to such Lien will be paid without affecting title to the Premises or the Improvements.

f. Delivery of Financial Statements. During the Term, Purchaser shall deliver to Seller (i) its annual audited financial statements within 180 days after the end of each Fiscal Year, (ii) its annual budget for the succeeding Fiscal Year promptly following approval thereof, (iii) proof of appropriation of funds for payments due hereunder with its annual budget, and (iv) such other financial statements and information relating to the ability of Purchaser to satisfy its obligations under this Agreement as may be reasonably requested by Seller from time to time.

g. Liens. Purchaser shall not directly or indirectly cause, create, incur, assume, or allow to exist any Lien on or with respect to the System. Purchaser shall promptly notify Seller in writing of t he existence of any such Lien following discovery of same, and shall promptly (and in all events within thirty (30) days) cause the same to be discharged and released of record without cost to Seller. Purchaser shall indemnify Seller from and against all claims, losses, damages, liabilities, and expenses resulting from any Liens filed against the System.

h. Breakdown Notice . Purchaser shall promptly notify Seller following the discovery by Purchaser of any material malfunction in the operation of the System, an interruption in the supply of electrical energy, or anything else adversely affecting the System. Purchaser shall notify Seller immediately upon the discovery of an emergency condition 438

Ex. 3, pg. 7

affecting the System. Seller shall promptly commence the repair of the System in accordance with Section 6.a.

i. Unanticipated Conditions. If any conditions exist, arise, or are discovered at the Premises (each, an “Unanticipated Condition”) that differ materially from: (i) the information, assumptions, and exclusions contained in the documents referenced in Exhibit 1 and Exhibit 2, (ii) the assumption that the soils at the Premises have an allowable vertical bearing pressure of 2,000 psf and a lateral bearing pressure of 300 psf/ft below natural grade, or (iii) those conditions that Seller discovered or should have reasonably discovered based on the visual inspection of the Premises, including without limitation, conditions related to Hazardous Substances (as defined below), or archeological findings, soils conditions, or subsurface obstructions of which Contactor was not aware on the date of this Agreement or could not reasonably be expected to anticipate based on the inspection described above, and such conditions involve the incurrence by Seller of any material expenses to correct or accommodate such conditions, Seller shall submit a request for approval of a change order and payment of the related expenses to Purchaser. Purchaser and Seller may mutually agree to reduce portions of the work under this Agreement to offset the change order request to comply with Purchaser budget limits.

8. Relocation of System.

If, during the Term, Purchaser ceases to conduct business operations at the Premises or vacates the Premises, the Premises have been destroyed, or the Purchaser is otherwise unable to continue to host the System or accept the electricity delivered by th e System (other than due to a Default Event by Seller), Purchaser may propose in writing the relocation of the System, at Purchaser’s cost, in lieu of termination of this Agreement by Seller for a Default Event by Purchaser. If such proposal is practically feasible and preserves the economic value of the agreement for Seller, the Parties shall seek to negotiate in good faith an agreement for the relocation of the System. If the Parties are unable to reach agreement on relocation of the System within sixty (60) days after the date of receipt of Purchaser’s proposal, Seller may terminate this Agreement pursuant to Section 11(b)(ii) and exercise any and all of its remedies in accordance therewith.

9. Removal of System upon Termination or Expiration.

Upon the expiration or earlier termination of this Agreement (provided Purchaser does not exercise its purchase option under Section 14(b)), Seller shall, at its expense (unless expressly provided otherwise in this Agreement), remove all of the tangible property comprising the System from the Premises (except as set forth below) no later than ninety (90) days after the expiration of the Term , provided that Seller shall receive an additional thirty (30) days to complete the removal if Seller is diligently pursuing removal in good faith . The portion of the Premises where the System is located shall be returned to substantially its original condition (excluding ordinary wear and tear), provided that, (i) if the System is ground or canopy mounted, Seller shall not be responsible for the removal of any below grade structures, and (ii) if the System is roof mounted, Seller shall not be responsible for the repair and restoration of the roof or the roof membrane. Purchaser must provide sufficient access, space, and cooperation as reasonably necessary to facilitate System removal. If Seller fails to remove the System by such agreed upon date, Purchaser may, at its option, remove the System to a public warehouse and restore the Premises to its original conditio n (other than ordinary wear and tear) at Seller’s cost.

10. Measurement.

a. Monitoring; Meter. Purchaser shall provide Seller with a sufficiently high speed internet data line during the Term to enable Seller to monitor the System’s performance and record the electric e nergy generated by the System. The System’s electricity output during the Term shall be measured by Seller’s meter, which shall be a revenue grade meter that meets ANSI-C12.20 standards for accuracy (the “Meter”). Purchaser shall have access to the metered electricity output data via the monitoring system installed and maintained by Seller as part of the System.

b. Meter Calibration . Seller shall calibrate the Meter in accordance with manufacturer’s recommendations.

Notwithstanding the foregoing, Purchaser ma y install, or cause to be installed, its own revenue -grade meter at the same location as the Meter. If there is a discrepancy between the data from Purchaser’s meter and the data from the Meter of greater than two percent (2%) over the course of a Contract Year, then Purchaser may request that Seller calibrate the Meter at Seller’s cost.

11. Default, Remedies and Damages.

a. Default. Any Party that fails to perform its responsibilities as listed below or experiences any of the circumstances listed below is deemed a “Defaulting Party”, the other Party is the “Non-Defaulting Party” and each of the following is a “Default Event”:
439

Ex. 3, pg. 8

i. failure of a Party to pay any amount due and payable under this Agreement, other than an amount that is subject to a good faith dispute, within ten (10) days following receipt of written notice from the Non -Defaulting Party of such failure to pay;

ii. failure of a Party to perform any material obligation under this Agreement not addressed elsewhere in this Section 11(a) within thirty (30) days following receipt of written notice from the Non-Defaulting Party demanding such cure; provided, that if the Default Event cannot reasonably be cured within thirty (30) days, the cure period will be extended for a further reasonable period of time (but not beyond ninety (90) days) if the Defaulting Party has demonstrated prior to the end of that period that it is diligently pursuing such cure and there is no material adverse effect to the Non-Defaulting Party resulting from such extended cure period;

iii. any representation or warranty given by a Party under this Agreement was incorrect in any material respect when made and is not cured within thirty (30) days following receipt of written notice from the Non -Defaulting Party demanding such cure;
iv. a Party becomes insolvent or is a party to a bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or any general assignment for the benefit of creditors or other similar arrangement or any event occurs or proceedings are taken in any jurisdiction with respect to the Party which has a similar effect (or, if any such action s are initiated by a third party, such action(s) is(are) not dismissed within sixty (60) days); or

v. Purchaser (i) loses its rights to occupy and enjoy the Premises; or (ii) prevents Seller from installing the System, delivering electric energy from the System, or performing any material obligation under this Agreement.

b. Remedies.

i. Suspension. Upon the occurrence and during the continuation of a Default Event by Purchaser, Seller may suspend performance of its obligations under this Agreement until the earlier to occur of the date (a) that Purchaser cures the Default Event in full, or (b) of termination of this Agreement.

ii. Termination. Upon the occurrence and during the continuation of a Default Event, the Non-Defaulting Party may terminate this Agreement by providing five (5) days prior written notice to the Defaulting Party; provided, that, if a Default Event under Section 11(a)(iv) occurs, the Non -Defaulting Party may terminate this Agreement immediately.

iii. Damages Upon Termination by Default . Upon termination of this Agreement pursuant to Section 11(b)(ii), the Defaulting Party shall pay a termination payment to the Non-Defaulting Party determined as follows (the “Early Termination Payment”):

1. Termination by Seller. If Purchaser is the Defaulting Party and Seller terminates this Agreement, the Early Termination Payment payable to Seller shall be equal to the sum of (i) the applicable amount set forth in the Early Termination Payment Schedule set forth in Section 6 of Exhibit 1; (ii) all reasonable costs (termination fees or penalties), if any, incurred in connection with the termination of, or default under, any other agreements associated with the System ( e.g., third-party contractor agreements, arrangements with the local utility, incentive, rebate, or Environmental Incentives sale agreements); (iii) all reasonable costs incurred by Seller in connection with the Default Event (including reasonable attorneys’ fees and costs of dismantling, packing, removing and transporting the System); and (iv) any other amounts previously accrued under this Agreement and then owed by Purchaser to Seller.

2. Termination by Purchaser. If Seller is the Defaulting Party and Purchaser terminates this Agreement, the Early Termination Payment payable to Purchaser shall be equal to the sum of (i) the present value (using a discount rate of 7% per annum) of the excess, if any, of the reasonably expected cost of electricity from the utility over the Contract Price for the reasonably expected production of the System for the remainder of the Initial Term or the then current Additional Term, as applicable; (ii) all direct costs (including reasonable attorneys’ fees) reasonably incurred by Purchaser in connection with the Default Event , including reasonable attorneys’ fees and costs of d ismantling, packing, removing and transporting the System; and (iii) any and all other amounts previously accrued under this Agreement and then owed by Seller to Purchaser. The Early Termination Payment determined under this Section 11(b)(iii)(2) cannot 440

Ex. 3, pg. 9

be less than zero.

iv. Liquidated Damages. The Parties agree that, if either Party terminates this Agreement prior to the expiration of the Term pursuant to Section 11(b)(ii), actual damages would be difficult to ascertain, and the Early Termination Payment as determined in accordance with Section 11(b)(iii)(1) and Section 11(b)(iii)(2) , as applicable, is a reasonable approximation of the damages suffered by Seller or Purchaser, as applicable, as a result of early termination of this Agreement and is not a penalty.

c. Obligations Following Termination . If a Party terminates this Agreement pursuant to Section 11(b)(ii) , then following such termination, Seller shall remove the equipment constituting the System in compliance with Section 9 above at the sole cost and e xpense of the Defaulting Party, provided, however that Seller shall not be required to remove the System following the occurrence of a Default Event by Purchaser, unless Purchaser pre -pays the cost of removal and restoration reasonably estimated by Seller.

d. Reservation of Rights . Except in the event of a termination under Section 11(b)(ii) and payment of the Early Termination Payment, if any, determined pursuant to Section 11(b)(iii), nothing in this Section 11 limits Seller’s or Purchaser’s right to pursue any remedy under this Agreement, at law or in equity, including with respect to the pursuit of an action for damages by reason of a breach or Default Event under this Agreement. e. Mitigation Obligation. Regardless of whether this Agreement is terminated for a Default Event, the Non-Defaulting Party must make commercially reasonable efforts to mitigate its damages as the result of such Default Event; provided that such obligation shall not reduce Purchaser’s obligation to pay the full Early Termination Paymen t following a Default Event by Purchaser.

f. No Limitation on Payments. Nothing in this Section 11 excuses a Party’s obligation to make any payment when due under this Agreement, including with respect to payments for electricity that would have been deliver ed to Purchaser but for a Purchaser breach or Default Event.

12. Representations and Warranties.

a. Seller Representations and Warranties. Seller represents and warrants to Purchaser:

i. Organization; Authorization; Enforceability. Seller is duly organized, validly existing and in good standing under the laws of the jurisdiction of its formation; the execution, delivery and performance by Seller of this Agreement have been duly authorized by all necessary corporate, partnership or limited liability company ac tion, as applicable, and do not and will not violate any law; and this Agreement is the valid obligation of Seller, enforceable against Seller in accordance with its terms (except as may be limited by applicable bankruptcy, insolvency, reorganization, mora torium and other similar laws now or hereafter in effect relating to creditors’ rights generally).

ii. Authorizations. Seller has obtained all licenses, authorizations, consents, and approvals required by any Governmental Authority or other third party and necessary for Seller to execute and deliver this Agreement and perform its obligations hereunder; and Seller is in c ompliance with all laws that relate to this Agreement in all material respects.

b. Purchaser’s Representations and Warranties. Purchaser represents and warrants to Seller the following:

i. Organization; Authorization; Enforceability . Purchaser is a body politi c of the state in which the Premises is located, duly organized and existing under the Constitution and laws of such state, and is authorized under the Constitution and laws of such state to enter into this Agreement and the transactions contemplated hereby and to perform all of its obligations under this Agreement. The execution, delivery and performance of this Agreement has been duly authorized by all necessary action of Purchaser’s governing body and such action is in compliance with all public bidding and other state and federal laws applicable to this Agreement. This Agreement has been duly executed and delivered by and constitutes the valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms (except as may b e limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other similar laws now or hereafter in effect relating to creditors’ rights generally).

ii. Authorizations. Purchaser has obtained all licenses, authorizations, consents, and appr ovals required by any 441

Ex. 3, pg. 10

Governmental Authority or other third party and necessary for Purchaser to execute and deliver this Agreement and perform its obligations hereunder; and Purchaser is in compliance with all laws that relate to this Agreement in all material respects.

iii. Licenses. (a) Purchaser has title to or a leasehold or other valid property interest in the Premises and the Improvements such that Purchaser has the full right, power and authority to grant the Licenses in Section 7(a), (b) such grant of the Licenses does not violate any law, ordinance, rule or other governmental restriction applicable to Purchaser or the Premises or the Improvements and is not inconsistent with and will not result in a breach or default under any agreement by which Purcha ser is bound or that affects the Premises, and (c) if Purchaser does not own the Premises or any Improvement on which the System is to be installed, Purchaser has obtained all required consents from the owner of the Premises and/or Improvements, as the case may be, to grant the Licenses so that Seller may perform its obligations under this Agreement.

iv. Other Agreements. Neither the execution and delivery of this Agreement by Purchaser nor the performance by Purchaser of any of its obligations under this Agreement conflicts with or will result in a breach or default under any agreement or obligation to which Purchaser is a party or by which Purchaser is bound.

v. Accuracy of Information. All information provided by Purchaser to Seller as it pertains to (a) the Premises, (b) the Improvements on which the System is to be installed, if applicable, (c) Purchaser’s planned use of the Premises and any applicable Improvements, and (d) Purchaser’s estimated electricity requirements, is accurate in all material respects.
vi. Purchaser Status . Purchaser is not a public utility or a public utility holding company and is not subject to regulation as a public utility or a public utility holding company.

vii. Hazardous Substances. To the best of Purchaser’s knowledge, there are no Haz ardous Substances at, on, above, below or near the Premises or the Improvements.

viii. Limit on Use. No portion of the electricity generated by the System shall be used to heat a swimming pool.

13. Insurance.

a. Insurance Coverage. At all times during the Term, the Parties shall maintain the following insurance, as applicable:

i. Seller’s Insurance. Seller shall maintain or cause the following to be maintained (a) property insurance on the System for the replacement cost thereof, (b) commercial general liability insura nce with coverage of at least $1,000,000 per occurrence and $2,000,000 annual aggregate, (c) employer’s liability insurance with coverage of at least $1,000,000 and (d) workers’ compensation insurance as required by law. Seller’s coverage may be provided as part of an enterprise insurance program.

ii. Purchaser’s Insurance. Purchaser agrees to maintain a program of self-insurance of $5,000,000 or (a) commercial general liability insurance with coverage of at least $1,000,000 per occurrence and $2,000,000 annual aggregate, and (b) property insurance on the Premises and the Improvements in an amount not less than the replacement value of the Premises and the Improvements.

b. Policy Provisions. Each Party’s insurance policies shall (i) contain a provision whereby the insurer agrees to give the other Party at least thirty (30) days (ten (10) days for non -payment of premiums) written notice before the insurance is cancelled or terminated, (ii) be written on an occurrence basis, and (iii) be maintained with companies e ither rated no less than A -VII as to Policy Holder’s Rating in the current edition of A.M. Best’s Insurance Guide or otherwise reasonably acceptable to the other Party.

c. Certificates. Upon the other Party’s request, each Party shall deliver to the other Pa rty certificates of insurance evidencing the above required coverage. A Party’s receipt, review, or acceptance of such certificate shall in no way limit or relieve the other Party of the duties and responsibilities to maintain insurance as set forth in thi s Agreement.

d. Deductibles. Each Party shall pay its own insurance deductibles, except in the case of claims (i) resulting from a breach of this Agreement, in which case the breaching Party is responsible for payment of the non -breaching Party’s deductible for any responding insurance, and (ii) covered by an indemnity set forth in this Agreement.

442

Ex. 3, pg. 11

14. Ownership; Option to Purchase.

a. Ownership of System.

i. Ownership; Personal Property. Throughout the Term, Seller shall be the legal and beneficial owner of the System and the System will remain the personal property of Seller and will not attach to or be deemed a part of, or fixture to, the Premises or any Improvement on which the System is installed. Each of the Seller and Purchaser agree that the Seller is the tax owner of the System and all tax filings and reports shall be filed in a manner consistent with this Agreement. The System will at all times retain the legal status of personal property as defined in Article 9 of the Uniform Commercial Code.

ii. Notice to Purchaser Lienholders . Purchaser shall place all parties having a Lien on the Premises or any Improvement on notice of the ownership of the System and the legal status or classification of the System as personal property. If any Lien on the Premises or any Improvement could reasonably be construed as prospectively attaching to the System as a fixture of the Premises, Purchaser shall provide a disclaimer or release from the lienholder.

iii. Fixture Disclaimer. If Purchaser is the fee owner of the Premises and th e Improvements, Purchaser consents to the filing of a disclaimer of the System as a fixture of the Premises and the Improvements in the office where real estate records are customarily filed in the jurisdiction where the Premises and the Improvements are located.

