Agenda packet — Chino City Council, July 15, 2025 (part 6 of 7)

TEL EPHO NE
TAF T

JOAQ UIN
101
115 76
08 EUCLID

PIPELINE
RAMONA

CENTRAL
WALNUT
YORBA
EDISON

RIVERSIDE
BENSON

SCHAEFER
OAKS

MONTE VISTA

PHILADELPHIA
12TH
NORTON

EL PRADO

KIMBALL

MAGNOLIA
9TH
10TH
5TH
VERNON
STATE 60
13TH

EUCALYPTUS
11TH
14TH
4TH
3RD
ROSS
2ND
MILLS
PARK
17TH

MERRILL
WRIGHT

RUSSELL

CARLISLE

LINCOLN VERDUGO
GUN
19TH
DUPONT
TERRY

TELEPHONE
AVILA
FALCON
MAXON
TYLER

AMSTERDAM
BACA
TAFT
CROCUS

ARVIDSON
ADAMS
GRANT
WILSON
NAPA

VICENTE

GARFIELD
LIME

HANCOCK

LA PALMA

MARIGOLD
OLIVE
BELL
ALMA
DERBY

BRANDING IRON
ZION
DOHENY

ORANGE BLOSSOM

VAN HORN

CATALPA

VALERIE

BUCHANAN
FERN

EUCALYPTUS
17TH

MONTE VISTA
SERRA

CITY OF
CHINO

CITY OF

CHINO HILLS

CITY OF

ONTARIO

CITY OF MONTCLAIR

COUNTY OF SAN

BERNARDINO
122 109
38 74
80 33
100
132
34 106
61 89
87 49
120
46 86
93 45
126 37
28 121
104
125
62 90
55 96
63 95
99 107
76 117
57 36
111
52 31
29 127
51 108
97 30
124
91 42
123
94 50
118
65 53
114
64 119A
82 59
79 69
88 67
54 03
A
02 C
70 39
112
05 113
98 B
43 19
110
41 16
D
75-1
01 76-2
76-1
48 78
75-2
24 22
131
105
04 128
12 13 06
20 18
133 27
102
26 09 14
15 07
11 17
20 20
20 20
20 20
20 130
103
80 80
74 32
129
25 20
LEGEND
Zone No.

Parcels
City Boundary
M:\G IS-Assessment\Chino\ChinoLMD_83-2_11x17_FY23-24_Test.mxd; Map updatedd 06 Jun 2023 01 So urce : San B erna rdin o Co . GIMS, Jan l 2 02 1.

Landscape and Street Light Maintenance District No. 83-2 (Others) Assessment Diagram - Fiscal Year 2025-26
0 350 700 1,400 2,100 2,800
Feet
1224
SERRA

TE LEP HO NE
TAF T

JO AQU IN
28 61
59 39
41 62
19 60
34 02 11
55 33
31 50
51 13
05 20
42 23
52 49 38
22 44
14 26
21 10
17 40
12 18
56 09
08 32
45 75
53 04 29
03 16 06
15 37
27 48
43 01
54 24
07 30
71 63
66 67
69 79
58 83
77 68
82 35 78
47 85
73 EUCLID

PIPELINE
RAMONA

CENTRAL
WALNUT
YORBA
EDISON

RIVERSIDE
BENSON

SCHAEFER
PINE
OAKS

MONTE VISTA

PHILADELPHIA
12TH
NORTON

EL PRADO

KIMBALL

MAGNOLIA
9TH
10TH
5TH
VERNON
STATE 60
13TH

BICKMORE

MOUNTAIN

EUCALYPTUS

CYPRESS
11TH
14TH
4TH
3RD
ROSS
2ND
MILLS
PARK
17TH

MERRILL
WRIGHT

RUSSELL

CARLISLE

LINCOLN VERDUGO
GUN
19TH
DUPONT
TERRY

TELEPHONE
AVILA
FALCON
MAXON
TYLER

AMSTERDAM
BACA

PIONEER
TAFT
CROCUS

ARVIDSON
ADAMS
GRANT
WILSON
NAPA

VICENTE
LIME

GARFIELD

HANCOCK

LA PALMA

MARIGOLD
OLIVE
BELL
ALMA
DERBY

BRANDING IRON
ZION
DOHENY
YALE

ORANGE BLOSSOM

VAN HORN

CATALPA

VALERIE BUCHANAN
FERN
FERN

EUCALYPTUS
17TH

CITY OF
CHINO

CITY OF

CHINO HILLS

CITY OF

ONTARIO

CITY OF MONTCLAIR

COUNTY OF SAN

BERNARDINO
M:\GIS-Assessment\Chino\ChinoLMD_2002-1_11x17_2024_06_04.mxd; Map updatedd 17 Jun 2024 Landscape and Street Light Maintenance District No. 2002-1 Levy Audit Map - Fiscal Year 2025-26
LEGEND
Zone No.

Parcels
City Boundary
01 0 1,500 3,000
Feet
1225
Proposed Rates
(Election not required)
District Zone Tract/Parcel
Map
Parcel
Count
FY 2024/25
Per Lot
ASMT
FY 2025/26
Per Lot
ASMT
FY2024/25 &
FY2025/26
Percentage
Difference
75-1 8848 32 $51.27 $51.27 0%
75-2 9013 41 $94.82 $94.82 0%
76-1 9177 38 $140.67 $147.70 5%
76-2 8905, 8992, 9089 114 $58.47 $58.47 0%
83-2 A 12334 50 $29.25 $29.25 0%
83-2 B 11586 41 $27.03 $27.03 0%
83-2 C 12265,66,67,68,69 240 $18.49 $18.49 0%
83-2 D 10708 43 $19.14 $19.14 0%
83-2 1 12930 83 $58.77 $58.77 0%
83-2 2 13190 83 $76.62 $76.62 0%
83-2 3 12640 75 $19.00 $19.00 0%
83-2 4 12951 21 $17.29 $17.29 0%
83-2 5 11757 21 $16.23 $16.23 0%
83-2 6 12536 & 7 43 $34.77 $34.77 0%
83-2 7 13330 45 $27.10 $27.10 0%
83-2 8 11111 19 $42.67 $42.67 0%
83-2 9 12950 19 $42.67 $42.67 0%
83-2 11 13056 96 $43.85 $43.85 0%
83-2 12 12538 14 $53.22 $53.22 0%
83-2 13 12539 31 $23.05 $23.05 0%
83-2 14 12584 95 $45.91 $45.91 0%
83-2 15 13194 44 $66.91 $66.91 0%
83-2 16 12585 54 $18.27 $19.18 5%
83-2 17 13119 34 $47.76 $47.76 0%
83-2 18 13795 19 $48.05 $48.05 0%
83-2 19 13054 26 $43.21 $43.21 0%
83-2 20 Various 1227 $175.23 $175.23 0%
83-2 22 13247 18 $21.56 $22.64 5%
83-2 24 13429 20 $102.82 $102.82 0%
83-2 25 11164 23 $41.68 $41.68 0%
83-2 26 12599 1 $53.89 $53.89 0%
83-2 27 11471 14 $16.66 $16.66 0%
83-2 28 11862 1 $240.86 $240.86 0%
83-2 29 8180 7 $67.30 $67.30 0%

CITY OF CHINO

LANDSCAPE AND LIGHTING DISTRICTS

COMPARISON OF ANNUAL ASSESSMENT RATES
EXHIBIT 1
1226
Proposed Rates
(Election not required)
District Zone Tract/Parcel
Map
Parcel
Count
FY 2024/25
Per Lot
ASMT
FY 2025/26
Per Lot
ASMT
FY2024/25 &
FY2025/26
Percentage
Difference
83-2 30 12111 8 $55.76 $55.76 0%
83-2 31 12056 2 $116.91 $122.76 5%
83-2 32 10396 3 $125.75 $125.75 0%
83-2 33 10114 1 $642.15 $642.15 0%
83-2 34 12136 4 $105.47 $105.47 0%
83-2 36 12328 2 $136.86 $136.86 0%
83-2 37 11535 5 $97.00 $97.00 0%
83-2 38 12615 1 $378.20 $378.20 0%
83-2 39 13978 65 $40.39 $40.39 0%
83-2 41 14083 128 $67.83 $67.83 0%
83-2 42 11670 2 $90.98 $95.53 5%
83-2 43 12776 2 $62.33 $65.45 5%
83-2 45 11040 6 $64.95 $68.20 5%
83-2 46 12498 4 $294.63 $294.63 0%
83-2 48 13754 10 $26.93 $28.28 5%
83-2 49 558 1 $233.68 $233.68 0%
83-2 50 12502 15 $31.20 $32.76 5%
83-2 51 9491 3 $51.96 $54.56 5%
83-2 52 11589 3 $125.75 $125.75 0%
83-2 53 13219 21 $21.21 $21.21 0%
83-2 54 14317 15 $26.97 $28.32 5%
83-2 55 685 1 $77.94 $81.84 5%
83-2 57 11728 15 $52.45 $55.07 5%
83-2 59 12032-1 7 $47.25 $47.25 0%
83-2 61 13314 3 $153.29 $153.29 0%
83-2 62 11807 3 $100.34 $105.36 5%
83-2 63 607 1 $212.83 $223.47 5%
83-2 64 613 4 $363.96 $382.16 5%
83-2 65 627 1 $98.01 $102.91 5%
83-2 67 14236-1 6 $114.24 $119.95 5%
83-2 69 14373 8 $154.33 $162.05 5%
83-2 70 13416 12 $13.58 $14.26 5%
83-2 74 13697 49 $285.31 $299.58 5%
83-2 76 669 1 $200.95 $200.95 0%
83-2 78 13684 2 $62.87 $62.87 0%
83-2 79 14017 16 $12.56 $12.56 0%
83-2 80 10494/13280 34 $420.30 $420.30 0%
83-2 82 12715 38 $102.66 $105.31 3%
EXHIBIT 1
1227
Proposed Rates
(Election not required)
District Zone Tract/Parcel
Map
Parcel
Count
FY 2024/25
Per Lot
ASMT
FY 2025/26
Per Lot
ASMT
FY2024/25 &
FY2025/26
Percentage
Difference
83-2 86 204R 2 $123.63 $123.63 0%
83-2 87 13846 2 $314.26 $314.26 0%
83-2 88 12032 & 2 8 $18.29 $18.29 0%
83-2 89 684 1 $258.17 $258.17 0%
83-2 90 11804 3 $165.68 $165.68 0%
83-2 91 14836 1 $206.85 $206.85 0%
83-2 93 739 5 $61.85 $61.85 0%
83-2 94 14889 2 $34.54 $34.54 0%
83-2 95 96-4 8 $67.31 $70.68 5%
83-2 96 14896 3 $108.73 $108.73 0%
83-2 97 728 2 $105.71 $105.71 0%
83-2 98 15687, 1 & 2 83 $76.27 $76.27 0%
83-2 99 14980 2 $103.91 $103.91 0%
83-2 100 15071 6 $129.97 $129.97 0%
83-2 101 731 1 $61.96 $61.96 0%
83-2 102 15687 & 3 88 $123.24 $129.40 5%
83-2 103 15787 14 $332.60 $332.60 0%
83-2 104 96-12 1 $154.72 $154.72 0%
83-2 105 14882 5 $30.94 $30.94 0%
83-2 106 15180 1 $82.17 $82.17 0%
83-2 107 97-12 1 $102.16 $107.27 5%
83-2 108 14990 3 $2,430.12 $2,430.12 0%
83-2 109 14963 6 $238.62 $238.62 0%
83-2 110 15241 4 $13.37 $14.04 5%
83-2 111 15199 3 $143.28 $143.28 0%
83-2 112 15919-1 61 $199.82 $199.82 0%
83-2 113 15919 61 $229.24 $229.24 0%
83-2 114 14387 64 $304.11 $304.11 0%
83-2 115 15904 38 $113.60 $113.60 0%
83-2 117 15274 24 $82.01 $82.89 1%
83-2 118 99-04 1 $154.72 $154.72 0%
83-2 119 15324 10 $7.72 $8.11 5%
83-2 120 694 2 $122.12 $128.23 5%
83-2 121 98-26 1 $236.57 $248.40 5%
83-2 122 15305 5 $282.87 $289.32 2%
83-2 123 15285 1 $61.09 $64.14 5%
83-2 124 99-03 2 $36.37 $38.19 5%
83-2 125 98-14 3 $44.45 $46.67 5%
EXHIBIT 1
1228
Proposed Rates
(Election not required)
District Zone Tract/Parcel
Map
Parcel
Count
FY 2024/25
Per Lot
ASMT
FY 2025/26
Per Lot
ASMT
FY2024/25 &
FY2025/26
Percentage
Difference
83-2 126 15441 3 $75.49 $75.49 0%
83-2 127 14905 12 $29.10 $29.10 0%
83-2 128 16056 147 $34.99 $34.99 0%
83-2 129 15381 15 $25.79 $25.79 0%
83-2 130 15983 65 $413.74 $413.74 0%
83-2 131 14812 19 $35.26 $37.02 5%
83-2 132 15585 3 $341.02 $341.02 0%
83-2 133 15500 3 $34.05 $35.75 5%
TOTAL PROPOSED ASSESSMENT FOR FISCAL YEAR 25-26: $462,532.09 $464,740.39 EXHIBIT 1
1229
Proposed Rates
(Election not required)
District Zone
Tract/Parcel
Map
Parcel
Count
FY 2024/25
Per Lot
ASMT
FY 2025/26
Per Lot
ASMT
2002-1 1 16140 82 $90.43 $93.09
2002-1 2 15238-1 6 $619.34 $637.52
2002-1 3 16246 121 $117.51 $120.96
2002-1 4 16154 19 $251.51 $258.90
2002-1 5 15681 15 $15.50 $15.95
2002-1 6 16196 19 $127.73 $131.48
2002-1 7 16336 19 $38.37 $39.49
2002-1 8 15845 4 $773.92 $796.65
2002-1 9 16017 23 $839.52 $864.18
2002-1 10 15808 11 $89.35 $91.98
2002-1 11 2002-08 2 $1,065.47 $1,096.75
2002-1 12 16245 1&2 238 $296.92 $305.63
2002-1 13 15957 17 $40.59 $41.79
2002-1 14 15759 6 $53.65 $55.22
2002-1 15 16143 8 $129.78 $133.59
2002-1 16 16343 11 $130.93 $134.77
2002-1 17 16354 18 $671.34 $691.05
2002-1 18 16248 308 $44.02 $45.31
2002-1 19 16157 1 $2,886.54 $2,971.29
2002-1 20 15980 14 $35.11 $36.14
2002-1 21 16212 2 $180.11 $185.39
2002-1 22 16030 15 $60.30 $62.07
2002-1 23 16069 19 $22.63 $23.30
2002-1 24 16366 14 $68.31 $70.31
2002-1 26 SA 2003-01 1 $55.94 $57.58
2002-1 27 16436 17 $219.32 $225.76
2002-1 28 16233 9 $101.91 $104.91
2002-1 29 16451 22 $97.05 $99.90

CITY OF CHINO

LANDSCAPE AND LIGHTING DISTRICTS

COMPARISON OF ANNUAL ASSESSMENT RATES

ASSESSMENT DISTRICT
EXHIBIT 2
1230
Proposed Rates
(Election not required)
District Zone
Tract/Parcel
Map
Parcel
Count
FY 2024/25
Per Lot
ASMT
FY 2025/26
Per Lot
ASMT
2002-1 30 16122 4 $172.26 $177.31
2002-1 31 16364 10 $61.43 $63.24
2002-1 32 16381 17 $127.18 $130.91
2002-1 33 SA 2003-12 1 $617.32 $635.44
2002-1 34 SA 2002-23 1 $1,712.40 $1,762.68
2002-1 35 15959 3 $506.37 $521.24
2002-1 37 16383 11 $159.53 $164.21
2002-1 38 16547 10 $54.43 $56.03
2002-1 39 SA 2003-10 3 $729.14 $750.55
2002-1 40 16931 11 $119.51 $123.02
2002-1 41 SA 2005-10 1 $803.82 $827.42
2002-1 42 16974 42 $23.65 $24.34
2002-1 43 16956 7 $163.52 $168.32
2002-1 44 17249 31 $35.33 $36.37
2002-1 45 16381-1 16 $187.47 $192.98
2002-1 48 17469 8 $170.99 $176.01
2002-1 49 17476 4 $99.94 $102.87
2002-1 50 17819 8 $159.33 $164.01
2002-1 51 17798 17 $14.68 $15.11
2002-1 52 SA 2006-10 2 $460.09 $473.60
2002-1 53 SA 2004-22 1 $357.08 $367.56
2002-1 54 AA 2004-40 1 $322.57 $332.04
2002-1 55 SA 2005-36 1 $833.47 $857.94
2002-1 56 17592 11 $229.27 $236.00
2002-1 58 PL 10-0544 1 $537.68 $553.47
2002-1 59 PL 08-0160 2 $381.55 $392.75
2002-1 60 SA 2007-10 1 $420.43 $432.78
2002-1 61 SA 2001-16 1 $2,892.64 $2,977.58
2002-1 62 19419 3 $739.86 $761.58
2002-1 63 18880 39 $14.27 $14.69
2002-1 65 19323 3 $273.73 $281.77
EXHIBIT 2
1231
Proposed Rates
(Election not required)
District Zone
Tract/Parcel
Map
Parcel
Count
FY 2024/25
Per Lot
ASMT
FY 2025/26
Per Lot
ASMT
2002-1 66 18957 84 $61.66 $63.47
2002-1 67 18971-1 53 $71.89 $74.00
2002-1 68 18901 94 $13.31 $13.70
2002-1 69 18956 59 $15.89 $16.36
2002-2 71 19978 23 $15.08 $15.52
2002-3 72 PL 15-1270 1 $322.47 $331.94
2002-4 75 18972 147 $12.97 $13.35
2002-5 77 18923 122 $15.52 $15.98
2002-6 78 PL 17-0118 1 $614.78 $632.83
2002-7 79 SA 17-0059 1 $345.19 $355.33
2002-8 80 18924 94 $21.56 $22.20
2002-9 82 SA 16-0671 1 $760.36 $782.68
2002-10 83 PL 16-0772 1 $829.94 $854.31
2002-11 84 PL 13-0629 1 $208.35 $214.47
2002-12 85 20058 2 $155.21 $159.77
TOTAL PROPOSED ASSESSMENT FOR FISCAL YEAR 25-26: $235,778.78 EXHIBIT 2
1232

MEMORANDUM

CITY OF CHINO

FINANCE DEPARTMENT
CITY COUNCIL MEETING DATE: JULY 15, 2025
TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE

SUBJECT
..titl e
Formation of Improvement Area 12 in Community Facilities District 2003-3. ..end

RECOMMENDATION
..recommendation
1) Conduct a Public Hearing regarding the formation of Improvement Area 12 in Community Facilities District 2003-3; 2) accept tax consultant’s report; 3) adopt Resolution No. 2025-043 establishing Improvement Area 12 of CFD No. 2003-3 authorizing the levy of special taxes and calling an election; 4) adopt Resolution No. 2025-044, determining the necessity to incur bonded indebtedness; 5) conduct a special election with the property owners; 6) adopt Resolution No. 2025-045, declaring results of the special election and directing recording of the special tax lien; 7) approve the introduction of Ordinance No. 2025-005, levying a special tax, to be read by number and title and waive further reading of the ordinance; and 8) authorize the City Manager to execute all necessary documents on behalf of the City. ..body

FISCAL IMPACT
The City will receive City Services Tax revenue of approximately $292,897 per year upon build out of Improvement Area 12. This revenue is intended to offset the cost of providing City services to the homes within CFD 2003-3.

Transfer In: Transfer Out:
1233
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: FORMATION OF IMPROVEMENT AREA 12 IN COMMUNITY FACILITIES DISTRICT 2003-3.

PAGE: 2

BACKGROUND
Lewis Operating Corporation (Lewis) is the primary land developer in The Preserve. Lewis is currently developing their land with residential, commercial and community facilities. As part of the development of The Preserve, the City of Chino is requiring Lewis to build the necessary public infrastructure to serve the residents and businesses of the new project area. In order to help Lewis finance the cost of the required infrastructure improvements, the City has formed Community Facilities District (CFD) No. 2003-3.

CFD No. 2003-03 was formed in 2004 and was designed to utilize Improvement Areas to issue bonds as The Preserve developed over time to finance certain public facilities, and to pay for necessary ongoing municipal services authorized by the Mello-Roos Act and the formation documents with respect to CFD No. 2003-3. To date, ten Improvement Areas have been established. The public improvements for the Lewis project have consisted of backbone infrastructure such as sewer, water and gas lines, storm drain connections, streets, curb and gutters, streetlight and traffic signal improvements, landscaped medians, fire station, joint use community center and other required facilities. Authorized municipal services payable from the improvement areas include maintenance of parks, parkways, and open space; flood and storm protection; operation of storm drainage systems; and public safety services.

Lewis is moving forward on additional housing developments in The Preserve. Lewis has approached the City and wishes to establish Improvement Area 12 in CFD No. 2003-3.

Improvement Area 12 will be dcomprised of four separate zones for taxing purposes (see attached map).

On June 3, 2025, City Council adopted Resolution No. 2025-022, declaring the City of Chino’s intention to annex property into Community Facilities District No. 2003-3, and to Establish Improvement Area 12 in CFD No. 2003-3, and to authorize the Levy of Special Taxes. In addition, the City Council adopted Resolution No 2025-023, declaring the City of Chino’s Intention to Incur Bonded Indebtedness for the proposed Improvement Area 12 of the Community Facilities District No. 2003-3 and established July 15, 2025, as the Public Hearing date. A Notice of Public Hearing was published in the local paper on July 5, 2025. Additionally, the full notice was mailed to all the owners of the subject property prior to the Public Hearing, July 15, 2025.

ISSUES/ANALYSIS
The Mello-Roos Community Facilities Act of 1982 (“the Act”), Section 55318 of the Government Code, establishes the specific proceedings for creating Improvement Areas in a Community Facilities District. These proceedings require the City Council to conduct a public hearing to hear testimony of all interested persons, for or against the establishment of the Improvement Area, the extent of the Improvement Area, and the furnishing of specific types of public facilities or services. At the conclusion of the hearing, the legislative body may determine to proceed with establishing the Improvement Area.

By adopting Resolution No. 2025-022, pursuant to Section 53321.5 of the Act, the Council ordered the responsible officers for the proposed Improvement area to study said improvement area and prepare a report for the Council. The Special Tax Consultant, Webb Municipal 1234
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: FORMATION OF IMPROVEMENT AREA 12 IN COMMUNITY FACILITIES DISTRICT 2003-3.

PAGE: 3
Finance, has prepared and submitted this report to the City Council on behalf of the officers for City review. The report contains a brief description of the public facilities and services by type, their estimated cost, establishes the rates and methods of apportionment of the special taxes to be levied upon the parcels of taxable property required to fund the acquisition and/or construction of said public facilities and the provision of said services, as well as the amounts and costs associated with the issuance of bonds to finance acquisition and/or construction of said facilities.

After the legislative body determines to establish the Improvement Area, it shall adopt a resolution authorizing the formation of the Improvement Area and the levy of a special tax within the Improvement Area and calling for a special election within the Improvement Area, and it may immediately hold the special election. An official ballot, including a waiver of the time limit pertaining to the conduct of the election, and any requirement for notice of analysis and arguments with respect to the ballot measure, were provided to the property owner(s) prior to the July 15, 2025, City Council meeting. The City Clerk must also concur with the shortening of various time periods applicable to the said landowner election.

