Chino City Council
March 24, 2026

S
everal manufacturers’ information will need to be checked for their recommendations including pipe bedding and we will need to review the available geotechnical data for the proposed/existing pavement section on Russell. We will include the conceptual street cross section showing the two City standards and the impact on the pipeline cover. This information will be combined with the potholing results to optimize the proposed pipeline profile with a brief report to the City summarizing the findings and to get City confirmation of the preferred alternative.

Incorporate the Russell line into Walnut PS&E
H&A will update and revise the existing proposed plan and profile based on our investigations and put it (and details for the connections at each end) into the present Walnut plan set, expand the cost estimate to include the Russell facilities and adjust any necessary technical specifications.

Potholing along Russell Avenue
H&A has obtained a cost from Boudreau for the potholes and we have included H&A efforts to survey the locations, process the field data and augment the plan and profile drawing (see attached exhibit).

CCTV along Walnut Avenue
H&A has obtained a cost from National Plant Services for CCTV investigation to locate existing laterals, and we have included H&A efforts to survey the locations, process the field data and augment the plan and profile drawing. We have reduced the initial scope by 50% since we only need the sewer laterals that cross the proposed waterline and not laterals on both sides. As noted in an earlier email, the City can delete this work and include a bid item to address sewer lateral crossings with a unit price basis; however, with the reduced scope and related cost, we believe that this is the more cost-effective strategy.

SCADA Conduits for PRV at Monte Vista and Walnut
H&A will develop a design detail for a set of 3 conduits 4-inch PVC from new cored holes in vault wall of existing PRV vault to new pullbox behind sidewalk and outside of curb return/curb ramp area. NOTE: Existing PVC pipeline at PRV vault has only 3’-3” of cover and conduits will pass above the pipeline (see attached exhibit) Delete 700 feet Walnut waterline from Central to Tenth
H&A will reduce the scope and budget to address this reduction.

Bid and Construction Support (Russell only)
This task includes response to RFI’s and review of submittals as requested by City staff. No attendance at meetings, conference calls or site visits and no involvement in addendums or change orders unless caused by errors and omissions by Hunsaker (those will be done at no charge to the City). Electronic drafting will be done of changes made during construction A2-2 271

from a single redline (combined comments by all involved and inconsistencies resolved) with CAD file provide to City.

Miscellaneous Services
This task is to provide some flexibility for City staff to accommodate minor scope changes that require small budget shifts. Funds will only be used with prior written authorization of City staff.

These tasks cover the added efforts in other areas such as coordination with City staff that are part of the original contract scope, with the exception of the hydraulic modeling being limited to Walnut Avenue pipeline only. The intended outcome is a complete and seamless PS&E package including Walnut Avenue and Rusell Avenue improvements.

Note that 40% of the cost of this amendment is for subconsultant efforts (potholing and CCTV investigation).

Upon approval of this contract amendment, it will require 6-8 weeks to “catch up” with the original construction documents. A major portion of that time is related to the potholing and CCTV efforts which must be done before detailed design can proceed.

We are looking forward to continuing our service to the City of Chino and working with you on this very important project. Should you have any questions, please contact me via email at [email protected] or by phone at (949) 293-6537.

Very truly yours,
HUNSAKER & ASSOCIATES IRVINE, INC.

Rich Norton, PE
Project Manager
A
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Proposed Waterline
Alignment
Legend
Proposed Alignment Location
Assumed Potholing Location
Existing waterline
connection shall be
fully exposed and
identified as tee or
cross
A2-11 280
3 PVC CONDUITS 4
INCH DIA. 8

INCHES CENTER

TO CENTER
Exhibit #2 For Contract Amendment

WALNUT WATER LINE REPLACEMENT
Hunsaker 2/24/26
A2-12 281
Responsible Cost per
Party Lateral
CCTV investigation $525.00 quote from National Plant Services H&A markup on subs $52.50 10% of raw cost
Locate field marking $87.50 1/4 hour @ $350.00 2 man crew Process field data and plot $50.00 1/4 hour @ $200.00 engineer TOTAL PER LATERAL $715.00 Conservative production 1 per hour rounded to $700/lateral
Walnut laterals 20 $14,000.00APN's counted on draft drawing Monte Vista to Central minus 10
laterals shown on BA-0859 dwg.

Laterals to one side xing waterline
LATERAL LOCATING COST - Chino Walnut Ave Water Lines 2/9/26 NotesDescriptionC2-1
E
XHIBIT "C-2"
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Engineer CAD Tech. Survey
Office Staff 1 person 2 person 3 person CCTV POTHOLING
DESCRIPTION LEAD FIRM $240 $220 $200 $200 $200 $270 $350 $420 MAN-HOURS LABOR COST EXPENSES NATIONAL PLANT SER. BOUDREAU
H&A 3 24 8 35 $7,060 $0 $0 $0 $7,060
H&A 1 24 32 57 $11,420 $0 $0 $0 $11,420
POTHOLING - Russell Only and survey markings H&A 1 2 4 4 8 19 $5,020 $2,400 $0 $24,000 $31,420 16 potholes @ $1,500 each
CCTV - Walnut (Monte Vista to Central one side) and survey markingsH&A 1 2 4 6 12 25 $6,820 $1,400 $14,000 $0 $22,220

SUBCONSULTANT
H&A 3 12 24 39 $7,860 $0 $0 $0 $7,860
H&A 0 0 -20 -20 -$4,000 $0 $0 $0 -$4,000
H&A 2 24 24 50 $10,040 $0 $0 $0 $10,040
H&A 0 0 0 0 $0 $0 $0 $0 $8,600
11 88 76 10 - 20 - 205 $44,220 $94,620TOTAL BUDGET

AMENDMENT

PROPOSAL

TOTAL TASK
COST
Principal Project
Manager
SUBCONSULTANTSField Survey
Labor Hours by Classification
Hunsaker & Associates
Incorporate Russell into Walnut PS&E- add 1 plan
and profile sht and 1 detail dwg to Walnut set
Miscellaneous added design services as directed
by City staff (10% of total)
3/2/26
Investigate engineering solutions for Russell
includng vertical cover, clearances, pipe material,
bedding scenarios
CHINO Walnut Street Waterline

COST BREAKDOWN SPREADSHEET
Detail SCADA conduits and pullbox to PRV at
Walnut and Monte Vista & coord with City staff
Delete 700' Walnut plan and profile from Central to
Tenth
Russell responses to RFI’s and review of
submittals as requested by City staff and as-builts
260302 CHINO Waterline - Cost Breakdown.xlsC 2-2
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MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 24, 2026

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

SUBJECT
..titl e
Final Acceptance of Public Improvements for Tract Map No. 20166 (Block 4) KB Homes Coastal, Inc.
..end

RECOMMENDATION
1) Accept public improvements as complete for Tract Map No. 20166; 2) authorize release of the performance bond and initiate the warranty bond; and 3) authorize the City Manager to execute the necessary documents on behalf of the City.
..body

FISCAL IMPACT
There are sufficient funds included in the City’s Operating Budget to support the ongoing maintenance activities related to the public improvements being accepted.

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
 Public Service Excellence through Internal and External Partnerships

Revenue: Click or tap here to enter text.

Expenditure:

Transfer In: Click or tap here to enter text. Transfer Out: Click or tap here to enter text. 284
CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT MAP NO. 20166 (BLOCK 4) KB HOMES COASTAL, INC.

PAGE: 2

BACKGROUND
On August 5, 2019, the Planning Commission approved Chino Preserve Development Corporation’s (master developer in The Preserve) applications fo r Master Site Approval and Tentative Tract Map No. 201 64, an “A” level subdivision for conveyance purposes and the master plan authorizing up to 388 residential units (the Block 4 Project). An “A” level subdivision functions as the master -level map for a project, establishing the overall planning areas, circulation network, and development framework, and allowing future “B” level tentative tract maps to be processed consist ent with the approved master plan. The Block 4 Project is generally located at the north east corner of Hellman Avenue and Legacy Park Street. (Exhibit A)
Tract Map No. 2016 4 created nine numbered lots and twelve lettered lots to establish the planning ar eas and support s ix future “B” level tentative tract maps. As part of the Block 4 approvals, Tentative Tract Maps 20165, 20166, 20167, 20168, 20248 , and 20249 were subsequently approved to allow development by guest homebuilders.

KB Homes Coastal , Inc. (“Builder”) purchased Tract No. 201 66, a “B” level map authorizing development of 69 residential units on approximately 9.06 adjusted gross acres.

The Engineering Conditions of Approval (“COA”) for Tract Map No. 20166 required the Builder to design and construct certain public improvements on Reflection Street, Forerunner Court, Pacesetter Court, Searcher Street, and Globetrotter Avenue, including, but not limited to, sidewalk, curb ramps, asphalt concrete overlay, streetlights, park way landscaping, signing and striping, sewer, storm drain, and domestic water improvements. To secure these obligations, the Builder executed a Subdivision Improvement Agreement and posted the required securities, which the City Council approved on July 20 , 2021 (Exhibit B). All costs associated with the design and construction of the required improvements were fully borne by the applicant; therefore, there is no direct fiscal impact to the City.

Tract Map No. 20166 is included in the Settlement Agreement a pproved by the City Council on November 15, 2022. This tract falls under Category C, which applies to parcels approved on or after January 1, 2017. Under Category C, the Builder must comply with the City’s ADA Policy on Pedestrian Facilities (adopted Decem ber 3, 2019) per the settlement agreement and the ADA Policy at that time . When all improvements are properly constructed and meet ADA requirements, the City Council will accept them as complete.

The public improvements for this project were completed in accordance with the approved plans and to the satisfaction of Public Works staff. The project reached substantial completion in May 2025. Between May 2025 and February 2026 , the contractor and project manager coordinated with the City’s project engineer to address various administrative items included in the final punch list to close out the project, including as -built drawings, grading certificate, compaction report, CAD/GIS files, and backflow certification. All outstanding punch list items have since been completed to the City’s satisfaction.

ISSUES/ANALYSIS
The public improvements being accepted by the City of Chino, as described above, are included as shown on Exhibit C. The public improvements completed have been constructed in compliance with the City’s standards/specifications, including accessibility requirements, and to the satisfaction of the Public Works Inspector. All public improvements that were part of the COA for this project were fully funded by the Builder.
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CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT MAP NO. 20166 (BLOCK 4) KB HOMES COASTAL, INC.

PAGE: 3

Security for a one -year warranty period has been submitted to the City. Under the warranty bond obligation, the Builder will correct any defects found within one year of the City Council’s acceptance of the Project. Also, upon completion and final acceptance, the public improvements shall become the sole exclusive property of the City to operate and maintain. The following maintenance obligations will commence following acceptance of the public improvements . For clarity, the Preserve Master Maintenance Corporation (PMMC) will be responsible for the maintenance of the public streetlights:

Domestic Water: By the City
Storm Drain / Catch Basins By the City
Public Sewer: By the City
Public Street Sweeping: By the City
Public Streetlights: By the PMMC

Attachments: Exhibit A - Vicinity Map
Exhibit B - Subdivision Improvement Agreement
Exhibit C - Public Improvements Atlas

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ENGINEERING CONSULTANTS200 South Main Street, Suite 300 Corona, CA 92882 (951) 280-3300 LEGEND:

EXHI
BIT C

PUBLIC IMPROVEMENTS ATLAS
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MEMORANDUM

CITY OF CHINO

DEVELOPMENT SERVICES DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 24, 2026

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

SUBJECT
..titl e
Joint Exercise of Powers Agreement – San Bernardino Regional Housing Trust (SBRHT). ..end

RECOMMENDATION
..recommendation
1) Adopt Resolution 2026-020 approving a Joint Exercise of Power s Agreement (“Agreement”) with the San Bernardino Regional Housing Trust (SBRHT) ; 2) appropriate $25,00 0 from th e Affordable Housing Fund 310 for annual membership fees; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
..body

FISCAL IMPACT
Requires an appropriation in the amount of $25,000 from the available FY 2025 -26 Affordable Housing Fund 310 Budget Surplus.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above will further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
 Positive City Image
 Financial Stability
 Responsible Long-Range Planning
 Exemplary Leadership
 Public Service Excellence through Internal and External Partnerships

Revenue:

Expenditure: 3106210-43310
Transfer In: Transfer Out:
359
CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: JOINT EXERCISE OF POWERS AGREEMENT - SAN BERNARDINO REGIONAL HOUSING TRUST (SBRHT).

PAGE: 2

BACKGROUND
California continues to face a significant housing supply and affordability crisis driven by high land costs, rising construction expenses, limited financing options, and regulatory complexity.

These statewide challenges have manifested at the local and re gional levels, contributing to a constrained housing supply, increased homelessness, and broader economic impacts.

In 2021, the City/County Managers Technical Advisory Committee (CCMTAC) of the San Bernardino Council of Governments (SBCOG) formed an Ad Hoc Subcommittee to evaluate the feasibility of establishing a regional housing trust fund for San Bernardino County. In January 2022, SBCOG released the San Bernardino Regional Housing Trust White Paper , which outlined potential benefits, organizational structures, and relevant case studies.

Subsequently, SBCOG developed a Strategic Plan for the proposed regional housing t rust, identifying regional housing needs, potential funding sources, financing tools, and programmatic activities. Throughout 2022 and 2023 , SBCOG conducted extensive outreach involving local jurisdictions, elected officials, planning and housing staff, developers, and housing administrators. Based on this work, SBCOG recommended that a regional housing trust be established as a Joint Powers Authority (JPA) comprised of local jurisdictions within the region.

In April 2023, the SBCOG Board of Directors authorized the formation of the San Bernardino Regional Housing Trust, including development of a Joint Exercise of Powers Agreement. To date, 19 jurisdictions, including the City of Chino, have expressed intent in participating.

ISSUES/ANALYSIS
As the City of Chino works to rebuild and expand its Housing and Neighborhood Revitalization programs, it faces challenges related to both organizationa l capacity and access to sufficient funding. While staff is actively pursuing multiple funding sources, it is unlikely that any single program or funding stream will fully address the City’s housing needs. A regional approach offers an opportunity to augme nt local efforts through shared expertise and leveraged resources.

Benefits of Participation
The SBRHT is designed to provide a coordinated, regional approach to addressing housing needs throughout San Bernardino County by raising and leveraging public and private funds, with a focus on affordable housing production and preservation. Participation in the JPA would:
 Expand access to state, federal, and private funding opportunities;  Support affordable housing projects within the City of Chino and throughout the region;  Provide regional coordination and administrative capacity for complex housing programs;
 Increase the region’s attractiveness to housing developers and investors; and  Ensure local representation and policy influence through JPA governance.

The Trust’s potential to leverage external funding has already been demonstrated. SBRHT was recently awarded $5 million in State funding through the Regional Early Action Planning (REAP)

2.0 Lasting Affordability Program, underscoring the value of regional col laboration and early participation.
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CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: JOINT EXERCISE OF POWERS AGREEMENT - SAN BERNARDINO REGIONAL HOUSING TRUST (SBRHT).

PAGE: 3

An Ad Hoc Housing Trust Committee is currently developing recommendations related to policy priorities and program administration. Membership in the JPA will allow the City to actively shape these policies and ensure alignment with local housing goals.

Structure of the Joint Powers Authority
The Joint Exercise of Powers Agreement establishing the SBRHT incorporates provisions of Senate Bill 20 (2023), in addition to the Joint Exercise of Powers Act. Utilizing SB 20 allows the Trust to operate as an early adopter of new statutory authorit y intended to facilitate innovative housing finance and development tools, potentially enhancing competitiveness for State funding.

The SBRHT is governed by a Board of Directors composed of locally elected representatives from each member agency, along with at least two housing policy experts selected by the elected Board members. The Board elects officers, may establish advisory committees, adopts bylaws and budgets, and oversees compliance with applicable state laws.

The Trust may contract for administrative staff or services as needed. All meetings are subject to the Brown Act, ensuring transparency and public accountability. This governance structure balances local control, regional coord ination, and subject -matter expertise, while maintaining organizational independence from individual member agencies.

Withdrawal Provisions

Member agencies may opt to withdraw from the SBRHT by adopting a resolution of its governing body and providing written notice to the Trust. The withdrawal becomes effective at the end of the fiscal year that is at least six months after notice is received. Unless otherwise approved unanimously by the Board, a withdrawing Member forfeits any rights to distributions of property or funds upon dissolution and is not entitled to reimbursement of prior contributions.

Future Funding

If the City elects to become a member of the SBRHT, it will be required to pay an annual membership fee. Based on current projections, the C ity’s fee is estimated to range from approximately $18,000 in the first year to approximately $29,000 annually as SBRHT operations ramp up to full capacity. Membership fees are calculated on a pro -rata basis, based on each member jurisdiction’s population relative to the combined population of all participating agencies.

Future adjustments to the annual fee may occur as SBRHT operational expenses change and as jurisdictions join or withdraw from the Trust. Staff recommends appropriating up to $25,000 from t he Affordable Housing Fund (Fund 310) to cover the City’s anticipated first -year membership obligation.

Attachments – Resolution No. 2026 – 020
JPA Agreement

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RESOLUTION NO. 2026-020

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

CALIFORNIA, APPROVING, AUTHORIZING, AND DIRECTING EXECUTION

OF THE JOINT EXERCISE OF POWERS AGREEMENT RELATING TO

MEMBERSHIP IN THE SAN BERNARDINO REGIONAL HOUSING TRUST WHEREAS, The San Bernardino Regional Housing Trust (SBRHT) will be formed upon the approval of at least three qualified members as a joint powers authority between Member Agencies throughout the San Bernardino Council of Governments region (region); and WHEREAS, SBRHT was created for the purpose of funding housing specifically assisting persons and families of extremely low-, very low-, low- and moderate-income within the region; and
WHEREAS, the City of Chino is committed to increasing the supply of affordable housing and addressing the housing needs of residents across all income levels; and WHEREAS, the City of Chino determined that there are limited financial resources for affordable housing development and that additional local financing will increase the competitiveness of individual projects for the State and Federal resources; and WHEREAS, the SBRHT provides an o pportunity to raise and pool funds to support the development of affordable and workforce housing including the preservation and rehabilitation of such housing; and
WHEREAS, the City of Chino determined that it is in the public interest and for the public benefit that the City become a member of the SBRHT to further facilitate the development of affordable housing in the City of Chino and throughout the region, including the financing of projects therefore by the SBRHT; and
WHEREAS, the City of Chino will be joining other jurisdictions that are members of the SBRHT in efforts to increase State and Federal resources for affordable housing directed to SBRHT; and
WHEREAS, the SBRHT is authorized to issue grants and loans to developers for the purpose, among others, of financing and refinancing the construction, acquisition, and rehabilitation of affordable housing; and
WHEREAS, the City anticipates there will be affordable housing projects in need of financing located in the City of Chino; and
WHEREAS, the SBRHT shall be legally independent from the City of Chino and its debts, liabilities, and obligations shall not constitute those of the City unless expressly agreed to by both parties; and
WHEREAS, local land use authority remains fully vested in the City of Chino, and nothing in the Joint Exercise of Powers Agreement shall be construed to transfer, limit, or otherwise affect the City’s sovereign authority over land use decisions; and 362
RESOLUTION NO. 2026-020
PAGE 2 OF 3

WHEREAS, the City Council finds it to be in the best interest of the City of Chino and its residents to join the SBRHT and support regional housing solutions.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO , CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The foregoing recitals are true and correct.

SECTION 2. The City Council hereby authorizes the City of Chino ’s membership in the San Bernardino Regional Housing Trust (SBRHT).

SECTION 3. The City Council reviewed and approves of the Joint Exercise of Powers Agreement substantially in the form attached (Exhibit A).

SECTION 4. The adoption of this Resolution shall not obligate the City of Chino or any department thereof to (i) finance, construct or operate any Project or refinance any Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, improvement, rehabilitation or operation of any Project; (iii) require any co ntribution or advance any funds whatsoever to the SBRHT other than membership fees for administrative costs; or (iv) except as provided in this Resolution, take any further action with respect to the SBRHT or its membership therein.

SECTION 5. The City Council hereby authorizes and directs the City Manager to execute the Joint Exercise of Powers Agreement and to perform such other acts and deeds, as may be necessary or convenient to affect the purposes of this Resolution and the transactions herein authorized.

SECTION 6. The City Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the SBRHT:

San Bernardino Regional Housing Trust
Attn: Monique Arellano, Director of the Council of Governments 1170 West Third Street, 2nd Floor
San Bernardino, CA 92410

APPROVED AND ADOPTED THIS 24th DAY OF MARCH, 2026.

EUNICE M. ULLOA, MAYOR
ATTEST:

NATALIE GONZAGA

CITY CLERK

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RESOLUTION NO. 2026-020
PAGE 3 OF 3

STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) §.

CITY OF CHINO )

I, NATALIE GONZAGA, City Clerk of the City of Chino, do hereby certify the foregoing Resolution was duly adopted by the Chino City Council at a special meeting held on the 24rd day of March 2026, by the following votes:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

NATALIE GONZAGA, CITY CLERK

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Joint Exercise of Powers Agreement

SAN BERNARDINO REGIONAL HOUSING TRUST
THIS JOINT EXERCISE OF POWERS AGREEMENT (“Agreement”) is made this [NUMBER] day of [MONTH], 2026 (“Effective Date”) pursuant to Government Code Section 6500 et seq., including but not limited to Government Code 6539.1, and other pertinent provisions of law, by and between San Bernardino County (the “County”) and those cities within San Bernardino County who become signatories to this Agreement (“Cities”), and relates to the joint exercise of powers among the signatories hereto, each of which is hereafter referred to as “Member Agency” and collectively referred to as “Member Agencies” or “Members.”

RECITALS
A. The Member Agencies have determined that a shortage of affordable housing exists as a result of various causes and wish to provide additional housing opportunities in a coordinated and comprehensive manner. The Member Agencies acknowledge that an adequate supply of housing will provide social and economic benefits to residents and taxpayers of each Member Agency.

B. Each Member Agency has the individual power to plan, acquire, manage, regulate, operate, finance and control the development, construction, and operations of affordable housing programs, including housing serving the workforce, moderate- and lower-income households, and those experiencing homelessness, generated within its jurisdictional boundaries, as well as to create and issue development agreements for such activities. Nothing contained in this Agreement shall preclude any Member Agency from establishing, maintaining or providing programs or services to its respective residents as it deems proper or necessary.