If Purchaser is not the fee owner, Purchaser shall obtain such consent from the fee owner. For the avoidance of doubt, in either circumstance Seller has the right to file such disclaimer.

iv. SNDA. Upon request, Purchaser shall deliver to Seller an SNDA in form and substance satisfactory to Seller and Purchaser to Seller from the owner of the Premises and/or the Improvements and any lienholder with a Lien on the Premises or the Improvements.

v. Eviction Notice . To the extent that Purchaser does not own t he Premises or any Improvement on which the System is installed, Purchaser shall provide to Seller immediate written notice of receipt of notice of eviction from the Premises or applicable Improvement or termination of Purchaser’s lease of the Premises and /or Improvement.

vi. Memorandum. Purchaser shall execute and deliver a memorandum of this Agreement prepared by Seller, and Seller shall have the right to record the memorandum in the real estate records of the county where the Premises is located.

b. Option to Purchase.

i. Exercise of Option. At the end of the 7th, 10th, 15th, and 20th Contract Years and at the end of the Initial Term and each Additional Term, so long as Purchaser is not in default under this Agreement, Purchaser may purchase the System from Seller on any such date for a purchase price equal to the greater of the Fair Market Value of the System or the Early Termination Payment applicable as of the date of the transfer of title to the System.

Purchaser shall notify Seller of its intent to purchase at least ninety (90) days and not more than one hundred eighty (180) days prior to the end of the applicable Contract Year or the Initial Term or Additional Term, as applicable, and the purchase shall be completed prior to the end of the applicable Contrac t Year or the Initial Term or Additional Term, as applicable.

ii. Fair Market Value. The “Fair Market Value” of the System shall mean the amount that would be paid for the System in place and in use in arm’s length transaction between a willing and informed buyer and seller under no compulsion to transact. The Parties shall determine the Fair Market Value by mutual agreement; provided, however, if the Parties cannot agree to a Fair Market Value within thirty (30) days after Purchaser has delivered to Seller a notice of its intent to purchase the System , the Parties shall select a nationally recognized independent appraiser with experience and expertise in the solar photovoltaic industry to determine the Fair Market Value of the System. Such appraiser shall a ct reasonably and in good faith to determine the Fair Market Value of the System and shall set forth such determination in a written opinion delivered to the Parties. The valuation made by the appraiser will be binding upon the Parties in the absence of fraud or manifest error. The costs of the appraisal shall be borne by the Purchaser.
443

Ex. 3, pg. 12

iii. Title Transfer; Warranties; Manuals. Seller shall transfer good title to the System free and clear of all liens arising by or through Seller to Purchaser upon Seller’s receipt of the purchase price together with all taxes due upon such sale and execution by the Parties of a written instrument or agreement to effect such transfer. The System will be sold “AS IS, WHERE IS, WITH ALL FAULTS” AND SELLER OTHERWISE DISCLAIMS AL L

REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, CONCERNING THE

SYSTEM (OTHER THAN AS TO TITLE AS SET FORTH IN THE IMMEDIATELY PRECEDING

SENTENCE), INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A

PARTICULAR PURPOSE, OR WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE. Seller will provide copies to Purchaser of the applicable warranty documentation and assign to Purchaser any manufacturer’s warranties that are in effect as of the date of purchase and which are then assignable pursuant to their terms. Seller shall also provide Purchaser all System operation and maintenance manuals and logs in Seller’s possession and provide Purchaser basic training , at Seller’s cost, on the operation and maintenance of the System upon Purch aser’s reasonable request. Upon purchase of the System, Purchaser shall assume complete responsibility for the operation and maintenance of the System and liability for the performance of (and risk of loss for) the System, and Seller will have no further l iabilities or obligations hereunder or with respect to the System.

15. Indemnification; Limitations of Liability and Remedies; Disclaimer of Warranties .

a. General. Each Party (the “Indemnifying Party”) shall defend, indemnify, and hold harmless the other Party, its affiliates and the other Party’s and its affiliates’ respective directors, officers, shareholders, partners, members, contractors, agents and employees (collectively, the “Indemnified Parties”), from and against any loss, damage, expense, liabil ity and other claims, including court costs and reasonable attorneys’ fees asserted by a third party (collectively, “Liabilities”) resulting from any third party actions relating to (1) the Indemnifying Party’s breach of this Agreement or (2) injury to or death of persons, and damage to or loss of property, to the extent caused by or arising out of the negligent acts or omissions of, or the willful misconduct of, the Indemnifying Party (or its affiliates, contractors, agents or employees) in connection with this Agreement; provided, however, that nothing herein will require the Indemnifying Party to indemnify the Indemnified Parties for any Liabilities to the extent caused by or arising out the negligent acts or omissions of, or the willful misconduct of, an Indemnified Party. This Section 15(a) does not apply to Liabilities arising out of or relating to any form of Hazardous Substances or other environmental contamination, such matters being addressed exclusively by Section 15(c). b. Notice and Participation in Third Party Claims. The Indemnified Party shall give the Indemnifying Party written notice with respect to any Liability asserted by a third party (a “Claim”), promptly upon the receipt of information of any possible Claim or the commencement of such Clai m. The Indemnifying Party may assume the defense of any Claim, at its sole cost and expense, with counsel designated by the Indemnifying Party and reasonably satisfactory to the Indemnified Party. The Indemnified Party may, however, select separate counsel if both Parties are defendants in the Claim and any defense or other form of participation is not reasonably available to the Indemnifying Party. The Indemnifying Party shall pay the reasonable attorneys’ fees incurred by such separate counsel until such time as the need for separate counsel expires. The Indemnified Party may also, at the sole cost and expense of the Indemnifying Party, assume the defense of any Claim if the Indemnifying Party fails to assume the defense of the Claim within a reasonable time. Neither Party may settle any Claim covered by this Section 15(b) unless it has obtained the prior written consent of the other Party, which consent shall not be unreasonably withheld, conditioned, or delayed. The Indemnifying Party shall not be liable under Section 15(a) for any Claim for which notice is not timely provided to the Indemnifying Party in accordance with this Section 15(b) to the extent such failure to give notice prejudices the Indemnifying Party.

c. Environmental Indemnification.

i. Seller Indemnity. Seller shall indemnify, defend, and hold harmless all of Purchaser’s Indemnified Parties from and against all Liabilities arising out of or relating to the existence at, on, above, below or near the Premises of any Hazardous Substance (as defined in Section 15(c)(iii)) to the extent deposited, spilled, or otherwise caused by Seller or any of its contractors, agents, or employees.

ii. Purchaser Indemnity. Purchaser shall indemnify, defend, and hold harmless all of Seller’s Indemnified Parties from and against all Liabilities arising out of or relating to the existence at, on, above, below or near the Premises of any Hazardous Substance, except to the extent deposited, spilled, or otherwise caused by Seller or any of its contractors, agents, or employees.
444

Ex. 3, pg. 13

iii. Notice. Each Party shall promptly notify the other Party if it becomes aware of any Hazardous Substance or any deposit, spill, or release of any Hazardous Substance, at, on, above, below or near the Premises generally. “Hazardous Substance ” means any c hemical, waste or other substance (a) which now or hereafter becomes defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous wastes,” “restricted hazardous wastes,” “toxic substances,” “toxic pollutants,” “pollution,” “pollutants,” “regulated substances,” or words of similar import under any laws pertaining to the environment, health, safety or welfare, (b) which is declared to be hazardous, toxic, or polluting by any Governmental Authority, (c) exposure to which is now or hereafter prohibited, limited or regulated by any Governmental Authority, (d) the storage, use, handling, disposal or release of which is restricted or regulated by any Governmental Authority, or (e) for which remediation or cleanup is required by any Governmental Authority.

d. Limitations on Liability.

i. NO CONSEQUENTIAL DAMAGES . EXCEPT WITH RESPECT TO INDEMNIFICATION OF THIRD - PARTY CLAIMS PURSUANT TO THIS SECTION 15 , NEITHER PARTY NOR ITS DIRECTORS,

OFFICERS, SHAREH OLDERS, PARTNERS, MEMBERS, AGENTS, EMPLOYEES, CONTRACTORS

SUBCONTRACTORS, OR SUPPLIERS WILL BE LIABLE FOR ANY INDIRECT, SPECIAL,

INCIDENTAL, EXEMPLARY, OR CONSEQUENTIAL LOSS OR DAMAGE OF ANY NATURE (INCLUDING LOST REVENUES, LOST PROFITS, LOST BUSINESS OPPO RTUNITY OR ANY

BUSINESS INTERRUPTION) ARISING OUT OF THEIR PERFORMANCE OR NON -PERFORMANCE HEREUNDER EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING

THE PREVIOUS SENTENCE, THE EARLY TERMINATION PAYMENT SHALL BE DEEMED TO BE

DIRECT DAMAGE S, AND NOT INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES FOR PURPOSE OF THIS SECTION 15(D)(I).

ii. ACTUAL DAMAGES . EXCEPT WITH RESPECT TO INDEMNIFICATION OF LIABILITIES AND CLAIMS PURSUANT TO THIS SECTION 15 , SELLER’S AGGREGATE LIABILITY UNDER THIS

AGREEMENT ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE OR NON -

PERFORMANCE OF THIS AGREEMENT CANNOT EXCEED THE TOTAL PAYMENTS ACTUALLY MADE BY PURCHASER UNDER THIS AGREEMENT. THE PROVISIONS OF THIS SECTION 15(D)(II) WILL APPLY WHETHER SU CH LIABILITY OR CLAIM ARISES IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE.

e. NO WARRANTY. EXCEPT AS EXPRESSLY SET FORTH HEREIN, NO WARRANTY WITH RESPECT TO THE SYSTEM OR THE PERFORMANCE OF SELLER’S OBLIGATIONS HEREUNDER, WHETHER

STATUTORY, WRITTEN, ORAL, EXPRESS, OR IMPLIED, INCLUDING WARRANTIES OF

MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, OR WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE, APPLIES UNDER THIS AGREEMENT.

f. [reserved.]

g. Comparative Negligence. Where negligence is determined to have been joint, contributory, or concurrent, each Party shall bear the proportionate cost of any Liability.

16. Change in Law.

a. Impacts of Change in Law. If Seller determines that a Change in Law (as defined in Section 16(c)) has occurred or will occur that has or may have a material adverse effect on Seller’s rights, entitlement, obligations, or costs under this Agreement, then Seller may so notify the Purchaser in writing of such Change in Law. Within thirty (30) days following receipt by Purchaser of such notice, the Parties shall meet and attempt in good faith to negotiate such amendments to this Agreement as are reasonably necessary to preserve the economic value of this Agreement to both Parties. If the Parties are unab le to agree upon such amendments within such thirty (30) day period, then Seller may terminate this Agreement and, at Seller’s option, remove the System and restore the Premises in accordance with Section 9 without either Party having further liability und er this Agreement except with respect to liabilities accrued prior to the date of termination.

b. Illegality or Impossibility. If a Change in Law renders this Agreement, or Seller’s performance of this Agreement, either illegal or impossible, then Seller may terminate this Agreement immediately upon notice to Purchaser and, at 445

Ex. 3, pg. 14

Seller’s option, remove the System and restore the Premises in accordance with Section 9 without either Party having further liability under this Agreement except with respect to liabilities accrued prior to the date of termination.

c. “Change in Law” means (i) the enactment, adoption, promulgation, modification, or repeal after the Effective Date of any applicable law or regulation, (ii) the imposition of any material conditions on the issuance or renewal of any applicable permit after the Effective Date (notwithstanding the general requirements contained in any applicable permit at the time of application or issue to comply with future laws, ordinances, codes, rules, regulations, or sim ilar legislation), or (iii) a change in any utility rate schedule or tariff approved by any Governmental Authority.

17. Assignment and Financing.

a. Assignment.

i. Restrictions on Assignment. Subject to the remainder of this Section 17(a), this Agreement may not be assigned in whole or in part by either Party without the prior written consent of the other Party, which consent may not be unreasonably withheld, conditioned, or delayed. Purchaser may not withhold its consent to an assignment proposed by Seller where the proposed assignee has the financial capability and experience necessary to operate and maintain solar photovoltaic systems such as the System.

ii. Permitted Assignments . Notwithstanding Section 17(a)(i) , Seller may, without the prior written consent of Purchaser, assign, mortgage, pledge or otherwise directly or indirectly assign its interests in this Agreement or the System to (A) any Financing Party (as defined in Section 17(b) ), (B) any entity through which Seller is obtaining financing or capital from a Financing Party, or (C) any affiliate of Seller or any person succeeding to all or substantially all of the assets of Seller.

iii. Successors and Permitted Assignees . This Agreement is binding on and inures to the benefit of the Parties and their respective successors and permitted assignees. The restrictions on assignment contained herein do not prohibit or otherwise limit changes in control of Seller.

b. Financing. The Parties acknowledge that Seller may obtain debt or equity financing or other credit support from one or more lenders, investors, or other third parties (each a “ Financing Party ”) in connection with the installation, construction, ownership, operation, and maintenance of the System. In furtherance of Seller’s financing arrangements and in addition to any other rights or entitlements of Seller under this Agreement, Purchaser shall timely execute any consents to assignment (which may include notice, cure, attornment and step -in rights) or estoppels, provide any opinions of counsel, and negotiate any amendments to this Agreement that may be reasonably requested by Seller or the Financing Parties; provided, that such estoppels, consents to assignment or amendments do not alter the fundamental economic terms of this Agreement.

c. Rights of Financing Party . Notwithstanding any provisions to the contrary herein, each Financing Party shall have the following rights:

i. Step-In Rights. The Financing Party, as owner or collateral assignee of the System, or as collateral assignee of this Agreement, shall be entitled to exercise, in the place and stead of Seller, any and all rights and remedies of Seller under this Agreement in accordance with the terms of this Agreement. The Financing Party shall also be entitled to exercise all rights and remedies of an owner or s ecured party, as applicable, with respect to this Agreement and the System.

ii. Right to Perform. The Financing Party shall have the right, but not the obligation, to pay all sums due hereunder and to perform any other act, duty, or obligation required of Sel ler hereunder in the time and manner provided hereunder. Nothing herein requires the Financing Party to pay any sums due hereunder or to perform any act, duty, or obligation of Seller hereunder (unless the Financing Party has assumed in writing Seller's ob ligations under this Agreement), but Purchaser hereby gives it the option to do so.

iii. Exercise of Remedies. Upon the exercise of any remedies of the Financing Party, including any sale of the System by the Financing Party, whether by judicial proceeding or under any power of sale contained therein, or any conveyance from Seller to the Financing Party (or any assignee of the Financing Party) in lieu thereof, the Financing Party shall give notice to Purchaser of the transfer or assignment of this Agreement. Any such exercise of remedies shall not constitute a Default Event under this Agreement. 446

Ex. 3, pg. 15

iv. Cure of Bankruptcy Rejection. Upon any rejection or other termination of this Agreement pursuant to any process undertaken with respect to Seller under the United States Bankruptcy Code, at the request of Financing Party made within ninety (90) days of such termination or rejection, Purchaser shall enter into a new agreement with Financing Party or its assignee having substantially the same terms and conditions as t his Agreement.

v. Right to Cure. Purchaser will not exercise any right to terminate or suspend this Agreement unless it shall have given the Financing Party prior written notice of its intent to terminate or suspend this Agreement specifying the condition giving rise to such right, and the Financing Party shall not have cured (or caused to be cured) the condition giving rise to the right of termination or suspension within thirty (30) days after receipt of such notice or (if longer) the periods provided for i n this Agreement; provided that if such Default Event by Seller cannot reasonably be cured by the Financing Party within such period and the Financing Party commences and continuously pursues cure of such Default Event within such period, such period for c ure will be extended for a reasonable period of time under the circumstances, such period not to exceed an additional ninety (90) days. The Parties' respective obligations will otherwise remain in effect during any cure period. If the Financing Party or its assignee (including any purchaser or transferee) shall acquire title to or control of Seller's assets pursuant to an exercise of remedies by the Financing Party, and shall, within the time periods set forth in this Section 17(c)(v), cure all Default Events by Seller which are capable of cure by a third person or entity existing as of the date of such change in title or control, then such person shall no longer be in default under this Agreement, and this Agreement shall continue in full force and effect.

vi. Financing Party a Third Party Beneficiary . Purchaser agrees and acknowledges that Financing Party is a third party beneficiary of the provisions of this Section 17(c).