The City Clerk shall then canvass the returns of the election and total the number of ballots cast for and against the measure. After the canvass of returns of any election, pursuant to Section 53326, the legislative body may levy any special tax as specified in the resolution of formation in the territory of the Improvement Area, if two-thirds of the votes cast are in favor of levying that tax. The legislative body shall then approve the introduction of an ordinance levying a special tax on the Improvement Area.

At this time, it is estimated there will be approximately $40,000,000 in bonds sold. Staff is not moving forward with the remaining documents required to sell the bonds until development in the Improvement Area is sufficient to justify the bond issuance. When development is sufficient to justify the bond issuance, the City will then process the documents necessary to sell bonds.

These documents will include the Resolution approving the Preliminary Official Statement, Fiscal Agent Agreement, Bond Purchase Agreement and District Continuing Disclosure Agreement. These documents will be scheduled for consideration at a future City Council meeting.

Attachments: Resolution No. 2025-043
Resolution No. 2025-044
Resolution No. 2025-045
Ordinance No. 2025-005
Tax Consultant’s Report
Boundary Map
1235
RESOLUTION NO. 2025-043

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, ESTABLISHING IMPROVEMENT
AREA NO. 12 OF COMMUNITY FACILITIES DISTRICT NO.
2003-3 OF THE CITY OF CHINO, AUTHORIZING THE

LEVY OF SPECIAL TAXES AND CALLING AN ELECTION

THEREIN
WHEREAS, the City Council (the “City Council”) of the City of Chino, California (the “City”) has heretofore adopted Resolution No. 2025-022 (the “Resolution of Intention”) stating its intention to form Improvement Area No. 12 (the “Improvement Area”) of Community Facilities District No. 2003-3 of the City of Chino (the “Community Facilities District”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, a copy of the Resolution of Intention setting forth a description of the proposed boundaries of the Improvement Area, the public facilities, services and the incidental expenses to be financed by the Improvement Area (the “Facilities,” “Services” and “Incidental Expenses,” respectively) is on file with the City Clerk; and, except to the extent amended by this resolution, the Resolution of Intention is incorporated herein by reference; and WHEREAS, a combined notice of a public hearing to be held on July 15, 2025 was published and mailed to all landowners of the land proposed to be included within the Improvement Area; and
WHEREAS, on July 15, 2025, the City Council opened the public hearing (the “Hearing”) as required by law; and
WHEREAS, at the Hearing there was filed with this City Council a report containing a description of the Facilities and Services necessary to meet the needs of the Improvement Area and an estimate of the cost of such Facilities and Services as required by Section 53321.5 of the Act (the “Community Facilities District Report”); and WHEREAS, at the Hearing all persons desiring to be heard on all matters pertaining to the proposed formation of the Improvement Area and the levy of the special taxes and the issuance of bonded indebtedness were heard, and a full and fair hearing was held; and WHEREAS, at the Hearing, evidence was presented to the City Council on the matters before it, and the proposed formation of the Improvement Area and the levy of special taxes was not precluded by a majority protest of the type described in Section 53324 of the Act, and this City Council at the conclusion of the hearing is fully advised as to all matters relating to the formation of the Improvement Area, the levy of the special taxes and the issuance of bonded indebtedness; and
WHEREAS, the City Council has determined that there have been no registered voters residing in the proposed boundaries of the Improvement Area for the period of 90 days prior to the Hearing and that the qualified electors in the Improvement Area are the landowners within the Improvement Area; and
1236
RESOLUTION 2025-043

Page 2 of 7 ends

2 WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to proceed with the establishment of the Improvement Area and with the calling of an election within the boundaries of the Improvement Area to authorize (i) the levy of special taxes within the Improvement Area pursuant to the rate and method of apportionment of the special tax attached as Exhibit C to the Resolution of Intention (the “Rate and Method”), (ii) the issuance of bonds to finance the Facilities and Incidental Expenses, and (iii) the establishment of an additional appropriations limit for the Community Facilities District on behalf of the Improvement Area;

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

Section 1. Each of the above recitals is true and correct.

Section 2. An improvement area within the Community Facilities District to be designated “Improvement Area No. 12 of Community Facilities District No. 2003-3 of the City of Chino, County of San Bernardino, State of California” is hereby established pursuant to the Act.

The City Council hereby finds and determines that all prior proceedings taken with respect to the establishment of the Community Facilities District and the Improvement Area were valid and in conformity with the requirements of law, including the Act. This finding is made in accordance with the provisions of Section 53325.1(b) of the Act.

Section 3. The boundaries of the Improvement Area are established as shown on the map designated “Proposed Boundary Map Community Facilities District No. 2003-3 Improvement Area No. 12 City of Chino, County of San Bernardino, State of California”, which map is on file in the office of the City Clerk and was recorded pursuant to Sections 3111 and 3113 of the Streets and Highways Code in the County of San Bernardino Book of Boundary Maps in the County Recorder’s Office in Book No. 92 at page 47 as Document No. 2025- 0134363 on June 11, 2025.

Section 4. The types of Facilities, Services and Incidental Expenses authorized to be provided for the Improvement Area are those set forth in the Resolution of Intention. The estimated cost of the Facilities, Services and Incidental Expenses to be financed is set forth in the Community Facilities District Report, which estimates may change as the Facilities are designed and bid for construction and acquisition.

The City of Chino is authorized by the Act to contribute revenue to, or to construct or acquire the Facilities or provide Services, all in accordance with the Act. The City Council finds that the proposed Facilities and Services are necessary to meet the increased demand that will be placed upon public infrastructure and City as a result of new development within the Improvement Area.

Section 5. The City Council hereby adopts the Rate and Method as the applicable rate and method of apportionment for the Improvement Area. Except where funds are otherwise available, it is the intention of the City Council, subject to the approval of the eligible voters within the Improvement Area, to levy the proposed Special Tax A (as defined in the Rate and Method) in the Improvement Area at the rates set forth in the Rate and Method on all non-exempt property within the Improvement Area sufficient to pay (i) the Facilities and the principal and interest and other periodic costs on the bonds proposed to be issued by the Community Facilities District on behalf of the Improvement Area to finance the Facilities and Incidental Expenses, including the establishment and replenishment of reserve funds, any 1237
RESOLUTION 2025-043

Page 3 of 7 ends

3 remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash) and other expenses of the type permitted by Section 53345.3 of the Act; and (ii) the Incidental Expenses.

Except where funds are otherwise available, it is also the intention of the City Council, subject to the approval of the eligible voters within the Improvement Area, to levy the proposed Special Tax B (as defined in the Rate and Method, and, together with Special Tax A, the “Special Tax”) in the Improvement Area at the rates set forth in the Rate and Method on all non-exempt property within the Improvement Area sufficient to pay (i) the Services; and (ii) the Incidental Expenses.

The Community Facilities District expects to incur, and in certain cases has already incurred, Incidental Expenses in connection with the creation of the Improvement Area, providing the Services, the issuance of bonds, the levying and collecting of the Special Tax, the completion and inspection of the Facilities and the annual administration of the bonds and the Community Facilities District. The Rate and Method is attached as Exhibit C to the Resolution of Intention, and the City Council hereby finds that the Rate and Method contains sufficient detail to allow each landowner within the Improvement Area to estimate the maximum amount that may be levied against each parcel. As described in greater detail in the Community Facilities District Report, which is incorporated by reference herein, the Special Tax is based on the expected demand that each parcel of real property within the Improvement Area will place on the Facilities and Services and, accordingly, is hereby determined to be reasonable. The Special Tax shall be levied on each assessor’s parcel pursuant to the Rate and Method, but Special Tax A shall not be levied after Fiscal Year 2069-70. The Special Tax is apportioned to each parcel on the foregoing bases pursuant to Section 53325.3 of the Act and the Special Tax is not a tax on or a tax based upon the ownership of real property.

The City’s Director of Finance or Acting Director of Finance will be responsible for preparing annually, or authorizing a designee to prepare, a current roll of Special Tax levy obligations by assessor’s parcel number and will be responsible for estimating future Special Tax levies pursuant to Section 53340.2 of the Act.

Section 6. In the event that a portion of the property within the Improvement Area shall become for any reason exempt, wholly or partially, from the levy of Special Tax specified in the Rate and Method, the City Council shall, on behalf of the Improvement Area, increase the levy to the extent necessary and permitted by law and these proceedings upon the remaining property within the Improvement Area which is not delinquent or exempt in order to yield the required debt service payments on any outstanding bonds of the Improvement Area or to prevent the Community Facilities District from defaulting on any other obligations or liabilities of the Improvement Area; provided, however, that under no circumstances shall the Special Tax in the Improvement Area be increased in any fiscal year as a consequence of delinquency or default by the owner of any other parcel or parcels within the Improvement Area by more than ten percent (10%) above the amount that would have been levied in that fiscal year had there never been any such delinquencies or defaults. The amount of the Special Tax will be set in accordance with the Rate and Method.

Section 7. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code, a continuing lien to secure each levy of the Special Tax shall attach to all non-exempt real property in the Improvement Area; and this lien shall continue in force and effect until (i) in the case of Special Tax A, the Special Tax A obligation is prepaid and permanently satisfied and the lien canceled in accordance with law, or 1238
RESOLUTION 2025-043

Page 4 of 7 ends

4 (ii) for both Special Tax A and Special Tax B, until collection of the applicable Special Tax by the Community Facilities District on behalf of the Improvement Area ceases.

Section 8. Consistent with Section 53325.6 of the Act, the City Council finds and determines that the land within the Improvement Area, if any, devoted primarily to agricultural, timber or livestock uses and being used for the commercial production of agricultural, timber or livestock products is contiguous to other land within the Improvement Area and will be benefited by the Improvements proposed to be provided within the Improvement Area.

Section 9. It is hereby further determined that there is no ad valorem property tax currently being levied on property within the proposed Improvement Area for the exclusive purpose of paying the principal of or interest on bonds or other indebtedness incurred to finance the construction of capital facilities which provide the same services to the territory of the Improvement Area as are proposed to be provided by the Facilities or Services to be financed by the Improvement Area.

Section 10. Written protests against the establishment of the Improvement Area have not been filed by one-half or more of the registered voters within the boundaries of the Improvement Area or by the property owners of one-half or more of the area of land within the boundaries of the Improvement Area. The City Council hereby finds that the proposed Special Tax has not been precluded by a majority protest pursuant to Section 53324 of the Act.

Section 11. An election is hereby called for the Improvement Area on the propositions of levying the Special Tax on the property within the Improvement Area and establishing an additional appropriations limit for the Community Facilities District on behalf of the Improvement Area pursuant to Section 53325.7 of the Act and shall be consolidated with the election on the proposition of incurring bonded indebtedness for by the Community Facilities District on behalf of the Improvement Area, pursuant to Section 53351 of the Act. The propositions to be placed on the ballot for the Improvement Area are attached hereto as Exhibit A.

Section 12. The date of the election within the Improvement Area shall be July 15, 2025, or such later date as is consented to by the City Clerk and the landowners within the Improvement Area. The City Clerk shall conduct the election. Except as otherwise provided by the Act, the election shall be conducted by personally delivered or mailed ballot and, except as otherwise provided by the Act, the election shall be conducted in accordance with the provisions of law regulating elections of the City insofar as such provisions are determined by the City Clerk to be applicable.

It is hereby found that there are no registered voters within the territory of the Improvement Area, and, pursuant to Section 53326 of the Act, each landowner who is the owner of record on the date hereof, or the authorized representative thereof, shall have one vote for each acre or portion thereof that he, she or it owns within the Improvement Area. The voters shall be the landowners of record within the Improvement Area as of July 15, 2025.

Section 13. The preparation of the Community Facilities District Report is hereby ratified. The Community Facilities District Report, as submitted, is hereby approved and made a part of the record of the public hearing regarding the formation of the Improvement Area, and is ordered to be kept on file with the transcript of these proceedings and open for public inspection.

Section 14. This Resolution shall be effective upon its adoption. 1239
RESOLUTION 2025-043

Page 5 of 7 ends

5 PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July 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
1240
RESOLUTION 2025-043

Page 6 of 7 ends

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

CITY OF CHINO )
I, NATALIE GONZAGA, City Clerk of the City of Chino, do hereby certify that the foregoing Resolution was duly adopted by the City Council of the City of Chino at a regular meeting held on the 15th day of July 2025, by the following votes:

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

NATALIE GONZAGA, CITY CLERK
Attachments: Exhibit A
1241
A-1

EXHIBIT A

SAMPLE BALLOT
IMPROVEMENT AREA NO. 12
OF COMMUNITY FACILITIES DISTRICT NO. 2003-3

OF THE CITY OF CHINO

SPECIAL TAX AND SPECIAL BOND ELECTION
July 15, 2025
This ballot represents ___ votes.

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

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

PROPOSITION A: Shall Improvement Area No. 12 of Community Facilities District No. 2003-3 of the City of Chino (the “Improvement Area”) incur an indebtedness and issue bonds for the Improvement Area in the maximum principal amount of $40,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law, to finance the Facilities and the Incidental Expenses described in Resolution No. 2025-022 of the City Council of the City of Chino (the “Resolution of Intention”)?
YES______
NO_______
PROPOSITION B: Shall Special Tax A and Special Tax B with a rate and method of apportionment attached as Exhibit C to the Resolution of Intention, at rates ranging from $6,940 to $9,300 per unit and $128,357 per acre until June 30, 2070, in the case of Special Tax A, and at rates ranging from $873 to $1,198 per unit and $16,211 per acre in perpetuity as long as the Services are provided, in the case of Special Tax B, be levied to pay for (i) in the case of Special Tax A, the Facilities, Incidental Expenses and the principal of and interest on bonds issued to finance the Facilities and Incidental Expenses and the other purposes described in resolution of the City Council stating its intention to form the Improvement Area (the “Resolution of Intention”), and (ii) in the case of Special Tax B, the Services, Incidental Expenses and the other purposes described in the Resolution of Intention?
YES______
NO_______
PROPOSITION C: For each year commencing with Fiscal Year 2025-26, shall the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIIIB of the California Constitution, for the Community Facilities District on behalf of the Improvement Area be increased by an amount equal to $40,000,000?
YES______
NO_______
1242
1 RESOLUTION NO. 2025-044

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 (the “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 “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 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 an 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 method 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 bonded 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. 1243
RESOLUTION 2025-044

Page 2 of 3 ends

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 be 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 combined 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 Chino Senior Center, 13170 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 15th day of July 2025.

Page 3 of 3 ends

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

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

NATALIE GONZAGA, CITY CLERK
1245
RESOLUTION NO. 2025-045

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, ACTING IN ITS CAPACITY AS

THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 2003-3 OF THE CITY OF CHINO ON
BEHALF OF IMPROVEMENT AREA NO. 12 THEREIN,
CERTIFYING THE RESULTS OF THE JULY 15, 2025

SPECIAL TAX AND BOND ELECTIONS
WHEREAS, the City Council (the “City Council”) of the City of Chino, California (the “City”), acting as the legislative body of Community Facilities District No. 2003-3 of the City of Chino (the “Community Facilities District”), called and duly held elections on July 15, 2025 within the boundaries of Improvement Area No. 12 of the Community Facilities District (the “Improvement Area”) pursuant to Resolution Nos. 2025-022 and 2025-023 for the purpose of presenting to the qualified electors within the Improvement Area the propositions which are attached hereto as Exhibit A; and
WHEREAS, there has been presented to the City Council a certificate of the City Clerk canvassing the results of the election, a copy of which is attached hereto as Exhibit B;

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

Section 1. Each of the above recitals is true and correct and is adopted by the legislative body of the Community Facilities District on behalf of the Improvement Area.

Section 2. Propositions A, B and C presented to the qualified electors of the Improvement Area on July 15, 2025 were approved by more than two-thirds of the votes cast at the election held for the Improvement Area, and each of Propositions A, B and C has carried.

The City Council is hereby authorized to levy on the land within the Improvement Area the special tax described in Proposition B for the purposes described therein and to take the necessary steps to levy the special tax authorized by Proposition B and to issue bonds in an amount not to exceed $40,000,000 specified in Proposition A.

Section 3. The City Clerk is hereby directed to record in the Office of the County Recorder within fifteen days of the date hereof a notice of special tax lien which Bond Counsel to the Community Facilities District shall prepare in the form required by Streets and Highways Code Section 3114.5.

Section 4. This Resolution shall be effective upon its adoption. 1246
RESOLUTION 2025-045

Page 2 of 5 ends

2 PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July 2025.

Page 3 of 5 ends

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

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

NATALIE GONZAGA, CITY CLERK
Attachments: Exhibits A and B
1248
A-1

EXHIBIT A

SAMPLE BALLOT
IMPROVEMENT AREA NO. 12
OF COMMUNITY FACILITIES DISTRICT NO. 2003-3

OF THE CITY OF CHINO

SPECIAL TAX AND SPECIAL BOND ELECTION
July 15, 2025
This ballot represents ___ votes.

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

EXHIBIT B

CERTIFICATE OF THE CITY CLERK

AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS I, Natalie Gonzaga, City Clerk of City of Chino, do hereby certify that I have examined the returns of the Special Tax and Bond Election for Improvement Area No. 12 of Community Facilities District No. 2003-3 of the City of Chino (the “Improvement Area”). The election was held at the Chino Senior Center, 13170 Central Avenue, Chino, California, on July 15, 2025. I caused to be delivered a ballot to the authorized representative of each qualified elector. _______ (__) ballots were returned.

I further certify that the results of said election and the number of votes cast for and against Propositions A, B and C are as follows:

PROPOSITION A PROPOSITION B PROPOSITION C
YES: YES: YES:

NO: NO: NO:

TOTAL: TOTAL: TOTAL:

Dated this 15th day of July 2025.

Natalie Gonzaga, City Clerk
City of Chino
1250
ORDINANCE NO. 2025-005

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHINO,

CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE
BODY OF COMMUNITY FACILITIES DISTRICT NO. 2003-3 OF THE CITY OF CHINO, ON BEHALF OF IMPROVEMENT AREA NO. 12

THEREIN, AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN
IMPROVEMENT AREA NO. 12 OF THE DISTRICT
WHEREAS, on June 3, 2025, the City Council (the “City Council”) of the City of Chino (the “City”) adopted Resolution No. 2025-022 (the “Resolution of Intention”) declaring its intention to form Improvement Area No. 12 (the “Improvement Area”) of Community Facilities District No. 2003-3 of the City of Chino (the “Community Facilities District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”), and adopted Resolution No. 2025-023 declaring its intention to incur bonded indebtedness of the Improvement Area; and
WHEREAS, on July 15, 2025, after providing all notice required by the Act, the City Council opened a public hearing required by the Act relative to the formation of the Improvement Area, the proposed levy of a special tax within the Improvement Area to provide certain services and finance certain public improvements described in Resolution No. 2025-022 and to secure the payment of any bonded indebtedness of the Improvement Area, and the proposed issuance of up to $40,000,000 of bonded indebtedness; and WHEREAS, at the public hearing, all persons desiring to be heard on all matters pertaining to the formation of the Improvement Area, the proposed levy of the special tax within the Improvement Area to provide for the services and to finance the improvements described in Resolution No. 2025-022 and the proposed issuance of bonded indebtedness of the Community Facilities District on behalf of the Improvement Area were heard and a full and fair hearing was held; and
WHEREAS, on July 15, 2025, following the close of the public hearing, the City Council adopted a resolution establishing the Improvement Area (the “Resolution of Formation”) and a resolution determining the necessity to incur bonded indebtedness of the District (the “Resolution to Incur Bonded Indebtedness”) each of which called a consolidated special election on July 15, 2025 within the Improvement Area on three propositions relating to the levying of a special tax, the incurring of bonded indebtedness and the establishment of an appropriations limit for the Improvement Area; and
WHEREAS, on July 15, 2025, a special election was held within the Improvement Area at which the qualified electors approved by more than a two-thirds vote Propositions A, B and C authorizing the levy of a special tax within the Improvement Area for the purposes described in the Resolution of Formation and the issuance of bonded indebtedness for the Improvement Area as described in the Resolution to Incur Bonded Indebtedness.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO ACTING IN ITS

CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2003-3 OF THE CITY OF CHINO, ORDAINS AS FOLLOWS:
1251
ORDINANCE 2025-005

Page 2 of 4 ends

2 Section 1. The above recitals are all true and correct.

Section 2. By the passage of this Ordinance, the City Council authorizes the levy of Special Tax A and Special Tax B (as defined in the Rate and Method, defined below, and, collectively, the “Special Tax”) within the Improvement Area at the maximum rates and in accordance with the rates and method of apportionment set forth in Exhibit C to the Resolution of Intention, which rate and method of apportionment is incorporated by reference herein (the “Rate and Method”).

Section 3. The Director of Finance of the City is hereby further authorized and directed each fiscal year, on or before August 10 of each year, or such later date as is permitted by law, to determine the specific Special Tax rates and amounts to be levied for the next ensuing fiscal year for each parcel of real property within the Improvement Area pursuant to the Rate and Method. The Special Tax rate to be levied pursuant to the Rate and Method shall not exceed the applicable maximum rates set forth therein, but the Special Tax may be levied at a lower rate.

Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the Special Tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act, the Rate and Method and the boundary map for the Improvement Area. No other properties or entities are exempt from the Special Tax unless the properties or entities are expressly exempted in the Resolution of Formation, or in a resolution of consideration to levy a new special tax or special taxes or to alter the Rate or Method of an existing special tax as provided in Section 53334 of the Act.

Section 5. All of the collections of the Special Tax pursuant to the Rate and Method shall be used as provided for in the Act, the Resolution of Intention and the Resolution of Formation. The Special Tax shall be levied within the Improvement Area only so long as needed for the purposes described in the Resolution of Intention and the Resolution of Formation.

Section 6. The Special Tax levied pursuant to the Rate and Method shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time.

Section 7. As a cumulative remedy, if any amount levied as Special Tax A for payment of the interest or principal of any bonded indebtedness of the Improvement Area, together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds, order that the same be collected by an action brought in the superior court to foreclose the lien of such Special Tax A.

Section 8. This Ordinance relating to the levy of the Special Tax within the Improvement Area shall take effect 30 days following its final passage, and the specific authorization for adoption is pursuant to the provisions of Section 53340 of the Act. 1252
ORDINANCE 2025-005

Page 3 of 4 ends

3 Section 9. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the San Bernardino County Assessor and Treasurer-Tax Collector, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.

ADOPTED, SIGNED AND APPROVED ON THIS 2
nd day of September 2025.

Page 4 of 4 ends

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 Ordinance was duly adopted by the City Council of the City of Chino at a regular meeting held on the 2
nd day of September 2025, by the following votes:

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

NATALIE GONZAGA, CITY CLERK
1254
-
City of Chino
Community Facilities District No. 2003-3
Improvement Area No. 12
Prepared for:

July 2025
Community Facilities District Report
1255
Table of Contents
Sections
Section 1. Introduction_______________________________________________________ 1 Section 2. Description of Facilities/Improvements and Services _______________________ 2 Section 3. Cost Estimate ______________________________________________________ 4 Section 4. Proposed Development______________________________________________ 6 Section 5. Rate and Method of Apportionment____________________________________ 7 Tables
Table 3-1. Cost Estimate ______________________________________________________ 4 Appendices
Appendix A. Rate and Method of Apportionment
Appendix B. Boundary Map
1256

1. Introduction
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 12
1 AGENCY: CITY OF CHINO
PROJECT: COMMUNITY FACILITIES DISTRICT NO. 2003-3
IMPROVEMENT AREA NO. 12
TO: CITY COUNCIL

CITY OF CHINO

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA
Whereas, the City Council of the CITY OF CHINO, SAN BERNARDINO COUNTY, CALIFORNIA (hereinafter referred to as the “City Council”), did, pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”, being chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California, and specifically Section 53321.5 thereof, (the “Act”) expressly ordered the filing of a written Public Report (the “Report”) for a proposed COMMUNITY FACILITIES DISTRICT NO. 2003-3 IMPROVEMENT AREA NO. 12. This Community Facilities District shall be referred to as COMMUNITY FACILITIES DISTRICT NO. 2003-3 IMPROVEMENT AREA NO. 12 of the CITY OF CHINO (hereinafter referred to as the “District” and “CFD No. 2003-3 IA NO. 12”); and, Whereas, on June 3, 2025, the City Council adopted Resolution No. 2025-022 (the “Resolution”), and the Resolution ordering said Report, did direct that said Report generally contain the following:
• A description of the public facilities and services by type proposed to be financed by CFD No. 2003-3 IA No. 12;
• An estimate setting forth costs of providing such facilities and services; • The rate and method of apportionment of the Special Tax in sufficient detail to allow each landowner or resident within the proposed District to estimate the annual amount of payment thereof.