C. The Member Agencies find it in their mutual economic interest to address housing needs of their residents on a regional level within the boundaries of San Bernardino County.

D. The Member Agencies desire to act in the public interest to lessen the burden on government by reducing the need for each Member Agency to act individually, and to provide charitable support for housing within their geographic boundaries.

E. California Government Code Section 6500 et seq. (“Joint Exercise of Powers Act” or “Act”) permits two or more public agencies to create joint powers authorities for the purposes set forth herein, permits the agencies to exercise jointly any power that the public agencies could exercise separately, and further grants certain additional powers to such joint powers authorities.

F. California Government Code Section 6539.1 authorizes the creation of a regional housing trust pursuant to the Joint Exercise of Powers Act, subject to certain requirements regarding governing composition and annual financial and auditing requirements.

G. Local land-use decisions remain solely with each Member Agency. Nothing in this Agreement deprives any party of its sovereign powers with respect to land use nor transfers such powers to this joint powers authority.
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NOW, THEREFORE BE IT RESOLVED that the Member Agencies do hereby establish the entity to be known as the San Bernardino Regional Housing Trust, or SBRHT, to generate and/or maintain housing, disburse funding, and take other actions that will result in permanent additions to the housing stock within SBRHT’s jurisdictional boundaries, and do hereby agree as follows:

1. Purpose.

1.1 The purpose of this Agreement is to establish a legal public entity separate from the Member Agencies that shall be responsible for the joint acquisition, management, operation, fundraising, planning, adoption, financing, administration, review, monitoring, and reporting of certain housing activities in the region for the benefit of those experiencing homelessness and extremely low-, very low-, low-, and moderate-income households, as defined in Section 50093 of the Health and Safety Code. By entering this joint powers authority Agreement, the Member Agencies seek to gain economic benefits not realized when operating individually. Further, the establishment of this joint powers authority provides for the economic viability and coordination of housing program financing and facilities throughout SBRHT’s jurisdictional boundaries.

1.2 SBRHT shall be an entity which is legally independent from the parties to this Agreement and shall be responsible for the administration of this Agreement.

1.3 The assets, rights, debts, liabilities, and obligations of SBRHT shall not constitute assets, rights, debts, liabilities, and obligations of any of the Member Agencies. However, nothing in this Agreement shall prevent any of the Member Agencies from separately contracting for, or assuming responsibility for, specific debts, liabilities, or obligations of SBRHT, provided that the SBRHT Board of Directors (“Board”) and the Member Agency approve, in writing signed by each party, such contract or assumption.

2. Powers.

2.1 General Powers. SBRHT shall have all the powers common to the Member Agencies of this agreement necessary or convenient, specified or implied, to accomplish the purpose of this Agreement as set forth in Section 1 above, subject to the restrictions set forth in Section 2.7. Said powers shall be exercised in the manner provided in the Joint Exercise of Powers Act, including without limitation all powers set forth in Government Code Section 6539.1.

2.2 Specific Powers. Without limiting the generality of the powers conferred in subdivision 2.1 of Section 2, SBRHT is authorized to act on any or all of the following matters, as each Member Agency could act separately, and as it deems in the best interest of its Members, to the extent permitted by any and all applicable laws, codes, ordinances, resolutions, and regulations:
a. Facilitate and assist the Member Agencies and others in the housing sector to acquire, construct, rehabilitate, finance, refinance, operate, regulate, and maintain affordable housing programs, projects, and facilities, as determined by the Board. 366

b. Coordinate and collaborate with Member Agencies on funding solicitations and other opportunities for the purposes set forth in this Agreement to minimize and avoid, where possible, competition and redundancy in the pursuit of funding. c. Facilitate the planning, study, and recommendation of proper and appropriate SBRHT programs, activities, and management practices; including the research and study of issues related to housing.
d. Educate the public, Member Agencies, and other agencies and entities on SBRHT programs. e. Provide for or enter into agreements to provide for administrative, financial, construction, engineering, legal, audit, and any other professional services supporting any of the SBRHT programs or activities.
f. Solicit, apply for, accept, and receive grants, donations, advances, and contributions. g. Sue and be sued in its own name.
h. Incur and discharge debts, liabilities, and obligations which may include but shall not be limited to being in the form of secured bonds, revenue bonds, or other forms of secured or unsecured debt.
i. Issue bonds or notes and associated covenants, for designated purposes. j. Acquire or protect any necessary security or leasehold interests involved in loans, bonds, notes, or other financing methods implemented to carry out the purpose of this Agreement. k. Acquire, hold, lease, improve, construct, rehabilitate, maintain, pledge, assign, mortgage, operate, and dispose of real and personal property as may be necessary and appropriate in connection with the creation, construction, financing, development, and maintenance of certain workforce and affordable housing and the programmatic needs of SBRHT. l. Issue and receive loans.
m. Acquire such insurance protection as it deems necessary. n. Adopt resolutions and ordinances necessary to carry out the purpose of this Agreement. o. Establish advisory committees or subcommittees as necessary. p. Form wholly-owned and controlled affiliate entities to accomplish any of its purposes. q. Adopt bylaws and such other rules and procedures as may be deemed necessary. r. Convey real and/or personal property interests and/or funds. s. Any other acts necessary to carry out the above identified actions that each Member Agency is empowered to take individually.

2.3 SBRHT shall undertake, facilitate, and encourage the acquisition, creation, construction, development, and maintenance of affordable housing programs, projects, and facilities, as determined by the Board.
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2.4 SBRHT shall implement programs, financing mechanisms, and funding criteria to support and advance affordable housing opportunities within the jurisdictional boundaries of the Member Agencies. These programs may include, but are not limited to, loan and grant programs, land acquisition and disposition programs, and other initiatives designed to increase the supply, preservation, and quality of affordable housing.

2.5 SBRHT may establish criteria, policies, and guidelines governing eligibility, funding priorities, and program administration, provided such criteria are consistent with the purposes of this Agreement and applicable state and federal laws.

2.6 Equitable Member Agency Investment. The SBRHT Board shall establish criteria to allow for the equitable distribution of funds, and shall not exclude any Member Agency based on its rural, suburban, or urban character, as defined by the Board. Funding programs will not be set up as a means to impose zoning or land use changes within the boundaries of the Member Agencies.

2.7 Limitation on Powers. This Agreement does not authorize, and expressly prohibits, SBRHT to do any of the following:
a. Nothing in this Agreement shall be construed as transferring or delegating to SBRHT any land use, zoning, or development permitting power of the Member Agencies. Each member agency shall retain full and independent authority over land use decisions within its jurisdiction, including but not limited to general plan amendments, zoning classifications, entitlements, and project approvals. Any project or program funded or supported by SBRHT shall comply with the applicable general plans, zoning ordinances, and other land use regulations of the member agency within which the project is located, unless otherwise approved by the Member Agency. b. Regulate land use within the jurisdiction of any of the Member Agencies; c. Levy, or advocate or incentivize the levying of, any land use exaction, such as an impact fee, charge, dedication, reservation, or tax assessment, as a condition of approving the funding for or approval of, a development project;
d. Require inclusionary zoning requirements;
e. Fund or otherwise approve an agreement for a housing project that is not permitted by the Member Agency within whose jurisdiction the project is proposed to be located; or f. Require any Member Agency to accept or provide any specific number of housing units as a prerequisite to joining or remaining a party to this Agreement. g. Impose additional development standards for grant funding beyond what is already conditioned by another entity.
h. In the event that the SBRHT has employees, the creation of any employee pension plan or any other retirement plan other than a plan created under the federal Internal Revenue Code Sections 401(k), 403(b), 457(b), or Roth account plan.
368

3. Term and Termination

3.1 This Agreement shall be effective, and SBRHT shall come into existence, on the Effective Date, which shall be the date upon which this Agreement has been approved by three eligible Member Agencies.

3.2 This Agreement shall continue until terminated or dissolved pursuant to Section 3.3 of this Agreement. However, in no event shall the Member Agencies terminate or dissolve SBRHT if its termination or dissolution would conflict with or violate the terms or conditions of any bonds, financial instruments, or related documentation by or on behalf of SBRHT, including, without limitation, indentures, resolutions, and letter of credit agreements.

3.3 This Agreement may be terminated by consent of a majority of the Member Agencies, and upon full and complete liquidation of all liabilities, including, but not limited to, any bonds, consistent with Section 3.2. Upon termination of this Agreement, any surplus money or assets in possession of SBRHT, after payment of all liabilities, shall be distributed to the then-existing Member Agencies in proportion to the contributions made by each.

4. Governance

4.1 Members. The Member Agencies of SBRHT shall be the parties to this agreement who have not withdrawn from SBRHT, and such other entities that may join SBRHT after execution of this Agreement. New Members may join based on the terms and conditions set forth in Section 11.

4.2 Affiliates. Entities that are eligible to be a party to this Agreement may join the SBRHT as an affiliate.

Entities that join as an affiliate are not eligible to have a member of their governing board serve on the Board of Directors, as described in Section 4.3, or receive funding for a project within their jurisdiction until such time, if ever, they become a Member of the SBRHT. An eligible entity may become an affiliate through written notice from the executive officer of the entity, but shall not be a party to this Agreement.

4.3 Board of Directors; Composition. SBRHT is governed and administered by a Board of Directors (“Board”) that shall exercise all powers and authority on behalf of SBRHT. The membership of the Board of SBRHT shall be in accordance with Government Code Section 6539.1, and as it may be amended. As currently required at execution of this Agreement, the SBRHT Board shall consist of at least five (5) Directors, as follows:
a. At least three (3) Directors shall be locally elected officials from their respective Member Agency jurisdictions, and appointed by their respective Member, and b. Each Member Agency may appoint up to one (1) Director, and c. At least two (2) Directors shall be experts in homeless or housing policy that are not elected officials of any local agency. These Director positions shall be selected by a majority vote of the elected membership of the Board prescribed in Section 4.3(a) of this Agreement, and d. A majority of Directors must be locally elected officials from their respective Member Agency jurisdiction, and
369

e. Alternates for each Director position may be established by the Board of Directors, provided that such alternates meet the requirements established in this Agreement and under the bylaws adopted by the Board of Directors.

4.4 Advisory Committees. The Board may establish one or more advisory committees to advise the Board, pursuant to the bylaws.

4.5 Director Terms. The Member Agencies shall select their respective Directors for the Board no later than the Effective Date, or the effective date of the respective Member Agency entering into this Agreement, as may be applicable. Each Director shall serve a term of two years, but may be reappointed for successive two-year terms in accordance with this Agreement. At least 15 days prior to the end of a Director’s term, the respective Member Agency must select a new Director or re- select the current Director for the new term of office. There is no limit on the number of terms a Director may serve. In the event of a vacancy on the Board in a Director position originally appointed by a Member Agency pursuant to this Agreement in Section 4.3(b), that Member Agency shall appoint a replacement in accordance with the criteria of Section 4.3(a) within 60 days of such vacancy who shall serve out the remainder of the term of the Director that has been replaced. In the event of a vacancy on the Board in a Director position appointed pursuant to this Agreement in Section 4.3(c), the SBRHT Board shall appoint a replacement in accordance with the criteria of Section 4.3(c) within 60 days of such vacancy who shall serve out the remainder of the term of the Director that has been replaced.

4.6 Officers. The Board of Directors shall elect a chairperson and a vice chairperson from among its Directors consistent with Section 8.6.

4.7 Compensation. Directors shall serve on the Board without compensation. Directors may be reimbursed for actual expenses that are approved in accordance with applicable provisions of this Agreement and SBRHT bylaws before the expenses are incurred.

5. Budgets and Financing.

5.1 The Fiscal Year of SBRHT shall, unless and until changed by the Board of Directors, commence on the 1st day of July of each year and shall end on the 30th day of June of the next succeeding year except that the initial Fiscal Year of SBRHT shall commence on the Effective Date of this Agreement and conclude on the next June 30th.

5.2 The Board shall annually adopt an operating budget for SBRHT setting forth anticipated expenses, financing sources and proposed service levels necessary to carry out the purposes of this Agreement. The payment of all SBRHT obligations is limited to the amount of appropriations allowed in SBRHT’s approved budget, except as it may be revised with the approval of a majority of the Board of Directors. The budget for SBRHT shall distinguish between administrative costs (i.e., the cost of operating SBRHT) and program costs (i.e., the financing of the programs funded or sponsored by SBRHT).

5.3 The particular Program and Program budget funded, sponsored, or operated by SBRHT, as well as the level of, and mechanisms for, the involvement of SBRHT and each Member Agency, in such 370

Program and Program budget, shall be determined and approved by the Board. A Member Agency’s individual contribution, involvement, and role in any particular Program or the Program budget shall be mutually agreed between the Member Agency and SBRHT. By way of example only, said contributions, involvement, or role may include cash contributions, provision of services or staffing, use or transfer of title to real or personal property, pledges, guarantees, or whatever other instruments or involvement the Member Agency and SBRHT may agree to. Contributions of all kinds to the Program budget from private persons or entities and not-for-profit entities, whether their interests are represented by any Directors, are encouraged, so long as they do not cause a violation of any applicable conflicts of interest statutes, rules, or regulations.

6. Financial Management.

6.1 Pursuant to Government Code Sections 6505.5 and 6505.6, the Board shall appoint an officer of SBRHT to hold the offices of treasurer and auditor of SBRHT. This officer can be either the treasurer of a Member Agency to this Agreement or a certified public accountant. Such person or persons shall possess the powers of and shall perform the treasurer and auditor functions for SBRHT required by Sections 6505, 6505.5, and 6505.6 of the Government Code, including any amendments thereto. Pursuant to Government Code Section 6505.1, the auditor and treasurer shall have charge of certain property of SBRHT. The treasurer and auditor shall ensure that there shall be strict accountability of all funds and reporting of all receipts and disbursements of SBRHT. The treasurer and auditor of SBRHT shall be required to file an official bond as required by Government Code Section 6505.1 with the Board of Directors in an amount which shall be established by the Board.

Should the existing bond or bonds of any such officer be extended to cover the obligations provided herein, said bond shall be the official bond required herein. The premiums on any such bonds attributable to the coverage required herein shall be an appropriate expense of SBRHT.

6.2 SBRHT shall publish an Annual Financial Report that shall describe the funds received by SBRHT and the use of such funds by SBRHT. The Annual Financial Report shall describe how the funds received by SBRHT have furthered the purpose of SBRHT.

7. Additional Officers and Staffing.

7.1 It is understood that SBRHT will require the support of administrative staff. When deemed necessary, the Board may contract for officers and staff with a Member Agency, the San Bernardino Council of Governments, or other independent contractors, agents, or volunteers as the Board may deem necessary to carry out any of SBRHT’s powers, upon such terms and conditions as the Board may require, including the retaining of professional and technical assistance, provided that adequate funds are available in SBRHT’s budget and are appropriated by SBRHT therefore.

7.2 None of the officers, agents, or staff, if any, directly contracted by SBRHT shall be deemed, by reason of their roles or duties or contracted status, to be employed by any Member Agency.

7.3 The officer or staff may be delegated authority as deemed necessary or appropriate by the Board.

7.4 If SBRHT contracts with a Member Agency to provide SBRHT with administrative services through persons who are employees and/or officers of the Member Agency, then any retirement liabilities 371

associated with that Member Agency’s employees and/or officers shall not constitute a liability of SBRHT or any other Member Agency. This shall not preclude a Member Agency providing administrative services to SBRHT pursuant to a contract with SBRHT from accounting for such salary and benefit costs when negotiating the rates that the Member will charge SBRHT for providing such services.

7.5 All privileges and immunities from liability, exemptions from laws, ordinances and rules, and benefits that apply to officers, agents, or employees of a Member Agency shall apply to the same extent when performing duties for SBRHT.

8. Meetings.

8.1 The Board shall schedule at least two (2) regular meetings each Fiscal Year.

8.2 Special meetings of the Board may be called by the Chairperson of the Board and otherwise in accordance with provisions of California Government Code Section 54956 and any applicable SBRHT bylaws.

8.3 All meetings of the Board shall be held subject to the provisions of California Government Code Section 54950 et seq. (the “Brown Act”) and other applicable laws of the State of California.

8.4 A quorum is established if at least a majority of Directors are present at a meeting, except that less than a quorum may adjourn a meeting to another time and place. Unless otherwise provided in this Agreement or otherwise defined in the Bylaws, actions and decisions of the Board of Directors may be taken by a majority of the quorum present at any meeting. Each Director of a Member Agency shall have one vote and no weighted or proxy votes shall be permitted.

8.5 The Board of Directors shall cause minutes of all regular, adjourned regular, and special meetings to be kept as record of all meetings.

8.6 The Board of Directors shall elect a chairperson and a vice chairperson from among its Directors at the first meeting held in each calendar year. In the event that the chairperson or vice chairperson so elected ceases to be a Director, the resulting vacancy shall be filled at the next regular meeting of the Board of Directors held after such vacancy occurs or at a special meeting called for that purpose.

In the absence or inability of the chairperson to act, the vice chairperson shall act as chairperson.

The chairperson, or in the chairperson's absence, the vice chairperson, shall preside at and conduct all Board of Director meetings.

8.7 The Board of Directors may adopt, from time to time, by resolution, such rules, regulations and bylaws for the conduct of its meetings and affairs as the Board determines is necessary or convenient.

9. Bylaws.

9.1 The Board shall adopt bylaws for the conduct of its affairs, provided that they are consistent with this Agreement and are appropriate in order to carry out SBRHT’s purpose. 372

9.2 The Board may, from time to time, amend its bylaws.

10. Fees.

10.1 Member Agencies shall make annual contributions (“Administrative Fee”) towards the budgeted administrative costs of SBRHT in accordance with a cost allocation as determined and approved annually by the Board of Directors. Payment shall be due within 30 days of receipt of an invoice from SBRHT.

11. New Members.

11.1 New Member Agencies may be added to SBRHT by a majority vote of the Directors present at the meeting. Membership is effective immediately upon execution of this Agreement by the new Member Agency.

12. Withdrawal.

12.1 It is fully anticipated that each Member Agency shall participate in SBRHT until the purposes set forth in this Agreement are accomplished. A Member Agency may withdraw from SBRHT upon its governing board’s adoption of a resolution stating its intent to withdraw from SBRHT. The withdrawal of any Member Agency shall be conditioned as follows:
a. The withdrawal shall be effective at the end of the SBRHT Fiscal Year which is at least 180 days after the receipt by SBRHT of a written notice of the Member Agency’s intent to withdraw, accompanied by a copy of the governing board resolution stating the intent to withdraw; and b. Unless otherwise provided by a unanimous vote of the SBRHT Board, withdrawal shall result in the forfeiture of that Member Agency’s rights and claims relating to distribution of property and funds upon termination of SBRHT. Withdrawn Members shall not be entitled to any reimbursement of Administrative Fees.

13. Amendments.

13.1 Except as provided in Sections 11 and 12, subject to all legal obligations of SBRHT, this Agreement may be amended by a writing executed by all of the Member Agencies of SBRHT.

14. Notices.

14.1 All notices to the Member Agencies shall be deemed to have been given to the Member Agencies (1) three days after mailing when mailed, postage prepaid by United States mail, return receipt requested, or (2) at the time of delivery when delivered personally or by courier service to the Member Agency’s City or County Clerk during usual business hours at the principal office.

14.2 All notices to SBRHT shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid, to the executive officer of SBRHT at the following address, or to such other address as may be designated to SBRHT for formal notice:
1170 W. Third Street
373

2nd Floor
San Bernardino, CA 92410

15. Assignments; Other Agreements.

15.1 This Agreement shall be binding upon and shall inure to the benefit of the successors of any Member Agency. No Member Agency may assign any right or obligation hereunder without the written consent of all other Member Agencies. Participation in SBRHT is not intended to preclude Member Agencies from entering into similar agreements with other jurisdictions.

16. Severability.

16.1 Should any part, term, portion, or provision of this Agreement, or the application thereof to any person or circumstance, be held to be illegal or in conflict with any law of the State of California, or otherwise be rendered unenforceable or ineffectual, it shall be deemed severable, and the remainder of this Agreement or the application thereof to other persons or circumstances shall continue to constitute the agreement the Member Agencies intended to enter into in the first instance.

17. Headings.

17.1 All section headings contained in this Agreement are for convenience and reference only. They are not intended to define or limit the scope of any provision of this Agreement.

18. Non-Liability for Obligations of SBRHT.

18.1 The debts, liabilities, and obligations of SBRHT shall not be considered the debts, liabilities, or obligations of any Member Agency or its respective officers, agents, employees, representatives, or volunteers.
a. Assignment. Each Member Agency shall assign to the SBRHT its rights, title, and interest to recover damages from any third party for Claims (as defined in Subsection d below) arising out of this Agreement, to the extent that the SBRHT has met its obligations to defend and indemnify such Member Agency pursuant to this section.
b. Survival. SBRHT’s duty to defend, indemnify, and hold harmless Member Agencies shall survive and continue in full force and effect after withdrawal of any Member from this Agreement, including as to the withdrawing Member Agency, or termination of this Agreement for any reason with respect to any Claims, as defined in 18.1.d., that occurred before the date of such withdrawal or termination.
c. Pursuant to the provisions of California Government Code Section 895 et seq., each Member Agency that is party to this Agreement shall be liable for its own negligent or wrongful acts or omissions and those of its officers, employees, and agents. d. Indemnification. The SBRHT shall defend, indemnify, and hold harmless each Member Agency, its officers, agents, employees, representatives, and volunteers (the “Indemnitees”) from and against any loss, injury, claim, lawsuit, liability, expense, or damages of any kind or nature 374

(collectively, “Claims”) brought by a third party which arises out of or in connection with SBRHT’s acts and omissions related to its purposes set forth in this Agreement, including such third-party claims arising out of or in connection with any Indemnitees acting within their authorized capacity as an officer, agent, employee, representative, or volunteer of SBRHT. The SBRHT’s duty to defend and indemnify under this section shall not extend to Claims otherwise arising out of the Indemnitees’ own active negligence, omissions, or willful misconduct, whether in whole or part.
e. Liability Financing. The SBRHT shall finance its obligation pursuant to this Subsection by establishing a liability reserve fund, and/or by purchasing commercial insurance, and/or by joining a joint powers insurance authority (JPIA) as determined by the Board. In the event SBRHT’s financial obligations to indemnify, defend, and hold harmless, pursuant to this Subsection, exceed the liability reserve fund and/or the proceeds from any applicable insurance and/or JPIA coverage maintained by the SBRHT (hereinafter “Unfunded Liability”), the Member Agencies may provide for contribution or indemnification by any or all of the Member Agencies that are parties to the agreement upon any liability arising out of the performance of the agreement, and/or a Member Agency or Member Agencies may meet and confer with SBRHT in good faith to negotiate alternative means or mechanisms by which SBRHT may fund such Unfunded Liability; however, in no event shall the event of an Unfunded Liability relieve, limit, or waive SBRHT’s obligations of indemnity or defense to each Member Agency as first set forth above in this section. Nothing herein shall obligate any Member Agency to indemnify or hold harmless SBRHT for an Unfunded Liability or to make any contribution towards an Unfunded Liability. In no event shall any Unfunded Liability of the SBRHT be passed through to a Member Agency without the express, written, and voluntary approval of that Member Agency’s governing body via a separate instrument.