18. Confidentiality.

a. Confidential Information. “Confidential Information” shall include all information of any nature and in any form which at the time or times concerned is not generally known to the public, including, but not limited to, information relating to business and product or service plans, design, financial projections, customer li sts, business forecasts, and financial models. To the maximum extent permitted by applicable law, if either Party provides Confidential Information to the other or, if in the course of performing under this Agreement or negotiating this Agreement a Party learns Confidential Information of the other Party, the receiving or learning Party shall (i) protect the Confidential Information from disclosure to third parties with the same degree of care accorded its own confidential and proprietary information, and ( ii) refrain from using such Confidential Information, except in the negotiation, performance, enforcement and, in the case of Seller, financing, of this Agreement.

b. Permitted Disclosures. Notwithstanding Section 18(a):

i. a Party may provide such Confidential Information to its affiliates and to its and its affiliates’ respective officers, directors, members, managers, employees, agents, contractors, consultants, Financing Parties, and direct and indirect successors or permitted assignees (collectively, “Representatives”). Each Party is liable for breaches of this Section 18 by any person to whom that Party discloses Confidential Information.

ii. Confidential Information does not include any information that (a) becomes publicly available other than through breach of this Agreement, (b) is required to be disclosed to a Governmental Authority under applicable law or pursuant to a validly issued subpoena, (c) is independently developed by the receiving Party, or (d) becomes available to the receiving Party without restriction from a third party under no obligation of confidentiality. If disclosure of information is required by a Governmental Authority, the disclosing Party shall, to the extent permitted by applicable law, notify the other Party of such required disc losure promptly upon becoming aware of such required disclosure and shall reasonably cooperate with the other Party’s efforts to limit the disclosure to the extent permitted by applicable law.

c. Miscellaneous. All Confidential Information remains the property of the disclosing Party and will be returned to the disclosing Party or destroyed (at the receiving Party’s option) after the receiving Party’s need for it has expired or upon the request of the disclosing Party. Each Party acknowledges that the disclosing Party may be irreparably injured by a breach of this Section 18 by the receiving Party or its Representatives or other person to whom the receiving Party discloses Confidential Information of the disclos ing Party and that the disclosing Party may be entitled to equitable relief, including injunctive relief and specific performance, for breaches of this Section 18. To the fullest extent permitted by applicable law, such remedies shall not be deemed to be t he exclusive remedies for a breach of 447

Ex. 3, pg. 16

this Section 18 , but will be in addition to all other remedies available at law or in equity. The obligation of confidentiality will survive termination of this Agreement for a period of two (2) years.

d. Goodwill and Publicity. Neither Party may (a) make any press release or the use of solar or renewable energy involving this Agreement (except for filings or other statements or releases as may be required by applicable law), or (b) use any name, trade name, service mark or trademark of the other Party in any promotional or advertising material without the prior written consent of the other Party. The Parties shall coordinate and cooperate with each other when making public announcements regarding this Agreement, the System and its use, and each Party may promptly review, comment upon, and approve any publicity materials, press releases or other public statements before they are made.

Notwithstanding the foregoing provisions, Seller is entitled to place signage on the Premises reflecting its association with the System and to disclose the size and location of the System, the name of Purchaser, and the name of the installation contractor in the ordinary course of its business to third parties who agree to keep such informat ion confidential.

19. General Provisions

a. Definitions and Interpretation. Unless otherwise defined or required by the context in which any term appears: (i) the singular includes the plural and vice versa, (ii) the words “herein,” “hereof” and “hereunder” ref er to this Agreement as a whole and not to any particular section or subsection of this Agreement, (iii) references to any agreement, document or instrument mean such agreement, document or instrument as amended, restated, modified, supplemented or replaced from time to time, and (iv) the words “include,” “includes” and “including” mean include, includes and including “without limitation.” The captions or headings in this Agreement are strictly for convenience and will not be considered in interpreting this Agreement. As used in this Agreement, “dollar” and the “$” sign refer to United States dollars.

b. Choice of Law; Dispute Resolution. The law of the state where the System is located governs all matters arising out of this Agreement without giving effect to conflict of laws principles. Any dispute arising from or relating to this Agreement shall be settled by arbitration in San Bernardino, CA. The arbitration shall be administered by the American Arbitration Association in accordance with its arbitration rul es, and judgment on any award rendered in such arbitration may be entered in any court of competent jurisdiction. If the Parties agree in writing, a mediator may be consulted prior to arbitration. The prevailing Party in any dispute arising out of this Agreement is entitled to reasonable attorneys’ fees and costs. The obligation to arbitrate shall not be binding upon any Party with respect to (i) requests for preliminary injunctions, temporary restraining orders, specific performance, or other procedures in a court of competent jurisdiction to obtain interim relief deemed necessary by such court to preserve the status quo or prevent irreparable injury pending resolution by mediation of the actual dispute; (ii) actions to collect payments not subject to a good faith dispute; or (iii) claims involving third parties who have not agreed to participate in arbitration.

c. Notices. All notices under this Agreement shall be in writing and delivered by hand, electronic mail, overnight courier, or certified or registered mail, return receipt requested, and will be deemed received upon personal delivery, acknowledgment of receipt of electronic transmission, the promised delivery date after deposit with overnight courier, or five (5) days after deposit in the mail. Notices must be sent to the person identified in this Agreement at the addresses set forth in this Agreement or such other address as either Party may specify in writing.

d. Survival. Provisions of this Agreement that should reasonably be considered to survive termination of this Agreement, including provisions related to billing and payment and indemnification, will survive termination of this Agreement.

e. Further Assurances. Each Party shall provide such information, execute and deliver any instruments and documents, and to take such other actions as may be reasonably requested by the other Party to give full effect to this Agreement and to carry out the intent of this Agreement.

f. Waivers. No provision or right or entitlement under this Agreement may be waived or varied except in writing signed by the Party to be bound. No waiver of any of the provisions of this Agreement will constitute a waiver of any other provision, nor will such waiver constitute a continuing waiver unless otherwise expressly provided.

g. Non-Dedication of Facilities . Nothing in this Agreement may be construed as the dedication by either Party of its facilities or equipment to the public or any part thereof. Neither Party may knowingly take any action that would subject the other Party or t he other Party’s facilities or equipment to the jurisdiction of any Governmental Authority as a public utility or similar entity. Neither Party may assert in any proceeding before a Governmental Authority that 448

Ex. 3, pg. 17

the other Party is a public utility by virtue of such other Party’s performance under this Agreement. If Seller is reasonably likely to become subject to regulation as a public utility, then the Parties shall use commercially reasonable efforts to restructure their relationship under this Agreement in a manner that preserves their relative economic interests while ensuring that Seller does not become subject to any such regulation. If the Parties are unable to agree upon such restructuring, Seller may terminate this Agreement without further liability under this Agreement except with respect to liabilities accrued prior to the date of termination and, at Seller’s option, remove the System in accordance with Section 9.

h. Estoppel. Either Party, without charge, at any time and from time to time, within sev en (7) days after receipt of a written request from the other Party, shall deliver a written instrument, duly executed, certifying to such requesting Party, or any other person specified by such requesting Party: (i) that this Agreement is unmodified and i n full force and effect, or if there has been any modification, that the same is in full force and effect as so modified, and identifying any such modification; (ii) whether or not to the knowledge of any such Party there are then existing any offsets or defenses in favor of such Party against enforcement of any of the terms, covenants and conditions of this Agreement and, if so, specifying the same and also whether or not to the knowledge of such Party the other Party has observed and performed all of the terms, covenants and conditions on its part to be observed and performed, and if not, specifying the same; and (iii) such other information as may be reasonably requested by the requesting Party. Any written instrument given hereunder may be relied upon by the recipient of such instrument, except to the extent the recipient has actual knowledge of facts contained in the certificate.

i. Service Contract . The Parties intend this Agreement to be a “service contract” within the meaning of Section 7701(e)(3) of th e Internal Revenue Code of 1986. Purchaser shall not take the position on any tax return or in any other filings suggesting that it is anything other than a purchaser of electricity from the System.

j. No Partnership. No provision of this Agreement may be construed or represented as creating a partnership, trust, joint venture, fiduciary or any similar relationship between the Parties. No Party is authorized to act on behalf of the other Party, and neither may be considered the agent of the other.

k. Entire A greement, Modification, Invalidity, Captions . This Agreement constitutes the entire agreement of the Parties regarding its subject matter and supersedes all prior proposals, agreements, or other communications between the Parties, oral or written. This Agreement may be modified only by a writing signed by both Parties. If any provision of this Agreement is found unenforceable or invalid, such provision shall not be read to render this Agreement unenforceable or invalid as a whole. In such event, such provis ion shall be rectified or interpreted so as to best accomplish its objectives within the limits of applicable law. The captions or headings in this Agreement are strictly for convenience and shall not be considered in interpreting this Agreement. l. Forward Contract. The transaction contemplated under this Agreement constitutes a “forward contract” within the meaning of the United States Bankruptcy Code, and the Parties further acknowledge and agree that each Party is a “forward contract merchant” within the meaning of the United States Bankruptcy Code.

m. No Third-Party Beneficiaries. Except for Financing Parties and successors and permitted assigns, this Agreement and all rights hereunder are intended for the sole benefit of the Parties hereto, and the Financi ng Parties to the extent provided herein or in any other agreement between a Financing Party and Seller or Purchaser, and do not imply or create any rights on the part of, or obligations to, any other person.

n. Counterparts; Electronic Signatures and Record s. This Agreement may be executed in any number of separate counterparts and each counterpart will be considered an original and together comprise the same Agreement. The words “execution,” “signed,” “signature,” and words of like import in this Agreement shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity, or enforceability as a manually executed signature or the use of a paper -based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law.

End of Exhibit 3
449

Exhibit 4

Performance Guarantee

a. Seller guarantees that the System will generate the guaranteed kilowatt-hours (kWh) of energy set forth as follows:
i. If at the end of Contract Years 3, 6, 9, 12, 15, 18, 21 and 24 the aggregate Actual kWh (defined below) generated by the System for the prior three (3) year period is less than the Guaranteed kWh for such period, then Seller will credit the Purchaser’s next invoice by the amount of the any kWh production shortfall for such three (3) year period . The method of determinin g the value of any kWh production shortfall shall be as follows (“Shortfall Amount”): Shortfall Amount equals the difference between the Guaranteed kWh and the Actual kWh produced multiplied by the difference between the actual amount Purchaser paid for power by the Contract Price. I.E.:

Shortfall Amount ($) = (Guaranteed kWh – Actual kWh) x (actual amount Purchaser paid per kWh – Contract Price per kWh)

ii. If at the end of each applicable three (3) year period the Actual kWh is greater than the Guaranteed kWh for such period, this surplus will be carried over and will be used to offset any deficits that may occur in the subsequent three year period.

iii. Guaranteed kWh:

Production Guarantee
Contract Years Expected kWh Guaranteed kWh
1 to 3 4,465,532 4,242,255
4 to 6 4,398,883 4,178,939
7 to 9 4,333,229 4,116,568
10 to 12 4,268,555 3,841,700
13 to 15 4,204,847 3,784,362
16 to 18 4,142,089 3,727,880
19 to 21 4,080,267 3,672,241
22 to 24 4,019,369 3,617,432

The Guaranteed kWh values are subject to downward adjustment for weather and fire -related smoke conditions to determine the Guaranteed kWh. Seller will use local weather data to determine the Guaranteed kWh based on available data from a locally installed weather station at the Premises owned and properly maintained by Seller.
“Actual kWh” means the AC electricity produced by the System and delivered to Purchaser at the Delivery Point in kilowatt -hours measured and recorded by Seller during e ach Contract Year. To measure the Actual kWh, Seller will use a monitoring service or to the extent such services are not available, Seller will estimate the Actual kWh by reasonable means. Purchaser will have 24/7 login access to the monitoring service to independently verify Actual kWh generated.

iv. The guaranty set forth in this Exhibit does not apply to the extent of any reduction in the Actual kWh due to the following (including the downtime required for repair, replacement or correction): (i) a Force Majeure Event, (ii) destruction or damage to the System or its ability to safely produce electricity not caused by Seller or its approved service providers while servicing the System (e.g., vandalism); (iii) a power or voltage surge caused by som eone other than Seller, including a grid supply voltage outside of the standard range specified by the utility; (iv) theft or vandalism of the System; (v) curtailment or 450

reduction of energy production required by the utility or grid operator; (vi) Outages or other shut downs of the System at the request of Purchaser (including due to maintenance of the Facility or Premises or relocation of the System); (vii) Purchaser’s failure to perform, or breach of, Purchaser’s obligations hereunder; and (viii) excessive soiling of the panels above and beyond the estimated annual soiling loss in the HelioScope model.
451

MEMORANDUM

CITY OF CHINO

HUMAN RESOURCES DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: TERRY DOYLE, DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT

SUBJECT
..titl e
California Intergovernmental Risk Authority (CIRA) Membership and Participation in the General Liability and Workers’ Compensation Programs.
..end

RECOMMENDATION
..recommendation
Adopt Resolution No. 2025 -027 approving the City of Chino's membership into CIRA and participation in the General Liability and Workers' Compensation Programs. ..body

FISCAL IMPACT
Based on the City’s loss experience, CIRA provided premium estimates of $1,569,784 for general liability with a $1,000,000 deductible and $362,351 for workers' compensation coverage with a $500,000 deductible. If the City Council approves membership into CIRA, these premiums will be included in the FY2025-26 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:
 Positive City Image
 Superior Customer Service
 Financial Stability
 Responsible Long-Range Planning
 Public Service Excellence through Internal and External Partnerships

Revenue:

Expenditure:

Transfer In: Transfer Out:
452
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY (CIRA) MEMBERSHIP AND PARTICIPATION IN THE GENERAL LIABILITY AND WORKERS’ COMPENSATION PROGRAMS.

PAGE: 2

BACKGROUND
The City of Chino currently has a self -insured program for workers’ compensation and general liability coverage and purchases excess insurance coverage through Safety National. Under the workers’ compensation program, the City has a deductible of $750,000 per claim for non-safety personnel and $1,000,000 per claim for safety personnel, with coverage provided up to the statutory limits required by law.

Under the general liability program, the City has a deductible of $5,000,000 per claim. Excess coverage inc ludes both occurrence and aggregate limits of $25,000,000. If the City were to continue the same coverages for FY2025 -26, the premiums are estimated to be $1,286,646 for general liability and $356,089 for workers’ compensation.

ISSUES/ANALYSIS
A $5,000,000 deductible for general liability is considered high for the City of Chino’s size. In addition, neighboring cities have deductibles of $1,000,000 or less. As a result, in November 2024, staff began to explore alternative coverage options, inclu ding requesting a lower deductible from Safety National. However, Safety National is unable to provide the City with a deductible option that is lower than $5,000,000.

One of the other options staff explored was joining a risk pool, also called a joint pow ers insurance authority. Based on staff’s prior experience with risk pools and the membership of neighboring cities including Rancho Cucamonga, Upland, Highland, Yucaipa, and Menifee, the California Intergovernmental Risk Authority (CIRA) was asked to prov ide estimates for both general liability and workers’ compensation coverage. Based on the City’s loss experience, CIRA provided premium estimates of $1,569,784 for general liability with a $1,000,000 deductible and $362,351 for workers' compensation with a $500,000 deductible.

At the City Council Study Session held on May 13, 2025, CIRA presented an overview of joint powers insurance authorities and analysis of the City’s total cost of risk when evaluating insurance coverage options. At this Study Session, the City Council directed staff to obtain estimates from other risk pools for consideration. Attached is a comparison of insurance pool options for both general liability and workers’ compensation coverage.

Out of the other risk pool options, Public Risk Innovation, Solutions, and Management (PRISM) and the California Joint Powers Risk Management Authority (CJPRMA) are the most competitive options from just a cost perspective. However, unlike CIRA, neither pool provides comprehensive risk control services. If the City were to join CIRA, it would receive not only workers’ compensation and general liability coverage that is lower than its current deductibles, but City staff would also be given access to numerous safety training programs, safety policies, contract review services, and on -site risk assessments. These are all risk control services that CIRA would provide to the City at little to no cost.

If the City Council approves membership into CIRA, the premiums for the general liability and workers’ compensation programs will be included in the FY2025 -26 Budget and the City would be allowed to join in FY2025/26.
453
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY (CIRA) MEMBERSHIP AND PARTICIPATION IN THE GENERAL LIABILITY AND WORKERS’ COMPENSATION PROGRAMS.

PAGE: 3

Resolution No. 2025-027 authorizes the City Manager to sign the joint powers agreement to join CIRA and appoint staff to serve as a Director and Al ternative on the CIRA Board of Directors.

Upon approval, the City will receive workers’ compensation and general liability coverage from CIRA effective July 1, 2025.