NOW, THEREFORE, the undersigned, authorized representative of WEBB MUNICIPAL FINANCE, LLC, the appointed Special Tax Consultant and responsible officer or person directed to prepare the Report, pursuant to the provisions of the Act, does hereby submit the following data:
1257

2. Description of Facilities/Improvements and Services
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 12
2 Pursuant to Section 53340 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2003-3 IA No. 12 may be used only to pay for the cost of providing public facilities, services, and incidental expenses. As defined by the Act, incidental expenses include, but are not limited to, the annual cost associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the community facilities district.

A general description of the proposed facilities and services for the District is as follows:

Facilities/Improvements
The types of Facilities that are proposed by CFD No. 2003-3 IA No. 12 and financed with the proceeds of Special Taxes and bonds issued by CFD No. 2003-3 IA No. 12 consist of backbone infrastructure needed for new development, such as roadway, bridge, sewer, water, reclaimed water, dry utilities, storm drain, street and parkway landscaping, curb and gutter, medians, median landscaping, traffic signals, entry signage, parks, trails, fire facilities, library facilities and public community facilities, and appurtenances and appurtenant work, and development impact fees that are used by the City to construct infrastructure.

Services
The types of Services that are proposed to be provided by CFD No. 2003-3 and funded with the proceeds of special taxes levied by CFD No. 2003-3 consist of services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, maintenance of parks, parkways and open space, flood and storm protection services the operation of storm drainage systems, and public safety services. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2003-3.

Incidental Expenses
The Incidental Expenses to be paid from bond proceeds and/or Special Taxes include: all costs associated with the creation of CFD No. 2003-3 IA No. 12, the issuance of bonds (which may include, but is not limited to, funding the reserve fund, capitalized interest, underwriter discount, underwriter premium, and cost of issuance), the determination of the amount of Special Taxes to be levied, costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2003-3 IA No. 12, including legal fees, fees of consultants, engineering, planning, designing and the annual administration cost of CFD No. 2003-3 IA No. 12.

The description of the eligible public facilities, services and incidental expenses above are preliminary and general in nature. The final plans and specifications approved by the applicable public agency may show substitutes or modifications in order to accomplish the work or serve the new development and any such substitution or modification shall not constitute a change or modification in the proceedings relating to CFD No. 2003-3 IA No.

12. Based upon the preceding, it is my opinion that the facilities and services being funded are those that are necessary to meet certain increased demands placed upon the City of Chino, as a result of development and/or rehabilitation occurring within the boundaries of the District. 1258

2. Description of Facilities/Improvements and Services
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 12
3 DATED: July 15, 2025 WEBB MUNICIPAL FINANCE, LLC
By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF CHINO

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA
1259

3. Cost Estimate
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 12
4 1. The cost estimate, including Incidental Expenses, to be financed through the issuance of CFD No. 2003-3 IA No. 12 Bonds is estimated to be $28,580,000 based upon current dollars (Fiscal Year 2025-26).

2. For further particulars, reference is made to Table 3-1 on the following pages and incorporated herein by reference.

3. Pursuant to Section 53340 of the Act, the proceeds of any Special Tax levied and collected by CFD No. 2003-3 IA No. 12 may be used only to pay for the cost of providing public facilities, services, and incidental expenses.

As defined by the Act, incidental expenses include, but are not limited to, the annual costs associated with determination of the amount of Special Taxes, collection of Special Taxes, payment of Special Taxes, or costs otherwise incurred in order to carry out the authorized purposes of the Community Facilities District. The incidental expenses associated with the annual administration of CFD No. 2003-3 IA No. 12 are estimated to be $30,000 in the initial Fiscal Year. However, it is anticipated that the incidental expenses will vary due to inflation and other factors that may not be foreseen today, and the actual incidental expenses may exceed these amounts accordingly.

Table 3-1
Cost Estimate (1)
Item Estimated Cost
Park Improvements
Nature Trail South $1,197,786
Van Vliet SCE Corridor Landscape $1,402,104
Urban Park (Market – Legacy) $8,662,000
Urban Park Land $1,044,000
Tr. 16420-4 (Block 9) Arbor Walk $1,500,000
Tr. 16420-5 (Block 3A) Backbone Landscape $1,636,680
Tr. 16420-6 (Block 11) Backbone Landscape $2,130,380
Tr. 16420-8 (Block 8) Backbone Landscape $1,457,000
Tr. 16420-9 (Block 1) Backbone Landscape $299,000
Tr. 16420-9 (Block 1) Public Park $2,500,000
Tr. 16420-9 (Block 1) Public Park Land $450,000
Subtotal Eligible Park Improvements: $22,278,950
Street Improvements
Tr. 16420-5 (Block 3A) Backbone Streets $2,800,416
Tr. 16420-6 (Block 11) Backbone Streets $4,053,792
Tr. 16420-8 (Block 8) Backbone Streets $3,677,000
Tr. 16420-9 (Block 1) Backbone Streets $3,573,646
Block 1 Intract Public Improvements $7,254,689
Subtotal Eligible Street Improvements: $21,359,543
Wet Utility Improvements
Tr. 16420-5 (Block 3A) Backbone Wet Utilities $2,435,138 1260

3. Cost Estimate
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 12
5 Tr. 16420-6 (Block 11) Backbone Wet Utilities $3,206,539 Tr. 16420-8 (Block 8) Backbone Wet Utilities $5,012,000 Tr. 16420-9 (Block 1) Backbone Wet Utilities $5,456,000 Tr. 16420-9 (Block 1) Intract Wet Utilities $5,481,039
Subtotal Eligible Wet Utility Improvements: $21,590,716 Misc. Residential Amenities
Community Core - Misc Residential Amenities (Pine - Market) $1,500,000 Community Core - Misc Residential Amenities Main St- Market to Legacy Park $1,500,000 Subtotal Eligible Mic. Residential Amenities: $3,000,000 City Fees
Law Enforcement $148,549
DIF Administration Fee $1,003,768
Congestion Management Plan Fees $1,236,307
General facilities Fees $44,772
Fire Fees $139,265
Subtotal Eligible City Fees $3,312,636
Grand Total Eligible Improvements $71,541,845
Estimated Bond Issuance: $28,580,000
Estimated Incidentals: ($2,898,376)
Estimated Project Funds Available: $25,681,624
Estimated Unfunded Eligible Improvements: $45,860,221
(1) Cost Estimate is Subject to Review and Approval
DATED: July 15, 2025 WEBB MUNICIPAL FINANCE, LLC
By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF CHINO

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA
1261

4. Proposed Development
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 12
6 Zone 1 is planned to contain approximately 5.25 net taxable acres within Tract Number 16420-6. Zone 1 is planned to be developed into 83 single-family detached units and is generally located east of Main Street and northwest of East Preserve Loop in the City of Chino. The proposed Zone 1 boundaries include a portion of the following Assessor Parcel Numbers: 1057-181-19-0000, 1057-181-20-0000, 1057-181-43-0000, 1057-481-08-0000 and 1057-491-02-0000.

Zone 2 is planned to contain approximately 5.46 net taxable acres within Tract Number 16420-6. Zone 2 is planned to be developed into 62 single-family detached units and is generally located east of Main Street and northwest of East Preserve Loop in the City of Chino. The proposed Zone 2 boundaries include a portion of the following Assessor Parcel Numbers: 1057-181-19-0000, 1057-181-20-0000, 1057-181-43-0000, 1057-481-08-0000 and 1057-491-02-0000.

Zone 3 is planned to contain approximately 6.12 net taxable acres within Tract Number 16420-6. Zone 3 is planned to be developed into 77 single-family detached units and is generally located east of Main Street and northwest of East Preserve Loop in the City of Chino. The proposed Zone 3 boundaries include a portion of the following Assessor Parcel Numbers: 1057-181-19-0000, 1057-181-20-0000, 1057-181-43-0000, 1057-481-08-0000 and 1057-491-02-0000.

Zone 4 is planned to contain approximately 4.46 net taxable acres within Tract Number 16420-6. Zone 4 is planned to be developed into 84 single-family detached units and is generally located east of Main Street and northwest of East Preserve Loop in the City of Chino. The proposed Zone 4 boundaries include a portion of the following Assessor Parcel Numbers: 1057-181-19-0000, 1057-181-20-0000, 1057-181-43-0000, 1057-481-08-0000 and 1057-491-02-0000.

The Boundary Map for CFD No. 2003-3 IA No. 12 is attached hereto as Appendix B (the “Boundary Map”). 1262

5. Rate and Method of Apportionment
City of Chino Community Facilities District Report
CFD 2003-3 Improvement Area No. 12
7 1. The Rate and Method of Apportionment allows each property owner within the proposed District to estimate the annual amount that would be required for payment. The Rate and Method of Apportionment of the Special Tax for the District, established pursuant to these proceedings, is attached hereto as Appendix A (the “Rate and Method of Apportionment”). The Special Tax will be collected in the same manner and at the same time as ad valorem property taxes and subject to the same penalties and provisions; however, the Special Tax may be collected at a different time or in a different manner if necessary for CFD No. 2003-3 IA No. 12 to meet its financial obligations and may covenant to foreclose on delinquent parcels as permitted by the Act.

2. All of the property located within CFD No. 2003-3 IA No. 12, unless exempted by law or by the Special Tax proposed for CFD No. 2003-3 IA No. 12, shall be taxed for the purpose of providing necessary facilities and services to serve the District. The Boundary Map for CFD No. 2003-3 IA No. 12 is attached hereto as Appendix B. Pursuant to Section 53325.3 of the Act, the tax imposed “is a Special Tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property.” The Special Tax may be based on benefit received by property, the cost of making facilities or authorized services available or other reasonable basis as determined by the City Council, although the Special Tax may not be apportioned on an ad valorem basis pursuant to Article XIIIA of the California Constitution. A property owner within the District may choose to prepay in whole or in part the Special Tax A. The available method for so doing is described in Sections G and H of the Rate and Method (“Prepayment of Special Tax A”). Special Tax B may not be prepaid.

For each year that any Bonds are outstanding, the Special Tax shall be levied on all Parcels in accordance with this Rate and Method of Apportionment. If any delinquent Special Taxes remain uncollected prior to or after all Bonds are retired, the Special Tax may be levied to the extent necessary to reimburse the CFD for uncollected Special Taxes and costs associated with the levy of such Special Taxes, but the Special Tax shall not be levied after the 2069-2070 Fiscal Year.

3. For particulars as to the Rate and Method of Apportionment, see the attached and incorporated Appendix A.

It is my opinion that the Rate and Method of Apportionment, described above and set forth in Appendix A, is fair and reasonable.

This Report has been prepared and consolidated by the Special Tax Consultant, Webb Municipal Finance, LLC, and is herewith submitted to the Board pursuant to the applicable provisions of the Mello-Roos Community Facilities Act of 1982.

DATED: July 15, 2025 WEBB MUNICIPAL FINANCE, LLC
By: _______________________________

SPECIAL TAX CONSULTANT FOR

CITY OF CHINO

SAN BERNARDINO COUNTY

STATE OF CALIFORNIA
1263

APPENDIX A
Rate and Method of Apportionment
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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 exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent, and in the manner herein provided.

SECTION A

DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acquisition Agreement” means the Acquisition Agreement dated as of May 18, 2004 by and between the City and Chino Development Corporation, et al, as it may be amended. “Acre” or “Acreage” means the land area of an Assessor's Parcel as shown on an Assessor's Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the land area is not shown on the applicable Final Map, the land area shall be calculated by the City Engineer.
“Act” means the Mello-Roos Community Facilities Act of 1982 as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses” means any ordinary and necessary expenses allocable to the Special Tax A Requirement and to the Special Tax B Requirement which are incurred by the City on behalf of Improvement Area No. 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 delinquencies, the administration of Bonds, the payment of salaries and benefits of any City employee whose duties are directly related to the administration of Improvement Area No. 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, Development Standards” section of the Preserve Specific Plan approved on March 25, 2003. 1265

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“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 County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that number assigned to a lot or parcel of land by the County Assessor for purposes of identification.
“Assigned Annual Special Tax A” means the Special Tax A of that name described in Section D below.
“Backup Annual Special Tax A” means the Special Tax A of that name described in Section E below. “Bonds” means those bonds issued by or on behalf of CFD No. 2003-3 Improvement Area No. 12, or any refunding thereof, to which Special 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.
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"Consumer Price Index" or “CPI” means the index published monthly by the U.S. Department of Labor, Bureau of Labor Statistics for all urban consumers in the Riverside-San Bernardino-Ontario area. In the event this index ceases to be published, the Consumer Price Index shall be another index as determined by the Administrator that is reasonably comparable to the Consumer Price Index for the Riverside-San Bernardino-Ontario.
“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property other than Provisional Undeveloped Property that: (i) are included in a Final Map that was recorded prior to January 1st preceding the Fiscal Year in which the Special Tax A is being levied, and (ii) a building permit was issued on or before March 1st preceding the Fiscal Year in which the Special Tax A or Special Tax B is being levied.
“Exempt Property” means all Assessor’s Parcels designated as being exempt from both Special Tax A and Special Tax B as provided for in Section L.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 4285 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period commencing July 1 of any year and ending the following June 30. “Improvement Area No. 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 levied in any Fiscal Year on such Assessor’s Parcel.
“Maximum Special Tax B” means for each Assessor’s Parcel of Developed Property, the maximum amount of Special Tax B, determined in accordance with Section I that can be levied in any Fiscal Year on such Assessor’s Parcel.
“Multifamily Residential Property” means all Parcels of Developed Property for which a building permit has been issued for the purpose of constructing a building or buildings comprised of attached Units available for rental by the general public, not for sale to an end user, and under common management, as determined by the Administrator.
“Non-Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for any type of non-residential use. “Partial Prepayment Amount” means the amount required to prepay a portion of the Special Tax A obligation for an Assessor’s Parcel, as described in Section H. 1267

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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 Special Tax B, means that the ratio of the Annual Special Tax B levy to the applicable Maximum Special Tax B is equal for all applicable Assessor’s Parcels. In case of Developed Property subject to the apportionment of the Annual Special Tax A under Step Four of Section F, “Proportionately” means that the quotient of (a) Annual Special Tax A less the Assigned Annual Special Tax A divided by (b) the Backup Annual Special Tax A less the Assigned Annual Special Tax A, is equal for all applicable Assessor’s Parcels.
“Provisional Undeveloped Property” means all Assessor’s Parcels of Taxable Property subject to Special Tax A that would otherwise be classified as Exempt Property pursuant to the provisions of Section L, but cannot be classified as Exempt Property because to do so would reduce the Acreage of all Taxable Property within the applicable Zone below the required minimum Acreage set forth in Section L.
“Residential Property” means all Assessor’s Parcels of Developed Property for which a building permit has been issued for purposes of constructing one or more residential dwelling units, which is not Multifamily Residential Property.
“Services” means services permitted under the Act including, without limitation, maintenance of parks, parkways and open space, flood and storm protection services the operation of storm drainage systems, and public safety services. All of the services financed must be provided within the boundaries of or for the benefit of CFD No. 2003-3. “Special Tax A” means any of the special taxes authorized to be levied on Taxable Property within Improvement Area No. 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 establish or replenish any reserve funds established in association with the Bonds, and (v) the collection or accumulation of funds for the acquisition or construction of facilities or payment of fees authorized by CFD No. 2003-3 by the levy on Developed Property of the Assigned Annual Special Tax A, as required by the Acquisition Agreement provided that the inclusion of such amount does not cause an increase in the levy of Special Tax A on Approved Property or Undeveloped Property as set forth in Step Two and Three of Section F, less (vi) any amount available to pay debt service or other periodic costs on the Bonds pursuant to any applicable fiscal agent agreement, or trust agreement. 1268

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“Special Tax B Requirement” means, subject to the Maximum Special Tax B, that amount to be collected in any Fiscal Year to pay for Services as required to meet the needs of CFD No. 2003-3 in both the current Fiscal Year and the next Fiscal Year. The costs of Services to be covered shall be the direct costs for (i) Services, and (ii) Administrative Expenses (apportioned between Special Tax A and Special Tax B); less (iii) a credit for funds available to reduce the Annual Special Tax B levy, if any, as determined by the Administrator. Under no circumstances shall the Special Tax B Requirement include funds for Bonds.
“Taxable Property” means all Assessor’s Parcels within Improvement Area No. 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 Property shall be further classified as Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property. In addition, each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property and Provisional Undeveloped Property shall be classified as being within Zone 1, 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 1269

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shall further be classified as Residential Property, Multifamily Residential Property, or NonResidential 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 Annual Special Tax A or (ii) the Backup Annual Special Tax A.

2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property The Maximum Special Tax A for each Assessor’s Parcel classified as Approved Property, Undeveloped Property, or Provisional Undeveloped Property in any Fiscal Year shall be the Assigned Annual Special Tax A.

SECTION D

ASSIGNED ANNUAL SPECIAL TAX A

1. Developed Property
Each Fiscal Year, each Assessor’s Parcel of Residential Property, Multifamily Residential Property, or Non-Residential Property shall be subject to an Assigned Annual Special Tax A.

The Assigned Annual Special Tax A applicable to an Assessor's Parcel of Developed Property shall be determined using the Tables below.

TABLE 1

ASSIGNED ANNUAL SPECIAL TAX A RATES
FOR DEVELOPED PROPERTY WITHIN ZONE 1
Land Use Type Building Square Footage Rate
Residential Property Less than 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

2. Approved Property, Undeveloped Property, and Provisional Undeveloped Property Each Fiscal Year, each Assessor’s Parcel of Approved Property, Undeveloped Property, and Provisional Undeveloped Property shall be subject to an Assigned Annual Special Tax A. The 1271

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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 exclude the Acreage of the area that would be classified as Agricultural Buffer Property.

SECTION E

BACKUP ANNUAL SPECIAL TAX A
For each Zone, at the time a Final Map is recorded, the City shall determine which Zone the Final Map area lies within and the Backup Annual Special Tax A for all Assessor’s Parcels classified or reasonably expected to be classified as Residential Property within such Final Map area shall be determined by multiplying the Maximum Special Tax A rate for Undeveloped Property for the applicable Zone by the total Acreage of Taxable Property, excluding the Provisional Undeveloped Property Acreage area, or Multifamily Residential Property and/or Non-Residential Property Acreage area if any, in such Final Map area and any Acreage reasonably expected to be classified as Exempt Property, and dividing such amount by the total number of such Assessor’s Parcels of Residential Property. In no circumstance shall the total Acreage of Taxable Property in each Zone be less than the acreage set forth in Table 5.

If the Final Map area described in the preceding paragraph lies within more than one Zone, the Backup Special Tax for Parcels of Residential Property or Parcels expected to be classified as Residential Property shall be determined by multiplying the Maximum Special Tax A rate for Undeveloped Property for the applicable Zone in which the majority of each Assessor Parcel lies by the total Acreage of each Assessor Parcel.

The Backup Annual Special Tax A for Multifamily Residential Property shall be its Annual Assigned Special Tax A Rate.

Notwithstanding the foregoing, if Assessor’s Parcels which are classified or to be classified as Residential Property or Multifamily Residential Property are subsequently changed by recordation of a lot line adjustment, Final Map amendment, new Final Map or similar instrument, then the Backup Annual Special Tax A shall be recalculated within the area that has been changed to equal 1272

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the amount of Backup Annual Special Tax A that would have been generated if such change did not take place.

SECTION F

METHOD OF APPORTIONMENT OF THE ANNUAL SPECIAL TAX A
Commencing Fiscal Year 2025-26 and for each subsequent Fiscal Year, the City Council shall levy Annual Special Tax A in accordance with the following steps:

Step One: The Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Developed Property at up to 100% of the applicable Assigned Annual Special Tax A rates in Table 1, 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 Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Approved Property at up to 100% of the applicable Assigned Annual Special Tax A to satisfy the Special Tax A Requirement.

Step Three: If additional moneys are needed to satisfy the Special Tax A Requirement after the first two steps have been completed, the Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Undeveloped Property up to 100% of the Assigned Annual Special Tax A for Undeveloped Property applicable to each such Assessor's Parcel as needed to satisfy the Special Tax A Requirement.

Step Four: If additional moneys are needed to satisfy the Special Tax A Requirement after the first three steps have been completed, then the Annual Special Tax A on each Assessor's Parcel of Developed Property for which the Maximum Special Tax A is the Backup Annual Special Tax A shall be increased Proportionately from the Assigned Annual Special Tax A up to 100% of the Backup Annual Special Tax A as needed to satisfy the Special Tax A Requirement.

Step Five: If additional moneys are needed to satisfy the Special Tax A Requirement after the first four steps have been completed, the Annual Special Tax A shall be levied Proportionately on each Assessor's Parcel of Provisional Undeveloped Property up to 100% of the Assigned Annual Special Tax A applicable to each such Assessor's Parcel as needed to satisfy the Special Tax A Requirement.

SECTION G

PREPAYMENT OF ANNUAL SPECIAL TAX A
The following definition applies to this Section G:
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of Special Tax A which will remain outstanding after the first interest and/or principal payment date following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Maximum Special Tax A.
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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 Special Tax A obligation would be prepaid. The Prepayment Amount for an Assessor’s Parcel eligible for prepayment shall be determined as described below.

An owner of an Assessor’s Parcel intending to prepay the Special Tax A obligation shall provide the City with written notice of intent to prepay, and within five (5) days of receipt of such notice, the City shall notify such owner of the amount of the non-refundable deposit determined to cover the cost to be incurred by Improvement Area No. 12 in calculating the proper amount of a prepayment.

Within fifteen (15) days of receipt of such non-refundable deposit, the City shall notify such owner of the prepayment amount of such Assessor’s Parcel.

The Prepayment Amount for each applicable Assessor's Parcel shall be calculated according to the following formula (capitalized terms defined below):

Payoff Amount
plus Administrative Fee
equals Prepayment Amount
As of the date of prepayment, the Prepayment Amount shall be calculated as follows:

1. For an Assessor’s Parcel of Developed Property and Provisional Undeveloped Property, compute the Assigned Annual Special Tax A applicable to the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property, compute the Assigned Annual Special Tax A as though it was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor’s Parcel. For an Assessor’s Parcel of Undeveloped Property compute the Assigned Annual Special Tax A as though it was already designated as Developed Property based upon the building permit issued or expected to be issued for that Assessor’s Parcel.

For each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property to be prepaid, compute the present value of the remaining Annual Assigned Special Tax A payments using a discount rate that is equal to the weighted average interest rate on the Outstanding Bonds and the remaining term of the Outstanding Bonds determined by a Financial Advisor selected by the City.