19. Governing Laws and Venues.

19.1 This Agreement is made in the State of California under the Constitution and laws of such State and shall be construed and enforced in accordance with the laws of California. The parties agree that any legal action, suit, or proceeding arising out of or relating to this Agreement shall be instituted and maintained exclusively in the state within the County of San Bernardino, California.

Each party irrevocably submits to the personal and subject matter jurisdiction of such courts and waives any objection to venue or forum non conveniens with respect to actions brought in those courts.

20. Confirmation of Jurisdictional Authority.

20.1 By signing this Agreement, the Member Agencies retain all jurisdictional authority granted to them by the State and/or their respective Charters. The powers and/or authority granted to SBRHT pursuant to this Agreement shall in no way serve to limit or restrict an individual Member Agency’s jurisdictional authority.

IN WITNESS WHEREOF, the parties hereto by their duly authorized representative, have affixed their signatures on this Agreement, effective as of the date first stated above. 375

MEMBER AGENCY: [ENTER MEMBER AGENCY NAME]
By: ___________________________
[INSERT Name of Authorized Signatory, Title]
Attest: ________________________
[INSERT Name of Witness (e.g. Clerk), Title]
MEMBER AGENCY:

By: ___________________________
[INSERT Name Authorized Signatory, Title]
Attest: ________________________
[INSERT Name of Witness (e.g. Clerk), Title]
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MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 24, 2026

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

SUBJECT
..titl e
San Bernardino County Transportation Authority (SBCTA) Measure I 3.0. ..end

RECOMMENDATION
..recommendation
Adopt Resolution No. 2026 -019, approving support of the expenditure plan presented by SBCTA for the continuation of Measure I, which supports street maintenance and transportation-related improvements.
..body

FISCAL IMPACT
There is no direct fiscal impact associated with the adoption of this resolution. However, the City currently receives local return funding through the existing Measure I program. If the Measure I program is not continued or replaced in the future, the City could lose a significant source of funding used for the ma intenance and improvement of local roadways. Continuation of the measure would help ensure that the City may continue to receive transportation funding to support local infrastructure needs.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
 Positive City Image
 Superior Customer Service
 Financial Stability
 Responsible Long-Range Planning
 Exemplary Leadership
 Public Service Excellence through Internal and External Partnerships

Revenue:

Expenditure:

Transfer In: Transfer Out:
377
CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY (SBCTA) MEASURE I

3.0. PAGE: 2

BACKGROUND
The San Bernardino County Transportation Authority (SBCTA) is the countywide agency responsible for transportation planning, funding, and project delivery in San Bernardino County.

SBCTA administers Measure I, the County’s existing half -cent sales tax dedicated to transportation improvements, was originally approv ed by voters in 1989 and later extended by voters in 2004.

Revenue generated through Measure I funds a wide range of transportation projects including highway improvements, local street and road maintenance, transit services, congestion management programs , traffic signal improvements, and regional transportation planning efforts. A portion of Measure I revenue is distributed directly to local jurisdictions through a Local Streets Program to support maintenance and rehabilitation of city roadways. From 2010 through 2025, the City received over 22 million dollars in Measure I funding, which was allocated to a broad range of plans and construction projects across the community.

SBCTA is currently developing Measure I 3.0, a proposed continuation and modernization of the existing transportation sales tax measure. Measure I 3.0 would seek voter approval to extend and update the current funding program to address the county’s growing transportation demands, aging infrastructure, and evolving mobility needs. Propos ed investments may include roadway improvements, freight corridor enhancements, transit expansion, active transportation infrastructure, and emerging mobility technologies.

For the measure to be placed on a future countywide ballot, SBCTA is seeking input and support from local jurisdictions throughout the county. Adoption of a resolution by the City Council would express the City’s support for continued investment in regional transportation infrastructure and programs.

ISSUES/ANALYSIS
Measure I funding h as played an important role in helping the City of Chino maintain and improve its local transportation network. Through the program’s local return funding, the City has been able to invest in street maintenance, pavement rehabilitation, traffic safety improvements, and other transportation -related projects that directly benefit residents and businesses. These funds have provided the City with a reliable revenue source to address aging roadway infrastructure and maintain safe and efficient travel throughout the community.

Measure I has also helped the City leverage regional transportation investments that improve connectivity to major corridors and support continued economic growth in the area.

Measure I 3.0 is intended to build upon the success of the existi ng program by providing long - term funding for transportation priorities identified through regional planning efforts. Continued investment in transportation infrastructure may help reduce congestion, improve mobility, enhance goods movement, and support mu ltimodal transportation options such as transit, bicycle, and pedestrian facilities.

Support of the expenditure plan from local jurisdictions is an important component of SBCTA’s outreach and planning process. By adopting a resolution of support, the City would signal its interest in continued regional collaboration and investment in transportation improvements that benefit residents, commuters, and businesses throughout the county.

Adoption of the resolution does not commit the City to any financial obliga tion; rather, it expresses policy support for the development and potential placement of the continuation of 378
CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY (SBCTA) MEASURE I

3.0. PAGE: 3

Measure I transportation investment plan on a future ballot for consideration by San Bernardino County voters.

Attachment: Exhibit A - Resolution 2026-019

379

01225.0023 2006836.1
RESOLUTION NO. 2026-019

RESOLUTION OF THE CITY OF CHINO APPROVING THE

EXPENDITURE PLAN FOR THE EXPENDITURE OF

REVENUES IN SAN BERNARDINO COUNTY EXPECTED TO

BE DERIVED FROM THE PROPOSED CONTINUATION OF

MEASURE I
WHEREAS, The voters of San Bernardino County passed Measure I in November 1989 and renewed it in 2004, authorizing San Bernardino Associated Governments, acting as the San Bernardino County Transportation Authority, to impose a one-half of one percent transactions and use tax for transportation improvements, applicable in the incorporated and unincorporated territory of the County of San Bernardino, through April 1, 2040, and WHEREAS, Measure I has provided funding for numerous transportation projects, including freeways, local roads, major streets, interchanges, the Metrolink commuter train system, public buses, traffic signals, and more; and
WHEREAS, the imposition of the one-half of one percent transactions and use tax is set to expire in 2040, and
WHEREAS, San Bernardino County Transportation Authority, after engagement with private sector stakeholders and City and County representatives, has prepared an Expenditure Plan for the revenues expected to be derived from the proposed continuation of Measure I, which is anticipated to be placed on the November 3, 2026, ballot, and WHEREAS, the proposed Expenditure Plan for the continuation of Measure I is attached hereto as Exhibit 1, and
WHEREAS, if approved by the voters, the continuation of Measure I would authorize the collection of a one-half of one percent sales tax and generate an estimated $7.5 billion in its first 30 years for local transportation projects, and
WHEREAS, if approved by the voters, the continuation of Measure I would not institute a new tax, but continue the existing one -half of one percent sales tax for transportation after April 1, 2040, and
WHEREAS, revenues raised from the continuation of Measure I woul d remain in San Bernardino County and could not be allocated by the state or federal government, and WHEREAS, Measure I would provide a long -term funding source to help fight traffic congestion; improve local streets, major roads and highways; and enhance San Bernardino County’s economy by providing construction -related jobs, manufacturing jobs, and an effective transportation system to meet the needs of residents and the business community, and WHEREAS, Public Utilities Code section 180206 requires that the Measure I Continuation Expenditure Plan be approved by the County Board of Supervisors and a majority of the cities representing a majority of the population residing in incorporated areas, 380
Resolution No. 2026-019

01225.0023 2006836.1
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Chino, hereby approves the Measure I Continuation Expenditure Plan developed by the Board of Directors of the San Bernardino County Transportation Authority (Exhibit 1).

APPROVED AND ADOPTED THIS 24th DAY OF MARCH 2026

By: ____________________________
EUNICE M. ULLOA, MAYOR
ATTEST:

By: _____________________________

NATALIE GONZAGA, CITY CLERK

381
Resolution No. 2026-019

01225.0023 2006836.1

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 their special meeting on the 24th day of March 2026, and carried by the following vote:

AYES:

NOES:

ABSENT:

Natalie Gonzaga
City Clerk
382

Exhibit A
Transportation Expenditure Plan
Revenue Estimates and Distribution. Allocation of revenue authorized by Ordinance No. 26-1 is established within this Expenditure Plan. Funds shall be allocated by percentage of the actual revenue received. An estimate of revenues and allocation among categories for the first 30 years is $7.5 billion. The estimated revenue is based upon 2026 value of money and is not binding or controlling.

Return to Source. After deduction of required CDTFA fees, funds dedicated for the Interregional Mobility Expenditure Plan and authorized administrative costs, revenues generated from each specified Subarea within San Bernardino County will be expended on projects of direct benefit to that Subarea.

Revenues will be accounted for separately for each Subarea and then allocated to specified project categories. Decisions on how revenues for certain project categories are expended within the Subareas will be made by the Authority Board of Directors, based upon recommendation of local representatives.

Subarea Identification. The San Bernardino Valley Subarea will include the cities of Chino, Chino Hills, Colton, Fontana, Grand Terrace, Highland, Loma Linda, Montclair, Ontario, Rancho Cucamonga, Redlands, Rialto, San Bernardino, Upland and Yucaipa and unincorporated areas in the east and west portions of the San Bernardino valley urbanized area. The Mountain/Desert area will include the following subareas: (1) The North Desert Subarea, which includes the City of Barstow and surrounding unincorporated areas; (2) The Colorado River Subarea, which includes the City of Needles and the surrounding unincorporated areas of the East Desert; (3) The Morongo Basin Subarea, which includes the City of Twentynine Palms, Town of Yucca Valley, and surrounding unincorporated areas; (4) The Mountain Subarea, which includes the City of Big Bear Lake and surrounding unincorporated areas of the San Bernardino Mountains; and (5) the Victor Valley Subarea, which includes the Cities of Adelanto, Hesperia, and Victorville; the Town of Apple Valley; and surrounding unincorporated areas including Wrightwood.

Contribution from New Development. No revenue generated from the tax shall be used to replace the fair share contributions required from new development as further described in Section 8 of the Ordinance.

Requirement for Annual Financial and Compliance Audits of Measure Funds. The San Bernardino County Transportation Authority shall undergo a biennial financial audit, and each local jurisdiction receiving an allocation of Measure revenue authorized in this Expenditure Plan shall undergo an annual financial audit, with all audits to be performed in accordance with generally accepted auditing standards and government auditing standards issued by the Comptroller General of the United States. Compliance audits also shall be conducted to ensure that each agency is expending funds in accordance with the provisions and guidelines established for Measure revenue including compliance with Maintenance of Effort provisions

The Interregional Mobility Expenditure Plan. Upon initial collection of revenue, 3% of the revenue generated across all San Bernardino County subareas will be reserved in advance of other allocations specified in this plan, in an account for the Interregional Mobility Expenditure Plan. The Interregional Mobility Expenditure Plan will provide resources for the planning and implementation of projects and programs that provide critical infrastructure to communities impacted by regional motorist, tourism, interregional travel, and goods movement. This program will help plan and deliver critical infrastructure improvements, such as enhancements in the Cajon Pass and other key corridors, that address congestion, 383

enhance mobility, improve safety, and strengthen resilience. It will also support evacuation planning, bolster emergency response capabilities, improve primary evacuation routes, and fund transit-related evacuation needs. In addition, the program will be available to address unexpected infrastructure damage resulting from natural or human-caused disasters, ensuring rapid recovery and the restoration of essential interregional mobility.

San Bernardino Valley Subarea Expenditure Plan. In that area described as the San Bernardino Valley Subarea, and referred to herein as the Valley Subarea, project categories shall be established as specified below. The San Bernardino Valley Subarea Expenditure Plan is illustrated in Figure A.

A. State and Federal Transportation Funds. A proportional share of projected state and federal transportation funds shall be reserved for use solely within the Valley Subarea.

B. Local Mobility 25%. Local priorities that focus on local roadway, bikeway, and sidewalk construction, repair, and maintenance for improved localized movement. Includes pass through for local priorities such as: local street widening & rehabilitation, potholes, grade separations, sidewalks, bike lanes, streetlights, and quiet zones. Allocations to local jurisdictions shall be on a per capita basis using the most recent State Department of Finance population estimates for January 1, with the County's portion based upon unincorporated population in the Valley Subarea. Estimates of unincorporated population within the Valley Subarea shall be determined by the County Planning Department, reconciled with the State Department of Finance population estimate for January 1 of each year.

Upon initial collection of revenue, each local jurisdiction shall reserve 5% of allocated revenue in a special account to be expended on active transportation projects. Eligible active transportation projects may include, at the discretion of the local jurisdiction, bicycle and pedestrian projects and costs for associated studies or plans. If, after at least ten years of revenue collection, the local jurisdiction’s governing body makes a finding that the reserve for active transportation projects is no longer necessary, and the Authority Board of Directors subsequently approves the finding, then all Local Mobility funds allocated to the local jurisdiction may be used for any eligible purpose.

Local Mobility projects are defined as local street and road construction, repair, and maintenance and other eligible local transportation priorities. Except as set forth herein, Local Mobility funds can be used flexibly for any eligible transportation purpose determined to be a local priority, including local streets, major highways, state highway improvements, transit, and other improvements/programs to maximize use of transportation facilities. Expenditure of Local Mobility funds shall be based upon a Five-Year Plan adopted annually by the governing body of each local jurisdiction after being made available for public review and comment. Local Mobility funds shall be disbursed to local jurisdictions upon receipt of the annually adopted Five-Year Plan. The locally adopted Five-Year Plan shall be consistent with local, regional, and state transportation plans.

C. Regional Mobility 50%. Regional priorities that focus on goods movement, transit, managed lanes, congestion management, and emerging transportation technologies to enhance regional movement and include: highway improvements, bus and passenger rail (capital and rehabilitation), corridors, interchanges, environmental mitigation, traffic management systems (freeway service patrol and air quality strategies), quiet zones, planning and project development, and emerging transportation technology.

Regional Mobility projects are defined as congestion relief and safety improvements to corridors that connect communities, serve major destinations, and provide freeway access. Decisions on how Regional Mobility funds are expended will be made by the Authority Board of Directors, based upon recommendation of local jurisdiction representatives. Funding priorities shall be given to improving roadway safety, relieving congestion, and street improvements at rail crossings and shall take into 384

account equitable geographic distribution over the life of the program. Eligible projects also include, but are not limited to, signal synchronization, systems to improve traffic flow, commuter assistance programs, freeway service patrol, and projects that contribute to environmental enhancement associated with transportation facilities.

D. Operations 25%. Resourcing the operational costs for providing mobility services via rail, transit, senior and specialized services, first/last mile connections, ridesharing, and safety support functions.

Decisions on how Operations funds are expended will be made by the Authority Board of Directors, based upon recommendations of local jurisdiction representatives. Funding priorities shall be given to maintaining core services across all modes of mobility.

Mountain/Desert Expenditure Plan. In that area described as the Mountain/Desert area, the following Expenditure Plan requirements shall apply. The Mountain/Desert Subarea Expenditure Plan is illustrated in Figure B.

A. State and Federal Transportation Funds. A proportional share of projected state and federal transportation funds shall be reserved for use solely within the Mountain/Desert Subareas.

B. Local Mobility 70%. Local priorities that focus on local roadway, bikeway, and sidewalk construction, repair, and maintenance for improved localized movement. Includes pass through for local priorities such as: local street widening & rehabilitation, potholes, grade separations, sidewalks, bike lanes, and streetlights. Allocations to local jurisdictions shall be based upon population (50 percent) and tax generation (50 percent). Population calculations shall be based upon the most current State Department of Finance estimates for January 1 of each year. Estimates of unincorporated population within each Subarea shall be determined by the County Planning Department, reconciled with the State Department of Finance population estimate. Tax generation calculations shall be based upon CDTFA data.

Upon initial collection of revenue, each local jurisdiction shall reserve 5% of allocated revenue in a special account to be expended on active transportation projects. Eligible active transportation projects may include, at the discretion of the local jurisdiction, but are not limited to, bicycle and pedestrian projects and costs for associated studies or plans. If, after at least ten years of revenue collection, the local jurisdiction’s governing body makes a finding that the reserve for active transportation projects is no longer necessary, and the Authority Board of Directors subsequently approves the finding, then all Local Mobility funds allocated to the jurisdiction may be used for any eligible purpose.

Local Mobility projects are defined as local street and road construction, repair, and maintenance and other eligible local transportation priorities. Except as set forth herein, Local Mobility funds can be used flexibly for any eligible transportation purpose determined to be a local priority, including local roads, major streets, state highway improvements, transit, including but not limited to, fare subsidies and service enhancements for seniors and persons with disabilities, and other improvements/programs to maximize use of transportation facilities. Expenditure of Local Mobility funds shall be based upon a Five-Year Plan adopted annually by the governing body of each local jurisdiction after being made available for public review and comment. Local Mobility funds shall be disbursed to local jurisdictions upon receipt of the annually adopted Five-Year Plan. The locally adopted Five-Year Plans shall be consistent with other local, regional, and state transportation plans.

C. Regional Mobility 20%. Regional priorities that focus on goods movement, transit, managed lanes, congestion management, and emerging transportation technologies to enhance regional movement and include: highway improvements, bus and passenger rail (capital and rehabilitation), corridors, interchanges, environmental mitigation, traffic management systems (freeway service patrol and air quality strategies), planning and project development, and emerging transportation technology. 385

Revenue collected within each Subarea shall be reserved in a special account to be expended on Regional Mobility projects of benefit to the Subarea. Regional Mobility projects are defined as major streets and highways serving as primary routes of travel within the Subarea, which may include State highways and freeways, where appropriate. Regional Mobility Projects funds can be used to leverage state and federal funds for transportation projects and to perform advance planning/project reports.

Expenditure of Regional Mobility funds shall be approved by the Authority Board of Directors, based upon a recommendation of Subarea representatives and the Mountain/Desert Policy Committee. If, after five years of revenue collection and every five years thereafter, the local representatives and the Mountain/Desert Policy Committee make a finding that Regional Mobility funds are not required for improvements of benefit to the Subarea, then revenue in the Regional Mobility category may be returned to local jurisdictions within the Subarea. Such return shall be allocated and expended based upon the formula and requirements established in the Local Mobility category.

D. Operations 10%. Resourcing the operational costs for providing mobility services via rail, transit, senior and specialized services, first/last mile connections, ridesharing, and safety support functions.

Decisions on how Operations funds are expended will be made by the Authority Board of Directors, based upon recommendation of Subarea representatives and the Mountain/Desert Policy Committee and/or Transit Committee. Funding priorities shall be given to maintaining core services across all modes of mobility services.

The Authority Board of Directors, based upon recommendation of Subarea representatives and the Mountain/Desert Policy Committee, may provide additional funding beyond 10% upon a finding that such increase is required to address unmet transit needs of the Subarea. All increases above the 10% initial revenue collected for the Operations category shall come from the Local Mobility category of the Subarea.

E. Mountain/Desert Policy Committee. The Mountain/Desert Policy Committee of the Authority shall remain in effect and provide oversight of the implementation of the Mountain/Desert Expenditure Plan.

386

Measure “I”
Transportation Expenditure Plan

FIGURE A
San Bernardino Valley Subarea Expenditure Plan
387

14 FIGURE B
Mountain Desert Expenditure Plan

388

Exhibit “B”
Independent Taxpayer Oversight Committee (ITOC)
ITOC Goal and Function. Voter approval of this Measure shall result in the continuation of the existing Independent Taxpayer and Oversight Committee (ITOC) as follows:

The ITOC shall provide citizen review to ensure that all Measure funds are spent by the San Bernardino County Transportation Authority (hereby referred to as the Authority) in accordance with provisions of the Expenditure Plan and Ordinance No. 26-1, Measure I and the Measure I Expenditure Plan.

Audit Requirement. A bi-annual fiscal and compliance audit shall be performed in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. The audit shall review the basic financial statements of the Authority as defined by the Governmental Accounting Standards Board and the financial and compliance audits of the member jurisdictions.

Role of Financial and Compliance Audit and the ITOC. The ITOC shall review the annual audits of the Authority; report findings based on the audits to the Authority; and recommend any additional audits for consideration that the ITOC believes may improve the financial operation and integrity of program implementation.

The Authority shall hold a publicly noticed meeting, which may or may not be included on the agenda of a regularly scheduled Authority Board of Directors meeting, with the participation of the ITOC to consider the findings and recommendations of the audits.

Membership and Selection Process. The Authority shall have an open process to select five committee members, which shall include solicitation of trade and other organizations to suggest potential nominees to the committee. The committee members shall possess one of the following credentials:

• Professional in the field of municipal audit, finance and/or budgeting with a minimum of five years in a relevant and senior decision-making position in the public or private sector.

• Licensed civil engineer or trained transportation planner with at least five years of demonstrated experience in the fields of transportation and/or urban design in government and/or the private sector. No member shall be a recipient or sub-recipient of Measure funding.

• Three public members who possess knowledge and skills that will be helpful to the work of the ITOC.
389

The Chair and the Executive Director of the Authority shall serve as ex-officio members of the ITOC.