Attachments: 1 – General Liability and Workers’ Compensation Comparison 2 – Resolution No. 2025-027
3 – CIRA Joint Powers Authority Agreement

454
General Liability Coverage Comparison
Provider Deductible and Premium Rate Estimates Financials Governance Coverage Limits Services Safety National
(City's current
provider)
$5 million deductible at $1,286,646 Guaranteed cost Not applicable $25 million per occurrence and aggregate
Limited risk control services and
outsourced
CIRA - California
Intergovernmental
Risk Authority
$1 million deductible at $1,569,784 Good financials and no assessments Voting member on board
5 year membership
commitment
$40 millon per occurrence and no
aggregate In-house full risk control services
PRISM - Public Risk
Innovation Services
Management
$1 million deductible at $1,448,247Good financials and no assessmentsLimited representation $40 million per occurrence and no aggregate In-house limited risk control services
CJPRMA - California
Joint Powers Risk
Management Authority
$750,000 deductible at $1,562,706
$1 million deductible at $1,451,913
$1.25 million deductible at $1,374,737
$1.5 million deductible at $1,308,450
Adequate financials and recently
assessed members
Voting member on board
3 year membership
commitment
$40 million per occurrence and no
aggregate No risk control services
CARMA - California
Affiliated Risk
Management Authority
$1M deductible at $1,801,905 Good financials and no assessments Voting member on board $34.5 million per occurrence and no
aggregate
Does not cover employment
practices liability
No risk control services
PERMA - Public Entity
Risk Management
Authority
No estimate as they only provide up to a
$500,000 deductible
Adequate financials and recently
assessed members Voting member on board$50 million per occurrence and no aggregate
Limited risk control services and
outsourced
CJPIA - California
Joint Powers
Insurance Authority
CJPIA not interested in providing an
estimate Good financials and no assessments Limited representation$50 million per occurrence and no aggregate In-house full risk control services
455
Workers' Compensation Coverage Comparison
Provider Deductible and Premium Rate Estimates Financials Governance Coverage Limits Services Safety National
(City's current
provider)
$750,000 deductible for non-safety and $1 million
deductible for safety at $356,089 Guaranteed cost Not applicable Statutory LimitsLimited risk control services and outsourced
CIRA - California
Intergovernmental
Risk Authority
$500,000 deductible at $362,351 Good financials and no
assessments Voting member on boardStatutory LimitsIn-house full risk control services PRISM - Public Risk
Innovation Services
Management
Available deductibles:
$250,000, $350,000, $500,000, $750,000, $1 million
PRISM unable to provide estimates without a
completed application
Good financials and no
assessments Limited representation Statutory LimitsIn-house limited risk control services
LAWCX - Local
Agency Workers'
Compensation
Excess
Available deductibles:
$250,000, $350,000, $500,000, $750,000, $1million
LAWCX did not respond to request to provide
estimates
Adequate financials and recently
assessed members Voting member on boardStatutory LimitsLimited risk control services and outsourced
456

RESOLUTION NO. 2025-027

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO, CALIFORNIA,

APPROVING MEMBERSHIP IN THE CALIFORNIA INTERGOVERNMENTAL

RISK AUTHORITY (CIRA) AND PARTICIPATION IN THE LIABILITY AND WORKERS’ COMPENSATION PROGRAMS

WHEREAS, pursuant to the provisions of the Government Code commencing with Section 6500 , the City of Chino (“City”) wishes to enter into an agreement with the California Intergovernmental Risk Authority (“CIRA”) for the purposes of pooling the Liability and Workers’ Compe nsation coverages as more fully set forth in the Joint Powers Agreement; and WHEREAS, said Liability and Workers’ Compensation Programs offer significant advantages to the City justifying the City’s participation in such programs on the conditions set for th, and is in the best interest of the City; and
WHEREAS, the Deposit Premium is based on a payroll estimate of $66,718,061.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chino; Section 1. That th e City hereby authorizes the City Mana ger to execute the Joint Powers Agreement on its behalf with the effective date of July 1, 2025;

Section 2. Liability Program. That the City hereby consents to participate in said Liability Program on the conditions that:

(a) The City hereby selects its self -insured retention (SIR) of $ 1,000,000 which represents the City’s responsibility per occurrence.

(b) This City ’s Premium for liability coverage as provided by CIRA is estimated to be $1,569,784;

Section 3. Workers’ Compensation Progra m. That the City hereby consents to participate in said Workers’ Compensation Program on the conditions that:

(a) The City hereby selects its self -insured retention (SIR) of $500,000 which represents the City’s responsibility per occurrence.

(b) This City’s Deposit Premium for coverag e as provided by CIRA is estimated to be $362,351;

Section 4. Board Representative Designatio n. The City hereby designates the Director of Human Resources/Risk Management as its representative on the CIRA Board of Directors, to act on all matters coming b efore said Board on behalf of the City as a Member Entity, as if the City itself were present. The City designates the Deputy Director of Human Resources/Risk Management as the alternate representative.

Section 5. The City is hereby authorized to pay to CIRA the amounts identified in Section 2 and Section 3 above for Liability and Workers’ Compensation coverage.

457
RESOLUTION NO. 2025-027
PAGE 2

Section 6. The City Clerk of the City is directed to certify a copy of this Resolution and to forward the Resolution and signed Joint Powers Agr eement to CIRA, 2330 E. Bidwell Street, Suite 150, Folsom, California 95630.

APPROVED AND ADOPTED THIS 3rd day of June, 2025.

EUNICE M. ULLOA, MAYOR

ATTEST:

NATALIE GONZAGA

CITY CLERK
458
RESOLUTION NO. 2025-027
PAGE 2

State of California )
County of San Bernardino ) §
City of Chino )

I, NATALIE GONZAGA, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution No. 2025-027 was duly adopted by the City Council at a regular meeting held on the 3rd day of June 2025 by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK

459
1 65365.00002\33005619.4

AMENDED AND RESTATED

JOINT EXERCISE OF POWERS AGREEMENT
OF THE

CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY
(formerly Public Agency Risk Sharing Authority of California)

This Amended and Restated Joint Exercise of Powers Agreement of the California Intergovernmental Risk Authority ( “CIRA” or “Authority”) (“Agreement”), formerly known as the Public Agency Risk Sharing Authority of California (“PARSAC”), is entered into by and among the public entities, hereafter referred to as “Members”, each of which is organized and existing under the laws of the State of California and is a signatory to this Agreement and listed in Appendix “A”, attached hereto and made a part hereof. This Agreement supersedes the Public Agency Risk Sharing Authority of California [PARSAC] Joint Powers Agreement dated May 25, 2017 as of, and is effective on, July 1, 2021 (“Effective Date”).

RECITALS

1. The Authority was originally created as the California Municipal Insurance Authority effective May 21, 1986 pursuant to that certain Joint Powers Agreement Creating the California Municipal Insurance Authority (“Original JPA Agreement”). The Original JPA Agreement was revised and restated effective July 1, 1989 and then again effective November 19, 1993 when the original name was changed to the Public Agency Risk Sharing Authority of California. Subsequent restatements were approved effective May 31, 1996, December 13, 2002, December 12, 2003, May 20, 2005, May 31, 2007, and May 26, 2011. The most recent restatement is the PARSAC Joint Powers Agreement which was approved effective May 25, 2017 (“PARSAC Agreement”).

2. Labor Code Section 3700 authorizes public entities, including members of a pooling arrangement under a joint powers authority, to fund their own workers’ compensation claims.

3. Government Code Sections 989 and 990 authorize a local public entity to insure itself and its employees against tort or inverse condemnation liability.

4. Government Code Section 990.4 authorize a local public entity to fund insurance and self-insurance in any desired combination.

5. Government Code Section 990.6 provides that the cost of insurance is an appropriate public expenditure.

6. Government Code Section 990.8 authorizes two or more local public entities to enter into an agreement to jointly fund such expenditures under the authority of the Joint Exercise of Powers Act (Gov. Code Section 6500 et seq.).

7. Government Code Section 6500 et seq. authorizes two or more public entities to jointly exercise, under an agreement, any power which is common to each of them.

8. Each Member that is a party to this Agreement desires to join with the other Member s to fund programs of insurance for workers ’ compensation, liability, property and other coverages to be determined and for other purposes set forth in this Agreement. 460
2 65365.00002\33005619.4

9. The governing body of each Member has determined that it is i n the Member’s own best interest, and in the public interest , to execute this Agreement and participate as a Member of the Authority.

In consideration of the recitals, mutual benefits, covenants, and agreements set forth in this Agreement, the Members agree as follows:

ARTICLE I.

CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY

AS SUCCESSOR TO AND EXPANSION OF PARSAC

A. Authority Created . The Authority was originally formed on May 21, 1986 as the California Municipal Insurance Authority by operation of the Original JPA Agreement and subsequently renamed as the Public Agency Risk Sharing Authority of California effective November 19, 1993 .

The Authority was, and is, formed pursuant to the provisions of Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (“Code”), which authorizes two or more public agencies, by a joint powers agreement entered into respectively by them and authorized by their legislative or governing bodies, to exercise jointly any power or powers common to the member agencies.

1. Name Change . As of the Effective Date, the Public Agency Risk Sharing Authority of California shall be known as the California Intergovernmental Risk Authority, hereinafter referred to as “CIRA” or the “Authority.”

2. Separate Entity . Pursu ant to Code Sections 6506 and 6507, from its inception, the Authority has, is , and shall be a public entity separate and independent from the Members which is governed exclusively by the Authority’s Board of Directors (“Board”).

B. Membership in the Authority as of the Effective Date. As of the Effective Date, the membership of the Authority shall consist of the members of PARSAC and the members of the Redwood Empire Municipal Insurance Fund (“REMIF”), with respect to only those that have approved this Agreement as of the Effective Date, as listed in Appendix “A”.

C. Future Membership. Membership in the Authority is open to public entities throughout the State of California, if such public entities mee t the requirements specified in the Bylaws an d are approved by the Board.

ARTICLE II.

PURPOSE

The purpose of th e Authority is to exercise the powers of the Members to jointly accomplish the following:

A. Develop comprehensive Programs with the objective to reduce the cost of risk against which the Members are authorized or required to protect against by insurance, self- insurance, or pooling.

Such Programs may include, but are not limited to, coverages for tort liability, workers’ 461
3 65365.00002\33005619.4
compensation, employee health benefits, loss to real or personal property, or liability arising out of the ownership, maintenance, or use of real or personal property.

B. The design of the Programs may evolve with the needs of the Members and in accordance with contemporary economic and financial conditions. Programs may therefore operate on an insured, pooled, self-funded, or other appropriate basis whereby the Members share some portion, or all, of the costs of Program losses.

B. Jointly secure administrative and other services including, but not limited to, general administration, underwriting, risk management, loss prevention, claims adjusting, data processing, brokerage, accounting, legal and other services related to any authorized purpose.

ARTICLE III.

PARTIES TO THE AGREEMENT AND RESPONSIBILITIES OF MEMBERS

A. Each Member represents and warrants that it intends to, and does hereby, contract with all other Members listed in Appendix “ A”, and any new members admitted to the Authority. Each Member also represents and warrants that the withdrawal or expulsion of any Member shall not relieve any Member of its rights, obligations, liabilities or duties under this Agreement or the individual Programs in which the Member participates.

B. Each Member agrees to be bound by and to comply with all the terms and conditions of the Governing Documents and any Resolution or other action adopted by the Board as they now exist or may hereinafter be adopted or amended. Each Member assumes the obligat ions and responsibilities set forth in the Governing Documents, as they may be amended.

C. Each new Member agrees to participate for a minimum of five years, except that members of PARSAC and REMIF as of June 30, 2021 must continue for a minimum of two ye ars thereafter.

Also, each new Member agrees to meet its obligations and responsibilities as set forth in the Governing Documents.

ARTICLE IV.

POWERS

The Authority shall have the powers common to its Members. As provided by Government Code Section 6509, the Authority ’s power is subject to the restrictions upon the manner of exercising the power of the Member specified in the Bylaws . Under this Agreement, the Authority is authorized, in its own name, to do all acts necessary and to exercise such common p owers to fulfill the purposes of this Agreement, including but not limited to the following:

A. Make and enter contracts;
B. Employ agents and employees;
C. Incur debts, liabilities or obligations;
D. Receive, collect, invest, and disburse funds;
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4 65365.00002\33005619.4
E. Receive contributions and donations of property, funds, services and other forms of assistance; F. Acquire, construct, manage, maintain, hold, lease or dispose of real and personal property; and G. Sue and be sued in its own name and settle any claim against it.

ARTICLE V.

BOARD OF DIRECTORS

A. The Authority shall be governed by the Board . Each Member shall appoint a representative to the Board and an alternate representative, each of whom shall meet the parameters set forth in the Bylaws. In the absence of a resolution of the Board providing otherwise, representatives and alternates will serve without compensation by the Authority.

B. The Member’s representative and/or alternate representative shall be removed from the Board upon the occurrence of any one of the following events: (1) the expulsion or withdrawal of the Member from the Authority; (2) the death or resignation of the Member representative; (3) the Member gives notice that the Member representative is no longer employed by the Member; or (4) as otherwise provided in the Authority’s Bylaws.

C. The Board shall exercise all powers and conduct all business of the Authority, either directly or by delegation of authority to committees or other bodies or individuals.

ARTICLE VI.

ADMINISTRATION OF PREEXISTING OBLIGATIONS

A. All liabilities and obligations of the Authority existing prior to the Effective Date (“Preexisting Obligations”) will be administered under the terms and conditions of the PARSAC Agreeme nt.

For this purpose, the PARSAC Agreement in effect on June 30, 2021, which is attached hereto as Appendix B, is hereby made a part of this Agreement and incorporated herein by this reference.

B. The Board shall appoint a committee made up of representatives of Authority members that were members prior to the Effective Date to make recommendations to the Board regarding the administration of the Preexisting Obligations. As to specific agenda items relating to such matters, only Directors representing Members who were members of the Authority prior to the Effective Date may vote, and as to such items, a quorum shall be determined solely by reference to the number of Members that were members of the Authority prior to the Effective Date.

C. All assets of the Authority existing on June 30, 2021 shall be reserved by the Authority for the sole purpose of administering the Preexisting Obligations. Sim ilarly, all assets of REMIF shall be used exclusively for the purpose of administrating the obligations of REMIF.

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ARTICLE VII.

OFFICERS

A. The Board shall elect a President, Vice -President, Treasurer, and Auditor/Controller. The President, Vice-President, and Auditor/Controller must be Directors. The General Manager shall serve as Secretary of the Board. The manner of election and term of office of elected officers and their authority and responsibilities shall be as set forth in the Authority ’s Bylaws. If any of the elected officers ceases to be a Member’s representative, the resulting vacancy shall be filled as provided in the Authority’s Bylaws. The Board may elect such other officers as it considers necessary.

B. As permitted by Government Code Section 6505.6, the Treasurer shall comply with the duties and responsibilities set for the subdivisions (a) through (d) of Government Code Section 6505.5, and shall cause an independent audit to be made by a certified public ac countant, or public accountant, in compliance with Government Code Section 6505. The Treasurer will have no vote on the Board unless the Treasurer is also a Director.

C. The Board shall appoint a General Manager who shall act as Sec retary of the Board and as the Chief Administrative Officer of the Authority. Although an officer, the General Manager shall not have a vote on the Board or any committee of the Authority.

ARTICLE VIII.

MEETINGS AND RECORDS

A. Not less than once a year, the Board and all standing committees shall hold regular meetings as set forth in the Bylaws of the Authority. Special meetings may be called as provided in the Bylaws.

B. All meetings of the Board , and appointed committees, including without limitation, regu lar, adjourned regular, and special meetings, shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act (Section 54950 et. seq. of the Government Code).

C. Minutes of regular, adjourned regular, and special meetings of the Authority shall be kept under the direction of the Secretary. After each meeting, the Secretary shall cause copies of the minutes to be forwarded to each Board member for review and approval at the next regular meeting.

ARTICLE IX.

BUDGET

The Board shall adopt an annual budget prior to the beginning of each Fiscal Year.

ARTICLE X.

REGULAR AUDITS AND REVIEWS

A. The Board shall cause an annual financial audit of the accounts and records to be prepared by a Certified Public Accountant in compliance with California Government Code Sections 6505 and 464
6 65365.00002\33005619.4
6505.5 or 6505.6 with respect to all receipts, disbursements, other transactions and entries into the books of the Authority. The minimum requirements of the audit shall be those prescribed by the Sta te Controller for special districts under Government Code Section 26909 and shall conform to generally accepted accounting standards. A report of each such audit shall be filed as a public record with the Board, each of the Member s, and the auditor/control ler of the county in which the Authority’s administrative office is located. The report shall be filed within twelve months of the end of the fiscal year under examination. The Authority shall pay all costs for such financial audits.

B. The Board shall cause an annual actuarial review to be prepared for each of the Programs of the Authority and a report of such actuarial review shall be made available for inspection by the Board and the Members. The Authority shall pay all costs for such actuarial review.

C. The Board shall cause a claims audit of the administration of the claims for each of the Programs of the Authority at least biannually. A report of such claims review shall be made available for inspection by the Board and the Members. The Authority s hall pay all costs for such claims reviews.

ARTICLE XI.

ADMISSION OF NEW MEMBERS

A. Any public entity eligible for membership as stated in Article I may apply for membership in the Authority and participation in one or more of the Authority’s Programs at any time. To be considered, the applicant must submit any documentation or informatio n requested by the Authority and pay any costs required to analyze t heir application and determine their initial contribution.

B. The Authority shall review all applications by potential new members to determine if they meet the requirements provided for in the Bylaws and any r elevant Board policies to determine whether and on what conditions to admit the applicant.

C. Upon approval for membership by two -thirds vote of the Board , t o become a Member t he applicant must execute this A greement and pay any contributions or premiums required to participate in the Program(s) for the initial Program Year in which the applicant will participate.

ARTICLE XII.

WITHDRAWAL

A. After the initial commitment period described in Article III, any Member which enters a Program may withdraw from that Program by compliance with the requirements stated in the Bylaws for withdrawal from the Program.

B. Withdrawal of a Member does not terminate its rights to coverage arising under any Program in which it participated for the years in which it participated. A Member that has withdrawn from a Program may later seek to renew participation in the Program subj ect to any terms and conditions set forth in the Bylaws.

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C. A Member that has withdrawn from all of the Authority’s Programs shall no longer have a right to a representative on the Board, but shall remain liable for assessments and other obligations arising from the Program Years in which it participated.

D. As soon as administratively feasible after the Effective Date, the Members of the Authority shall agree on the method of apportioning the CalPERS retirement obligations of the Authority in the event of a default event as defined by Government Code Section 6508.2. Until such time, and in the event of a default event, the terms of the Public Agency Risk Sharing Authority of California (PARSAC) Agreement for Apportion of Retirement Obligations dated May 25, 2017, and attached hereto as Exhibit “C”, shall apply with respect to all Members of the Authority.

ARTICLE XIII.