For any prepayment that occurs prior to the first issuance of Bonds, the discount rate used in this calculation shall be 5.5% and the term shall be the period in which the Special Tax A may be levied as provided in Section K less ten years. This is the “Payoff Amount.”
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2. For each Assessor’s Parcel of Developed Property, Approved Property, Undeveloped Property, or Provisional Undeveloped Property to be prepaid, divide the Assigned Annual Special Tax A computed pursuant to the first paragraph in paragraph 1 of this Section G for such Assessor's Parcel by the sum of the estimated Assigned Annual Special Tax applicable to all Assessor’s Parcels of Taxable Property at build out, as reasonably determined by the City.

3. Multiply the quotient computed pursuant to paragraph 2 by the Outstanding Bonds. The product shall be the “Bond Redemption Amount”.

4. Multiply the Bond Redemption Amount by the applicable redemption premium, if any, on the Outstanding Bonds to be redeemed with the proceeds of the Bond Redemption Amount. This product is the “Redemption Premium.”

5. Compute the amount needed to pay interest on the Bond Redemption Amount to be redeemed with the proceeds of the Prepayment Amount until the earliest call date for the Outstanding Bonds.

6. Determine the amount of interest earnings to be derived from the reinvestment of the Bond Redemption Amount plus the Redemption Premium in State and Local Government Series Treasury Obligations until the earliest call date for the Outstanding Bonds.

7. Subtract the amount computed pursuant to paragraph 6 from the amount computed pursuant to paragraph 5. This difference is the “Defeasance Cost.”

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 Credit” 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. 1275

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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).

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 obligation 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.
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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 the 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 the 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. 1277

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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, commencing 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
Special Tax B cannot be prepaid.
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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 worship 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 Property 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 Tax 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 rule 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 Apportionment of Special Tax for purposes of clarifying any ambiguity 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.
1281

APPENDIX B
Boundary Map
1282
1283

MEMORANDUM

CITY OF CHINO

FINANCE DEPARTMENT
CITY COUNCIL MEETING DATE: JULY 15, 2025
TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE

SUBJECT
..titl e
Refunding of Community Facilities District Bonds.
..end

RECOMMENDATION
..recommendation
1) Adopt Resolution Nos. 2025-050, 2025-051, 2025-052, and 2025-053 authorizing the issuance of the 2025 Special Tax Refunding Bonds; 2) adopt Chino Public Financing Authority Resolution No. FA 2025-001, approving the substantially final forms of the Indenture of Trust, Preliminary Official Statement; Bond Purchase Agreement; and Continuing Disclosure Agreement for the 2025 Pooled CFD Refunding; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
..body

FISCAL IMPACT
The refunding of these Community Facilities District bonds will provide for total savings of approximately $2,102,681 over the remaining life of the bonds, representing average annual savings of $210,268 or $1,749,748 net present value savings.

Transfer In: Transfer Out:
1284
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: REFUNDING OF COMMUNITY FACILITIES DISTRICT BONDS.

PAGE: 2

BACKGROUND
Over the course of the last 25 years, developers have utilized Community Facilities Districts (CFDs) to help finance public infrastructure improvements associated with residential and industrial developments. Eligible public improvements consist of backbone infrastructure, such as sewer, water and gas lines, storm drain connections, streets, curb and gutters, as well as additional public facilities financed in lieu of receiving Development Impact Fees.

CFDs issue bonds to finance the construction of the previously mentioned public improvements.

Repayment of these bonds occurs through an annual special tax levy on the property owners within the CFDs. This special tax levy is designed to provide sufficient revenues for the scheduled repayment of principal and interest, much like a home mortgage payment.

Recent conditions in the municipal bond market have created a refunding (refinancing) opportunity for four of the CFDs located in the City of Chino (CFD Nos. 2005-2, 2005-1 (IA 1), 2006-2 and 2003-3 (IA 2) (the “Refunded Bonds”)). Refunding such CFD bonds will reduce the required annual debt service portion of the annual special tax levy within such CFDs. In order to produce economies of scale and maximize efficiency, the proposed structure of the CFD financings is a “pooled refunding” whereby each individual CFD will issue a series of refunding bonds that will be purchased by the City of Chino Public Financing Authority (Authority) which will then issue a single series of Authority bonds secured by the collective revenue stream of the pooled CFD bonds.

The proceeds of Authority Refunding Bonds will be used to effect a current refunding, meaning the proceeds of the Authority Refunding Bonds will be used to pay off the Refunded Bonds less than 90 days from the date the Authority Refunding Bonds are issued. The proposed Authority Refunding Bonds are expected to result in significant dollar savings. The general industry standard is that refunding provides at least 3% present value savings after all costs. Based on market conditions, estimates by the City’s financial advisor and underwriter, estimate net present value savings percentage is 5.81%. Should the net present value savings percentage fall below 3%, staff will not move forward with the refunding process and this series of Authority Refunding Bonds will not be issued.

The Net Present Value (PV) of savings for each CFD is presented below:

CFD Type
Estimated Projected Net
PV Savings from
Refunding
2005-2 Residential $ 167,544
2005-1 IA 1 Residential $ 606,424
2006-2 Residential $ 268,093
2003-3 IA 2 Residential $ 707,687
Total Savings $1,749,748
1285
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: REFUNDING OF COMMUNITY FACILITIES DISTRICT BONDS.

PAGE: 3

ISSUES/ANALYSIS
As described above, the proposed structure of the CFD refunding’s is a “pooled refunding” whereby each CFD will issue a series of refunding bonds that will be purchased by the Authority which will then issue a single series of Authority bonds secured by the collective revenue stream of the pooled CFD bonds. The Authority was created under the Marks-Roos Act of 1985 as a Joint Power Authority in December of 1998. The Authority has the ability to issue revenue bonds and use the proceeds to purchase the CFD refunding bonds. The proceeds of City of Chino Public Financing Authority Local Agency Refunding Bonds will be used to refund the Community Facilities Districts bonds noted in the tables above.

The main elements of the refunding bonds are as follows:

1. Special tax payments from each district will be pledged to make debt service payments on its related bond obligation.

2. A portion of the bond proceeds will be used to redeem each CFDs current outstanding bonds by legally defeasing (and then redeeming) the existing bonds.

3. A reserve fund (or reserve fund surety) will be funded and available to cover debt service shortfalls, if any, for the related Community Facilities District bonds.

4. The issuance of new refunding bonds will result in reduced debt service obligation and net present value savings for each CFD.

Urban Futures, Inc. has been retained as financial advisor; the law firm of Stradling, Yocca, Carlson & Rauth LLP as bond and disclosure counsel; Raymond James, as the underwriter; BNY Mellon as the Fiscal Agent; and Webb Municipal Finance, LLC as the special tax administrator for each CFD.

The estimated Cost of Issuance (COI) and Underwriter’s Discount for the proposed $26,300,000 City of Chino Public Financing Authority Local Agency Refunding Bonds, Series 2025, total approximately $900,058 and are to be paid from bond proceeds contingent upon the successful completion of the refunding transaction. Approximately 45% of the cost of issuance is for credit enhancement, which will lower the debt service cost and increase refunding savings. These costs reflect the standard professional services and underwriting activities required to structure, market, and close a pooled refunding of outstanding Community Facilities District bonds and do not result in a financial obligation to the City should the bonds not close. 1286
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: REFUNDING OF COMMUNITY FACILITIES DISTRICT BONDS.

PAGE: 4
The financing team has prepared the necessary documents to implement the issuance of new refunding bonds in order to achieve the estimated net present value savings for each CFD described above. Copies of the bond documents are available for review in the Finance Department.

The Governing Board of the Authority is required to review and approve the documents with respect to the Authority Bonds and the City Council, acting as the legislative body of the CFDs, is required to review and approve the refinancing of Community Facilities District Bonds.

Adoption of the identified Resolutions will satisfy these requirements. It is anticipated that the bonds will be sold by negotiated sale, with final closing of the issue scheduled for mid August, 2025.

Attachments: Resolution No FA2025-001
Resolution No. 2025-050
Resolution No. 2025-051
Resolution No. 2025-052
Resolution No. 2025-053
Approximate Bond Size $26,300,000
Delivery Expenses
Total Cost of Issuance $330,000
Underwriter’s Discount 190,675
Bond Insurance 341,798
Reserve Fund Surety 59,175
Total Cost of Issuance $900,058
1287
RESOLUTION NO. FA2025-001

RESOLUTION OF THE BOARD OF DIRECTORS OF THE

CHINO PUBLIC FINANCING AUTHORITY, SAN BERNARDINO

COUNTY, CALIFORNIA, AUTHORIZING THE ISSUANCE OF

ITS LOCAL AGENCY REFUNDING BONDS IN ONE OR MORE

SERIES, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO

EXCEED TWENTY NINE MILLION FIVE HUNDRED FORTY
THREE THOUSAND DOLLARS ($29,543,000) AND

APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN

OTHER ACTIONS IN CONNECTION THEREWITH
WHEREAS, the Chino Public Financing Authority (the “Authority”) is a joint exercise of powers authority duly organized and existing under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”), and is authorized pursuant to Article 4 of the Act (the “Bond Law”) to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations to provide financing and refinancing for capital improvements of member entities of the Authority and other local agencies; and
WHEREAS, Community Facilities District No. 2003-3 of the City of Chino (“CFD No. 2003-3”) previously issued the $18,255,000 Community Facilities District No. 2003-3 of the City of Chino Improvement Area 2 2015 Special Tax Refunding Bonds (the “Prior CFD No. 2003-3 Bonds”) to finance certain public improvements; and
WHEREAS, Community Facilities District No. 2005-1 of the City of Chino (“CFD No. 2005-1”) previously issued the $15,635,000 Community Facilities District No. 2005-1 of the City of Chino Improvement Area 1 2015 Special Tax Refunding Bonds (the “Prior CFD No. 2005-1 Bonds”) to finance certain public improvements; and
WHEREAS, Community Facilities District No. 2005-2 of the City of Chino (“CFD No. 2005-2”) previously issued the $4,320,000 Community Facilities District No. 2005-2 of the City of Chino 2015 Special Tax Refunding Bonds (the “Prior CFD No. 2005-2 Bonds”) to finance certain public improvements; and
WHEREAS, Community Facilities District No. 2006-2 of the City of Chino (“CFD No. 2006-2” and with CFD No. 2003-3, CFD No. 2005-1 and CFD 2005-2, the “Community Facilities Districts”) previously issued the $6,905,000 Community Facilities District No. 2006-2 of the City of Chino 2015 Special Tax Refunding Bonds (the “Prior CFD No. 2006-2 Bonds”, and with the Prior CFD No. 2003-3 Bonds, the Prior CFD No. 2005-1 Bonds, and the Prior CFD No. 2005-2 Bonds, the “Prior Bonds”) to finance certain public improvements; and WHEREAS, as a result of favorable conditions in the municipal bond market, the Authority and each of the Community Facilities Districts desire to defease and refund the Prior Bonds; and
WHEREAS, the Authority, for the purpose of acquiring special tax refunding bonds of each of the Community Facilities Districts (the “Local Obligations”), the proceeds of which will be utilized to defease and refund on a current basis the Prior Bonds, has determined to issue its Local Agency Refunding Bonds (the “Authority Bonds”) pursuant to and secured by an 1288
Resolution No. FA2025-001

Page 2 of 6 ends

2 Indenture (as defined below) providing for the issuance of the Bonds, all in the manner provided therein; and
WHEREAS, the Authority Bonds will be secured by debt service payments paid with respect to the Local Obligations, the payment of which will be secured special tax liens on taxable property within the respective Community Facilities Districts or Improvement Areas therein, as applicable; and
WHEREAS, for this refinancing there has been filed with the Secretary of the Board of Directors of the Authority the forms of the following documents to be executed by the Authority with respect to the issuance of the Authority Bonds, which documents the Board desires to approve for execution as described herein:
(1) The Indenture of Trust, (the “Indenture”), by and between the Authority and The Bank of New York Mellon Trust Company, N.A., as Trustee; (2) The Preliminary Official Statement for the Authority Bonds (the “Preliminary Official Statement”);
(3) The Bond Purchase Agreement, to be dated the date of sale, by and between Raymond James & Associates, Inc. as Underwriter (the “Underwriter”), the Authority and the Community Facilities Districts (the “Bond Purchase Agreement”); (4) The Continuing Disclosure Agreement by and between the Authority and Webb Municipal Finance, LLC, as dissemination agent (the documents described in (1) through (5) above are collectively referred to herein as the “Authority Documents”); WHEREAS, the Authority has determined and hereby finds that the issuance of the Authority Bonds and the acquisition of the Local Obligations will result in significant public benefits of the type described in Section 6586 of the Bond Law; and WHEREAS, pursuant to the requirements of Section 5852.1 of the California Government Code (the “Code”), set forth below are good faith estimates provided to the District by Urban Futures Inc., the Authority’s financial advisor, based on market conditions as of June 26, 2025. The following estimates have no bearing on, and should not be misconstrued as, any not to exceed financial parameters authorized by this resolution:
(a) The true interest cost of the Authority Bonds is estimated at 3.3056% calculated as provided in Section 5852.1(a)(1)(A) of the Code. (b) The finance charge of the Authority Bonds, including all fees and charges paid to third parties, is estimated at $900,058.19.
(c) Proceeds of the Authority Bonds received by the Authority for the sale of the Authority Bonds are equal to $27,941,668.
(d) The total payment amount calculated as provided in Section 5852.1(a)(1)(D) of the Code is estimated at $34,170,819.43.

The foregoing estimates and the final costs will depend on market conditions and can be expected to vary from the estimated amounts set forth above. 1289
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3 NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE CHINO PUBLIC

FINANCING AUTHORITY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. Each of the above recitals is true and correct and is adopted by the Board of Directors.

Section 2. The Authority Bonds shall be issued in an aggregate principal amount not to exceed $29,543,000 with the exact principal amount to be determined by the official signing the Bond Purchase Agreement in accordance with Section 4 below. The Authority Bonds shall mature on the dates and pay interest at the rates set forth in the Bond Purchase Agreement to be executed on behalf of the Authority in accordance with Section 4 below. The Authority Bonds shall be issued under the terms of the Indenture, the form of which is on file with the Secretary of the Board of Directors. The form of the Indenture presented at this meeting is hereby approved and each of the Chairman of the Board of Directors, the Executive Director and the Treasurer, or their respective written designees (collectively, the “Authorized Officers”), is hereby authorized to execute the Indenture, in the form hereby approved, with such additions thereto and changes therein as the officer or officers executing the same deem necessary to accomplish the issuance of the Authority Bonds as contemplated by this Resolution. Approval of such changes shall be conclusively evidenced by the execution and delivery of the Indenture by one or more of such Authorized Officers.

Section 3. The Authority Bonds shall be executed on behalf of the Authority by the manual or facsimile signature of the Chairman of the Board of Directors, and the seal of the Authority, or a facsimile thereof, shall be impressed or imprinted thereon and attested with the manual or facsimile signature of the Secretary of the Board of Directors. If the Executive Director determines at any time while the Authority Bonds are outstanding that another bank should be selected to act as trustee for the Authority Bonds, in order to ensure the efficient administration of the Authority Bonds, then the Executive Director, or his designee, is hereby authorized and directed to select and engage a bank or trust company meeting the requirements set forth in the Indenture to act as the trustee for the Authority Bonds under the terms of the Indenture.

Section 4. The form of the Bond Purchase Agreement presented at this meeting is hereby approved; and each of the Authorized Officers is hereby authorized to execute the Bond Purchase Agreement in the form so approved, with such additions thereto and changes therein as are necessary to conform the Bond Purchase Agreement to the dates, amounts and interest rates applicable to the Authority Bonds as of the sale date or to cure any defect or ambiguity therein. Approval of such additions and changes shall be conclusively evidenced by the execution and delivery of the Bond Purchase Agreement by one or more of such Authorized Officers; provided, however, that the Bond Purchase Agreement shall be signed only if the Underwriter’s discount (exclusive of original issue discount) does not exceed 0.8% of the principal amount of the Authority Bonds. Each of the Executive Director, the Treasurer and their written designees is authorized to determine the day on which the Authority Bonds are to be priced in order to attempt to produce the lowest borrowing cost for the Authority and may reject any terms presented by the Underwriter to the Authority if determined not to be in the best interest of the Authority.

In the event the Executive Director or his written designee determines that the purchase of one or more of the Local Obligations will not result in sufficient net present value savings to a Community Facilities District or will not otherwise achieve the purposes of the Authority set forth 1290
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4 in this Resolution, then the Local Obligations of such Community Facilities District, as applicable, will not be purchased by the Authority, and the Authority Documents may be amended to reflect that such Local Obligations will not be purchased by the Authority.

Section 5. The form of the Continuing Disclosure Agreement presented at this meeting is hereby approved; and each of the Authorized Officers is authorized to execute and deliver the Continuing Disclosure Agreement in the form hereby approved, with such additions thereto and changes therein as the officers executing the same deem necessary to comply with the requirements of Rule 15c2-12 of the Securities and Exchange Commission and to cure any ambiguity or defect therein. Approval of such changes shall be conclusively evidenced by the execution and delivery of the Continuing Disclosure Agreement by one or more of such officers.

Section 6. The form of the Preliminary Official Statement presented at this meeting is hereby approved; and the Underwriter is hereby authorized to distribute the Preliminary Official Statement to prospective purchasers of the Authority Bonds in the form hereby approved, together with such additions thereto and changes therein as are determined necessary by the Treasurer of the Authority, or his written designee, to make such Preliminary Official Statement final as of its date for purposes of Rule 15c2-12 of the Securities and Exchange Commission, including, but not limited to, such additions and changes as are necessary to make the information therein accurate and not misleading. Each of the Authorized Officers is hereby authorized to execute a final Official Statement in the form of the Preliminary Official Statement, together with such changes as are determined necessary by the Treasurer of the Authority, or his written designee, to make such Official Statement complete and accurate as of their date. The Underwriter is further authorized to distribute the final Official Statement for the Authority Bonds and any supplement thereto to the purchasers thereof upon its execution on behalf of the Authority as described above.

Section 7. The Authorized Officers are hereby appointed as the authorized officers of the Authority for all purposes required to effect the issuance of the Authority Bonds and are hereby authorized, empowered, and directed, jointly and severally, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the foregoing actions.

Section 8. Stradling Yocca Carlson & Rauth LLP (“SYCR”) shall act as bond counsel and disclosure counsel with respect to the issuance of the Authority Bonds and the Local Obligations to be issued simultaneously with the issuance of the Authority Bonds. Each of the Authorized Officers is authorized to execute an agreement with SYCR to act as bond counsel and disclosure counsel to pay for the cost of such services, together with other Costs of Issuance (as defined in the Indenture), with proceeds deposited pursuant to the Indenture.

Section 9. Urban Futures Inc. (“UFI”) shall act as financial advisor to the Authority and the Community Facilities Districts in connection with the issuance of the Authority Bonds and the Local Obligations. Each of the Authorized Officers is authorized to execute an agreement with UFI to act as financial advisor to pay for the cost of such services, together with other Costs of Issuance (as defined in the Indenture), with proceeds deposited pursuant to the Indenture.

Section 10. Webb Municipal Finance, LLC (“Webb”) shall act as special tax consultant in connection with the issuance of the Authority Bonds and the Local Obligations. Each of the Authorized Officers is authorized to execute an agreement with such consultant to serve as 1291
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5 special tax consultant and to pay for the cost of such services, together with other Costs of Issuance (as defined in the Indenture), with proceeds deposited pursuant to the Indenture.

Section 11. The Bank of New York Mellon Trust Company, N.A. (“BNY”) shall act Trustee and Fiscal Agent in connection with the issuance of the Authority Bonds and the Local Obligations, respectively. Each of the Authorized Officers is authorized to execute an agreement with BNY to serve as Trustee and Fiscal Agent and to pay for the cost of such services, together with other Costs of Issuance (as defined in the Indenture), with proceeds deposited pursuant to the Indenture.

Section 12. BNY shall act Escrow Agent in connection with the refunding of the Prior Bonds. Each of the Authorized Officers is authorized to execute an agreement with BNY to serve as Escrow Agent and to pay for the cost of such services, together with other Costs of Issuance (as defined in the Indenture), with proceeds deposited pursuant to the Indenture.

Section 13. Each of the Authorized Officers are authorized, but not required, to obtain a rating of the Authority Bonds from a nationally recognized rating service and, if it is necessary or advisable in order to improve said rating, to obtain a policy of municipal bond insurance guaranteeing payment of principal and interest with respect to some or all of the Authority Bonds, and to pay the premium or fee therefor from the proceeds of the sale of the Authority Bonds, if such Authorized Officer, in consultation with UFI, determines that obtaining such rating will result in a lower total interest cost with respect to the Authority Bonds.

Section 14. The Authorized Officers are hereby authorized and directed, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to consummate the issuance and sale of the Authority Bonds and otherwise to effectuate the purposes of this Resolution.

ADOPTED, SIGNED AND APPROVED this 15th day of July 2025.

Karen C. Comstock, Chair
ATTEST:

Natalie Gonzaga, Secretary,
Chino Public Financing Authority
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6 STATE OF CALIFORNIA )
) ss.

COUNTY OF SAN BERNARDINO )
I, Natalie Gonzaga, Secretary of the Board of Directors of the Chino Public Financing Authority, do hereby certify that the foregoing resolution was duly adopted by the Board of Directors of said Authority at a regular meeting of said Board held on the 15th day of July 2025, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Natalie Gonzaga, Secretary
Chino Public Financing Authority

STATE OF CALIFORNIA )
) ss.

COUNTY OF SAN BERNARDINO )
I, Natalie Gonzaga, Secretary of the Board of Directors of Chino Public Financing Authority, do hereby certify that the above and foregoing is a full, true and correct copy of RESOLUTION NO. FA2025-001, of said Board, and that the same has not been amended or repealed.