Terms and Conditions for Committee. Committee members shall serve staggered four-year terms. In no case shall any voting committee member serve more than twelve years on the ITOC.

 Committee members shall serve without compensation, except they shall be reimbursed for authorized travel and other expenses directly related to the work of the ITOC.  Committee members cannot be a current local elected official in the County or a full-time staff member of any city/town, the County government, local transit operator, or state transportation agency.
 Non-voting ex-officio committee members shall serve only as long as they remain incumbents in their respective positions and shall be automatically replaced by their successors in those positions.
 If vacancies on the ITOC occur, for any reason, Authority staff will collaborate with Authority Board members to find an appropriate replacement, within 90 days of the vacancy or as soon thereafter as possible, to fill the remainder of the term.  When more than one application is received for a vacancy, the General Policy Committee will make a recommendation to the Authority Board of Directors to appoint an applicant to the ITOC.
 When only one application is received, the Board President will recommend to the Board the applicant’s appointment to the ITOC.

ITOC Operation Protocols.
 The ITOC shall continue as long as Measure revenues are collected.  Authority Board of Directors and staff shall fully cooperate with and provide necessary support to ensure the ITOC successfully carries out its duties and obligations.

Conflict of Interest. ITOC voting members shall have no legal action pending against the Authority and are prohibited from acting in any commercial activity directly or indirectly involving the Authority, such as being a consultant during their tenure on the ITOC. ITOC voting members shall not have direct commercial interest or employment with any public or private entity that receives the transportation tax funds authorized by the voters in this Ordinance.

Exhibit C (Ballot Question)

Measure “I” Local Transportation Improvement Program

San Bernardino County Road Repair/Traffic Relief Extension Without raising tax rates, shall an ordinance to fund repairing potholes; keeping local roads in good condition; completing freeway/highway projects to improve traffic flow/safety, reduce traffic bottlenecks; 390

upgrading aging bridges/overpasses; creating local jobs; keeping student/senior/disabled/veteran transit fares low be adopted, extending the ½¢ voter-approved transportation sales tax, providing approximately $250,000,000 annually until ended by voters, requiring audits, oversight, spending disclosure, local control?

391

MEMORANDUM

CITY OF CHINO

POLICE DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 24, 2026

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

SUBJECT
..titl e
Federal Asset Forfeiture - Duty Handguns and Accessories. ..end

RECOMMENDATION
..recommendation
1) Establish Federal Grant Number G4266; 2) appropriate $296,014.05 from the fund balance of the Asset Forfeiture/Department of Justice Fund 120 for the purchase of duty handguns and all necessary accessories; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
..body

FISCAL IMPACT
Requires an appropriation in the amount of $296,104.05 from the fund balance of the Federal Asset Forfeiture Fund 120. This funding was received in a prior fiscal year and recorded in the Federal Asset Forfeiture Fund 120.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
 Superior Customer Service
 Public Service Excellence through Internal and External Partnerships  Effective Technology

Revenue: 12040002-59500-G4266

Expenditure: 12040002-40010-G4266
Transfer In: Transfer Out:
392
CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: FEDERAL ASSET FORFEITURE - DUTY HANDGUNS AND ACCESSORIES.

PAGE: 2

BACKGROUND
For several years, the Chino Police Department has actively participated in investigations or prosecutions that resulted in federal forfeiture. As a result, the city receives an equitable share of the net proceeds. Forfeiture funds are designated exclusively for law enforcement purposes and must supplement existing resources, not replace them.

ISSUES/ANALYSIS
The Chino Police Department remains committed to equipping its officers with reliable, effective, and modern tools necessary to meet evolving public safety demands. The Department’s current duty handguns, the Glock 17 and Smith & Wesson M&P 9mm have served reliably and have been in service for about 10 years.

Advancements in firearm technology, increased emphasis on officer survivability, and feedback from patrol personnel, training staff, and specialized units indicate an opportunity to enhance performance beyond polymer-framed duty pistols.

In August 2025, the Department’s Training Unit conducted a structured, five -day evaluation of multiple duty handgun platforms under controlled range conditions. Firearms evaluated included the current Glock 17, the Staccato P-4.0 HD, the Staccato P-4.5 HD, the HK VP9, and the Smith & Wesson M&P 9mm. Officers assessed performance during qualification courses, rapid -fire drills, reloads, and stress-based shooting scenarios.

The Staccato P -4.5 HD was unanimously preferred by participating officers. Officers cited reduced recoil, smoother and more consistent trigger characteristics, faster target reacquisition, and improved control during rapid engagements. These factors directly support improved officer performance and survivability in critical incidents.

Additionally, the Department’s SWAT Team has utilized Staccato pistols operationally for several years with zero documented reliability or performance issues, providing real -world validation of the platform beyond controlled testing environments.

Key advantages supporting the Department’s recommendation include:
 Enhanced Accuracy and Control: The steel-frame 2011 design reduces recoil and muzzle rise, improving shot placement and follow-up speed.  Reliability: No malfunctions were recorded during Department testing, and the platform has a proven duty record with specialized units.  Officer Safety and Confidence : Officers reported increased confidence when engaging targets under time and stress constraints.
 Durability and Servic e Life: Manufactured in the United States using duty - grade materials and supported by a lifetime warranty, annual inspections, and replacement of defective components.
 Cost Efficiency Over Time : While initial unit cost exceeds polymer -framed pistols, reduc ed maintenance needs, lower failure rates, and extended service life support long-term fiscal responsibility.
 Compatibility and Integration: Safariland 6390RDS holsters are purpose -built for the Staccato platform and compatible with common optics and weapo n- mounted lights. Existing magazine pouches remain compatible, avoiding additional costs.
 Training Support: Staccato will provide complimentary armorer and transition training, ensuring a controlled and efficient rollout.
393
CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: FEDERAL ASSET FORFEITURE - DUTY HANDGUNS AND ACCESSORIES.

PAGE: 3

This purchase constitutes a non -routine performance upgrade and does not replace a scheduled or budgeted duty -weapon replacement cycle. Use of Federal Asset Forfeiture funds in this manner supplements and enhances the Department’s overall law enforcement capabilities and does not constitut e supplantation. The Chino Police Department recommends that City Council approve the use of Federal Asset Forfeiture funds of up to $296,014.05 for the purchase of the Staccato P -4.5 HD duty handgun system, including optics, holsters, and associated equipment, for sworn personnel.

This transition represents a strategic investment in officer safety, operational readiness, and alignment with contemporary law enforcement standards. It is also a one -time capital investment in upgraded duty firearms and relate d equipment. The Chino Police Department anticipates reduced long-term maintenance costs due to enhanced durability and manufacturer warranty coverage. Trade-in credit will offset a portion of the total cost.

Attachments: Quote-Staccato
Quote-Proforce

394
TO:

DATE:

RE:

MSRP: Quantity: Total:
$2,899.00 95.00 $199,405.00
$0.00
$29.99 570.00 $0.00
$0.00
$74.99 95.00 $0.00
$0.00
$774.99 95.00 $73,624.05
Custom Serial Numbers $60.00 95.00 $5,700.00
$60.00 95.00 $5,700.00

5.00 70.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$2,700.00 2.00 $0.00
$2,400.00 1.00 $0.00
$3,400.00 1.00 $0.00
$2,899.00 95.00 $0.00
$2,899.00 95.00 $0.00
$284,429.05
Amount $24,887.54
267.869.97 $4,935.25
$0.00 $31,250.00
$0.00 $283,001.84
Due Date
1 60 Days
2 SKU: 20-2300-000106
MAGAZINE 18 ROUND 9MM
SKU: 702-MECGAR-18-9X19
STACCATO P-4.5 HD Preferred
Payment Terms Net

AGENCY ARMORER COURSE
$0.00OIS LOANER PROGRAM
$0.00
LIFETIME WARRANTY $0.00

AGENCY TRAIN-THE-TRAINER

TRANSITION COURSE
TOTAL
Credits

FREIGHT
Sub TOTAL
TAX
3 Payment #
$2,099.00

HOST OPTIC MOUNT SYSTEM
SKU: 275-30100-00
Trijicon RMR HD
SKU:250-01016072-SP
Glock 17 Gen 4
Agency Engraving
$0.00
$0.00
ANNUAL INSPECTIONS (2 in 4 years)
$774.99
$0.00
$0.00
$300.00
$60.00
Sales Quotation
John Ray - LE Business Development Manager - SouthwestFROM:

Model: $/Unit:

Glock 17 Gen 5 W Optic
Trade in Credit:
$425.00
Sergeant Joe McArdle
Chino Police Department
11-Feb-26
$60.00
Staccato 2011 LLC. | 1223 CR 233, Florence, TX 78527 | main 512.819.0656 www.staccato2011.com 395

QUOTE#O R D E RSHIP DATE Q U O T EPAGESOLD SHIPTO TOJOB # ORD. DATE CUST.# LOC. SALESMAN SHIP VIA FRT.QTY. UOMORDER ITEM NO./DESC. UNIT PRICE DISC. NET PRICE

COMMENTTERMS
734951 1 A.S.A.P. CITY OF CHINO CITY OF CHINO POLICE DEPT FINANCE DEPT ATTN: A/P 5450 GUARDIAN WAY PO BOX 667 CHINO CA 91708-0667 CHINO CA 91710 N/A 09/26/25 000900 A CHRIS BRAZZILL FX G-FOB ORIGIN 90 6390RD-5582-131 125.95 EA 11,335.50 SFL 6390RDS ALS DTY HLST LI RH .00 HD P4.5 LGT(6390RDS-5582-131) 5 NON-STOCK 125.95 EA 629.75 6390RDS-5582-131 SFL ALS DTY .00 HLST LI LH IMPORTANT: To order from this quotation, please sign below. Printed Name: ____________________________________________ - Date: ___________________________ P.O.:___________________ - Signature: _______________________________________________ SALES AMOUNT 11,965.25 for timothy contreras by ryan 8.750% SALES TAX 1,046.96 SUB TOTAL 13,012.21 DUE NET 30 DAYS 396

MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 24, 2026

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

SUBJECT
..titl e
Approval of Settlement Agreement with K. Hovnanian for Required Accessibility and Public Works Improvements.
..end

RECOMMENDATION
..recommendation
It is recommended that the City Council consider and approve the settlement agreement between the City of Chino and K. Hovnanian for required improvements in the City of Chino per the Americans with Disabilities Act, California Law, the Chino Municipal Co de and applicable Subdivision Improvement Agreement.
..body

FISCAL IMPACT
The payment by K. Hovnanian to the City totaling $33,597.50 covers the attorneys’ fees and costs awarded to the City by the Court for defending the complaint filed by K. Hovnania n challenging the City’s requirements for K. Hovnanian to perform improvements to those public facilities that are the subject of the settlement agreement.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
 Positive City Image
 Responsible Long-Range Planning
 Effective Technology

Revenue:

Expenditure:

Transfer In: Transfer Out:
397
CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: APPROVAL OF SETTLEMENT AGREEMENT WITH K. HOVNANIAN FOR REQUIRED ACCESSIBILITY AND PUBLIC WORKS IMPROVEMENTS.

PAGE: 2

BACKGROUND
The City Attorneys’ office and City staff have been engaged in settlement negotiations with K.

Hovnanian’s Sonata at the Reserve, LLC (“Developer”) in connection with Tract Map No. 18778 in the City of Chino that have accessible elements under the Americans with Disabilities Act and California law as well as public works improvements required per the Chino Municipal Code.

Tract Map No. 18778 is located south of Bickmore Avenue and north of the Souther n California Edison easement, between Rincon Meadows Avenue and Mill Creek Avenue as shown in Exhibit A. The disputes focus on prior City approvals for construction of the above Tract and per the October 29, 2014, Subdivision Improvement Agreement between the City and Developer.

Following extensive negotiations, the parties have reached conceptual agreement on the terms of the settlement of the dispute that was the subject of a complaint filed by Developer against City in the San Bernardino Superior Court, Case No. CIVSB2403234 on January 18, 2024, disputing whether the additional City -requested improvements were required or not appropriately completed and alleged that the City’s requirements constituted a breach of contract. The City successfully defended that Complaint and was aw arded $33,597.50 by the Court for the City’s attorneys’ fees and costs in defending the Complaint.

The proposed settlement agreement (Exhibit B) tracks the arrangement of the prior settlement agreements the City entered into in 2022 with KB Homes, Lennar H omes of CA, Lewis Management Company, Richmond American Homes, and Woodside Homes. The approval of the settlement agreement paves the way for the Council to consider the acceptance of various public improvements that have remained unaccepted and the releas e of bonds in place for those improvements.

ISSUES/ANALYSIS
The prior settlement agreements covered improvements for tracts categorized into Categories A, B, and C, based on the time of the plan approval/approval of encroachment permit as follows:
• CATEGORY A: December 31, 2016 or earlier
• CATEGORY B: January 1, 2017 through December 31, 2019 • CATEGORY C: January 1, 2020 and later
• CATEGORY D: Previously approved projects with corrections already made The disputes focused on the construction of access ible curb ramps and sidewalks in the projects.

For improvements in Category A: The City accepts all improvements without further work or action by the participating developer, except administrative closeouts. Once all administrative paperwork has been comp letely submitted, City Staff has 45 days to verify all submittals.

Thereafter, the City completes the bond exoneration/release process. The developers are required to take out the required warranty security. At the end of the warranty period, the City releases the warranty security within 10 days upon notice received from each of the developers.

After release of the warranty security, no further action will be taken. Upon acceptance, the City assumes responsibility for any claims made regarding all improvem ents which, by this point, range in age from 6 to 17 years in the field, post-construction and will make the improvement as part of a future maintenance project.

For improvements in Category B: Same as Category A, except the developers of the prior agreements are to pay an “in lieu” fee to allow the City to make corrections or other remedial 398
CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: APPROVAL OF SETTLEMENT AGREEMENT WITH K. HOVNANIAN FOR REQUIRED ACCESSIBILITY AND PUBLIC WORKS IMPROVEMENTS.

PAGE: 3

work that might be necessary to bring accessible elements into compliance. This was chosen due to the knowledge, skill, and facility with accessibility requirements dev eloped over the past 5 years, and the desire of the developers to be “off the projects.” The payments received from those developers are not restricted, and the City retains the discretion on how to program the monies in terms of remediation priorities. Pa yments under this category are made within 30 days of the City submitting an invoice to the respective developer, using a negotiated amount of $7,000 per corner and 8% of the project area at $7/square foot for sidewalks.

For improvements in Category C: The developers are to construct accessible improvements based on the City’s current accessibility policy and other standards, in effect at the time of the plan approvals. The developers will follow the regular construction process for approvals, submittals, punchlists, acceptance by the Council at an appropriate future date, and standard warranty security requirements.

For improvements in Category D: The developers have constructed all accessible improvements to City standards and are in the final stages of pr oject close out for acceptance by the Council at a future date.

Having been constructed before 2016, the K. Hovnanian improvements fall under Category A above. Approval of the settlement agreement will finally resolve longstanding disputes regarding the scope and extent of accessibility and public works improvements necessary to allow the City Council to accept the improvements as complete. K. Hovnanian will follow the regular construction process for approvals and submittals. Thereafter, Staff will return to Council at an appropriate future date to consider the acceptance of the completed improvements, which will include completion of the improvements required per Exhibit C - Land Development Punchlist of the settlement agreement.

Beyond the required comple tion of the improvements required per Exhibit C of the settlement agreement, the parties will waive any future claims, damages or any rights to reimbursement of any attorneys’ fees as a result of the disputes.

Attachments:

Exhibit A - Vicinity Map
Exhibit B - Settlement Agreement

399
400

01225.0026 2065554.2 - 1 -

K. HOVNANIAN’S SONATA AT THE RESERVE, LLC
[Tract No. 18778]

SETTLEMENT AND RELEASE AGREEMENT
This Settlement and Release Agreement (“Agreement”) dated and effective March 24, 2026, is entered into by and between K. HOVNANIAN’S SONATA AT THE RESERVE, LLC, a California limited liability company (“Developer”) and the CITY OF CHINO, a general law city and municipal corporation (“City”). Developer and City are collectively referred to as “Parties.”

RECITALS
A. On October 29, 2014, the City and Developer entered into the Subdivision Improvement Agreement (“SIA”) (Exhibit A), which is incorporated herein by this reference, providing Developer with conditional authorization to subdivide and construct, on real property reflected on Tract Map No. 18778 owned by the Developer, a total of 65 numbered lots and five lettered lots within the subdivision in Chino known as “Sonata at The Preserve”, located at Bickmore Avenue and Mill Creek Avenue and consisting of approximately 9.25 gross acres (hereinafter called the “Project”).

B. The SIA required Developer to, inter alia, construct, install and complete all of the public improvements contained in Exhibit 1 of the SIA in a good and workmanlike manner, according to the approved plans and specifications, and to the satisfaction of the Assistant City Manager/Director of Public Works or his designee, within two (2) years from the date of the City’s approval of the SIA. The time for completion could be extended by up to one (1) additional year by the City Council for good cause shown.

C. After the City’s Approval (as defined in the SIA) of the plans and specifications of the Developer’s Project, the City’s personnel field inspected the Developer’s Project and improvements thereon, many without objection. However, the City ultimately required Developer to demolish certain items, including but not limited to streets, sidewalks, gutters and curb ramps to comply with the City’s latest standard specifications and the provisions of the Chino Municipal Code to the satisfaction of the City pursuant to the SIA. Developer thereafter filed a complaint in the San Bernardino Superior Court, Case No. CIVSB2403234 on January 18, 2024, which disputed whether the additional City-requested improvements were required or not appropriately completed (“ Disputes”) and alleged that the City’s requirements constituted a breach of contract (“Complaint”).

D. Following the City’s successful demurrer to the Complaint, Developer filed a First Amended Complaint (“First Amended Complaint”). The City again demurred, and the First Amended Complaint was dismissed with prejudice on April 11, 2025. On September 16, 2025, the Court ruled that Developer is required to pay costs in the amount of $1,948.50 and attorney s’ fees in the amount of $31,649 to the City (Exhibit B). As a result of the City’s determination that the constructed improvements do not comply with the Approved Subdivision Improvement Plans, the City has: a) not finally accepted certain improvements constructed by the Developer, and b) declined to exonerate the various construction and improvement bonds, security instruments and letters of credit (“Bonds”) provided for Developer’s Project, which Developer has continued to maintain.

E. As a result of the dismissal of the First Amended Complaint and City’s determination that the constructed improvements do not comply with the Approved Subdivision Improvement Plans, the Parties have agreed that certain deficiencies in improvements by Developer will be addressed prior 401

01225.0026 2065554.2 - 2 -

to the City’s acceptance of public improvements as outlined in the Land Development Punchlist (Exhibit C).

F. Specifically, the Punchlist requires that Developer bring certain items into conformance with permit, plans, standards, and/or specifications by: setting all survey monuments; submitting centerline ties per City Standard Drawing No. 900 for review and approval, red-lined “Record Drawings” (“As-Builts”) for review and approval, AutoCAD format of plans (once “As-Built” plan have been verified, List of Public Improvements constructed, final compaction report records for the construction of public improvements, sewer system CCTV videos and reports; installing 1-inch air vacuum assembly at Crane Ct per the approved plans and City of Chino Standard Drawing No. 435B; constructing signing and striping as per the approved plan SP -622; implement the improvement recommendations outlined in the September 2025 Pavement Investigation Report prepared by LaBelle Marvin, except that the road slurry application shall consist of crack sealing followed by the placement of either Type II REAS or Type II RPMS; and removing Cobblestones per City of Chino Standard No. 275. The City also requires certain repairs and clean-up be made, such as the installation of water meter coupling and A34 adaptor and 3-inch “W” stamp in the curb face at service location; adjustment to grade all sewer and storm drain manholes; painting of all fire hydrants and blow off per City of Chino Standard Drawing No. 445A; final inspection of the streetlights pedestal; and so forth, as enumerated in Exhibit C.

G. In the interest of resolving all Disputes related to Developer’s Project and improvements thereon, the Parties agree to work together cooperatively to complete final approval and acceptance of the improvements, reduction and exoneration of the related bonds, and all other security reconveyances. To this end, the Parties agree that, in exchange for Developer addressing the deficiencies in Exhibit C and paying to City the attorneys’ fees and costs in Exhibit B, the City shall assume responsibility for implementing any and all corrective actions necessary to install, correct and maintain the improvements that are the subject of the Approved Subdivision Improvement Plans compliant with the SIA, and any and all applicable federal, state, and local laws, regulations, or guidance applicable to the improvements and shall further exonerate all Bonds previously required of the Developer.

H. The Parties now desire to resolve all the issues encompassed in the First Amended Complaint and Punchlist and enter into this Agreement, to resolve all underlying and related contentions and allegations FINALLY, FULLY, COMPREHENSIVELY AND CONCLUSIVELY by the Parties, by and through this Agreement.

I. The Parties understand that this Agreement is subject to the approval of the City Council. The date upon which the City Council approves this Agreement shall be deemed its Effective Date.

NOW, THEREFORE, in consideration of the above Recitals, covenants and agreements, the Parties agree as follows:

SETTLEMENT

1. DEFINITIONS.

A. As used herein, the term “Claims” means all claims, charges, liabilities, damages, obligations, costs, expenses (including without limitation attorneys’ fees), rights and causes of action of any kind, legal or equitable, whether known or unknown, anticipated or unanticipated, past, present or future, contingent or fixed, existing, claimed to exist or which may hereafter exist under the United States 402

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Constitution, the California Constitution, applicable common law, contract, tort or other federal, state, local, or municipal law or regulation, relating in any way to the facts and circumstances that give rise to the Disputes, whether said facts and circumstances occurred prior to or after the occurrence of the Disputes, including but not limited to those alleged in the Complaint and First Amended Complaint.

B. As used herein, the term “Effective Date” means the first (1st) business day after the City Council’s approval of this Agreement. This Agreement shall not become effective, and neither party shall have any rights or obligations hereunder, until the “Effective Date”.

C. As used herein, the term “ Approved Subdivision Improvement Plans” refers to those plans for the Project on file with the City’s Public Works Department.

D. As used herein, the term “Ruling” refers to the ruling on the demurrer to the First Amended Complaint and motion for attorneys’ fees and costs issued by the Hon. Carlos M. Cabrera of the San Bernardino Superior Court on September 16, 2025, as detailed in Exhibit B.