EXPULSION

The Board may expel any Member fro m the Authority and/or from a Program for material breaches of the Governing Documents consistent with the provisions of the Bylaws, subject to any warning or probationary provisions in the Governing Documents . Expulsion does not terminate the obligations of either the Authority or the Member incurred prior to the expulsion.

ARTICLE XIV.

TERMINATION AND DISTRIBUTION

A. This Agreement shall continue in full force and effect until terminated. Termination of this Agreement shall also constitute the termination of all Programs. This Agreement may be terminated at any time by the vote of three- fourths of the Members; provided, however, that this Agreement and CIRA shall continue to exist for the purpose of disposing of all claims and paying its obligations for employees’ health an d pension benefits, before the distribution of assets, and any other functions necessary to wind up the affairs of CIRA.

B. Upon termination of this Agreement, all assets of each Program of CIRA shall be distributed among the Members which participated i n such Programs, in accordance with the retrospective premium adjustment process in effect during the term of this Agreement. Such distributions shall be determined within six [6] months after the disposal of the last pending claim or other liability covered by all Programs of the Authority. The Board may in its sole discretion determine that earlier distributions are appropriate as to Programs for which there remains no claim or liability.

C. Following the termination of this Agreement, any Member which w as a participant in any Program of CIRA shall pay any additional amount of premium, determined by the Board or its designee in accordance with a retrospective premium adjustment, which may be necessary to enable final disposition of all claims arising from losses under that Program during the Member’s period of participation.

D. The Board is vested with all powers of CIRA for the purpose of concluding and dissolving the business affairs of CIRA. The Board may designate legal counsel and any committee or person to carry out a plan of dissolution adopted by the Board.
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ARTICLE XV.

LIABILITY OF MEMBERS, DIRECTORS, OFFICERS, AND COMMITTEE MEMBERS

A. Pursuant to Government Code section 6508.1, except as to liabilities to a public retirement system, the debts, liabilities, and obligations of the Authority shall not constitute debts, liabilities, or obligations of any Member. However, each Member shall remain liable to the Authority for contributions assessed by the Authority to pay its debts, liabilities, or obligations.

B. The debts, liabilities or o bligations incurred by either PARSAC or REMIF prior to the E ffective Date shall not constitute the debts, liabilities or obligations of the other. Notwithstanding the preceding, the Authority intends to be the successor to the CalPERS pension obligations of REMIF pursuant to California Government Code Section 20508. As such, the liability to CalPERS with respect to service credited under REMIF’s C alPERS contract, and the continuing liability to CalPERS of the Authority with respect to service credit accrued both prior to and after the Effective Date under the Authority’s CalPERS contract , shall be the contractual liability of the Authority. The Authority and REMIF shall separately enter into an agreement to provide for the allocation of liability, and the payment of related contributions, with respect to service credit accrued prior to the Effective Date.

C. The r epresentatives to the Board of Directors and to each of the Programs and any officer, employee, contractor, or agent of the Authority shall use ordinary care and reasonable diligence in the exercise of their power and in the performance of their duties under this Agreement.

Directors, officers, committee members of the Authority shall be liable for any act or omission within the scope of their office or employment by the Authority only in the event that they act or fail to act because of actual fraud, corruption, or actual malice or willfully fail or refuse to conduct the defense of a claim or action in good faith or to reasonably cooperate in good faith in the defense conducted by the Authority.

D. The Authority shall def end and indemnify its directors, officers, and employees to the same extent as any other public entity of the State of California is obliged to defend and indemnify its employees pursuant to Government Code Section 825, et seq., or other applicable provisi ons of law. Nothing herein shall limit the right of the Authority to purchase insurance to satisfy this obligation.

E. The Authority shall indemnify, protect, defend, and hold harmless each and all of the Member s, and their officials, agents, and employees, for and from any and all liability, claims, causes of action, damages, losses, judgments, costs, or expenses (including attorney fees) resulting from an injury caused by a negligent or wrongful act or omission occurring in the performance of this Agreement by the Authority, by one or more of the Member s, or any of their officials , employees, agents, or independent contractors.

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ARTICLE XVI.

NOTICES

Notices to each Member under this Agreement shall be sufficient if mailed to its respective address on file with the Authority. Any Member may designate any other address in substitution of the foregoing address to which such notice will be given at any time by giving five days written notice to the Authority and all other Members.

ARTICLE XVII.

AMENDMENTS

This Agreement may be amended at any time with the approval of two-thirds of the Directors on the Board acting with the approval of their governing bodies , except that any amendment that reduces the voting requirement for termination of the Authority must be approved by three-fourths of the Directors on the Board acting with the approval of their governing bodies . Authority of the Member representative (dir ector) to give such approval may be delegated such in advance by the Member’s governing body, or in the absence of such prior delegation by action of a Member’s governing body to approve the proposed amendment. The amended Agreement shall take effect on th e first day of the month following the Authority’s receipt of notice of approval by two -thirds of the Members, unless otherwise stated in the Amendment, and once effective shall apply to all Members regardless of whether a particular Member approved the amendment . Refusal to execute or comply with the amended Agreement shall be a basis for expulsion of the Member. A Member that does not approve of the amendment may withdraw from the Authority and all its Programs at the end of the fiscal year next following the effective date of the amendment, notwithstanding the five- year minimum commitment provided for in Article III, Section C.

ARTICLE XVIII.

SEVERABILITY

Should any portion, term, condition, or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions, and provisions shall not be affected thereby.

ARTICLE XIX.

COMPLETE AGREEMENT

The foregoing constitutes the full and complete Agreement of the parties. There are no oral understandings or agreements not set forth in writing herein, except as to the Bylaws.

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ARTICLE XX.

TERM OF AGREEMENT

This Agreement shall become effective upon execution, and shall continue in effect until satisfaction of all obligations created hereunder following termination of the Authority created by this Agreement.

ARTICLE XXI.

COUNTERPARTS

The Agreement may be executed in multiple counterparts, each of which shall be considered an original.

ARTICLE XXII.

ARBITRATION

Any controversy arising out of this Agreement shall be submitted to binding arbitration, which shall be conducted in accordanc e with the provisions of the California Arbitration Act (California Code of Civil Procedure § 1280 et seq.).

ARTICLE XXIII.

FORCE MAJEURE

No party will be deemed to be in default where failure or delay in performance of any of its obligations (other than payment obligations) under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, actions of legislative, judicial, executive, or regulatory government bodies or other cause, without fault and beyond the reasonable control of such party (“Force Majeure”). If any such events shall occur, the time for performance by such party of any of its obligations under this Agreement will be extended by the parties for the period of time that such event s prevented such performance. Upon the occurrence of an event of Force Majeure, the affected party shall: (i) promptly notify the other parties of such Force Majeure event, (ii) provide reasonable details relating to such Force Majeure event and (iii) implement mitigation measures to the extent reasonable.

ARTICLE XXIV.

DEFINITIONS

The following definitions shall apply to the provisions of this Agreement and the Bylaws of the Authority:

A. “Agreement” shall mean this Agreement, as it may be amended from time to time, creating the California Intergovernmental Risk Authority.

B. “Board” or “Board of Directors” shall mean the governing body of the Authority.

C. “Bylaws” shall mean the Bylaws attached to this Agreement, as amended from time to time by the Board consistent with the amendment provisions in the Bylaws.

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D. “Claim(s)” shall mean demand(s) made against the Member arising out of occurrences which are covered or alleged to be covered by the Authority’s Memorandums of Coverage or policies of insurance.

E. “Fiscal Year” shall mean the period of time commencing on July 1 of each year and ending on June 30 of the following year.

F. “Governing Documents” shall mean this Agreement, the By laws of the Authority, each Program’s Memorandum of Coverage , the Master Program Document, , and any other document stipulated as a Governing Document in the Bylaws or by action of the Board.

G. “Insurance” shall mean insurance or reinsurance purchased by the Authority to cover Claims against or losses of the Authority and/or its Members.

H. “Jurisdiction” shall mean the territory in which the Authority may exercise its powers; i.e., the State of California.

I. “Member” shall mean any public entity authorized to be a member of a Joint Powers Authority, which is a party to this Agreement and is participating in one or more Programs.

J. “Memorandum of Coverage” shall mean a document issued by the Authority for each Program specifying the coverages and limits provided to the Members participating in the Program.

K. “Participation” or “participating” shall refer to a Member that has elected to join and take part in a Program.

L. “Pooling” shall mean group self-insurance as allowed by Government Code section 990.8 , Labor Code section 3700, or any other applicable law.

M. “Program” shall mean those coverage programs of risk sharing, insurance, self- insurance, pooling and risk management services created by the Authority to manage specific types of risks.

N. “Program Year” shall mean the annual period in each Program to be segregat ed for determination of coverage premiums or assessments.

O. “Risk Management” shall mean the process of identifying, evaluating, reducing, transferring, and eliminating risks. Risk Management includes, but is not limited to, various methods of funding claims payments, purchasing insurance, legal defense of claims, controlling losses, and determining self-insured retention levels and the amount of reserves for potential claims.

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IN
WITNESS WHEREOF, the undersigned party hereto has executed this Agreement on the date indicated below.

Califo
rnia Intergovernmental Risk Authority ["CIRA"]
Dat
e: _____________________ By: _________________________________________ Name/Title
Attes
t: __________________________________________
Secretary, CIRA
Me
mber Entity: __________________________
Dat
e: _____________________ By: __________________________________________ Name/Title
Attes
t: __________________________________________
City/Town Clerk
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APPENDIX “A”

CALIFORNIA INTERGOVERNMENTAL RISK AUTHORITY MEMBERS

1. City of Arcata

2. City of Amador City

3. City of Avalon

4. City of Belvedere

5. City of Blue Lake

6. City of California City

7. City of Calimesa

8. City of Calistoga

9. City of Citrus Heights

10. City of Clearlake

11. City of Cloverdale

12. City of Coalinga

13. City of Cotati

14. City of Eureka

15. City of Ferndale

16. City of Fort Bragg

17. City of Fortuna

18. City of Grass Valley

19. City of Healdsburg

20. City of Highland

21. City of Lakeport

22. City of Menifee

23. City of Nevada City

24. City of Placentia

25. City of Placerville

26. City of Plymouth

27. City of Point Arena

28. City of Rancho Cucamonga

29. Rancho Cucamonga Fire Protection
District

30. City of Rancho Santa Margarita

31. City of Rohnert Park

32. City of San Juan Bautista

33. City of Sebastopol

34. City of Sierra Madre

35. City of Sonoma

36. City of South Lake Tahoe

37. City of St. Helena

38. City of Tehama

39. City of Trinidad

40. Town of Truckee

41. City of Twentynine Palms

42. City of Ukiah

43. City of Watsonville

44. City of Wheatland

45. City of Wildomar

46. City of Willits

47. Town of Windsor

48. Town of Yountville

49. City of Yucaipa

50. Town of Yucca Valley

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APPENDIX “B”

PARSAC Agreement

PARSAC

JOINT POWERS AGREEMENT

Revised & Adopted May 25, 2017

Public Agency Risk Sharing
Authority of California

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TABLE OF CONTENTS

Page

ARTICLE I DEFINITIONS ................................................................................................3

ARTICLE II PARTIES TO THE AGREEMENT ................................................................6

ARTICLE III PURPOSES .....................................................................................................6

ARTICLE IV CREATION OF THE PUBLIC AGENCY RISK
SHARING AUTHORITY OF CALIFORNIA ...............................................7

ARTICLE V TERM OF AGREEMENT ..............................................................................7

ARTICLE VI POWERS OF PARSAC ..................................................................................7

ARTICLE VII RESPONSIBILITIES OF MEMBER ENTITIES ..........................................8

ARTICLE VIII BOARD OF DIRECTORS ...........................................................................10

ARTICLE IX OFFICERS ....................................................................................................13

ARTICLE X EXECUTIVE COMMITTEE .......................................................................13

ARTICLE XI ADMINISTRATION ....................................................................................13

ARTICLE XII BUDGET ......................................................................................................14

ARTICLE XIII ANNUAL AUDITS AND REVIEWS..........................................................14

ARTICLE XIV ESTABLISHMENT AND ADMINISTRATION
OF FUNDS ...................................................................................................15

ARTICLE XV SUPPORT OF PARSAC'S GENERAL EXPENSES ...................................16

ARTICLE XVI DEPOSIT PREMIUMS ................................................................................17

ARTICLE XVII PARSAC MEMBERSHIP ............................................................................18

ARTICLE XVIII MEMORANDA OF COVERAGE ..............................................................18

ARTICLE XIX SIR MANDATORY RESERVES/PAYMENT ............................................19 474
Adopted May 25, 2017 iii

ARTICLE XX RETROSPECTIVE PREMIUM ADJUSTMENTS AND
ASSESSMENTS ...........................................................................................20

ARTICLE XXI NEW MEMBERS .........................................................................................21

ARTICLE XXII WITHDRAWAL ...........................................................................................22

ARTICLE XXIII EXPULSION ................................................................................................25

ARTICLE XXIV EFFECT OF WITHDRAWAL OR EXPULSION ON
MEMBER ENTITY'S RESPONSIBILITIES ...............................................26

ARTICLE XXV TERMINATION OF AGREEMENT AND
DISTRIBUTION OF ASSETS .....................................................................27

ARTICLE XXVI NOTICES ......................................................................................................28

ARTICLE XXVII PROHIBITION AGAINST ASSIGNMENT ................................................28

ARTICLE XXVIII AMENDMENTS ..........................................................................................29

ARTICLE XXIX SEVERABILITY ..........................................................................................29

ARTICLE XXX AGREEMENT COMPLETE ........................................................................29

ARTICLE XXXI EXECUTION OF COUNTERPARTS .........................................................30

APPENDIX "A" MEMBER ENTITIES
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PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA [PARSAC]

JOINT POWERS AGREEMENT

THIS AGREEMENT is made in the State of California by and among those municipalities organized and existing under the laws of the State of California, hereinafter referred to as "Member Entity[ies]," which are parties’ signatory to this Ag reement. All such Member Entities are listed in Appendix "A", which is attached hereto and made a part hereof.

RECITALS

A. California Government Code Section 6500 and following permits two or more public agencies by agreement to jointly exercise any power common to the contracting parties.

B. California Government Code Section 990.4 permits a local public entity to self - insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these;
C. California Government Code Section 990.6 provides that the cost of insurance provided by a local public entity is a proper charge against that local public entity; D. California Government Code Section 990.8 permits two or more local entities to, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990.4 and provides that such pooling of self - insured claims or losses does not constitute the business of insurance under th e California Insurance Code;

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E. California Labor Code Section 3700(c) permits all political subdivisions of the State of California, including each member of a pooling arrangement under a joint exercise of powers agreement to self -insure against workers’ compensation claims by securing a certificate of consent from the Department of Industrial Relations; F. Each of the Member Entities, which is a party to this Agreement, desires to join with the other Member Entities to fund programs of insurance for wo rkers' compensation, liability, property and other coverages to be determined and for other purposes set forth in Article III of this Agreement;
G. The governing body of each Member Entity has determined that it is in its own best interest and in the public interest that this Agreement be executed and that it participate as a member of the Public Agency Risk Sharing Authority of California [PARSAC] created by this Agreement; and
H. As of the effective date of this Agreement, this Agreement shall replace and supersede the Joint Powers Agreement Creating the Public Agency Risk Sharing Authority of California, dated May 21, 1986, as amended on November 20, 1987, July 1, 1989, and November 19, 1993, May 31, 1996, December 13, 2002, December 12, 2003, May 20, 2005, May 31, 2007, December 2, 2010, May 26, 2011 and May 25, 2017.

Now, therefore, in consideration of the above facts and the mutual benefits, promises and agreements set forth below, the Member Entities hereby agree as follows:
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AGREEMENT

ARTICLE I

DEFINITIONS

The following terms shall have the following definitions:

A. “Agreement” shall mean this Revised and Restated Joint Powers Agreement creating the Public Agency Risk Sharing Authority of California [PARSAC].

B. “Alternate” shall mean the person de signated by the Member Entity to act as a director of PARSAC in the absence of the Director. The Alternate shall have the same responsibility, power and authority as the Director when acting in the Director's stead.

C. “Board” or “Board of Directors” shall mean the governing body of PARSAC.

D. “Bylaws” shall mean the Bylaws of PARSAC, revised as of May 27, 2010, and as they may be further amended or revised.

E. “Claims” shall mean any demand[s] made against a Member Entity to recover for monetary damages within, or alleged to be within, the scope of coverage provided by any of PARSAC's Memoranda of Coverage [or any commercial insurance policy related to a PARSAC Program].

F. “PARSAC” shall mean the Public Agency Risk Sharing Authority of California created by this Agreement.

G. “Covered Loss” shall mean any loss resulting from a claim or claims against a Member Entity which is in excess of its Self -Insured Retention and which is covered by any of PARSAC's Memoranda of Coverage [or insurance policy related to a PARSAC Program].

H. “Deposit Premium ” shall mean the estimated amount determined for each Member Entity necessary to fund each layer of coverage for each Policy Year of each 478
Adopted May 25, 2017 4

Program of PARSAC.

I. “Executive Committee ” shall mean that committee of the Board, constituted and exercising the authority set forth in this Agreement and in the Bylaws.

J. “Fiscal Year” shall mean the period of time ending on June 30 of each year during which PARSAC is in existence.

K. “Incurred Loss” shall mean the amount of monies paid and reserved by PARSAC t o investigate, defend and satisfy a demand or demands made against a Member Entity.