DATED: July 15, 2025
Natalie Gonzaga, Secretary
Chino Public Financing Authority
(SEAL)
1293
RESOLUTION NO. 2025-050

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY
OF COMMUNITY FACILITIES DISTRICT NO. 2003-3 OF THE
CITY OF CHINO, AUTHORIZING THE ISSUANCE OF ITS 2025

SPECIAL TAX REFUNDING BONDS IN A PRINCIPAL AMOUNT

NOT TO EXCEED ELEVEN MILLION NINE HUNDRED FIFTY
TWO THOUSAND DOLLARS ($11,952,000) AND APPROVING

CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER

ACTIONS IN CONNECTION THEREWITH
WHEREAS, the City Council of the City of Chino (the “City”), located in San Bernardino County, California (hereinafter sometimes referred to as the “legislative body of the District”), has heretofore undertaken proceedings to form Community Facilities District No. 2003-3 of the City of Chino (the “District”), and Improvement Area 2 therein pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, the District has previously issued its $18,255,000 2015 Special Tax Refunding Bonds (the “Prior Bonds”) to refinance certain public improvements; and WHEREAS, the legislative body of the District now desires to refund the Prior Bonds through the issuance of bonds in an aggregate principal amount not to exceed $11,952,000 designated as the “Community Facilities District No. 2003-3 of the City of Chino Improvement Area 2 2025 Special Tax Refunding Bonds” (the “2025 Bonds”); and WHEREAS, in order to effect the issuance of the 2025 Bonds, the legislative body of the District desires to enter into a Bond Indenture, dated as of August 1, 2025 (the “Local Obligation Bond Indenture”), with The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent, in substantially the form presented herewith; and
WHEREAS, in order to effect the refunding and redemption of the Prior Bonds, the legislative body of the District desires to enter into an Escrow Agreement, dated as of August 1, 2025 (the “Escrow Agreement”), with The Bank of New York Mellon Trust Company, N.A., as Escrow Agent (the “Escrow Agent”), in substantially the form presented herewith; and WHEREAS, the legislative body of the District has determined in accordance with Section 53360.4 of the Code that a negotiated sale of the 2025 Bonds to the Chino Public Financing Authority (the “Authority”) in accordance with the terms of the Bond Purchase Agreement to be entered into by and among the Authority, the District and the other Districts (as defined therein) (the “Bond Purchase Agreement”) approved as to form by this legislative body herein will result in a lower overall cost to the District than a public sale; and WHEREAS, the legislative body of the District has determined that it is prudent in the management of its fiscal affairs to issue the 2025 Bonds; and WHEREAS, the Authority will issue its bonds (the “Authority Bonds”) to provide funds for its purchase of the 2025 Bonds;
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WHEREAS, pursuant to the requirements of Section 5852.1 of the California Government Code (the “Code”), set forth below are good faith estimates provided to the District by Urban Futures Inc., the District’s financial advisor, based on market conditions as of June 26, 2025. The following estimates have no bearing on, and should not be misconstrued as, any not to exceed financial parameters authorized by this resolution:
(a) The true interest cost of the 2025 Bonds is estimated at 3.3058% calculated as provided in Section 5852.1(a)(1)(A) of the Code.
(b) The finance charge of the 2025 Bonds, including all fees and charges paid to third parties, is estimated at $364,137.04.
(c) Proceeds of the 2025 Bonds received by the District for the sale of the 2025 Bonds are equal to $11,302,360.80.
(d) The total payment amount calculated as provided in Section 5852.1(a)(1)(D) of the Code is estimated at $13,824,944.44.

The foregoing estimates and the final costs will depend on market conditions and can be expected to vary from the estimated amounts set forth above; NOW, THEREFORE, the City Council of the City, acting as the legislative body of the District, DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

SECTION 1. Each of the above recitals is true and correct.

SECTION 2. The legislative body of the District is authorized pursuant to the Act to issue the 2025 Bonds for the benefit of the District for purposes set forth herein and to take the necessary steps to refund and redeem the Prior Bonds.

SECTION 3. The issuance of the 2025 Bonds in an aggregate principal amount not to exceed $12,369,000 is hereby authorized with the exact principal amount to be determined by the official signing the Bond Purchase Agreement in accordance with Section 6 below. The legislative body of the District hereby determines that it is prudent in the management of its fiscal affairs to issue the 2025 Bonds. The 2025 Bonds shall mature on the dates and pay interest at the rates set forth in the Bond Purchase Agreement to be executed on behalf of the District in accordance with Section 6 hereof. The 2025 Bonds shall be governed by the terms and conditions of the Local Obligation Bond Indenture presented at this meeting. The Local Obligation Bond Indenture shall be prepared by Bond Counsel to the District and executed by one or more of the Mayor and the Clerk of the legislative body of the District, the City Manager, the Finance Director, and their written designees (collectively, the “Authorized Officers”) substantially in the form presented at this meeting, with such additions thereto and changes therein as the officer or officers executing the same deem necessary to cure any ambiguity or defect therein, to insert the offering price(s), interest rate(s), selling compensation, principal amount per maturity, redemption dates and prices and such other related terms and provisions as limited by Section 6 hereof, to conform any provisions therein to the Indenture for the Authority Bonds. Approval of such changes shall be conclusively evidenced by the execution and delivery of the Local Obligation Bond Indenture by one or more Authorized Officers.

Capitalized terms used in this Resolution which are not defined herein have the meanings ascribed to them in the Local Obligation Bond Indenture. 1295
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In satisfaction of the requirements contained in Section 53363.2 of the Act, the legislative body of the District hereby determines that: (1) it is anticipated that the purchase of the 2025 Bonds will occur on or about August 5, 2025, (2) the 2025 Bonds shall bear the date, be in the denominations, have the maturity dates (which do not exceed the latest maturity date of the Prior Bonds being refunded), and be payable at the place and be in the form specified in the Local Obligation Bond Indenture, (3) the 2025 Bonds will bear interest at the minimum rate of 0.5% per annum, and (4) the designated cost of issuing the 2025 Bonds being used to refund the Prior Bonds, as defined by Section 53363.8 of the Act, shall include all of the costs specified in Section 53363.8(a), (b)(2) and (c).

In satisfaction of the requirements contained in Section 53364.2 of the Act, the legislative body of the District hereby determines that any savings achieved through the issuance of the 2025 Bonds shall be used to reduce special taxes of the District, and such reductions shall be made in accordance with the Act.

SECTION 4. The 2025 Bonds shall be executed on behalf of the District by the manual or facsimile signature of the Mayor of the legislative body of the District, and the seal of the City of Chino, or a facsimile thereof, shall be impressed or imprinted thereon and attested with the manual or facsimile signature of the Clerk of the legislative body of the District. The Bank of New York Mellon Trust Company, N.A. is hereby appointed to act as Fiscal Agent for the 2025 Bonds.

SECTION 5. The covenants set forth in the Local Obligation Bond Indenture to be executed in accordance with Section 3 above are hereby approved, shall be deemed to be covenants of the City Council in its capacity as the legislative body of the District and shall be complied with by the District and its officers.

SECTION 6. The form of the Bond Purchase Agreement presented herewith is hereby approved; and any one of the Authorized Officers is hereby authorized and directed, for and in the name of the District, to execute and the Clerk, or his or her written designee, is authorized to attest to the Bond Purchase Agreement substantially in the form approved, with such additions thereto and changes therein as may be approved or required by an Authorized Officer, including changes relating to dates and numbers as are necessary to conform the Bond Purchase Agreement to the dates, amounts and interest rates applicable to the 2025 Bonds as of the sale date. Approval of such additions and changes shall be conclusively evidenced by the execution and delivery of the Bond Purchase Agreement; provided, however, that the Bond Purchase Agreement shall be signed only if the interest rate on the 2025 Bonds is such that the principal and total net interest cost to maturity on the 2025 Bonds is less than the principal and total net interest cost to maturity on the Prior Bonds.

SECTION 7. The form of the Escrow Agreement presented at this meeting is hereby approved; and any one of the Authorized Officers is hereby authorized and directed, for and in the name of the District, to execute and the Clerk, or his or her written designee, is authorized to attest to the Escrow Agreement, with such additions thereto and changes therein as may be approved or required by an Authorized Officer, including changes to conform to the final pricing of the escrow investments and to clarify any ambiguities; provided that the form of Escrow Agreement may be modified to conform to federal tax law requirements or to achieve further savings, with the advice and assistance of Bond Counsel, such approval to be conclusively evidenced by the execution of the Escrow Agreement by an Authorized Officer. The Bank of New York Mellon Trust Company, N.A. is hereby appointed to act as Escrow Agent under the Escrow Agreement.
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SECTION 8. In accordance with the requirements of Section 53345.8 of the Act, the legislative body of the District hereby determines that the Fiscal Year 2024-25 assessed value of the real property in the District subject to the special tax to pay debt service on the 2025 Bonds ($321,695,181) is at least three times the maximum principal amount of the 2025 Bonds ($12,369,000) and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District ($0).

SECTION 9. The Authorized Officers are each authorized to provide for all services necessary to effect the issuance of the 2025 Bonds. Such services shall include, but not be limited to, obtaining legal services, fiscal agent services and any other services deemed appropriate as set forth in a certificate of an Authorized Officer. The Authorized Officers are authorized to pay for the cost of such services, together with other Costs of Issuance from 2025 Bond proceeds.

SECTION 10. The Mayor and Clerk of the legislative body of the District, the City Manager, the Director of Finance, and the other officers and staff of the City and the District responsible for the fiscal affairs of the District are hereby authorized and directed to take any actions and execute and deliver any and all documents as are necessary to accomplish the issuance, sale and delivery of the 2025 Bonds in accordance with the provisions of this Resolution and the fulfillment of the purposes of the 2025 Bonds as described in the Local Obligation Bond Indenture. In the event that the Mayor of the legislative body of the District is unavailable to sign any document authorized for execution herein, any other member of the legislative body of the District or the City Manager or the Finance Director or their written designee, may sign such document. Any document authorized herein to be signed by the Clerk of the legislative body of the District may be signed by a duly appointed deputy clerk.

SECTION 11. This Resolution shall take effect immediately upon its adoption.

ADOPTED, SIGNED AND APPROVED this 15th day of July 2025.

Eunice M. Ulloa, Mayor of the City of Chino, acting
in its capacity as the legislative body of Community
Facilities District No. 2003-3 of the City of Chino
(SEAL)
ATTEST:

Natalie Gonzaga, City Clerk of the City of Chino,
acting in its capacity as the legislative body of
Community Facilities District No. 2003-3 of the City
of Chino
1297
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Page 5 of 5 ends

STATE OF CALIFORNIA )
) ss.

COUNTY OF SAN BERNARDINO )
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 said City, acting in its capacity as the legislative body of Community Facilities District No. 2003-3 of the City of Chino, at a regular meeting of said Board held on the 15th day of July 2025, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Natalie Gonzaga, City Clerk
City of Chino
(SEAL)

STATE OF CALIFORNIA )
) ss.

COUNTY OF SAN BERNARDINO )
I, Natalie Gonzaga, City Clerk of the City of Chino, do hereby certify that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2025-050, of said City Council, acting in its capacity as the legislative body of Community Facilities District No. 2003-3 of the City of Chino, and that the same has not been amended or repealed.

DATED: July 15, 2025
Natalie Gonzaga, City Clerk
City of Chino
(SEAL)
1298
RESOLUTION NO. 2025-051

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY
OF COMMUNITY FACILITIES DISTRICT NO. 2005-1 OF THE
CITY OF CHINO, AUTHORIZING THE ISSUANCE OF ITS 2025

SPECIAL TAX REFUNDING BONDS IN A PRINCIPAL AMOUNT

NOT TO EXCEED TEN MILLION TWO HUNDRED THIRTY
THREE THOUSAND DOLLARS ($10,233,000) AND

APPROVING CERTAIN DOCUMENTS AND TAKING CERTAIN

OTHER ACTIONS IN CONNECTION THEREWITH
WHEREAS, the City Council of the City of Chino (the “City”), located in San Bernardino County, California (hereinafter sometimes referred to as the “legislative body of the District”), has heretofore undertaken proceedings to form Community Facilities District No. 2005-1 of the City of Chino (the “District”), and Improvement Area 1 therein pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, the District has previously issued its $15,635,000 2015 Special Tax Refunding Bonds (the “Prior Bonds”) to refinance certain public improvements; and WHEREAS, the legislative body of the District now desires to refund the Prior Bonds through the issuance of bonds in an aggregate principal amount not to exceed $10,233,000 designated as the “Community Facilities District No. 2005-1 of the City of Chino Improvement Area 1 2025 Special Tax Refunding Bonds” (the “2025 Bonds”); and WHEREAS, in order to effect the issuance of the 2025 Bonds, the legislative body of the District desires to enter into a Bond Indenture, dated as of August 1, 2025 (the “Local Obligation Bond Indenture”), with The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent, in substantially the form presented herewith; and
WHEREAS, in order to effect the refunding and redemption of the Prior Bonds, the legislative body of the District desires to enter into an Escrow Agreement, dated as of August 1, 2025 (the “Escrow Agreement”), with The Bank of New York Mellon Trust Company, N.A., as Escrow Agent (the “Escrow Agent”), in substantially the form presented herewith; and WHEREAS, the legislative body of the District has determined in accordance with Section 53360.4 of the Code that a negotiated sale of the 2025 Bonds to the Chino Public Financing Authority (the “Authority”) in accordance with the terms of the Bond Purchase Agreement to be entered into by and among the Authority, the District and the other Districts (as defined therein) (the “Bond Purchase Agreement”) approved as to form by this legislative body herein will result in a lower overall cost to the District than a public sale; and WHEREAS, the legislative body of the District has determined that it is prudent in the management of its fiscal affairs to issue the 2025 Bonds; and WHEREAS, the Authority will issue its bonds (the “Authority Bonds”) to provide funds for its purchase of the 2025 Bonds; and
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WHEREAS, pursuant to the requirements of Section 5852.1 of the California Government Code (the “Code”), set forth below are good faith estimates provided to the District by Urban Futures Inc., the District’s financial advisor, based on market conditions as of June 26, 2025. The following estimates have no bearing on, and should not be misconstrued as, any not to exceed financial parameters authorized by this resolution:
(a) The true interest cost of the 2025 Bonds is estimated at 3.3054% calculated as provided in Section 5852.1(a)(1)(A) of the Code.
(b) The finance charge of the 2025 Bonds, including all fees and charges paid to third parties, is estimated at $311,766.97.
(c) Proceeds of the 2025 Bonds received by the District for the sale of the 2025 Bonds are equal to $9,681,318.56.
(d) The total payment amount calculated as provided in Section 5852.1(a)(1)(D) of the Code is estimated at $11,836,131.94.

The foregoing estimates and the final costs will depend on market conditions and can be expected to vary from the estimated amounts set forth above.

NOW, THEREFORE, the City Council of the City, acting as the legislative body of the District, DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

SECTION 1. Each of the above recitals is true and correct.

SECTION 3. The issuance of the 2025 Bonds in an aggregate principal amount not to exceed $10,691,000 is hereby authorized with the exact principal amount to be determined by the official signing the Bond Purchase Agreement in accordance with Section 6 below. The legislative body of the District hereby determines that it is prudent in the management of its fiscal affairs to issue the 2025 Bonds. The 2025 Bonds shall mature on the dates and pay interest at the rates set forth in the Bond Purchase Agreement to be executed on behalf of the District in accordance with Section 6 hereof. The 2025 Bonds shall be governed by the terms and conditions of the Local Obligation Bond Indenture presented at this meeting. The Local Obligation Bond Indenture shall be prepared by Bond Counsel to the District and executed by one or more of the Mayor and the Clerk of the legislative body of the District, the City Manager, the Finance Director, and their written designees (collectively, the “Authorized Officers”) substantially in the form presented at this meeting, with such additions thereto and changes therein as the officer or officers executing the same deem necessary to cure any ambiguity or defect therein, to insert the offering price(s), interest rate(s), selling compensation, principal amount per maturity, redemption dates and prices and such other related terms and provisions as limited by Section 6 hereof, to conform any provisions therein to the Indenture for the Authority Bonds. Approval of such changes shall be conclusively evidenced by the execution and delivery of the Local Obligation Bond Indenture by one or more Authorized Officers.

Capitalized terms used in this Resolution which are not defined herein have the meanings ascribed to them in the Local Obligation Bond Indenture. 1300
Resolution No. 2025-051

Page 3 of 5 ends

Page 4 of 5 ends

SECTION 8. In accordance with the requirements of Section 53345.8 of the Act, the legislative body of the District hereby determines that the Fiscal Year 2024-25 assessed value of the real property in the District subject to the special tax to pay debt service on the 2025 Bonds ($433,858,189) is at least three times the maximum principal amount of the 2025 Bonds ($10,691,000) and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District ($0).

SECTION 11. This Resolution shall take effect immediately upon its adoption.

ADOPTED, SIGNED AND APPROVED this 15th day of July 2025.

Eunice M. Ulloa, Mayor of the City of Chino, acting
in its capacity as the legislative body of Community
Facilities District No. 2005-1 of the City of Chino
(SEAL)
ATTEST:

Natalie Gonzaga, City Clerk of the City of Chino,
acting in its capacity as the legislative body of
Community Facilities District No. 2005-1 of the City
of Chino
1302
Resolution No. 2025-051

Page 5 of 5 ends

STATE OF CALIFORNIA )
) ss.

COUNTY OF SAN BERNARDINO )
I, Natalie Gonzaga, Clerk of the City of Chino, do hereby certify that the foregoing resolution was duly adopted by the City Council of said City, acting in its capacity as the legislative body of Community Facilities District No. 2005-1 of the City of Chino, at a regular meeting of said Board held on the 15th day of July 2025, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Natalie Gonzaga, City Clerk
City of Chino
(SEAL)

STATE OF CALIFORNIA )
) ss.

COUNTY OF SAN BERNARDINO )
I, Natalie Gonzaga, Clerk of the City of Chino, do hereby certify that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2025-051, of said City Council, acting in its capacity as the legislative body of Community Facilities District No. 2005-1 of the City of Chino, and that the same has not been amended or repealed.

DATED: July 15, 2025
Natalie Gonzaga, City Clerk
City of Chino
(SEAL)
1303
RESOLUTION NO. 2025-052

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, CALIFORNIA ACTING AS THE LEGISLATIVE BODY
OF COMMUNITY FACILITIES DISTRICT NO. 2005-2 OF THE
CITY OF CHINO, AUTHORIZING THE ISSUANCE OF ITS 2025

SPECIAL TAX REFUNDING BONDS IN A PRINCIPAL AMOUNT

NOT TO EXCEED TWO MILLION EIGHT HUNDRED THIRTY
SEVEN THOUSAND DOLLARS ($2,837,000) AND APPROVING

CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER

ACTIONS IN CONNECTION THEREWITH
WHEREAS, the City Council of the City of Chino (the “City”), located in San Bernardino County, California (hereinafter sometimes referred to as the “legislative body of the District”), has heretofore undertaken proceedings to form Community Facilities District No. 2005-2 of the City of Chino (the “District”), pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, the District has previously issued its $4,320,000 2015 Special Tax Refunding Bonds (the “Prior Bonds”) to refinance certain public improvements; and WHEREAS, the legislative body of the District now desires to refund the Prior Bonds through the issuance of bonds in an aggregate principal amount not to exceed $2,837,000 designated as the “Community Facilities District No. 2005-2 of the City of Chino 2025 Special Tax Refunding Bonds” (the “2025 Bonds”); and
WHEREAS, in order to effect the issuance of the 2025 Bonds, the legislative body of the District desires to enter into a Bond Indenture, dated as of August 1, 2025 (the “Local Obligation Bond Indenture”), with The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent, in substantially the form presented herewith; and
WHEREAS, in order to effect the refunding and redemption of the Prior Bonds, the legislative body of the District desires to enter into an Escrow Agreement, dated as of August 1, 2025 (the “Escrow Agreement”), with The Bank of New York Mellon Trust Company, N.A., as Escrow Agent (the “Escrow Agent”), in substantially the form presented herewith; and WHEREAS, the legislative body of the District has determined in accordance with Section 53360.4 of the Code that a negotiated sale of the 2025 Bonds to the Chino Public Financing Authority (the “Authority”) in accordance with the terms of the Bond Purchase Agreement to be entered into by and among the Authority, the District and the other Districts (as defined therein) (the “Bond Purchase Agreement”) approved as to form by this legislative body herein will result in a lower overall cost to the District than a public sale; and WHEREAS, the legislative body of the District has determined that it is prudent in the management of its fiscal affairs to issue the 2025 Bonds; and WHEREAS, the Authority will issue its bonds (the “Authority Bonds”) to provide funds for its purchase of the 2025 Bonds; and
1304
Resolution No. 2025-052

Page 2 of 5 ends

WHEREAS, pursuant to the requirements of Section 5852.1 of the California Government Code (the “Code”), set forth below are good faith estimates provided to the District by Urban Futures Inc., the District’s financial advisor, based on market conditions as of June 26, 2025. The following estimates have no bearing on, and should not be misconstrued as, any not to exceed financial parameters authorized by this resolution:
(a) The true interest cost of the 2025 Bonds is estimated at 3.3051% calculated as provided in Section 5852.1(a)(1)(A) of the Code.
(b) The finance charge of the 2025 Bonds, including all fees and charges paid to third parties, is estimated at $86,401.02.
(c) Proceeds of the 2025 Bonds received by the District for the sale of the 2025 Bonds are equal to $2,678,457.35.
(d) The total payment amount calculated as provided in Section 5852.1(a)(1)(D) of the Code is estimated at $3,279,517.36.

SECTION 1. Each of the above recitals is true and correct.

SECTION 3. The issuance of the 2025 Bonds in an aggregate principal amount not to exceed $3,469,000 is hereby authorized with the exact principal amount to be determined by the official signing the Bond Purchase Agreement in accordance with Section 6 below. The legislative body of the District hereby determines that it is prudent in the management of its fiscal affairs to issue the 2025 Bonds. The 2025 Bonds shall mature on the dates and pay interest at the rates set forth in the Bond Purchase Agreement to be executed on behalf of the District in accordance with Section 6 hereof. The 2025 Bonds shall be governed by the terms and conditions of the Local Obligation Bond Indenture presented at this meeting. The Local Obligation Bond Indenture shall be prepared by Bond Counsel to the District and executed by one or more of the Mayor and the Clerk of the legislative body of the District, the City Manager, the Finance Director, and their written designees (collectively, the “Authorized Officers”) substantially in the form presented at this meeting, with such additions thereto and changes therein as the officer or officers executing the same deem necessary to cure any ambiguity or defect therein, to insert the offering price(s), interest rate(s), selling compensation, principal amount per maturity, redemption dates and prices and such other related terms and provisions as limited by Section 6 hereof, to conform any provisions therein to the Indenture for the Authority Bonds. Approval of such changes shall be conclusively evidenced by the execution and delivery of the Local Obligation Bond Indenture by one or more Authorized Officers.

Capitalized terms used in this Resolution which are not defined herein have the meanings ascribed to them in the Local Obligation Bond Indenture. 1305
Resolution No. 2025-052

Page 3 of 5 ends

Page 4 of 5 ends

SECTION 8. In accordance with the requirements of Section 53345.8 of the Act, the legislative body of the District hereby determines that the Fiscal Year 2024-25 assessed value of the real property in the District subject to the special tax to pay debt service on the 2025 Bonds ($81,358,627) is at least three times the maximum principal amount of the 2025 Bonds ($3,469,000) and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District ($0).

SECTION 11. This Resolution shall take effect immediately upon its adoption.

ADOPTED, SIGNED AND APPROVED this 15th day of July 2025.

Eunice M. Ulloa, Mayor of the City of Chino, acting
in its capacity as the legislative body of Community
Facilities District No. 2005-2 of the City of Chino
(SEAL)
ATTEST:

Natalie Gonzaga, City Clerk of the City of Chino,
acting in its capacity as the legislative body of
Community Facilities District No. 2005-2 of the City
of Chino
1307
Resolution No. 2025-052

Page 5 of 5 ends

STATE OF CALIFORNIA )
) ss.

COUNTY OF SAN BERNARDINO )
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 said City, acting in its capacity as the legislative body of Community Facilities District No. 2005-2 of the City of Chino, at a regular meeting of said Board held on the 15th day of July 2025, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Natalie Gonzaga, City Clerk
City of Chino
(SEAL)

STATE OF CALIFORNIA )
) ss.

COUNTY OF SAN BERNARDINO )
I, Natalie Gonzaga, City Clerk of the City of Chino, do hereby certify that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2025-052, of said City Council, acting in its capacity as the legislative body of Community Facilities District No. 2005-2 of the City of Chino, and that the same has not been amended or repealed.