2. REPRESENTATIONS AND WARRANTIES.

A. Each party hereby represents and warrants that:

(i) It has the power and authority to enter this Agreement. (ii) None of the Claims released hereunder have been in the past or will in the future be assigned, conveyed, or transferred in any fashion to any other person and/or entity.

3. SETTLEMENT TERMS.

A. City Obligations.

(i) Nothing in this Agreement is intended to or shall have the lawful effect of contracting away the City’s zoning authority or any other aspect of the City’s police power or any discretionary approval that rests solely with the City Council, provided, however, the City agrees it will not use its authority, power or any discretionary approval in a manner that it is inconsistent with the provisions of this Agreement. City Staff and counsel for the City have previously reviewed the terms and conditions of this Agreement and have advised the City Council as to the sum and substance of its terms, to the satisfaction of the Council prior to any duly noticed public meetings. City Staff and counsel for the City agree to recommend acceptance and approval of all disputed improvements and projects described herein, consistent with the terms of this Agreement.

(ii) The City shall notice any public meeting(s) required for presentation and approval of th is Agreement in accordance with the Brown Act (Government Code § 54950, et seq.) and other applicable laws, as promptly as is feasible . If the City Council fails to accept the improvements within sixty (60) days following the Effective Date, this Agreement shall be of no further force or effect on the sixty -first (61st) day. Upon approval of this Agreement, the following will govern the process for final acceptance, bonds, and related matters.

a. The City and Developer agree that the Project and related improvements will be deemed accepted by Staff who shall recommend acceptance of such improvements to the City Council as set forth in Exhibit C, which is incorporated herein by this reference, subject to the Developer’s payment of the City’s attorneys’ 403

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fees and costs as set forth in Exhibit B.

b. Developer shall maintain a warranty bond as required by Government Code § 66499.3 for a period of twelve (12) months. Within ten (10) business days after expiration of the warranty bond period, upon presentation of a bond release form substantially in compliance with Exhibit D, which is incorporated herein by this reference, City shall execute such bond release to permit exoneration thereof.

c. City Council’s acceptance of the improvements described above shall include a complete defense, indemnification and hold harmless of Developer in connection with any legal challenge brought by a third party, government entity or other person or entity relating to such improvement s or this Agreement, with the City’s legal counsel of choice.

d. All other agreements between the parties relating to these parcels and any security therefore are specifically superseded by this Agreement.

B. Developer’s Obligations.

(i) Developer and each of Developer’s agents shall not oppose the City’s approval of the Agreement and shall support, both verbally and in writing, if requested by the City, the City’s acceptance of the Agreement (“ Support Covenant”). This Support Covenant shall be of no further force or effect on the sixty-first (61st) day after the Effective Date if City Council fails to accept the improvements unless the Parties agree in writing to extend this deadline.

(ii) Developer shall not file any lawsuits, administrative appeals pursuant to the City’s Municipal Code, or take any other enforcement action which arises from the Punchlist whatsoever, in whatever shape or form, to challenge, appeal, or otherwise seek to influence in any respect, approval of this Agreement except as may be necessary to support or defend the validity of this Agreement.

(iii) Before the date of the City’s acceptance of this Agreement, Developer shall pay costs in the amount of $1 ,948.50 and attorney fees in the amount of $31,649 , for a total of $33,597.50 to the City as outlined in Exhibit B. City shall be authorized to deposit said payment immediately upon City’s approval of this Agreement.

C. General Obligations of All Parties.

(i) The Parties will use their best efforts and cooperate as necessary in performing and implementing this Agreement in good faith.

(ii) As to the warranty bonds required by Government Code § 66499.3 for the Project, the parties have agreed that no claims shall be made under such bonds, as all potential claims have been waived in this Agreement. If a claim of defective construction or other fact allegedly giving rise to a claim under the Warranty Bond: a) the City shall investigate such allegations and reject such claim if appropriate; b) if the City considers the allegations to have merit, the parties will meet and confer and submit the allegations to mediation, consistent with Paragraph 5(G) below, before tending such claim to the surety.

4. GENERAL RELEASE.
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A. General Release and Discharge of Claims by Developer. Upon the Effective Date of this Agreement, Developer, for itself and all of its predecessors, successors, assigns, representatives, attorneys, employees, officers, agents and affiliates1, does hereby fully and forever release and discharge the City, and all of its predecessors, successors, assigns, representatives, attorneys, agents, elective and appointive council members, council boards, commissions, commissioners, officers, employees, of and from any and all disputes, Claims, demands, rights, damages, costs, litigation expenses, attorneys fees, expert fees, consultant fees, other fees, interest, lost profits and earnings, diminution in the value of the business, loss of past, current, future and subsequent business and patronage, the value of the leasehold interest, the loss of goodwill, any inverse condemnation claims, any claims for the taking of property, and any other damages, costs or expenses arising from any and all disputes relating to Developer’s Project that Developer may have or may hereafter accrue (except as to any alleged breach of this Agreement), including without limitation, any and all known and unknown, foreseen and unforeseen claim, damage and injury, relating to, or in any way, directly or indirectly, involving or arising out of any facts or circumstances related to the Complaint or First Amended Complaint.

B. General Release and Discharge of Claims by City. Upon the Effective Date of this Agreement and subject to confirmation by City’s financial institution that the payment by Developer of the attorneys’ fees and costs in Exhibit B has been fully cleared for deposit into City’s account, City, for itself and all of its predecessors, successors, assigns, representatives, attorneys, employees, officers, agents, affiliates, elective and appointive council members, council boards, commissions, and commissioners, does hereby fully and forever release and discharge the Developer, and all of its predecessors, successors, assigns, representatives, attorneys, agents, affiliates, officers, directors and employees, of and from any and all disputes, claims, demands, rights, damages, costs, litigation expenses, attorneys fees, expert fees, consultant fees, other fees, interest, lost profits and earnings, and any other damages, costs and expenses arising from any and all disputes relating to Developer’s Project that City may have or may hereafter accrue (except as to any alleged breach of this Agreement), including without limitation, any and all known and unknown, foreseen and unforeseen claim, damage and injury, relating to, or in any way, directly or indirectly, involving or arising out of any facts o r circumstances related to the Complaint or First Amended Complaint.

C. Waiver of Claims. It is the intention of the Parties, in executing this Agreement and receiving the consideration recited herein, that this Agreement will be effective as a full and final accord and satisfaction and general release of all Claims, debts, damages, liabilities , demands, obligations, costs, expenses, disputes, Disputes or causes of Disputes, that the Parties may have against each other by reason of any acts, circumstances or transactions relating in any way to the disputes. In furtherance of this intention, the Parties hereby acknowledge that they are familiar with California Civil Code §1542 and that they hereby expressly waive the protection of that section, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR

RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER

FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY

HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT

1 “Affiliates” shall mean and include, without limitation, all officers, directors, shareholders, members, partners, trustees, parent companies, sister companies, affiliates, subsidiaries, employers, designees, attorneys, accountants, predecessors, successors, insurers, representatives, agents, designees, authorized parties and entities and related entities and individuals of a party under this Agreement. 405

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WITH THE DEBTOR OR RELEASED PARTY.

The Parties each waive and relinquish any right or benefit that they have or may have under California Civil Code §1542. That is, the Parties shall not invoke the benefits of California Civil Code §1542, or any such similar law, to prosecute or pursue any Claims released hereunder. In connection with such waiver and agreement, the Parties acknowledge that they are aware that they or their attorney may hereafter discover Claims or facts or legal theories in addition to or different from those which they know or believe to exist with respect to the Disputes, but that it is the intention hereby to fully, finally, and forever settle and release all of the Claims, known or unknown , suspected or unsuspected, which do now exist, may exist, or heretofore have existed by reason of any acts, circumstances, facts, events, or transactions relating in any way to the Disputes. It is expressly acknowledged and understood by the Parties to this Agreement that the Parties separately bargained for the foregoing waiver of the provisions of California Civil Code §1542. The Parties consent that this release shall be given full force and effect in accordance with each and all the express terms and provisions, including those terms and provisions related to such unknown and unsuspected claims, demands, and causes of Disputes relating in any way to or arising out of the facts and circumstances underlying or connected with the Disputes.

D. No Representations and Warranties . Each Party represents and warrants to the other that, except as otherwise expressly provided in this Agreement, it is not relying on any representation whatsoever, whether express or implied, including without limitation, representations of fact or opinion made by or on behalf of the Parties herein.

E. Mutual Indemnification. The Developer hereby agrees that it shall indemnify and defend and hold the City and its elected and appointed officials, boards, commissions, officers, agents, attorneys, representative, and employees, harmless from any and all liability, loss, expense, damage, or claims which may arise directly or indirectly from or in connection with any allegation that the warranties and representations made by Developer in this Agreement are false and/or for the breach of any of the terms and conditions of this Agreement by Developer. The City hereby agrees that it shall indemnify and defend and hold th e Developer and its predecessors, successors, assigns, representatives, attorneys, agents, affiliates, officers, directors and employees, harmless from any and all liability, loss, expense, damage, or claims which may arise directly or indirectly from or in connection with any allegation that the warranties and representations made by City in this Agreement are false and/or for the breach of any of the terms and conditions of this Agreement by City.

F. No Waiver of Agreement . Nothing herein shall be deemed as a waiver or release of the warranties, representations, rights and obligations of the Parties as set forth in this Agreement.

5. MISCELLANEOUS PROVISIONS.

A. This Agreement shall be governed and interpreted in accordance with the laws of the State of California. Each party agrees that the laws of the State of California shall apply and that any claims brought hereunder shall be subject to the laws and statutes of California. The venue of any legal challenge to this Agreement shall be the San Bernardino County Superior Court or the United States District Court for the Central District of California – Eastern Division.

B. Integrated Agreement. This Agreement and the exhibits attached hereto, which are incorporated into and form a part of this Agreement, contain the entire understanding and agreement between the Parties. No other representations, covenants, undertakings, or other prior 406

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or contemporaneous agreements, oral or written, respecting such matters, which are not specifically incorporated herein, shall be deemed in any way to exist or bind any of the Parties. The Parties acknowledge that this Agreement has been executed without reliance upon any such promise, representation, or warranty not contained herein.

C. Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by all the Parties. No waiver of any of the provisions of this Agreement shall be deemed to constitute a waiver of any other provision whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executed in writing by the Parties.

D. Binding on Successors . This Agreement and the covenants and conditions contained herein shall obligate, bind, extend to and inure to the benefit of the Parties and each of their respective successors in interest, including, but not limited to, their administrators, executors, owners, partners, officers, directors, shareholders, legal representatives, assignees, attorneys, successors, and agents or employees of the Parties hereto. Prior to assigning any rights or obligations Developer has or may have with respect to this Agreement to a third party, Developer shall ob tain written confirmation and deliver to City that such assignee shall be bound by the terms of this Agreement and that such Assignee shall also be entitled to receive the benefits of this Agreement.

E. Representation. The Parties affirmatively represent that they have been represented by counsel of their own choosing. They have read this Agreement and have had the terms used herein and the consequences thereof explained by their attorneys of choice.

F. Construction. This Agreement shall not be construed against the Party preparing it but shall be construed as if all Parties jointly prepared this Agreement. Any uncertainty and ambiguity shall not be interpreted against any one Party. Language in all parts of the Agreement shall be in all cases construed as a whole according to its plain meaning.

G. Dispute Resolution . In the event a dispute arises as to the meaning or interpretation of any provision of this Agreement, including but not limited to any allegation of defective construction or other claim that could give rise to a demand under a warranty bond provided pursu ant to Government Code § 66499.3, the parties shall first meet and confer in good faith for a period of thirty (30) days. If the parties are unable to resolve the matter, either party may refer the dispute to legal counsel for further e fforts at resolution. Failing resolution among counsel within thirty (30) days thereafter, the parties shall, within fifteen (15) days, agree upon a qualified mediator, with at least ten (10) years of active experience in planning, construction, and ADA co mpliance, who shall conduct a mediation within thirty (30) days of appointment. If mediation is unsuccessful, either party may initiate litigation to resolve the dispute.

H. Attorneys’ Fees and Costs. All attorneys’ fees, expert fees and costs incurred through the date of this Agreement that relate in any way to the negotiation or preparation of this Agreement or any obligations called for herein, outside of those detailed in Exhibit B and required to be paid by Developer to City pursuant to this Agreement, shall be borne by the respective Parties and each Party agrees to waive any claim, or claims, against any of the other Parties for the reimbursement of all, or any portion of said fees or costs. Should suit be brought to enforce or interpret any part of this Agreement, the prevailing party shall be entitled to recover its attorney’s fees and costs.

I. No Admission of Liability. This Agreement and the releases contained herein and the consideration referred to herein are done to save litigation expense and to effect the 407

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compromise and settlement of claims and defenses which are denied, disputed, and contested.

Nothing contained herein shall be construed as an admission by any Party of any liability of any kind to any other Party. The Parties agree that each Party expressly denies that it is in any way liable or indebted to any other Party and no person interpreting this Agreement shall be able to infer that any Party has engaged in any conduct giving rise to liability to any other Party.

J. Gender Neutral. Whenever in this Agreement the context may so require, the masculine, feminine and neutral genders shall be each deemed to include the other and the singular and the plural shall refer to one another.

K. Counterparts. This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original and all of which shall constitute an agreement to be effective as of the date of signing. Further, signatures transmitted and memorialized by facsimile or electronically shall be deemed to have the same weight and effect as an original signature. The Parties may agree that an original signature will be substituted at some later time for any facsimile or electronic signature.

L. Captions and Interpretations. The paragraph titles and captions are inserted in this Agreement as a matter of convenience. As such, the paragraph titles or captions are not intended to define or describe the scope of any provision.

M. Invalid Clause May Be Severed . If any provision, clause, or part of the Agreement is adjudged illegal, invalid or unenforceable, the balance of this Agreement shall remain in full force and effect.

N. Survival of Warranties and Representatives . The warranties and representations made in this Agreement are deemed to survive the execution of this Agreement.

O. BY SIGNING THIS AGREEMENT, THE PARTIES CERTIFY THAT THEY HAVE

READ IT, THAT THEY HAVE CONSULTED WITH THEIR LEGAL COUNSEL ABOUT ITS EFFECT, AND THAT THEY FULLY UNDERSTAND IT.

[Signature page follows]

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the date first above written and their attorneys have indicated their approval as to form by their respective signatures in the appropriate spaces below.

K. HOVNANIAN’S SONATA AT THE PRESERVE, LLC

By:

NAME
TITLE

APPROVED AS TO FORM:

K. FINNERTY LAW, INC.

ATTORNEYS FOR DEVELOPER

By:

Kathleen E. Finnerty

CITY OF CHINO, CITY COUNCIL

By:

Eunice M. Ulloa, Mayor

ATTEST:

By:

Natalie Gonzaga, City Clerk

APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP

COUNSEL FOR CITY OF CHINO

By:

Fred Galante, City Attorney

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EXHIBITS LIST

• EXHIBIT A – Subdivision Improvement Agreement dated October 29, 2014
• EXHIBIT B – San Bernardino Superior Court Ruling dated September 16, 2025
• EXHIBIT C – Land Development Punchlist
• EXHIBIT D – Bond Release Letter

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Exhibit A

Subdivision Improvement Agreement Between the City of Chino and K. Hovnanian’s Sonata at the Preserve, LLC

411
Contract No. log, 16,7
Approved 11lt/qloot 117

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 18778
THIS AGREEMENT is entered into by and between the CITY OF CHINO, a Municipal Corporation of the State of California ( hereafter called " the City") and K. Hovnanian' s Sonata at the Preserve ( hereafter called " the Subdivider").

WHEREAS, the Subdivider is the owner of certain real property situated in the City of Chino, County of San Bernardino, State of California, generally known and described as Tract Map No. 18778, which is the subject matter of this Agreement (hereafter called "the Property"); and
WHEREAS, the Subdivider has submitted an application to the City to subdivide the Property as Tract Map No. 18778 ( hereafter called " the " Map"); and WHEREAS, the Subdivider proposes to develop the Property and construct certain improvements hereon as hereinafter set forth; and
WHEREAS, the City desires to assure that said proposed improvements will be constructed and installed in a good and workmanlike manner, and in strict accordance with all applicable laws, statutes, ordinances, resolutions and regulations now in force and effect in the City of Chino, and the terms and conditions imposed on the approval of said Map by the Planning Commission and the City Council, all of which are incorporated herein; and WHEREAS, the Subdivider acknowledges familiarity with the City's subdivision ordinance and requirements and the Subdivision Map Act ( Government Code Sections 66410- 66499. 37) and hereby agrees to comply therewith; and
WHEREAS, the Subdvider has prepared and submitted a final tract map for the Property in accordance with the City's requirements for approval by the City Council.

NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS:

Article 1 Duty to Install Public Improvements

1. 1 Requirements for Public Improvements. The Subdivider shall, at his/ her/ its own cost and expense, construct, install and complete all of the public improvements contained in Exhibit 1 in a good and workmanlike manner, according to the approved plans and specifications, and to the satisfaction of the Assistant City Manager/ Director of Public Works or his designee, within two ( 2) years from the date of the City's approval of this Agreement, and within the time frame and subject to the conditions set forth in the Encroachment Permit that is issued for the required public improvements . The time for completion may be extended up to one ( 1) additional year by the City Council for good cause shown. The sum of One Million Six Agreement Masters\ Subdivision Improvement Agreement( Preserve)\ REV 13- 1121\ MB

Hundred One thousand seven hundred dollars ($ 1, 601, 700) is the estimated construction cost of said improvements.

1. 2 Ownership of Public Improvements. All public improvements constructed or installed pursuant to this Agreement shall become the sole exclusive property of the City, without payment therefore, upon acceptance of said improvements by the City.

1. 3 Definition of Improvements. The term " improvement" shall mean any and all work or infrastructure required for the development of this subdivision, including, but not limited to, bicycle trails, communication transmission devices, curbs, drainage facilities, electric transmission devices, excavation, grading, gutters, landscaping, pathways, sanitary sewers, sidewalks, streets, street lights, traffic control devices, utilities, water lines, as shown on plans, profiles or specifications prepared or submitted by the Subdivider.

1. 4 Repair or Reconstruction of Defective Improvements. If, within a period of one ( 1) year after final acceptance of work performed under this Agreement, any improvement or part of any improvement constructed, installed or furnished, or caused to be constructed, installed or furnished by the Subdivider, or any of the work done under this Agreement fails to comply with, or satisfy, any of the requirements of this Agreement, or the specifications referenced herein, the Subdivider shall, without delay and without any cost to the City, repair or replace or reconstruct any defective or otherwise unsatisfactory part or parts of the work or improvements. Should the Subdivider fail to act promptly or in accordance with these requirements, or should an emergency require repairs or replacements to be made before the Subdivider can be notified, the City may, at its sole option, make the necessary repairs or replacements or perform the necessary work, and the Subdivider shall pay to the City the actual cost of such repairs, plus 15 percent.

1. 5 Repair or Replacement of Unrelated Improvements. The Subdivider shall replace, or have replaced, or repair, or have repaired, as the case may be, all pipes and monuments situated on said property, delineated on the Map, which have been destroyed or damaged and the Subdivider shall replace, or have replaced, repair, or have repaired, as the case may be, or pay to the owner, the entire cost of replacement or repairs, of any and all property damaged or destroyed by reason of any work done hereunder, whether such property be owned by the United States or any agency thereof, or the State of California, or any agency or political subdivision thereof, or by the City, or by any public or private corporation, or by any person whomsoever, or by any combination of such persons. Any such repair or replacement shall be to the satisfaction, and subject to the approval, of the Assistant City Manager/ Director of Public Works or his designee.

1. 6 Time of Completion. All of the public improvements shall be completed within two ( 2) years from the date of the City's approval of this Agreement, and within the time frame and subject to the conditions set forth in the Encroachment Permit that is issued for the required public improvements. In the event that the Subdivider fails to complete the public improvements within said period, the City may complete said work and shall be entitled to recover the full cost and expenses thereof from the Subdivider, or its surety, as hereinafter provided. The City may require the Subdivider, or its surety, to pay the City, in advance, sufficient monies to pay for the City's cost of completing construction and installation of said public improvements.

Agreement Masters\ Subdivision Improvement Agreement( Preserve)\ REV 13- 1121\ MB

1. 7 Security. Contemporaneously with the execution hereof, the Subdivider shall file security, subject to the approval of the City Attorney, pursuant to Section 66499 of the Government Code and Section 19. 09. 010 of the Chino Municipal Code, to guarantee performance of the requirements of this Agreement, the terms and conditions imposed on the approval of Map, and all of the City's ordinances, specifications and regulations as follows:
a. A security device in an amount equal to 100 percent of the estimated construction cost to guarantee the faithful performance of all of the requirements of this Agreement, including the construction, installation and completion of the work and public improvements required by this Agreement; and
b. A security device in an amount equal to 50 percent of the estimated construction cost to guarantee payment to the contractors, their subcontractors, and to persons renting equipment or furnishing labor and materials to said contractors, for the public improvements required by this Agreement; and
c. All security devices under this Agreement shall also guarantee the payment of reasonable attorney fees, expert witness fees and court costs to the City; and
d. Any changes or alterations in the work or public improvements required hereunder, not exceeding 10 percent of their original estimated cost, shall not relieve any liability of the security given for the faithful performance of this Agreement.

In the event any changes or alterations of the work or public improvements required hereunder exceed 10 percent of their original estimated cost, the Subdivider shall provide such additional security for its faithful performance as determined by the Assistant City Manager/ Director of Public Works or his designee and approved by the City Attorney.

The City Council may, at its sole discretion, reduce the amount of any security device as recommended by the Assistant City Manager/ Director of Public Works or his designee and the City Attorney for any portion of the public improvements installed by the Subdivider and accepted by the Assistant City Manager/ Director of Public Works or his designee.