L. “Insurance” shall mean commercial insurance policies which PARSAC may purchase for its Member Entities, from time to time, in order to effect a transfer of risk.

The term "Insurance" shall not mean any self-insurance, risk-sharing or pooling of losses or risks.

M. “Liability Program Participant” shall refer only to members of PARSAC that have been approved and are in good standing to participate in the Liability Program.

N. “Member Entity ” shall mean any California public entity which is a party signatory to this Agreement including any other agency for which the City Council sits as the Governing board.

O. “Memorandum of Coverage” shall mean the document or documents issued by PARSAC specifying the type and amount of coverages provided under any Program to the Member Entities by PARSAC.

P. “Program Year” shall mean a period of time, usually 12 months, for which each Program is to determine Deposit Premiums, Retrospective Premiums, and R etrospective Premium Adjustments.
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Q. “Program” shall mean arrangements to cover specific types of claims which may include, but not be limited to, property, workers' compensation, and comprehensive liability claims.

R. “Public Entity” shall mean a county, city, whether general law or chartered, city and county, town, district, political subdivision, joint powers authority, or any board, commission, or agency thereof providing a municipal service, excluding school districts.

S. “Retrospective Premium” shall mean, the amount determined retrospectively as each Member Entity's share of losses, reserves, expenses and interest income as may be determined periodically for any Program.

T. “Retrospective Premium Adjustment ” shall mean the amount necessary to periodically adjust the Deposit Premium, or prior Retrospective Premiums if any, to the newly calculated Retrospective Premium amount.

U. “Self-Insured Retention ” or “ SIR” shall mean the amount of loss from each occurrence which the Member Entity shall retain and pay directly and which shall not be shared by the Member Entities of PARSAC.

V. “Workers’ Compensation Program Participant ” shall refer only to members of PARSAC that have been approved and are in good standing to participate in the Workers’ Compensation Program.

W. “Group Purchase Programs” shall mean coverage programs provided by insurance policies where there is no self-insurance, risk sharing or pooling. 480
Adopted May 25, 2017 6

ARTICLE II

PARTIES TO THE AGREEMENT

Each Member Entity is a party to this Agreement and agrees that it intends to, and does contract with, all other parties who are signatories of this Agreement and with such other parties as may later be added. Each Member Entity also agrees that the expulsion or withdrawal of any Member Entity from this Agreement shall not affect this Agreement nor the remaining parties as to the other Member Entities then remaining.

ARTICLE III

PURPOSES

This Agreement is entered into by the Member Entities in order to:

A. Create the Public Agency Risk Sharing Authority of California to carry out th e purposes listed below and to exercise the powers contained in this Agreement; B. Develop effective risk management programs to reduce the amount and frequency of their losses;
C. Share some portion, or all, of the cost of their losses; D. Jointly purchase commercial insurance, associate with other risk -sharing pools, or self-insure against risks;
E. Jointly purchase administrative and other services including, but not limited to, underwriting, risk management, loss prevention, claims adjusting, data p rocessing, brokerage, accounting and legal services when related to any of the other purposes; F. Provide other joint powers risk sharing authorities with management services; and
G. Do all things necessary to carry out the foregoing purposes, as we ll as all things necessary to implement the terms of this Agreement as permitted by law. 481
Adopted May 25, 2017 7

ARTICLE IV

CREATION OF THE PUBLIC AGENCY

RISK SHARING AUTHORITY OF CALIFORNIA

Pursuant to the California Government Code, the Member Entities hereby agree to continue in existence a public entity, separate and apart from the parties to this Agreement, to be known as the Public Agency Risk Sharing Authority of California ["PARSAC"]. The debts, liabilities or obligations of PARSAC shall not constitute debts, liabilitie s or obligations of any party to this Agreement. However, a Member Entity may separately contract for, or assume responsibility for, specific debts, liabilities or obligations of PARSAC.

ARTICLE V

TERM OF AGREEMENT

This Agreement shall become effective as of the date hereof and shall continue in full force and effect until terminated in accordance with Article XXVI.

ARTICLE VI

POWERS OF PARSAC

PARSAC shall have the powers common to its Member Entities in California and all additional powers permitted to a joint powers authority by California law, and the parties hereby authorize PARSAC to do all acts necessary to exercise such powers to fulfill the purposes of this Agreement including, but not limited to, the following:

A. Make and enter into contracts;
B. Incur debts, liabilities and obligations;
C. Acquire, hold, lease or dispose of real and personal property, contributions and donations of property, funds, services and other forms of assistance; D. Sue and be sued in its own name and settle any claim against it; E. Employ agents and employees;
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Adopted May 25, 2017 8

F. Acquire, construct, manage, maintain or operate buildings, works or improvements;
G. Receive, collect, and disburse monies; and invest money not required for immediate necessities; and
H. Exercise all powers necessary and proper to carry out the terms and provisions of this Agreement.

ARTICLE VII

RESPONSIBILITIES OF MEMBER ENTITIES

Each member entity shall:

A. Sign this Agreement and its legally enacted amendments and participate in PARSAC's Liability Program and/or Workers’ Compensation Program; B. Sign a Membership Resolution for each Program;
C. Pay Deposit Premiums, Retrospective Premium Adjustments, and any Special Assessments to PARSAC on or before the due date;
D. Appoint, elect or remove representatives to serve as director and alternate on the Board, which representatives are expressly authorized to act on behalf of the Member Entity on all matters coming before the Board;
E. Assure that its representative director or alternate attends at least one meeting of the Board annually;
F. Assure that its representative director and alternate keep informed about PARSAC's activities and assist them in doing so;
G. Approve Amendments to this Agreement as set forth in Article XXIX; provided, however, the Member Entity may, by resolution or ordinance, authorize its director and alternate on the Board to approve and execute amendments on behalf of the Member Entity 483
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without the necessity of a resolution or ordinance of the legislative body of the Me mber Entity confirming or ratifying such amendment.

H. File, in a prompt and timely manner, all statewide, county, and locally- mandated reports and filings, including but not limited to the Fair Political Practices Commission's Statement of Economic Interests;
I. Undertake a risk management audit of its facilities and activities, conducted by a person and/or firm approved by PARSAC's Executive Committee and, based upon such report, to evidence correction, elimination and/or clarification of all noted defi ciencies or recommended corrections to the satisfaction of PARSAC's Executive Committee. Risk management audits may be required by the Executive Committee as frequently as it chooses.

Risk management audits may be paid by PARSAC and charged back to Member; J. Provide PARSAC with a copy of its most recent audited annual financial statements prepared by a Certified Public Accountant; or, if not available, provide PARSAC with the most recent set of unaudited monthly financial statements, and any other finan cial material as may be requested by PARSAC from time to time; K. Cooperate with, communicate and assist in a timely manner, PARSAC and any insurer, provider of excess coverage, claims adjuster, legal counsel or other service provider engaged or retained by PARSAC in all matters relating to this Agreement; L. Promptly cooperate with PARSAC to determine and/or clarify any incidents which might become losses, the cause of any and all actual losses, and methods to bring about settlement of claims;

M. Comply wi th its obligations and responsibilities under this Agreement, the 484
Adopted May 25, 2017 10

Bylaws, the Memoranda of Coverage, the Risk Management Standards, PARSAC's policies and procedures, and any other contract or requirement [as any of the foregoing may be created or amended] necessary to implement this Agreement or any Program; N. Pay any fines or penalties assessed by the Board or any regulatory agency that are attributable to the Member Entity's failure to perform in accordance with self- insurance regulations or comply wit h the provisions of this Agreement. An appeal may be filed with the appropriate regulatory agency. All decisions of the Board are final.

O. Use an Executive Committee- approved third- party claims administrator for claims handling, under such circumstances as the Board of Directors may require.

Failure to comply with any of the obligations under this section may be grounds for expulsion pursuant to Article XXIV of this Agreement.

ARTICLE VIII

BOARD OF DIRECTORS

Except as otherwise provided in this Agreement o r in the Bylaws, the powers of PARSAC shall be exercised, its property shall be controlled, and its affairs shall be conducted by its Board of Directors whose meetings, functions and activities shall be governed by the Bylaws.

The Board shall be composed of on e director who represents and acts on behalf of each respective Member Entity which participates in PARSAC's Liability and/or Workers’ Compensation Program. The number of persons on the Board shall be equal to the number of Member Entities. In addition, each Member Entity shall appoint a second individual as alternate director, who shall have the authority to attend, participate in, and vote at any meeting of the Board when the respective director is absent. Each director and alternate director shall be an elected official or employee of the respective Member Entity, shall be appointed by the 485
Adopted May 25, 2017 11

respective Member Entity's governing body, and shall serve at its pleasure. If a director or alternate ceases to be an employee or elected official of a Member E ntity for any reason, his or her position on the Board and any of its committees shall immediately terminate.

The Board of Directors shall have the following powers and functions:

A. The Board shall exercise all powers and conduct all business of PARSAC, either directly or by delegation of authority to other bodies or persons pursuant to this Agreement and applicable law;
B. The Board shall form an Executive Committee from its membership. In the Bylaws the Board shall delegate to that Committee such powers as it sees fit; C. The Board may form such other committees as it deems appropriate in conducting PARSAC's business;
D. The Board shall elect PARSAC's officers;
E. The Board shall cause to be prepared and adopt PARSAC's annual operating budget;
F. The Board shall develop, or cause to be developed, and shall review, modify as necessary, and adopt each of PARSAC's Programs, including all provisions for reinsurance and administrative services necessary to carry out such Program; G. The Board shall contract or otherwise provide for necessary services to PARSAC and to Member Entities. These necessary services may include, but shall not be limited to, risk management consulting, loss prevention and control, centralized loss reporting, actuarial consulting, claims adjusting, and legal defense services; H. The Board, either directly or through the Executive Committee, shall provide policy direction to PARSAC's General Manager;
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I. The Board shall receive and act upon reports of its committees and the Gener al Manager, either directly or through the Executive Committee; J. The Board shall establish monetary limits upon any delegation of the claims payment and settlement authority, beyond which a proposed settlement must be referred to the Board for approval;
K. The Board may require that PARSAC review, audit, report upon, and make recommendations with regard to the safety or claims administration functions of any Member Entity insofar as those functions are affecting PARSAC's liability or potential liability . Th e Board may forward any or all such recommendations to the Member Entity with a request for compliance and a statement of potential consequences for noncompliance; L. The Board shall receive, review and act upon periodic reports and audits of PARSAC's funds;
M. The Board may amend, repeal or adopt new Bylaws, this Agreement or other key documents;
N. The Board may increase, decrease, or otherwise amend the coverages, limits and other terms of any Memorandum of Coverage;
O. The Board shall approve a ny proposal by the Executive Committee for Special Assessments from the Member Entities before such Special Assessments are billed; P. The Board may expel a Member Entity from any Program or from membership in PARSAC pursuant to Article XXIV of this Agreement;
Q. The Board may ratify actions of the Executive Committee, where such ratification is required before the action becomes final; R. The Board may enter into a joint venture or contractual arrangement with any 487
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similar entity and may also enter into a mer ger or acquisition agreement with a similar entity, provided that if PARSAC is not the surviving entity in any such merger or acquisition, such action shall require approval by the vote of three-fourths of the Member Entities; and S. The Board shall have such other powers and functions as are provided for in this Agreement, the Bylaws, and applicable law.

ARTICLE IX

OFFICERS

The officers of PARSAC shall be the President, Vice President, Treasurer, and Auditor/Controller, and their qualifications and duties shall be those set forth in the Bylaws.

ARTICLE X

EXECUTIVE COMMITTEE

There shall be an Executive Committee, all of whose members shall be directors. The Executive Committee shall set policy for and direct the administration of PARSAC on a day- to- day basis and may, without limitation, provide incentives and impose penalties, financial or otherwise, for performing or failing to perform in conformance with PARSAC requirements, programs, standards and policies. The composition, specific authority a nd me eting arrangements of the Executive Committee shall be set forth in the Bylaws.

ARTICLE XI

ADMINISTRATION

PARSAC shall have a general manager, who shall be appointed or terminated by the Executive Committee, shall be responsible to the Executive Com mittee for the efficient and effective administration of PARSAC, and who shall serve as the Secretary of PARSAC. The General Manager shall attend all meetings of the Board, the Executive Committee, and other committees of the Board (but shall have no vote ), sh all prepare and maintain all minutes of meetings of the Board and its Committees, notices of meetings, and records of PARSAC, and 488
Adopted May 25, 2017 14

shall carry out all duties set forth in the Bylaws.

ARTICLE XII
BUDGET

The Executive Committee shall recommend and the Board shall adopt an annual operating budget prior to the beginning of each Fiscal Year.

ARTICLE XIII

ANNUAL AUDITS AND REVIEWS

A. Financial Audit. The Auditor/Controller shall cause an annual financial audit of the accounts and records to be prepared by a Cer tified Public Accountant in compliance with California Government Code Sections 6505 and 6505.5 or 6505.6 with respect to all receipts, disbursements, other transactions and entries into the books of PARSAC. The minimum requirements of the audit shal l be those prescribed by the State Controller for special districts under Government Code Section 26909 and shall conform to generally accepted accounting standards. A report of each such audit shall be filed as a public record with the Board, each of the Member Entities, and the auditor/controller of the county in which PARSAC’s administrative office is located. The report shall be filed within twelve [12] months of the end of the fiscal year under examination. PARSAC shall pay all costs for such financial audits.

B. Actuarial Review . The Board shall cause an annual actuarial review to be prepared for each of the Programs of PARSAC and a report of such actuarial review shall be made available for inspection by the Board and the Member Entities. PARSAC sha ll pay all costs for such actuarial review.

C. Claims Audit. The Board shall cause a biannual claims audit of the administration of the claims for each of the Programs of PARSAC. A report of such claims review shall be made available for inspection by the B oard and the Member Entities. PARSAC 489
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shall pay all costs of such claims reviews.

ARTICLE XIV

ESTABLISHMENT AND ADMINISTRATION OF FUNDS

PARSAC shall be responsible for the strict accountability of all funds and the reporting of all receipts and disbursements in accordance with generally accepted accounting principles.

It will comply with all provisions of law relating to this subject, including California Government Code Sections 6500-6525.

The Treasurer of PARSAC shall establish and maintain such fund s and accounts as may be required by good accounting practices and by the Board. Separate accounts shall be established and maintained for each Program Year of each Program of PARSAC. Books and records of PARSAC in the hands of the Treasurer or other designate d person shall be open to inspection at all reasonable times by members of the Board or authorized representatives of the Member Entities.

The Treasurer shall have the custody of and disburse PARSAC ’s funds. He or she may delegate disbursing authority to such persons as may be authorized by the Board to perform that function provided that, pursuant to Government Code Section 6505.5, the Treasurer shall:

A. Receive and acknowledge receipt of all funds of PARSAC and place them in the treasury to the credit of PARSAC;
B. Be responsible upon his or her official bond for the safekeeping and disbursement of PARSAC's funds so held by him or her;
C. Pay any sums due from PARSAC as approved for payment by the Board or by any body or person to whom the Board has delegated approval authority, making such payments from PARSAC's funds upon warrants drawn by the Auditor; D. Verify and report in writing to PARSAC and to Member Entities, as of the first 490
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day of each quarter of the fiscal year, the amount of money t hen held for PARSAC, the amount of receipts since the last report, and the amount paid out since the last report; E. Prepare a complete written report of all financial activities within one hundred and twenty [120] days after the close of each fiscal year for such fiscal year to the Board and to each Member Entity; and
F. Receive, invest, and disburse funds in accordance with the procedures established by the Board or the Bylaws and in conformity with applicable law.

Pursuant to Government Code Section 6505.1, the General Manager, the Treasurer, and such other persons as the Board may designate shall have charge of, handle, and have access to PARSAC's property.

PARSAC shall secure and pay for a fidelity bond or bonds, in an amount or amounts and in form speci fied by the Board, covering all officers and employees of PARSAC who are authorized to hold or disburse PARSAC's funds and all officers and employees who are authorized to have charge of, handle, and have access to PARSAC's property.

The Authority shall d efend and indemnify its directors, officers, and employees to the same extent as any other public entity of the State of California is obliged to defend and indemnify its public employees pursuant to California Government Code Section 825, et seq., or other applicable provisions of law.

The Authority may insure or self -insure itself to the extent deemed necessary by the Board against loss, liability and claims arising out of or connected to the conduct of the Authority’s activities.

ARTICLE XV
SUPPORT OF PARSAC’S GENERAL EXPENSES

Costs of staffing and supporting PARSAC [hereinafter called PARSAC's general 491
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expenses] shall be equitably allocated among the various Programs by the Board, and shall be funded by the Member Entities which participate in suc h Programs [and ex-Member Entities] in accordance with such allocations.

ARTICLE XVI

DEPOSIT PREMIUMS

The Deposit Premiums for the Liability and Workers’ Compensation Programs shall be set at a level estimated to be sufficient, as determined by the Execu tive Committee, to cover PARSAC’s budget for each Policy year. The Deposit Premiums for the Member Entities shall be set by PARSAC using various rating and underwriting criteria, such as:
[1] The Member Entity's payroll;
[2] The Member Entity's exposure base;
[3] The results of an on-site underwriting inspection;
[4] The Member Entity's prior claims history;
[5] Total insurable values; and/or
[6] Employee classification ratings.

Deposit Premiums for the Liability, Workers’ Compensation, and Group Purchas e Programs shall be billed to the Member Entities.