DATED: July 15, 2025
Natalie Gonzaga, City Clerk
City of Chino
(SEAL)
1308
RESOLUTION NO. 2025-053

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CHINO, ACTING AS THE LEGISLATIVE BODY OF
COMMUNITY FACILITIES DISTRICT NO. 2006-2 OF THE CITY
OF CHINO, AUTHORIZING THE ISSUANCE OF ITS 2025

SPECIAL TAX REFUNDING BONDS IN A PRINCIPAL AMOUNT

NOT TO EXCEED FOUR MILLION FIVE HUNDRED TWENTY
ONE THOUSAND DOLLARS ($4,521,000) AND APPROVING

CERTAIN DOCUMENTS AND TAKING CERTAIN OTHER

ACTIONS IN CONNECTION THEREWITH
WHEREAS, the City Council of the City of Chino (the “City”), located in San Bernardino County, California (hereinafter sometimes referred to as the “legislative body of the District”), has heretofore undertaken proceedings to form Community Facilities District No. 2006-2 of the City of Chino (the “District”), pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”); and WHEREAS, the District has previously issued its $6,905,000 2015 Special Tax Refunding Bonds (the “Prior Bonds”) to refinance certain public improvements; and WHEREAS, the legislative body of the District now desires to refund the Prior Bonds through the issuance of bonds in an aggregate principal amount not to exceed $4,521,000 designated as the “Community Facilities District No. 2006-2 of the City of Chino 2025 Special Tax Refunding Bonds” (the “2025 Bonds”); and
WHEREAS, in order to effect the issuance of the 2025 Bonds, the legislative body of the District desires to enter into a Bond Indenture, dated as of August 1, 2025 (the “Local Obligation Bond Indenture”), with The Bank of New York Mellon Trust Company, N.A., as Fiscal Agent, in substantially the form presented herewith; and
WHEREAS, in order to effect the refunding and redemption of the Prior Bonds, the legislative body of the District desires to enter into an Escrow Agreement, dated as of August 1, 2025 (the “Escrow Agreement”), with The Bank of New York Mellon Trust Company, N.A., as Escrow Agent (the “Escrow Agent”), in substantially the form presented herewith; and WHEREAS, the legislative body of the District has determined in accordance with Section 53360.4 of the Code that a negotiated sale of the 2025 Bonds to the Chino Public Financing Authority (the “Authority”) in accordance with the terms of the Bond Purchase Agreement to be entered into by and among the Authority, the District and the other Districts (as defined therein) (the “Bond Purchase Agreement”) approved as to form by this legislative body herein will result in a lower overall cost to the District than a public sale; and WHEREAS, the legislative body of the District has determined that it is prudent in the management of its fiscal affairs to issue the 2025 Bonds; and WHEREAS, the Authority will issue its bonds (the “Authority Bonds”) to provide funds for its purchase of the 2025 Bonds; and
1309
Resolution No. 2025-053

Page 2 of 5 ends

WHEREAS, pursuant to the requirements of Section 5852.1 of the California Government Code (the “Code”), set forth below are good faith estimates provided to the District by Urban Futures Inc., the District’s financial advisor, based on market conditions as of June 26, 2025. The following estimates have no bearing on, and should not be misconstrued as, any not to exceed financial parameters authorized by this resolution:
(a) The true interest cost of the 2025 Bonds is estimated at 3.3058% calculated as provided in Section 5852.1(a)(1)(A) of the Code.
(b) The finance charge of the 2025 Bonds, including all fees and charges paid to third parties, is estimated at $137,753.16.
(c) Proceeds of the 2025 Bonds received by the District for the sale of the 2025 Bonds are equal to $4,279,531.58.
(d) The total payment amount calculated as provided in Section 5852.1(a)(1)(D) of the Code is estimated at $5,230,225.69.

The foregoing estimates and the final costs will depend on market conditions and can be expected to vary from the estimated amounts set forth above.

NOW, THEREFORE, the City Council of the City, acting as the legislative body of the District, DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

SECTION 1. Each of the above recitals is true and correct.

SECTION 3. The issuance of the 2025 Bonds in an aggregate principal amount not to exceed $5,114,000 is hereby authorized with the exact principal amount to be determined by the official signing the Bond Purchase Agreement in accordance with Section 6 below. The legislative body of the District hereby determines that it is prudent in the management of its fiscal affairs to issue the 2025 Bonds. The 2025 Bonds shall mature on the dates and pay interest at the rates set forth in the Bond Purchase Agreement to be executed on behalf of the District in accordance with Section 6 hereof. The 2025 Bonds shall be governed by the terms and conditions of the Local Obligation Bond Indenture presented at this meeting. The Local Obligation Bond Indenture shall be prepared by Bond Counsel to the District and executed by one or more of the Mayor and the Clerk of the legislative body of the District, the City Manager, the Finance Director, and their written designees (collectively, the “Authorized Officers”) substantially in the form presented at this meeting, with such additions thereto and changes therein as the officer or officers executing the same deem necessary to cure any ambiguity or defect therein, to insert the offering price(s), interest rate(s), selling compensation, principal amount per maturity, redemption dates and prices and such other related terms and provisions as limited by Section 6 hereof, to conform any provisions therein to the Indenture for the Authority Bonds. Approval of such changes shall be conclusively evidenced by the execution and delivery of the Local Obligation Bond Indenture by one or more Authorized Officers.

Capitalized terms used in this Resolution which are not defined herein have the meanings ascribed to them in the Local Obligation Bond Indenture. 1310
Resolution No. 2025-053

Page 3 of 5 ends

Page 4 of 5 ends

SECTION 8. In accordance with the requirements of Section 53345.8 of the Act, the legislative body of the District hereby determines that the Fiscal Year 2024-25 assessed value of the real property in the District subject to the special tax to pay debt service on the 2025 Bonds ($160,700,689) is at least three times the maximum principal amount of the 2025 Bonds ($5,114,000) and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District ($0).

SECTION 11. This Resolution shall take effect immediately upon its adoption.

ADOPTED, SIGNED AND APPROVED this 15th day of July 2025.

Eunice M. Ulloa, Mayor of the City of Chino, acting
in its capacity as the legislative body of Community
Facilities District No. 2006-2 of the City of Chino
(SEAL)
ATTEST:

Natalie Gonzaga, City Clerk of the City of Chino,
acting in its capacity as the legislative body of
Community Facilities District No. 2006-2 of the City
of Chino
1312
Resolution No. 2025-053

Page 5 of 5 ends

STATE OF CALIFORNIA )
) ss.

COUNTY OF SAN BERNARDINO )
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 said City, acting in its capacity as the legislative body of Community Facilities District No. 2006-2 of the City of Chino, at a regular meeting of said Board held on the 15th day of July 2025, and that it was so adopted by the following vote:

AYES:

NOES:

ABSENT:

Natalie Gonzaga, City Clerk
City of Chino
(SEAL)

STATE OF CALIFORNIA )
) ss.

COUNTY OF SAN BERNARDINO )
I, Natalie Gonzaga, City Clerk of the City of Chino, do hereby certify that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2025-053, of said City Council, acting in its capacity as the legislative body of Community Facilities District No. 2006-2 of the City of Chino, and that the same has not been amended or repealed.

DATED: July 15, 2025
Natalie Gonzaga, City Clerk
City of Chino
(SEAL)
1313

MEMORANDUM

CITY OF CHINO

FINANCE DEPARTMENT
CITY COUNCIL MEETING DATE: JULY 15, 2025
TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE

SUBJECT
..titl e
Issuance of Bonds Community Facilities District 2022-1 (Falloncrest). ..end

RECOMMENDATION
..recommendation
Adopt Resolution No. 2025-049 of the City Council of the City of Chino, acting as the legislative body for Community Facilities District No. 2022-1 (Falloncrest) of the City of Chino (the “District”), approving the issuance of the bonds and the substantially final forms of the Preliminary Official Statement, Fiscal Agent Agreement, Bond Purchase Agreement, Continuing Disclosure Agreement, and Appraisal Report (collectively, the “Bond Documents”). ..body

FISCAL IMPACT
The Preliminary Official Statement relates to limited obligation special tax bonds (the “Bonds”) of the District. The Bonds will be special obligations of the District, payable solely from special taxes levied on the taxable property within the District, and amounts held by the Fiscal Agent under the Fiscal Agent Agreement. There are no City of Chino funds pledged to the repayment of the Bonds. There is no financial impact to the City in the approval of the Bond Counsel Agreement as the cost is paid from the Bond proceeds of the District contingent upon the Bonds being issued.

Transfer In: Transfer Out:
1314
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: ISSUANCE OF BONDS COMMUNITY FACILITIES DISTRICT 2022-1 (FALLONCREST).

PAGE: 2

BACKGROUND
After receiving a petition from KB HOME Coastal, Inc. (“KB Home”), the City Council initiated proceedings to form the District on November 1, 2022 with the adoption of Resolution Nos. 2022-077 and 2022-078 (the “Resolutions of Intention”). The Resolutions of Intention called for a public hearing on the formation of the District on December 6, 2022. Following the noticed public hearing, the City Council formed the District with the adoption of Resolution Nos. 2022- 083 and 2022-084 and held an election on December 6, 2022, at which election KB Home, the sole qualified elector within the District, approved the establishment of the District, the Rate and Method of Apportionment for the District, and the issuance of Bonds by the District in an amount not to exceed $13,000,000. On January 3, 2023, the City Council approved Ordinance No. 2022-019, which authorizes the levy of the special taxes within the District in accordance with the Mello-Roos Act and the formation proceedings for the District that secure the payment of principal and interest with respect to the Bonds.

The property within the District is part of the City’s Preserve Specific Plan (the “Specific Plan”), adopted on March 25, 2003 in conjunction with the City’s General Plan Amendment 2000-02, and as amended several times thereafter. The District is comprised of approximately 18.70 gross acres (or approximately 11.74 net taxable acres) of land located east of East Preserve Loop and north of Pine Avenue in the City.

KB Home is developing the District in two neighborhoods: “Monet at Contour” and “Rembrandt at Contour.” The Monet neighborhood is planned to be developed into 96 single-family detached condominiums. The Rembrandt neighborhood is planned to be developed into 101 single-family detached condominiums. As of May 15, 2025, of the 197 single-family detached condominiums planned to be developed within the District, 101 completed condominiums had been conveyed to individual homeowners, 40 condominiums (including 4 model condominiums), were completed and owned by KB Home, 34 condominiums were in various stages of construction and the land planned for the remaining 22 condominiums was in a finished lot condition.

KB Home is now ready for the District to issue the Bonds pursuant to the terms of the Bond Documents to finance the infrastructure cost relating to the Project. (see attached map).

ISSUES/ANALYSIS
Staff has retained Urban Futures as the City’s financial advisor; Raymond James, as the underwriter; Webb Municipal Finance as the special tax consultant; BTI Appraisal as the appraiser; BNY Mellon as the fiscal agent; and the law firm of Stradling, Yocca, Carlson & Rauth as bond and disclosure counsel. The financing team has prepared the necessary documents to implement the issuance of the special tax bonds of Community Facilities District No. 2022-1.

The estimated Cost of Issuance (COI) and Underwriter’s Discount for the approximate bond size of $12.4 million, not to exceed $13 million Community Facilities District 2022-1 (Falloncrest) Bonds, total approximately $452,400 and are to be paid from bond proceeds contingent upon successful bond issuance. These costs reflect the standard services required to structure, market, and close the bonds and do not result in a financial obligation to the City should the bonds not close.
1315
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: ISSUANCE OF BONDS COMMUNITY FACILITIES DISTRICT 2022-1 (FALLONCREST).

PAGE: 3
This cost breakdown aligns with industry standards for land-secured financings of this scale and complexity. The Underwriter’s Discount of not to exceed 1.35% is well within market norms, covering compensation for bond distribution, market risk, and pricing services.

The following documents have been prepared for the District’s approval and are available for review in the Finance Department:

1. Resolution No. 2025-049 of the City Council of the City of Chino, acting as the legislative body of Community Facilities District No. 2022-1, of the City of Chino, authorizing the preparation and distribution of a Preliminary Official Statement for the District, appointing a Fiscal Agent, and taking certain other actions in connection therewith; and

2. The Preliminary Official Statement (P.O.S.) will serve as the District’s disclosure document, which summarizes the legal documents and discloses all material financial and demographic information relating to the District and the Bonds. The underwriter will use the P.O.S. to generate investor interest in the Bonds; and

3. The Fiscal Agent Agreement pursuant to which the Bonds will be issued and which establishes the District’s obligations and the Bondholder’s rights concerning the payment of the Bonds and the annual special tax levy and collection within the District; and

4. Bond Purchase Agreement that will serve as the commitment by the underwriter to purchase the Bonds and the commitment by the District to sell the Bonds on the closing date to the underwriter, on the terms contained therein; and

5. Continuing Disclosure Agreement that will serve as the District’s obligation to provide certain annual data regarding the District and its special tax levy and annual report, and to provide notice of certain events regarding the District to Bond investors and the marketplace; and

6. Appraisal Report is intended to be used to assist bond purchasers in reviewing the asset value of the taxable property within the District.

Copies of these documents are available for review in the Finance Department. It is anticipated that the Bonds will be sold on July 24th and closed by August 7th.

Attachments: Resolution No. 2025-049
Boundary Map
Approximate Bond Size $ 12,400,000
Delivery Expenses:

Total Cost of Issuance $ 285,000
Underwriter's Discount 167,400
Total $ 452,400
1316
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: ISSUANCE OF BONDS COMMUNITY FACILITIES DISTRICT 2022-1 (FALLONCREST).

PAGE: 4
1317
1 RESOLUTION NO. 2025-049

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHINO,

CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-1 (FALLONCREST) OF THE CITY OF CHINO, AUTHORIZING THE ISSUANCE OF ITS 2025 SPECIAL TAX

BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
$13,000,000 AND APPROVING CERTAIN DOCUMENTS AND TAKING

CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH
WHEREAS, the City Council (the “City Council,” and sometimes referred to as the “legislative body of the District”) of the City of Chino, California (the “City”), located in San Bernardino County, California, has heretofore undertaken proceedings and declared the necessity to issue bonds by Community Facilities District No. 2022-1 (Falloncrest) of the City of Chino (the “District”) pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, pursuant to a resolution adopted by the District on December 6, 2022, a bond proposition was submitted to the qualified electors within the District and was approved by more than two-thirds of the votes cast at the election held within the District of the District on December 6, 2022; and
WHEREAS, based upon the aforesaid resolutions and elections, the District is now authorized pursuant to the Act to issue bonds in an aggregate principal amount not to exceed $13,000,000; and
WHEREAS, the District expects to issue bonds in an aggregate principal amount not to exceed $13,000,000; and
WHEREAS, in order to effect the issuance of bonds in an aggregate principal amount not to exceed $13,000,000 to be designated as the “Community Facilities District No. 2022-1 (Falloncrest) of the City of Chino 2025 Special Tax Bonds” (the “Bonds”), the legislative body of the District desires to approve the forms, and authorize the execution and delivery, of a Fiscal Agent Agreement, a Continuing Disclosure Agreement and a Bond Purchase Agreement for the Bonds; and
WHEREAS, in accordance with Government Code Section 53360.4, the legislative body of the District determines that a negotiated sale of the Bonds to Raymond James & Associates, Inc. (the “Underwriter”) in accordance with the terms of the Bond Purchase Agreement for the Bonds to be entered into by the District and the Underwriter (the “Bond Purchase Agreement”) will result in a lower overall cost to the District than a public sale; and WHEREAS, the legislative body of the District determines that it is prudent in the management of its fiscal affairs to issue the Bonds; and WHEREAS, pursuant to Section 53345.8 of the Act and the District’s Local Goals and Policies, unless the bonds are escrowed or otherwise credit enhanced, the District may sell bonds if the legislative body of the District determines prior to the award of the sale of such bonds that the value of the real property that would be subject to the special tax to pay debt service on the bonds will be at least four (4) times the principal amount of the bonds to be sold and the principal amount 1318
2 of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on taxable property within the District; and WHEREAS, the District desires to approve and authorize the distribution of a Preliminary Official Statement (the “Preliminary Official Statement”) and a final Official Statement (the “Official Statement”) in connection with the Bonds; and
WHEREAS, in accordance with the requirements of Section 53345.8 of the Act and the policies of the City, the legislative body of the District shall determine that the value of the real property in the District subject to the special tax to pay debt service on the Bonds (the “Taxable Property”) be at least four (4) times the principal amount of the Bonds and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District; and
WHEREAS, BTI Appraisal (the “Appraiser”), a state-certified real estate appraiser as defined in Section 11340 of the California Business and Professions Code, has prepared an appraisal report of the Taxable Property, titled “Appraisal Report for Community Facilities District No. 2022-1 of the City of Chino Covering Tract 20369” (the “Appraisal”); and WHEREAS, the Appraisal states that the appraised value of the Taxable Property within the District is $124,016,113, which is not less than four (4) times the sum of the maximum principal amount of the Bonds ($13,000,000) plus the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act on the Taxable Property or a special assessment levied on the Taxable Property ($0); and
WHEREAS, set forth below are good faith estimates of Urban Futures Inc., the municipal advisor, as required under Section 5852.1 of the California Government Code (the “Code”). The following estimates have no bearing on, and should not be misconstrued as, any not to exceed financial parameters authorized by this resolution.
(a) The true interest cost of the Bonds is estimated at 5.1916% calculated as provided in Section 5852.1(a)(1)(A) of the Code.
(b) The finance charge of the Bonds, including all fees and charges paid to third parties, is estimated at $452,400.
(c) Proceeds of the Bonds received by the District for the sale of the Bonds are equal to $11,026,232.40.
(d) The total payment amount calculated as provided in Section 5852.1(a)(1)(D) of the Code is estimated at $24,380,555.56.

The foregoing estimates and the final costs will depend on market conditions and can be expected to vary from the estimated amounts set forth above.

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY

COUNCIL OF THE CITY OF CHINO, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2022-1 (FALLONCREST) OF THE CITY OF CHINO, AS FOLLOWS:

Section 1. Each of the above recitals is true and correct, as is each of the findings and determinations set forth therein, and each of said recitals, findings and determinations is adopted by the legislative body of the District.
1319
3 Section 2. The issuance of the Bonds in an aggregate principal amount not to exceed $13,000,000 is hereby authorized; and the exact principal amount to be issued shall be determined by the officer signing the Bond Purchase Agreement in accordance with Section 5 below. The Bonds shall mature on the dates and bear interest at the rates set forth in the Bond Purchase Agreement to be executed on behalf of the District in accordance with Section 5 hereof. The Bonds shall be governed by the terms and conditions of the Fiscal Agent Agreement between the District and The Bank of New York Mellon Trust Company, N.A. (the “Fiscal Agent”) dated as of July 1, 2025 (the “Fiscal Agent Agreement”). The Fiscal Agent Agreement shall be executed by one or more of the Mayor, City Manager or Director of Finance of the City (collectively, the “Authorized Officers”) and attested to by the City Clerk, substantially in the form presented at this meeting, with such additions thereto and changes therein as the officer or officers executing the same deem necessary (a) to cure any ambiguity or defect therein, if such addition or change does not materially alter the substance or content thereof, (b) to insert the offering price(s), interest rate(s), selling compensation, principal amount per maturity, redemption dates and prices and such other related terms and provisions as limited by Section 4 hereof, or (c) to conform any provisions therein to the Bond Purchase Agreement or the Official Statement delivered to the purchasers of the Bonds. Approval of such changes shall be conclusively evidenced by the execution and delivery of the Fiscal Agent Agreement by one or more Authorized Officers. Capitalized terms used in this Resolution which are not defined herein have the meanings ascribed to them in the Fiscal Agent Agreement.

Section 3. The Bonds shall be executed on behalf of the District by the manual or facsimile signature of the Mayor and attested with the manual or facsimile signature of the City Clerk, and by the Fiscal Agent for the Bonds.

Section 4. The covenants set forth in the Fiscal Agent Agreement are hereby approved and shall be deemed to be covenants of the City Council, in its capacity as the legislative body of the District, and shall be complied with by the District and its officers.

Section 5. The form of the Bond Purchase Agreement presented at this meeting and the sale of the Bonds pursuant thereto are hereby approved, provided that the true interest cost on the Bonds does not exceed 6.00% and the discount at which the Underwriter purchases the Bonds (exclusive of original issue discount) does not exceed 1.35% of the principal amount thereof. Any one of the Authorized Officers is hereby authorized to execute the Bond Purchase Agreement, with such additions thereto and changes therein as the officer executing it may approve, such approval to be conclusively evidenced by the execution and delivery of the Bond Purchase Agreement. Each of the Mayor, or his designee, and the City Manager, or his designee, or the Director of Finance, or his designee, is authorized to determine the day on which the Bonds are to be priced in order to attempt to produce the lowest borrowing cost for the District and may reject any terms presented by the Underwriter if determined not to be in the best interest of the District.

Section 6. The form of the Continuing Disclosure Agreement presented at this meeting is hereby approved; and any one of the Authorized Officers is hereby authorized and directed to execute the Continuing Disclosure Agreement in the form hereby approved, with such additions therein and changes thereto as the Authorized Officer or Authorized Officers executing the same deem necessary to cure any defect or ambiguity therein if such change does not materially alter the substance or content thereof, with such approval to be conclusively evidenced by the execution and delivery of such Continuing Disclosure Agreement.

Section 7. The Preliminary Official Statement, in substantially the form presented to this meeting and made a part hereof is hereby approved, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, and the use of the Preliminary Official Statement in connection with the offering and sale of the Bonds is hereby authorized and approved.

The Authorized Officers are each hereby authorized to certify on behalf of the District that the 1320
4 Preliminary Official Statement is deemed final as of its date, within the meaning of Rule 15c2-12 (except for the omission of certain final pricing, rating and related information as permitted by Rule 15c2-12).

Section 8. The preparation and delivery of the Official Statement, and its use in connection with the offering and sale of the Bonds is hereby authorized and approved. The Official Statement shall be in substantially the form of the Preliminary Official Statement, with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name of the District, to execute the final Official Statement and any amendment or supplement thereto.

Section 9. The Director of Finance, or his designee, is authorized to provide for all services necessary to effect the issuance of the Bonds. Such services shall include, but not be limited to, obtaining legal services, fiscal agent services and any other services deemed appropriate by the Director of Finance, or his designee. The Director of Finance, or his designee, is authorized to pay for the cost of such services, together with other costs of issuance for the Bonds from the proceeds of the Bonds.

Section 10. The Mayor, City Manager, Director of Finance and the officers and staff of the City and the District who are responsible for the fiscal affairs of the District are hereby authorized and directed to take any actions and to execute and deliver any and all documents as are necessary to accomplish the issuance, sale and delivery of the Bonds in accordance with the provisions of this Resolution and the fulfillment of the purposes of the Bonds as described in the Fiscal Agent Agreement. Any document authorized herein to be signed by the City Clerk may be signed by a duly-appointed deputy city clerk or assistant city clerk.

PASSED AND ADOPTED by the City Council at a regular meeting held on the 15th day of July 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
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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 15th day of July 2025, by the following votes:

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

NATALIE GONZAGA, CITY CLERK
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1323

MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT
CITY COUNCIL MEETING DATE: JULY 15, 2025
TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS

SUBJECT
..titl e
Ability to Serve Letter and Out-of-Boundary Service Agreement for the provision of water and sewer service to the property located at 14901 Monte Vista Avenue, Chino Hills. ..end

RECOMMENDATION
..recommendation
1) Approve the issuance of an Ability to Serve Letter to the property located at 14901 Monte Vista Avenue, Chino Hills, subject to applicable City conditions and requirements; 2) Approve the Out-of-Boundary Service Agreement between the City of Chino and City of Chino Hills for the provision of water and sewer service to the subject property; and 3) authorize the City Manager to execute the necessary documents on behalf of the City. ..body

FISCAL IMPACT
There is no direct fiscal impact to the City’s General Fund. All costs associated with utility connections, plan check, and LAFCO processing will be fully reimbursed by the applicant. Upon connection to the public sewer and water systems, the following fees will apply:
 Sewer and Water Development Impact Fees (DIF): These one-time fees are assessed for all new connections to the City’s sewer system.
 Inland Empire Utilities Agency (IEUA) Sewage Facilities Development Fee (SFDF): onetime fee for a new sewer connection within the IEUA service area.  IEUA Water Connection Fee: one-time fee for a new or upsized water meter connection to a water distribution system within the IEUA service area.