1. 8 One Year Warranty and Warranty Bond. Without limiting the foregoing, Subdivider warrants and guarantees materials used and workmanship performed on said work and public improvements. In connection herewith, the Subdivider shall submit security, subject to the approval of the City Attorney, for a period of one ( 1) year following the completion and acceptance of the work hereunder in the sum equal to 10 percent of their actual construction cost and reasonable attorney fees, expert fees and court costs. The Subdivider further agrees to pay the City for all costs to maintain the landscaping in a vigorous and thriving condition, to maintain the street lights and to pay for all energy costs for a period of one ( 1) year after completion and acceptance thereof by the Assistant City Manager/ Director of Public Works or his designee and the City Council. Maintenance and energy costs shall be based on the amounts specified in the most recent publication of the Annual Engineer' s Report for the Levy of Assessments for the Landscaping and Lighting Districts.

1. 9 Payment of Labor and Materials. The Subdivider and its contractors shall pay for any materials, provision, provender and other supplies or equipment used in, upon, for, or about the performance of the work contracted to be done, and for any work or labor thereon of any kind, and for a payment bond with respect to such work or labor, as required by Agreement Masters\ Subdivision Improvement Agreement( Preserve)\ REV 13- 1121\ MB

Civil Code Section 3247.

Article 2. Procedural Requirements

2. 1 Preparation of Improvements Plans. No work pursuant to this Agreement shall be commenced until the Subdivider' s plans, profiles and specifications for the public improvements have been submitted to and approved by the Assistant City Manager/ Director of Public Works or his designee. The Subdivider warrants that its plans, profiles and specifications conform as a minimum to the City's ordinances and standard specifications, and that they are adequate to construct and install the public improvements in a good, workmanlike manner and in accordance with sound construction practice for public works.

2. 2 Cost of Checking Plans. The Subdivider shall pay to the City the cost of checking and approving the plans, profiles and specifications. The Subdivider shall pay to the City the fees for the cost of checking said plans upon submittal of said plans to the City. If said fees prove to be insufficient to complete said plan checking, the Subdivider shall make additional deposits as required by the Assistant City Manager/ Director of Public Works or his designee. Failure to make any required payment or deposit shall cause such plan checking to be suspended and be grounds to withhold the issuance of building permits for any construction in the subdivision defined by Map.

2. 3 Soils Report. The Subdivider shall cause to be made and pay for soil tests made by a reputable soils testing laboratory to determine gradation, bearing and resistance value of soils within the subdivision. The Subdivider shall also cause to be made and pay for all compaction tests necessary to determine that all soils, including the utility trenches, have been satisfactorily backfilled.

2. 4 Permits and Fees. The Subdivider shall, at the Subdivider' s expense, obtain all necessary permits and licenses for the construction and installation of the work and public improvements required hereunder and pay all required fees and taxes and give all necessary notices.

2. 5 Superintendence by the Subdivider. The Subdivider shall provide continuous superintendence to the construction and installation of the public improvements by assigning a competent foreman or superintendent, satisfactory to the Assistant City Manager/ Director of Public Works or his designee, to the work site, who shall have full authority to act for the Subdivider

2. 6 Duty to Facilitate Inspections. The Subdivider shall at all times maintain proper facilities and provide safe access for inspection by the Assistant City Manager/ Director of Public Works or his designee, to all parts of the work, and to the shops wherein the work is in preparation.

Article 3. The Subdivider' s Liabilities

3. 1 Liability of the Subdivider. The Subdivider agrees that the use for any purpose and by any person of any or all of the work and public improvements required by this Agreement shall be at the sole and exclusive risk of the Subdivider at all times prior to final acceptance by the City of the completed public improvements thereon and therein; provided that Agreement Masters\ Subdivision Improvement Agreement( Preserve)\ REV 13- 1121\ MB

acceptance by the City shall not eliminate, lessen or relieve the Subdivider of any obligations or undertakings contained in this Agreement. The issuance of any occupancy permits by the City for any structures located within said subdivision shall not be construed to constitute an acceptance or approval of any of the public improvements required hereunder.

3. 2 Liability for Nonperformance. Neither the City nor any of its officers or agents shall be liable to the Subdivider or its contractors for any error or omission arising out of, or in connection with, any work to be performed under this Agreement or the plans, profiles or specifications therefore approved by the Assistant City Manager/ Director of Public Works or his designee.

3. 3 Development Impact Fees. Development Impact Fees shall be paid pursuant to and in accordance with Chino Municipal Code Chapter 3. 40 and Chapter 3. 45.

3. 4 Utility Deposits. Prior to commencement of any work required by this Agreement, the Subdivider shall file with the Assistant City Manager/ Director of Public Works or his designee a statement signed by the Subdivider and each public utility to the effect that the Subdivider has made all deposits legally required by such public utility for the connection of any and all public utilities required to be supplied by such public utility within the subdivision.

3. 5 Liability for Personal Injuries. The City shall not be liable to the Subdivider or to any other person, firm, or corporation whatsoever, for any injury or damage that may result to any person or property by or from any cause whatsoever, in, on or about the subdivision of the Property or connected to the construction and installation of the work and public improvements required hereunder.

3. 6 Release and Indemnification. The Subdivider hereby releases and agrees to indemnify and save the City harmless from and against any and all injuries to and deaths of persons and injuries to property, and all claims, demands, costs, loss, damage and liability, howsoever the same may be caused, and whensoever the same may appear, resulting directly or indirectly from the performance or nonperformance of any work or public improvement to the Property and upon premises adjacent thereto pursuant to this Agreement, and also from any and all injuries to, and deaths of persons, and injuries to property or other interests, and all claims, demands, costs loss, damage, and liability, howsoever same may be caused and whensoever the same may appear, either directly or indirectly made or suffered by the Subdivider, Subdivider' s agents, employees, and subcontractors, while engaged in the performance of said work or public improvements. Prior to the commencement of any work or public improvement required hereunder, the Subdivider shall furnish to the City satisfactory evidence of an insurance policy, written upon a form and by a company which meets with the approval of the City, insuring the City, its officers, agents, and employees against loss or liability which may arise during the work, or which may result from any of the work herein required to be done, including all costs of defending any claim arising as a result thereof. Minimum liability and property damage insurance shall be not less than $ 500, 000. 00 for all damages arising out of bodily injury to or death of one person and not less than $ 1,000,000.00 for all damages arising out of bodily injuries to or death of more than one person in any one occurrence; and not less that $ 250, 000. 00 for all damages and/ or destruction of property in any one occurrence and not less than $ 500,000. 00 for all damages and/or destruction of property during the policy period.

Said policy shall be maintained in full force and effect during the life of this Agreement. Said policy shall state, by its terms and by an endorsement, that said policy shall not be canceled until Agreement Masters\ Subdivision Improvement Agreement( Preserve)\ REV 13- 1121\ MB

the City shall have had at least ninety ( 90) days prior notice in writing of such cancellation.

Article 4. Inspection of Improvements

4. 1 Inspection by Assistant City Manager/ Director of Public Works. All public improvements shall be constructed under the inspection of, and subject to approval, of the Assistant City Manager/ Director of Public Works or his designee. The cost of inspections shall be paid by the Subdivider, who shall submit a sufficient deposit prior to the issuance of building permits. If said deposit proves to be insufficient to complete said inspection, the Subdivider shall make additional deposits as determined by the Assistant City Manager/ Director of Public Works or his designee. Failure to make any required deposit shall cause such plan inspections to be suspended and be grounds to revoke all the building permits for any construction in the subdivision, or to refuse to issue an occupancy permit for any facilities constructed on any lot within said subdivision.

4. 2 Approval by Assistant City Manager/ Director of Public Works. It is mutually agreed that the Assistant City Manager/ Director of Public Works or his designee shall have the authority to reject any or all of the work or public improvements required hereunder if same fails to conform to the approved plans, profiles or specifications for said public improvements or if same are not constructed or installed in a good and workmanlike manner to the satisfaction of the Assistant City Manager/ Director of Public Works or his designee.

Furthermore, any damage to existing facilities, including any curbs, drainage facilities, gutters, landscaping, sewer and water mains, street or utilities, that occurs after installation, shall be repaired to the satisfaction of the Assistant City Manager/ Director of Public Works or his designee by the Subdivider prior to the issuance of an occupancy permit for any structure within the subdivision and prior to the release of any security provided hereunder. 4, 3 Responsibility Despite Inspections. Notwithstanding the fact that the Subdivider' s plans, profiles and specifications, and construction and installation of the public improvements, and other acts are subject to the approval of the Assistant City Manager/ Director of Public Works or his designee, it is understood and agreed that any approval by the Assistant City Manager/ Director of Public Works or his designee shall not relieve the Subdivider of the obligation to satisfactorily perform the obligations hereunder. All construction shall be performed strictly in accordance with the approved plans, profiles and specifications, the City's latest standard specifications and the provisions of the Chino Municipal Code to the satisfaction of the Assistant City Manager/ Director of Public Works or his designee.

4. 4 Occupancy Permits. No occupancy permit for any structure on any lot within the subdivision shall be issued, and no utility connection shall be made, unless and until the Subdivider has complied with all the obligations hereunder to the satisfaction of the Assistant City Manager/ Director of Public Works or his designee.

4. 5 Notice of Completion. The Subdivider shall record a Notice of Completion for all the work and public improvements completed within ten ( 10) days after the City's acceptance of said improvements.

4. 6 Certification of Satisfactory Completion. Upon the satisfactory completion of the improvements by the Subdivider, the Assistant City Manager/ Director of Public Works or his designee, shall certify that the work of said improvements has been satisfactorily Agreement Masters\ Subdivision Improvement Agreement( Preserve)\ REV 13- 1121\ MB

completed.

4. 7 Filing of " Record" Drawings. Upon completion of the work or public improvements, the Subdivider shall submit one mylar ( 4 mils) set of " Record" drawings to the Assistant City Manager/ Director of Public Works or his designee. These drawings shall be certified as representing the actual construction and shall depict the work and public improvements as actually constructed, with all changes incorporated therein.

Article 5. Miscellaneous Provisions

5. 1 Relationship of Contractors. It is hereby mutually covenanted and agreed by the parties hereto that the Subdivider' s contractors are not agents of the City and that the contractors' relations to City, if any, are those of independent contractors.

5. 2 Entire Agreement. This writing constitutes the entire agreement of the Parties and supersedes any prior written or oral agreements between them with respect to the subject matter hereof and may not be modified or amended except as set forth herein.

5. 3 Attorney' s Fees. In the event that any action at law or in equity is brought to interpret or enforce any provision of this Agreement, the prevailing party shall be entitled to reasonable attorney' s fees and court costs.

5. 4 Assignment. This Agreement shall not be assignable by the Subdivider without written consent of the City.

5. 5 Successors. Subject to the restrictions against assignment contained herein, this Agreement shall inure to the benefit of and shall be binding upon each of the parties and their respective assigns, successors in interest, person representatives, estates, heirs and legatees.

5. 6 No Waiver. No waiver of any breach or default hereunder shall be considered valid unless in writing, and no such waiver shall be deemed a waiver of any subsequent breach or default of the same or similar nature.

5. 7 Choice of Law. This Agreement shall be governed by the laws of the State of California without regard to the principles of conflict of laws.

5. 8 Invalidity. If any provisions of this Agreement shall be declared invalid, void, or unenforceable by a court of competent jurisdiction of the State of California, the remaining provisions shall continue in full force and effect.

5. 9 Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together shall be deemed one original.

5. 10 Effective Date of Agreement. This Agreement shall not become effective unless and until the final map of said tract/ parcel shall have been approved by the City Council of the City of Chino.

Agreement Masters\ Subdivision Improvement Agreement( Preserve)\ REV 13- 11211MB

Agreement Masters\ Subdivision Improvement Agreement( Preserve) 1REV 13- 1121\ MB

Executed at Chino, California, on Ne> t, - rC3eZ, S i
Zot Z/ .

Approved as to Form: Approved as to Content:
7,-, 64.
4_, ///e> 4.- e
A4h• City Attorney
o6-
1A/ 1.°
d"a Afire
sistant City Manager
K. Hovnanian' s Sonata at the Preserve
By: 4tip-gi to- J - 14
Signature and Date)
Name: d;
re0
Please type print name)
Title: 1
P12.-
s. f''_ l
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CITY OF CHINO
I'
Ma e Bal : n , City Manager
Dated: it. C . III
ATTEST:

IP . # _ 0
Angel P obles, City Clerk
Dated: il. 5- 1li
Attachment: Exhibit 1
Agreement Masters\ Subdivision Improvement Agreement( Preserve)\ REV 13- 1121\ MB

SUBDIVISION IMPROVEMENT AGREEMENT
EXHIBIT 1
A. Removal of undesirable, dangerous and dead plant materials and roots.

B. All onsite and offsite grading as specified on the approved grading plan.

C. Relocation of all public utility structures as necessary to properly construct the required improvements.

D. Storm drain facilities as required and shown on the approved construction plans and in accordance with City Standards.

E. Sanitary sewers constructed as shown on the approved, engineered plans and in accordance with City Standards.

F. Water mains, valves, hydrants, services, meters and appurtenances to serve each lot as shown on the approved construction plans and in accordance with City Standards.

G. Underground installation of all electrical, telephone, cable television and any other energy or communication lines that abut or are within the project site.

H. A street lighting system (City-owned) in accordance with City Standards.

Disposal of all rocks and debris located within any public right-of-way within said development or on the boundary streets thereof.

J. Installation of concrete curbs, gutters, sidewalks, cross gutters, driveways and intersections as shown on approved construction plans and in accordance with City Standards.

K. Installation of asphalt concrete or Portland Cement Concrete street pavement on base material as shown on approved construction plans and in accordance with City Standards.

L. Street signs at intersections per the City Standards.

M. Installation of approved landscaping ( plants and materials).

N. Setting monuments as required by the State Code.

The Subdivider shall also perform all work and furnish all materials necessary, in the opinion of the Assistant City Manager/ Director of Public Works or his designee and on his order, to complete the improvements in accordance with the plans and specifications on file as hereinbefore specified, or any changes required or ordered by said Engineer which, in his opinion, are necessary or required to complete this work.

Agreement Masters\ Subdivision Improvement Agreement( Preserve) 1REV 13- 1121\ MB

CALIFORNIA ALL- PURPOSE ACKNOWLEDGMENT
CIVIL CODE § 1189
C mat{ c<< ln< <!:<<!< J< < < <!<!< JT<!:<!<!!< <!<!<! wT<! a<!:<!<! n<! s<_ z<.< f< i•.-- _ va< s< <_ State of California
County of
DCAryS........On I O. OC1 . before me, PIC SJO+ GI RI& C. , Date Here Insert Name and Title oft Officer
personally appeared 8ieuC.. Revel
Name( s) of Signer( s)
who proved to me on the basis of satisfactory
evidence to be the person( e) whose namefs) is/ ase-
subscribed to the within instrument and acknowledged
to me that he/ ohc/ tFiey executed the same in
his/ herAi: lei( authorized capacity( tes), and that by his/ Bair signature(. on the instrument the
A. C. GUTIERREZ persons) or the entity upon behalf of which the Commission# 2043843 person( stacted, executed the instrument.

Notary Public- California I
z Orange County I certify under PENALTY OF PERJURY under the laws M
r-" "
Comm. ues Oct 3201 of the State of California th. the foregoing paragraph is true and correct.

WITNESS my ha t• a
it
Place Notary Seal Above Signature:
igna e of Notary P blic

OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Desc ' ion of Attached Document
Title or Typ- • Document: Document Date:

Number of Pages: Signer( s) Other Than Named Above:

Capacity( ies) Claimed by Sig - s)
Signer' s Name: Signer' s Name:

Corporate Officer— Title( s): Corporate Officer— Title( s):

Partner— Limited General Partner— Limited General Individual Attorney in Fact ividual Attorney in Fact
Trustee Guardian or Conservator Trus - - Guardian or Conservator Other: Other:

Signer Is Representing: Signer Is Representing:

L4''., S`:.':.:..:.:.:\ ism:: 5::.' y:`.::': L:: 4':'. :'. y.' y . . v . vr: ri.' , s, 2013 National Notary Association • www. NationalNotary.org • 1- 800- US NOTARY( 1- 800- 876- 6827) Item 907 422
P i
Executed in Triplicate
Bond No.: K08619918
Contract No.: 040/ 3-/ 6 7
Approved: / 0f/ 2o/•f 4y7
Premium: $ 16, 017. 00/ year

FAITHFUL PERFORMANCE BOND
WHEREAS, the City Council of the City of Chino, State of California, hereinafter designated as "CITY" and K. Hovnanian's Sonataatthe Preservehereinafterdesignatedas" PRINCIPAL," haveenteredintoanagreementwhereby Principal agrees to install and complete certain designated public improvements, which said agreement, dated October 9, 2014, and identified as Project No. Tract Map No. 18778, is hereby referred to and made a part hereof; and WHEREAS, said Principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and Westchester Fire Insurance Company, as surety, are held and firmly bound unto the City of Chino in the penal sum of One Million Six Hundred One Thousand Seven Hundred Dollars and 0/ 100 1,601,700.00) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors, and administrators, jointly and severally, firmly by these presents.

The condition of this obligation is such that if the above- bound Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, and provisions in said agreement and any alteration thereof made as therein provided, on his or its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless City, its officers, agents, and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees including reasonable attorneys' fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

The surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the agreement or to the work or to the specifications.

IN WITNESS WHEREOF, this instrument has been duly executed by Principal and Surety above named, on October

9. 2014.

K. Hovnanian' s Sonata at the Prese - Westchester Fire Insurance Company

PRINCIPAL
40 SURETY
ANABy: By: ( 6- 4- 6-
TalL7
Christine Marotta, Attorney- in-Fact

SIGNATURES MUST BE NOTARIZED
Approved as to Form:

Asst.CityAttorneyiol1gi
Document No. 16353( PWFORMS\ BONDS- faithful performance\ rev. 05/ 2012) Page 1 of 1 423

ACKNOWLEDGMENT OF SURETY

STATE OF ILLINOIS

COUNTY OF COOK
OCT. 00 2014
On beforeme, a NotaryPublicin and for the abovecounty, personally appearedChristine Marotta to me personally known, who, being by me duly sworn, did statethat he/sheis Attorney-in-Factof WestchesterFireInsuranceCompany, acorporationorganizedandexistingunder thelawsof theStateof Peimsylvaniathatthesealaffixedto theforegoinginstrumentis thecorporateseal of the said corporation, that the instrument was signed, sealed, and executed in behalf of said corporation by authority of its Board of Directors, and further acknowledged the said instrument and the execution thereofto bethevoluntaryactanddeedof saidcorporationby hervoluntarilyexecuted.

IN WITNESSWHEREOF, I havehereuntosubscribedby nameandaffixedmy official sealthedayand year first above written.

NICOICOLEE K
SEAL
KUBENA I( A.

NOTARY PUBLIC, STATE OF ILLINOIS Notary Public
MY COMMISSION EXPIRES 07/ 15/ 2016
SEAL) COOK County, ILLINOIS
424
r...... rta. su:
1 Power of WESTCHESTER FIRE INSURANCE COMPANY
4 Attorney
Know all M:.en by these presents:: That WESTCHESTER FIRE INSURANCE COMPANY a corporation of the Commonwealth of Pennsylvania pursuant to the I following Resolution, adoptedby the Board of Directors of the said Company on December 11,:2006, to wit:

RESOLVED,thatthefollowingauthorizationsrelateto theexecution,forandonbehalfof theCompany,of bonds,undertakings,recognizances,contractsandother'wrmencommitmentsof theCompany entered into the ordinary course of business( each a" Written Commitment"):

I) Eachof theChaimsan,thePresidpnandtheVicePresidentsof theCompanyisherebyauthorizedto executeanyWrittenCommitmentfor andonbehalfof theCompany,underthesealof theCompanyor otherwise
2) Eachdulyappointedattorney-itt•factoftheCompanyisherebyauthorizedtoexecuteanyWrittenCommitmentforandonbehalfoftheCompany,underthesealoftheCompanyorotherwise,totheextentthat suchactionisauthorizedby.thegrantof powersprovidedfor in sudi::personswritten.appointmentassuchattorney-in fact I ( 3) Eachof theChairman,thePresidentandtheVicePresidentsof theCompanyisherebyauthorized,forandonbehalfof theCompany,to appointin writinganypersontheattomeyin-factof theCompanywith fullpowerandauthoritytoexecute,forandonbehalfoftheCompany,underthesearofthe;Companyorotherwise,suchWrittenCommitmentsoftheCompanyasmaybespecifiedinsuchwritten 1 appomtntent,whichspecificationmaybeby generaltypeor classof written Commitmentsor byspecificationof oneor moreparticularWnttenCommitments 1 (
4) Eachof theChairman,thePresidentandVice•Presrdeats:of* Companyin herebyarithorized,for andonbehalfof theCompany,todelegatein writinganyotherofficerof theCompanydieauthorityto execute,for andonbehalfof theCompany,undertheCompany'ssealorotherwise,suchWrittenCommitmentsof theCompanyasarespecifiedin suchwrittendelegation,whichspecificationmaybeby general type or class of Written Commitments or by specification of one or more particular Written commitments. i. gn Y P 8 any appointmentot'deleationpursuanttothisResolution,andthesealorate Company,I ( 5) The sr attire of an officer et ason exectrtln an Written Camimtntem of a g p panty,may be affixed by facsimile on such IWritten Commitmentor writtenappoantrtentordelegation.

FURTHER RESOLVED, that the foregoing Resolution shall not bedeemed to be anexclusive statement of the powers and authority of officers, employees and other persons to act for and on behalf of the Company,andsuchResolutionshallnotlimit orotherwiseaffeettheexerciseof artysuchpowerorauthorityotherwisevalidlygrantedor vested.

Does hereby nominate,constitute.and appoint Christine Marotta, Debra Kohlman, all of the City of CHICAGO, Illinois, each individually if there be more thanone named,itstrueandlawfulattorney-in-fact,tomake,execute,sealanddeliveronitsbehalf,andasitsactanddeedanyandall bonds,undertakings,recognizances, contracts and other writings in thenature thereof in penaltiesnot exceedingTwenty.Efvemillion dollars& zero cents($ 25,000;000.00)and the execution of such I writingsinpursuanceof thesepresentsshallbeasbindinguponsaidCompany,asfully andamplyasif theyhadbeendulyexecutedandacknowledgedbytheregularly elected officers of the Company at its principal office, IN.WITNESS WHEREOF, the said StephenM. Haney, Vice-President,hashereuntosubscribedhis nameandaffixed the Corporate sealof the said WESTCHESTER FIRE INSURANCE COMPANY this 23 day of December2013.