At the conclusion of each Program Year, PARSAC shall conduct a payroll audit of each Member Entity to adjust for any discrepancies between estimated and actual payroll. In the sole discretion of PAR SAC, an on -site payroll audit may be conducted by PARSAC or an independent auditor. Any adjustments in payrolls, either debits or credits, shall result in an assessment of additional premiums or a return of overpaid premiums. This adjustment shall be made within sixty (60) days after the date of the audit.

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ARTICLE XVII

PARSAC MEMBERSHIP

Member Entities shall participate in PARSAC's Liability Program and/or Workers’ Compensation Program as a condition of membership in PARSAC. Participation in either Program shall be a minimum of three years and the Term shall be renewed for subsequent one - year periods at the commencement of each Program Year upon payment of the applicable Deposit Premium, unless termination, withdrawal, or expulsion occurs pursuant to Ar ticles XXIII and XXIV of this Agreement. The Executive Committee shall establish the initial SIR for each Liability or Workers’ Compensation Program Participant and may require a different SIR for Program Participants from time to time, in its sole discretion.

Program Years shall begin on July 1 of each year and shall continue through the following June 30. Retroactive coverage may be provided as approved by the Board and documented on the Declaration Page of the respective Memorandum of Coverage.

ARTICLE XVIII

MEMORANDA OF COVERAGE

The types and amounts of coverage for each Program available to Member Entities shall be specified in a Declarations Page and/or Memorandum of Coverage which shall be issued by PARSAC to each Member Entity for each Program Ye ar in which the Member Entity has coverage. The Board shall have the power and authority to decrease, increase, or amend the coverage provided by a Memorandum of Coverage. If any such amendment is approved by the Board during a Program Year, no Member Entity participating in that Program Year shall be entitled to withdraw by reason of any said amendment prior to the termination of that Program Year.

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ARTICLE XIX

SIR MANDATORY RESERVES/PAYMENTS

A Member Entity participating in the Liability Program must estab lish by resolution a “Fund Balance Reserve” (“Reserve”) equal to three times (3) the designated SIR, or any underlying insurance deductible chosen, and approved for the Member Entity by PARSAC.

The Reserve will be recorded and maintained in the appro priate Member Entity Fund in accordance with Generally Acceptable Accounting Principles.

PARSAC will be notified of any proposed adjustment to the Reserve prior to the Member Entity’s adoption of such a resolution.

PARSAC may request certification, by the Member Entity, of the balance in the Reserve account at any time.

Applicants establishing coverage with PARSAC shall be required to submit the “Fund Balance Reserve Resolution” prior to coverage inception.

Any Member Entity which does not desire to establ ish a local Fund Balance Reserve at the required three-times its SIR, or underlying insurance deductible amount, may contract for an actuarial study of its losses and reserves by a Fellow of the Casualty Actuary Society (FCAS) to ascertain and represent to PARSAC adequate SIR Reserves. Such SIR amount shall be established as the correct Reserve for that Member Entity.

Although not obligated to do so, PARSAC may elect to pay a portion of claims expenses before the Member Entity’s self -insured retention has been exhausted in order to expedite the resolution of a claim. In this event, the member will be invoiced and shall have 30 days from the date of invoice to remit reimbursement. A 10% penalty shall be applied to the balance if payment is not received by the due date.

The claims payment procedures for members participating in the Workers’ 494
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Compensation Program with a self-insured retention are as follows:

1. The Member Entity shall set up a checking account with the Third -Party Administrator (TPA). The TPA sha ll pay all claim expenses within the Member’s Entity’s self-insured retention from the checking account. The Member Entity shall be responsible for ensuring sufficient funds are available for all costs related to the checking account, including any set-up fees charged by the TPA; or

2. PARSAC shall pay all claim expenses within the Member Entity’s self -insured retention, which shall be reconciled and invoiced to the Member Entity quarterly.

The Member Entity shall have 30 days from the date of invoice to sub mit its self- insured retention payment. A 10% penalty shall be applied to the balance if payment is not received by the due date. This option is available to Member Entities with an SIR of $100,000 or lower.

ARTICLE XX

RETROSPECTIVE PREMIUM ADJUSTMENTS AND ASSESSMENTS

Retrospective Premium Adjustments (RPA) for self-funded Programs shall be calculated annually as determined by each Program’s funding policy. The Board may determine and levy special assessments on Member Entities by majority vote.

The R PA is a financial reconciliation made by PARSAC to determine whether the Deposit Premium collected for that Policy Year was sufficient to cover the costs. A n RPA summary is presented annually to the Board for approval. Distribution of credits or collection of assessments will follow each Program’s funding policy.

If a Member Entity has timely withdrawn or been expelled from a Program, any Retrospective Premium Adjustment credit shall remain with PARSAC until all Policy Year(s) in which they participated have been closed and reconciled. Any Retrospective Premium 495
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Adjustment deficit shall be billed to the Member Entity at the time that particular Policy Year(s) is being reconciled. If a withdrawn or expelled member’s total equity for all program years in which t hey participated is insufficient, the member will be billed at the time the deficit is identified. A member that has untimely withdrawn from a program foregoes their right to any remaining equity and is subject to assessment for any deficits.

ARTICLE XXI

NEW MEMBERS

Any California public entity as defined in Article I may apply for membership in PARSAC and participation in any of PARSAC's Programs at any time. Public Entities must participate in either the Liability or Workers’ Compensation program befor e participating in other Program offerings.

PARSAC shall review all requests for Program membership, and the Executive Committee shall approve and the Board shall ratify, which applicants shall be accepted for membership, in which Programs they may partic ipate, and when such participation shall begin.

Public Entities shall become new Member Entities as of the effective date of coverage indicated on the Program Declarations Page and upon payment of the Deposit Premium. Public Entities which are in the process of formation shall be covered only as of the effective date of formation.

Deposit Premiums for coverage which begins during a Program Year may be prorated for the remainder of the Program Year. A Public Entity applying for membership in the Workers’ Compensation or Liability Program shall complete, return and comply with all of the following:

A. An “Application for a Certificate of Consent to Self -Insure” from the Department of Industrial Relations/Division of Self- Insurance Plans (DIR/SIP) (Worke rs’ Compensation only);
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B. Loss reports for the five (5) most recent policy years; C. Estimated payroll for the current year and corresponding to the 5 years of loss data
D. Liability Exposure questionnaire from PARSAC, questionnaires from the ex cess carrier or reinsurer, and most recent three years’ audited financial statements; E. Undertake a risk management audit of its facilities and activities and, based upon such audit report, provide evidence of correction, elimination and/or clarification of all noted deficiencies revealed by such inspection; and
F. Such other information as is reasonably required by PARSAC to assure compliance with law and PARSAC policies.

ARTICLE XXII

WITHDRAWAL

Any Member Entity who has been a member for at least thr ee fu ll fiscal years may withdraw from its status as a member and as a party to the Joint Powers Agreement by submitting notice in writing to PARSAC as follows:

A. Timely Notice of Withdrawal . A withdrawing Member Entity must notify PARSAC of its intention to withdraw at least six (6) months prior to the end of the fiscal year in which the member intends to withdraw, unless a shorter withdrawal period is approved by the Executive Committee, in its sole discretion. Withdrawing members who submit Timely Notice s hall be subject to an administrative fee equal to their pro -rata share of ongoing expenses for the three program years following withdrawal. Ongoing expenses include but are not limited to staff payroll and benefits, actuarial services, investment services, financial audits, and claims administration. Withdrawing member will be 497
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invoiced for their portion of the administrative fee each of the three years.

Calculation and Payment of Fee. The administrative fee shall be calculated based on the member’s actual payro ll and self -insured retention level in the last year in which the member participated. In year one, 100% of the administrative fee will be charged to the member; 50% in year two; and 25% in year three. The withdrawing member shall be invoiced for thei r por tion of the administrative fee and it shall not be taken from equity. Should equity be insufficient to cover any deficit, the member will be subject to assessment. The withdrawing member’s equity will remain with PARSAC until all years in which the m ember has participated are closed. Any equity remaining after all years have closed will be returned to the withdrawn member.

B. Untimely Notice of Withdrawal. Members submitting a notice of intent to withdraw less than six (6) months prior to the end o f the fiscal year, but not later than April 1, in which the member intends to withdraw shall be considered untimely. In the event of an untimely notice of intent to withdraw, the withdrawing member shall forego their right to any remaining equity. In addition to foregoing equity, w ithdrawing members who submit Unt imely Notice shall be subject to an administrative fee equal to their pro -rata share of ongoing expenses for the three program years following withdrawal. Ongoing expenses include but are not limit ed to staff payroll and benefits, actuarial services, investment services, 498
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financial audits, and claims administration, and will remain subject to both the administrative fee and assessments for all years in which they participated. Withdrawing members will be invoiced for their portion of the administrative fee each of the three years. Calculation and Payment of Fee. The administrative fee shall be calculated based on the member’s actual payroll and self -insured retention level in the last year in which the member participated. In year one, 100% of the administrative fee will be charged to the member; 50% in year two; and 25% in year three.

Withdrawal from the Liability or Workers Compensation Program shall terminate coverage under that Program. If withdrawal would result in the Member Entity no longer being a member of either the Liability or the Workers Compensation Program, then such withdrawal shall constitute withdrawal from this Agreement and from membership in PARSAC, subject to the ex -Member Enti ty's continuing obligations under Article XXV below.

A notice of intent to withdraw may be rescinded in writing with Executive Committee consent at any time earlier than ninety (90) days before the expiration of the withdrawal period, except that any withdrawal approved by the Executive Committee upon less than 6 months notice shall be final.

Any Member Entity which withdraws as a participant in any Program may renew participation in that Program by complying with all Program rules and regulations.
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ARTICLE XXIII

EXPULSION

Regardless of its three -year commitment under the Liability and/or Workers’ Compensation Program, a Member Entity may be expelled from PARSAC or a Program either with or without cause. The General Manager shall review any lack of satis factory performance or other problem with the Member Entity and shall attempt to resolve the matter. If the General Manager determines that the Member Entity is unwilling or unable to correct the problem, the General Manager shall present the matter to th e Exe cutive Committee. The Executive Committee may recommend to the Board that the Member Entity be expelled, either with or without cause. Written notice of the Executive Committee's recommendation for expulsion shall be delivered to the Member Entity with return receipt at least fourteen [14] days before the Board meeting at which the matter will be discussed. Action by the Board shall require the vote of a majority of the total number of directors. Expelled members are subject to the administrative fee for a timely withdrawal as described in Article XXIII, Paragraph A.

In considering the expulsion of a Member Entity, the Executive Committee shall allow the affected Member Entity a reasonable opportunity to address and remedy the reasons, if any, for the proposed expulsion. The period of time so allowed shall be within the sole discretion of the Executive Committee. If such a reasonable opportunity is allowed, PARSAC may require quarterly audits to monitor the affected Member Entity's remedial actions or an y other conditions to its continued participation in PARSAC or its Programs.

A Member Entity which is the subject of a proposed expulsion shall be responsible for investigating the availability of alternate coverage. On the request of the Member Entity, the Board may permit the Member Entity a reasonable time to make arrangements for alternative coverage, but such period of time shall be at the Board's sole discretion. 500
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ARTICLE XXIV

EFFECT OF WITHDRAWAL OR EXPULSION

ON MEMBER ENTITY'S RESPONSIBILITIES

The withdrawal or expulsion of any Member Entity after its participation in any Program shall not terminate its responsibility with respect to the following:

A. Provide PARSAC with such statistical and loss experience data and other information as may be necessary for PARSAC to carry out the purposes of this Agreement; B. Pay to PARSAC when due any Deposit Premiums or Retrospective Premium Adjustments for each Policy Year of each Program in which it participated; C. Cooperate fully with PARSAC in det ermining the cause of losses in the settlement of claims;
D. Cooperate with and assist PARSAC and any insurer, excess provider, claims adjuster, legal counsel or other service provider engaged or retained by PARSAC in all matters relating to this Agreement; and
E. Comply with the Bylaws and all policies and procedures of PARSAC not inconsistent with the provisions of this Agreement and not inconsistent with its withdrawal from PARSAC.

Disposition of Equity – Timely Withdrawal or Expulsion. In addition, PARSAC shall retain all remaining equity, and the ex- Member Entity is obligated to pay any future assessments made with respect to the Policy Years of any Program in which it participated, until all such Policy Year[s] have been closed, at which time PARSA C sha ll refund to the ex - Member Entity, any remaining equity which was not expended in settling, paying or otherwise resolving claims against the ex-Member Entity.

Disposition of Equity – Untimely Withdrawal. PARSAC shall retain all remaining equity 501
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and the ex-Member Entity is obligated to pay any future assessments made with respect to the Policy Years of any Program in which it participated, until all such Policy Year[s] have been closed and the administrative fee charged per Article XXII, Paragraph B.

ARTICLE XXV

TERMINATION OF AGREEMENT AND DISTRIBUTION OF ASSETS

This Agreement shall continue in full force and effect until terminated. Termination of this Agreement shall also constitute the termination of all Programs. This Agreement may be terminated at any time by the vote of three -fourths of the Member Entities; provided, however, that this Agreement and PARSAC shall continue to exist for the purpose of disposing of all claims and paying its obligations (to CalPERS) for employees’ health and pension ben efits, before the distribution of assets, and any other functions necessary to wind up the affairs of PARSAC.

Upon termination of this Agreement, all assets of each Program of PARSAC shall be distributed among the Member Entities [and ex- Member Enti ties which previously timely withdrew or were expelled] which participated in such Programs, in accordance with the retrospective premium adjustment process in effect during the term of this Agreement. Such distributions shall be determined within six [6] months after the disposal of the last pending claim or other liability covered by each Program.

Following the termination of this Agreement, any Member Entity which was a participant in any Program of PARSAC shall pay any additional amount of premium, determined by the Board or its designee in accordance with a retrospective premium adjustment, which may be necessary to enable final disposition of all claims arising from losses under that Program during the Member Entity's period of participation.

The Bo ard i s vested with all powers of PARSAC for the purpose of concluding and 502
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dissolving the business affairs of PARSAC. The Board may designate legal counsel and any committee or person to carry out a plan of dissolution adopted by the Board.

ARTICLE XXVI

NOTICES

Notices to Member Entities under this Agreement or the Bylaws shall be sufficient if mailed to their respective addresses on file with PARSAC. Notices to PARSAC shall be sufficient if mailed to the address of the principal executive office of PARSAC, addressed to the General Manager.

ARTICLE XXVII

PROHIBITION AGAINST ASSIGNMENT

No Member Entity may assign any right, claim, or interest it may have under this Agreement, and no creditor, assignee or third-party beneficiary of any Member Entity shall have any right, claim or title to any part, share, interest, fund, premium or asset of PARSAC.

ARTICLE XXVIII

AMENDMENTS

This Agreement may be amended by a two -thirds vote of the Board present and voting at any duly convened regular or special meeting ; provided that, any such amendment has been submitted to the directors and the Member Entities at least thirty [30] days in advance of such meeting. Member Entities may, by resolution or ordinance, grant their director and alternate on the Board explicit authorization to approve and execute amendments to this Agreement on behalf of the Member Entity without the necessity of a resolution or ordinance of the legislative body of the Member Entity confirming or ratifying such amendment. Any such amendment shall become effective immediately, unless otherwise stated therein.

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ARTICLE XXIX

SEVERABILITY

Should any portion, term, condition or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions and provisions shall not be affected thereby.

ARTICLE XXX

AGREEMENT COMPLETE

The foregoing constitutes the full and complete agreement of the parties. There are no oral understandings or agreements not set forth in writing herein, except as noted with respect to the Bylaws and Memoranda of Coverage. If any provision of this Agreement conflicts with a provision of the Bylaws, Memoranda of Coverage or other document, such conflicting provisions shall be interpreted to avoid any such conflict, but this Agreement shall govern. 504
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ARTICLE XXXI

EXECUTION OF COUNTERPARTS

This Agreement may be executed in any number of counte rparts, each of which when so executed shall be deemed to be an original, but altogether shall constitute one and the same Agreement.

Public Agency Risk Sharing Authority of California ["PARSAC"]

Date: By: ________________________________________ Name/Title

Attest: __________________________________________
Deputy Secretary, PARSAC

Member Entity: __________________________

Date: By: __________________________________________
Name/Title
Attest: __________________________________________
City/Town Clerk
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APPENDIX “A”

PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA
[PARSAC]

MEMBER ENTITIES

City of Amador City
City of Avalon
City of Belvedere
City of Blue Lake
City of California City
City of Calimesa
City of Calistoga
City of Citrus Heights
City of Clearlake
City of Coalinga
City of Ferndale
City of Grass Valley
City of Highland
City of Menifee
City of Nevada City
City of Pacific Grove
City of Placentia
City of Placerville
City of Plymouth
City of Point Arena
City of Rancho Cucamonga
Rancho Cucamonga Fire Protection District
City of Rancho Santa Margarita
City of San Juan Bautista
City of South Lake Tahoe
City of Tehama
City of Trinidad
Town of Truckee
City of Twentynine Palms
City of Watsonville
City of West Hollywood
City of Wheatland
City of Wildomar
Town of Yountville
City of Yucaipa
Town of Yucca Valley

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PARSAC

AGREEMENT FOR APPORTIONMENT OF

RETIREMENT OBLIGATIONS
Public Agency Risk Sharing
Authority of California
Appendix "C"
Public Agency Rish Sharing Authority of California (PARSAC) Agreement for Apportionment of Retirement Obligations Dated May 25, 2017
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PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA [PARSAC]

AGREEMENT FOR APPORTIONMENT OF RETIREMENT OBLIGATIONS
THIS AGREEMENT is made in the State of California by and among those municipalities organized and existing under the laws of the State of California, hereinafter referred to as "Member Entity[ies]," which are parties' signatory to the Joint Powers Authority Agreement (as revised effective May 25, 2017, hereafter "JPA Agreement. All such Member Entities are listed in Appendix "A, 11 which is attached hereto and made a part hereof.