In addition to one-time fees, property owners will be billed monthly for ongoing sewer and water service:
 Sewer Maintenance Fee (City)
 Wastewater Treatment Fee (pass-through to IEUA)
 Water Service Rates (City)

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
 Public Service Excellence through Internal and External Partnerships 1324
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: ABILITY TO SERVE LETTER AND OUT-OF-BOUNDARY SERVICE AGREEMENT

FOR THE PROVISION OF WATER AND SEWER SERVICE TO THE PROPERTY LOCATED AT 14901 MONTE VISTA AVENUE, CHINO HILLS.

PAGE: 2

BACKGROUND
On June 3, 2025, the City Council approved a revised policy governing utility connection for properties located within the City of Chino’s Sphere of Influence and Out-of-Boundary Service areas. This policy applies to parcels adjacent to the Chino city limits, including areas within the Cities of Chino Hills, Ontario, and Montclair. Under the revised policy, the Infrastructure Committee reviews proposed utility connections and may recommend that an “Ability to Serve” Letter and Out-of-Boundary service agreements be forwarded to the City Council for consideration.

In accordance with Government Code requirements, Out-of-Boundary utility service agreements between cities must also comply with applicable Local Agency Formation Commission (LAFCO) regulations. Because both the City of Chino and the City of Chino Hills are municipal water providers, these types of cross-jurisdictional arrangements are typically classified as a substitution of services, which may qualify for an exemption from the standard LAFCO contract approval process. However, formal exemption approval from San Bernardino LAFCO is still required and must be jointly pursued by both cities.

The William Warren Group (developer) is proposing a new development at 14901 Monte Vista Avenue, located at the southeast corner of Chino Hills Parkway and Monte Vista Avenue within the City of Chino Hills. The project entails the construction of a four-story, indoor self-storage facility, totaling approximately 62,950 square feet of leasable space across 741 units. The project site is currently a vacant parcel (Exhibit A).

ISSUES/ANALYSIS
The developer is requesting to connect to the City of Chino’s water and sewer systems due to the proximity and feasibility of Chino’s existing infrastructure.

For water service, the nearest potable water main maintained by the City of Chino Hills is approximately 900 feet south of the project site, at Monte Vista Avenue and Fairfield Ranch Road. Conversely, the City of Chino operates a water main running along Chino Hills Parkway, directly adjacent to the development site. Extending a water line south to reach Chino Hills infrastructure has been deemed financially unviable by the developer, prompting the request to connect to Chino’s system.

A similar situation exists for sewer service. Chino Hills’ closest sewer main is also located at Monte Vista Avenue and Fairfield Ranch Road, while Chino maintains a sewer main running directly along Monte Vista Avenue, adjacent to the project site. For efficiency and costeffectiveness, the developer is requesting to tie into Chino’s sewer line.

The proposed self-storage facility is expected to have a minimal impact on Chino’s utility systems. The building will include only four restrooms, and water usage is anticipated to be low.

Landscape irrigation needs will be met through a separate recycled water connection to an Inland Empire Utilities Agency (IEUA) main on Monte Vista Avenue. Correspondingly, sewer flows are also anticipated to be low, given the minimal water consumption associated with the facility.

The project would offer community benefits to the City of Chino. The City will receive one-time development impact fees, and cost-recovery fees for plan check, permitting, and inspection services associated with the project. Although the anticipated utility usage is relatively low, the project will still provide a consistent source of monthly service charges to the City. 1325
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: ABILITY TO SERVE LETTER AND OUT-OF-BOUNDARY SERVICE AGREEMENT

FOR THE PROVISION OF WATER AND SEWER SERVICE TO THE PROPERTY LOCATED AT 14901 MONTE VISTA AVENUE, CHINO HILLS.

PAGE: 3
As part of the request, the developer has also agreed to provide community benefits to the City of Chino by including public infrastructure improvements at the intersection of Monte Vista Avenue and Chino Hills Parkway east of the Chino Creek Channel (Exhibit B). These improvements will include the replacement of non-compliant curb ramps on the north side, adjustment of pedestrian push buttons and crosswalk striping, installation of a new ADAcompliant ramp on the south side, and potentially relocating the pedestrian button. Additionally, new sidewalk will be constructed to close an existing pedestrian access gap on the south side of Chino Hills Parkway, between the drainage channel and approximately 100 feet east of the intersection. As part of these improvements, the developer will also modify the existing striping and traffic signal loops at the intersection to enhance maneuvering space for vehicles making turning movements.

Regarding potential impacts to local businesses, the developer completed a survey of nearby storage facilities and identified six existing competitors in the area. The nearest facility, “A Storage Place”, is approximately 1.2 miles away near Dupont Avenue and El Prado Road. The proposed facility is expected to primarily serve residents of Chino Hills west of the 71 Freeway, rather than competing directly with existing businesses in Chino. The developer also noted that the new facility would offer indoor, climate-controlled storage units, which are not commonly available in Chino, where many facilities feature drive-up, non-climate-controlled units.

The proposed development and utility connection requests were presented to the Infrastructure Streets Committee on March 31 and June 24, 2025. Following review, the Committee recommended that the proposal move forward for City Council consideration. Based on this recommendation, City staff supports approval of an Ability to Serve Letter and an Out-ofBoundary Service Agreement for water and sewer connections to the proposed development at 14901 Monte Vista Avenue in the City of Chino Hills.

If the City Council approves the issuance of the Ability to Serve Letter and approval of the Outof-Boundary Utility Service Agreement, the City of Chino Hills will take corresponding action to approve and execute the agreement. Upon full execution by both agencies, a request for exemption from formal contract approval will be submitted to LAFCO by the City of Chino Hills in accordance with Government Code Section 56133(e). As stated earlier, The proposed utility arrangement qualifies as a substitution of services between two municipal water providers and, therefore, is eligible for exemption from LAFCO’s standard review process. Additionally, LAFCO has confirmed that environmental documentation under CEQA is not required for exemption consideration in this case.

Attachments:
 Exhibit A – Location Map
 Exhibit B – Community Benefits
 Exhibit C – Ability to Serve Letter
 Exhibit D – Out-of-Boundary Service Agreement
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1327
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EUNICE M. ULLOA KAREN C. COMSTOCK
Mayor CHRISTOPHER FLORES

MARC LUCIO
Council Members
CURTIS BURTON DR. LINDA REICH
Mayor Pro Tem City Manager
CITY of CHINO
13220 Central Avenue, Chino, California 91710
Mailing Address: P.O. Box 667, Chino, California 91708-0667 (909) 334-3250 • (909) 334-3720 Fax
Web Site: www.cityofchino.org
July 15, 2025
William Warren Group
Attn: Parker Schoop, Real Estate Associate
[email protected]
Subject: Conditional Ability to Serve Letter - Sewer & Water Services for StorQuest SelfStorage, Chino Hills, CA To Whom It May Concern:

This letter confirms that on July 15, 2025, the Chino City Council formally approved the issuance of a Conditional Ability to Serve Letter and authorized execution of an Out-of-Boundary Utility Service Agreement with the City of Chino Hills. This agreement supports the provision of municipal sewer and water services for the proposed StorQuest indoor self-storage facility, located at the southeast corner of Chino Hills Parkway and Monte Vista Avenue, within the City of Chino Hills.

As the subject site lies outside the City of Chino’s corporate boundaries and beyond its Sphere of Influence, the request was reviewed under the City’s adopted Out-of-Boundary Utility Service policy. The City Council’s approval allows for utility service to be extended under a cooperative interjurisdictional agreement with the City of Chino Hills.

The proposed facility, to be developed by The William Warren Group (WWG), will connect to the City of Chino’s existing 10-inch water main along Chino Hills Parkway and the existing 12-inch sewer main along Monte Vista Avenue. Water usage is expected to be minimal and sewer flows limited due to the nature of commercial storage use. Landscape irrigation will be provided via a separate recycled water connection to an Inland Empire Utilities Agency (IEUA) main in Monte Vista Avenue.

Community Benefit Commitments
As part of this agreement, the applicant has voluntarily committed to constructing a series of public right-ofway improvements located within the City of Chino, east of the Chino Creek Channel at the intersection of Monte Vista Avenue and Chino Hills Parkway. These improvements address existing accessibility and pedestrian safety deficiencies in the area and include:
 Replacement of non-compliant curb ramps
 Installation of a new ADA-compliant curb ramp
 Upgraded pedestrian push buttons and crosswalk striping  Closure of an existing sidewalk gap along the south side of Chino Hills Parkway  Intersection improvements, including lane restriping, installation of traffic signal loops, and pavement restoration.
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July 15, 2025

Page 2 of 2 ends

These improvements will be constructed at the applicant’s sole cost and are considered a valuable benefit to the local community, promoting safer pedestrian circulation and enhancing regional connectivity.

Next Steps
Upon execution of the agreement by both agencies, the City of Chino Hills will submit a request to the San Bernardino County Local Agency Formation Commission (LAFCO) for exemption from formal contract approval, pursuant to Government Code Section 56133(e). As this represents a substitution of services between two municipal providers, the project qualifies for exemption from LAFCO’s standard review. LAFCO has also confirmed that no CEQA environmental documentation is required for this exemption.

Please note that while the City Council has approved the issuance of this letter and the corresponding agreement, utility connections remain contingent upon full execution of the agreement by both parties and satisfaction of all related conditions. Any entitlements or permitting activities pursued based on this letter are undertaken at the applicant’s own risk.

Should you have any questions regarding this letter or the City’s interjurisdictional service policies, please contact Sylvia Ramos with the City of Chino Public Works Department at (909) 334-3418 or via email at [email protected].

Sincerely,
Jesus Plasencia, P.E.

Assistant City Engineer
City of Chino
1330
1 AGREEMENT FOR OUT-OF-BOUNDARY

SEWER AND WATER SERVICES
14901 Monte Vista Avenue
This Agreement for Out-of-Boundary Sewer and Water Services (“Agreement”) is dated for reference purposes as of July 15, 2025, by and between the CITY OF CHINO, a California municipal corporation located in San Bernardino County, California (“Chino”), and the CITY OF CHINO HILLS, a California municipal corporation located in San Bernardino County, California (“Chino Hills”). Chino and Chino Hills are sometimes hereinafter referred to individually as “party” and collectively as “parties.”

RECITALS
A. The real property that is the subject of this Agreement is located at 14901 Monte Vista Avenue, at the southeast corner of Chino Hills Parkway and Monte Vista Avenue, within the jurisdictional boundaries of the City of Chino Hills, County of San Bernardino, State of California.

The property consists of a vacant parcel proposed for development with a four-story, fully-enclosed indoor self-storage facility, comprising approximately 63,725 square feet of leasable area across 745 storage units (“Project”). The Project site is more particularly identified and depicted in Exhibit A, attached hereto and incorporated herein by this reference (the “Property”).

B. Chino Hills does not currently maintain or operate municipal water or sewer utility infrastructure in the immediate proximity of the Property. With respect to domestic water service, the nearest potable water main under the ownership and maintenance of Chino Hills is located approximately 900 linear feet south of the Property, at or near the intersection of Monte Vista Avenue and Fairfield Ranch Road. In contrast, Chino owns and operates a potable water transmission main situated within the public right-of-way of Chino Hills Parkway, immediately adjacent to the Property’s frontage.

C. A similar condition exists with respect to sanitary sewer service. The nearest public sewer main maintained by Chino Hills is likewise located approximately 900 linear feet to the south, at or near the intersection of Monte Vista Avenue and Fairfield Ranch Road. In contrast, Chino owns and maintains an existing twelve-inch diameter gravity sewer main located within the public right-of-way of Monte Vista Avenue, directly contiguous to the Property.

D. Chino Hills has approved entitlements for the Project. [14901 Monte Vista SP, LLC, a Delaware limited liability company] (“Property Owner”) will not develop or operate the Project unless water and sewer service is provided to the Property from the adjacent Chino municipal water and sewer mains.

E. In light of the foregoing conditions, Property Owner hereby requests the provision of municipal sewer and water service from Chino, pursuant to Section 56133 of the California Government Code and in accordance with the applicable policies, procedures, and exemption criteria established by the San Bernardino County Local Agency Formation Commission (“SBLAFCO”).
1331
2 F. Chino is willing to provide sanitary sewer and water services to the Property in accordance with the terms and conditions of this Agreement and as authorized under City of Chino City Council Resolution No. 2025-021, which permits Out-of-Boundary Service Agreements.

Final connection to Chino’s sewer and water systems shall be contingent upon the completion of off-site public improvements located within Chino, as agreed upon by Chino and Property Owner (“Off Site Improvements”). Property Owner will enter into a Public Improvement Agreement with Chino to ensure the timely construction and completion of the required Off Site Improvements.

Chino will not issue any encroachment permit for the sewer and water lateral connections until such time as the Public Improvement Agreement has been fully executed by both parties.

G. The provision of sewer and water services by Chino to the Property will not adversely impact sewer and water services to other Chino customers.

H. Pursuant to California Government Code section 56133, SBLAFCO must either approve an out-of-boundary service agreement or determine that the extra-jurisdictional service is exempt from Section 56133.

AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals, and in consideration of the terms, conditions, and covenants set forth herein, the parties agree as follows:

1. Chino Water and Sewer Service Details.

1.1. Subject to the terms and conditions set forth in this Agreement, Chino agrees to provide sanitary sewer and water services to the Property, as more fully described in the above Recitals. Chino Hills hereby consents to Chino’s provision of sewer and water services to the Property.

1.2. Property Owner shall be solely responsible for the preparation of all engineering plans, related technical documents, acquisition of all necessary permits, and the construction of all required improvements, including, without limitation, those improvements required as conditions of approval. All work to be performed within the jurisdiction of the City of Chino shall be completed in accordance with plans and specifications approved by Chino, as conditioned.

1.3. Property Owner and its successors in interest, are solely responsible for all costs, fees, and charges, including, without limitation, connection fees, improvement fees, installation fees, expansion fees, permit-related fees, and ongoing service fees and charges imposed or charged by Chino with respect to the sewer and water connections and services contemplated herein.

2. SBLAFCO Authorization. The parties will collaborate on requesting SBLAFCO’s approval of this Agreement pursuant to Government Code section 56133 or a determination by SBLAFCO that Section 56133 does not apply to the extra-jurisdictional sewer and water services contemplated herein.
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3 3. Statement of Acknowledgment. The parties agree that prior to commencement of any sewer and water services to the Property pursuant to this Agreement, Property Owner shall be required to execute the Acknowledgment and Consent by Owner(s) on the signature page of this Agreement and Property Owner and Chino shall execute the Statement of Acknowledgment and Agreement Regarding Sewer and Water Services Connection (“Statement of Acknowledgment”) in the form attached hereto as Exhibit B, incorporated herein by this reference. Thereafter, the Statement of Acknowledgment shall be recorded against the Property.

4. Effective Date. This Agreement will become effective as of the date it is approved by SBLAFCO pursuant to Government Code section 56133 or as of the date SBLAFCO determines in writing that Section 56133 does not apply to the extra-jurisdictional sewer and water services contemplated herein (the “Effective Date”).

5. Indemnification. Chino agrees to indemnify and hold harmless Chino Hills, its officers, officials, employees, and agents, from and against any and all claims, demands, liability, actions, causes of action, costs, expenses, attorneys’ fees, and obligations arising out of, or in any way connected with, any violation of law, ordinance, or regulation related to Chino’s service to the Property, and otherwise resulting from Chino’s acts or omissions with respect to the provision of sewer and water services to the Property from the Effective Date, and for so long as Chino continues to serve the Property.

6. Notices. Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal delivery, (ii) delivery by a reputable document delivery service, such as, but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice. A notice shall be deemed to have been given as of the date of personal service, or three days after the date of deposit of the same in the custody of the United States Postal Service. In addition to one of the three methods set forth above, the parties are encouraged to provide a copy of said notice by email to the email address listed below.

To Chino To Chino Hills
City of Chino City of Chino Hills
Attn: City Clerk Attn: City Clerk
13220 Central Avenue 14000 City Center Drive
Chino, CA 91710 Chino Hills, CA 91709
[email protected] [email protected]

7. Governing Law; Venue. This Agreement shall be construed and governed by the laws of the State of California. Any litigation concerning this Agreement shall take place in the Superior Court for the County of San Bernardino.
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4 8. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the parties hereto.

9. Entire Agreement. This Agreement is the complete, final, entire, and exclusive expression of the Agreement between the parties hereto and supersedes any and all other agreements, either oral or in writing, between the parties with respect to the subject matter hereof.

Each party to this Agreement acknowledges that no representations by any party which are not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement, shall be valid and binding.

10. No Oral Modifications. The terms of this Agreement may not be modified in any manner except by an instrument in writing executed by the parties hereto.

11. Counterparts; Electronic Signatures. This Agreement may be executed in duplicate originals, each of which is deemed to be an original, and may be executed in counterparts.

Electronically signed copies of this Agreement utilizing technology which conforms to the requirements in both Government Code Section 16.5 and 2 California Code of Regulations Section 22003 shall legally bind the parties to the same extent as original documents.

IN WITNESS WHEREOF, Chino and Chino Hills have entered into this Agreement as of the Effective Date.

CITY OF CHINO
______________________________
Eunice Ulloa, Mayor
Attest:
______________________________
Natalie Gonzaga, City Clerk
Approved as to form:
______________________________
Fred Galante, City Attorney
Approved as to content:
______________________________
Hye Jin Lee, Director of Public Works

CITY OF CHINO HILLS
_____________________________
Art Bennett, Mayor
Attest:
_____________________________
Cheryl Balz, City Clerk
Approved as to form:
_____________________________
Mark D. Hensley, City Attorney
ACKNOWLEDGMENT AND CONSENT BY PROPERTY OWNER:
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5 The undersigned is the owner(s) of the above-described Property, and the undersigned hereby acknowledges,
consents to, and agrees to abide by the terms of the foregoing Agreement for Out-of-Boundary Sewer and Water Services. ____________________________ _____________________________ Signature Signature
____________________________ _____________________________ Printed Name Printed Name
____________________________ _____________________________ Date Date
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EXHIBIT A
Legal Description of the Property
1336

EXHIBIT B
Form of Statement of Acknowledgment and Agreement
Regarding Sewer and Water Services Connections
1337
1 RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Chino
Attn: City Engineer
13220 Central Avenue
Chino, CA 91710
EXEMPT FROM FEES PER GOVERNMENT CODE § 27383

SPACE ABOVE LINE FOR RECORDER'S USE
APN NO. _______________

STATEMENT OF ACKNOWLEDGMENT AND AGREEMENT REGARDING

SEWER AND WATER SERVICE CONNECTIONS
This Statement of Acknowledgment and Agreement Regarding Sewer and Water Service Connections (“Agreement”) is entered into by and between the undersigned property owner named below (“Property Owner”) and the City of Chino, a California municipal corporation (“Chino”) as of ____________, 2025. Property Owner and Chino may be referred to herein individually as “party” and collectively as the “parties.”

RECITALS
A. The real property described in Exhibit 1, attached hereto and incorporated herein (the “Property”), lies within the sewer and water services boundary of the City of Chino Hills (“Chino Hills”), but outside the municipal boundaries of Chino.

B. Chino Hills does not currently maintain or operate municipal water or sewer utility infrastructure in the immediate proximity of the Property. With respect to domestic water service, the nearest potable water main under the ownership and maintenance of Chino Hills is located approximately 900 linear feet south of the Property, at or near the intersection of Monte Vista Avenue and Fairfield Ranch Road. In contrast., Chino owns and operates a potable water transmission main situated within the public right-of-way of Chino Hills Parkway, immediately adjacent to the Property’s frontage.

D. Chino Hills has approved entitlements for an indoor storage facility project on the Property (the “Project”).
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2 E. In light of the foregoing conditions, Property Owner hereby requests the provision of municipal sewer and water services from Chino to the Property, pursuant to Section 56133 of the California Government Code and in accordance with the applicable policies, procedures, and exemption criteria established by the San Bernardino County Local Agency Formation Commission (“SBLAFCO”).

I. Chino is willing to provide sanitary sewer and water services to the Property in accordance with the terms and conditions of this Agreement and as authorized under Chino City Council Resolution No. 2025-021, which permits Out-of-Boundary Service Agreements. Final connection to Chino’s sewer and water systems shall be contingent upon the completion of off-site public improvements located within Chino, as agreed upon by Chino and Property Owner and as generally described in Exhibit 2, attached hereto and incorporated herein (“Off Site Improvements”). Property Owner will enter into a Public Improvement Agreement with Chino to ensure the timely construction and completion of the required Off Site Improvements. Chino will not issue any encroachment permit for the sewer and water lateral connections until such time as the Public Improvement Agreement has been fully executed by both parties.

AGREEMENT
NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants, terms, and conditions set forth herein, as well as other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Service Details. Subject to the terms and conditions set forth in this Agreement, Chino agrees to provide sanitary sewer and water services to the Property, as further described in the above Recitals.

2. Terms and Conditions Regarding Provision of Sewer and Water Services by Chino.

2.1. Chino agrees to furnish, and Property Owner agrees to accept, sewer and water services to the Property in accordance with the terms and conditions in this Agreement and Chino’s applicable ordinances, rules, regulations, order, and policies.

2.2. Property Owner shall be solely responsible for the preparation of all engineering plans, related technical documents, acquisition of all necessary permits, and the construction of all required improvements, including, without limitation, those improvements required as conditions of approval. All work to be performed within the jurisdiction of the City of Chino shall be completed in accordance with plans and specifications reasonably approved by Chino, as conditioned.

2.3. Property Owner, and its successors in interest, are solely responsible for all costs, fees, and charges, including, without limitation, connection fees, improvement fees, installation fees, expansion fees, permit-related fees, and ongoing service fees and charges imposed or charged by Chino with respect to the sewer and water connections and services contemplated herein.
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3 2.4. The parties agree that sewer and water services under this Agreement are exclusively limited to the Property and that no additional connections other than that described herein may be made without the prior written approval of Chino. Chino has no obligation to provide any other service to the Property.

2.5. Property Owner agrees, on behalf of itself and its successors in interest, to timely pay Chino any monthly, yearly, or other periodic charges for the services, a sewer and water connection fees, plan check fees, inspection fees, capacity charges, and any other applicable onetime or recurring fees and charges in effect and paid by the owners of similarly situated real properties served by Chino at the rates established therefor by Chino, including any applicable penalties or interest lawfully imposed by Chino (“Fees and Charges”). Chino reserves the right to collect the Fees and Charges (or any delinquencies thereof) in any lawful manner, including, without limitation, having them collected on the property tax bill for the Property. [NTD: Can the currently applicable Fees and Charges be identified and specified here?]

2.6. Property Owner will comply with all applicable laws, statutes, ordinances, codes, rules, regulations, orders, and decrees of the United States, the State of California, the County of San Bernardino, the City of Chino Hills, the City of Chino, and any other political subdivision having jurisdiction over the Property, the work involved in the construction of the private lateral serving the Property, or the use of the sewer and water systems, including, without limitation, all applicable laws, rules and regulations governing discharges to the public sewer and water systems. Without limiting the foregoing, Property Owner shall not discharge any waste oil, acid, stormwater, or any other matter detrimental to Chino’s sewer and water systems or treatment process and shall otherwise comply with Chino’s requirements related thereto. If Property Owner makes any such non-permitted discharge, Chino may perform repairs, mitigation, or maintenance work at the expense of the Property Owner, and the Property Owner agrees to pay for such repair, mitigation, or maintenance work. Chino reserves the right to collect all such expenses incurred in any lawful manner, including, without limitation, having them collected on the property tax bill for the Property.