WESTCHESTER FIRE INSURANCE COMPANY

COMMONWEALTH OF PENNSYLVANIA
COUNTY OF PHILADELPHIA ss.

Onthis 23dayof December,AD;2013beforeme,aNotaryPublicof theCommonwealthof Pennsylvaniainandfor theCountyof Philadelphiacame I StephenM. Haney, Vice-Presidentof the WESTCHESTER FIRE INSURANCE COMPANY to me personally known to be the individual and officer who executed theprecedinginstrument,andheacknowledgedthatheexecutedthesame,andthatthesealaffixedto theprecedinginstrumentisthecorporatesealof saidCompany; I thatthesaidcorporatepealandpussignaturewereduly.:affrxed:bytheauthorityanddirectionof thesaidcorporation;andthatResolution,adoptedby theBoardof Directorsof saidCompany,referredtointheprecedinginstrument,isnowinforce, IN TESTIMONYWHEREOF,l havehereuntosetmy handandaffixedmyofficial sealattheCity of Philadelphiathedayandyearfirstabovewritten. 4 oaatwa uuxrair, e# p xw
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ef
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o• I I, theundersignedAssistantSecretaryoftheWESTCHESTERFIRE INSURANCECOMPANY,doherebycertifythattheoriginalPOWEROFATTORNEY,of which the foregoing is a substantially true and correct copy, is in fu11 force and effect. a o In witness whereof, I have hereunto subscribed my name as Assistant Secretary, and affixed the corporate: seal of the Corporation, this day of a
LL
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THIS POWER OF ATTORNEY MAY NOT BE USED TO EXECUTE ANY BOND. WITH AN INCEPTION DATE AFTER December 23, 2015. 8 d
o
THE BACK OF THIS DOCUMENT LISTS VARIOUS SECURITY FEATURES • THAT WILL PROTECT AGAINST COPY COUNTERFEIT AND ALTERATION. II 425

CALIFORNIA ALL- PURPOSE ACKNOWLEDGMENT
CIVIL CODE § 1189
C¢!¢ ¢ ¢¢ C ¢¢ ¢. a¢!¢¢¢ ¢ ¢ Cam¢ ¢¢¢¢¢• ¢ c< v:¢{:¢:¢¢ ¢¢ ¢¢..¢ ¢ ¢¢¢ ¢/-'<_ a¢ ¢¢¢..

State of California
County of C rL
On ( 0 l • ; before me, Y i o fr rt C ,
Date Here Insert Name and Title of thfficer
personally appeared Skye. katoei
Name( s) of Signer( s)
who proved to me on the basis of satisfactory
evidence to be the person(ej- whose name(s) is/arc
subscribed to the within instrument and acknowledged
to me that he/slie/ they- executed the same in
his/ lhherAlleir authorized capacity( ies}; and that by A. C. GUTER Et his/ ber, 4thei signaturo( 3) on the instrument the rgiamadhamedmaidi
Commission is 2043843 person( s), or the entity upon behalf of which the YNotary Public- California persons} acted, executed the instrument.

OrangeCounty
Comm. E Oct I certify under PENALTY OF PERJURY under the laws of the Stateof Californiathat the foregoingparagraph
is true and correct.

WITNESS my h.-- an.& iffici.

Place Notary Seal Above Signature:
w a eu 0--"--, 41 Public

OPTIONAL
Thoughthissectionis optional, completingthisinformationcandeteralterationof thedocumentor fraudulent reattachment of this form to an unintended document.

Description of Attached Document
Title or Type of Document: Document Date:
er of Pages: Signer( s) Other Than Named Above:

Capacity( ies) . 1ed by Signer( s)
Signer' s Name: Signer' s Name:

Corporate Officer— Title( s): Corporate Officer— Title( s):

Partner— Limited General Partner— Limited General Individual Attorney in Fact dividual Attorney in Fact
Trustee Guardian or Conservator Trus -_ Guardian or Conservator Other: Other:

Signer Is Representing: Signer Is Representing:

L: S`.:,:::.:..:'.:: 4::: 5:' y,:%. G:': L S:':.` L: ti4:. 5' tiL: S S.:'. d' yeti.!:' 2013 National Notary Association • www. NationalNotary.org • 1- 800- US NOTARY( 1- 800- 876- 6827) Item# 5907 426
Executed in Triplicate
Bond No.: K08619918
Contract No.: Zc/, /, 7
Approved: / 1/' f/ Zola/ ft
Premium: Included w/ Perf. Bond

LABOR AND MATERIAL BOND
WHEREAS, the City Council of the City of Chino, State of California, hereinafter designated as " CITY" and K.

Hovnanian' s Sonata at the Preserve, hereinafter designated as " PRINCIPAL," have entered into an agreement whereby Principal agrees to install and complete certain designated public improvements, which said agreement, dated October 9, 2014, and identified as Project No. Tract Map No. 18778, is hereby referred to and made a part hereof; and WHEREAS, under the terms of said agreement, Principal is required, before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Chino to secure the claims to which reference is made in Title 15 ( commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California.

NOW, THEREFORE, said Principal and the undersigned, as corporate surety, are held and firmly bound unto the City of Chino, and all contractors, subcontractors, laborers, materialmen, and other persons employed in the performance of the aforesaid agreement and referred to in the aforesaid Code of Civil Procedure in the sum of Eight Hundred Thousand Eight Hundred Fifty and 00/ 100 dollars ($ 800, 850. 00) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys' fees, incurred by City in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 15( commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition.

IN WITNESS WHEREOF, this instrument has been duly executed by Principal and Surety above named, on October

9. 2014.

K. Hovnanian' s Sonata at The Preserv- Westchester Fire Insurance Company PRINCIPi4
SURETY
By: 1 By: C.,1L--67 --
Christine Maro , Attorney- in- Fact

SIGNATURE( S) MUST BE NOTARIZED
Approved as to Form:
j.. City Attorney 1017-4
Document No. 16354( PWFORMS\ BONDS- L& M\ rev. 05/ 2012) Page 1 of 1 427

ACKNOWLEDGMENT OF SURETY

STATE OF ILLINOIS

COUNTY OF COOK
OCT0 9 2014
On
beforeme, a Notary Publicin andfor the abovecounty, personally appearedChristineMarottato mepersonallyknown, who,beingby meduly sworn, didstatethathe/sheis Attorney-in-Factof WestchesterFireInsuranceCompany, acorporationorganizedandexistingunder thelawsof theStateof Pennsylvaniathatthesealaffixedto theforegoinginstrumentis thecorporateseal of the said corporation, that the' instrument was signed, sealed, and executedin behalf of said corporation by authority of its Board of Directors, and further acknowledged the said instrument and the execution thereofto bethevoluntaryactanddeedof saidcorporationby hervoluntarilyexecuted.

IN WITNESSWHEREOF, I havehereuntosubscribedbynameandaffixedmyofficialsealthedayand year first above written.

OFFICIAL SEAL

NICO LE K UBENA
IL '
u it '
NOTARY PUBLIC, STATE OF ILLINOIS Notary Public
MY COMMISSION EXPIRES 07/ 15/ 2016
SEAL) COOK County, ILLINOIS
428
Power off WESTCHESTER FIRE INSURANCE COMPANY
Attorney
Know all menby these:presents:ThatWESTCHESTERFIREINSURANCECOMPANY,:acorporationof theCommonwealthof Pennsylvaniapursuantto the followingResolution;•adoptedby theBoardof Directorsof thesaidCompanyonDecember11,1.2000'towit:

RESOLVED,thatthefollowingauthoniauons-relatetotheexecution,for andonbehalfof theCompany,of bonds,pndertakiogs,recognizances,contractsandother:writtencommtmenl of theCompany 1 entered into the ordinary Cosirseof business( each a" Written Commtment') I) Eachof theChairman,thePresidentandtheVicePresidentsof theCompanyisherebyauthorizedtoexecuteanyWnttenCommitmentfor andonbehalf.of dieCompeir,underthesealof theCompanyor otherwise.
2) Eachdulyappointedattorneyin-factof theCompanyisherebyauthorizedtoexecuteanyWrittenCommitmentfor andonbehalfof theCompany,underthesealof theCompanyorotherwise,to theextentthat Suchactionis authorizedby_llie grantof powersprovidedforirrsuch;personswrittenr.appointmentassuchattorney-in-fact. 3) Eachof theChal[mart,thePresidentandtheVicePresidentsoftheCompanyis herebyauthorized,forandonbehalfof theCompany,to appointin writingartypersontheattorney-in-factof theCompanywith full:powerandauthorityto execute,for andonbehalfof.theCompanyunderthesealof theCompanyor otherwise,suchWrittenConurdtmentsof theCompanyasmayhespecifiedin suchwritten Iapptiustment, which specifcation maybe by general type or class of Written Comin(tmenis o by specification of one or more particular Written Commiimems 4) Each of the Chai' iman, the Preidem and Vice Presidents-Of the Company in hereby authorized, for and on behalf of the Company, to delegate in writing any other officer of the Company the authority to execute; for and on behalf of the,Company, under the Company' s seal or otherwise, such Written Commitments of the Company as are specified in such written delegation, which specification may beby general type or,else; of Written Commitments or by specification of oneor more particular Written Commitments.

I ($) Thesignatureof anyoR:cerorotherpersonexecutinganyWfitteaCommitmentor appontmentor delegationpursuanttothisResolution,andtheanaloftheCompany,maybeaffixedby facsimileonsuch Written Commitriteu or written appointment o:.delegation FURTHERRESOLVED,thattheforegoingResolutionshallnotbedeernedtobeanexclusivestatameisof thepowersandauthorityof ofitcers,employeesandotherpersonstrl actfor andonbehalfof the Company,andsuchResolutionshallnot.limn orotherwiseaffecttheexercieeof am.suchpower.orauthorityotherwisevalidlygrantedor vested.

Does herebynominate, constitute andappoint Christine Marotta,Debra Kohlman, all of the City of CHICAGO, Illinois, each individually if there be more than one named,its true and lawful attorney-in-fact, to make, execute,sealand deliver on its behalf, and as its act and deedany and all bonds,undertakings, recognizances, contractsand:otherwritingsinthenaturethereofinpenaltiesnotexceedingTwentyFivemilliondollars&zerocents($25,000,00000):andtheexecutionof such writingsin pursuanceofthesepresentsshall.beasbindinguponsaidCompany,asdilly andamplyasif theyhadbeendulyexecutedand.acknowledgedbytheregularly electedofficers of the Company at Its principal office, 1 :. IN WITNESS WHEREOF, the SaidStephenM. Haney, Vice-president,hashereunto;subscribedhis nameand affixed the Corporate sealof the said WESTCHESTER I FIRE INSURANCE COMPANY this 23 day of December2013.

WESTCHESTER FIRE INSURANCE COMPANY
sow 1M,Itingi, Pier.Prosielent

COMMONWEALTH OF PENNSYLVANIA
1 COUNTY OF PHILADELPHIA ss.

Onthis23dayof December,AI), 2013beforeme,aNotaryPublicof theCommonwealthof Pennsylvaniain andfor theCountyof Philadelphiacame StephenM. Haney, Vice-Presidentof the.W ESTCHESTER FIRE INSURANCE COMPANY to me personally known to be the individual and officer who executed theprecedinginstrument,andhe,acknowledgedthatheexecutedthesame,andthatthesealaffixedto theprecedinginstrumentisthecorporatesealofsaidCompany; thatthesaidcorporatesealandhissignatureweredulyaffixedbytheauthorityanddirectionofthesaidcorporation;andthatResolution,adoptedbytheBoardof Directorsof saidCompany,referredto in theprecedinginstrument,Isnowin force.

IN TESTIMONYWHEREOF,f havehereuntosetmyhandandaffixedmyOfficialsealattheCityof Philadelphiathedayandyearfirstabovewritten. or,{„
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W I, theundersignedAssistantSecretaryof theWESTCHESTER.:FIRE INSURANCECOMPANY,doherebycertifythattheoriginalPOWEROF ATTORNEY,of o _ which the foregoing is a substantially true and correct copy, is in full force and effect.

V 01
In witness whereof I have hereunto. subscribed my name as Assistant Secretary, and affixed the corporate. seal of the Corporation, this day of F p
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THIS POWER OF ATTORNEY MA. Y NOT BE USED TO EXECUTE ANY BOND' WITH AN INCEPTION DATE AFTER. December23, 201.5. 8 zz
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THE BACK OF THIS DOCUMENT LISTS VARIOUS SECURITY FEATURES • THAT WILL PROTECT AGAINST COPY COUNTERFEIT AND ALTERATION. III 429

CALIFORNIA ALL- PURPOSE ACKNOWLEDGMENT
CIVIL CODE§ 1189
ec! a. c c% e a! TC! am74. t e .!.! vK<- a ! ee.!: c! c<! .! t! n.. e!- Ac! .....! - ss.,,,, - e! Tc! ze! ,<! T, r e... t.,, .! rz ..

State of California
County of Or Sint f
ill
On ( 0` Q 7f . . t ` before me, O.a Q1 korr I` i" VTci W 4C/ Date Her I sert Name and Title of the Offi er
personally appeared c
Name( s) of Signer( s)
who proved to me on the basis of satisfactory
evidence to be the person( s) whose name* is/ are-
subscribed to the within instrument and acknowledged
to me that he/ s140,414ey executed the same in
his/ herfthei' authorized capacity(+ es*, and that by
A. C. GUTIERREZ his/ herkhsir— signature( e. on the instrument the

0...-
4,10
Commission# 2043843 person( s or the entity upon behalf of which the z '
1 Notary Public- California i person( s)^ acted, executed the instrument.

Orange County t
I certify under PENALTY OF PERJURY under the lawsM Comm. Ex fires Oct 3, 2017 of the State of California that the • regoing paragraph is true and correct.
ak
WITNESS my
hit-.:'+,'
ffi, .
1-.4.

Place Notary Seal Above Signature. V`-.
ur- : & otary Public

OPTIONAL
Thoughthissectionis optional, completingthisinformationcandeteralterationof thedocumentor fraudulent reattachment of this form to an unintended document.

D- i• tion of Attached Document
Title or Type o _ • ent: Document Date:

Number of Pages: Sign- ' other Than Named Above:

Capacity( ies) Claimed by Signer(s)
Signer' s Name: Signer • e:

Corporate Officer— Title( s): Corporate O' i _ — Title( s):

Partner— Limited General Partner— Limite• 51 General Individual Attorney in Fact Individual Attorney act
Trustee Guardian or Conservator Trustee Guardian or •• ervator Other: Other:

Signer Is Representing: Signer Is Representing:

L4 4S 4S-! 4S 4` 4` 4vis,, ,; 4\ 4,.:\,: " 4\ 4 4'. v4S,,, 4( 4vt!: : .: .: : :': : w4S, 4%." y:
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2013 National Notary Association • www. NationalNotary.org • 1- 800- US NOTARY( 1- 800- 876- 6827) Item # 5907 430
Executed in Triplicate
Bond No.: K08619876
Contract No.: Zo/ S- / 67
Approved: N/.// ii',/ ??
Premium: $ 1, 602. 00/ year

WARRANTY BOND
WHEREAS, the City Council of the City of Chino, State of California, hereinafter designated as " CITY" and K. Hovnanian' s Sonata at the Preserve, hereinafter designated as " PRINCIPAL," have entered into an agreement whereby Principal has agreed to warrant and guarantee the installation, completion, and maintenance of certain designated public improvements, which said agreement, dated October 9, 2014, and identified as Project No. Tract Map No. 18778, is hereby referred to and made a part hereof; and WHEREAS, said Principal is required under the terms of said agreement to furnish a bond for the warranty of said improvements.

NOW, THEREFORE, we, the Principal, and Westchester Fire Insurance Company, as surety, are held and firmly bound unto the City of Chino in the penal sum of One Hundred Sixty Thousand One Hundred Seventy Dollars and 00/ 100 ($ 160,170.00) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors, and administrators, jointly and severally, firmly by these presents.

The condition of this obligation is such that if the above bound Principal, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, and provisions in said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed thereof made as therein provided, on his or its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless City, its officers, agents, and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a part of the obligation secured hereby, and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees including reasonable attorneys' fees, incurred by the City in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

The surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the agreement or to the work or to the specifications.

IN WITNESS WHEREOF, this instrument has been duly executed by Principal and Surety above named, on October 9, 2014.

K Hovnanian' s Sonata at the P - erve Westchester Fire Insurance Company PRIN
IPA '
SURETY
By: 0 By: Cilt.L. Z. T'
Christine Marotta, Attorney- in-Fact

SIGNATURE( S) MUST BE NOTARIZED
Approved as to Form:

A. s;;
CityAttorneytoiaq 1
Document No. 19808( PWFORMS\ BONDS- Warranty\ rev. 05/ 2012) Page 1 of 1 431

ACKNOWLEDGMENT OF SURETY

STATE OF ILLINOIS

COUNTY OF COOK
OCT00 2014
On beforeme, a NotaryPublic in andfor the abovecounty, personally appearedChristineMarottato mepersonallyknown, who,beingby meduly sworn, did statethathe/sheis Attorney-in-Factof WestchesterFireInsuranceCompany, acorporationorganizedandexistingunder thelawsof theStateof Pennsylvaniathatthesealaffixedto theforegoinginstrumentis thecorporateseal of the said corporation, that the' instrument was signed, sealed, and executed in behalf of said corporation by authority of its Board of Directors, and further acknowledged the said instrument and the execution thereofto be the voluntary act anddeedof said corporation by her voluntarily executed.

IN WITNESSWHEREOF, I havehereuntosubscribedby nameandaffixedmy official sealthedayand year first above written.

OFFICIAL SEAL
l u
lL
NICOLE KUSENA a r' lAa
NOTARY PUBLIC, STATE OF ILLINOIS Notary Public
MY COMMISSION EXPIRES 07/ 15/ 2016
SEAL) COOK County, ILLINOIS
432

CALIFORNIA ALL- PURPOSE ACKNOWLEDGMENT
CIVIL CODE§ 1189
Ct t t C C t C t C.. t C Cwt C C C C C t C%aC ts• t C C! Tt C t t C/ sCC_. Y: C t C t J,-'_ cC_. C C tom•_ State of California
County of )
fcinGS/
On I t7 • t S . 0 I q before me, AC Qi. t-[-- te y- e- 6 lu r k..,+ Rtmi c , Date Here Insert Name and Title of the Officer
personally appeared kct
Name( s) of Signer( s)
who proved to me on the basis of satisfactory
evidence to be the person( s)- whose name( s)- is/ axe, subscribed to the within instrument and acknowledged
to me that he/ s#e/ they executed the same in
A. C. GUTIERREZ his/ her/ hoir authorized capacity( ies3, and that by1110.V., Commission et 2043843 his/ weir signatures) on the instrument the Notary Public- California person( s), or the entity upon behalf of which theOrange County person( s)- acted, executed the instrument.Comm.

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 aancofficial seal.

Place Notary Seal Above Signature. ' _!.',(!
ignatur- : & ot- Public

OPTIONAL
Th. gh this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Description o ached Document
Title or Type of Doc.• ent: Document Date:

Number of Pages: Signer( s) Other Than Named Above:

Capacity( ies) Claimed by Signe
Signer' s Name: Signer' s Name:

Corporate Officer— Title( s): Corporate Officer— Title( s):

Partner— Limited General Partner— Limited General Individual Attorney in Fact NI Individual Attorney in Fact Trustee Guardian or Conservator tee Guardian or Conservator Other: Othe .

Signer Is Representing: Signer Is Represents ••
L'.<\ PLC, 4:! 4' 4< 4 4,< 4< 4< 4. 4<<' a. i i 4 4 4`:. ivi 4:,<`. 4<' ari.<
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2013 National Notary Association • www. NationalNotary.org • 1- 800- US NOTARY( 1- 800- 876- 6827 Item# 5907 433
Power of WESTCHESTER FIRE INSURANCE COMPANY
Attorney
Knowall menby thesepresents:ThatWESTCHESTERFiRE INSURANCECOMPANY,:acorporationof theCommonwealthofPennsylyenta.pursuantto the followingResolution,adoptedby theBoardof DirectorsOfthesaidCompanyonDecember11,2006,towit:

RESOLVED,thatthefollowingauthorisationsrelatetotheexecution,for andonbehalfof theCompany,of bends,undertakings,recognizances,contractsandother-writtencommitmentsof theCompany enteredintothe;ordinitrycourse:of business(eacha' Written:Commitment"):
7);. Eachof theClieimum,thePresidentandtheVicePresidentsof theCompanyisherebyauthorizedtoexecuteany'WrittenCommitmentforandonbehalfof theCompany,underthesealof theCompanyor otherwise.
2) Eachdoly appointedattorneyia-factof theCompanyisherebyauthorizedtoexecuteanyWrittenCommitmentfor andonbehalfofthe Company,underthesealof theCompanyorotherwiseto theextentthat such action is authorized by the grant of powers provided form such persons written appointment as such attorney- in- fact( 3) Each oldie Chairman, the President and the Vice Presidentsof the Company is hereby authorized, for and on behalf of the Company, to appoint in writing any person the attorney- in- fact of the Company with full.powerantiauthorityio execute,for andonbehalfof theCompany,undertheseat:of the',Companyorotherwise,suchWrittenCommitmentsof theCompanyasmaybespecifiedin suchwritten appointment,.wshichspecificationmaybebygenaraltypeor classof Writtencommitmentsor byspecificationof oneor moreparticularWrittenCommitments, 4). Eachof riteChairman,thePresidentandVicePresidents:of theCompanyinhereby'authorized,forandonbehalfof theCompany,todelegatein writinganyotherofficerof theCompanytheauthorityto execute, for and on behalf of the Company, under the Company' s seal or otherwise, such Written Commitments of the Company as u n specified in such written delegation, which specification may be by general type or closaof Written Commitments or by specification of one or more particular Written Commitments, 3) Thesignatureof anyofficerorotherpersotrexecutiuganyWrittenCommitmentorappointmentordelegationpursuantto thisResolution,andthesealof theCompany;maybeaffixedby facsimileonsuch Written Commitment or written apperenrent or delegation; FURTHERRESOLVED,thatthetbregotngResolutionshellnotbedeemedtobeanexclusivestatementof thepowersandauthorityof officers,employeesandotherpersonsto.ict forandonbehalfof the-- Company,andsuchResolutionshallnorlimit or otherwiseafreettheexerciseof anysuchpowerorauthontyotherwisevalidlygrantedor vested Does hereby nominate,constitute and appoint Christine Marotta, Debra Ifohlman,•all of the City of CHICAGO, Illinois, each individually if there be morethan one named, its true and lawful attomey-in-fact, to make, execute,seal anddeliver on its behalf, and as its act and deed any and all bonds,undertakings,recognizances, contractsandotherwritingsin thenature•thereofin penaltiesnotexceedingTwentyFivemilliondollars& zerocents($25,000,000,00)andtheexecutionof such writingsinpursuanceof thesepresentsshallbeasbindinguponsaidCompany,asfully andamplyasif theyhadbeendulyexecutedandacknowledgedbytheregularly electedofficersof theCompanyatits principaloffice,
IN WITNESS WHEREOF, the said StephenM. Haney,Vice•President,hashereuntosubscribedhis nameandaffixed the Corporate sealof the said WESTCHESTER• I FIRE INSURANCE COMPANYthis 23 dayof December2013.