RECITALS
Whereas P ARSAC is an entity formed under California Government Code § 6500 which permits two or more public agencies by agreement to jointly exercise any power common to the contracting parties.

Whereas California Government Code§ 6508.2 requires that the member agencies of a joint powers agency ("AGENCY") mutually agree to a 100% apportionment of the AGENCY's retirement liability prior to either a dissolution of the AGENCY or the termination of the AGENCY's participation in a public retirement system.

Now, therefore, in consideration of the above facts and the mutual benefits, promises and agreements set forth below, the Member Entities hereby agree as follow:

AGREEMENT

ARTICLE I

DEFINITIONS
The following terms shall have the following definitions:

A. "Agreement" shall mean this Revised and Restated Joint Powers Agreement creating the Public Agency Risk Sharing Authority of California [PARSAC]. 2 508
B. "Board" or "Board of Directors" shall mean the governing body of PARSAC.

C. "P ARSAC" shall mean the Public Agency Risk Sharing Authority of California created by this Agreement.

D. "Deposit Premium" shall mean the estimated amount determined for each Member Entity necessary to fund each layer of coverage for each Policy Year of each Program of PARSAC.

E. "Member Entity" shall mean any California public entity which is a party signatory to this Agreement including any other agency for which the City Council sits as the Governing board.

F. ''Program Veart' shall mean a period of time, usually 12 months, for which each Program is to determine Deposit Premiums, Retrospective Premiums, and Retrospective Premium Adjustments.

G. '•Program" shall mean arrangements to cover specific types of claims which may include, but not be limited to, property, workers' compensation, and comprehensive liability claims.

H. ''Public Entin" shall mean a county, city, whether general law or chartered, city and county, town, district, political subdivision, joint powers authority, or any board, commission, or agency thereofp_roviding a municipal service, excluding school districts.

I. ''Public Retirement System" shall mean CalPERS or any other Public Entity retirement program established or operated by a California Public Entity available to public employees as to which current or former employees of P ARSAC participated.

J. '�Retirement Liability" shall mean the liability that PARSAC possesses to all former or current employees of PARSAC for retirement benefits owed to them pursuant to a contract between PARSAC and a Public Retirement System and arising by reason of those employees participation in the Public Retirement System.
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K. '•Retrospective Premium" shall mean, the amount determined retrospectively as each Member Entity's share of losses, reserves, expenses and interest income as may be determined periodically for any Program.

L. '�Retrospective Premium Adiustmenf' shall mean the amount necessary to periodically adjust the Deposit Premium, or prior Retrospective Premiums if any, to the newly calculated Retrospective Premium amount.

ARTICLE II

PARTIES TO THE AGREEMENT
Each Member Entity is a party to this Agreement and agrees that it intends to, and does contract with, all other parties who are signatories of this Agreement and with such other parties as may later be added. Each Member Entity also agrees that the expulsion or withdrawal of any Member Entity from this Agreement shall not affect this Agreement nor the remaining parties as to the other Member Entities then remaining.

ARTICLE III

PURPOSE
This Agreement is entered into by the Member Entities in order to:

A. Provide for an apportionment among current and fonner PARSAC Member Entities of 100% of P ARSAC' s Retirement Liability consistent with the requirements of Government Code §§ 6508.1 and 6508.2 as enacted and amended effective January 1, 2019. The current Member Entities of PARSAC are set forth in Appendix A. The former Member Entities of PARSAC as of the date of this Agreement are set forth in Appendix B. 4 510

ARTICLE IV
MF.TH On OF A PPORTTONMF.NT OF RF,TIREMENT LIA RH JTY
A. In the event of a decision by the governing Board of PAR SAC to dissolve and cease all operations, or in the event of a decision by the governing Board of P ARSAC to terminate PARSAC's contract with a Public Retirement System, the Member Entities agree that 100% of PARSAC' s Retirement Liability shall be funded by all current and former PARSAC Member Entities based on a pro rata share of the former and current Member Entities' historical Deposit Premium in the Workers' Compensation and Liability self-funded Programs. The apportionment of the Retirement Liability shall be calculated as set forth above, and the unfunded Retirement Liability then existing shall be paid as follows: The unfunded Retirement Liability then existing shall be paid prior to any distribution of assets as provided in ARTICLE XXV of the JPA Agreement and prior to the payment of any equity that may be determined as the result of the Retrospective Premium Adjustment process as set forth in ARTICLE XX. (For example, should a Member Entity have remaining equity in either the Workers' Compensation or Liability program, at the time of PARSAC's dissolution or PARSAC's termination of PARSAC's contract with a public retirement system, the Member Entity's equity shall first be applied to reduce that Member Entity's share of the apportionment of the Unfunded Retirement Liability.) B. In the event that PARSAC disposes of the real property identified as 1525 Response Road, Sacramento, CA, 95815 (the "Property"), any unfunded Retirement Liability of PARSAC shall first be reduced by applying the proceeds from the sale of the Property as provided in Resolution 2019-03, attached hereto as Exhibit A, prior to the determination of the amounts owed by the former or current Member Entities under the apportionment provided herein. 5 511
C. The apportionment of the Retirement Liability of PARSAC among the former and current Member Entities of PARS AC and the obligation of the. former and c-urrent Member Entities to pay such apportionment of the PARSAC Retirement Liability as provided herein shall be a separate and independent obligation from the obligation of the Member Entities arising upon termination, expulsion or withdrawal of a Member Entity or upon termination of the Joint Powers Agreement (as revised effective May 25, 2017) including but not limited to ARTICLES XX, XXII, XXIII, XXIV and XXV of that Agreement.

ARTICLE V

TERM OF AGREEMENT
This Agreement shall become effective as of the date hereof and shall continue in full force and effect for the purpose of paying 100% of the Retirement Liability of P ARSAC pursuant to the apportionment among former and current Member Entities as provided for herein.

ARTICLE VI

SEVERABILITY
Should any portion, term, condition or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions and provisions shall not be affected thereby.

ARTICLE VII

AGREEMENT COMPLETE
The foregoing constitutes the full and complete agreement of the parties. There are no oral understandings or agreements not set forth in writing herein, except as noted with respect to the Bylaws and Memoranda of Coverage. Ifany provision of this Agreement conflicts with a provision 6 512
of the Bylaws, Memoranda of Coverage or other document, such conflicting provisions shall be interpreted to avoid any such conflict, but this Agreement shall govern.

ARTICLE VIII

AMENDMENTS
This Agreement may be amended by a two-thirds vote of the Board present and voting at any duly convened regular or special meeting; provided that, any such amendment has been submitted to the directors and the Member Entities at least thirty [30] days in advance of such meeting. Member Entities may, by resolution or ordinance, grant their director and alternate on the Board explicit authorization to approve and execute amendments to this Agreement on behalf of the Member Entity without the necessity of a resolution or ordinance of the legislative body of the Member Entity confirming or ratifying such amendment. Any such amendment shall become effective immediately, unless otherwise stated therein.

ARTICLE IX

EXECUTION OF COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but altogether shall constitute one and the same Agreement.
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8 Public Agency Risk Sharing Authority of California [“PARSAC’]

Date: By: ________________________________
N a m e / T i t l e

Attest: ______________________________
Deputy Secretary, PARSAC

Member Entity: _______________________

Date: By: ________________________________
N a m e / T i t l e

Attest: ______________________________
C i t y / T o w n C l e r k

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APPENDIX "A"

PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA
[PARSAC]

MEMBER ENTITIES
City of Amador City
City of Avalon
City of Belvedere
City of Blue Lake
City of California City
City of Calimesa
City of Calistoga
City of Citrus Heights
City of Clearlake
City of Coalinga
City of Ferndale
City of Grass Valley
City of Highland
City of Menifee
City of Nevada City
City of Pacific Grove
City of Placentia
City of Placerville
City of Plymouth
City of Point Arena
City of Rancho Cucamonga
Rancho Cucamonga Fire Protection District
City of Rancho Santa Margarita
City of San Juan Bautista
City of South Lake Tahoe
City of Tehama
City of Trinidad
Town of Truckee
City of Twentynine Palms
City of Watsonville
City of Wheatland
City of Wildomar
Town of Yountville
City of Yucaipa
Town of Yucca Valley
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APPENDIX "B"

PUBLIC AGENCY RISK SHARING AUTHORITY OF CALIFORNIA
[PARSAC]

FORMER MEMBER ENTITIES
City of Alturas
City of Canyon Lake
City of Carlsbad
City of Elk Grove
City of Hesperia
City of Rialto
City of Ridgecrest
City of Rio Dell
City of West Hollywood
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MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

CITY COUNCIL MEETING DATE: JUNE 3, 2025

TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS

SUBJECT
..titl e
Approve a new policy for Utility Connections for the Sphere of Influence and Out -of-Boundary Service Agreements.
..end

RECOMMENDATION
..recommendation
1) Adopt Resolution No. 2025 -021, superseding Resolution No. 2022 -041 and amending the Sanitary Sewer Policy to establish criteria for sewer and water service requests within the City’s Sphere of Influence and Out -of-Boundary service areas ; and 2) authorize the City Manager to execute all necessary documents on behalf of the City.
..body

FISCAL IMPACT
There is no direct fiscal impact to the City associated with the adoption of this resolution.

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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CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: APPROVE A NEW POLICY FOR UTILITY CONNECTIONS FOR THE SPHERE OF INFLUENCE AND OUT-OF-BOUNDARY SERVICE AGREEMENTS.

PAGE: 2

BACKGROUND
The Sphere of Influence (SOI) is a planning boundary established by the Local Agency Formation Commission (LAFCO) to define areas where the City is expected to extend its influence over land use, public services, and future development. Within the SOI, the City of Chino serves as the sole sewer service provider.

Over the years, the City has amended its policies on sewer connections and annexation within the SOI to balance long-term planning objectives with property owners’ needs:
 Resolution No. 2006 -028 – Allowed sewer connections without annexation, provided property owners executed an Irrevocable Agreement to Annex.  Resolution No. 2018 -009 – Required mandatory annexation for all sewer co nnections, with no exceptions.
 Resolution No. 2020 -060 – Reinstated the option for sewer connections without annexation, subject to an Irrevocable Agreement to Annex.  Resolution No. 2022 -041 – Introduced greater flexibility for accessory dwelling units (ADUs).

While these resolutions establish a policy framework, staff have found that sewer connection requests often present unique circumstances requiring a structured yet adaptable approach to decision-making.

On February 25, 2025, staff presented a review o f the City’s current sewer policy to the Infrastructure and Streets Committee. The Committee identified challenges with the existing framework, particularly regarding clarity, consistency, and flexibility. The discussion also addressed the need to formaliz e the evaluation of Out -of-Boundary Service Agreements with neighboring jurisdictions for sewer and water services.

ISSUES/ANALYSIS
In response to the Committee’s direction and feedback from the City Council Study Session on March 11, 2025, staff developed an updated policy that consolidates the City’s procedures for sewer connections within the SOI and Out-of-Boundary requests for water and sewer service into a single, streamlined framework.

This policy provides objective criteria for staff while preserving discretionary authority for the Infrastructure Committee and City Council. The revised policy supports case -by-case evaluations, ensures public infrastructure feasibility, and protects the City’s economic and operational interests.

Key Policy Elements:

1. Sewer Service Connections - Sphere of Influence (SOI)  This Policy applies to parcels in the County within City of Chino’s Sphere of Influence.  Case-by-Case Review: All requests will be individually assessed for feasibility and consistency.
 General Plan & Zoning Compliance: Required unless a deviation is authorized by Council.
 Deviations: Must be reviewed by the Infrastructure Committee before Council action. 518
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: APPROVE A NEW POLICY FOR UTILITY CONNECTIONS FOR THE SPHERE OF INFLUENCE AND OUT-OF-BOUNDARY SERVICE AGREEMENTS.

PAGE: 3

 Annexation Requirements:
o Non-Contiguous Parcels : Small projects may con nect without annexation but must enter into an Irrevo cable Agreement to Annex (Agreement). This Agreement acknowledges the property owner’s willingness to annex the property into the City at a future date in exchange for the extension or provision of sanitary sewer service by the City. By entering into this Agreement, the property owner irrevocably consents to the future annexation of the property into the City when the City determines such annexation to be appropriate and agrees not to contest or oppose said annexation.
o Sizable Projects (e.g., residential projects with more than 4 units or commercial over 10,000 sq. ft.): May be required to annex unless deemed infeasible. Final infeasibility determination rests with Council.
o Contiguous Parcels: Required to annex unless infeasibility is demonstrated.  ADU Exemption: ADUs are exempt from mandatory sewer connection but are encouraged to connect where feasible. If connection is requested, an Irrevocable Agreement to Annex is still required.

2. Out-of-Boundary Service Agreements (Water & Sewer)
 This Policy applies to parcels adjacent to the City of Chino boundary in Cities of Chino Hills, Ontario and Montclair.
 Extraordinary Measure: Only permitted when no other feasible service alternative exists.  Feasibility Analysis: Required for all service requests.  Public Benefit Assessment: Staff will evaluate broader community impacts and economic implications to the City of Chino businesses or residents.  Committee Oversight: Infrastructure Committee reviews and may reco mmend issuance of an “Ability to Serve” letter.
 Council Authority: Only the City Council may approve or deny service requests.  Applicant Obligations:
o Full cost responsibility for connections.
o Contribution to future capacity upgrades as determined. o Payment of all applicable DIFs and pass -through fees to the Inland Empire Utilities Agency (IEUA).

On May 5, 2025, staff presented the final draft of the proposed policy to the Infrastructure/Streets Committee. The Committee supported staff’s recommendation to mov e the policy forward for City Council consideration.

Therefore, staff recommend s that the City Council approve the Utility Connections Policy governing sewer and water service connections within the City’s SOI and for Out -of-Boundary Service Agreements with neighboring jurisdictions.

Attachments – 1. Existing Sewer Policy – Sphere of Influence (SOI) 519
CITY COUNCIL MEETING DATE: JUNE 3, 2025
TITLE: APPROVE A NEW POLICY FOR UTILITY CONNECTIONS FOR THE SPHERE OF INFLUENCE AND OUT-OF-BOUNDARY SERVICE AGREEMENTS.

PAGE: 4

2. Resolution 2025-021 - Proposed Utility Connections Policy (Sewer and Water Services for SOI and Out-of-Boundary Agreements)

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RESOLUTION NO. 2025-021

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,
CALIFORNIA, SUPERSEDING RESOLUTION 2022-041 AND AMENDING

THE SANITARY SEWER POLICY TO ESTABLISH CRITERIA FOR SEWER AND WATER SERVICE REQUESTS WITHIN THE CITY ’S SPHERE OF

INFLUENCE AND OUT-OF-BOUNDARY SERVICE AREAS
WHEREAS, the City of Chino (“City”), pursuant to its authority as a municipal corporation, previously adopted Resolution No. 2022 -041 to establish a policy governing the provision of sanitary sewer services in the Sphere of Influence (“SOI”); and

WHEREAS, the City has determined that an amendment to the Sanitary Sewer Policy (“Policy”) is necessary to establish clear and enforceable criteria for evaluating sewer and water service requests within its SOI and out-of-boundary service areas; and

WHEREAS, the amended Policy provides a structured framework for assessing infrastructure capacity, regulatory compliance, financial feasibility, and regional public benefits to ensure that sewer and water service extensions align with the City ’s General Plan, Capital Improvement Program, and long-term infrastructure investment priorities as applicable; and

WHEREAS, in furtherance of these objectives, all reque sts for sewer and water service within the SOI and out -of-boundary service areas shall be evaluated on a case -by-case basis utilizing the criteria in the amended Policy; and

WHEREAS, any request for sewer or water service that does not conform to the Cit y’s General Plan land use designations and Zoning Code within the SOI or any request for municipal service connections outside the City’s boundaries shall require Infrastructure Committee review prior to the issuance of an “Ability to Serve” letter to the requesting party; and

WHEREAS, an “Ability to Serve ” letter shall not constitute approval of a utility service connection but shall serve solely as confirmation that the City has the capacity to provide service at the time of issuance; final authority to approve any sewer or water service connection shall remain exclusively with the City Council, which must authorize service through the execution of a formal agreement.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. PROPERTIES WITHIN THE SPHERE OF INFLUENCE (SOI)

Properties located within the SOI seeking connection to the public sewer system shall exclusively obtain sewer service from the City. Pursuant to Section 713.4 of the California Plumbing Code, titled Public Sewer Availability, any property situated within two hundred (200) feet of an existing public sewer line is required to connect to the City's sanitary sewer system. All requests for connection shall be reviewed on a case-by-case basis and shall comply fully with the guidelines set forth herein for properties within the SOI. Any deviations from the General Plan and zoning requirements , irrespective of degree or nature, are subject to review and approval at the sole discretion of the City Council.
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Resolution 2025-021

Page 2 of 7 ends

Chino City CouncilJune 3, 2025

Chino City Council
June 3, 2025