2.7. Property Owner agrees to indemnify, defend (with counsel reasonably acceptable to Chino), and hold the Chino harmless from and against any and all liability, loss, damage, costs, or expenses (including attorneys’ fees and costs) (collectively, “Claims”) arising from or as a result of Property Owner’s failure to comply with any provision of this Agreement, or occasioned wholly or in part by any act or omission of Property Owner or its officers, employees, contractors, subcontractors, and agents arising out of or in connection with this Agreement or the design, construction, installation, or use of the private lateral, except to the extent any Claim arises out of the grossly negligent or willful act or omission of an indemnified party. Should Chino be named in any suit, or should any Claim be brought against it by suit or otherwise, whether the same be groundless or not, arising out of this Agreement or the design, construction, installation, or use of the private lateral, Property Owner will defend Chino (at Chino’s request and with counsel satisfactory to Chino) and indemnify Chino for any judgment rendered against it or any sums paid out in settlement or otherwise. For purposes of this section, “Chino” includes the City of Chino and its officers, officials, employees, contractors, agents, and volunteers. Property Owner’s obligations under this section shall survive termination of this Agreement. 1340
4 2.8. Property Owner acknowledges and agrees that so long as this Agreement is in effect, Chino Hills is not responsible for providing any sewer and water services to the Property.

3. Term; Termination. This Agreement shall remain in full force and effect until and unless: (i) it is terminated by mutual agreement of the parties and that termination is consented to by Chino Hills, and (ii) the Property is connected to Chino Hills sewer and water systems in accordance with all applicable permits and approvals required by Chino Hills.

4. Time of the Essence. Time is of the essence is the performance of obligations of this Agreement.

5. No Precedent. Nothing contained in this Agreement shall be construed as representing the establishment of any precedent or the formation of any policy by Chino with respect to the provision of sewer and water services or any other service in the future to any out of boundary territory.

6. Binding on Successors and Assigns. All of the terms, conditions, and covenants hereof shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns and shall run with the land comprising the Property. This Agreement shall be recorded in the Official Records of the County of San Bernardino.

7. Force Majeure. Whenever performance is required of any party hereunder, that party shall use all due diligence to perform and take all necessary measures in good faith to perform; provided, however, that if performance is delayed at any time by reason of acts of God, war, sabotage, terrorism, civil unrest, riots, strikes, picketing, or other labor disputes, or damage to work in progress by reason of fire or other casualty or cause beyond the reasonable control of a party, then the time for performance as herein specified shall be appropriately extended by the amount of the delay so caused, provided the party requesting such delay provides prior notice to the other party describing the nature and circumstances of the delay within 20 days of occurrence of such delay.

8. Severability. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of the other provisions of this Agreement.

10. No Oral Modifications. The terms of this Agreement may not be modified in any manner except by an instrument in writing executed by the parties hereto.

11. Attorney Fees. In the event of any action or proceeding to enforce a term or condition of this Agreement, any alleged disputes, breaches, defaults, or misrepresentations in connection 1341
5 with any provision of this Agreement, or any action or proceeding in any way arising from this Agreement, the prevailing party in such action, or the non-dismissing party when the dismissal occurs other than by a settlement, will be entitled to recover its reasonable costs and expenses, including without limitation reasonable attorney fees and costs of defense paid or incurred in good faith. The “prevailing party,” for purposes of this Agreement, will be deemed to be that party who obtains substantially the result sought, whether by settlement, dismissal, or judgment.

12. Waiver. No waiver by either party of any default in performance on the part of the other party, or of a breach or series of breaches of the terms, covenants, or conditions of this Agreement, will constitute a waiver of any subsequent breach or a waiver of any term, covenant, or condition.

12. Notices. Any notices which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal delivery, (ii) delivery by a reputable document delivery service, such as, but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice. A notice shall be deemed to have been given as of the date of personal service, or upon receipt or first attempted delivery after deposit of the same in the custody of the United States Postal Service. In addition to one of the three methods set forth above, the parties are encouraged to provide a copy of said notice by email to the email address listed below.

To Chino To Property Onwer
City of Chino 14901 Monte Vista SP, LLC
Attn: City Clerk c/o William Warren Properties, Inc.
13220 Central Avenue 100 Wilshire Blvd., Suite 400
Chino, CA 91710 Santa Monica, CA 90401
[email protected] Attn: President
[email protected]

13. Default. Property Owner shall not be deemed to be in default under this Agreement unless Chino delivers written notice in reasonably detail of a failure by Property Owner to abide by the terms of this Agreement and Property Owner fails to correct such failure within thirty (30) days after delivery of the notice; provided, however, that if longer than thirty (30) days is reasonably required to correct such failure, then Property Owner shall not be deemed to be in default if Property Owner commences to correct such failure within thirty (30) days and proceeds with all reasonable diligence and continuity to complete such correction.

14. Counterparts; Electronic Signatures. This Agreement may be executed in duplicate originals, each of which is deemed to be an original, and may be executed in counterparts.

CITY OF CHINO
_____________________________
Linda Reich, City Manager
Attest:
_____________________________
Natalie Gonzaga, City Clerk
Approved as to form:
_____________________________
Fred Galante, City Attorney
Approved as to content:
______________________________
Hye Jin Lee, Director of Public Works

PROPERTY OWNER
14901 Monte Vista SP, LLC
By: _____________________________
Signature
_____________________________
Printed Name
_____________________________
Title
_____________________________
Signature
_____________________________
Printed Name
_____________________________
Title
1343
State of California
County of _____________________________
On _________________________ before me,
_________________________________________________________, (insert name and title of the officer)
personally appeared ______________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ______________________________ (Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
1344
State of California
County of _____________________________
On _________________________ before me,
_________________________________________________________, (insert name and title of the officer)
personally appeared ______________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

1. Rebuild curb ramps at Monte Vista Ave. to meet updated standards

2. Add a driveway for County access to the Chino Creek channel

3. Relocate pedestrian push buttons and crosswalk striping to align with new ramp design

4. Reconfigure travel lanes at the intersection of Monte Vista Avenue and Chino Hills Parkway by removing one left-turn lane and restriping to create one left-turn lane and one right-turn lane to improve truck turning movements
1347

MEMORANDUM

CITY OF CHINO

ADMINISTRATION DEPARTMENT
CITY COUNCIL MEETING DATE: JULY 15, 2025
TO: LINDA REICH, CITY MANAGER
FROM: JACKIE MELENDEZ, ASSISTANT CITY MANAGER

SUBJECT
..titl e
Professional Services Agreement – Land Acquisition and Development Program Management Services.
..end

RECOMMENDATION
..recommendation
Award a Professional Services Agreement with Jones Lang La Salle Americas, Inc. (JLL) for land acquisition and development project management, for up to a four-year term, with a total amount not to exceed $1,320,000 and authorize the City Manager to execute all necessary documents on behalf of the City.
..body

FISCAL IMPACT
The contract includes provisions for automatic annual renewals for up to four years, with a total not-to-exceed amount of $1,320,000. The initial allotment of $475,000 is incorporated into the adopted FY2025-26 Operating Budget and covers the first-year fees for JLL Project Management ($295,000) and Stantec ($180,000), as detailed in the fee schedule. Funding for subsequent years will be requested from the General Fund and is subject to City Council approval as part of the annual budget process.

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:
 Responsible Long-Range Planning
Revenue: Expenditure: 1009021-43650
Transfer In: Transfer Out:
1348
CITY COUNCIL MEETING DATE: JULY 15, 2025
TITLE: PROFESSIONAL SERVICES AGREEMENT - LAND ACQUISITION AND DEVELOPMENT PROGRAM MANAGEMENT SERVICES.

PAGE: 2

BACKGROUND
In 2012, the Heman G. Stark Youth Correctional Facility was closed by the State of California, leaving the site vacant for over a decade. Since that time, the city has actively engaged with the California Department of Corrections to explore potential future uses of the property. This led local legislators to draft SB 536, a co-authored bill by Senator Susan Rubio and Assemblymember Freddy Rodriguez to authorize the State to enter negotiations with the City to purchase the underutilized land. The landmark bill allowed the City to prioritize the growing needs of the community. In 2023, the City Council unanimously adopted a resolution to support legislation to begin the negotiating process for acquisition, with the intent to focus on community and stakeholder engagement, to develop a comprehensive plan that will benefit the entire community with the potential for agriculture, housing, entertainment and retail uses. Additional support from San Bernardino County Supervisor Curt Hagman, Chaffey College, Chino Valley Chamber of Commerce and the surrounding cities underscored the regional impact of SB 536.

ISSUES/ANALYSIS
On February 27, 2025, the City released a Request for Proposals RFP No. 2025-0004 via Planet Bids, in accordance with City procurement policies. Through PlanetBids, six prospective bidders downloaded the RFP documents; however, only one proposal was submitted by the closing date. Staff acknowledge that the limited response may be attributed to the specialized scope of work, which required experience in both destination advisory services and agricultural retail development. Executive leadership met with the respondent to review the scope based on:
 Experience/Qualifications
 Past Performance/References
 Plan Methodology/Project Approach
 Quality and Responsiveness of Proposal
 Cost Evaluation
JLL's engagement will provide the City with dedicated project management expertise with the focus in agrotourism, agriculture, housing, entertainment and retail uses. JLL will act as an extension of the Economic Development and Development Services Divisions. Their role will bring structure and continuity to a multifaceted initiative that would otherwise exceed internal capacity and staff resources.

JLL brings a nationally recognized team with expertise in community engagement, land feasibility, real estate economics, financing strategy, and public-private development structuring.

Therefore, staff recommends the City Council Award a Professional Services Agreement with Jones Lang La Salle Americas, Inc. (JLL) for land acquisition and development project management, for up to a four-year term, with a total amount not to exceed $1,320,000 and authorize the City Manager to execute all necessary documents on behalf of the City.

Attachment: Agreement
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Project Name/No.: ________________ Contract No.: ______________ Project Manager: ________________ Approved: ______________ 01225.0001/863604.2 (Long Form)

AGREEMENT FOR SERVICES

BETWEEN THE CITY OF CHINO AND
JONES LANG LASALLE AMERICAS, INC.

THIS AGREEMENT FOR SERVICES (herein “Agreement”) is made and entered into this 15 day of July, 2025 (“Effective Date”) by and between the City of Chino, a California municipal corporation (“City”) and Jones Lang LaSalle Americas, Inc., a commercial real estate and property investment company (“Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.”

RECITALS
A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the performance of the services defined and described particularly in Article 1 of this Agreement.

B. Consultant, following submission of a proposal or bid for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by the City to perform those services.

C. Pursuant to the City of Chino’s Municipal Code, City has authority to enter into and execute this Agreement.

D. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.

OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services.

In compliance with all terms and conditions of this Agreement, the Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to the City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Consultant covenants that it shall follow the highest professional standards in performing the work and services required hereunder 1350
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and that all materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances.

1.2 Consultant’s Proposal.

The Scope of Services shall include the scope of work included in Consultant’s proposal, which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern.

1.3 Compliance with Law.

Consultant shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered.

1.4 California Labor Law.

If the Scope of Services includes any “public work” or “maintenance work,” as those terms are defined in California Labor Code Section 1720 et seq. and California Code of Regulations, Title 8, Section 16000 et seq., and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws, as they pertain to such work, including the following requirements:
(a) DIR Monitoring and Enforcement. The public work and/or maintenance work performed under this Agreement shall be subject to compliance monitoring and enforcement by the Department of Industrial Relations (“DIR”). Consultant shall post job site notices, as prescribed by regulation.
(b) Prevailing Wages. Consultant shall pay prevailing wages to the extent required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested party on request. By initiating any work under this Agreement, Consultant acknowledges receipt of a copy of the DIR determination of the prevailing rate of per diem wages, and Consultant shall post a copy of the same at each job site where work is performed under this Agreement.
(c) Penalty for Failure to Pay Prevailing Wages. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Consultant shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined 1351
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by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subcontractor. (d) Payroll Records. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subcontractor to:
keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform the City of the location of the records. (e) Apprentices. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) days after concluding work pursuant to this Agreement, Consultant and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement. (f) Eight-Hour Work Day. Consultant acknowledges that eight (8) hours labor constitutes a legal day's work. Consultant shall comply with and be bound by Labor Code Section 1810.
(g) Penalties for Excess Hours. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Consultant shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code.

Pursuant to Labor Code section 1815, work performed by employees of Consultant in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay.
(h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. By executing this Agreement, and in accordance with the provisions of California Labor Code Section 1861, Consultant certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
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(i) Consultant’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Consultant shall be responsible for such subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Agreement. Consultant shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Consultant shall diligently take corrective action to halt or rectify any such failure by any subcontractor.

1.5 Licenses, Permits, Fees and Assessments.

Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement.

Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.6 Familiarity with Work.

By executing this Agreement, Consultant warrants that Consultant (i) has thoroughly investigated and considered the scope of services to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Consultant warrants that Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Consultant discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Consultant shall immediately inform the City of such fact and shall not proceed except at Consultant’s risk until written instructions are received from the Project Manager.

1.7 Software and Computer Services.

If the Scope of Services includes the provision and/or installation of any software, computer system, or other computer technology, Consultant represents and warrants that it has inspected the City’s current infrastructure, equipment, computer system and software and that the software, computer system, or other computer technology provided and/or installed by Consultant under this Agreement is compatible, and shall be fully functional, with such infrastructure, equipment, computer system and software of the City. Consultant acknowledges that the City is relying on the representation by Consultant as a material consideration in entering into this Agreement.

1.8 Care of Work.
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The Consultant shall adopt reasonable methods during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City’s own negligence.

1.9 Further Responsibilities of Parties.

Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other.

1.10 Additional Services.

City shall have the right, subject to state law and the City’s Municipal Code, at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Project Manager to the Consultant, incorporating therein any adjustment in (i) the Contract Sum for the actual costs of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Consultant. Any increase in compensation for extra work shall require the approval of City Council unless the City Council has previously authorized the City Manager to approve an increase in compensation and the amount of the increase does not exceed such authorization. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.

1.11 Special Requirements.

Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.

2.1 Contract Sum.

Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and 1354
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incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed One Million Three Hundred Twenty Thousand Dollars and Zero Cents ($1,320,000.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10.

2.2 Method of Compensation.

The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services, less contract retention; (iii) payment for time and materials based upon the Consultant’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained, and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation.

2.3 Reimbursable Expenses.

Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Project Manager in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City.

Coordination of the performance of the work with City is a critical component of the services. If Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending said meetings.

2.4 Invoices.

Each month Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of the Agreement. Consultant shall not invoice City for any duplicate services performed by more than one person.

All invoices shall be submitted by email to [email protected]. Each invoice is to include:
(a) Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate.
(b) Line items for all materials and equipment properly charged to the Services.
(c) Line items for all other approved reimbursable expenses claimed, with supporting documentation.
(d) Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services. 1355
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(e) If this Agreement requires prevailing wages, per Section 1.4 of the Agreement, all invoices shall include a copy of Consultant’s Certified Payroll and proof that Certified Payroll has been submitted to the DIR.

Consultant shall also submit a list of the prevailing wage rates for all employees and subcontractors providing services under this Agreement, as applicable, with Consultant’s first invoice. If these rates change at any time during the term of the Agreement, Consultant shall submit a new list of rates to the City with its first invoice following the effective date of the rate change.

City shall independently review each invoice submitted by the Consultant to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Consultant which are disputed by City, or as provided in Section 7.3, City will use its best efforts to cause Consultant to be paid within forty-five (45) days of receipt of Consultant’s correct and undisputed invoice; however, Consultant acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

2.5 Waiver.

Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.

2.6 Contingency of Funds.

Consultant acknowledges that funding or portions of funding for this Agreement may be contingent upon State budget approval; receipt of funds from, and/or obligation of funds by the State of California to City; or inclusion of sufficient funding for the services hereunder in the budget approved by Chino City Council for each fiscal year covered by this Agreement. If such approval, funding or appropriations are not forthcoming, or are otherwise limited, City may immediately terminate or modify this Agreement without penalty.

ARTICLE 3. PERFORMANCE SCHEDULE

3.1 Time of Essence.

Time is of the essence in the performance of this Agreement.

3.2 Schedule of Performance.

Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this 1356
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reference. When requested by the Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Project Manager but not exceeding one hundred eighty (180) days cumulatively.

3.3 Force Majeure.

The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Consultant shall within ten (10) days of the commencement of such delay notify the Project Manager in writing of the causes of the delay. The Project Manager shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Project Manager such delay is justified. The Project Manager’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of the Agreement pursuant to this Section.

3.4 Term.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, which shall be no later than June 30, 2029, except as otherwise provided in the Schedule of Performance (Exhibit “D”).

ARTICLE 4. COORDINATION OF WORK

4.1 Representatives and Personnel of Consultant.

The following principals of Consultant (“Principals”) are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:

Dan Fenton Managing Director
(Name) (Title)
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement.

Therefore, the foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the foregoing Principals may not be replaced nor may their responsibilities be substantially reduced 1357
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by Consultant without the express written approval of City. Additionally, Consultant shall utilize only competent personnel to perform services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement.

Consultant shall notify City of any changes in Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance.

4.2 Status of Consultant.

Consultant shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Consultant, nor any of Consultant’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Consultant expressly waives any claim Consultant may have to any such rights.

4.3 Project Manager.

The Project Manager shall be Rhonesia Perry or any other person as may be designated by the Project Manager. It shall be the Consultant’s responsibility to assure that the Project Manager is kept informed of the progress of the performance of the services and the Consultant shall refer any decisions which must be made by City to the Project Manager. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Project Manager. The Project Manager shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.

4.4 Independent Consultant.

Neither the City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Consultant’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant.

4.5 Prohibition Against Subcontracting or Assignment.
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The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Consultant or any surety of Consultant of any liability hereunder without the express consent of City.

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages.

Without limiting Consultant’s indemnification of City, and prior to commencement of any services under this Agreement, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City.
(a) General liability insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(b) Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, nonowned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
(c) Professional liability (errors & omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement. (d) Workers’ compensation insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
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(e) Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein.
(f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”.

5.2 General Insurance Requirements.
(a) Proof of insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(b) Duration of coverage. Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, its agents, representatives, employees or subconsultants. (c) Primary/noncontributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured.
(d) City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (e) Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
(f) Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow 1360
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Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(g) Enforcement of contract provisions (non-estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(h) Requirements not limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (i) Notice of cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(j) Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(k) Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (l) Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass through clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review. 1361
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(n) Agency’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation.
(o) Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(p) Timely notice of claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(q) Additional insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

5.3 Indemnification.

To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Consultant will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith;
(b) Consultant will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Consultant hereunder; and Consultant agrees to save and hold the City, its officers, agents, and employees harmless therefrom;
(c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Consultant for such damages or other claims 1362
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arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Consultant hereunder, Consultant agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees.

Consultant shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Consultant shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Consultant in the performance of professional services hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Consultant and shall survive termination of this Agreement.

ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION

6.1 Records.

Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Project Manager to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Project Manager shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Consultant’s business, custody of the books and records may be given to City, and access shall be provided by Consultant’s successor in interest. Notwithstanding the above, the Consultant shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.

6.2 Reports.

Consultant shall periodically prepare and submit to the Project Manager such reports concerning the performance of the services required by this Agreement as the Project Manager shall require. Consultant hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein 1363
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or, if Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Project Manager of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed.

6.3 Ownership of Documents.

All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Project Manager or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Consultant will be at the City’s sole risk and without liability to Consultant, and Consultant’s guarantee and warranties shall not extend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant shall have the right to use the concepts embodied therein.

All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, Consultant with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City.

6.4 Confidentiality and Release of Information.
(a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Project Manager.
(b) Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Project Manager or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives City notice of such court order or subpoena. (c) If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. (d) Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice 1364
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of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law.

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.

7.2 Disputes; Default.

In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Consultant’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement.

7.3 Retention of Funds.

Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of 1365
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City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Consultant to insure, indemnify, and protect City as elsewhere provided herein.

7.4 Waiver.

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 constitute 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 Consultant 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.

7.5 Rights and Remedies are Cumulative.

Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

7.6 Legal Action.

In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.

7.7 Liquidated Damages.

Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Consultant and its sureties shall be liable for and shall pay to the City the sum of Four Hundred Seventy-Five Thousand Dollars and Zero Cents ($475,000.00) as liquidated damages for each working day of delay in the performance of any service required hereunder. The City may withhold from any monies payable on account of services performed by the Consultant any accrued liquidated damages.

7.8 Termination Prior to Expiration of Term.

This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Consultant, 1366
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except that where termination is due to the fault of the Consultant, the period of notice may be such shorter time as may be determined by the Project Manager. In addition, the Consultant reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Consultant may determine. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Project Manager. Except where the Consultant has initiated termination, the Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Project Manager thereafter in accordance with the Schedule of Compensation or such as may be approved by the Project Manager, except as provided in Section 7.3. In the event the Consultant has initiated termination, the Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2.

7.9 Termination for Default of Consultant.

If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated.

7.10 Attorneys’ Fees.

If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees.

No officer or employee of the City shall be personally liable to the Consultant, 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 Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.
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8.2 Conflict of Interest.

Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Project Manager. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.

No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which affects her/his financial interest or the financial interest of any corporation, partnership or association in which (s)he is, directly or indirectly, interested, in violation of any State statute or regulation. The Consultant 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.

8.3 Covenant Against Discrimination.

Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.

8.4 Unauthorized Aliens.

Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City.

ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices.

Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City 1368
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Manager and to the attention of the Project Manager (with her/his name and City title), City of Chino, 13220 Central Avenue, Chino, California 91710 and in the case of the Consultant, to the person(s) at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

9.2 Interpretation.

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.

9.3 Counterparts.

This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

9.4 Integration; Amendment.

This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Consultant and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

9.5 Severability.

In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless.

9.6 Warranty & Representation of Non-Collusion.

No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of 1369
01225.0001/863604.2 21
“financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Consultant warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement.

Consultant further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Consultant is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.

Consultant’s Authorized Initials _______

9.7 Corporate Authority.

The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE]
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01225.0001/863604.2 22
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written.

CITY:

CITY OF CHINO, a municipal corporation
Linda Reich, City Manager
ATTEST:

Natalie Gonzaga, City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
_____________________________
Fred Galante, City Attorney
CONSULTANT:

Jones Lang LaSalle Americas, Inc.

By:

Name: Dan Fenton
Title: Managing Director
Address:

Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. 1371
01225.0001/863604.2 A-1
EXHIBIT “A”

SCOPE OF SERVICES
I. Consultant will perform the Services described in Consultant’s Proposal, attached hereto as Exhibit A-1.

II. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City.
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Jones Lang LaSalle Americas, Inc.

Hotels & Hospitality Group
330 Madison Avenue 4th Floor ⬧ New York, New York 10017 ⬧ (609) 457-5361

LAND ACQUISTION AND DEVELOPMENT

SCOPE OF WORK
* * *
EXHIBIT A-1
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Jones Lang LaSalle Americas, Inc.

Hotels & Hospitality Group

Page 2 of 10 ends

Chino City CouncilJuly 15, 2025

Chino City Council
July 15, 2025