WESTCHESTER FIRE. INSURANCE COMPANY
pay?
M.} may. Viet President

COMMONWEALTH OF PENNSYLVANIA
COUNTY OF PHILADELPHIA ss.

Onthis23dayof December,AD 2013beforeme,aNotary.Publicof the:Commonwealthof Pennsylvaniain andfor theCountyof Philadelphia StephenM. Haney,Vice-Presidentof theWESTCHESTERFIRE INSURANCECOMPANYto mepersonallyknownto betheindividualandofficerwhoexecuted I theprecedinginstrument,andheacknowledgedthatheexecutedthesame,andthatthesealaffixedtotheprecedinginstrumentisthecorporatesealof saidCompany thatthesaidcorporatesealandhissignature.weredulyaffixedby theauthorityanddirectionof thesaidcorporation;,andthatResolution,adoptedbytheBoardof Directors of said Company, referred to in the precedinginstrument, is now in force.

IN TESTIMONYWHEREOF,I'havehereuntosetmy handandaffixedmyofficial'sealattheCity of Philadelphiathedayandyearfirstabovewritten. ay rw". wr4w
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w I I, the undersigned Assistant Secretary of the WESTCHESTER FIRE INSURANCE COMPANY, do here certify that t n P ATTORNEY, of• which the foregoing is. a substantiall ytrueand correct co 9' F
o g g Y copy, is.in full force.and effect.

Sc.

In witness whereof I have hereunto subscribed my name as Assistant Secretary, and affixed the corporate seal of the Corporation, this day of t
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I THIS POWER OF ATTORNEY MAY NOT BE USED TO EXECUTE ANY BOND WITH AN: INCEPTIONINCEPTION DATE AFTER December 23, 2015. 8 z {
2LL
THE BACK OF THIS DOCUMENT LISTS VARIOUS SECURITY FEATURES • THAT WILL PROTECT AGAINST COPY COUNTERFEIT AND ALTERATION. • 434

MEMORANDUM

CITY OF CHINO

PUBLIC WORKS DEPARTMENT
COUNCIL MEETING DATE: NOVEMBER 4, 2014
TO: MATTHEW C. BALLANTYNE, CITY MANAGER
FROM: JOSE ALIRE, ASSISTANT CITY MANAGER/ PUBLIC WORKS SUBJECT: FINAL TRACT MAP NO. 18778 ( K. HOVNANIAN' S SONATA AT THE

PRESERVE, LLC)

RECOMMENDATION
Approve Final Tract Map No. 18778, and authorize the City Manager to execute the necessary documents on behalf of the City.

FISCAL IMPACT
There is no direct fiscal impact to the City.

City Clerk: C.. Approved [ A Denied [ ] Continued [ ] Tabled [ ] AYES: DY [] TH [ j GD [ dr EE [ J EU [I
NOES: DY [ ] TH [ ] GD [ ] EE [ ] EU [ ]
ABSENT: DY [ ] TH [ ] GD [ ] EE [ ] EU [ ]
ABSTAIN: DY [ ] TH [ ] GD [ ] EE [ ] EU [ ]
Revenue: Expenditure:

Transfer In: Transfer Out:
435
COUNCIL MEETING DATE: NOVEMBER 4, 2014
SUBJECT: FINAL TRACT MAP NO. 18778
K. HOVNANIAN' S SONATA AT THE PRESERVE, LLC)
PAGE 2

BACKGROUND
Tract Map No. 18778, as presented by K. Hovnanian' s Sonata at the Preserve ( subdivider), consists of 65 residential lots and 5 lettered lots ( for common area landscaping purposes) on approximately 6. 01 acres. The tract is located generally north of Pine Avenue, east of Rincon Meadows Avenue, west of Mill Creek Avenue, and south Bickmore Avenue ( Exhibit A) located within the Preserve Specific Plan area. Tract Map No. 18778 was tentatively and conditionally approved by the City of Chino Planning Commission on March 10, 2010.

ISSUES/ ANALYSIS
The requirements made at the time of tentative map approval have been satisfied by K.

Hovnanian' s Sonata at the Preserve by execution of the Subdivision Improvement Agreement and by posting the necessary securities to guarantee the construction of public improvements.

The City Attorney has reviewed and approved the Subdivision Improvement Agreement and respective securities.

JA/ MPH/ Im
Attachment: Exhibit A
436

EXHIBIT A
TRACT N O. 18778
IN THE

CITY OF CHINO
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2151 Convention Center Way
Suite 100 B NORTH
Ontario, California 91764- 4464
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437

WESTCHESTER FIRE INSURANCE COMPANY

GENERAL PURPOSE RIDER
To be attachedto and form part of Bond Number K08619918effective October 9, 2014 issuedby Westchester Fire Insurance Company in the amount of One Million Six Hundred One Thousand Seven Hundred and 00/ 100 Dollars ($ 1, 601, 700. 00), on behalf of K. Hovnanian' s Sonata at the Preserve as Principal, and in favor of City of Chino as Obligee:

NOW Therefore, it is agreed that the bond amount has been decreased:

FAITHFUL PERFORMANCE BOND
From: One Million Six Hundred One Thousand Seven Hundred and 00/ 100 Dollars 1, 601, 700. 00)
To: Five Hundred Two Thousand Eight Hundred and 00/ 100 Dollars($ 502, 800. 00)

LABOR AND MATERIAL BOND
From: Eight Hundred Thousand Eight Hundred Fifty and 00/ 100 Dollars($ 800, 850. 00) To: Two Hundred Fifty One Thousand Four Hundred and 00/ 100 Dollars 251, 400. 00)
It is further understood and agreed that all other terms and conditions of this bond shall remain unchanged and in full force and effect.

This rider is to be effective the 6th day of September, 2018 .

Signed, sealedand datedthis 10th day of September, 2018 .

K. Hovnanian' s o a at the Preserve
Principal
By:

CYrt S ivmtb Cvn- cizAt4r
Westchester Fire Insurance Company
Surety
Richard Valente, Attorney- in- Fact
438

ACKNOWLEDGMENT OF SURETY

STATE OF ILLINOIS

COUNTY OF COOK
On SEP 10. 2018 , beforeme, a Notary Public in and for the above county, personally appeared Richard Valente to me personally known, who, being by me duly sworn, did state that he is Attorney-in-Factof Westchester Fire Insurance Company, a corporationorganizedandexistingunder the laws of the State of Pennsylvania that the seal affixed to the foregoing instrument is the corporate seal of the said corporation, that the instrument was signed, sealed, and executed in behalf of said corporation by authority of its Board of Directors, and further acknowledged the said instrument and the execution thereofto bethevoluntaryactanddeedof saidcorporationby him voluntarily executed.

IN WITNESS WHEREOF, I havehereuntosubscribedby nameandaffixed my official sealthe day and year first above written.

JOANNE J KUSHNER Notary blic
NotaryPublic,StateoflMinois
10 COOK County, ILLINOIS
full forceand effect. This rider
is to be effectivethe 6th day
of September, 2018 .Signed, sealedand datedthis 10thdayof September, 2018 . K. Hovnanian's o a at thePreserve Principal
By: CYrt S ivmtb Cvn-cizAt4rWestchesterFire
Insurance
Company
Surety Richard Valente, Attorney-in-
Fact
439
ower of WESTCHESTER FIRE INSURANCE COMPANY
Attorney
Knowall menby these presents:ThatWESTCHESTERFIREINSURANCECOMPANY,a corporationof the Commonwealthof Pennsylvaniapursuantto the following Resolution,adopted by the Board of Directors of the said Company onDecember 11, 2006, to wit:

RESOLVEt3 thatthe following authorizationsrelate to the execution,for and on behalf of theCompany,of bonds. Undertakingsrecognizances,contractsand other written commitmentsof the Company enteredinto the ordinary course of business(each a" Written Commitment"):
1) Eachof the Chairman,the Presidentand the Vice Presidentsof the Companyis hereby authorizedto executeany WrittenCommitmentfor andon behalfof theCompany, under theseal of the Company or otherwise.
2) Each drayappointed attorney-in-fact of the Companyis hereby authorizedto executeany Written Commitmentfor and onbehalf of the Company, underthe seal of the Companyor otherwise,to the extentthat such actionis authorizedby the grant of powersprovidedfor in suchpersons writtenappointmentas suchattorney-in-fact 3 EachoftheChairman,thePresidentandtheVicePresidentsoftheCompanyisherebyauthorized,forandonbehalfoftheCompany,toa intinwriti anypersontheattorney-in-factoftheY Pod ng y Company,withfullpowerandauthoritytoexecute,forandonbehalfoftheCompany,underthesealoftheCompany,or otherwise,suchWrittenCommitmentsoftheCompanyasmaybespecifiedin suchwritten appointment,which specificationmay be by generaltype or class of Written Commitmentsor by specificationof oneor mare particularWritten Commitments. 4) Each of the Chairman,the President andVice Presidentsof the Companyis hereby authorized,for and on behalfof the Company,to delegatein writing any other officer of the Company the authority to execute,for and on behalf of the Company,under the Company's seal or otherwise,such Written Commitmentsof the Companyas are specifiedin such writtendelegation,which specificationmay beby general typeor classof Written Commitmentsor by specificationof oneor moreparticularWritten Commitments, ThesignatureofanyofficerorotherpersonexecutinganyWrittenCommitmentofappointmentordelegationpursuanttothisResolution,andthesealoftheCompany.maybeaffixedbyfacsimileon such Wratten Commitment or written appointment or delegation.

FURTHERRESOLVED,that the foregoing Resolutionshall notbe deemedto be an exclusive statementof the powersand authority of officers, employeesand other personsto act for and on behalf of the Company,and suchResolutionshall not limit or otherwiseaffect the exerciseof any such poweror authorityotherwisevalidly grantedor vested.

Doesherebynominate,constituteandappointChristineMarotta,DebraKohlman,RichardValente,ThomasPlussalldftheCityofCHICAGO,Illinois,eachindividuallyiftherebemorethanonenamed,itstrueant attorney-m-fact,tomaks,execute,sealanddeliveronitsbehalf,andasitsactanddeedanyandallbonds,undertatsragsrecognizences,contractsandotherwritingsinthenaturethereofinpenaltiesnot f!
1" 4,
5xeedingTWENTYFIVEMILLIONDOLLARS8ZEROCENTS($25,000,000.00)andtheexecutionofsuchwritingsinpursuanceofthesepresentsshallbeasbindinguponsaidCompany,asfullyandamplyas if hey had been duty executed and acknowledgedby the regularly electedofficers of the Companyat its principaloffice, INWITNESSWHEREOF,thesaidStephenM.Haney,Vice-President,hashereuntosubscribedhisnameandaffixedtheCorporatesealofthesaidWESTCHESTERFIREINSURANCECOMPANYthis9dayof May2017
3I

WESTCHESTER FIRE INSURANCE COMPANY

4.31,111,
A YNA
StephenM. Haney, Vice President

COMMONWEALTH OF PENNSYLVANIA
COUNTY OF PHILADELPHIA ss.

Onthis9dayofMay,2017beforeme,aNotaryPublicoftheCommonwealthofPennsylvaniainandfortheCountyofPMUadelphiacattleStephenM.Haney,Vice-PresidentoftheWESTCHESTERFIRE INSURANCECOMPANYtomepersonallyknowntobemeindividualantlofficerwhoexecutedtheprecedinginstrument,andheacknowledgedthatheexecutedthesame,endthatthesealaffixedtothe precedinginstrumentathecorporatesealofSaidCompany;tfatthesaid"corporatesealandhissignatureweredulyaffixedbytheauthorityanddirectionofthesaidcorporation,andthatResolution,adoptedby the Boardof Directorsof said Company,referredto in the precedinginstrument,is now in force.

IN TESTIMONYWHEREOF,I havehereunto set my handand affixed my official seal at the Cityof Philadelphiathe day and year first above written. 4:OMMONWrAL..Th of P* NNlfl VANIA
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I, the undersignedAssistant Secretaryof the WESTCHESTERFIRE INSURANCECOMPANY,do hereby certifythat the original POWEROF ATTORNEY,of which the foregoing is a substantiallytrue and correct copy, is in full force and effect. SED '(
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In witness whereof, I have hereunto subscribed my name as Assistant' Secretary, and affixed the corporate seal of the Corporation, this day of 20__ wf Dawn M. Morns, A,.aststar t ecrefers.
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01225.0026 2065554.2 B- 1 -

EXHIBIT B
San Bernardino Superior Court Ruling dated September 16, 2025

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01225.0026 2065554.2 C- 1 -

EXHIBIT C

Land Development Punchlist

a) In consideration of the Developer’s addressing of the deficiencies outlined in the Punchlist following this page, the City shall have full responsibility to maintain, correct, remediate or otherwise manage and own all improvements associated with the subdivision improvements associated with the parcels, and shall defend, indemnify and hold Developer harmless from any and all Claims arising therefrom.

b) As a part of this Agreement, City agrees to release Developer’s faithful performance bond and labor and materials bonds as outlined in Exhibit D without right of modification at a later date upon approval of the Developer’s improvements , including completion by Developer to the City’s reasonable satisfaction of the attached Punchlist items; provided that nothing herein shall authorize the release of the required warranty bond, which shall remain in place for the statutory one (1) year period from the date of acceptance of the improvements by the City.

[Punchlist follows this page]

451
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

LAND DEVELOPMENT PUNCHLIST

DATE: 11/7/25

TO: PROJECT: TR 18778
DEVELOPER: K. Hovnanian Homes
400 Exchange, Suite 200
Irvine, CA 92602
PROJECT LOCATION: South side of Botany between Rincon Meadows and Mill Creek (Freshwater Ln, Partridge Ln, Retreat Ct, Crane Ct, Solitude Ave, Botany St, and Meridian St.)

FROM: PROJECT ENGINEER/INSPECTOR: Pakozdi/Cruz

SUBJECT: PROJECT WALKTHROUGH NOTES AS OF: 4/29/25

THIS LIST OF DEFICIENCIES MUST BE ADRRESSED PRIOR TO ACCEPTANCE OF PUBLIC IMPROVEMENTS.

A. ITEMS NOT YET IN CONFORMANCE WITH PERMIT, PLANS, STANDARDS AND/OR SPECIFICATIONS:

1. Set all survey monuments.

2. Submit centerline ties per City Standard Drawing No. 900 for review and approval.

3. Submit red-lined “Record Drawings” (“As-Builts) for review and approval.

4. Submit AutoCAD format of plans (once “As-Built” plans have been verified and completed).

5. Submit List of Public Improvements constructed (Form attached).

6. Submit final compaction report records for the construction of public improvements.

7. Submit sewer system CCTV videos and reports.

8. Install 1-inch air vacuum assembly at Crane Ct per the approved plans and City of Chino Standard Drawing No. 435B.

9. Construct signing and striping as per the approved plan SP-622.

10. Implement the improvement recommendations outlined in the September 2025 Pavement Investigation Report prepared by LaBelle Marvin, except that the road slurry application shall consist of crack sealing followed by the placement of either Type II REAS or Type II RPMS.

11. Remove and replace cobblestones at intersections per City of Chino Standard No. 275.

B. REPAIRS AND CLEAN-UP REQUIRED:

1. Remove all USA markouts associated with pending work identified on this Punchlist.

2. Install water meter coupling and A34 adaptor and stamp a 3 -inch “W” in the curb face at service location (park meter).

3. Adjust to grade all sewer and storm drain manholes.
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November 7, 2025

4. Clean water valve cans and adjust to grade all water valves covers.

5. Stencil a 3-inch-high black numbers on each pole, 5 feet above cap surface facing the street per the approved plans and City of Chino Standards.

6. Paint all fire hydrants and blow off per City of Chino Standard Drawing No. 445A.

7. Final inspection of storm drain manholes and catch basins and sewer manholes

8. Final inspection of streetlights pull boxes

9. Final inspection of the streetlights pedestal

10. Final inspection of air and vacuum valve assembly

11. Paint all water valve covers with (2) coats of vista No. 999 metal primer and (2) coats of blue Dupont traffic paint no. 7001 or approved equal per City Standard No. 450 (note #1).

12. Paint red curb as marked on the field.

13. Safety Step to confirm if truncat ed dome wear a t the f ollowing locations is due to age or poor installation. Replace if due to workmanship:
• Freshwater and Meridian (NEC-SEC-SWC)
• Botany and Crane (SWC)
• Botany and Retreat (SWC)

14. Replace broken/cracked sidewalk panels at the following locations if damage was the result of construction activities:
• 16148 Freshwater
• 16197 Retreat (Botany Side)
• 16224 Crane
• 7786 Botany
• 7735 Botany

15. Backfill and restore landscape/irrigation:
• Freshwater and Meridian (SWC)
• Botany and Crane (NWC-SWC-SEC)
• 16209 Crane
• Botany and Retreat (SEC)
• Botany south side east of Retreat
• Meridian and Partridge (SWC)

16. Attach tracing wire to the fire hydrants bottom flange.

cg Attachments
cc: Project Manager
Public Works Inspector
Assistant City Engineer

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01225.0026 2065554.2 D- 1 -

EXHIBIT D

Sample Form of Bond Release and Exoneration Letter

DATE

Steve Scherbarth
K. HOVNANIAN’S SONATA AT THE PRESERVE, LLC
1260 Corona Pointe Court, Suite 301
Corona, CA 92879

Subject: Final Acceptance of Subdivision Improvements
Tract No. 18778
Bond No. 106530200

To Whom It May Concern:

All of the public improvements constructed in accordance with Conditions of Approval for Tract No. 18778, were deemed complete and accepted by the City Council of the City of Chino as of DATE.

The disposition of the improvement security is authorized as follows:

1. Faithful Performance Bond No. 106530200 in the amount of $842,000 to K. Hovnanian’s Sonata at the Preserve, LLC, by Travelers Casualty and Surety Company of America, as surety, for PL15- 0100 Site Approval to guarantee the construction of the improvements per PL15-0100 Site Approval is hereby released and any interest of the City of Chino therein is terminated.

2. Labor and Material Bond No. 106530200 in the amount of $421,100 to K. Hovnanian’s Sonata at the Preserve, LLC by Travelers Casualty and Surety Company of America, as surety, for PL15- 0100 Site Approval to guarantee payment to material suppliers and others employed in the construction of the improvements per PL15-0100 is hereby released and any interest of the City of Chino therein is terminated.

3. Warranty Bond No. 106530200M in the amount of $ 84,200 issued to K. Hovnanian’s Sonata at the Preserve, LLC by Travelers Casualty and Surety Company of America, as surety, for PL15- 0100 Site Approval is now in full force and effect. This bond is to warranty the improvements to be free of any defects, damage, or deterioration due to defective materials or substandard workmanship. This warranty bond shall remain on file with the City for a minimum of one (1) year from the acceptance date.

The City will assume maintenance responsibility for the following improvements as of the acceptance date:
• Curbs and gutters
• Sidewalks
• Street Pavement
• Domestic Water Lateral(s)
• Sewer Lateral(s)
• Storm Drain Catch Basins
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01225.0026 2065554.2 D- 2 -

• Streetlights
• Traffic Signing and Striping

If you have any questions regarding this matter, please contact me at 909-334-3417.

Sincerely,

_____________
City Engineer, P.E.

cc: Travelers Casualty and Surety Company of America
One Tower Square, Hartford, CT 06183
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MEMORANDUM

CITY OF CHINO

ADMINISTRATION DEPARTMENT

CITY COUNCIL MEETING DATE: MARCH 24, 2026

TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: MAYOR PRO TEM CURTIS BURTON

SUBJECT
..titl e
Community Support Fund – Mayor Pro Tem Burton.
..end

RECOMMENDATION
..recommendation
Approve community support fund contribution to Chino Valley YMCA ($250).

..body

FISCAL IMPACT
Sufficient funds have been included in the Fiscal Year 2025-26 Operating Budget.

CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
 Positive City Image
 Superior Customer Service
 Exemplary Leadership
 Public Service Excellence through Internal and External Partnerships

Revenue:

Expenditure: 1002000 43300 N2034
Transfer In: Transfer Out:
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CITY COUNCIL MEETING DATE: MARCH 24, 2026
TITLE: COMMUNITY SUPPORT FUND - MAYOR PRO TEM BURTON.

PAGE: 2

BACKGROUND
The City of Chino is fortunate to have multiple non -profits and community groups dedicated to serving the public and preserving Chino’s unique history. To assist in their ongoing efforts, the City Council from time to time, authorizes expenditures from the City’s community support fund.

These expenditures serve a valid public purpose by helping to continue the outstanding services that these organizations provide to our community.

ISSUES/ANALYSIS
To continue this tradition, Mayor Pro Tem Burton recommends that the City Council approve the following contribution:
 Chino Valley YMCA - $250: The Chino Valley YMCA offers a series of inclusive sports and educational programs to better the physical and social life for families and surrounding communities.

By approving th is contribution, the Chino Valley YMCA will be better equipped to provide services to our community. Therefore, as proposed by Mayor Pro Tem Curtis Burton , it is recommended that the City Council approve the community support contribution to Chino Valley YMCA.

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